Managing people effectively is an essential part of running a successful business. As an organisation grows, however, HR responsibilities can become more time-consuming and complex. Employment contracts need to be maintained, workplace policies reviewed, employee issues handled consistently and managers supported when difficult situations arise.

For small and growing UK businesses, employing a full-time HR team may not always be practical. This is where retained HR services can provide a flexible alternative.

Retained HR services give businesses ongoing access to professional HR support for an agreed recurring fee. Depending on the arrangement, this can include HR advice, employment contracts, policies, employee relations, absence management, performance support, compliance guidance, HR administration and broader people strategy.

Apex HR LLC specialises in supporting SMEs and provides ongoing HR and people support that can be tailored to the size, structure and requirements of the organisation.

So, what are retained HR services and what do they include for UK employers? This guide explains how retained HR works, what a retainer can cover, the benefits, how it compares with in-house and ad-hoc HR support, and what employers should consider before choosing a provider.

In This Guide

• What Are Retained HR Services?
• How Do Retained HR Services Work?
• What Do Retained HR Services Include?
  • HR Advice and Consultancy
  • Employment Contracts
  • HR Policies and Employee Handbooks
  • Employee Relations Support
  • Disciplinary and Grievance Procedures
  • Absence Management
  • Performance Management
  • Recruitment and Onboarding
  • HR Administration
  • HR Compliance
  • HR Strategy and Planning
• What Are the Benefits of Retained HR Services?
  • Flexible and Scalable Support
  • Access to HR Expertise
  • More Time for Managers and Business Owners
  • Support With Employee Relations
  • Better HR Consistency
• Who Can Benefit From Retained HR Services?
• Retained HR vs In-House HR
• Retained HR vs Ad-Hoc HR Support
• What Should You Look for in a Retained HR Provider?
• FAQs About Retained HR Services
• How Apex HR LLC Supports UK Employers

What Are Retained HR Services?

Retained HR services are an ongoing form of outsourced HR support where a business works with an external HR provider for continuing access to professional HR expertise.

Instead of contacting an HR consultant only when a particular issue arises, the business establishes an ongoing relationship with the provider and pays an agreed recurring fee. As a result, managers have a consistent HR resource available when questions, employee issues or planned people projects arise.

Depending on the service agreement, an HR retainer can include:

• HR advice and consultancy
• Employment contracts
• HR policies
• Employee handbooks
• Employee relations
• Disciplinary and grievance procedures
• Absence management
• Performance management
• Recruitment and onboarding
• HR administration
• HR compliance
• HR strategy and workforce planning

The purpose is not simply to provide advice when something goes wrong. Instead, a retained HR provider can become an ongoing external HR resource that understands the business, supports managers and helps improve people processes over time.

How Do Retained HR Services Work?

A retained HR arrangement is generally built around the individual needs of the business. The level of support should reflect the workforce, internal capability and complexity of the organisation.

1. Your HR Requirements Are Assessed

The provider considers factors such as your workforce size, current HR arrangements, business objectives and the areas where you require support.

For example, a small company with straightforward HR requirements may need a different level of support from a growing organisation managing a larger workforce.

Contact Apex HR LLC

Phone: +447762272692
Email: Hello@apexhrllc.co.uk
Address: London, United Kingdom
Website: Apex HR LLC

2. A Service Package Is Agreed

The business and HR provider then agree on the services to be provided and the associated fee.

Depending on the provider, this could involve a fixed monthly retainer, an agreed number of consultancy hours or a bespoke package.

3. You Access HR Support When Required

Once the arrangement is established, managers can contact the HR provider when they need assistance.

For instance, this could be for something as straightforward as reviewing an employment contract or as complex as managing a disciplinary or grievance process.

4. Support Continues Over Time

The relationship continues beyond individual HR cases.

A retained provider may help review policies, keep documentation up to date, advise managers and identify areas where HR processes could be improved.

Over time, this ongoing relationship can be particularly useful because the provider has an opportunity to understand the organisation rather than treating every HR question as an isolated issue.

What Do Retained HR Services Include?

The exact services included depend on the provider and package. However, comprehensive retained support can cover many of the responsibilities normally associated with an internal HR function.

HR Advice and Consultancy

One of the main reasons businesses use retained HR is to have professional advice available when they need it.

HR consultants can advise managers on issues such as:

• Employee relations
• Workplace procedures
• Employment documentation
• Performance concerns
• Absence
• Employee communication
• HR processes
• Managing difficult conversations

Having access to an external HR professional can give managers greater confidence when dealing with situations they may not encounter regularly.

Employment Contracts

Retained HR support can also include creating, reviewing and updating employment contracts.

This can be particularly important when:

• Hiring new employees
• Changing employee responsibilities
• Introducing new working arrangements
• Updating existing employment terms
• Reviewing employment documentation

Employers should confirm whether contract drafting and reviews are included within their particular retainer.

