Rising need to manage and retain employees due to the growing business landscape drives the demand for HR consulting category

HR Consulting Category - Procurement Intelligence

The HR consulting category is expected to grow at a CAGR of 6.1% from 2023 to 2030. The growing businesses across the globe have changed the way HR consulting firms handle the human capital and HR functions of their clients. The rising need for talent management, diversity and inclusion, employee experience, and digital transformation is driving the category’s growth of category. With the changing employee management dynamics, human resource consulting firms are adapting and innovating their strategies to meet clients’ expectations.

The focus on providing solutions to a hybrid-working model is the most important trend that was quickly adopted by the consulting companies since 2021, following the pandemic. According to Alp Consulting’s 2022 report, 81% of businesses believe the hybrid model is the preferred working model. Allowing employees to opt for work from home has been on the rise, as it enables companies to cut down on operational costs. This has encouraged employees to work at ease, which has in turn resulted in HR consulting firms focusing on providing solutions that helps in keeping the workforce of the clients’ organizations connected.

Importance to The emphasis put on employees’ mental health has pushed services related to employee well-being to be the top priority for the service providers. End-use organizations are seeking solutions for employee leave policies not just limiting to sick leave policies but also wellness leaves. Companies such as Hindustan Unilever, Nestle India, and Godrej Group, and many other companies have adopted wellness leaves. Such companies are investing in mental health programs to support employees’ emotional needs. These programs include offerings such as stress management programs, and counseling services, and stress management programs. Such initiatives have encouraged service providers to provide services based on specific needs.

Along with employee well-being, companies such as BCG, Bain, and McKinsey are also encouraging their clients to hire employees of all kinds to make their workplaces’ workplaces inclusive and diverse. Additionally, human resource consulting firms are increasingly relying on AI for performing various human resource services such as candidate screening, onboarding, and data analytics.

Providing services for better employee experience including perceptions and interactions that employees have throughout their employment journey. As a result, service providers are focusing on designing and delivering services to create meaningful and positive employee experiences aligning with clients’ goals, vision, and values.

Services such as innovative performance management strategies are revolutionizing how the way HR consulting firms are helping help organizations retain their employees. One such approach involves services such as allocating resources to learning management, enabling employees to enhance essential skills and gain a deeper understanding of the company's values. By providing upskilling (enhancing existing skills) and reskilling (training for new roles) initiatives, employee training programs within the clients’ organization can provide their employees with professional aspirations, helping businesses to invest in their future effectively.

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HR Consulting Sourcing Intelligence Highlights

• Consulting firms with skilled HR professionals or technology have substantial bargaining power. Firms with specialized services also have some competitive edge over other general firms.

• Established HR consulting firms often have significant expertise and industry knowledge. New entrants can find it challenging to compete unless they offer unique services.

• The category is highly fragmented due to the presence of numerous players trying to differentiate themselves by providing different services. They also focus on implementing automation in the services they provide to sustain in the industry.

• Consultant salaries, hiring and training HR consultants, legal costs, IT and technology costs, and research, and marketing and advertising costs, are some of the costs incurred in providing services. Other costs include website design and development, travel expenses, and insurance.

HR Consulting Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the HR consulting category:

• Consultant Salaries

• Hiring and training Training HR Consultants

• Legal costs

• IT and technology Technology Costs

• Research, Marketing, and Advertising Costs

• Others

  • Website design Design and Development

  • Travel Expenses

  • Insurance

  • Others

Consultant salaries, hiring and training HR consultants, legal costs, and IT and technology costs form the largest cost components of the HR consulting category.

List of Key Suppliers in the HR Consulting Category

• Boston Consulting Group

• Bain & Company

• McKinsey & Company

• KPMG

• PWC

• EY

• Oliver Wyman

• Accenture

• Mercer

• Hewitt