HR Consulting Services

HR consulting provides strategic and tactical human resources support to businesses that lack internal HR expertise or need specialized help with complex HR matters.

Consultants assist with areas including HR strategy, compliance, employee relations, compensation and benefits, performance management, organizational development, and HR systems.

This serves small to mid-size companies without full HR departments, growing companies building HR functions, or established companies needing project-based HR expertise.

Successful HR consultants often specialize by company size, industry, or HR specialty (compensation, compliance, employee relations, organizational development).

The business model charges hourly rates typically $100-300+, project-based fees for initiatives like compensation studies or handbook development ($5,000-30,000+), or retainer relationships for ongoing fractional HR support ($3,000-12,000+ monthly).

Services include HR compliance audits and guidance, employee handbook development, job description creation, compensation and benefits analysis, performance management system design, employee relations guidance, investigation support, training and development, and HR technology selection.

Success requires broad HR knowledge across employment law, compensation, benefits, employee relations, and organizational development, staying current with employment regulations, business acumen to align HR with business goals, strong communication and interpersonal skills, and often HR certifications like PHR, SPHR, or SHRM-CP/SCP.

Most successful consultants come from HR leadership roles.

Projects involve HR assessments, policy and procedure development, compensation market analysis, designing HR programs and systems, investigating employee complaints, and supporting organizational changes.

Marketing emphasizes preventing employment claims, attracting and retaining talent, building positive cultures, and compliance expertise.

Target markets include growing companies hiring their first HR person, companies in industries with complex regulations, and organizations facing HR challenges.

The business offers good margins and flexibility serving multiple clients.

Challenges include wide-ranging HR knowledge required, keeping current with employment law changes, liability for compliance advice, managing varied client needs, and competition from PEOs and HR software.

Some consultants expand to executive coaching or organizational development consulting.