Why, How, and When to Hire an HR Consultant

Why, How, and When to Hire an HR Consultant

As a new small business owner, you may not have in-house HR. Now that you know what an HR consultant does (see our last blog) and that it can save you time and money, let’s delve into why you should hire one as soon as possible.

This blog will discuss why, how, and when to hire an HR consultant.

When to hire an hr consultant? Why do you need an HR consultant?

Even with an HR department, a consultant can advise you on HR functions that can maintain employee productivity and performance. Ineffective recruitment strategies can cost small businesses time and money. An HR consultant can advise you on how to attract suitable candidates.

Hiring human resources consultants reduces the cost of hiring individual employees, time, and resources to train and develop them in-house, retain the trained talent, and invest in HR-related technology and tools. This time, money, and effort can be better utilized in developing core business.

Benefits of hiring a HR consultant

  • Competencies. An outsourced HR Consultant can provide you with Leadership and Navigation, Ethical Practice, Business Acumen, Relationship Management, Consultation, Critical Evaluation, Global and Cultural Effectiveness, Communication, and HR Expertise (SHRM Competency Model, 2021).
  • Compliance. They can ensure your contracts are amenable and your employee handbook includes equal employment and non-discrimination laws, anti-harassment laws, and workers’ compensation laws (Square, 2021).
  • Urgent Response. They will ensure compliance with workplace safety and wellness. They will create a proactive set of plans, policies and procedures, so it is clear to everyone involved what is to be done in unexpected situations.
  • Time Management. They will assist in the coordination of tasks and activities to maximize the effectiveness of your team’s efforts. Enabling each employee to get more and better work done in less time. They may recommend software to help you track your team’s time and remain compliant.
  • Employee Development and Training. They will help your team develop and improve technical and soft skills and knowledge to do each job more efficiently, productively, or safely. They may help you create development plans for each employee, which supports and tracks their progression.
  • Performance Management. They will ensure that a set of activities and outputs meets an organization’s goals effectively and efficiently. They may focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks.
  • Recruitment/retention. They will help you identify, source, screen, shortlist, and interview candidates. They will also help you keep and sustain your employees. They will provide you with strategies and evidence-based plans.

How can an HR consultant specifically help my business?

They will assess specifically what your business’s needs are and create an action plan. HR consulting helps train and coach your employees to help them improve in specific areas and develop professionally. HR consulting can work with management to handle various HR issues, such as retention, recruitment, terminations, compliance, and performance management, and help improve daily operations, such as time management.

When to hire an HR Consultant?

Right away

You should hire an HR consultant as soon as your business allows, which for most small startups is whenever you have raised around 500K through fundraising. Many believe an HR consultant is essential before you even hire anyone else, as they can help you with the entire hiring strategy.

When revenue increases

When your revenue increases to over a million dollars, you may hire an internal human resources employee. You must ensure that you can hit all milestones in your business plan and work within a robust financial model.

Considering costs as you scale

Employees are expensive to hire and retain. But hiring and firing in the same position is much more expensive than retention, so retention is an essential goal for all employees you hire (independent contractors [IC] may be useful when a project has a known completion date, and the IC understands the probability of the work ending). If your employees are not bringing you an ROI within a set amount of time, an HR consultant can help you consider layoffs and devise a plan for better hiring in the future.

Scaling will be organic

Having an HR consultant will also help you as your business scales up because you will have someone on hand to help hire and onboard new employees as new work and/or new clients come in. They will help you in nearly every single stage of your business.

When NOT to hire an HR consultant

Hiring an expert full-time for your team can be very expensive, so as long as you have budgeted for HR consultant work, full-time or part-time, including their benefits if they are in-house, then you should definitely keep that HR consultant close.

Hiring an HR consultant is a good decision if you care about the growth of your business. Your people are your most important asset. Without them, you are doing everything yourself and will never be able to scale competitively.

Companies such as Startup Tandem offer outsourced HR solutions for startups and small businesses in various industries all over the country. Learn more about Startup Tandem and the Tandem Culture and give them a call for a free quote on services.

