Paper Trails

What are the benefits of HR consulting services?

Many small business owners struggle to juggle their daily business tasks with the administrative duties that come with owning a business.  They may be a great mechanic, chef or landscaper but they do not have the time needed to manage their payroll and HR responsibilities.  Having a dedicated in-house HR professional can help in this regard, but even a full-time HR employee may need additional assistance at times.  That is where HR consulting services come into play.  This route may not be right for every business, but there are many benefits of HR consulting services.

In this article, we will take a look at what HR consulting services entail and how they can benefit your small business.  At Paper Trails, we understand the daily challenges that small business owners and HR professionals, like you, can encounter.  We are a small business ourselves and strive to support and educate other small businesses across the nation.  By the time you finish reading, you will have a better understanding of HR consulting and how these services can impact your business.  Let’s get started.

What are HR consulting services?

HR consulting services involve outsourcing certain human resources tasks to a third-party expert.  These experts can handle certain tasks from start to finish or can assist your current HR team with certain functions within your company.  Generally speaking, HR consulting services are not meant to replace your current HR department.  It’s more about supporting your team to create and enhance policies and processes that your business implements.

Businesses must look at the HR resources that they have in place and weigh the pros and cons of having a third-party vendor assist in these areas.  While it can seem costly at times, HR consulting services can provide significant return on investment for many small businesses.  Let’s take a look at some of the benefits associated with these services.

What are the benefits of HR consulting services?

As with any business decision, the pros and cons must be considered.  Below, we lay out 5 of the benefits of using HR consulting services to enhance your business’ current practices.

Expertise and Guidance

Hiring an outside firm to provide HR services for your business means you typically gain access to HR professionals with a wide array of expertise over many years.  These professionals generally have spent years educating themselves in all things human resource management and have obtained certain certifications, such as SHRM Certified Professional (SHRM-CP) or a Certified Human Resources Professional (CHRP).

Small businesses often operate with limited HR resources, sometimes employing only one full-time or even just one part-time HR employee. While this individual may be skilled and dedicated to their role, their expertise can still be limited by factors such as experience level, scope of responsibilities, and exposure to different industries.  HR professionals can shed light from their previous experience across a range of industries and situations and can be especially helpful when it comes to more complex situations.

Labor Compliance

The regulatory landscape surrounding employment practices is constantly evolving, with new laws, regulations, and mandates emerging regularly at both the state and federal levels.  Supporting your business with HR consultants is a great way to keep up-to-date with these changes.

One of the most important parts of human resource professionals jobs is to be aware of the compliance challenges that businesses of different sizes are subject to.  Whether that be a retirement mandate in the state a business operates or laws that governing remote employees that work in different states, legislation can be a huge burden for small business owners and their teams.  By engaging HR consultants, small businesses can offload the burden of tracking regulatory changes and ensuring compliance. These consultants provide valuable guidance and assistance in developing policies, procedures, and training programs to keep your business on the right side of the law.

Recruiting and Hiring

A critical area of any HR department is attracting and retaining top talent for the business.  With about 3 out of every 4 employers having difficult finding qualified candidates for their open positions, the need for proper hiring procedures is crucial.  HR consultants can help with tasks such as crafting better job descriptions, placing job ads, scheduling interviews, conducting background checks and more.

Beyond that, these consultants can help your business retain its’ top employees.  Creating an employee onboarding process, thinking of employee engagement programs, preforming wage analysis and crafting enhanced benefit packages are a few of the things that outside consultants thrive at that help increase employee retention.

Access to Technology

Third-party HR consulting firms often have access to advanced technology that may be cost prohibitive to small businesses.  This technology often includes a wide array of tools designed to streamline HR processes, increase efficiency, and elevate the overall HR experience.  These tools allow employers and small HR teams to automate routine tasks such as employee onboarding, performance reviews, certification tracking and more.  Furthermore, technology can provide detailed data on every aspect of your business.  For companies looking at future growth, having access to technology that can assist in that growth is key.

Unbiased Support

When it comes to any aspect of a business, employers and even their employees may be biased about their business.  They may think that their current processes and policies are perfect.  Having an outside perspective can really help take your business from good to great.

Outside HR professionals will take a look at your business and provide unbiased input on the areas for improvement.  This can be particularly beneficial when it comes to sensitive HR tasks such as conflict resolution, performance reviews or organizational restructuring.  These consultants make recommendations based on merit and fairness rather than personal feelings or emotion.  Leveraging this unbiased support offers small businesses a valuable resource for navigating HR challenges with objectivity, expertise, and confidentiality.

benefits of HR consulting services

How much does a HR consulting service cost?

The cost of outsourcing certain HR management responsibilities to a third-party can vary greatly.  This cost will depend on many things like:

  • scope of work
  • length of the engagement
  • the customization your business needs
  • the expertise of the HR consultant

Many consultants have different options available.  They may charge an hourly fee, ranging anywhere from $100 to $400 per hour, for one-time projects.  These one-time project costs may vary significantly depending on duration of the project.   Another option may be a monthly retainer for ongoing support, anywhere from $500 to $5000 per month, depending on the scope of work required each month.

It is important for any business to look at the cost of their particular needs and weigh out the benefits of hiring consultants.  Employers should discuss pricing and payment structures with potential HR consultants upfront to ensure transparency and alignment with their expectations.   HR consulting services are never meant to replace your current HR employees, but rather educate and support them to take your HR practices to the next level.


Whether an employer currently has an HR team or not, HR consulting services offer a number of benefits that can positively impact businesses of all sizes. From expert guidance on HR issues to access to technology and tools, consultants bring a blend of expertise, objectivity, and innovation to the table. With the support of third-party HR, business owners can enhance their current HR practices, stay compliant, and improve hiring practices.  So, whether you’re a small startup or an established business, investing in HR consulting can be a decision that yields a positive long-term impact on your business and your employees.

Contact our team here to learn about the benefits of our HR consulting services.