Independent HR consultants usually charge fees for their services and find pricing their services very challenging. Unfortunately, there is no universal HR consultants’ pricing guide to turn to like some industries have for their independent contractors. When setting a price, HR consultants will need to factor in how their rates compare to their local/regional practices and what their client is willing to pay based on their budget and perceived value the HR consultant will bring to them.
The most popular compensation options include:
- Charging an hourly rate/fee. Some consultants may tack on a minimum number of hours when using this option regardless of how long the assignment takes.
- Charging a daily or half-day rate/fees depending upon the nature of the assignment.
- Establishing project rates or fees to handle longer-term assignments like writing an employee handbook or performance management and appraisal process. The consultant may establish a list of deliverables or milestones for a long-term project and may bill the client once a milestone has been reached instead of waiting to be paid until the project is completed. Some consultants may add out-of-pocket expenses, such as travel outside the consultant’s home base, to his or her project rate/fees. Project rates are usually determined in advance and outlined in a written contract describing deliverables and pay arrangements, including the ability for the client or consultant to alter the terms of the contract if necessary.
- Charging a retainer, which is an upfront fee the client is willing to pay in order to reserve a specific date or contract for the client.
Express Request
The Knowledge Center has gathered resources on a current hot topic in HR management. Click here to view the current Express Request and to receive additional information on this week's Express Request topic.