HR Policies and Employee Handbooks

HR policies provide employees and managers with a framework for handling workplace issues consistently.

A retained HR provider may help businesses create, review and update policies covering areas such as:

• Disciplinary procedures
• Grievances
• Sickness absence
• Annual leave
• Flexible working
• Family leave
• Performance management
• Equality and inclusion
• Workplace conduct

An employee handbook can bring many of these policies together in one accessible document.

Employee Relations Support

Employee relations can take up significant management time when workplace issues become complicated.

Ongoing HR support may provide guidance on:

• Employee disputes
• Workplace conflict
• Difficult conversations
• Investigations
• Capability concerns
• Employee complaints
• Communication between managers and employees

The level of support can range from providing advice to actively assisting with the management of a case, depending on the package.

Disciplinary and Grievance Procedures

Disciplinary and grievance matters need to be handled carefully and consistently.

An outsourced HR provider can help managers understand the appropriate process, prepare documentation, conduct meetings and determine appropriate next steps.

The exact level of involvement should be confirmed in the service agreement.

Absence Management

Employee absence management is another common area of support.

Support can include guidance on:

• Short-term absence
• Long-term sickness
• Return-to-work processes
• Absence reviews
• Managing recurring absence
• Communication with employees

The objective is to help managers approach absence consistently while considering the individual circumstances involved.

Performance Management

Ongoing retained support can also help businesses manage employee performance.

This may include helping managers:

• Set clear expectations
• Identify performance concerns
• Conduct performance reviews
• Document issues
• Establish improvement plans
• Manage capability processes

Professional HR support can help managers address performance issues rather than allowing them to continue unresolved.

Recruitment and Onboarding

Some retained HR packages also include recruitment and onboarding support.

This can include:

• Recruitment process guidance
• Employment documentation
• New starter paperwork
• Onboarding processes
• Probation management
• HR records

Businesses should check whether recruitment support is included within their standard retainer or available as an additional service.

HR Administration

HR administration can become increasingly demanding as a company grows.

Depending on the provider, retained HR support may include assistance with:

• Employee records
• HR documentation
• Staff handbooks
• Letters and forms
• HR processes
• Policy documentation

This can reduce the administrative burden placed on business owners and managers.

HR Compliance

HR compliance involves a range of employment responsibilities that UK employers need to manage consistently.

Retained HR support can help businesses review their HR practices and identify areas requiring attention.

This may include reviewing contracts, policies, procedures and documentation.

Because the scope varies, businesses should establish exactly what their retainer covers.

HR Strategy and Planning

Retained HR does not have to focus exclusively on day-to-day issues.

Some providers also offer strategic HR support covering areas such as:

• Workforce planning
• Organisational development
• Employee engagement
• Management development
• HR processes
• Business growth
• People strategy

This can be useful for growing businesses where people processes need to develop alongside the organisation.

What Are the Benefits of Retained HR Services?

A retained HR arrangement can provide several practical benefits for UK employers.

Flexible and Scalable Support

As the business grows, its HR requirements can change significantly.

A company may initially need help establishing contracts and policies. Later, it may require support with recruitment, performance management, employee relations or workforce planning.

Therefore, retained HR can provide a flexible external resource that adapts as those requirements change.

Access to HR Expertise

Businesses can also access professional HR knowledge without necessarily employing a full-time HR specialist.

Retained HR provides an external source of expertise that managers can turn to when they encounter unfamiliar or complex HR situations.

More Time for Managers and Business Owners

HR responsibilities can consume significant management time.

Handling contracts, employee queries, absence, workplace disputes and HR documentation can take managers away from their primary responsibilities.

As a result, external HR support can reduce some of this burden and allow managers to focus more heavily on running and developing the business.

Support With Employee Relations

Employee relations issues can be difficult to manage without professional guidance.

Having an established HR provider can give managers somewhere to turn when dealing with grievances, disciplinary matters, performance concerns or workplace conflict.

Better HR Consistency

Consistent HR processes can help businesses establish clearer expectations for managers and employees.

An external HR provider can help review and standardise policies, documentation and procedures across the organisation.

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Who Can Benefit From Retained HR Services?

Retained HR can be suitable for different types of UK employers, including small businesses, growing SMEs and organisations with existing HR teams.

Small Businesses

Small businesses may not have enough HR activity to justify employing a full-time HR professional.

Instead, a retained service can provide access to external expertise while allowing the business to pay for the level of support it actually needs.

Growing SMEs

As businesses grow, HR requirements often become more complicated.

A retained HR provider can support the organisation as employee numbers increase and new people-management challenges arise.

Businesses With an Existing HR Team

Retained HR does not necessarily replace internal HR.

An external provider can supplement an existing HR team by providing specialist advice, additional capacity or support during particularly demanding periods.

