What is the Cost of HR support?

“By putting the employee first, the customer effectively comes first by default, and in the end, the shareholder comes first by default as well.” – Richard Branson


When considering whether to outsource a service, cost is a prime consideration.

If you are covering that service requirement yourself, the tipping point often comes when the time it takes out of your day / week / month ‘costs’ your business more than it would to outsource.  But as you are running your own business it may be as simple as outsourcing the areas you aren’t good at or don’t enjoy.

If you are considering outsourcing your HR there are several factors to take into account and all will play a part in determining how much it will cost.

Questions you’ll need to consider

It will make decision making process simpler (and comparisons easier) if you have answered these questions ….

  • How many staff do you employ?
  • Are you expecting to recruit more people or are you looking to cut down on the number of employees?
  • Are they all performing to an acceptable standard?
  • Do you have any in-house HR expertise?  For instance, you may want specialist support for interventions if you have internal admin resource
  • Do you have staff issues with time keeping and absenteeism?
  • Will you require on-site support?

What are the likely costs?

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The upshot is that monthly retainers can cost anything from around £50 a month to hundreds or even thousands of pounds.   If you are a very small organisation and just want a helpline to call when you need some HR advice, you will pay the lowest price.  However, if you want employment contracts, a handbook and more in-depth advice, you are likely to pay more.  This is particularly the case if you are looking for a personalised, bespoke service rather than off the shelf documents and advice provided by a call centre.

Some businesses want a fully outsourced HR department, including an HR management system and on-site support.  This type of service is likely to be at the higher end of the cost scale – again, depending on the size of the company and the frequency with which the service is used.  A smaller company may find that most of the support can be provided remotely; however, some prefer the comfort of knowing that someone will be on site on a particular day each week, in which case they may pay between £1000 and £2500.

Something else that can have an impact on pricing is the length of contract you sign up to.  Sometimes it is possible to reduce costs by signing up to a longer agreement of, say, 3 – 5 years and some HR support companies will insist on this.  Others, particularly independent or smaller companies, may offer 12-month contracts or no tie-in at all so that you can pay as you go.

All these variables can make it difficult to compare prices so it important to have a clear understanding of what you need and to make sure your prospective suppliers are fully briefed on your requirements.

When thinking about the cost of HR support, remember to seek out experts who you can relate to and who understand your business – they will become an essential partner to your business needs and you should seek stability in the relationship!

Blunt thinking advice on the cost of HR support from Yorkshire Powerhouse
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