How Much Does HR Really Cost?

Cut costs, not corners, with Outsourced HR

When it comes to managing people, doing it right is vital – but let’s be honest, the cost of in-house HR can add up fast. Whether you're a business owner spinning many plates or a HR Director juggling a growing workload, the big question is: how much is HR actually costing your business? And could outsourcing help you do more for less?

Spoiler alert: Yes, it can. In fact, outsourcing HR can save businesses thousands each year – without compromising on quality or compliance.

The True Cost of In-House HR

Hiring an internal HR team brings value, but also a hefty price tag. Let’s break it down:

• Average HR Manager salary (UK): £36,000 – £47,000 per year
• Additional costs (NI, pension, holiday pay, benefits): Add another 30%+
• Training & development: Ongoing investment to stay up to date
• HR systems & software: Licences, upgrades, and maintenance
• Cover for sickness, annual leave, and peak periods: Additional strain or cost

Before you know it, you’re looking at well over £50,000 per year – and that’s just for one experienced hire. If your team is dealing with complex employee cases, an unexpected tribunal, or a policy overhaul, the costs and risks climb even higher.

Outsourced HR: Smarter Support for Less

Outsourced HR offers a cost-effective, flexible alternative – ideal whether you need full support, cover for a busy period, or help with a one-off issue. At Amica HR, we work with businesses every day who need expert HR support without the overheads. By outsourcing, our clients typically save 30–60% compared to hiring in-house.

Here’s how:

No additional costs – You only pay for the support you need
No gaps – We’re here year-round, with no holiday or sickness cover needed
Scalable support – As your business grows or your needs change
Expertise on tap – Get access to senior HR advisors without the salary
Legal peace of mind – Reduce the risk of costly claims and tribunals

Real Savings, Real Impact

Let’s say you’re a business with 50 employees. You’re facing occasional employee relations cases, need help staying legally compliant, and want strategic advice as you scale.

• Hiring a full-time HR Manager might cost: £50,000+ per year
• Outsourcing to Amica HR: From just £73 per hour for ad-hoc tasks, and fully outsourced HR support from £4,968 annually, depending on your requirements – compared to £50,000+ for in-house HR.

Even on a higher support plan, you’re saving tens of thousands each year – money you can reinvest into your team, your growth, or your bottom line.

Book a free 30-minute consultation and discover how much you could save by partnering with Amica HR.

Ad-Hoc, Overflow, or Ongoing Support – We’re Here to Help

Our friendly team are here when you need us most. Whether it’s a tricky employee issue, a policy review, or support during a busy period, we offer:

• Flexible retained HR packages
• Project-based and ad-hoc support
• Support with disciplinaries, grievances, redundancies, and more
• Benchmarking, mediation, and training

And because we tailor our approach to you, you’ll always get practical advice and real results – not HR jargon.

Let’s Talk

We’re here to make your life easier. If you’re wondering how to reduce HR costs without losing quality or control, let’s chat.

Contact Us for friendly, no-obligation advice.