Do you want to be a great employer that people love to work for?
Even if you already have a great relationship with your employees, there’s always room for improvement. After all, for small businesses, effectively managing relationships with employees is critical to continued success and future growth. By doing everything you can to become a better employer to work for, you can help your employees feel invested in your business and want to work to see it succeed.
That’s where human resources (HR) comes in, the arm of a business that leads the charge on hiring and training employees, as well as managing payroll and benefits. You may not have a full-blown HR representative or department, but you still carry out these important tasks to onboard employees and give them the tools they need to thrive in their roles.
However, as a small business owner, you already have a lot on your plate. Sometimes, you can’t handle all the aspects of HR on your own. Or, perhaps you get too zoomed in on the detailed problems in your strategy, preventing you from taking a step back and understanding how to holistically and sustainably fix them.
To help with these issues, you should try working with an HR consultant. These experts can take an objective look at your current HR management strategies and needs to help you create a plan to improve the work experience at your business.
In this post, we’ll dive into the world of HR consulting firms for small businesses, pointing you toward our recommended firms and giving you a quick guide on how to get started with your own HR consultant.
Here’s what we’ll cover:
- 20+ Top HR Consulting Firms
- Frequently Asked Questions About Consulting Firms
- 7 Steps for Hiring an HR Consulting Firm for Your Small Business
Being a better employer means building out a stronger framework for how you manage every part of the employee experience, from recruiting to exit interviews. You can rely on an HR consultant to help you design a sustainable framework that will set you up for growth and better employee relationships.
Let’s jump right in!
20+ Top HR Consulting Firms
First, let’s walk through the leading experts who provide HR consulting for small businesses. These top picks include both traditional consulting firms, outsourced HR services, and web-based HR tools, so this list can give you a good sense of which solution will best meet your business’s needs.
- Astron Solutions: Best Full-Service HR Consulting Firm
- RealHR Solutions: Best for HR Audits and Assessments
- Bambee: Best for Small Businesses on a Budget
- Active Strategy: Best for Team Development
- Remedy Intelligent Staffing: Best for Recruitment
- Alliant: Best for Benefits Solutions
- SevenStar HR: Best for Engagement Strategy
- HR Works: Best for Affirmative Action Planning
- Employera: Best for Employer Branding
- Jumpstart HR: Best for HR Coaching
- Employers Advantage: Best for Handbook Development
- Zenefits: Best for Streamlined Onboarding
- Personnel Planners: Best for Unemployment Management
- Gusto: Best for Payroll Support
- Sequoia: Best for Tech Startups
- Vensure: Best for Custom Packages
- East Tenth Group: Best for Leadership Development
- Infusive Solutions: Best for Tech Recruitment
- Ahead HR: Best for 401K Administration
- HR OnTheMove: Best for Outsourced HR
- Inspire Human Resources: Best for Talent Management
Use the list above to jump to a particular entry, or browse along from the top. Let’s get started:
1. Astron Solutions: Best Full-Service HR Consulting Firm for Small Businesses
Overview of this HR Consulting Firm for Small Businesses
Astron Solutions is a full-service HR consulting firm whose approach is ideal for small businesses. With over 20 years of experience working with businesses and nonprofit organizations across a wide variety of sectors and contexts, we understand that no two organizations are alike, and we can develop a tailored approach just for you.
We’ve found that a flexible, customized approach will always be the best move when it comes to developing new human resources processes and solutions. At Astron Solutions, we believe in working closely with your team to create the best plan for your business.
Astron Solutions’ expertise and industry insights around compensation, retention, and engagement (and the complex ways in which they interact) will only help your organization and build a stronger HR foundation for growth.
Astron Solutions’ Top HR Services
Astron Solutions offers a full range of human resources consulting services, including:
- Full human resources consulting, customized to address the particular needs, challenges, and goals of each business
- Total rewards compensation consulting, including executive compensation and strategy development
- Custom compensation and HR survey development, execution, and analysis
- Policy development guidance to help effectively administer any new programs or changes in HR in response to current events
- The Flare® Talent Management Suite, a cloud-based platform to streamline your HR processes
Main Takeaway
With a fully-customized approach to each client’s unique needs and human resources goals (plus over 20 years of experience in the space!), our services are an ideal choice for any small business or growing organization.
