Fractional Hiring

Hiring Fractional Developers at HiddenLevers

After three years as a fractional developer himself, Praveen Ghanta shares what he learned about hiring, managing, and retaining part-time engineering talent — including the hires that worked and the ones that didn't.

Praveen Ghanta Praveen Ghanta, CEO, Hire Fraction · September 6, 2022 ·5 min read
Fractional HiringEngineering TeamsStartup Growth
Hiring Fractional Developers at HiddenLevers
What you’ll learn
  • Integrations, QA engineering, DevOps, and front-end component work are the highest-fit roles for fractional developers.
  • Senior self-managers — developers who lead by day and want to keep coding skills sharp — make the best fractional hires.
  • Developers with full-time in-office jobs almost never work as fractional contributors due to schedule overlap failures.
  • Core product IP can work fractionally, but requires tighter product management alignment and higher weekly hour commitments.
  • Fractional hiring enabled a lean, profitable org structure that was instrumental in HiddenLevers’ acquisition by Orion.

As I discussed in a recent post, I spent three years as a fractional developer myself in the late 2000s. I must have been restless in those days, because in addition to my day job and my contract position, I began to think seriously about a startup idea aligning my tech and finance skillsets. By late 2009 I had committed to starting HiddenLevers, and by late 2010 I had quit my day job and gone all-in. The company started to experience real growth in 2011 — and that growth forced a hiring question I hadn’t fully anticipated.

Why did HiddenLevers choose fractional developers over full-time hires?

Up to 2011, HiddenLevers had a one-person dev team (me) and a one-person sales team (my cofounder Raj). We needed more capacity. After working with interns that summer, we realized we’d need to invest further. Two questions shaped the decision:

  • How could we get senior development talent without funding?
  • How could we attract senior talent without substantially diluting our equity stakes?

Those questions, combined with my personal experience on the other side of the fractional relationship, led to a natural answer: hire a fractional senior developer. We had an immediate need for a senior integration developer, as HiddenLevers was just beginning to integrate with software partners in the wealth management industry — firms like TD Ameritrade, Fidelity, Orion, Tamarac, and others.

Definition

Fractional developer: a senior software engineer who works part-time — typically 10 to 30 hours per week — for one or more companies simultaneously, rather than on a single full-time engagement. Unlike contractors, fractional developers are embedded team members with ongoing accountability, not project-based vendors.

In my time as a fractional developer, I had met others with a similar mindset. I was able to hire one of them as HiddenLevers’ first fractional developer — and that initial hire was a huge success. Over a period of nine years, that single developer completed and maintained more than 25 different integrations.

What types of work are best suited to the fractional model?

We continued to build our development team fractional-first. We hired our future CTO as a fractional developer initially. We also built out the team with full-time junior and mid-level hires, since junior developers needed more mentoring — but once invested in, they formed the core of the team.

By late 2020, HiddenLevers had a complete software development team: a full-time CTO, six full-time developers, and five part-time fractional developers. We leaned into the fractional model beyond engineering, using it to help staff product management and marketing as well. Our use of fractional resources was instrumental in staying efficient and profitable — which helped drive our successful exit in early 2021.

Role TypeFractional FitNotes
Systems integrationsExcellentDiscrete deliverables, minimal daily sync required
QA engineeringExcellentAsync-friendly; automation work compounds over time
DevOps / database managementStrongHighly specialized; rarely needs full FTE
Front-end component workStrongLarge volumes of isolated UI work suit the model
Core product IPWorkable with caveatsRequires 30+ hrs/week and tight PM relationship

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What does a complete fractional hiring history actually look like?

Here is the full list of part-time software development hires we made at HiddenLevers, with honest notes on what happened with each one:

  • Senior Integration Developer: Stayed with HiddenLevers for nine years, switching full-time positions twice during that time. He worked 20–30 hours per week throughout. Responsible for 25+ integrations and remained a contributor post-acquisition.
  • CTO: Initially hired as a half-time senior full-stack developer. He was returning to the working world from being a stay-at-home dad, and the fractional-to-full-time path worked well as a flexible transition.
  • Senior Front-End Developer #1: Joined at 20 hours per week and continued contributing through the acquisition and beyond — still contributing to the product post-acquisition by Orion.
  • Senior Front-End Developer #2: Contributed major front-end components over about 18 months, but eventually bit off more than he could chew and wrapped up his time as a fractional developer.
  • Senior Full-Stack Developer: Had a full-time in-office job. Despite his motivation, we couldn’t get our schedules to sync and I was tired of meetings at 9 PM. We ended the engagement. A scheduling mismatch, not a skills problem.
  • QA Engineer: Available for a 0.6 FTE schedule. After smoothing out some communication kinks early on, she modernized our automated testing framework and integrated it with Slack and other endpoints. She continued to contribute post-acquisition as well.