References

Society for Human Resources Management (2021, August 25). SHRM Competency Model. SHRM. Retrieved September 19, 2022, from https://shrm.org/learningandcareer/career/pages/shrm-competency-model.aspx
Square (2021, August 4). Employee handbooks – how to write one and what to include. Retrieved September 19, 2022, from https://squareup.com/us/en/townsquare/how-to-write-an-employee-handbook

How to hire an HR consultant

How to hire an HR consultant

As a new small business owner, you may not have in-house HR. In our previous posts, we have covered what an HR consultant does and why, how, and when to hire one. Let’s delve into HOW you should hire one as soon as possible.

This blog will discuss HOW to hire an HR consultant, with a complete list of interview questions and things to look for.

HR consultant for startups USAWhat makes a good HR consultant?

Excellent communication skills are essential for an HR Consultant. The ability to communicate, understand, empathize, and problem-solve with individuals from all levels in the company is imperative. People assessment skills are highly desired for this role.

What are the five roles of HR?

Human Resources manages five primary duties:

  • talent management,
  • compensation and employee benefits,
  • training and development,
  • compliance,
  • and workplace safety.

An HR department can help provide organizational structure and the ability to meet business needs by effectively managing the employee lifecycle.

Verify their HR service delivery model

HR service delivery is a term that explains how an organization’s human resources department offers services to and interacts with employees. Traditionally, human resources service delivery was as simple as an open door policy where employees could stop in, ask questions and pick up needed paperwork.

While that’s still in effect, trends are moving toward a fiercely proactive model, which includes strategy, purposeful implementation, increased capabilities, flawless and streamlined processes, a vision of the big picture, and using business partners when appropriate (Mercer, 2022).

Questions to ask your prospective HR consultant

  • How long have you done HR consulting work?
  • What kind of experience do you have?
  • How much of your experience has been in (the state your business is in)?
  • How much of your experience has been in a management-level position?
  • How do you keep up-to-date with changing HR laws?
  • How do you investigate and handle legal complaints, like sexual harassment or workplace discrimination?
  • How are our communications protected to remain confidential?
  • What HR tasks can you help me with?
  • What services do you not provide? Do you have referrals for those services?
  • Do you work onsite or remotely?
  • What do I need to provide for you?
  • What are your rates and payment options?
  • What happens if I disagree with your advice?
  • How often can I contact you to ask questions?
  • How quickly do you respond to questions?
  • How do you prefer to communicate with clients? (

Other considerations when hiring a HR consultant

  • The duties of an HR consultant.
  • Experience matters.
  • Find out details of their previous projects.
  • Focus on their area of expertise.
  • Assess how connected they are with the latest updates.
  • Set expectations to gauge their level of commitment.

 

Remember that this role is vital to your business, as your people ARE your business. Be sure to understand their roles and responsibilities, what skills make them good at what they do, their service delivery model, and other considerations like their level of expertise and ability to keep current. Communication and commitment are also hugely important.

Companies such as Startup Tandem offer outsourced HR solutions for startups and small businesses in various industries all over the country. Learn more about Startup Tandem and the Tandem Culture and give them a call for a free quote on services.

References

Emerzian Shankar Legal Inc. (2022, February 16). What questions should I ask an HR consultant? Emerzian Shankar Legal Inc. Retrieved September 26, 2022, from https://eslegalinc.com/what-questions-should-i-ask-an-hr-consultant/

Mercer (2022). It’s time for the next generation HR Service Delivery Model. Mercer. Retrieved September 26, 2022, from https://www.mercer.com/content/dam/mercer/attachments/global/Talent/Assess-BrochureHRAssessment.pdf

What services do human resources (HR) consultants provide?

What services do human resources (HR) consultants provide?

What services do human resouorces hr consultants provide

You may not have the time or money as a new small business owner to hire an in-house human resource person or department. That’s where human resource consultants come in and can provide you with the extra help you need. But what services do human resources (HR) consultants provide? Outsourcing by using a consultant instead of hiring in-house saves you time and money and potentially even saves you money on benefits premiums (e.g., employee retirement plans). This is because they are connected and they come with a plethora of experience.