2. RealHR Solutions: Best for HR Audits and Assessments
Overview of this HR Consulting Firm for Small Businesses
RealHR Solutions has been helping both for-profit and nonprofit organizations streamline their HR strategies since 2005. This firm offers a wide variety of services to organizations without fully-functioning HR departments, but this team is especially well-known for its HR audits and assessments.
Through these processes, the experts at RealHR can help your business evaluate its existing HR policies and identify its priorities and needs for new and improved policies and practices.
RealHR Solutions’ Top HR Services
On top of audits and assessments, RealHR Solutions offers these services, too:
- Set-up services to build an initial HR infrastructure
- Recruitment assistance, including executive search, general strategies and practices, and training for selection and hiring practices
- Employee handbook review and customized updates
Main Takeaway
RealHR Solutions is an HR consulting firm that can meet you and your small business where it’s at. They’ll create custom-tailored solutions just for your small business, whether you’re just starting out or need to revamp your current strategies!
3. Bambee: Best HR Consulting Firm for Small Businesses on a Budget
Overview of this HR Consulting Firm for Small Businesses
Bambee offers remote HR support for growing businesses that can’t afford to hire their own dedicated, in-house team just yet.
Its full range of basic HR services and its very approachable price point ($99/month) makes it a great supplementary option for growing businesses. Remember, when it comes to HR compliance, it’s rarely a good idea to handle it completely on your own.
Bambee’s Top HR Services
Bambee offers remote support in a number of HR areas, including:
- HR policy development, implementation, and management
- Compliant employee onboarding and termination support
- Coaching and guidance from a dedicated HR expert
- Full guidance on labor regulations and compliance
Main Takeaway
Bambee’s motto is “HR policy shouldn’t be left to Google,” and we couldn’t agree more! With affordable, remote HR support available from providers like Bambee, even the smallest of businesses can rest assured knowing their policies are fully compliant.
4. Active Strategy: Best HR Consulting Firm for Team Development
Overview of this HR Consulting Firm for Small Businesses
Active Strategy is a leading HR consulting firm focused on team building and leadership development for businesses of all sizes. As a company grows, fostering growth and leadership from within is probably one of the most effective investments to make for its long-term success.
Active Strategy’s customized coaching services could be the perfect way to boost your organization’s team spirit or refine your management’s skill sets.
Active Strategy’s Top HR Services
Active Strategy focuses on a core set of HR services:
- Leadership development and training to enhance employee satisfaction, delegation skills, and team efficiency
- Career coaching to invest even more personalized training and support for your company’s key players
Main Takeaway
Supporting and developing the human aspect of your business is one of the most important functions of any HR department! Active Strategy’s personalized services are perfect for businesses that want to seriously invest in their teams’ development and comradery.
5. Remedy Intelligent Staffing: Best HR Consulting Firm for Recruitment
Overview of this HR Consulting Firm for Small Businesses
Supporting recruitment or hiring is an essential human resources function, and Remedy Intelligent Staffing stands out as a leader in the space for small businesses. They place equal value on assessing skills, behavior, and integrity to give you a complete view of your candidates.
With unique screening technologies and a proven approach, this consulting firm can provide the recruitment resources your team needs to grow smarter than ever.
Remedy Intelligent Staffing’s Top HR Services
Remedy Intelligent Staffing can support your recruitment goals with the following services:
- Candidate screening services, including skills-based and behavioral assessments
- Staffing services drawing from a pool of top talent
- Workforce management, specializing in high-volume and seasonal sectors
Main Takeaway
Recruitment is one of the central tasks of an HR professional. Working with experts to learn the ropes of candidate screening is always a smart move for growing businesses that want to find the best talent.
6. Alliant: Best HR Consulting Firm for Benefits Solutions
Overview of this HR Consulting Firm for Small Businesses
Alliant is a leading HR consulting firm focused solely on helping businesses develop, refine, and manage their benefits packages.
The benefits that your small business provides employees are a crucial element of their overall compensation, which is what we call the total rewards that you offer. Striking the right balance of benefits, workplace atmosphere, and direct compensation can support your HR goals and fuel new levels of engagement and retention across your team.
