HR CONSULTANT COMPANY

S.E.O-TANVEER SINGH
WHAT DOES CONSULTANT
DO?
• AN HR CONSULTANT IS AN INTEGRAL
ASSET TO ANY HR TEAM. THEY ARE
USUALLY RESPONSIBLE FOR ENSURING
AN ORGANISATION'S CAPITAL SERVES
THE BEST INTERESTS OF THE COMPANY
AND ADVISING ON A NUMBER OF ISSUES
INVOLVING A COMPANY'S WORKFORCE.
BREAKEVEN POINT
• ALL BUSINESSES HAVE A BREAK EVEN POINT,
THAT IS A POINT AT WHICH THE LEVEL OF
REVENUE IS EQUAL TO THE TOTAL EXPENSES OF
THE BUSINESS, RESULTING IN A ZERO PROFIT. A
SERVICE BUSINESS BREAK EVEN ANALYSIS CAN
BE UNDERTAKEN USING THE SAME METHODS
APPLIED TO BOTH MANUFACTURERS AND
RETAILERS BY APPLYING THE 
BREAK EVEN UNITS FORMULA.
 • FOR A RETAILER OR MANUFACTURER
THE BREAK EVEN CALCULATION IS
STRAIGHT FORWARD. FOR EXAMPLE,
IF A RETAILER OPERATES WITH FIXED
COSTS OF 10,000 AND SELLS A
PRODUCT COSTING 50 TO
CUSTOMERS AT A PRICE OF 100, THEN
CALCULATING THE UNITS NEEDED TO BREAK EVEN
 IS CALCULATED AS FOLLOWS.

THE BREAK • FC = TOTAL FIXED COSTS = 10,000

• SP = SELLING PRICE PER UNIT =
EVEN 100
• VC = VARIABLE COST PER UNIT = 50
•
• BREAKEVEN UNITS = FC / (SP - VC)
• BREAKEVEN UNITS = 10,000 / (100
– 50) = 200
 COMPLICATIONS OF
BREAK EVEN
• BOTH RETAILERS AND MANUFACTURERS HAVE A WELL DEFINED
PRODUCT WHICH THEY BUY OR MANUFACTURE AND THEN
SELL. AS WE HAVE SEEN ABOVE, WHEN USING THE BREAK EVEN
FORMULA THE BUSINESS DEFINES A UNIT AS THE PRODUCT
ITSELF.
• THE COMPLICATION IN CALCULATING A SERVICE BUSINESS
BREAK EVEN IS THAT THE BUSINESS DOES NOT TEND TO HAVE A
PHYSICAL PRODUCT TO SELL, AND FIRST NEEDS TO IDENTIFY
WHAT IT MEANS BUY A UNIT. FOR EXAMPLE, A CONSULTANCY
BUSINESS MIGHT BILL CUSTOMERS BY THE HOUR, A SALON
MIGHT CHARGE BY THE TREATMENT, AN EDUCATIONAL
BUSINESS SELLS COURSES, AND OTHER BUSINESSES MIGHT
HAVE A SET PRICE PER CUSTOMER OR CLIENT. IN EACH CASE
THE SERVICE BUSINESS IS SEEKING TO FIND OUT HOW MANY
UNITS (HOURS, TREATMENTS, COURSES, CUSTOMERS, CLIENTS
ETC.) IT NEEDS TO REACH BREAK EVEN.
GOAL OF HR CONSULTANT
• THE GOALS OF AN HR CONSULTANT IS TO
ASSIST IN HUMAN
RESOURCE MANAGEMENT,
AND PROVIDE THE NECESSARY SUPPORT
BY CREATING PROCESSES AND POLICY
DESIGNED TO IMPROVE PRODUCTIVITY,
EFFICIENCY, COMMUNICATION AND
EMPLOYEE MORALE.
 Professional HR Audit and Employee Handbook Compensation Consulti
Recruiting Services. Operational Review. and other Policy ng Strategy and

SERVICES
Development. Planning.

Employee Training Strategy & Professional Speaking. Succession Planning.

Programs. Organizational Planning.
ORGANIZATIONAL DEVELOPMENT

Forward-thinking
organizations are always
looking to the future. If develop your organizational define roles and
you're investing in your structure responsibilities
organization's future,
Randstad help.