HR consultants services“HR consulting is the practice of delivering all aspects of human resource management as an external provider” (SHRM, 2022). Human resources is extremely important in protecting your business against employee lawsuits and claims, like wrongful termination, harassment, retaliation, and discrimination. Additionally, HR helps you with compensation and benefits, recruitment/retention, hiring/firing, and keeping up to date with any laws that may affect the company and its employees.

Many small businesses wait until they are sued or need to fire someone to consult with an HR professional. This could be too late. If you haven’t hired an HR consultant yet, you should do so right away. A new business needs a professional HR consultant to develop the best strategies and policies for hiring and retaining talent. It’s also best practice to have policies and procedures, an employee handbook, payroll, compensation and benefits early on – to make communication and expectations very clear to employees. Even employee training and development is important early on to keep you competitive as an employer and to keep employees engaged. HR consultants can take care of all of these things – and more!

This blog will discuss the standard HR consulting’ services you can expect and what Startup Tandem does above and beyond.

Standard HR Consulting Services:

  • Developing, revising, and implementing HR policies and procedures.
  • Analyzing a company’s current HR programs and recommending solutions.
  • Writing or revising your company’s employee handbook.
  • Payroll processing.
  • Employee benefits administration.
  • Professional Recruiting Services.
  • HR Audit and Operational Review.
  • Compensation /benefits Strategy and Planning.
  • Employee Training Programs.
  • HR Strategy.
  • Succession Planning.
  • Leadership Development & Coaching.

Startup Tandem’s Human Resource Consultants Twist:

We heard your questions, so we will walk you through HR consultants’ services and what Startup Tandem does differently.

  • Recruiting – Once you are ready to hire internally, we will write clear descriptions and find, screen & hire talent for you. If you prefer coaching, we can guide you in completing these crucial steps yourself by creating a process specific to your company’s product, stage, needs and current employees.
  • Compliance – We will help you with payroll, HR policies, and systems, including employee handbooks, policies and procedures (P&Ps), and finding the best human resources information system (HRIS). We keep you up to date on federal and state equal employment and non-discrimination laws, anti-harassment laws, and workers’ compensation laws. See our recent blog on how to write an employee handbook here.
  • Retention – Once your talent is on board, we will train them, grow them professionally, and succession plan when you know that key employees are moving on. We uncover what your employees’ motivations are and build on their specific needs, wants and appreciation at work languages.

Startup Tandem will help you with all the hard stuff, too

  • Layoffs/terminations – We provide strategies, conversation counseling, and guidance for your business. This will help you to support transitional employees and avoid wrongful termination. For an additional fee, we will terminate your employees for you, ensuring all legalities and taking out the emotion.
  • The Hard Stuff – We will ensure your contracts are valid and up-to-date and your HR investigations are unbiased. For an additional fee, we will conduct your investigations or write your contracts for you.
  • Onboarding – We provide checklists, mentorship programs, and other best practices tailored to your organization, from the new hire’s first engagement to the end of their introductory (probationary) period.
  • Culture & Leadership – We will help you build a culture where employees feel happy to work, using evidence-based culture and leadership programs specifically customized for your organization. The process starts with conflict, personality, strengths, and appreciation assessments that help individuals and groups discover themselves and work better together.
  • Compensation – We look at your budget and business strategy to analyze and advise on pay increases and recommend staying competitive with talent yet staying within your means. Additionally, we work with our CFO, financial advisory department, tax department, and financial analysis department to fit your employees and their compensation into your unique financial puzzle.
  • Benefits – We have licensed insurance agents that can write life & health insurance and retirement plan policies. We also consult on mandatory benefits and recommend discretionary benefits that keep employees thriving at work (according to the literature on job satisfaction and retention).

How Can Startup Tandem Human Resource Consultants Help?

Aside from tapping into any of the outsourced HR services mentioned above, we want you to know that Startup Tandem provides full-cycle services to startups with you from beginning to end.

Startup Tandem believes in using unique pricing structures that enable startups to receive valuable services for a fixed price (rather than billable hours).

Want to know more about what our human resource consultants provide? Get in touch now.

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References

SHRM. (2022, April 26). Introduction to Consulting. SHRM. Retrieved September 12, 2022, from https://www.shrm.org/ResourcesAndTools/tools-and-samples/toolkits/Pages/default.aspx

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