As we kick off our October series, we’re diving into one of the biggest questions around HR consultancy: money. Over the next few weeks, we’ll be looking at all things financial, covering earnings potential, moving from salary to self-employed income, what financial independence could really look like, and how face2faceHR helps you build income with support and stability.
But let’s start with the most immediate question many senior HR professionals have when considering consultancy: what could you actually earn as an independent HR consultant?
It’s natural to want clarity here. Moving from a predictable monthly salary into consultancy means taking on more variability, and that can feel daunting. So, in this article, we’ll take an honest look at independent HR consultant earnings, exploring what’s realistic, what influences income, and how to plan for stability.
What shapes independent HR consultant earnings
The short answer is, it depends. There isn’t one figure that applies to every consultant. Your income will be shaped by:
- Your experience and credibility. Senior HR professionals with a track record in complex employee relations, strategic projects, or specific industries may command higher fees.
- The type of work you do. Ongoing retained HR support for SMEs typically provides steadier, more predictable income. Ad hoc projects, such as redundancies, restructures, or investigations, can bring in larger pieces of work but less consistency.
- Your location and market. Clients in London or large cities may expect to pay more than those in smaller towns or rural areas.
- How much you want to work. Some consultants want to replicate or exceed their previous salary. Others prefer to design their consultancy around a better work-life balance, accepting slightly less income in return for more time freedom.
What earnings could look like
So, what might independent HR consultant earnings actually mean in practice? Our experience shows that income grows year on year as you build your client base and reputation. In your first year, turnover of up to £85,000 is achievable. By year two, many consultants see around a 50% increase on that, with a further 25% increase in subsequent years. Once established, a six-figure turnover is perfectly realistic, with our highest-earning consultant reaching £250,000 annually.
Of course, how much effort you put in will always shape your results. These figures demonstrate the potential. Looking at what consultants have already achieved helps you set expectations and see what’s possible.
Don’t forget expenses
Unlike being employed, you’ll need to factor in the costs of running your own business. These might include:
- Professional indemnity insurance
- Marketing such as a website, networking memberships, and advertising
- Technology including HR software subscriptions, Zoom, and Microsoft 365
- Travel and home office expenses
- Accountancy fees
Many independent HR consultants find expenses land somewhere between £5,000 and £10,000 per year, depending on how lean you keep things.
Planning for financial stability
The reality is that independent HR consultant earnings are rarely a neat, predictable monthly figure. One month you may land a big project, the next may be quieter. A few practical steps can help smooth things out.
Build a mix of income streams
A blend of retainers and ad hoc projects gives you the best of both worlds, with stability and the chance to boost income when opportunities arise.
Plan for peaks and troughs
Keep a buffer in your business account so you can comfortably manage quieter months without stress. Many consultants aim for three to six months of expenses saved as a cushion.
Think about your capacity
It’s tempting to say yes to everything, but burnout is real. Work out how many clients you can manage while still providing excellent service and maintaining balance.
Price with confidence
Undervaluing yourself is common, especially early on. Research what others in your area charge and don’t be afraid to align with market rates. You bring years of expertise that businesses truly need.
Setting realistic expectations
A common misconception is that you’ll instantly replace or exceed your corporate salary. The truth is it usually takes time to build a client base. In year one, you might earn less while you’re getting established. By year two or three, many consultants find they are matching or overtaking their previous salary, with the added benefit of flexibility and independence.
Another consideration is your own version of success. Some consultants aim for six-figure businesses. Others prioritise school runs, travel, or reduced stress. The great thing about consultancy is that you set the parameters.
Practical tips to maximise your income
- Leverage your network. Many first clients come from ex-colleagues, contacts, or people you’ve worked with in the past. Don’t be shy about letting them know you’re consulting.
- Choose your niche. Being known for something, whether that’s employee relations, tech start-ups, or SMEs, makes it easier for clients to choose you.
- Offer different levels of retainer service. Providing options at varying levels of support helps clients pick what suits their needs and budget, while giving you a steady base of recurring income.
- Track your time. Even if you’re not charging hourly, keeping an eye on where time goes helps with pricing and efficiency.
- Review regularly. Don’t let your fees stagnate. Review annually to ensure they reflect your value and market conditions.
Independent HR consultant earnings: the bigger picture
Ultimately, your earning potential as an independent HR consultant is in your hands. There’s freedom in that, which can feel both exciting and a little unnerving. By planning carefully, pricing confidently, and balancing retainer and project work, you can create a rewarding income stream that not only covers your bills but also funds the lifestyle and career you want.
Ready to take the next step?
If this article has got you thinking about your own potential as an HR consultant, now could be the perfect time to explore it further. Download our prospectus or get in touch with us for a chat. We’d love to help you explore what independent HR consultant earnings could mean for you and how to make it work in practice.