What’s Included in an HR Retainer? Scope, Services, and Limitations
🧭 TL;DR (Summary Box)
An HR retainer is a cost-effective way to access ongoing HR expertise without hiring a full-time HR team. It typically covers compliance guidance, employee relations, policy creation, and advisory support—helping businesses stay compliant with labor laws while maintaining smooth HR operations. However, it has limits: litigation, extensive recruitment, and one-off investigations are usually not included.
If your company struggles to keep up with HR compliance or employee issues, an HR retainer offers flexible, professional support at a predictable monthly rate.
Why Businesses Need HR Retainer Services
In the Philippines, many startups and SMEs operate without a full HR department. This often leads to compliance risks, documentation issues, or employee relations mishaps. That’s where an HR retainer comes in—it gives you access to seasoned HR professionals who can manage your people operations efficiently, at a fraction of the cost of hiring in-house.
Think of it as having an HR expert on call: you get professional advice and support whenever you need it, without the payroll burden.
What Is an HR Retainer?
An HR retainer is a long-term service agreement between a business and an HR consultancy firm. Instead of paying per project or per consultation, you pay a fixed monthly fee for continuous access to HR services and advisory support.
It’s like having a remote HR department that ensures your company remains compliant with labor laws and HR best practices.
💼 Typical Clients
- Startups and SMEs without a full-time HR team
- Companies are scaling up operations and workforce
- Businesses needing compliance alignment with DOLE
- Employers looking for consistent HR documentation and support
What’s Included in an HR Retainer Package?
The scope of an HR retainer can vary depending on your service provider and your business needs, but most packages in the Philippines include:
1. HR Compliance and Policy Development
- Drafting and updating employee handbooks
- Ensuring compliance with DOLE standards and local labor laws
- Regular compliance audits and recommendations
- Preparation of HR documents (e.g., contracts, memos, and notices)
2. Employee Relations Support
- Guidance on employee discipline and due process
- Conflict resolution and mediation support
- Advice on employee terminations and resignation handling
- Documentation of warnings, notices, and incident reports
3. HR Advisory and Consultation
- Access to expert HR advice for policy or strategic decisions
- Consultation on HR structure, performance systems, or workforce planning
- Regular check-ins with an assigned HR consultant
4. Recruitment and Onboarding Assistance
- Job posting support and pre-screening assistance
- Onboarding checklist creation
- Standard HR forms and templates
(Note: Full-scale recruitment may not be included and is often available as an add-on.)
5. Payroll and Benefits Coordination
- Assistance in setting up payroll systems
- Coordination with accounting or finance departments
- Ensuring compliance with SSS, PhilHealth, and Pag-IBIG requirements
6. HR Documentation and Reporting
- Maintenance of employee records and HR database
- Reports on employee movement, leaves, and attendance
- Templates for HR forms and communication materials
What’s Not Included (HR Retainer Limitations)
While HR retainers offer broad support, they’re not all-inclusive. Understanding their limitations helps set realistic expectations.
❌ Typically Excluded Services:
- Litigation or legal representation
- Large-scale recruitment campaigns
- Investigations or audits requiring extensive fieldwork
- In-depth training and workshops (often billed separately)
- Payroll processing (unless specifically included)
The retainer’s goal is to provide consistent HR support, not to replace all specialized HR or legal functions.
HR Retainer vs Project-Based HR Services
| Aspect | HR Retainer | Project-Based HR |
| Duration | Ongoing | One-time or short-term |
| Cost | Fixed monthly fee | Priced per project |
| Support | Continuous and flexible | Limited to project scope |
| Ideal for | SMEs needing regular HR support | Companies with specific HR initiatives |
Choosing between the two depends on whether your business needs consistent HR guidance or just one-time assistance (like an HR audit or policy setup).
Benefits of Having an HR Retainer
Here’s why many Filipino businesses are switching to HR retainers:
✅ 1. Cost-Effective Expertise
You get access to certified HR professionals without the expense of hiring full-time staff.
✅ 2. Consistent Compliance
Your HR partner keeps your company updated with DOLE regulations and ensures documents are always audit-ready.
✅ 3. On-Demand Support
Need help with a termination, contract, or policy question? Your HR consultant is just a message away.
✅ 4. Predictable Costs
A fixed monthly fee means no surprise charges—perfect for budgeting.
✅ 5. Improved HR Efficiency
You can focus on operations while experts handle compliance, employee relations, and documentation.
Common Pain Point: HR Confusion in Growing Companies
As businesses grow, HR tasks get more complex—contracts, benefits, disciplinary actions, and compliance checks pile up fast. Many SMEs struggle to keep things organized or interpret DOLE rules correctly.
An HR retainer solves this problem by providing structure and expertise. Your assigned consultant ensures HR operations run smoothly and policies are applied consistently, helping you avoid costly compliance mistakes.
How Much Does an HR Retainer Cost in the Philippines?
HR retainer pricing depends on:
- Company size and number of employees
- Scope of services included
- Frequency of HR consultations
On average:
- Small businesses: ₱15,000–₱25,000/month
- Medium-sized companies: ₱30,000–₱60,000/month
- Customized corporate packages: Negotiable
Some providers also offer “pay-as-you-grow” options—scaling your HR support as your headcount increases.
How to Choose the Right HR Retainer Provider
When choosing an HR consultancy, look for:
- Proven experience in Philippine labor law compliance
- Flexible service packages
- Dedicated HR consultants
- Positive client testimonials
- Transparent pricing
Ask whether they can customize the package to fit your business goals—especially if you’re in a specialized industry (like tech, retail, or construction).
Summary: The Value of an HR Retainer
An HR retainer is more than just outsourced HR—it’s a strategic partnership that ensures your business remains compliant, efficient, and employee-friendly. It bridges the gap between having no HR department and hiring a full internal team.
If you find HR compliance confusing, or your team spends too much time managing HR paperwork, an HR retainer might be the smarter, more scalable solution.
🧩 Frequently Asked Questions (FAQs)
- What is an HR retainer?
An HR retainer is a monthly service package that provides ongoing access to HR experts for compliance, advisory, and employee management support. - What’s included in an HR retainer package?
It usually includes policy development, compliance audits, HR consultations, and employee relations assistance. - What are the limitations of an HR retainer?
It excludes legal representation, major investigations, and full-scale recruitment campaigns. - How much does an HR retainer cost in the Philippines?
Packages typically range from ₱15,000 to ₱60,000 per month depending on company size and needs. - How is an HR retainer different from project-based HR services?
Retainers provide ongoing support, while project-based services focus on specific, one-time tasks. - Who should get an HR retainer?
SMEs, startups, and growing businesses without a full HR team benefit the most from retainers. - Can an HR retainer help with DOLE compliance?
Yes, most retainers include compliance checks, document reviews, and regular updates. - What are the benefits of an HR retainer?
It saves costs, ensures compliance, provides expert advice, and improves HR consistency. - Can an HR retainer include recruitment or payroll?
Some providers offer these as optional add-ons. - Is it better than hiring a full-time HR officer?
For small to mid-sized companies, yes—it’s more affordable and provides access to broader HR expertise.
📌 Key Takeaway
An HR retainer gives your business peace of mind knowing that compliance, employee relations, and HR documentation are handled by professionals. It’s a scalable, affordable way to maintain sound HR operations—without the overhead of an in-house team.