When it comes to engaging an HR consultant, the question is not ‘How much will HR consulting cost my business?’, but ‘How much can human resources consulting SAVE my business?’
Although it seems like a significant upfront cost at first, it pays, in the long run, to get a great consultant to help your business.
Keep reading to learn how much an HR consulting service can save your business and play a role in its success.
What Is HR Consulting?
Put simply, human resources consulting is as it sounds – consultation on human resources practices. As a business owner, to manage your people and ensure employee satisfaction, you need to have a solid HR strategy and proper structures in place.
HR consultants can help you establish HR processes that keep your employees happy and ensure that your business remains compliant – and saves you money while doing so.
How Does HR Consulting Save You Money?
There are several ways that HR consulting saves your business money overall. Some of the top ways include:
- Eliminating the need to hire a new full-time employee for HR purposes
- Ensuring that you hire the most qualified staff and maintain a high retention rate, saving on employee turnover costs
- Increasing employee satisfaction and, as a result, employee productivity
- Ensuring that your business’s HR processes are always compliant to avoid potential fines or lawsuits.
What’s more, it isn’t just money that you save. You also save valuable time. When you aren’t bogged down trying to manage your team and other human-resource-related tasks, you win back time to perform revenue-generating tasks for your business. This may include:
- Seeking new potential business and building stronger relationships with your regular customers
- Developing and innovating your business
- Finding new avenues for revenue.
HR Consulting vs. Internal HR Resources: Cost Comparison
As a business owner, handling HR yourself is inefficient and can prove to be detrimental to your business.
HR takes up a lot of your time, time that you can spend on more important tasks. 45% of small business owners spend about one day a week on HR administrative tasks. The time costs are even worse if you choose to get one of your employees to take on HR tasks in addition to their regular full-time role. Not only does this divide their attention, affecting the quality of their work, but it also affects their overall employee satisfaction, which may lead them to resign – and leave you with two positions to fill!
That’s why it’s important to have one dedicated individual or organisation to take care of all your HR needs. However, the question remains: should you hire an in-house HR professional or enlist the help of an HR consultant? If overall cost savings are the main point of concern for your business, choosing to outsource to an HR consulting service will deliver results.
To illustrate how much HR consulting truly saves you, let’s compare the cost of hiring an in-house employee to hiring a consultant.
Let’s say you run a small construction business, and you need an HR professional to manage your employees and ensure that your HR practices are up to compliance. The type of HR professional you would need depends on the level of human resources management required.
Here are the annual salaries of a few different types of HR professionals:
- Entry-level HR graduate: $75,000 per year
- Mid-level HR advisor: $85,000 to $115,000 per year
- Experienced HR manager: $115,000 to $165,000 per year
- Senior HR manager: $180,000 to $200,000 per year
These costs are just for your new employee’s salary and don’t include costs such as superannuation or overhead costs, such as:
What’s more, is that the higher up you go in HR seniority, the higher the chances that your HR professional needs the help of a dedicated team of other HR specialists, resulting in more salaries and significantly higher costs.
In contrast, an HR consultant is not an employee, meaning you won’t have the typical overhead costs associated with employment. But even greater cost savings are seen in that the cost of a robust and engaged HR consulting firm costs a fraction of the amount that even an entry-level, full-time employee does.
Let’s take HR on Hand and use our annual subscription option as an example.
Our annual subscription package includes a variety of professional services to manage your HR needs, keep your people happy, and ensure that you remain HR compliant. Our services include:
- A one-page annual HR plan
- Annual HR priorities list and implementation support
- Email, phone, and Google Meet support during business hours
- HR compliance audit
- Training and coaching of managers
- Access to over 250 HR legal documents and custom-tailored tools
- Up to 15 hours per month of HR Business Partner support
- And much more!
How much does this all cost? Receive these features, and the benefits associated with them, for a total of $14,995 plus GST, which averages out to be about $1250 per month. That’s about 20% of the cost of a full-time, entry-level human resource graduate.
If you don’t need such an extensive plan, you can also opt for our short-term contract, which ranges from $795 per 4 months to $1495 for 3 months, depending on the level of HR support you require. Finally, if you just need additional hands, contact us about our one-off HR consulting option to learn how much it can save you.
Conclusion: HR Consulting Is The Way To Go
HR consulting services are the best way to keep your business compliant and improve employee relations. If you’re looking for significant cost and time savings, then outsourcing your HR should be a top consideration.
Ready to engage with HR consulting and strengthen your human resource practices? Contact us for a free consultation today!