Alliant’s Top HR Services
Alliant offers a number of specific services under the broader umbrella of benefits solution design:
- General benefits strategy and implementation
- Health, wellness, and productivity-focused strategy development
- Industry benefits benchmarking for your company’s sector and size
- Benefits compliance and absence, disability, and life insurance support
Main Takeaway
Offering your employees a supportive array of benefits will generate stronger engagement and long-term success for your business. If you’re a new employer, though, navigating all the benefits options and compliance requirements can be a challenge without expert help from a firm like Alliant.
7. SevenStar HR: Best HR Consulting Firm for Engagement Strategy
Overview of this HR Consulting Firm for Small Businesses
Keeping employees highly engaged with their work is essential, especially for smaller teams. HR consulting firm SevenStar HR specializes in developing customized employee engagement strategies for businesses of all sizes.
With their “Five Cs” approach (in which employee engagement is gauged on whether or not they’re consistent, cooperative, committed, conscientious, and curious), this firm can help you create an actionable strategy for strengthening your team and deepening engagement across the board.
SevenStar HR’s Top HR Services
SevenStar HR focuses their offerings largely around helping businesses boost their employee engagement:
- Engagement assessments and strategy development to improve or maintain levels
- Compliance review and corrective plan development
- Training programs, including communication, anti-harassment and -discrimination, and leadership
Main Takeaway
Stable employee engagement is a prerequisite for success, especially if your team is small and works very closely together. Guidance, training, and strategy development might be the right move if your business is growing and you want to ensure that your engagement rates stay healthy.
8. HR Works: Best HR Consulting Firm for Affirmative Action Planning
Overview of this HR Consulting Firm for Small Businesses
Affirmative action compliance is a crucial concern for HR departments in some organizations and sectors. HR Works is a leading consulting firm that specializes in developing customized, long-term affirmative action plans for organizations of all sizes.
With over 25 years of experience in the field, this consulting firm is your best bet for complete compliance in a plan that your business can rely on over the long run.
HR Works’ Top HR Services
HR Works’ key services include:
- Affirmative action plan design and implementation
- OFCCP audit support and federal reporting
- Training and support for long-term affirmative action compliance
Main Takeaway
If your organization is required to comply with affirmative action requirements, you can put way too much on the line if you risk handling it on your own. Working with an experienced expert is the best way to ensure success.
9. Employera: Best HR Consulting Firm for Employer Branding
Overview of this HR Consulting Firm for Small Businesses
Employera understands that for some sectors, your brand and identity as an employer are everything when it comes to engagement and recruitment.
For many types of businesses today, developing a distinct, authentic employer brand is an essential part of success, and it can play a huge role in how quickly and sustainably you’re able to scale up your operations.
Employera’s Top HR Services
Employera’s key consultation services to support employer branding include:
- Brand assessment and strategy development
- Employer value proposition and messaging strategy
- PR strategy, support, and training
- Community engagement campaigns
Main Takeaway
A lot goes into how potential employees, current employees, and customers see your small business. Working with an HR consulting firm early in your brand development can give your team a leg up and an effective roadmap as you grow.
10. Jumpstart HR: Best HR Consulting Firm for HR Coaching
Overview of this HR Consulting Firm for Small Businesses
Whether you need a quick strategy adjustment or help to develop a long-term plan for your business’s human resources, Jumpstart HR is the perfect resource to support your existing HR professional or department.
Their customized packages can support nearly any issue or development challenge that your human resources department has been facing and lay out an actionable plan for moving forward.
Jumpstart HR’s Top HR Services
Jumpstart HR’s coaching and strategy development services include:
- Legal compliance support for brand new businesses
- Strategic administration HR services to ensure alignment with broader goals
- Leadership and culture development and coaching for management and HR leaders
Main Takeaway
HR is a broad category of operations, and the challenges your small business faces could take any number of forms. Flexible support from a consulting firm that can give you answers quickly is never a bad partner to have on your side.
11. Employers Advantage: Best HR Consulting Firm for Handbook Development
Overview of this HR Consulting Firm for Small Businesses
Employers Advantage is a leading HR service for employee handbook creation and company policy development.
Working with an expert to develop and standardize your first set of company policies will go a long way to create a stable HR foundation for continued growth down the line.
Employers Advantage’s Top HR Services
Employers Advantage offers a number of services centered around helping get your HR processes up and running, including:
- Custom employee handbook development
- Support for initial policy development and compliance
- Investigations and documentation of claims
Main Takeaway
Setting up your business’s first set of HR policies and procedures can be overwhelming. Firms like Employers Advantage specialize in simplifying what is otherwise an extremely complicated process.
