Companies must manage a thousand and one different elements of business operations if they're going to succeed. A big part of that workload centers around human resources (HR).

The challenge is tougher for small businesses, which may not have the budget to hire a team of people, or even one person, to manage HR.

That's where HR consulting comes in. It's a bit different from general business consulting. While both are valuable business solutions, HR consulting focuses on issues and processes affecting workforce management. The overall goal of HR consulting is to strengthen and maintain productivity and employee satisfaction. Business consulting, on the other hand, focuses on providing business optimization solutions like business analysis, financial management, and other operations that impact business growth.

Today's article will examine HR consulting, the small-business services it offers, and its role in organizational success.

The Role of HR Consulting in Small Businesses

There are several reasons why using an HR consultant can be a smart business strategy for small business success.

Cost-efficiency

Small organizations may have a difficult time finding the budget for a full-time HR employee. An HR consultant helps give these companies the business HR support they need to build and maintain their workforce that can be cost effective. Based on internal data and figures from the BLS Occupational Outlook Handbook,  an estimate that a 50-employee company could save $94,000 a year by outsourcing HR services.

Specialized HR business expertise

While business owners may know a great deal about their industry and entrepreneurship, they may not fully understand how to handle payroll processing, benefits administration, and HR administrative tasks. An HR consulting service provides highly skilled and specialized HR services for small business situations like these.

Flexibility

Things change. New markets open up, innovations arise, payroll tax rules may change. What works today can cause concerns in the next quarter. HR consulting helps organizations stay agile and navigate with internal and external changes that might swamp them if they had to rely on their own resources. For example, a company opening operations in a new state can receive HR guidance from a consultant rather than hiring an HR professional.

Goal alignment

Communication is essential for getting initiatives embraced and adopted. HR is an influential voice in connecting top management to everyday team members. An ASO can help facilitate communication, which can help everyone strive toward the common company goals.

Scalability

HR consulting solutions that boost employee engagement help drive business development and navigate growth. And when that growth occurs, it's easier to add services to a consulting contract than it is to find, hire, and train new HR staff. Seasonal businesses also can scale services more easily with a consultant than through hirings and separation.

Where Can I Go for HR Small Business Consulting?

Finding outside business support services may seem overwhelming at first. There are many options to consider. Let's look at the different types of HR consulting services that are available.

HR consulting firm

HR consulting firms advise companies on how to cover HR tasks more efficiently. They will study a small business's processes and practices and then recommend programs to help with HR, which helps business management and growth. These firms might also provide HR software services.

Professional services firm

For organizations needing specific areas of support, a professional services firm could be a sound choice. Yes, it offers HR consulting, but may also provide business planning, crisis management, business advisory services, IT support, and financial services for small businesses.

PEOs and ASOs

Professional employer organizations (PEOs) and administrative services organizations (ASOs) are two types of HR outsourcing companies. Both may offer consultants, in addition to HR outsourcing solutions, to help small businesses solve problems.

PEOs provides a more comprehensive HR outsourcing services including technology, payroll processing, benefits, risk mitigation, and HR administration. A PEO becomes the employer of record for payroll tax purposes for payroll paid through its platform. Your company retains all control of business strategy and decisions regarding your employees.

An ASO provides administrative support and services but is not the employer of record for payroll tax purposes. If you want to outsource HR, it can handle many day-to-day functions. An ASO typically offers service options business can pick and choose rather than a PEO comprehensive bundle of HR outsourcing services.

What Business Services Do HR Consultants Offer?

HR consulting services can serve a wide array of needs. All you need to do is decide on which specific services suit you and your budget. At one end of the spectrum, you have consultants who focus on one HR problem — for example, talent consulting — and consulting services that specialize in one type of organization — like nonprofits. At the other end, you have PEOs and their comprehensive HR outsourcing solutions for your HR needs. These also can provide consulting services and big-company benefits that small business can usually not be able to access on their own.

Let's look in greater detail at the services HR consultants offer.

Vision and business strategy

Many small businesses need guidance on strategic planning objectives like help with clarifying their company vision and formulating a workable business strategy. HR consultants can help a company with its mission and vision, by providing guidance on the important elements so the company can put them into action.

Leadership

Organizational leadership is a major component of business success. HR consultants can help:

• Assess a company's goals
• Provide business coaching, training, and development for current and future leaders
• Design a strategy that maintain team and role alignment

Talent consulting

It requires a multi-faceted approach to make sure a business has the talent it needs to thrive and grow. Consulting services in this area can include guidance on and/or administration of:

• Performance management
• Employee retention
• Workforce planning
• Compensation benchmarking
• Employee engagement to help retain talent

Culture and inclusion

As the fabric of a positive working environment, culture and inclusion can be refined by a consultant. Do you use rewards and recognition programs effectively? Do your business and its leaders exemplify the values and purpose you desire? Does your workplace culture need work? A consultant can help with these concerns. 

People analytics

Measuring performance and interpreting data is essential for knowing how a company is progressing. Consultants can help a company to gather, understand and use its HR data to improve its performance. ASOs and PEOs typically provide software services that can help with processes and centralize HR data. The accompanying dashboards, visualizations and reports help clients gain the insights needed for small business development.

Compensation benchmarking

Consultants often will be in a better position to know the compensation standards and trends for businesses of different sizes and in different industries. They can perform a detailed analysis of a client's compensation plans which helps small businesses get insight so that they can attract and keep high-quality talent.

Benefits

To many employees, health insurance, time off, and retirement options are almost as important as their pay. HR consultants can help small businesses analyze their options for offering access to employee benefits and/or provide recommendations to providers to help them look for benefits plans. At the other end of that spectrum, PEOs can provide access to benefits.

Payroll

Handling payroll can seem like a never-ending fight with a beast. It's tedious, time-consuming, and fraught with concerns about accuracy, compliance and things like the leap year payroll. Outsourcing payroll processing can help ease stress, optimize costs, reduce potential errors, and minimize the chances of your company potentially getting audited.

Compliance

Small business leaders can rely on experienced HR consultants to give specialized guidance on the daunting range of employment-related rules and regulations. Certain consultants may also support by providing expertise or process filings related to payroll taxes and benefits administration, while staying up to date on evolving employment-related rules and requirements.

Top HR Consulting Services for Small Businesses

HR consulting services come in many shapes and sizes. Consultants give you a way to help you so you can free up your time, scale smoothly, and maintain happy, productive employees. Their expertise can allow you to focus on business development.

TriNet’s HR consulting team brings 150 years of combined HR and talent consulting experience to the table. They work with companies to help assess complex HR situations and provide strategic efforts so you can customize HR initiatives. The result: Organizations are equipped to unite their strategy, people and culture to drive business transformation.

TriNet can support your HR needs, whether they are large or small. With multiple ways to connect, you and your employees have access to a responsive team, ready to help. TriNet’s HR experts can help guide you to an HR solution. Contact us to learn more today!