What is HR Consulting vs HR Outsourcing?

Common questions I get asked often are:

• What do Human Resources (HR) Consultants do?
• What is Human Resources Outsourcing?
• Is HR Consulting the same as HR Outsourcing?
• What are the Pros and Cons of HR Outsourcing?

I’ll break all this down in today’s blog!

What do Human Resources (HR) Consultants do?

HR consultants are professionals who provide expert advice and support to organizations on human resources-related matters. Most HR consultants advise businesses on items such as:

• Best practice when it comes to policies and procedures
• Guidance on employment law compliance
• How to resolve employee issues and risk management
• Guidance on benefits and compensation

Many HR consultants specialize in leadership development as it relates to the onboarding and training of new employees.

We at Expedition HR can help with all facets of HR, but we specialize in employee relations. It’s where our passion lies!

Employee relations is defined as the complex interactions and relationships between an employer and its employees. It encompasses the practices, policies, and procedures that organizations use to create a positive work environment and manage the relationships between management and employees. It covers issues related to employment law, such as discrimination, harassment, employee rights, and labor laws. A strong employee relations presence in an organization can help reduce the amount of employees issues that occur, reduce turnover rates, improve employee satisfaction, and ultimately increase productivity and profitability for the company overall.

Who Most Needs a Human Resources Consultant?

Companies of all sizes can benefit from the HR services of an HR Consultant or an HR Consulting Firm. They are often sought after by:

1. Small businesses or non-profit organizations looking to establish or improve their HR processes, systems, and human resources training.
2. Growing organizations that are expanding their workforce and need help with talent acquisition, performance management, and employee relations (such as learning how to deal with conflict at work).
3. Companies facing HR challenges such as high turnover, low employee morale, or compliance issues.
4. Organizations undergoing significant changes such as mergers, acquisitions, or reorganizations.
5. Companies in industries with complex HR regulations such as healthcare, finance, and technology.
6. Businesses looking to optimize HR processes and technology for improved efficiency and cost savings.

What is HR Outsourcing?

Human Resources Outsourcing refers to the practice of hiring an external company to manage some or all of an organization's human resources functions. In other words, HR outsourcing involves contracting with a third-party provider to handle tasks that would traditionally be performed in-house by an organization's HR department.
Typical HR functions that can be outsourced include:

• Payroll processing
• Benefits administration
• Recruitment and staffing
• Training and development
• Compliance and legal support
• Employee relations (and finding workplace conflict resolution strategies)
• Employee performance management

Is HR Consulting the same as HR Outsourcing?

No, HR consulting and HR outsourcing are not the same thing. While there may be some overlap between HR Consulting and HR Outsourcing services, they are fundamentally different in their approach and scope of services.

HR Consulting involves providing expert advice and guidance to organizations on a range of HR-related topics, such as organizational design, employee engagement, talent management, and performance management. HR consultants typically work with companies on a project basis or for a specific period of time to help them solve specific HR challenges or improve their overall HR function.

HR Outsourcing, on the other hand, involves contracting out some or all of the HR functions of an organization to an external service provider. The outsourced functions can include payroll, benefits administration, recruitment, and employee relations.

HR Outsourcing can help organizations reduce costs and improve efficiency by leveraging the expertise and resources of the service provider. The level of interaction with an outsourced HR provider can vary from a completely hands-off approach to some level of regular coordination/interaction.

We at Expedition HR provide an HR Subscription which can be deemed as HR Consulting to some and HR Outsourcing to others, as it has characteristics of both. Consider us like your off-site, on-call HR Director! Whenever an issue or HR question arises, we are just a phone call away to provide you with expert HR advice, HR resources, and guidance. We work with CEOs and COOs as well as Office Managers, Operations Directors, HR Managers and HR Administrators, depending on the size of the organization, to ensure they have the level of HR support they need at any time.

What are the Pros and Cons of HR Outsourcing?

PROS

• Reduces costs from hiring a full time HR employee
• Streamlines HR processes quickly
• Improves efficiency of the way things are handled when it comes to HR
• Enables companies to access specialized expertise and technology that may be otherwise difficult or too expensive to obtain in-house

CONS

• Loss of control over HR processes and data (depending on the level/scope of the outsourced function)
• Communication challenges (a good HR Consultant or HR Outsourcing company will maintain excellent communication with you – but some more than others)
• Potential risks to data security and privacy (primarily when handing sensitive payroll-related information)

It is essential to carefully evaluate which functions you are considering outsourcing. From there you will want to ensure you do your due diligence to identify a provider who is reputable and reliable and will fully meet your needs and expectations.