12. Zenefits: Best HR Consulting Firm for Streamlined Onboarding
Overview of this HR Consulting Firm for Small Businesses
Your employee onboarding process sets the tone for the whole span of your engagement with that employee. Work with a leading platform like Zenefits to ensure that the tone you set is the right one that doesn’t waste an employee’s time or overwhelm them on their first day.
Small businesses increasingly turn to online platforms like this HR service because they offer some of the more affordable and scalable onboarding methods out there.
Zenefits’ Top HR Services
The onboarding features of the Zenefits platform include:
- Streamlined offer letter management, with included templates
- Self-onboarding for new hires, including digital W-4s and I-9s
- Automated onboarding workflows and other key employee events
- PTO management and tracking
Main Takeaway
As an online HR platform, Zenefits is a particularly good choice if your business has struggled in the past with offering new employees a streamlined, intuitive, and uncomplicated onboarding process.
13. Personnel Planners: Best HR Consulting Firm for Unemployment Management
Overview of this HR Consulting Firm for Small Businesses
Planning ahead and developing a strategy for covering your business’s unemployment insurance and related needs is crucial. Personnel Planners is a top consulting firm to help your business and existing HR department develop actionable steps for handling insurance claims and audits.
No growing business should get derailed because of an entangling unemployment issue! Plan ahead, or at least call in expert help if you need it.
Personnel Planners’ Top HR Services
Personnel Planners’ top unemployment management services include:
- Supervisor training and pre-termination guidance
- Claims processing, hearing preparation, and representation
- Record maintenance and management with online tools
Main Takeaway
One mistake around how your business handles a termination or prepares its unemployment strategies can put a serious hold on your growth. Working with an expert guide before or during any issues that arise is a smart move.
14. Gusto: Best HR Consulting Firm for Payroll Support
Overview of this HR Consulting Firm for Small Businesses
Gusto is a leading online HR platform designed to help small businesses easily outsource their core HR functions.
Payroll is probably one of the most important tasks that HR departments handle, so an automated online tool for payroll has to be up to par. Gusto leads the pack with its intuitive features and easy-to-use design.
Gusto’s Top HR Services
The Gusto platform contains a number of key payroll features, including:
- Complete automation of payroll, including filing payroll taxes
- Comprehensive support and personalized payroll guidance
- Included benefits management and time tracking features
Main Takeaway
Gusto makes it incredibly easy for small businesses to get up and running with the most essential HR features quickly. It’s a smart choice for any growing organization.
15. Sequoia: Best HR Consulting Firm for Tech Startups
Overview of this HR Consulting Firm for Small Businesses
Consulting firms will often specialize in a very specific market where their insights and experience truly give them an edge. When it comes to HR development and support for rapidly growing tech startups, Sequoia leads the pack.
They understand that handling every HR task in-house can become extremely burdensome to companies that are quickly growing, and their services are geared towards supporting clients’ growth however possible.
Sequoia’s Top HR Services
Sequoia offers a full range of key HR services, including:
- Benefits package design and 401(k) management
- Risk management and compliance
- Health and wellbeing support and strategy
- Full HR outsourcing for growing organizations
Main Takeaway
As an organization grows, it becomes increasingly critical that it handles every key HR task properly. This is especially true once you surpass 50 employees. Sequoia tailors its services and approach specifically to firms that are rapidly approaching that benchmark and need stable HR support fast.
16. Vensure: Best HR Consulting Firm for Custom Packages
Overview of this HR Consulting Firm for Small Businesses
Sometimes, a small business has completely unique human resources needs. That’s where a consulting service like Vensure becomes particularly useful.
Vensure provides a full range of outsourced HR services, available in customizable packages and pre-configured for businesses of all different sizes.
Vensure’s Top HR Services
Vensure’s core HR services include:
- Scalable PEO services
- Full-service outsourced HR options
- Benefits and payroll management
- Risk management and compliance
Main Takeaway
Offering both preset and customizable packages of HR services make it easy for small businesses to quickly get set up with the essential functions they need. Vensure is a great option to consider for customized packages of HR tools.
