Do SMEs in Sussex need Retained HR Support in 2026?

By the HR experts at MJV Consulting – With over 40 years combined experience supporting small and medium-sized businesses across Sussex, Surrey, and London. Since 2016, we’ve supported small businesses in Sussex, Surrey and London with forward thinking HR strategies designed to support your growth.

Introduction

If you’ve ever searched for an answer to an employment law question at midnight or settled a dispute based on what felt fair rather than what was legally sound, it’s time to think about getting proper HR support in place.

It usually starts the same way. Someone hands in their notice and you realise you’re not sure the contract was ever signed. Or a team member calls in sick for the third Monday in a row and you don’t know whether you can have the conversation you need to have. Or you’re about to take on two new hires and it occurs to you that nobody has looked at the employee handbook since 2019.

If any of that sounds familiar, you’re not alone. Most business owners across Sussex and the South-East manage HR informally for as long as they can and for a while, it works. But there’s usually a moment when you realise that winging it has started to feel like a risk rather than a shortcut.

Why 2026 has changed the calculation?

That instinct is well-founded, because the regulatory landscape has shifted significantly. The Employment Rights Act 2025 received Royal Assent in December, and its provisions are already being phased in.

From April 2026, employees gain day-one rights to statutory sick pay with no waiting period and no lower earnings limit, along with immediate entitlement to paternity and unpaid parental leave.

The new Fair Work Agency is now operational with powers to investigate businesses, issue penalties and take legal action on behalf of employees.

And from January 2027, the qualifying period for unfair dismissal claims drops from two years to just six months.

For SMEs, this creates three practical pressure points at once: rising costs from expanded entitlements, more complex policy and process requirements, and significantly greater tribunal exposure if things go wrong. What was previously handled informally now needs to stand up to formal scrutiny. That’s a different game entirely.

The moments that catch business owners out

There’s no single headcount that triggers a need for external HR support, but there are specific inflection points where the risk of getting it wrong jumps sharply:

• Hiring your first employee brings with it-contracts, right-to-work checks, pension auto-enrolment and a compliant handbook need to be in place from day one.
• Growing past five to fifteen staff – this is where absence patterns, performance issues and interpersonal conflicts start to surface, and informal processes begin to create genuine legal exposure.
• Promoting someone into a management role – most first-time managers have no training in handling disciplinaries, grievances or difficult conversations. Under the new framework, a manager’s actions are the business’s actions.
• Winning a contract that requires rapid recruitment – onboarding multiple people quickly without proper processes increases the chance of a costly mistake.
• Dealing with a dispute or grievance for the first time – these situations escalate quickly when handled without expert guidance, and the financial consequences are significant. As we explored in our recent article on staff turnover, replacing a single employee earning over £25,000 costs an average of £30,000.

If you’ve recently passed any of these milestones – or you can see one coming – the question becomes what kind of support is right for your business.

Retained HR support versus Ad-Hoc HR Support-what’s the difference?

There are two main models for outsourced HR for small businesses, and they suit different situations.

Ad-hoc HR support is reactive. You pay by the hour or by project when an issue arises — a grievance, a contract query, a restructure. It gives you flexibility and works well for businesses with very occasional needs. The downside is that your consultant starts cold every time, costs are unpredictable, and you’re always dealing with problems after they’ve surfaced.

Retained HR support is proactive. For a fixed monthly fee, you get an HR partner who knows your business, your team and your challenges. They keep your contracts and policies current, flag risks before they become disputes, and are already up to speed when something urgent lands. It’s the difference between calling a doctor you’ve never met and speaking to one who already has your history.

Here’s how the two models compare across the areas that matter most:

	Retained HR support	Ad-hoc HR support
Cost	Fixed monthly fee, typically £295–£995+ per month for small businesses depending on the scope of support. Predictable budgeting.	Charged at £125 per hour. Flexible but unpredictable. A single disciplinary can run to 10–15 hours.
Legal risk	Contracts, policies and procedures reviewed proactively and kept current. Risks flagged before they become disputes.	Compliance managed reactively. Your consultant starts without context each time, increasing the chance of gaps.
Business knowledge	Your HR partner knows your team, your culture and your history. Faster, more informed advice.	Consultant needs briefing each time. Less continuity, especially if you don’t get the same person.
Growth support	Ongoing guidance on hiring, onboarding, probation structure, management development and retention.	Supports individual transactions but doesn’t build capability or infrastructure over time.
Best suited to	Businesses with 5+ employees, growing teams, or regular people management needs.	Businesses with infrequent, isolated HR queries.

