EmploymentSource™ Newsletter May Edition 2012 Edition
The
economic conditions of the last several years have taken their toll on the
budgets of corporate America – especially the budgets of non-revenue producing areas
of the corporate world such as Human Resources. HR departments are increasingly
asked to do more with less and are doing so in the face of increasing
regulatory pressures while supporting a workforce that is changing and
experiencing new levels of stress itself. As organizations struggle to maintain
productivity and profitability with smaller workforces, making the best use of those
limited resources requires creativity and resourcefulness. Often the resources
and expertise needed to accomplish the goals of an organization are simply not
available internally and using an outside consultant is necessary.
The
selection of any external consultant can be a challenging process and this is
particularly true for human resource functions. The years of streamlining within
HR organizations have driven a large number of HR practitioners into the
consulting business. The bar for entry in the world of HR consulting, an $18.5
billion dollar business, is relatively low. HR consulting services are provided
by large multinational corporate giants, small boutique firms that specialize
in specific services (training, investigations, and organizational development
for example) and a host of individual consultants that provide a wide variety
of services.
The
variety and price range of services provided by HR consulting firms varies
greatly, and their marketing is often difficult to comprehend even though there
is an abundance of it - a quick Google search for “human resource consulting”
yields 25 million results! How can you determine if a particular consultant or
firm is going to solve your pressing problem? Do they really understand your
objectives, industry and culture? Do they have a successful track record of
providing the service successfully to other similar clients? Can they meet your deadline? Can they be
trusted? Would it be more effective to stretch skills and resources and provide
the service in-house? Will the need be
an on-going one or is it short term or process related?
While
navigating the human resource consulting world can be challenging, there are
concrete steps you can take to ensure that your search for the right consultant
or firm to address your specific need is successful.
- Assess the
need for a third party Not every
problem requires outside expertise. The issues that human resource
organizations face, however, are often perfect candidates for outside
assistance. For instance, you may have
day-to-day line management of your HR staff completely under control, but need
help rallying your operation’s supervisors to become better motivators. How do
you address that challenge? Can you articulate why a third party is needed and
quantify the cost/benefit analysis? In
this case, you may be seeking the breadth of experience brought by a consultant
with hundreds of clients who have faced similar challenges. You might choose to
use a third party to deliver compliance-related training to bring perspective
and credibility to the topic that an outsider often provides – sexual
harassment training for instance. Likewise, while you may conduct 95% of your
misconduct investigations in-house, if your executive vice president of HR is
the accused, you may find it beneficial to bring in an outside investigator for
neutrality, objectivity and with an eye to potential future litigation.
Understanding why you are searching for a consultant is as important as
knowing the specifics of the objective. The “why” often drives the choice of
consultant and will assist you in narrowing the candidates significantly.
- Clarify your
objective. Whether you are sorting
out the specifics of a number of employee benefit options or trying to train
every member of a 15,000 person staff on the intricacies and subtleties of the
principles of diversity during a two week time period, understanding your
intended outcome is imperative. Fuzzy objectives or objectives that change
mid-stream will not only frustrate a potential service provider (and waste your
time and money), but decrease the likelihood of success. Clear goals and
objectives will allow you to communicate effectively and with specificity with
potential vendors. In turn, clarity will help vendors provide you with better
information regarding their services and their ability to meet your objectives
and provide accurate estimates regarding the cost of their services.
- Know your
budget. The cost of HR consulting
services can vary tremendously. Before you begin to explore alternatives, know
your budget. Armed with common sense and concrete figures, you are better
prepared to request and sort through proposals and quotes. Communicate with
your vendors openly about the price range you believe is fair as those
parameters will often weed out consultants who are unable to work within your
budget. At times, your estimated budget may not reflect the market cost for the
services you need and in those circumstances it is especially important to be
realistic about your goals and what a consultant can accomplish within your
budgetary constraints. Budgetary frankness allows the vendor to be realistic
about what they can provide and assist you in understanding what can be
accomplished within the constraints – monetary or otherwise – that you provide.
Additionally, your flexibility with how the services are delivered may overcome
budgetary obstacles. For instance, a limited training budget may require
shorter classes or more employees per class, utilizing webcasts or on-line
training instead of live training. You may be able to rely on licensed
materials taught by in-house personnel. Once informed of your parameters, many
consulting companies will do their best to meet your needs while accommodating
your budget; however, this is impossible to do without the required information
regarding your budget expectations. Again, communication with a prospective
vendor is crucial to meeting your organization’s needs.