HR consultants make up a $24.5 billion industry in the U.S., with further growth expected over the next five years. An increasing number of companies are hiring HR consultants, with small businesses representing a notable growth area.
There remains a considerable amount of confusion from some sectors regarding the role of an HR consultant and the benefits they can offer to businesses.
At its heart, HR consultancy is about advising business leaders on both general and specialty issues.
Covering General And Specialty Needs
HR consultants can be divided into two categories: generalists and specialists.
HR generalists will aid businesses in managing personnel needs such as recruitment, providing background checks, payroll administration, project management and health and safety compliance.
HR specialists will focus on just a specific area mentioned above. Specialists will offer a greater level of experience and expertise.
Throughout major HR departments, a generalist will often be responsible for managing a team of specialists.
Companies will often hire HR consultants to aid in their recruitment practices. Retaining talent is a top priority of U.S. companies. It is estimated that the best industry talent is eight times more productive than the average employee, but this same talent is also more likely to switch jobs if a better option comes along.
HR consultants can not only revolutionize a company’s recruitment practices but also help in retaining those new additions for years to come.
A consultant may take charge of the advertisement process, headhunt specific candidates, provide screening, conduct interviews and recommend compensation packages.
Employee Training and Development
Millennial workers report that opportunities for training and personal development are a major priority for them.
With this in mind, HR consultants can play a significant role in helping businesses to develop their workers. They may provide on-site training, development for soft skills and succession plans so a company can breed its own talent internally.
Total Rewards Programs
Known as Total Rewards, HR consultants can be invaluable in developing benefits and compensation programs for businesses.
This will involve knowledge in a range of areas, including base pay, additional benefits, job perks and rewards for employees who go above and beyond the call of duty.
Companies that focus on these programs are more likely to have higher morale among their employees and are more likely to attract and retain the best talent within their industries.
Some HR consultants will offer their own payroll services. They may also work with providers of benefits and liaise between these service providers and the business’s finance department.
Health and Safety
Health and safety is not just a set of guidelines employers are obligated to stick to. HR consultants will go much further than this. Studies are increasingly demonstrating that healthy employees mean fewer sick days, more productivity and higher levels of morale.
HR consultants can ensure a company is following relevant state and Federal safety regulations, monitor workplace security and identify patterns within previous claims so employers are aware of any changes they need to make.
HR specialists in health and safety have the capacity to save organizations money in legal fees, settlements and legal fees. Additionally, HR specialists can also make major improvements to the workplace, which will benefit morale.
U.S. law can be complicated because there are significant differences in the laws required by each state. It is critical for employers to know they are complying with both state and federal law.
HR consultants may be hired to ensure a business is complying with its legal obligations. In particular, issues like equality at work and anti-discrimination policies are known to trip up otherwise successful businesses.
Consultants can go even further by helping a business’s obligations to filter down to all levels of the business. This may take the form of developing employee handbooks, for example, which can enable employees to know about the procedures and policies that must be adhered to.
Online vs. Offline HR Consultants
HR consultancy has seen an evolution in which many businesses are opting to hire remote HR firms.
Remote consultants can handle many of the same functions as an in-house and in-person HR consultant. Not only does this make HR consultancy more accessible to small businesses but in an era where many companies are actively promoting remote working, this is a necessary step forward for the industry.
Speak To A Professional Remote HR Consultancy Firm
HR consultants offer an objective insight into the various facets of your business. Hiring a remote HR consultant can provide organizations with the tools they need to accelerate growth and push their operations into the future.
With remote HR consultancy improving affordability and accessibility for smaller businesses, entrepreneurs are afforded more choice than ever.
Speak to HR Search & Rescue for more information on how a HR consultant can help your business.