When they see the day rates from consultants, many business owners are instantly put off. Often, they will reject the idea without really looking behind the numbers.

When it comes to cost, some businesses lose sight of the wood for the trees. They think external consultants cost a fortune, so they choose to just muddle through.

However, by looking at the options side by side in a fair comparison, you can see that a permanent team member isn’t always the most cost-effective option.

Cost of a freelance HR Director Cost of an employee
No recruitment fees Recruitment cost
Instantly available – highly experienced, and can ‘hit the ground running’ Time required to serve notice for previous employer, induction and settling in required
Paid the agreed rate for services Salary irrespective of services
Included in agreed rate – no hidden extras National Insurance
Included in agreed rate – no hidden extras Pension
Included in agreed rate – no hidden extras Other benefits – healthcare, company cars etc
Included in agreed rate – no hidden extras Bonus
Included in agreed rate – no hidden extras Holidays
Included in agreed rate – no hidden extras Office space and equipment
Pay only for time worked [1] 6.6 days lost per year due to sickness
Only pay for services delivered [2] 759 hours per year wasted due to workplace distractions
Included in agreed rate [3] 6.8 training days per year
No contractual obligations Exit costs apply – i.e. notice period
Access to a larger network of specialists to provide added value Limited access to a larger network to provide value
Costs are flexed to your budget and scalable to meet your needs Long term commitment on the cost base


1 – Source CIPD – 2018 Health and Wellbeing at Work Study
2 – Daily Telegraph – 24th September 2018
3 – UK Commission for Employment & Skills – Employer Skills Survey 2015 amended May 2018

Hidden benefits of hiring an HR consultant

  • Upskilling in-house teams
  • Boosts in-house team morale
  • Holiday and sickness cover
  • Increase credibility with stakeholders
  • Fresh approach to problems
  • Knowledge and usage of latest trends and best practice
  • External validation
  • Not wrapped up in emotions or office politics
  • Commercial approach
  • Proactive
  • Challenges business owners and management team to see the bigger picture
  • Takes hassle away from key individuals allowing them to focus on the bottom line
  • Access to skills that may not be available in house
  • Flexibility – it is useful to be able to quickly increase or decrease your head count based on demand
  • Reduced legal liability – contractors are their own employers and have to provide their own insurance so time-consuming and costly tribunals.
  • Offer a fresh pair of eyes – an objective view on how to improve your business
  • Free up your time – expert HR Directors will manage your people issues, leaving you to manage your business
  • Highly experienced and one step removed

Our highly experienced HR Directors provide a cost-effective service that allows you and your team to focus your efforts elsewhere. The service is totally scalable to fit your needs and bespoke to your business. There are no lengthy contracts and you only pay when you use the service. So, is it really more cost effective to employ your own HR or even do it yourself?

In this video Managing Director Karina Riddiford talks further about the benefits of a flexible relationship with the Yoo Group.

Don’t be afraid to use HR Consultants, the difference in cost is negligible in the round, and value added to your business can be transformative.

 Book a free discovery call today!