17. East Tenth Group: Best HR Consulting Firm for Leadership Development
Overview of this HR Consulting Firm for Small Businesses
East Tenth Group is a top HR consulting service that helps small businesses in a number of areas and drives results. One of their specialties is leadership development.
They know that personal growth promotes business growth, and offers one-on-one, personalized leadership development programs. From tackling daily tasks to more long-term strategies, East Tenth Group works with clients to ensure their employees have the foundation to evolve.
East Tenth Group’s Top HR Services
East Tenth Group offers many top services, including:
- Creating an actionable plan and outlined strategy for new executives and leaders to ensure a strong start
- Providing insights, business guidance, and board advice to key decision makers
- Addressing specific team-related issues and helping leaders better identify and achieve objectives
Main Takeaway
With East Tenth Group’s guidance, small business leaders can be confident in their own decisions. Additionally, thanks to its dedicated leadership development programs, clients can better set the foundation for growth.
18. Infusive Solutions: Best HR Consulting Firm for Tech Recruitment
Overview of this HR Consulting Firm for Small Businesses
Infusive Solutions is a consulting service that is dedicated to serving the needs of the tech industry and helping companies recruit highly qualified candidates. Hiring is a big part of any business’s HR strategy, and Infusive Solutions is there to help.
With such a dedicated focus on the technology community, not only does Infusive Solutions work closely with clients to fill the gaps in their workforce and build cohesive teams, but they also understand the unique challenges that these employers face.
Infusive Solutions’ Top HR Services
Here are some of our favorite Infusive Solutions services:
- Access to a tech professional’s network with specialized skill sets
- Active and valuable communication throughout the recruiting and hiring process
- Flexible solutions and a customized approach to any unique issues and time-sensitive problems
Main Takeaway
Tech-centric industries face their own unique sets of challenges around HR and recruiting. A dedicated consulting service like Infusive Solutions is sure to give you a leg up during recruitment and other challenges.
19. Ahead HR: Best HR Consulting Firm for 401K Administration
Overview of this HR Consulting Firm for Small Businesses
401k administration is an essential part of any successful business’s HR strategy, and the best consulting firm to help with it is Ahead HR. With over 25 years of experience, Ahead HR provides custom help tailored to each of their client’s needs.
They know that a 401K plan is one of the best ways to increase your employees’ total compensation and express the value they create for your business. Work with Ahead HR to ensure your administration strategy is effective and promote employee retention.
Ahead HR’s Top HR Services
Ahead HR offers these great 401k consulting services:
- Assistance with client employee inquiries
- Acquisition and dissemination of 401k administration plan information
- Updated knowledge and research regarding investment options and providers
- 401k loan processing and Form 5500 filing
Main Takeaway
Providing your employees with a solid 401k plan is key to showing them that you’re prepared to support them for the long haul. Ahead HR is the best consultant to help growing businesses navigate these challenges and best serve their employees.
20. HR OnTheMove: Best HR Consulting Firm for Outsourced HR
Overview of This HR Consulting Firm for Small Businesses
HR OnTheMove is a consortium of business and management consultants with over 40 years of experience. This organization has experience with projects large and small and in a variety of industries, so they’re sure to be able to meet your business’s needs.
HR OnTheMove can work with your organization to supplement your current HR department on-site or provide remote, outsourced services. Their flexibility and level of experience make them an ideal partner for growing businesses whose needs can change quickly.
HR OnTheMove’s Top HR Services
HR OnTheMove offers a wide range of HR services, including:
- Full employee lifecycle help, including attracting and recruiting, onboarding, retention, and graceful exiting
- Workplace investigations
- Employee relations assistance and handbook development
Main Takeaway
The great thing about HR OnTheMove is that they’ll cater their approach to meet the needs of your business. Whether they’re stepping into a temporary staffing role at your office or meeting with you online to discuss your HR policies, they’ll be with you every step of the way!
21. Inspire Human Resources: Best HR Consulting Firm for Talent Management
Overview of This HR Consulting Firm for Small Businesses
Inspire Human Resources is made up of a team of 30+ HR experts that help organizations across the U.S. meet their challenges head-on. This firm stands out specifically for its talent management services and is committed to helping you guide your employees to exciting futures at your business.
They can assist you with your performance management process, coaching, and career pathing.