Businesses Going Through Change

Businesses undergoing growth, restructuring or organisational change may require additional HR expertise.

An external HR provider can support managers during periods when their normal HR resources are under greater pressure.

Retained HR vs In-House HR

Retained HR and in-house HR provide different approaches to managing people responsibilities. Therefore, employers should compare cost, internal capacity, continuity and the level of specialist expertise required.

With an in-house HR team, employees are directly employed by the business and work within the organisation.

With retained HR, the business accesses external HR professionals through an ongoing service agreement.

Retained HR can provide smaller organisations with access to specialist expertise without the costs associated with employing a full-time HR department.

However, an internal HR team may be more appropriate for organisations with a large workforce or substantial day-to-day HR requirements.

Some businesses use both approaches, keeping internal HR resources while using an external provider for specialist or additional support.

Retained HR vs Ad-Hoc HR Support

The main difference between retained and ad-hoc HR support is the nature of the relationship. In practice, one provides continuing access while the other is generally used when a specific need arises.

With ad-hoc support, a business contacts an HR consultant when it has a particular requirement and pays for the work provided.

By contrast, retained HR involves an ongoing relationship and recurring fee.

Retained HR May Suit Businesses That:

• Need regular HR advice
• Want predictable HR costs
• Deal with employee issues throughout the year
• Want an ongoing relationship with an HR professional
• Need continuing support with HR compliance
• Are growing and expect their HR requirements to increase

Ad-Hoc HR May Suit Businesses That:

• Have very few HR issues
• Need help with an isolated project
• Require occasional specialist advice
• Already have substantial internal HR expertise

Ultimately, the appropriate model depends on the frequency and complexity of your HR requirements.

What Should You Look for in a Retained HR Provider?

Not all HR retainers are structured in the same way. For this reason, employers should compare both what is included and how the support is delivered.

Before choosing a provider, consider the following.

Service Scope

Find out exactly what the retainer includes.

Do not assume that every service mentioned on a provider’s website is automatically included in the monthly fee.

Consultant Access

Ask whether you will have a named HR consultant or access to a wider advisory team.

If continuity is important to your business, understand how the provider handles ongoing employee cases.

Employee Relations Support

Find out how much practical support is available for disciplinary, grievance, absence and performance matters.

Employment Law Expertise

Establish what employment law support is included and whether specialist legal assistance is available where required.

Response Times

Ask how quickly the provider normally responds to HR enquiries and how urgent matters are handled.

Contract Terms

Review the minimum contract period, notice requirements, renewal terms and any additional charges.

Scalability

Consider whether the service can adapt if your workforce grows or your HR requirements change.

Need Ongoing HR Support for Your Business?

If your organisation needs consistent access to HR expertise, explore Apex HR LLC’s Retained HR Services to see how ongoing support can be structured around your business.

If you need broader external HR capability, review Outsourced HR Services as an alternative or complementary option.

Not sure which model is right for your organisation? Contact Apex HR LLC to discuss your workforce, current HR capacity and people priorities.

Phone: +44 7762 272692
Email: Hello@apexhrllc.co.uk
Location: London, United Kingdom

FAQs About Retained HR Services

1. What are retained HR services?

Retained HR services are ongoing outsourced HR arrangements where a business pays an agreed recurring fee for continuing access to HR advice and support.

2. What is included in retained HR services?

Depending on the provider, the retained package can include HR advice, employment contracts, policies, employee handbooks, employee relations, disciplinary and grievance support, absence management, performance management, recruitment, HR administration and compliance support.

3. Is retained HR suitable for small businesses?

Yes. A retained HR arrangement can provide small businesses with access to professional HR expertise without requiring them to employ a full-time HR department.

4. What is the difference between retained HR and outsourced HR?

Retained HR is one form of outsourced HR. In general, it involves an ongoing service agreement and recurring fee, whereas outsourced HR can also refer to individual or project-based services.

5. Does retained HR include employment law advice?

Some retained HR packages include employment law advice, while others may provide it separately. Therefore, employers should check the specific terms of their agreement.

6. Can retained HR providers help with disciplinary procedures?

Many providers can advise and support employers through disciplinary procedures. However, the level of involvement varies, so this should be confirmed before entering into a contract.

7. Can retained HR help with employee grievances?

Yes. Depending on the service, a retained HR provider may advise managers on investigations, grievance meetings, documentation and appropriate next steps.

8. Is retained HR the same as having an HR manager?

No. A retained HR provider is an external service rather than an employee within the business. However, it can provide ongoing HR expertise and support similar to some of the functions performed by an internal HR team.

9. How much do retained HR services cost?

Costs vary according to employee numbers, services required, level of consultant involvement and the complexity of the organisation. Providers may charge monthly retainers, hourly bundles, per-employee fees or bespoke rates.