€4,500 vs. €800: What an HR Position Really Costs
A full-time HR position in Germany costs approximately 4,500 euros per month, including payroll-related expenses . If you factor in vacancies, onboarding, and the risk of employee turnover, the cost rises significantly. An external HR department on a retainer model starts at around 800 euros per month . The calculation most management teams have in mind is incomplete.
For many small and medium-sized businesses, hiring a full-time HR employee is the most obvious solution as soon as personnel issues become too much to handle. However—and we say this deliberately to make a point—it is often the most expensive mistake of the year . Not because HR professionals aren’t valuable, but because the mental calculation is incomplete.
What's on Your Paycheck — and What Isn't
A full-time HR professional costs at least 4,500 euros per month—often more, depending on experience and region. On top of that, there are costs that are rarely factored in:
- – The period until the position is filled, during which tasks must continue to be handled on the side
- – The onboarding period, during which the new hire is not yet productive
- – The risk of hiring the wrong person—which can be particularly costly if that person is supposed to be responsible for ensuring proper processes
- – The risk of turnover: If the skilled worker resigns after a year and a half, the entire process starts over
A Direct Comparison
| Full-time in-house position | DIGIVI Retainer | |
|---|---|---|
| Monthly Costs | Starting at €4,500 (including payroll expenses) | starting at 800 € |
| Availability | After the position becomes vacant + onboarding (months) | within 1–2 weeks |
| Risk of Default | high (vacation, sick leave, resignation) | none |
| Scalability | none | flexible as needed |
| Depth of Experience | one person | well-coordinated team |
Why this calculation is done so rarely
Because HR is treated as a cost center in many small businesses, rather than what it actually is: your safeguard against the most costly mistake of all—an improper termination, a missed deadline, or a missing document during an audit.
Anyone who views HR solely from the perspective of “how much does the position cost” overlooks the other side of the equation: what it costs when HR isn’t running smoothly .
