As companies and businesses grow, so do their needs. However, growth doesn’t always mean that businesses need to hire people full-time. This is especially the case with human resources (HR) where companies often need a consultation rather than hire people. That’s where HR consulting firms come in.

HR is probably one of the largest fields on the job market. It’s also sometimes vague and many business owners aren’t familiar with the various tasks HR people provide.

Most businesses assume HR personnel are hired only to pay salaries at the end of each month. While they do provide that service, payroll is one of dozens of services provided by HR people and companies.

Similarly, HR consultancy service providers help businesses by providing them with human-resource expertise, without the hassle of full-time hiring.

But what are HR consultancies? How do they operate? And what’s in it for your business? Keep reading to find out the answers to all these questions and more.

 

What is an HR consultancy?

To get human resources services, you can hire a team, hire a single person and hope they can perform a million tasks, or you can hire an HR consultancy.

An HR consultancy is a company that provides various kinds of HR services. These HR companies help you apply best practices, manage your business, and ensure a smooth workflow and business environment.

Here’s a quick definition of what HR consulting is and how it works via the Society for Human Resource Management (SHRM):

“HR consulting is the practice of delivering all aspects of human resource management as an external provider, and with the professional and business issues associated with operating such a practice—including client development, contracts and client management.”

Think of an HR consultancy as hiring a multitude of advisors without having to worry about the cost of keeping them full-time. HR consultancies are like advisors but on overdrive, bringing tons of expertise to your company.

Working with HR consultancy companies isn’t limited to large firms. In fact, it’s more needed and recommended for small and medium sized businesses who often don’t have the capacity to hire a full HR team.

 

What kinds of services do HR Consultancy firms offer?

HR consultancy companies, sometimes referred to as human resources management firms or HR solutions consultancies, offer a wide range of services.

Some of these services can be carried out on the short-term, while others, like HR strategies, are implemented on a medium or long-term.

Here are more services provided by HR consultancy solutions providers, creating & implementing the following:

• HR strategy
• Business strategy
• GAP analysis
• Human resource management solutions (HRM)
• Payroll outsourcing services
• Talent management
• Training and development for companies or HR employees or both
• Legal services
• Enhanced recruitment processes
• Recruitment services
• Employer branding

It’s worth mentioning that these services may differ from one HR consultancy to another. Some HR consultancies offer only a few of the abovementioned services.

Why HR consultancy is important for businesses

But how do HR consulting firms help businesses? Here are 10 benefits to working with an HR consultancy like Tawzef.

1)  Helping companies grow

One of the primary reasons businesses hire HR consultancies is because they want to grow. And who doesn’t want to grow their company?

It’s worth remembering that the type of growth an HR consultancy offers differs from that offered by a marketing agency.

HR consultancy companies focus on areas like recruitment, business and HR strategy, GAP analysis, creating salary grading systems, and more.

Unlike marketing companies that focus on the external side of the business, what the world sees, HR consultancies focus on the internal workings of a company, and how these workings drive the business.

It’s because of this area of focus that HR personnel as well as HR firms often go unnoticed.

 

2) Focusing on areas businesses aren’t familiar with

HR management consultancies help small and medium-sized businesses by focusing the areas that these businesses are generally unfamiliar with.

These areas usually involve corporate and salary structure, some financial and legal services, ensuring compliance with labor laws, offering recruitment services, and more.

 

3) Being able to work on a per project basis

One of the benefits of working with HR consultancy companies is being able to work on a per project or an as-needed basis. Unlike full-time employees, a consultancy doesn’t need to be available from 9 to 5.

A consultancy comes in, provides a service, and leaves so that you can focus on the rest of your business. Depending on your needs, HR consultancies may be working in the background and in parallel with your team.

 

4)  Employee training

HR solutions providers help businesses train and upskill their employees. In today’s fast-paced working environment, having employees who lack the skills to keep up with technology in their field is bad for your business.

HR consultancy companies not only help you recruit top talent, but also upgrade your current team’s skills. These skills can range from soft skills needed for managerial and customer-facing roles to hard skills that serve employees’ jobs and internal progression in your company.

The HR firm works to align your company’s needs with the training your employees need.

It’s worth mentioning that upskilling your employees can increase their productivity, which can translate to better business results for you.

 

5)  Better and faster hiring

As human-resources-focused firms, HR consultancies are experts in helping businesses with their hiring needs.

This can range from creating an internal hierarchy to helping you add new departments & teams and attracting talents for these new teams.

Some HR consultancies like Tawzef also offer services like manpower outsourcing. In this case, Tawzef not only acts as the consultant but also as a third-party provider of different types of HR outsourcing services including hiring and managing employees for your company.

 

6)  Creating a corporate structure

Many business owners – and sometimes junior HR personnel –aren’t aware of this. But an important HR service that’s often forgotten or neglected is creating a company’s corporate structure.

This includes managing employee needs, setting salary structures, assessing managers and their skills,…etc.

 

7)  Offering HR and technological improvements

Another reason to consider hiring and working with an HR consultancy is the HR technology they can provide you with to speed up your different business and administrative process.

In addition to HR tech solutions, some consultancies can provide you with financial and fintech solutions.

 

8)  Reducing and managing risks

Companies faces a variety of risks every day. From legal risks to labor and labor law violations to employee-related risks such as turnover or disgruntled employees.

Human resource consultancies play a major role in helping you manage and reduce those risks.

For employee-related risks, consultancies help you manage and implement efficient exit strategies, support you by training managers to use key performance indicators (KPIs) and conduct performance reviews, and so on.

 

9)  Employer branding

Though employer branding today is a task for the whole company, it’s also something an HR solutions provider can help you with.

A company with good or positive employer branding can attract talents easily. Consultancies work to improve a company’s brand image.

However, it’s worth mentioning that employer branding is a long-term strategy. Even if a consultancy helps you improve your branding, if you don’t implement employee-friendly measures inside your company, no business will ever be able to help you.

If you fail to treat employees with the fairness and respect they deserve, it’s unlikely that ‘positive’ employer branding will last long.

 

10)  HR consultancies are cost-effective

Companies, regardless of size, are constantly trying to cut their costs. Hiring a full-time HR team of a dozen employees isn’t cost effective. On the other hand, collaborating with an HR consulting firm is.

As mentioned, HR consultancy companies operate on a per project basis or a monthly retainer. As a business, you determine the services you need and the HR consultancy provides them. Depending on the service requested, this can be a one-time service or a monthly requirement.

This is not to say that you don’t need any HR personnel, however. An HR consultancy can help train your internal team and manage the broader aspects of your HR needs.

For example, an HR consultancy like Tawzef helps companies by creating the HR strategy and then trains the client’s team on how to implement the strategy and ensure its effectiveness.

 

Wrap up

As you can see, there are many benefits to working with an HR consulting firms. Not only that, consultancies can also guide you as to your needs.

HR consultancy solutions providers are better-positioned and equipped to help you with one-time services and with broad services that you may not have the capacity – or financial budget – to do in-house.

 

Want to learn more about HR consultancy companies? Considering hiring an HR consultancy firm? Then get in touch with Tawzef and our team will help you with your HR and business needs.