Hello Everybody,
I need help to understand how much fees an HR consultant should charge to set up an HR department in a small company. I need assistance in establishing a fee for the complete project.
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I need help to understand how much fees an HR consultant should charge to set up an HR department in a small company. I need assistance in establishing a fee for the complete project.
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It would depend on the market standing of the consultant and the amount of work involved. Have you provided any software support for the HR functions? If yes, then the amount will be sizeable. A consultant can charge up to Rs. 1000/- per man-hour involved.
From India, Mumbai
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1656From India, Mumbai
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What KK!HR communicated is correct. The fees of HR consultants depend on:
1. Whether it's a partial solution (if some setup is required) or a complete solution (from start to finish).
2. The number of man-hours or months needed for the work.
I'm here to offer a different perspective, just providing a broad overview of the basic solution you are seeking.
From India, Hyderabad
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1. Whether it's a partial solution (if some setup is required) or a complete solution (from start to finish).
2. The number of man-hours or months needed for the work.
I'm here to offer a different perspective, just providing a broad overview of the basic solution you are seeking.
From India, Hyderabad
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@KK!HR and @GK7
Thanks for your guidance. Though I have experience in setting up an HR department, I am new to consulting, and my knowledge is a bit rusty. It means I need to spend more time understanding the current trends. Therefore, charging by the hour may not be appropriate. That's why I am considering charging for the entire project. Currently, I consult for one day a week and charge 25k per month for my family business. Based on that, I estimate that setting up HR systems for a new client (a friend) could take up to 2 months, so I have calculated the cost to be 50k.
Your thoughts, please.
Happy Sunday :)
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Thanks for your guidance. Though I have experience in setting up an HR department, I am new to consulting, and my knowledge is a bit rusty. It means I need to spend more time understanding the current trends. Therefore, charging by the hour may not be appropriate. That's why I am considering charging for the entire project. Currently, I consult for one day a week and charge 25k per month for my family business. Based on that, I estimate that setting up HR systems for a new client (a friend) could take up to 2 months, so I have calculated the cost to be 50k.
Your thoughts, please.
Happy Sunday :)
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That figure is OK and hopes it is affordable to the customer.
From India, Mumbai
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From India, Mumbai
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I am a startup founder with a good network of other startups.
It depends on:
1. What is the exact offering?
2. How much cash does the startup have to offer?
3. How reputable/experienced is the HR company/freelancer?
4. Is the HR company open to cash + equity?
My practical advice for new small HR startups assisting other startups is to be flexible. Show them your good service first and then assess how the startup is performing. If the growth is promising, I would consider going for a cash + equity arrangement.
From India, Morvi
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It depends on:
1. What is the exact offering?
2. How much cash does the startup have to offer?
3. How reputable/experienced is the HR company/freelancer?
4. Is the HR company open to cash + equity?
My practical advice for new small HR startups assisting other startups is to be flexible. Show them your good service first and then assess how the startup is performing. If the growth is promising, I would consider going for a cash + equity arrangement.
From India, Morvi
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Thank you, Raxit, for your valuable advice. I have incorporated all that you have mentioned into my proposal to the client. What I have included are:
1. Scope of work
a. Basic policies: Attendance, Leave, Compensation, Training, Exit, Recognition
b. SOP's - exhaustive. Record every process
c. Formats of letters and forms
d. Performance management system
e. Prepare JD's to optimize costs
f. Prepare HR manual - Organization chart, Vision, Mission, Core Values, etc.
Client is not open to equity.
Based on the scope of work, I feel 50k is justified.
Thank you all and have a lovely weekend.
Madhavi
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1. Scope of work
a. Basic policies: Attendance, Leave, Compensation, Training, Exit, Recognition
b. SOP's - exhaustive. Record every process
c. Formats of letters and forms
d. Performance management system
e. Prepare JD's to optimize costs
f. Prepare HR manual - Organization chart, Vision, Mission, Core Values, etc.
Client is not open to equity.
Based on the scope of work, I feel 50k is justified.
Thank you all and have a lovely weekend.
Madhavi
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Dear Madam,
Your scope of work is pretty comprehensive for a startup/small setup. In my view, you have undervalued it. You should quote about Rs 1 lakh with flexibility to close at 85K.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Your scope of work is pretty comprehensive for a startup/small setup. In my view, you have undervalued it. You should quote about Rs 1 lakh with flexibility to close at 85K.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Thank you, Vinayak, for your valuable opinion. My ex-Director of HR at Godrej shares the same opinion. However, since it's my friend who offered me this opportunity and suggested that I could work as a consultant, I decided to quote 50k. Once she is satisfied with my work, she will help spread the word.
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