What does HR support cost?

As you might expect, the answer to this is not straightforward and will depend on a number of different factors such as:

  • How many staff do you employ?
  • Do you have any in-house HR expertise?
  • What type of HR support do you need?
  • Will you require on-site support?

As a result, monthly retainers can cost anything from around £50 a month to hundreds or even thousands of pounds.   For example, 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 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 £1,000 and £2,500.

Something else that can have an impact on pricing is the length of contract you sign up to.  Some companies want a 3-5 year tie in (which may include a discount on the annual rate) while others may offer 12-month contracts or no tie-in at all.  Business owners need to bear in mind that it may not be possible to exit or change the terms of a longer term agreement if their circumstances change.

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.

At Pennine HR, we ask clients to sign a 12 month service agreement and after that it’s a rolling agreement with one month’s notice on either side.  We call our support packages “Helpline”, “Essentials” and “Partner”.  The service provided ranges from primarily telephone support to having your own virtual HR Department.  For a business with 11-20 employees this would cost £95, £130 or from £260 per month respectively.

For a free HR Health Check and a no obligation proposal send us an email ([email protected]) or call 01484 841776 today.