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HR consultancy firms provide services in system implementation, recruiting, business process evaluation, and compensation management. They are typically used by large organizations and aim to fill a short-term gap in the services provided by the company’s internal HR department. Consultants are certified HR specialists with experience in different aspects of the profession.
HR consultancy firms are available all over the world and are designed to meet different specific needs of HR services. Human resources (HR) consulting is generally divided into four main areas: system implementation, recruiting, business process evaluation, and compensation management. HR consultancy firms are typically used by large organizations that have a dedicated HR department. In general, enterprises with fewer than 250 employees are not of the required size to request the services of this type of enterprise.
The main goal of all HR consultancy firms is to fill a short-term gap in the services provided by the company’s internal HR department. Consultants are typically certified HR specialists with experience in different aspects of this profession. When selecting a consulting firm, it is standard practice to request the resumes of the consultants who will be assigned to the project. Carefully review resumes to determine the level of education and experience each team member possesses.
Implementing the system is a large part of the work done by HR consultancy firms. There are two types of systems used for HR: enterprise resource planning (ERP) or payroll/HR system. The ERP facility requires a specific set of skills, including skills in configuration, system analysis, HR and payroll legal requirements, and scheduling skills. A standalone payroll system also requires system implementation training, but lacks the complexity of an ERP implementation.
Hiring services can range from short-term job needs to executive search committees. The general need fulfilled by this type of company is to manage the job posting and application review process. Typically a recruiting firm will do the initial review and interview of potential candidates. A short list is then presented to the client, who will hold second and third level interviews with the recruiter. After selecting a suitable candidate, the hiring firm receives payment for the services rendered.
Business process evaluation is a growing area for HR consulting firms. In order to provide this service, consultants must have a strong educational background in human resources and be familiar with all local employment laws, reporting requirements, and other regulations. Industry experience is also required to understand the gap between ideal solutions and practical needs.
Compensation management is the process of comparing the total compensation package provided by a company to industry, sector and geographic location. Active payroll management is an integral part of staff retention and hiring. The hidden costs of high employee turnover have a large impact on company productivity and efficiency.
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