develop training, tools, and create your employee design performance

processes handbook evaluations

create HR dashboards for implement group insurance

your team and retirement plans
POTENTIAL SCOPE
• WHEN PLANNING THE EFFICIENT ACQUISITION OF SUPPORT FOR
RESEARCH AND DEVELOPMENT ACTIVITIES, OUR EXPERTS CAN
SUPPORT YOUR PLANS IN THE FOLLOWING AREAS:
• POTENTIAL ANALYSIS, ANALYSIS OF CONDUCTED RESEARCH IN
ORDER TO IDENTIFY THE POSSIBILITY OF OBTAINING GRANTS OR
TAX EXEMPTIONS AND FURTHER OPPORTUNITIES FOR
IMPROVEMENT IN THIS AREA,
• DEVELOPMENT OF STRATEGIES TO APPLY FOR SUPPORT,
• PREPARATION OF APPLICATION DOCUMENTATION,
• SUPPORT IN CONTACTS AND NEGOTIATIONS WITH THE RELEVANT
INSTITUTIONS,
• COORDINATION OF COOPERATION WITH BUSINESS PARTNERS OR
RESEARCH UNITS,
• HELP IN THE PROPER SETTLEMENT OF THE AID RECEIVED AND
ADHERENCE TO REPORTING OBLIGATIONS,
• PROJECT MANAGEMENT AND FLOW OF INFORMATION,
• SUPPORT DURING THE INSPECTION OF GRANTED PUBLIC AID,
• ANALYSIS OF INCOME GENERATION PROJECTS CARRIED OUT BY
PUBLIC ENTITIES.
SCOPE
• THE TYPE OF CONSULTING WORK YOU
SPECIALIZE IN WILL AFFECT YOUR
CONSULTING FEES, AND THERE ARE TWO
GENERAL BUCKETS YOU CAN FALL INTO:
• STRATEGY CONSULTANTS FOCUS ON
HIGH-LEVEL BUSINESS OBJECTIVES AND
GROWTH STRATEGIES, AND CHANNEL
THEIR EFFORTS ON BEATING THE
COMPETITION.
• MANAGEMENT CONSULTANTS HONE IN
ON IMPROVING SPECIFIC BUSINESS
STRATEGIES AND SPECIALIZE IN
DISCIPLINES OR INDUSTRIES SUCH AS HR,
IT, OR HEALTH CARE.
 DETERMINE THE SERVICES
• THERE ARE A LOT OF THINGS TO KEEP IN MIND WHEN YOU CREATE YOUR CONSULTING RATE. IT CAN BE TRICKY TO BALANCE ALL OF THE FACTORS WE’VE OUTLINED
ABOVE, BUT THERE ARE A FEW STEPS YOU CAN FOLLOW TO ENSURE AN OPTIMAL PRICING STRUCTURE FOR YOU AND YOUR CLIENT.

• DETERMINE YOUR HOURLY RATE BASED ON YOUR EXPERIENCE AND INDUSTRY STANDARDS.
IF YOU’RE JUST STARTING A CONSULTING BUSINESS, THE BEST WAY TO DETERMINE YOUR RATE IS TO DIVIDE YOUR FORMER SALARY BY 52 WORK WEEKS AND
THEN DIVIDE THAT NUMBER BY 40 (THE NUMBER OF WORK HOURS IN A WEEK). THIS WILL GIVE YOU THE HOURLY RATE YOU WERE MAKING BEFORE. THEN DO
YOUR RESEARCH AND LOOK AT COMPETITOR PRICES TO SEE HOW YOU STACK UP. YOU USUALLY DON’T WANT TO SURPASS A 25-30 PERCENT MARKUP
(ACCORDING TO THE SBA).

• ESTIMATE THE TIME THAT WILL BE SPENT ON THE PROJECT.

DO SOME REAL THINKING ON HOW MUCH TIME YOU WILL SPEND ON A PROJECT. MAKE SURE TO ESTIMATE YOUR HOURS FOR EVERY STAGE OF THE PROJECT,
INCLUDING CLIENT ANALYSIS, RESEARCH, AND INTERVIEWS, AS WELL AS DRAFTING, EDITING, AND CREATING ANY TYPE OF PROPOSAL OR REPORT.

• FACTOR IN ADDITIONAL CONSULTING COSTS.

ON TOP OF WHAT YOU WILL CHARGE FOR YOUR TIME, YOU’LL WANT TO FACTOR IN ADDITIONAL COSTS THAT MAY ARISE WHILE YOU ARE WORKING FOR YOUR
CLIENT. IF YOU ARE SPENDING ANY MONEY ON MATERIALS OR TRANSPORT FOR THE PROJECT, YOU’LL WANT TO INCLUDE THOSE IN YOUR FEES. THINK
THROUGH LOGISTICAL COSTS, THE COST OF BUSINESS DISRUPTIONS, AND OTHER HIDDEN COSTS THAT MIGHT POP UP ALONG THE WAY.

• DECIDE ON A PRICING MODEL.