What lessons did fractional hiring at HiddenLevers actually teach?

Nine years of fractional hiring produced a clear picture of what works and what reliably fails. Here is the honest version:

What worked:

  • Gaining access to senior talent that was otherwise out of budget or unavailable in the market
  • Adding discrete skillsets to a team, particularly where a full FTE was not needed
  • Systems integrations, QA engineering, DevOps, database management, and front-end component work
  • Developer-initiated turnover: zero over a nine-year period

What didn’t work — and why:

  • Unrealistic schedule expectations. If a developer has a full-time in-office role, it is highly unlikely to work. They can do the work on nights and weekends, but you will not have enough communication overlap to make the model function.
  • Missing self-management skills. Fractional developers work independently by definition. The ideal candidates are senior developers who might lead a team by day but want to keep their development skills sharp through fractional work. Technical ability without self-management is a recipe for a failing engagement.
  • Core IP without the right structure. Fractional positions can work for core business logic, but only if the developer brings vertical industry experience or is available for 30+ hours per week, and only if product management is actively aligned. Without that, the communication gaps create compounding problems.

Frequently asked questions

What types of roles are best suited for fractional developers?

Integrations between systems, QA engineering, DevOps, database management, and front-end component work are particularly well suited to the fractional model. These roles have clear deliverables and do not require constant real-time collaboration with the rest of the team. Roles that involve core business logic and require tight product management alignment are more challenging but still workable if the developer brings deep domain expertise or can commit 30 or more hours per week.

How do you find fractional developers who can self-manage effectively?

The ideal candidates are senior developers who lead teams in their day jobs but want to keep their coding skills sharp through a fractional position. Look for developers with a track record of independent delivery and experience working across multiple clients or projects simultaneously. Personal referrals from your professional network — especially from others who have worked fractionally themselves — tend to yield the highest-quality candidates.

Can a fractional developer work on core product IP, or only on peripheral features?

Fractional developers can work on core IP, but it requires more deliberate planning. They need to work closely with product management and have enough schedule overlap to communicate in near real-time. If the developer brings vertical industry expertise or can commit 30 or more hours per week, there is a clear path to success. The key is planning for a tighter relationship with product management than you would need for more peripheral work.

What is the biggest mistake to avoid when hiring a fractional developer?

Hiring someone who has a full-time in-office job and expecting them to contribute meaningfully. They may be motivated and technically capable, but the schedule overlap required for effective collaboration simply will not exist. If meetings are happening at 9 PM and communication is constantly delayed, the engagement will fail regardless of the individual’s skills. Prioritize availability and communication overlap over raw technical credentials.

How does fractional hiring affect retention compared to full-time hiring?

Retention in a well-structured fractional arrangement can be surprisingly strong. At HiddenLevers, developer-initiated turnover among fractional hires was zero over a nine-year period. Fractional work offers senior developers flexibility and variety that full-time positions often cannot match, which creates genuine loyalty. The key is treating fractional developers as real team members rather than transient contractors.

How do you scale a development team using the fractional model?

Start with senior fractional hires to cover specialized or high-leverage work, then build out the core team with full-time junior and mid-level developers who can be mentored by those seniors. Over time, some fractional hires may transition to full-time roles as the company grows — as happened with HiddenLevers’ CTO, who started as a half-time developer. The fractional model works best as a deliberate strategy, not a fallback.

Praveen Ghanta
Praveen Ghanta
CEO, Hire Fraction

Praveen Ghanta is a five-time founder and serial entrepreneur. He is the founder of DevHawk.ai, an AI-powered engineering management platform, and Fraction.work, which connects fast-growing companies with top fractional tech and growth marketing talent. Previously, he founded HiddenLevers, a risk analytics platform for wealth management that he bootstrapped from inception to acquisition by Orion Advisor Solutions in 2021, serving thousands of advisors and $600B in assets. He earlier founded SmartWorkGroups, acquired by Intralinks in 2000.

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