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Everything employers need to know about fractional HR costs in 2025. Daily rates, monthly fees, and how you save 35-55% vs full-time.
UK fractional HR professionals cost £700-£1,300 per day or £67,000-£135,000 annually for 2 days/week, depending on seniority (People Partner to CHRO). This is 35-55% cheaper than a full-time HR Director/CHRO at £150,000-£250,000+ per year including salary, NI, pension, benefits, and equity.
Let's compare the TRUE all-in cost of fractional vs full-time, including hidden expenses. According to HMRC guidance, employer costs extend well beyond salary:
| Role Level | Day Rate | 1 Day/Week | 2 Days/Week | 3 Days/Week |
|---|---|---|---|---|
People Partner 8-12 years exp | £600-£850 | £31k-£44k/year | £62k-£88k/year | £94k-£133k/year |
HR Director 12-18 years exp | £900-£1,100 | £47k-£57k/year | £94k-£114k/year | £140k-£172k/year |
CHRO 18+ years exp | £1,100-£1,300 | £57k-£68k/year | £114k-£135k/year | £172k-£203k/year |
Most common: HR Director (12-18 years exp) at 2 days/week = £94k-£114k annually. This saves £68k-£88k vs full-time HR Director (£162k-£202k total cost).
Cost: £50,000 (12-month engagement, 1 day/week)
Situation: Company facing potential unfair dismissal claim. Fractional HR Director implemented proper performance management process, documented everything correctly, and managed exit professionally.
Outcome: Avoided tribunal claim that would have cost £25,000+ in legal fees plus potential £50,000+ award.
ROI: 1.5-2x (£75,000+ saved for £50k investment)
Cost: £80,000 (12-month engagement, 2 days/week)
Actions: Implemented engagement surveys, created career frameworks, improved management practices, fixed compensation issues.
Outcome: Reduced turnover from 25% to 15%. For 80 employees at £40k average salary, saving 8 departures × £30k replacement cost = £240,000.
ROI: 3x (£240k saved for £80k investment)
Cost: £35,000 (6-month engagement, 1.5 days/week)
Actions: Built HR infrastructure, created people metrics dashboard, developed retention strategy, professionalised HR for investor due diligence.
Outcome: Company successfully raised £5M Series A. Investors specifically cited professional HR function and retention metrics as factors in decision.
ROI: Enabled funding round—invaluable
Based on 2.5 days/week x 2 clients x 48 working weeks. CMO UK average day rate: £950.
BetaThis calculator provides rough estimates for illustration only. Actual rates and salaries vary based on location, experience, industry, and market conditions. Consult with a qualified accountant for accurate financial planning.
Find experienced fractional HR professionals at £700-£1,300/day. Save 35-55% vs full-time while getting senior expertise.