Let's just put all of our cards on the table: Here is a real life example of cold-hard facts for an in-house HR department vs. HR consultant.
We can start by saying this figure is based on a company with an average of 75 employees at any given time. With that being said, the national trend of average monthly hours for a company this size consist of 40 hours per month of HR manpower.
Meet John. John is an HR Director for Company XYZ. His current salary is $95,000 per year. Let's see what the total cost for John's employer is to keep him as an employee.
$95,000 John's Base Salary
$15,000 John's Insurance (company paid portion)
$ 4,500 John's 401k (company contribution)
$ 8,000 Payroll Taxes (company paid portion)
$122,500 John's Salary / Year (not including in-direct costs)
Meet Sally. Sally is an HR Consultant and is self-employed. Her current hourly rate is $85.00 per hour. Let's see what the total cost for utilizing Sally's services would cost for Company XYZ.
Sally charges a monthly retainer of $3,500. This retainer includes 40 hours of her time per month devoted to Company XYZ. (Average hours per month for a company size of 75 employees.)
Total Cost Per Year for Sally's Services: $42,000.
Which route would you prefer?