When considering how to manage your people function, many businesses debate whether to hire an internal HR Advisor salary or outsource their HR needs. While bringing in a dedicated HR Advisor may seem like the right step as your team grows, it’s essential to weigh up the costs and long-term value.
According to Indeed, the average salary for an HR Advisor in the UK is £33,575 per year. But salary is only part of the picture. Once you factor in employer National Insurance contributions, pension costs, holiday pay, ongoing training, and potential absence cover, that figure can quickly climb annually. This can be a significant investment, especially for SMEs.
The True Cost of Hiring an In-House HR Advisor
As we mentioned above, the average HR Advisor salary according to indeed is £33,575. When looking at specific regions, the average salary in London is £38,540, Leeds £35,337, Bristol £34,443, and £32,524 in Manchester. It’s important to consider other costs that come with this.
Here are some of the additional costs to consider when hiring:
- Employer NI Contributions
- Pension Contributions
- Annual Leave & Absence Cover
- Training & Continuous Development
- Desk space, equipment, and software licences
When you break it all down, hiring a full-time HR Advisor is a significant ongoing commitment—both financially and operationally.
Why more Businesses are Opting to Outsource
Rising employer National Insurance contributions and wider economic pressures have led many businesses to reassess their spending. As a result, more companies are turning to outsourced services instead of a HR Advisor salary. This is in an attempt to maintain high-quality support while keeping costs under control. Here are the key benefits of making the switch:
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Reduced Costs
Outsourcing HR eliminates the need for full-time salaries, pensions, training, and ongoing software expenses. This can significantly reduce overheads, especially for small and medium-sized businesses. -
Access to Expertise
Employers benefit from the knowledge of experienced HR professionals who are up to date with employment legislation and best practices – without having to employ them in-house. -
Scalability
HR support can be easily scaled up or down depending on business needs. Whether you need occasional advice or ongoing support, outsourcing provides the flexibility to match your current demands. -
Time Savings
By outsourcing administrative and compliance-heavy HR tasks, business owners and managers can free up time to focus on growing their business and managing their teams. -
Improved Compliance
HR providers stay current with changes in employment law, reducing the risk of non-compliance and associated legal issues for your business.
Why Outsourcing is a More Cost-Effective than HR Advisor Salary
Hiring, training, and retaining an in-house HR team can be a significant expense—especially for small and medium-sized businesses. Salaries, pensions, HR software, ongoing professional development, and other overheads quickly add up. Outsourcing provides a leaner solution, offering access to experienced professionals for a fraction of the cost.
With outsourced HR support, you only pay for what you need, when you need it. Whether it’s a monthly retainer or ad hoc advice, this model eliminates the cost of downtime, sickness absence, and underutilised resources. There’s no need to invest in costly recruitment or worry about covering annual leave—your external provider ensures continuity and consistency of service.
Ultimately, outsourcing allows businesses to achieve the same, if not higher, level of HR expertise without the fixed cost and long-term financial commitment of an HR Advisor salary.
The HR Booth Retainer Packages
At The HR Booth, our retainer packages are designed to suit businesses of all sizes. Prices start from just £159 per month for companies with up to 10 employees, rising to £519 for those with 151 to 200 employees. You can view our full pricing structure on our website. These packages offer not only cost-efficiency but also peace of mind—ensuring you’re never paying for unused capacity or left without support when a team member is off sick.
That equates to roughly £1,908 to £6,228 per year—less than half the cost of hiring an in-house HR Advisor. You will also gain access to support from senior members of the team. We currently have two Senior HR Consultants, five HR Consultants, a HR Assistant, and a HR Administrator.
Pay-As-You-Go HR Support
If you prefer flexibility, our pay-as-you-go option allows you to access expert HR support whenever you need it, without any ongoing commitment. Our rates are:
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Hourly: £80 for in-person support, £65 for remote
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Daily: £600
Outsourcing HR in this way gives you greater control over your costs, reduces risk, and provides access to specialist knowledge—without the overheads of employing a full-time HR consultant.
The Bottom Line
Hiring a HR Advisor might seem like the logical step as your business grows, but for many SMEs, outsourcing provides a smarter, more agile solution. You get access to expert support when you need it—without the overheads and responsibilities that come with employing someone full-time.
If you’re weighing up the costs of a HR Advisor salary or considering your next step, speak to our team today to explore how outsourcing HR could work for your business.
