Simply stated, human resources has changed dramatically over the past decade. In-house HR departments can feel inundated by the pace of change, from new legislation changing how they relate to employees to shifting tax requirements affecting payroll management.

The challenges each business faces are unique to that business. But most find that at some point, they need effective guidance and advice to succeed. At such times, businesses are likely to consider hiring an effective HR consultant to get them over the rough spots.

The best HR consultants offer a level of expertise often not found within your existing team. They can even step up to the plate to hold interim HR positions as necessary. The right HR consultant is sufficiently adaptable to offer a wide range of expert services customized to the client’s needs. Whether you hire them for an individual project, on an hourly basis or using a yearly retainer, their goal is to fill whatever HR gaps exist in the business.

Why hire an HR consultant?

HR consultants bring expertise from every aspect of human resources operations, including payroll, recruitment, training, compensation, benefits and employee retention strategies. They can also help with improving and streamlining a company’s HR department.

A consultant helps you create better HR policies—which in turn creates a more stable workforce with lower turnover. What difference does this make for your company’s well-being (not to mention your bottom line)? Consider these revealing metrics from Capterra:

  • More than 55% of U.S. businesses report that employee retention represents a significant problem for their organizations.
  • Nearly 25% of new hires leave their new company within 45 days.
  • In the United States, the average settlement for a negligent hiring suit tops $1.6 million.
  • The cost to replace a worker who leaves your business is from 30% to 150% of the employee’s annual salary.
  • Employees who go through a robust onboarding program are almost 60% more likely to be retained for three or more years.

Those numbers reflect average HR performance. Actual results can vary by company, as every business has different goals and human resources-related challenges.

That said, here are the most compelling reasons to hire an HR consultant.

An Established HR Function

With their extensive knowledge of recruitment, onboarding, HR policies and procedures, compliance, and reporting and records compliance, trained and experienced consultants can establish a highly effective HR function from the ground up. This makes them invaluable to new and growing businesses.

Effective Recruiting Strategies

According to the Society for Human Resources Management (SHRM), the average cost to hire a new employee is more than $4,000. Not only do you want to find the best person for the job, you want them to stay.

An effective HR consultant can provide sound guidance on strategic and cost-effective recruitment strategies that reflect the expectations of job seekers. You can also outsource the entire recruitment process to your consultant, including headhunting services. Finally, your consultant can help you design a recruitment strategy that identifies candidates most likely to be retained over the long haul. The savings a strong consultant generates more than justifies the cost of hiring.

Successful Navigation of Complex Regulations and Compliance Requirements

Litigation is a major concern for most HR departments. One small instance of unfairness (perceived or actual) can lead to major financial and reputational damage. Experienced HR consultants have special training in conflict mediation and resolution, worker’s compensation claims, unfair labor practices and more. They also understand best practice strategies to enhance employee engagement and satisfaction, reducing the risk of expensive lawsuits. Additionally, an HR consultant knows the critical importance of compliance with new laws and regulations. This up-to-the-minute expertise helps businesses avoid penalties associated with non-compliance.

Confidence in Critical Outsourcing Decisions

Whether to outsource key HR functions like recruiting, HR management, payroll processing and benefits management is a difficult and complex decision. By hiring well-trained HR consultants for this work, you’ll have peace of mind that these functions are performed properly. And while they’ll never push you to make a choice you’re not comfortable with, they’ll give you the facts you need to make an informed decision.

An HR team With Time to Tackle More Critical Issues

Human resources is an increasingly labor-intensive function within your business. From paperwork to onboarding to monthly responsibilities, administrative tasks often take up a bulk of the department’s hours. An HR consultant can assist your HR team with streamlining  the time-consuming tasks—allowing them to perform the mission critical work for which you hired them.

Hiring the right HR consultant can help you streamline operations, increase engagement and satisfaction, improve recruitment tactics and ensure more effective employee retention strategies. While these are attractive benefits, it can be difficult to get started. That’s where we can help.

To learn more about the ways our HR consulting services can help your HR team deliver the kind of results that will make your business stronger and add to your bottom line, contact us today.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.