Human resource consulting consists of advisory and implementation activities related to the management of an organization’s human capital and the HR function. The service ranges from overarching work on the human capital strategy to the design and deployment of a compensation & benefits framework. Following are the major human resource consulting services:
Recruitment & selection
Learning & development
Compensation and benefits
Human Resources Information Systems (HRIS)
HR data and analytics
All these services can be categorized into two components based on the service offering. Software-based consulting service and manual consulting service. In most cases, large organizations are preferred to use the combination of software manual service. Hence, the procurement need for human resource consulting services is becoming very crucial.
The global HR consulting market is valued at USD 18 billion in 2020 and it is expected to grow at a CAGR of 12% from 2020 to 2025 as remote working practices are prompting small and medium companies to opt for the latest HR consulting services so that strategic decisions can be made efficiently. The software HR consulting segment is dominant over the manual HR consulting segment of the market with a revenue share of over 68% in 2020. North America is leading the HR consulting market with more than 30% market share followed by Europe and APAC.
The cost component of HR consulting services can be categorized into two major segments: the cost of HR consulting software development, and the salary of HR personnel in manual HR consulting services. Usually, software development and implementation cost are higher than appointing HR personnel to perform similar activities. Large-scale global organizations prefer to implement software solutions along with having a small team of HR personnel in specific regions. However smaller companies prefer to have a small HR team for HR consulting as they do not need to manage a large number of employees.
After the outbreak of Covid-19, many organizations are forced to work remotely. This affected the manual HR consulting services. As employees are working from home, the need for companies to manage them via manual HR consulting has decreased. Hence, many companies have started to reduce the team size of HR personnel and implement a software-based solution that can be controlled and managed by a small HR team.
Accenture, ADP, Inc., Cezanne HR Limited, Ceridian HCM Holding, Inc., IBM, Ultimate Kronos Group, Mercer LLC, NetSuite, Oracle, PwC, SAP SE, Talentsoft, UKG Inc., Workday are some of the key suppliers of HR consulting services. The HR consulting market feature a highly fragmented landscape with the top five players contributing less than 20% of the market share. Leading suppliers are pursuing various strategic initiatives including partnerships and collaborations, mergers & acquisitions, and new product development as part of the efforts to expand the customer base and gain a competitive edge over rivals. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
"The quality of research they have done for us has been excellent..."