For many growing businesses, hiring an HR Manager feels like the "next logical step." But when you calculate the hidden costs—recruitment software, NI contributions, employment law subscriptions, and office overhead—that single hire can cost double their salary.
Below, we break down the exact math of In-House vs. Outsourced HR for a typical UK SME in 2025.
2. The Sigma Outsourcing Alternative
By outsourcing, you aren't just hiring a person; you are subscribing to a team + technology + indemnity model. You remove the overhead, the software costs, and the employment liability.
For 1-20 Employees
Based on £2,395/month Growth Package
(vs. low-end in-house cost)
For 21-50 Employees
Based on £4,145/month Professional Package
(vs. high-end in-house cost)
Cost Visualization (Year 1)
Case Study: Manchester Tech Startup (35 Staff)
Before Sigma (2023)
- HR Manager Salary: £52,000
- Software Stack: £8,000
- Agency Fees (3 hires): £45,000
- Total Spend: £105,000
After Sigma (2024)
- Professional Package: £49,740
- Software Stack: Included
- Recruitment (3 hires): £28,000
- Total Spend: £77,740
Total Year 1 Savings: £27,260
+ Achieved Employment Rights Bill Compliance in 30 days.
Calculate Your Potential Savings
Slide to select your company size and see estimated comparison.
In-House Cost
£75,000
Sigma Cost
£28,740
Estimated Annual Savings
£46,260
*Estimates based on average UK HR salary data and standard Sigma pricing tiers.
