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While human resource departments carry out behind-the-scenes work, they play a vital role in the growth of a small business. Without an HR department, a business will fail to nurture its crucial resource, which will inhibit development. For small businesses, developing a robust human resources department may not be practical. However, you should not forego the benefits of a fully functional HR department. You can outsource your HR functions to an outside consultant or hire them on an hourly basis when you need assistance. Let us look at the benefits of hiring an HR consultant in small businesses.

Effective Recruitment of Top Talent

Recruiting top talent is a tedious and challenging process for most businesses. However, consultants with experience in recruitment can offer valuable tips for finding the best candidates for the vacancy. Businesses can also hire a consultant to develop a recruitment and selection strategy that makes it easy to find the best talents in the industry. The strategy often involves the determination of minimum qualifications for various positions and implementing the interview process. While your internal HR team can take care of recruitment, a consultant will ensure you have a productive team and reduce cost-per-hire. Some of the recruitment responsibilities that a consultant will handle include:

• Reviewing job descriptions for all positions.
• Designing job advertisements to attract suitable candidates.
• Screening candidates’ resumes.
• Taking part in the interview and selection process.
• Reviewing remuneration packages for selected candidates.
• Providing onboarding services.

Training and Development Expertise

If you want to avoid high turnover, you need to improve the skills of your employees through training and development. Unfortunately, small business owners do not have time to organise training sessions for employees regularly. However, a consultant can plan and execute tailored in-house training sessions for your employees and bring in other experts in the industry. All you have to do is approve major decisions about the training while the consultant takes care of everything. Consultants’ expertise is also invaluable in developing employees’ skills. They will determine the training topics and targetted skills for development. The training will boost motivation, increase employee satisfaction and improve retention.

Litigation and Compliance Management

If an employee files a complaint, you must investigate the complaints to ensure that your business did not engage in unfair employment practices. A consultant can take care of employee relations matters by handling the necessary investigations and providing a course of action. Using an outside consultant preserves the integrity of the process and gives the employees confidence that they will have a fair hearing. Instead of hiring an expensive mediator, an HR consultant can handle the mediation and ensure the parties involved reach a consensus. Consultants can also deal with employee disputes and recommend corrective measures. Besides, they can develop proactive measures that will mitigate future risks and liability arising from employee issues.

Apart from litigation, HR consultants will ensure you are compliant with your industry’s employment laws and regulations. That way, you can run your business without worrying about facing trouble with the law. In case of changes in legislation, they will update your policies to suit the industry standards.


When it is time to hire a dedicated human resource team for your business, a consultant can help you make outsourcing decisions. Some consultants do not perform essential human resource functions like payroll processing and employee benefits administrations. However, they will help you find the service you need and recommend cost-effective methods of handling your HR functions. You can go over the options available and the benefits of each. For instance, you can hire an in-house HR team to run the day-to-day HR functions or fully outsource. If you choose to outsource, they will help you weigh various outsourcing services and find the right fit for your company. When you want an in-house team, consultants will also assist in vetting candidates.

If the HR consultant provides all the human resource services, it will save your business the cost of hiring a full-time employee. Besides, they can closely assess the HR functions and develop customised strategies to improve them.

Comprehensive Performance Management

Small businesses must measure each employee’s contribution towards business goals and reward them based on performance. Comprehensive performance management will not only increase accountability but also motivate employees to perform better. If your business does not have a performance management system, a consultant will help you develop a tailored system that supports your business growth. Consultants will also coach your managers on communicating expectations to employees and setting individual goals for each employee.

Some of the aspects of performance management that consultants will handle include reviewing employee benefits and creating performance appraisal strategies focused on scaling your business. They will also create key performance indicators and benchmarks for measuring employee performance. With the performance management strategies, you can identify areas of improvement that will grow your business.

Strategy Development

HR consultants are experts in human capital development and can provide helpful strategies to guide your HR functions and grow your business. With a comprehensive plan for managing staff, a business can enjoy improved performance from employees. Highly motivated teams are likely to perform better and add value to the business. Besides, your business will not have high turnover rates. When experts handle strategy development, there is minimal chance of error, and you can trust that your HR functions are in capable hands. That means you can focus on other essential business tasks like product development and administrative functions.

Support and Outside Perspective on Business Challenges

When you focus on day-to-day operations, you can miss the loopholes in your people management processes that may be stagnating your business. An outside consultant will provide a fresh viewpoint and point out the areas in your HR functions that require improvement. An unbiased opinion and new perspective can unlock incredible opportunities for business growth. You will also receive expert advice and practical solutions to your business challenges. Consultants also provide support when you need a helping hand. For instance, when you are handling redundancies, they will ensure you are compliant with the existing litigation. If you need ongoing support during recruitment and performance appraisals, they provide valuable advice.

HR consultants can assist small businesses in navigating the internal HR policies and understand employment laws. Besides, with their experience working with a range of businesses, you will benefit from their extensive knowledge in human resource functions.

Since every business needs an HR specialist to deal with staff-related matters, HR consultants are cost-effective for small businesses. You do not have to pay a permanent salary since you can hire a consultant on-demand and reap the benefits of their expert services.