What is Fractional HR and Why Your Business Needs It

For many small and mid-sized businesses, Human Resources often feels like a giant, intimidating hurdle – complex compliance laws, ever-changing employee expectations, and the daunting cost of a full-time HR department. Yet, overlooking this critical area can lead to significant challenges, from legal pitfalls to employee turnover.

In a recent episode of the Moxie Creative podcast, “What is Fractional HR & Why Your Business Needs It,” we sat down with Amy Sipp, founder of ASIP Consulting. Amy specializes in fractional HR, a strategic solution helping businesses build stronger teams, cultivate better workplaces, and ensure compliance without the burden of a full-time hire. Having had the pleasure of refreshing Amy’s website last year, we at Moxie Creative experienced firsthand her passion for helping businesses thrive by focusing on their most valuable asset: their people.

This isn’t just a discussion about HR; it’s a deep dive into smart business scaling, strategic problem-solving, and leveraging expert resources to achieve sustainable growth. For small business owners, solopreneurs, and aspiring entrepreneurs in St. Cloud, Minnesota, and beyond, Amy’s insights offer a clear path to professionalizing your HR function, no matter your size.

Amy's Journey: From Insurance to HR Expert

Amy’s professional path is a testament to continuous learning and recognizing market needs. Starting in the insurance space, she later returned to St. Cloud State University in 2010, earning a Bachelor’s degree in Business Management with an emphasis in Human Resources. Her initial foray into HR was in the fast-paced world of staffing, which she humorously likens to “drinking out of a fire hose.” This high-intensity environment honed her skills and passion for the field.

About eight years ago, Amy identified a crucial gap: many businesses needed HR expertise but couldn’t justify a full-time hire. This observation directly led to the concept of “fractional HR.” She also bolstered her expertise by earning the demanding SHRM Certified Professional (SHRM-CP) Certification, an intense exam that only two out of eight in her prep class passed. This dedication ensures she brings top-tier knowledge to her clients.

The "Aha!" Moment: Recognizing the Fractional Need

Amy’s pivotal realization came during her time at Regional Diagnostic Radiology, where she served in a dual role as HR and Med Spa Manager. While HR came “really natural,” she witnessed firsthand the challenges faced by business owners or even accountants who often had to juggle HR responsibilities without specialized knowledge. “Trying to stay up on maybe the accounting practices and human resources at the same time can be very challenging,” she explains.

This often leads to a reactive approach to HR, where issues are only addressed once they become significant problems. Amy’s experience showed her that businesses, regardless of industry, needed proactive, expert guidance in HR, even if not on a full-time basis.

The Leap of Faith: Launching ASIP Consulting

In 2022, with her children through college and a wealth of experience under her belt, Amy took the leap to launch ASIP Consulting. This wasn’t her first entrepreneurial venture; she had previously owned an independent commercial insurance agency. However, this time, she consciously built her business with strong referral partners in mind, recognizing their invaluable role in growth. She credits individuals like Sherry Landwehr, her accountant and longtime friend (and a frequent, highly praised presence on the Moxie podcast!), as being “huge” for her business development.

As Kelly shared from her own entrepreneurial beginnings in 2009, starting a business often means discovering needs you didn’t even know you had. “I need this, I need this, I need this,” Kelly recalls thinking, identifying early on the importance of building a network of trusted professionals to fill knowledge gaps.

What is Fractional HR? Your Strategic Support System

Fractional HR is a flexible solution designed to provide expert human resources support to businesses that don’t need or can’t afford a full-time HR professional. Amy clarifies that “fractional” can take many forms:

  • Interim Work: Temporarily filling a part-time HR role (e.g., 20 hours a week for a specific period).
  • Project-Based Support: Handling specific HR projects (e.g., developing an earned sick and safe time policy, managing an unemployment insurance claim).
  • On-Call Expertise: Providing ad-hoc advice and guidance for day-to-day HR situations.
  • Executive Placement: A newer service for ASIP Consulting, where Amy leverages her HR and networking expertise to help businesses find the right executive talent and assist individuals in finding new career opportunities.

Amy works with businesses of various sizes, often those with under 50 employees who might believe they’re exempt from certain federal laws. However, with evolving legislation like Minnesota’s earned sick and safe time law and upcoming paid family and medical leave law, even businesses with one or more employees are now subject to critical compliance requirements.

Common HR Challenges and Proactive Solutions

Amy frequently encounters businesses that are unaware of their HR needs. Her HR audit and assessment often reveal crucial gaps they didn’t know existed. Nothing really “shocks” her anymore, a testament to the wide range of HR situations she’s seen.