AFTER YOU’VE ESTIMATED THE TIME YOU’LL SPEND AND ANY ADDITIONAL COSTS, YOU NEED TO DECIDE HOW TO TRANSLATE THAT INTO A PRICING MODEL.
WILL YOU CHARGE BY THE HOUR, PER PROJECT, BY PERFORMANCE, OR WILL IT BE A COMBINATION? MAKE SURE YOU MAKE THIS DECISION BASED ON THE
PROJECT YOU’VE BEEN ASKED TO WORK ON, HOW YOUR CLIENT WORKS, AND THE STRUCTURE THAT YOU THINK WILL GET YOU FAIRLY COMPENSATED.

• CONSIDER RETAINERS.
ANOTHER WAY TO CONSIDER CHARGING YOUR CLIENT IS TO PROPOSE A RETAINER. A RETAINER IS A FEE PAID IN ADVANCE IN ORDER TO SECURE OR KEEP
SERVICES WHENEVER THEY’RE REQUIRED.
RETAINERS ARE OFTEN USED WITH ATTORNEYS BECAUSE THEIR SERVICES ARE NEEDED ON AN ONGOING BASIS. DEPENDING ON WHAT KIND OF PROJECTS A
MANAGEMENT CONSULTANT IS ASKED TO WORK ON, A RETAINER MAY BE APPROPRIATE.

• ONCE YOU’VE PUT TOGETHER CONSULTING FEES FOR ONE CLIENT, YOU SHOULD BE ABLE TO EASILY ADAPT THE FEE AND FEE STRUCTURE FOR NEW CLIENTS.
 DETERMINE THE MARKET

• THE MARKET FOR HUMAN RESOURCE CONSULTING SERVICES IS ESTIMATED TO BE

WORTH $31 BILLION, REPRESENTING APPROXIMATELY 10% OF THE TOTAL 
GLOBAL CONSULTING MARKET, MAKING IT THE SMALLEST OF THE SIX MAIN 
INDUSTRY SEGMENTS. DURING THE CRISIS YEARS, HR CONSULTING WAS ONE OF
THE CHIEF CASUALTIES WITHIN THE RECESSION OF THE CONSULTING INDUSTRY –
ACCORDING TO ANALYSTS, SPENDING ON HUMAN RESOURCE CONSULTING
CONTRACTED BY 10% OR MORE IN MATURE GEOGRAPHIES.
• SINCE 2011, GROWTH LEVELS IN THE MARKET HAVE BEEN RESTORED AND THE
REVENUE OF HR CONSULTING SERVICES HAS SEEN A RISE OF AROUND $1 BILLION
PER YEAR. ANNUAL GROWTH PERCENTAGES VARY BETWEEN 3.6% AND 4.5%, WITH
MOST RECENT YEARS SHOWING BETTER PERFORMANCES.
• IN THE COMING YEARS, SPENDING ON HR CONSULTANTS IS FORECASTED TO
CONTINUE TO GROW ON THE BACK OF LARGE TRENDS IN THE HUMAN CAPITAL
DOMAIN SUCH AS AN AGEING WORKFORCE, CONTINUED MISMATCH ON THE
LABOUR MARKET, THE RISING IMPACT OF DIVERSITY /INCLUSION AND THE NEED TO
BRING EMPLOYEE CAPACITIES IN LINE WITH 21ST CENTURY SKILL SETS.
 HR GUIDANCE TO
CANDIDATES
• HR ADVISORY SERVICES,
POWERED BY OUR COMPANY, ARE
THERE WHEN YOU NEED THEM,
SO YOU CAN ADDRESS LABOUR
AND HR ISSUES WHEN IT'S MOST
IMPORTANT. BE CONFIDENT
KNOWING YOUR HR DECISIONS
ARE MADE IN ACCORDANCE WITH
CURRENT EMPLOYMENT LAW,
HELPING YOU AVOID
POTENTIALLY COSTLY
CONSEQUENCES.
 Many job and competency projects fail because they
take too long to complete, or because they don’t
demonstrate real operational value to those
stakeholders whose engagement is needed to make
the project a success.

