Companies without proper HR processes in place leave themselves susceptible to breaching legal obligations, an unhappy workforce, and a tainted reputation. Overlooking HR functions will be detrimental to businesses operations.
Maybe limited time to think about HR is costing businesses? Perhaps they can’t afford a fulltime HR professional? Whatever the reason, there is a solution: outsourcing to a HR consultancy,
This guide will explain what HR consulting is, and the benefits it brings.
What is HR consulting?
HR consulting is when outsourced human resources professionals offer expertise and guidance to businesses, helping them manage their workforce more efficiently.
Rather than being a permanent, fulltime role, HR consultants may work on a contractual basis, addressing specific HR issues or striving to refine companies’ overall HR processes.
There are plenty of HR consulting opportunities that your business could benefit from. Let’s explore 7 ways HR consultancy could improve your organisation.
1. Compliance & risk mitigation
Stay ahead of shifting laws
Employment laws and regulations are frequently subject to change. Notably, there has been reform to the Employment Rights Bill. With HR consultancy services, you can be confident your organisation adheres to employment legislation, and importantly, is prepared for any legislative amendments.
Dispute resolution
Certain procedures can be complex and challenging; HR consulting firms offer assistance by drafting official documents and providing consistent frameworks for disciplinary and grievances processes. Download our grievance template letter for a watertight approach to resolving misconduct.
Because of HR consulting’s third party-status, they’re positioned to handle delicate employee relations scenarios fairly and impartially. This limits the likelihood of costly tribunals and other legal proceedings.
Audit for vulnerabilities
It mightn’t be apparent that that businesses HR processes are lax. HR consultant companies typically begin their duties by conducting a compliance audit to highlight potential risks.
This proactive process enables organisations to rectify HR issues like outdated contracts or vulnerabilities that might lead to data breaches.
2. Advice & expertise
Unbiased perspectives
Internal teams may have overlook operational gaps and opportunities because of familiarity with the company. HR consulting firms’ approach is fresh, which is valuable when tackling sensitive HR issues like conflicts or restructuring.
Up-to-date knowledge
To continue providing businesses with exceptional service, HR consultancy companies stay informed on the latest trends, technologies, and best practices. This commitment to developing their own expertise allows them to help organisations thrive.
Strategic decision-making
Lending to their vast experience, HR consultants can provide strategic input to alleviate a plethora of HR issues, including workforce planning, succession planning, and many more data-driven decisions.
3. Reduce costs and save time
Cost-effective approach
Companies that don’t have the same capital as corporations may not be able to afford a dedicated human resources department. Therefore, HR consulting firms for small business are a viable, affordable method to ensure the smooth operations of an SME.
Streamline HR processes
Organisations with HR processes in place will benefit from consultants scrutinising them and making changes so they’re efficient. This analysis allows amendments to be made that reduces time and resources spent on tasks like recruiting, onboarding, and payroll.
Decreased staff turnover
Effective engagement and retention strategies introduced by HR consultants can help keep hold of companies’ best talent. Replacing an employee is expensive—and that isn’t strictly the recruitment process, it’s training and development, too.
4. Employee performance and engagement
Create effective talent strategies
Whether it’s writing job descriptions or managing the interview and onboarding process, HR consultants help find top talent for your business. As discussed, they also implement measures to boost engagement, morale and retention.
Better performance management
Performance reviews are synonymous with promotion and pay increases, and therefore, are a stressful time for both employees and employer. HR consulting firms incorporate detailed performance management systems that set KPIs, as well as delicately deliver constructive feedback.
Improve company culture
Through implementing policies that encourage fairness, transparency and employee wellbeing, HR consultants help curate a positive, harmonious work culture. When employees are satisfied, productivity tends to increase.
5. Employer brand and reputation
Build a strong Employer Value Proposition (EVP)
With a strong EVP, your company has a better chance of attracting exceptional talent. HR consultants can help define and craft an EVP so that companies can stand out from their competitors.
Align messaging
By collaborating with other departments, particularly marketing, HR consultancy firms ensure brand messaging mirrors employee experience. This commitment to consistency avoids misrepresentation and potential harm to a company’s credibility and reputation.
Brand advocacy
When a positive workplace culture is instilled, employees act as authentic brand ambassadors. Employees who feel valued are likely to speak positively about the company, word-of-mouth marketing acts as an effective recruiting tool.
6. Nurture leadership capabilities
Develop future leaders
Combining assessments and performance evaluations, HR consultants help to identify employees with the qualities to be leaders. It creates a pipeline of internal leaders who understand the business, ensuring continuity.
Tailored leadership training
Focusing on key skills such as communication, critical thinking and adaptability, HR consulting firms can design custom training sessions for new and senior leaders.
Coaching and feedback
Many employees find receiving feedback stressful and demotivating. With proper training led by HR consultants, leaders refine their skills and learn how to gently give constructive feedback, ensuring morale within their team isn’t impeded.
7. Future-proof your business
Forecast future workforce needs
Analysing workface data allows HR consulting companies to predict and prepare for skill and talent gaps. Your business can react accordingly, be that through training or recruitment.
Capitalise on technology
Integrating the latest technologies, like AI and data analytics, into HR processes enables businesses to streamline operations and create a digitally-enriched workforce.
Amplify adaptability & resilience
Where change occurs, HR consultants that concentrate on people help businesses foster a sense of adaptability and resilience. They integrate strategies that promote employment engagement and stability, which is crucial for long-term success.
FAQs: How can HR consultancy improve your business?
What is a HR consultancy, and what do they do?
They’re a third-party that provide expert advice to help companies effectively manage their human resources. Their work may be contractual, ad-hoc, or projected-based. It could cover recruitment, employee relations, training and more.
How is a HR consultancy different from an in-house HR team?
A HR consultancy firm gives an independent perspective that an in-house team lacks—especially concerning sensitive subjects. They provide specialist knowledge on a flexible, cost-effective basis, which is why there are many HR consulting firms for small business.
When should a business consider using a HR consultancy?
Reasons will vary. Generally, HR consultancy services are useful if a business is facing complex HR issues or experiencing rapid growth.
Can a HR consultant improve productivity?
Automated daily HR tasks and incorporated performance management systems by HR consultants allows businesses to use their resources on core activities.
What role does a HR consultancy company play in recruitment and retention?
The development and implementation of proficient recruitment strategies, like clear job descriptions and improved onboarding processes, contributes toward attracting the best talent. A clear focus on employee wellbeing helps with employee loyalty.
Final say: How can HR consultancy improve your business?
From helping businesses be legally compliant in the face of changing legislation, to offering impartial expert advice, and saving invaluable resources like time and money; the benefits of a HR consultancy are multifaceted.
Transcending supporting businesses in the present, HR consulting companies lay the groundwork for the future. They galvanise companies by developing leaders and future-proofing them so that they thrive in an unpredictable economy.
Get expert advice on outsourcing HR from Peninsula UK
Irrespective of the stature of a business, not managing HR properly could result in severe consequences. Outsourcing to a HR consultancy is a wise decision—but only if you take the necessary provisions; ensure you partner with a reputable company,
Peninsula offers expert advice on outsourcing HR for large and small businesses. Our service teams provide 24/7 HR advice from a HR expert which is available 365 days a year. We can help you find a solution when you work with our HR team.
Want to find out more about human resource management and HR support? Contact us on 0800 028 2420 and book a free consultation with one of our HR consultants today. Speak to a HR expert now.