Inspire Human Resources’ Top HR Services
Inspire Human Resources also offers services in these areas:
- Talent acquisition, including job description help and onboarding optimization
- Total rewards compensation design and administration
- HR business partner services, helping you improve the entire employee experience
Main Takeaway
Inspire Human Resources knows that sometimes, your small business will need backup when it comes to HR management. They’ve got your back when it comes to talent management, whether you’re starting from scratch or just filling in the gaps.
Frequently Asked Questions About Consulting Firms
Now that you’ve explored our list of recommended consulting firms for small businesses, you likely still have a few questions about how to get started working with an HR consulting firm. In this section, we’ll answer a few frequently asked questions about HR consulting that will help you better understand how a consultant can help you and when you should start seeking out a partnership with a consultant.
What does human resources entail?
As a general category of operations at your business, human resources encompasses a very wide range of essential activities, touching on compliance, long-term strategic planning, and every part of the employee lifecycle.
Human resources management typically includes the following core responsibilities:
- Recruitment and onboarding/training
- Compensation, payroll, and benefits management
- Internal communications
- Retention and internal culture
- Employee development
- Labor relations and compliance
- Related record-keeping and documentation
- Remote work guidelines and support
- Support during economic and social challenges
The area of compliance can itself be a particularly complicated category to navigate on your own without extensive knowledge of the landscape.
Anti-discrimination laws, the Fair Labor Standards Act, the Family and Medical Leave Act, social security policies, OSHA requirements, and more are all essential areas of compliance that HR services can support.
In addition, it’s important to remember that a company’s culture and various internal policies all have a significant, combined impact on employee retention and engagement. Especially for growing businesses and start-ups, it can be very easy to lose sight of the bigger picture and risk derailing your team. For sustainable growth and team buy-in, a big-picture strategy managed by dedicated HR professionals or service providers will be key.
What are all my options for getting assistance with HR management?
There are a number of ways that a growing business can tackle the core HR functions listed previously:
- Hiring an in-house HR professional or team. This should be every business’s long-term goal. However, the resources needed to build out a new department are often prohibitive for small and growing organizations, at least in their first several years of operation.
- Working with a human resources consultant. A third-party HR expert can provide specialized support around the specific areas that your business needs help with. Hiring an expert is typically the best choice for long-term success. Consultants can also provide and configure talent management software to help your in-house HR team streamline its work.
- Outsourcing or contracting with an external HR service. This category includes a number of different options. You might hire a dedicated HR service to fully support your company remotely, or you could use web-based HR services to handle specific aspects, like payroll and benefits.
When seeking HR support, you should choose the option that will satisfy your business’s needs and prepare you for sustainable growth.
How much do HR consultants charge?
Small businesses have to be mindful of their bottom lines when seeking consulting services. Of course, the answer to this question will depend on the consulting firm you’re working for and the services your business needs. However, there are a few different ways a consulting firm might charge for its services, including:
- By the hour
- By the day or half-day
- By the project
- With a retainer
Every consulting firm is different, so be sure to be upfront about the budget you have to work with and the questions you have about pricing when speaking to a potential consultant.
When should a small business outsource its HR tasks?
Outsourcing your HR tasks by contracting an external service or hiring a consulting firm is typically a smart starting point for small businesses. The various areas of human resources management all need attention in order to build a sustainable, compliant company with an engaged team. However, there are a few pros and cons to be aware of when it comes to seeking outside support:
Benefits of hiring external HR support:
- Filling gaps: A consultant or HR service can complete essential tasks and provide resources and expertise that you don’t have in-house.
- Efficiency: External support can get essential HR work done faster and more correctly than an inexperienced internal team.
- Buy-in: Recommendations from third-party experts typically get more favorable buy-in from leadership than proposals from employees.
- Objectivity: A consultant will provide a more objective, external perspective when helping to identify issues and develop new strategies for your HR operations.
- Avoiding major risk: Professional, certified HR support will help you avoid the potential major legal risks of handling HR on your own incorrectly.
Potential drawbacks of outsourcing your HR functions:
- Costs: Working with a consultant can be a significant one-time expense, and using other services or software will be an even longer recurring cost. Plus, working with a consultant will require an ongoing investment of your time and input to be truly effective.
- Misalignment: A third-party expert or service might not fully understand your goals or sector. This often occurs to nonprofits looking for HR support.