Beyond basic recruiting, Amy’s comprehensive HR services include:

  • Compliance: Ensuring adherence to federal, state, and local labor laws to avoid fines and lawsuits.
  • Benefits Management: Assisting with open enrollment, selecting appropriate benefits packages, and educating employees on how to utilize them.
  • Employee Engagement & Retention: Developing strategies to improve workplace culture, work-life balance, and overall employee satisfaction to reduce turnover.
  • Policy Development: Creating essential documents like employee handbooks, which, as Amy stresses, provide crucial structure and allow businesses to enforce rules consistently and fairly, protecting them legally.

Amy emphasizes that much of HR is proactive – designed to avoid problems before they escalate. While HR and marketing budgets are often the first to be cut, these strategic investments prevent much larger, more costly issues down the road. “Everything goes hand in hand,” Taylor notes, highlighting that strong sales, marketing, and HR are all interdependent for a well-rounded business.

Growth and Guidance: Expanding Services and Staying Sharp

ASIP Consulting’s growth is a direct result of Amy’s commitment to continuous learning and strategic expansion. Her executive placement service, for instance, naturally complements her recruiting background. She embraces the philosophy that “if you don’t stretch, you don’t grow,” constantly seeking new challenges.

Crucially, Amy understands the importance of ongoing mentorship, even as an expert. She actively works with a mentor to refine her executive placement process, particularly in overcoming “call reluctance” by leveraging her existing network. This approach exemplifies that even the most seasoned professionals benefit from guidance and outside perspectives.

Amy’s favorite part of HR is the “open enrollment” process and educating both business owners and employees about benefits. “If you don’t know what you have, you can’t take advantage of it,” she says, underscoring the value of empowering people to utilize their compensation fully.

The Moxie Creative Partnership: A Professional Online Presence

Moxie Creative had the privilege of partnering with Amy to refresh her website last year. Having met through a referral group, Moxie quickly recognized Amy’s passion and the need for a professional online presence that matched her growing business. Amy’s daughter had initially helped her get a website off the ground, but as ASIP Consulting expanded its services and brought on contract workers, a more polished and professional image was required.

Amy attests that the new website “is much more professional” and aligns with the image she wants to portray. Moxie ensured consistency with her bold ASIP orange branding, a distinctive color choice that stands out. This collaboration highlights how strategic marketing partners can elevate a brand, ensuring its online presence effectively communicates its value and professionalism.

Key Takeaways for Small Business Owners

Amy’s wisdom offers essential guidance for any entrepreneur:

  1. Utilize Available Resources: Take advantage of free community resources like the Small Business Development Center (SBDC), the Initiative Foundation, and the GSDC (Greater St. Cloud Development Corporation). These organizations offer invaluable support and access to entrepreneurial hubs.
  2. Outsource What You Don’t Know: “Outsource what you don’t know, because the time you’re gonna take doing the research… you could be spending to generate maybe three or four more hours worth of billable hours on your business.” This applies to HR, accounting, legal, and yes, even marketing. Focus on your core expertise and let specialists handle the rest.
  3. Remember Your “Why”: Entrepreneurship has its ups and downs. Consistently reminding yourself why you started your business—your purpose and passion—is crucial for perseverance during challenging times. Amy found clarity in serving businesses and realizing her own “untraditional employee” nature.
  4. Embrace Continuous Learning and Mentorship: Never assume you know everything. Seek mentors, participate in learning opportunities, and be willing to stretch beyond your comfort zone. This mindset fuels personal and business growth.
  5. Proactive HR is Essential: Don’t wait for a problem to arise. Invest in HR expertise before you need it. Staying compliant and fostering a positive work environment are critical for long-term success, especially with evolving labor laws.

Amy attests that the new website “is much more professional” and aligns with the image she wants to portray. Moxie ensured consistency with her bold ASIP orange branding, a distinctive color choice that stands out. This collaboration highlights how strategic marketing partners can elevate a brand, ensuring its online presence effectively communicates its value and professionalism.

Tune In and Get Inspired

Is your business handling HR “off the side of its desk”? Are you unsure about navigating complex compliance laws or fostering a better workplace culture?

This is your sign: Fractional HR could be the strategic support you didn’t know you needed.

At Moxie Creative, we understand that a well-rounded business needs robust support in all areas. Just as we help businesses refine their brand and marketing, we champion partners like ASIP Consulting who ensure your HR is strong, compliant, and supportive of your growth. Let’s work together to build a business that not only looks good but operates effectively from every angle.

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