What are HR Consulting Firms?
HR Consulting firms are HR outsourcing companies that deal in providing different HR services. These companies have a team of consultants who are specialized in various critical areas of Human Resource Management. They help different sizes of businesses in improving their HR functions and operations. Moreover, such firms guide organizations in implementing new policies and procedures in the best possible way.
Services Provided by HR Consulting Firms
Some firms help in providing services related to talent acquisition, recruitment, and onboarding of employees. Some firms focus on the training and development of the employees. While some HR consulting firms provide a mix of services, for instance:
Taking care of finance and work charges
- Ensuring compliance with business-related laws
- Managing laborer’s pay
- Keep a check on the security of the working environment and danger administration
- Provision and look after employee benefits such as retirement programs
- Ensuring HR consistency
- HR Management that includes worker manuals, handbooks, remuneration, etc
- Total Outsourcing, for example, the substitution of the in-house HR capacity
- Providing assets and direction toward expanded efficiency
- Recruiting, including candidate testing, employment postings, and personal verifications of candidates.
- Benefits Administration, including the protection and security of employees rights
- HR Technology capacities, including reporting and finance/advantages combination
These firms also deal with assisting in the transformation towards automated HR activities. In mergers and acquisitions, the HR Consultant helps identify the effective working style, role assigning, suitable compensation, and payroll system for the merged companies.
HR Firm’s Benefits
- Outsourcing HR consultant provides a second opinion on the ongoing HR activities. The companies HR staff may overlook some of the HR issues and challenges as they are involved in developing policies and procedures. Still, as outsiders, the consultant can quickly identify all the HR discrepancies and provide a better solution.
- Building a massive team of HR and assigning different HR-related tasks to them can be costly. Apart from the salary, the company has to bear the cost of benefits and other allowances. Hiring an HR consultant is a cheaper option. The company has to pay the consultant only when they are working on some projects.
- HR consulting firms share the HR employee’s burden and assist in different key areas. It increases the efficiency of the HR employees and the company as a whole.
Types of HR Consulting Firms
Two factors can determine the type of HR consulting firm. One is the size or type of business the HR consulting firm is supporting. For example, some HR consulting firms work for small scale or home-based businesses, while others work for fully developed corporations or industries.
The other factor that determines the type of firm is the type of services it is providing.
- Mergers and acquisition of HR consultation
- Retirement and Actuarial HR consultation
- Employee Benefit consultation
- Compensation HR consultation
- Employee engagement HR consultation
- Talent mobility HR consultation
How Much the HR Consulting Firms Charge?
Usually, the HR consultants charge per hour for the services they provide. The average rate for hiring the HR consulting firms ranges from $50 per hour to $150 per hour.
For long-term assignments such as writing the employee’s handbook or employee development programs, the consultants charge a lump sum amount after completing the project. Some firms set up the list of deliverables or milestones and get paid after achieving every milestone.
Hiring an HR consulting firm is an investment as its cost return rate is very high. It helps the companies strengthen their HR functions and minimize risk management as the labor regulations are regularly changing. Hence, the HR consultants help companies to stay up to date with the ever-changing employment laws.