Cost comparison in context: hiring a full-time HR manager in the South-East typically costs upwards of £40,000 per year in salary alone, before employer National Insurance and pension contributions. A retained HR package delivers qualified, experienced support at a fraction of that cost, and scales with your business as it grows.

What does Retained HR Support actually include?

The scope depends on the package you choose, and good providers structure their retained HR services for SMEs across tiers so you’re not paying for more than you need. At its lightest, a retained package covers employment law updates, core HR documents, an HR health check and phone and email access to qualified consultants — ideal for startups and businesses with up to ten staff. At its most comprehensive, it extends to full case management, monthly strategy calls, performance management, strategic workforce planning, employee engagement support and regular face-to-face meetings.

At MJV Consulting, our retained HR packages range across four tiers – Essentials, Standard, Premium and Platinum – each designed to match a different stage of business growth. Our Premium and Platinum plans includes your Breathe HR software Micro or Starter plan subscription, giving you a single, secure system for managing people admin and making compliance significantly easier. Workplace wellbeing services are also available as a bolt-on, providing your team with access to a qualified Mental Health First Aider.

Why local HR Support matters

When an employee raises a grievance on a Friday afternoon, you need someone who can pick up the phone and understand your situation without a thirty-minute briefing. That’s the difference between a local HR partner who knows your business and a national helpline where you start from scratch every time.

We’ve been doing exactly that for businesses across Sussex, Surrey and London since 2016. We’re a family-run consultancy based in Horsham with over 25 years of HR experience, and our team includes CIPD-qualified HR consultants, an accredited workplace mediator, a qualified Mental Health First Aider and a dedicated health and safety consultant. We work with independent schools, engineering firms, IT companies, accountancy practices and property businesses – and we take the time to understand every client’s business before we recommend a solution.

Our approach is straightforward. Good HR isn’t about process for the sake of it. It’s about protecting the business you’ve worked hard to build and creating an environment where your best people genuinely want to stay.

Frequently Asked Questions

How much does outsourced HR cost for a small business in the UK?

Retained HR packages typically start from around £295.00 per month for smaller businesses, depending on headcount and the level of support. Ad-hoc support is usually charged at £125 per hour. Both are significantly more affordable than a full-time HR hire, which costs upwards of £40,000 per year in salary before employer contributions and overhead.

When should a small business hire HR support?

Most businesses need structured HR support once they reach five to fifteen employees. At that point, informal processes start creating legal and operational risk. With the Employment Rights Act 2025 introducing day-one entitlements and a reduced unfair dismissal qualifying period from 2027, even very small businesses should ensure their contracts, policies and procedures are compliant.

What is the difference between retained and ad-hoc HR support?

Retained HR support provides ongoing, proactive access to a dedicated HR partner for a fixed monthly fee. They know your business and work with you to prevent problems before they arise. Ad-hoc support is reactive, charged by the hour or project, and works best for businesses with infrequent, isolated queries.

What are retained HR services for SMEs?

Retained HR services for SMEs typically include employment law updates, policy and contract reviews, phone and email access to qualified HR consultants, employee administration, case management for disciplinaries and grievances, and strategic HR planning. At MJV Consulting, all packages also include Breathe HR software integration and optional workplace wellbeing services.

What size business needs HR support?

Every business with employees needs some form of HR support. Employment law applies from your first hire, and the consequences of non-compliance – from tribunal claims to reputational damage – are the same regardless of size. Smaller businesses may only need a lightweight retained package or periodic reviews, while those with fifteen or more employees benefit from more comprehensive, ongoing support.

About MJV Consulting

MJV Consulting provides specialist HR support to Small Businesses and Independent Schools in Horsham, Crawley, Haywards Heath, Burgess Hill and Guildford. We offer retained HR services, compliance audits, policy development, and HR systems implementation, helping businesses manage their people effectively without the cost of full-time HR staff. Contact us via email www.mjvconsulting.co.uk or 01403 916727 to discuss how we can support your business growth.

If you’d like to discuss your HR challenges or explore how we can support your business, contact us at MJV Consulting on 01403 916727 or email us at info@mjvconsulting.co.uk. We’re here to help small businesses across Sussex, Surrey and London build teams that thrive.