Are you looking into the idea of fractional HR for your business? Then you’ll likely have some questions. If your first one is ‘how much will fractional HR cost?’, you’re not alone. It’s a very common and completely understandable question – and it’s also one you want to get right.
After all, it doesn’t matter whether you’re bringing in fractional HR to support growth, steer a restructure, or simply take the pressure off your day-to-day. What matters is making the right move for your business and your people. And while cost-effectiveness is a huge benefit of fractional HR – estimates show it can save up to 40 per cent compared with full-time hiring – the service needs to match up with your budgets. It also needs to plug real, strategic value.
To help you make a more informed choice, we’ve broken down how fractional HR pricing typically works, which factors influence the cost, and most importantly, what you get back. Because investing in the right HR support means better outcomes for your people – and a stronger, more resilient business.
What are the most common fractional HR pricing models?
Fractional HR pricing isn’t one-size-fits-all – it varies based on what your business needs and the scope of work you require from your partner. Unlike many service industries, hourly rates are rare in fractional HR. Instead, three models tend to dominate: day rate, project-based, and retainer.
Day rate
Day rates are the most straightforward option. A fractional HR specialist will usually charge a set fee per day, depending on their seniority and your scope of work. It’s a good choice for short-term needs or when you want flexibility without a long-term arrangement.
Project based
For larger, one-off projects with a clear end date, some fractional HR providers offer fixed-fee pricing. An example might be rewriting your company handbooks or guiding you through a restructuring. The benefit of project-based pricing is that you know exactly what you’re getting and what it will cost.
Retainer based
If your business needs ongoing HR muscle, a monthly retainer gives you the most consistency. You’ll agree on a set number of days or deliverables per month, often with the flexibility to pivot during busier periods. This option works well if your HR demands fluctuate, but you want a trusted partner plugged fully into your team.
While it depends on the scope of work, it’s how we typically partner with our clients at hoomph. As a true extension of their business, we think and talk like one unit, with the level (and therefore cost) of fractional HR support able to be dialled up and down as required. This way, you get expert support without the financial strain or complexity of hiring a full-time employee.
What influences the cost of fractional HR services?
Fractional HR isn’t only about admin support or ticking compliance boxes. Sure, it can take the day-to-day pressure off, but it’s also your secret weapon for culture change, workplace wellbeing, and long-term growth. So, when it comes to cost, it’s not solely about hours on a timesheet. It’s about the value you get from having a deeply human, strategic partner by your side.
Here’s what shapes the price:
Scope
Let’s start with what you need. Is it operational support, from contracts and onboarding to core business policies? Or are you looking for deeper strategic input, shaping your culture, supporting growth and wellbeing, and designing a workplace where people thrive? The wider and more creative the scope, the more time, expertise, and pragmatic problem-solving required. So, the cost adjusts to reflect that value.
Seniority
Fractional HR professionals come with different levels of experience. If you need someone to roll up their sleeves and embed themselves in high-level strategy – workforce planning, leadership coaching, culture audits – you’ll likely be looking at a more senior expert. Yes, the day rate might be higher, but the ability to deliver meaningful, lasting impact (fast) often makes it a smarter long-term investment.
Urgency
Like in any industry, last-minute or crisis support typically costs more. But when a fractional HR expert is deeply embedded in your business already, you can get ahead of issues before they escalate. That’s why planning and building the right partnership early can be both cost-effective and better for your people.
Industry
Some sectors come with added layers, from complex compliance and specialist policies to working models that need tailored HR thinking. The more niche your world, the more value there is in bringing in someone who truly understands it – and that may influence price. However, with this deep-rooted understanding, you can also prevent costly and headache-inducing mistakes in the long run.
Company size and structure
What your business looks like matters, too. While a lean startup might need a flexible sounding board and scalable basics, a growing scaleup might need cultural initiatives, policy design, and leadership support across multiple levels. The size, pace, and structure of your business all naturally feed into what’s needed and what it costs. But that’s the beauty of fractional HR. It’s not only about providing solid administrative foundations. It’s about delivering creative, strategic input that helps shape happier, healthier teams and sets your business up to thrive – at a portion of the cost of a full-time, in-house hire.
What’s included in the fractional HR cost?
Fractional HR isn’t a simple case of plugging the gaps. Yes, it can take administrative and operational pressure off your plate, but the real value lies in what it adds: strategic direction, creative thinking, and people-first solutions that fuel growth. You’re bringing in a seasoned specialist who’s not just reactive, but proactive – someone who knows exactly what it takes to deliver genuine impact for your people and your business.
While deliverables always depend on your specific needs, here’s what’s often included:
Strategic HR expertise when and where you need it, without the full-time overhead or long-term commitments
A true partner who slots into your team, aligns with your values, and stays above internal politics
Compliance confidence, with deep knowledge of employment law and best practice
Systems and structures that don’t just solve problems now, but set your business up to scale smoothly
Creative input on culture and wellbeing, from audits to action plans that drive gamechanging engagement
Pragmatic problem solving, with solutions expertly tailored to your unique business challenges
Add extra oomph with our fractional HR
Every business is different, and that’s exactly why this HR model works. Fractional HR flexes around your goals, your stage of growth, and the kind of impact you want to make in your market. Whether you need someone in the background keeping things running or a strategic partner to drive change from the inside, this is about creating value that fits. And, because our approach is rooted in pragmatic problem solving, advice isn’t your only benefit – you’ll also get clear, workable actions proven to move your business forward.