Loading...
Loading...
Get expert people leadership and employment compliance without the £150k+ full-time HR cost. Perfect for Seed through Series B startups.
Most startup founders face a dilemma: You need proper HR to hire well, stay compliant, and build culture—but you can't afford or justify a £150k+ full-time HR Director. Fractional HR solves this perfectly.
What Investors & Employees Expect:
What Most Startups Have:
Fractional HR bridges this gap—giving you professional people infrastructure without full-time cost.
The inflection point where informal HR breaks. You're spending too much time on people issues. Your first complex employee problem appears. You need proper contracts and policies.
Rapid hiring requires process. Without proper onboarding, contracts, and management frameworks, you'll create problems that cost 10x more to fix later.
Investors scrutinise people practices. Professional HR infrastructure, retention data, and compliant employment practices signal maturity and reduce DD risk.
Performance problem? Potential dismissal? Grievance? These situations need expert handling. Employment tribunals cost £8,500-£50,000+.
If people issues are consuming significant founder time, it's more efficient to bring in expert help. Your time is better spent on product, customers, and fundraising.
Typical timeline: 2-3 months to establish basics
Risk avoided: Tribunal claims averaging £8,500-£50,000
Impact: Better hires, faster ramp, lower turnover
Outcome: Intentional culture vs accidental culture
Critical: One mishandled exit can cost £25,000+ and damage employer brand
| Stage | Team Size | HR Time Needed | Monthly Cost |
|---|---|---|---|
| Pre-Seed | 5-15 people | 0.5-1 day/week | £1,500-£4,000 |
| Seed | 15-30 people | 1 day/week | £3,500-£5,000 |
| Series A | 30-60 people | 1.5-2 days/week | £5,000-£8,000 |
| Series B | 60-120 people | 2-3 days/week | £8,000-£12,000 |
| Series B+ | 120+ people | Consider full-time HR Director | £130k-£180k/year |
The PERFECT time for fractional HR is post-Seed, pre-Series A. You have 20-40 people, you're hiring regularly, and you need professional HR but can't justify £150k+ full-time.
Typical Engagement:
Situation: 25-person SaaS company. Employee performance issue escalating. Founder about to dismiss without proper process.
Fractional HR Action: Implemented proper performance improvement plan, documented everything correctly, managed exit with settlement agreement.
Cost: £12,000 (3-month engagement, 1 day/week)
Outcome: Clean exit with settlement agreement. Avoided £25,000+ tribunal claim + £15,000 legal fees + 6 months founder distraction.
ROI: 3-4x (£40k+ saved for £12k investment)
Situation: 35-person FinTech raising Series A. No proper employment contracts, no handbook, compliance gaps.
Fractional HR Action: Built complete HR infrastructure in 4 months: new contracts for all employees, comprehensive handbook, HRIS, compliance audit.
Cost: £20,000 (4-month engagement, 1.5 days/week)
Outcome: Passed investor DD with no HR issues. Successfully raised £8M Series A. Investor specifically noted "professional HR setup for company this size."
ROI: Enabled funding round—invaluable
Situation: 40-person e-commerce startup. High turnover (35%). Several recent bad hires costing £30k+ each in replacement costs.
Fractional HR Action: Redesigned hiring process, implemented structured interviews, created competency framework, trained hiring managers.
Cost: £35,000 (8-month engagement, 1 day/week)
Outcome: Turnover dropped to 18%. Quality of hires improved significantly. Saved estimated £120,000 in year-one bad hire and replacement costs.
ROI: 3.4x (£120k saved for £35k investment)
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 startup HR leaders who've scaled companies from Seed to Series C.