The cost of outsourced HR varies depending on the size of your business, the level of support you need, and the provider you choose. However, it is almost always significantly cheaper than employing an in-house HR professional.
Typical Pricing Models
- Per employee per month (PEPM) — the most common model. Prices typically range from £5-£20 per employee per month for basic advisory services, and £20-£50+ for comprehensive managed HR
- Fixed monthly retainer — a set monthly fee based on the agreed scope of services. Common for businesses wanting predictable costs
- Pay-as-you-go — hourly or project-based rates for one-off HR needs. Typically £100-£200 per hour for qualified consultants
Cost Comparison
For perspective, consider the alternative costs:
- An in-house HR manager typically costs £35,000-£50,000+ per year in salary alone, plus employer NI, pension, holiday, training, and office space
- A single employment tribunal claim costs an average of £8,500 in management time — before any award or legal fees
- Outsourced HR for a 20-person business might cost £200-£400 per month — a fraction of these alternatives
What Affects the Price?
- Number of employees
- Scope of services (advice-only vs fully managed)
- Industry and complexity (higher-risk sectors may cost more)
- Whether employment law and tribunal insurance is included
- Additional services (payroll, health and safety, recruitment)
We offer transparent, fixed-fee pricing with no hidden costs. Get a free, no-obligation quote tailored to your business.