Independent consultants stand to gain as an increasing number of organizations pare down full-time staff and look to outside help for HR-related tasks.
According to a recently published article on the Society for Human Resource Management (SHRM) Web site, industry insiders say that independent consultants have an advantage over big players when it comes to providing HR services to organizations.
The greatest opportunity for HR consultants may rest with small companies. Based on Small Business Administration statistics, 97 percent of U.S. businesses have 20 or fewer employees. Stretched in many directions, many owners and managers of small businesses do not have the time to handle HR-related issues and can benefit from advice that helps them save money, improve processes, and avoid risk and liability. Experts say small organizations can benefit most from advice about compliance issues, employee relations, and tactical, day-to-day HR-related tasks.
Based on a 2007 survey of 99 companies by the Everest Group, more outsourcing opportunities exist for HR consultants when processes are “transaction-based.” The management consultant firm found that of all HR-related tasks, payroll is the most commonly outsourced (87 percent). After payroll, companies most frequently outsourced:
- HR management services (83 percent)
- Regulatory compliance functions (67 percent)
- Compensation (48 percent)
- Recruiting and selection (42 percent)
- Performance management (36 percent)
- Training and development (32 percent)
- HR strategy (21 percent)
Source: Society of Human Resource Management (SHRM), “HR Services Outsourcing Explosion Has Created Boom for Consultants,” Lin Grensing-Pophal, SPHR, October 2007.
Written by Jenny Cromie, certified human resources specialist (CHRS)
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