An HR consultancy firm is a company that provides solutions for companies that are facing HR related problems. These may stem from having no payroll system to having problems with their hiring and recruiting processes. An HR consultancy firm is able to adapt to their specific client’s need that is why HR consultancy firms are becoming a trend. In addition, they are sometimes tasked in creating modules or training manuals for the company in the hopes of easing newly hired employees to the working culture of the company and also provide a three-dimensional team building for the company.

HR consultancy firm are used today, because almost all companies will reach a certain point in terms of company size and profit margin, Human resource management becomes an attractive option in the furtherance of the business (Majumder, 2017). Also, it is not uncommon for companies to invest in human capital since expanding a company’s operation would always entail a sudden increase in human resource and for most companies, human resources is a tricky asset to manage since you are dealing with a human being. That is why, HR consultancy firms are being employed to provide ease and comfort for the company with regards to their HR department.

It is common for companies to employ HR consultancy firms. As mentioned above, human capital management is a great way in creating a steady working environment by implementing incentives systems, project head rewards, etc. that will help boost the morale of the employees in the company (Majumder, 2017). Furthermore, HR consultancy firms will give you an honest feedback with regards to the employees’ performance. Reaching a certain level of size as a company, management would often lose track of their employees’ performance, that is why HR consultancy firms are a great way to do check and balance (Dube Consulting, n.d.).

What are the common misconceptions of HR solutions consultancy?

Since HR consultancy firms are fairly new way trend in the business environment, there are bound to be misconceptions. A common misconception is that, HR consultancy firms will tell you what to do. An HR consultancy firm would not outright tell you what you have to do, instead they are tasked to create solutions for you. They will do their suggested solutions with you. They will take you through every step of the process. Another misconception is, they will give you generic procedures. The main purpose a company employ an HR consultancy firm is to have their specific problem fix with a specific solution. HR consultancy firms will enable the company to figure out how to stop a certain problem by having constant communication with their consultant for better assessment and for better solutions (Employers Advantage, 2018).


What are the most common advantages of an HR solutions consultancy firm?

  1. Recruiting — A firm knows what it will take to attract qualified job seekers in a certain field. The consultants on each specific department can also tip on other recruiting firms and small businesses to know which are the best strategies and tactics as well as how to hire wisely. Every business knows that every resource is precious to be able to maximize potential growth in their industry, which is why some businesses often invest in this firm to avoid having ineffective recruitment strategies. With an HR solutions consultancy firm, they are the ones who can aid you in creating a ; productive workforce which means minimizing the cost-per-hire.
  2. Expertise — HR consultants provide advice on the day-to-day operations of the business. These consultants are always trying to learn and to continually get data and knowledge from the industry. With them learning the best practices to be able to market high-quality service to clients, the functions of an HR will be able to maintain employee engagement and productivity. When they have maintained this, the client will have trust in their advice and counsel.
  3. Outsourcing — HR solutions consultancy firms can help in weighing the benefits of one outsource provider over another. When a firm performs HR functions that a client needs, the client saves expenses and resources of paying the salary and benefits of an employee (the action of which the HR firm was within their scope and expertise).
  4. A new perspective — At most times, small business owners can be blinded by their pride to have others take a look at their business and judge what can be done to have it prosper more. It can be difficult for small business owners to see and accept even the most obvious and most effective solution. HR consulting can give small business owners a new perspective and can give expertised guidance to what they can do by providing solutions and steps in having the optimal HR function of their business. With this, the business will have an easier time of achieving the business goals and objectives.
  5. More efficient HR operations — Most small businesses operating on a tight budget. HR consulting firms can lower your HR costs down by having the right strategies and choices for the business to operate more efficiently and effectively.


What are the most common disadvantages of an HR solutions consultancy firm?

  1. Morale — Having employees hear that top management is bringing in a consultant can bring connotations of changes within the system. This may mean job losses and pay cuts. With the employees having low morale, it can lead to them having less productivity. This is why having a firm that is able to demonstrate how to integrate the newly brought in process is crucial since they will have to let the employees know what they will benefit from. By doing this, the employees can be on board with the new changes made in the organization.
  2. Lack of in-house expertise — With having a consultant on board, there will be changes. And with change, comes an initial period of learning where they will need to know the ins and outs of the company, how you do things, what are your objectives, etc. If this is not done properly, the changes that the consultancy solutions firm that will be implemented might go against your values, mission, vision, and philosophies. This will cause conflict between employees and top management, top management and consultancy firm, which means this will set you back.  An HR solutions consultancy firm that takes the time and effort to invest in understanding, knowing, and researching the industry itself is important. Because when they are able to know what values and goals you have, they will be able to make the changes effectively and at the same time not crossing the line in terms of the company’s values.
  3. Confidentiality — the top management or owner of the business must be ready to prepare a confidentiality agreement. The owner must also be prepared to let the employees know of this agreement since the role of HR solutions consultancy firm is knowing confidential and sensitive employee details. Take caution in preparing a confidentiality agreement. Give it to a lawyer since it’s vital that your data remains safe.
  4. No trust — When a third-party is brought over to a company, employees will long for a familiar face when they have HR issues; replacing someone they know and can open up to with a complete stranger can be startling for someone. An example of this would be when an employee wants to ask something personal to the HR, they would feel more comfortable talking face-to-face. Employees want to feel secure with the confidentiality of their conversation with this person. To avoid this, it is important that members of the HR solutions consultancy firm visit the office regularly to build trust within the employees.



Dube Consulting. (n.d.). Why Hire an HR Consultant, HR Consulting Services. Retrieved from

Employers Advantage. (2018, May 10). 3 Common Misconceptions about an HR Consultant: Outsourced HR. Retrieved from

Hadjiandoniou, M. (2016). The Benefits of using a Human Resource Consultant. Retrieved from

Majumder, S. (2017, January 20). Top 5 Benefits of Using a HR Consulting Firm. Retrieved from

Mayhew, R. (n.d.). Types of Businesses to Start» Starting a Consulting Business»

The Advantages of Hiring an Outside HR Business Consultant. Retrieved from


N/A. (n.d.). Human resources consultants – the advantages and disadvantages of outsourcing. Retrieved from