COMPETENC
Y LEVEL
In addition, traditional and inflexible consulting
methods may not suit your culture, time or budget
and too many onsite consultants can prove to be
expensive and obtrusive.
 GUIDE FOR HR
CONSULTANT
• DO YOU GET INSPIRED BY TAKING ON NEW CHALLENGES? OR DO
YOU LOVE THE SATISFACTION OF GUIDING OTHERS THROUGH SOME
OF THEIR STICKIEST PROBLEMS TO SOLVE? IT’S AN AWESOME
FEELING TO BE ABLE TO GIVE A FRESH PERSPECTIVE AND USE YOUR
EXPERTISE TO HELP AND GUIDE OTHERS—SO WHY NOT MAKE A
CAREER OF IT?
• FORTUNATELY FOR HUMAN RESOURCES (HR) PROFESSIONALS,
BECOMING AN HR CONSULTANT IS A CLEAR PATH INTO A ROLE THAT
WILL ALLOW YOU TO DO JUST THAT. IT COULD BE THE PERFECT
NEW DIRECTION YOU’VE BEEN SEEKING FOR YOUR CAREER.
• BUT BEFORE YOU QUIT YOUR DAY JOB, THERE’S A LOT TO KNOW
ABOUT GETTING STARTED IN HUMAN RESOURCES CONSULTING. WE
ENLISTED HR EXPERTS TO WEIGH IN ON WHAT YOU NEED TO
CONSIDER BEFORE MAKING THE SWITCH. HEAR THEIR INSIGHT AND
LEARN MORE ABOUT WHAT TO EXPECT FROM A CAREER AS AN HR
CONSULTANT.
EXPERIENCE AND
EDUCATION MATTERS • ORGANIZATIONS HIRE EXTERNAL HR CONSULTANTS TO
COVER GAPS IN EXPERTISE THEY MAY BE LACKING
INTERNALLY. EXPERTISE IS THE OPERATIVE WORD HERE—
YOU’LL NEED TO HAVE A STRONG KNOWLEDGE BASE TO EARN
CONSIDERATION FOR THE WORK.
• TYPICALLY, HR CONSULTANTS HAVE SEVERAL YEARS OF
EXPERIENCE IN THE FIELD AND AT LEAST A BACHELOR’S
DEGREE, WITH MANY EMPLOYERS PREFERRING CANDIDATES
WITH A MASTER’S DEGREE. IT’S IMPORTANT TO DO AN
HONEST SELF-EVALUATION BEFORE JUMPING INTO THE FIELD.
REVIEW YOUR RESUME AND EXPERIENCE AND ASK YOURSELF,
“IF THIS WERE A STRANGER’S RESUME, WOULD I TRUST THIS
PERSON TO MAKE IMPORTANT DECISIONS ABOUT MY
BUSINESS?”
• MATTHEW BURR, OWNER OF BURR CONSULTING, LLC, SAYS
HIS NINE YEARS OF HUMAN RESOURCES EXPERIENCE PRIOR
TO STARTING A CONSULTING BUSINESS HAS BEEN
INVALUABLE.
• “I WORKED IN VERY CHALLENGING ENVIRONMENTS IN MY
CAREER AND HAD TO MAKE HIGH-LEVEL DECISIONS FOR
DYNAMIC ORGANIZATIONS, BANKRUPT COMPANIES AND
UNION AND NON-UNION BUSINESSES ACROSS MULTIPLE
INDUSTRIES,” BURR EXPLAINS. “THAT EXPERIENCE IS THE
ONLY WAY I [HAVE BECOME] SUCCESSFUL AS A CONSULTANT.”
DO I HAVE A SOUND
BUSINESS PLAN?
•  MIGHT SOUND OBVIOUS, BUT PLENTY OF INDEPENDENT HR
CONSULTING FIRMS FAIL IN PART BECAUSE THEY LACK A
WELL-RESEARCHED BUSINESS PLAN. AS THE OLD MILITARY
ADAGE GOES, “PRIOR PLANNING PREVENTS POOR
PERFORMANCE,” SO TAKE THE TIME TO REALLY THINK IT OUT
BEFORE MAKING THE JUMP.
• AT A MINIMUM, CONSIDER THE FOLLOWING:
• WHAT IS MY TARGET MARKET?
• HOW WILL I POSITION MYSELF? DO I HAVE A UNIQUE SELLING
POINT?
• ARE THERE ENOUGH POTENTIAL CLIENTS IN MY CURRENT
AREA TO MAINTAIN A STEADY BUSINESS? IF NOT, WHAT ARE
MY PLANS FOR WORKING WITH NON-LOCAL CLIENTS?
• WHAT ARE MY OVERHEAD COSTS (OFFICE SPACE, SUPPLIES,
TRAVEL, TAXES, ETC.)?
• DO I KNOW HOW MUCH TO CHARGE FOR MY SERVICES? DOES
THIS FIGURE COMPARE WELL WITH COMPETITORS?
• HOW WILL I ATTRACT CLIENTS? HOW LONG CAN I SUSTAIN MY
WORK IF I FACE A LULL IN BUSINESS?
WHY HR CONSULTANT
IS IMPORTANT? • MINIMIZING RISK MANAGEMENT

OUTSOURCED HUMAN
RESOURCES CONSULTANTS
HELP BUSINESSES MINIMIZE
RISK. EMPLOYMENT LAWS
CHANGE REGULARLY AND IT
CAN BE DIFFICULT FOR
EMPLOYERS TO REMAIN UP-TO-
DATE ON REGULATIONS THAT
AFFECT THE WORKPLACE. IT IS
THE JOB OF HR CONSULTANTS
TO STAY ON TOP OF THESE LAWS
SO THAT YOU DON'T HAVE TO.