- Potential risks: Your business is still liable for the legal implications of incorrect HR work, and web-based services always run the risk of hacks and privacy violations.
It’s very important to carefully talk through your goals, priorities, and concerns with any potential HR consultants or third-party services you might hire for your small business. We’ll cover this process in more depth in the next section.
7 Steps for Hiring an HR Consulting Firm for Your Small Business
If you’ve decided to hire an HR consulting firm or another HR service, there are a few important steps you should follow. This is especially true for smaller businesses that haven’t yet worked with a consultant or needed to make major arrangements with a third-party vendor. Follow this general outline of steps:
1. Define your needs.
Why do you need the services of an HR consultant? There’s likely a very specific issue that needs addressing or a gap in your current HR processes that needs resolving. Or you might simply not have any HR policies in place yet and need to develop some. Clearly defining your needs will focus on the scope of your engagement with a consultant and give them a better idea of your needs.
2. Discuss with stakeholders.
Make sure your whole leadership team is on board with hiring an HR consultant or external service. For small businesses, this might just be one or two people, but a unified understanding of your HR needs will still prevent confusion, wasted time, or pushback down the line once you’ve committed.
3. Outline your guidelines.
This means laying out in concrete terms what you expect from your engagement with a consultant or other third-party service. The most important guidelines to consider are the general budget, start date, and timeframe of the project. You’ll need these later when you begin reaching out to candidates.
4. Begin your research.
Start looking for candidates using resources like this article or asking peers in other organizations about their experiences with HR consulting. The SHRM vendor directory is a reliable and official resource for this step.
5. Draft a request for proposal (RFP) or request demos.
Put together a request for proposal (RFP) detailing your needs and specific guidelines. Check out the RFP template on our guide to hiring a compensation consultant for nonprofits for an example of what an effective RFP should contain. Your candidates will use this information to put together a customized strategy for your business.
If you’re considering using an external or web-based HR service, reach out to request demos and discuss your needs. Take careful notes on which services offer which features and functions.
6. Compare the candidates.
After submitting your RFP to a shortlist of candidates, carefully review their responses with your leadership team. Do any stand out as particularly well-suited to your needs? Reach out directly to discuss any additional questions you have, and begin comparing the candidates to one another.
7. Make your pick.
After thoroughly researching each candidate, checking in with their references, and reviewing their proposals (or demos of their web-based services), make your pick! One will likely stand out as the best bet. Remember that HR solutions and strategies require highly flexible and customized approaches, so avoid proposals that seem too one-size-fits-all.
Questions to Ask Your HR Consultant Candidates
Finally, let’s review some questions that may be useful to ask your potential consultants or other vendors. During the research, RFP, and comparison process, it’s essential that you gauge whether or not their services will be a good fit with your goals, team, and internal culture. Use this list of questions to start brainstorming your own:
- What’s your experience with this type of project or with this industry/sector?
- How have you flexibly adapted to unforeseen obstacles or roadblocks in the past?
- Who on your team will be assigned to work with us on this project?
- What does your current typical client look like?
- How long have you been in the business?
- What’s your projected timeline for this type of project?
- What separates you from other vendors we’re exploring?
- What are your standard or typical payment terms?
- Will you sign a non-disclosure agreement (NDA)?
Of course, remember to ask for references, as well. Direct testimonials and feedback from other businesses like yours can be some of the most useful information to have during the selection process.
Wrapping Up
Choosing and hiring an HR consultant for your small business is a major decision and a huge investment for continued growth. Whether you need to build out your first set of HR policies, get support for the HR essentials like payroll and benefits, audit your compliance status, or address a very specific HR issue that’s arisen, a consultant can help.
Keep familiarizing yourself with the space and researching top providers. For more, check out our other consulting resources for additional tips and strategies:
- Compensation Consulting: The Ultimate Guide (+ Top Firms!). Compensation, generally a subset of HR, is an extremely complex area to tackle on your own! Check out this comprehensive guide and list of firms that specialize in compensation.
- Nonprofit Human Resources: The Full Guide & Best Practices. Nonprofits have unique HR needs. Learn more in this guide.
- Working With a Nonprofit Human Resources Consultant: A Guide. In this guide, you’ll learn about the value nonprofits can tap into when working with a nonprofit HR consultant and how to get started hiring one.
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