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What Do HR Companies Cost?

HR Services Buyers' Guide

It is difficult to pin down a price for outsourcing your HR services. The quote you receive from each provider will depend not only on their service options and packages but also on the size of your company and your specific needs.

That said, there are still a number of factors to consider when comparing the costs of competing services.

Price Plans and Payment

Most HR consultancies will normally agree a fixed price per annum, and outline what that package covers at the start of your term with them. It is usual for companies to operate on an annual contract basis, but some may offer quarterly or monthly payment schemes. Of course it is of utmost importance to understand exactly what is covered in each package and what is expected of you in terms of payment structure.

Cost-Effectiveness

One of the major factors in deciding you wish to outsource your HR is the promise that it will be cost-reducing. Employing a dedicated in-house HR expert will cost you between 25k-30k per year (obviously variable depending on location and industry etc), so as long as the annual payments with a dedicated HR company are less than that, you have saved yourself money.

What Price Peace of Mind?

What you also get beyond that is the alleviation of any worries that will come from keeping it in-house. You have an expert team on hand to be there when you need them. Weigh that up when considering which package to pick. You are paying for their services so make sure that they give you a well-rounded, and supportive package.

Necessity

A Human Resources department is both necessary and widely accessible. You simply have to have sufficient support in this area of your business, and outsourcing this requirement is becoming more commonplace. The security that comes with having your HR looked after by experts, twinned with financial benefits, means that it is a very attractive solution to HR needs.

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