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Hello Everybody, I need help to understand how much fees should an HR consultant charge to set Set up an HR department in a small company.
I need assistance in establishing a fee for the complete Project.

Training Manager
Management Consultancy
Nagarkar Vinayak L
Hr And Employee Relations Consultant


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 upto Rs. 1000/- per manhour involved.
From India, Mumbai

What KK!HR communicated is right. HR Consultant's fees depends on

1. A partial solution (if some set-up would be there ) or a complete solution ( from end to end).

2. How many man hours or months needed to work on.

I am here to complicate your view, but just giving a bird's eye view what the basic solution you are looking for.

From India, Hyderabad
@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. Which means I need to give more time in understanding the current trends. So, charging by the hour may not be appropriate. That is why I think I want to charge for the entire project. Where I currently consult for one day a week - I charge 25k per month (family business) Based on that, I feel setting up HR systems could take upto 2 months for a new client (a friend) so 50k is what I figured.

Your thoughts please.

Happy Sunday :)


That figure is OK and hopes it is affordable to the customer.
From India, Mumbai
I am a startup founder and good network of other startup.

It depends on
1. what is exact offering
2. Startup is having how much cash to offer
3. HR company/freelancer how much reputed/experienced
4. Does HR company open for cash + equity?

My practical advice if you are new small HR startup helping other Startup, Be flexible.
Show them your good service and then get idea of how startup is doing, If growth is good, I would have gone for cash + equity

From India, Morvi
Thank you Raxit for your valuable advice. I have incorporated all that you have mentioned, in my proposal to the client. What I have included -
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 - Organisation chart, Vision, Mission, Core Values etc.

Client not open to equity.

Based on the scope of work - I feel 50k is justified.

Thank you all and have a lovely weekend.


Nagarkar Vinayak L

Dear madam,

Your scope of work is pretty comprehensive for a start up / small set up.

In my view you have undervalued . You should quote about Rs 1 lac with flexibility to close at 85K.


Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
Thank you Vinayak for your valuable opinion. My ex-Director HR at Godrej is of the same opinion. But since it's my friend who gave me this opportunity and ideated that I could work as a consultant, I thought of quoting 50k. once she is happy with my work, she will spread the word.

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