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.
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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.
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.
List of Key Suppliers in the HR Consulting Category
• Boston Consulting Group
• Bain & Company
• McKinsey & Company
• KPMG
• PWC
• EY
• Oliver Wyman
• Accenture
• Mercer
• Hewitt
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HR Consulting Procurement Intelligence Report Scope
• HR Consulting Category Growth Rate: CAGR of 6.1% from 2023 to 2030
• Pricing Growth Outlook: 3% - 6% (Annually)
• Pricing Models: Value-based pricing, service-based pricing, competition-based pricing
• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria: Services provided, end-to-end services, project timeline, global reach, regulatory compliance, operational capabilities, quality measures, certifications, data privacy regulations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions