The short answer
Outsourced HR can cost from a few hundred pounds per month for core retained support, with the price increasing according to headcount, complexity and the level of hands-on help required. Indie People’s published retained packages currently start at £199 per month. Compare scope, response times, named-consultant access and exclusions—not price alone.
What employers need to know
- Retained support gives predictable monthly cost and ongoing context.
- Pay-as-you-go support can suit occasional, well-defined questions but is less predictable during a difficult case.
- Employee numbers, multisite working, regulated sectors and active employee-relations cases affect cost.
- Check whether contracts, policies, meetings, investigations, training and insurance are included or charged separately.
A practical process
Define the support you need
List routine advice, document work, strategic support and any live employee cases.
Compare like with like
Ask each provider for the exact scope, response times, fair-use terms, exclusions and contract length.
Price the unmanaged risk
Include management time, inconsistent decisions and external legal fees in the comparison.
Choose for the next 12 months
Select enough support for expected hiring, change and employee relations—not only today’s headcount.
Example
A 20-person business with regular manager questions may obtain better value from a retained relationship than buying isolated hours whenever a problem escalates.
When to take advice
Prices and scopes vary. Confirm the current written proposal and service terms before committing.
Frequently asked questions
Is outsourced HR cheaper than employing an HR manager?
It often is for a small business that does not need a full-time internal role, but the correct comparison depends on required capacity and scope.
Should I choose the cheapest HR provider?
Not automatically. Compare access to qualified people, practical case support, response times, document work and exclusions.
Official and primary sources
General information for employers in Great Britain, not legal advice. Check current official guidance and obtain advice for your circumstances.