Fractional CHRO providers rarely publish a monthly fee. Most quote after a call about headcount, locations and the state of your HR records. From the quotes buyers report and the rates practitioners discuss publicly, a fractional CHRO typically costs $3,000 to $10,000 a month. The table below this guide will show minimum fees as providers publish them.
Typical levels
- Advisory, 2 to 4 days a month: roughly $3,000 to $5,000. Policy and compliance oversight, manager advice on hard cases and a monthly review with the CEO.
- Standing role, 4 to 8 days a month: roughly $5,000 to $8,000. Runs the performance cycle, builds pay bands, owns hiring process and handles employee relations.
- Heavy role, 8 to 10 days a month or more: roughly $8,000 to $12,000. Leads a reorganization, a merger of two workforces or an international expansion, often with an HR coordinator reporting in.
What drives the price
Headcount sets the base. Every employee adds questions, reviews and records. Locations add more than headcount does: each new US state brings its own wage, leave and notice rules, and each new country brings a different employment law system. The state of the records matters. A company with misclassified workers, no handbook and missing paperwork needs a heavier first quarter. Industry adds a premium where regulation is tight, such as healthcare, or where the workforce is hourly and shift-based, as in hospitality and manufacturing. Union workforces need specialist experience.
Projects
Many companies start with a project. An HR compliance audit, typically $3,000 to $10,000, reviews classification, policies, records and postings and ranks the risks. A handbook written or rewritten for your states often runs $3,000 to $8,000. A compensation benchmarking project with salary bands runs roughly $5,000 to $15,000 depending on the number of roles. Workplace investigations are priced separately and are sometimes better handled by employment counsel so the findings are privileged.
The costs beside the fee
A fractional CHRO sets strategy. Someone still has to run payroll and benefits. A payroll provider costs per employee per month. A PEO, which becomes the co-employer and pools benefits, usually costs more per employee and often reduces benefits costs for small companies. HR software, background checks, training platforms and recruiting tools are additional. Ask the CHRO for a total people budget with these on separate lines, and whether they recommend changing your current provider.
Equity
Equity deals are rare for HR leaders at the companies on this site. The role is usually paid in cash.
What month one costs in time
Plan on 4 to 8 hours from the CEO: a history of the company’s people issues, access to payroll, the HR system and employee files, and a list of open problems. Managers should expect a short interview each. An office manager or whoever handles HR tasks today will spend more time, handing over records and processes.
How to read a quote
Check the days per month behind the fee, which states and countries are covered, whether investigations and terminations are included, how the provider works with your payroll provider or PEO, the minimum term (three months is common) and whether the first month includes a written compliance audit. Ask whether the provider sells payroll or benefits services too, since that affects what they recommend.