The Rise of Fractional Work: Why Top Talent is Moving Away from Big Companies in Australia

Work in Australia is shifting, and it's not just about how or where we work — it's about who we work for. The traditional notion that the best talent lines up to join big corporations is rapidly being dismantled. Instead, top-tier companies are increasingly turning to fractional workers for specific expertise and short-term needs — all in response to the demand for niche skills in a market that’s evolving rapidly and consistently.

This is the future of work in Australia and it benefits both sides. Seasoned professionals opt out of the corporate grind for more autonomy and control, and big companies tap into specialised, flexible talent to help them stay competitive.

The Great Talent Migration: Corporate Australia Is No Longer the Gold Standard

Recent reports suggest a fundamental shift in how Australians view work. Approximately 4 million Australians engage in some form of self-employment or freelancing - that’s one third of the workforce. While the freelance market in Australia has always been robust, it's now expanding rapidly, with highly skilled professionals in fields like tech, marketing, and executive leadership opting for fractional or contract work instead of corporate roles. Why? The benefits are clear.

1. Flexibility and Autonomy: After a year of remote work during the pandemic, Australians have embraced flexibility. In fact, 75% of Australian workers now say they would prefer flexible work arrangements post-pandemic, according to PwC Australia research¹. Professionals with high-demand skills no longer want to be tied down to a fixed schedule or commute when they can offer their expertise remotely or on a more flexible basis.
2. Disillusionment with Corporate Bureaucracy: Large Australian companies are still bogged down by layers of management, endless meetings, and corporate red tape. Highly skilled professionals in industries like software development and digital marketing are leaving these structures in favour of more dynamic, leaner workplaces — or choosing to work independently. They have a bent for action and want to get the job done.
3. The Remote Work Revolution: Remote work has had a profound impact on the Australian workforce. The Australian Bureau of Statistics found that by 2021, nearly 40% of Australians were working from home at least one day a week. This flexibility has made it easier for professionals to partner with global companies while maintaining control over their schedules.
4. Changing Career Paths: Australians are increasingly rejecting the traditional career ladder in favour of portfolio careers. LinkedIn data revealed that 42% of Australians have changed their career direction in the past five years, opting for a more varied ‘portfolio’ approach to their work. This entails things like freelancing or consulting for multiple organisations simultaneously.

The Corporate Dilemma: The Need for Expertise, Without the Full-Time Commitment

On the other side of the equation, large Australian companies are grappling with the rising demand for specific expertise. According to Deloitte Australia, 73% of Australian CEOs report they are facing a skills shortage, with a particularly acute need for talent in areas like IT, data science, and advanced manufacturing².

This is where fractional work becomes essential.

Australian companies, especially in sectors like technology, finance, and healthcare, need highly specialised talent but are increasingly reluctant to hire full-time employees. A 2023 report by Upwork Australia revealed that over 50% of Australian businesses are planning to hire more freelancers in the next year, and this trend is especially pronounced in industries that demand niche expertise or short-term, project-based work³.

Why the shift?

1. Hyper-Specialisation: As industries evolve at breakneck speed, companies need expertise in very specific areas. This is true for digital marketing strategies, artificial intelligence, cybersecurity, data and more. Fractional work allows businesses to engage these high-level professionals without committing to a full-time position.
2. Agility and Cost Efficiency: In a climate of economic uncertainty, agility is key. By leveraging fractional workers, companies can access expert knowledge for targeted projects without the overhead costs of full-time employees. This is particularly attractive to smaller or mid-sized firms that don’t have the resources to hire a large in-house team for specialised functions.

The New “Gig Economy” for High-End Talent

When we think of the gig economy, it's easy to picture people working part-time jobs or moonlighting in low-skill roles. However, in Australia, the “new” gig economy is rapidly being defined by high-skilled professionals who are increasingly choosing flexibility and autonomy over corporate security.

The reason we started Maestro was to meet the new desires of talents, while meeting the new needs of corporates. We allow companies to tap into top-tier talent on a project-by-project basis. Similarly, the rise of executive-as-a-service platforms — where companies can engage fractional C-suite talent for specific needs — is gaining traction. Australian companies like Atlassian and Canva have pioneered such practices, hiring fractional experts to drive innovation without the commitment of full-time hires.

A survey from Deloitte Australia found that 63% of large Australian companies are now considering or already utilising fractional executives in roles like Chief Technology Officer (CTO) or Chief Marketing Officer (CMO). This trend is set to grow as companies adapt to the increasingly complex business environment and the rapid pace of digital transformation.

The Future of Work in Australia: A Hybrid Approach

So, what does all this mean for the future of work in Australia?

The lines between full-time and fractional roles will continue to blur. Large corporations will still need core teams of employees, but increasingly, they will also rely on highly skilled fractional talent for specific, time-bound needs. This model offers businesses the flexibility to scale expertise quickly, respond to market changes, and access rare skills without the long-term commitment.

For professionals, the gig economy of today is not about scrambling for work, but about having the freedom to choose projects that align with their skills and values.  This shift is particularly empowering for skilled workers in creative industries, technology, and finance — the types of expertise that are in high demand.

The future of work in Australia will see a blend of permanent employees, freelancers, and fractional experts, all working together in a more fluid, flexible system. In this landscape, companies will need to learn how to manage a hybrid workforce effectively, tapping into a pool of talent that’s no longer confined to traditional corporate roles.

The Big Takeaway: Talent Wants to be Free

We are at the precipice of a fundamental shift in the nature of work in Australia. Talent is no longer tethered to big corporations, and these corporations are increasingly reliant on fractional experts to meet their specific, evolving needs. In a world where agility, specialisation, and flexibility are paramount, the future of work in Australia looks bright — for both businesses and professionals who are ready to embrace change.

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Footnotes:

1. https://www.pwc.com.au/workforce/people-and-organisation-matters/return-to-work-ir-reform.html
2. https://www2.deloitte.com/us/en/insights/topics/talent/organizational-skill-based-hiring.html
3. https://investors.upwork.com/news-releases/news-release-details/upwork-unveils-2025s-most-demand-skills