Human resource consulting
Encyclopedia
Human resource consulting is an $18.4 billion industry that has emerged from management consulting
, as
clients' needs have become more complex and specialized, widening the gap between HR needs and work force capabilities, and thus accentuating the ability of HR management consulting firms to fill this gap. While the multi-faceted nature of business sometimes causes overlap in consulting industries (i.e., with regards to human resources
, general management
, and information technology
), the following are core fields around which most HR consultancies are based:
Services may also include legal counseling, global initiatives, investments consulting, and the implementation of HR technologies to facilitate human capital management. The HR consulting industry also employs more actuaries than any other in order to assist in their services.
($1.8 billion), Deloitte ($1.6 billion), Watson Wyatt
($1.4 billion), Aon ($1.3 billion), and PricewaterhouseCoopers
($1.1 billion). Other major players include Towers Watson
, Hewitt Associates
, Hay Group
, Ma Foi Randstad (part of the Dutch Randstad Holding
), and Buck Consultants
.
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
, as
clients' needs have become more complex and specialized, widening the gap between HR needs and work force capabilities, and thus accentuating the ability of HR management consulting firms to fill this gap. While the multi-faceted nature of business sometimes causes overlap in consulting industries (i.e., with regards to human resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
, general management
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
, and information technology
Information technology consulting
Information technology consulting is a field that focuses on advising businesses on how best to use information technology to meet their business objectives...
), the following are core fields around which most HR consultancies are based:
- Human CapitalHuman capitalHuman capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
, including remunerationRemunerationRemuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
(also called total rewards), employee rewards and incentive programs, and talent acquisition and management - Health & Benefits; i.e., orchestrating optimal employee health plans with the carriers themselves
- Mergers & Acquisitions, examining fit across culture, job-type, transaction costs, etc.
- Communication, including surveying employee attitudes, satisfaction, engagement, and other employee behaviors
- Retirement
- OutsourcingOutsourcingOutsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
Services may also include legal counseling, global initiatives, investments consulting, and the implementation of HR technologies to facilitate human capital management. The HR consulting industry also employs more actuaries than any other in order to assist in their services.
Companies in the field
HR consultancies vary in their ranges of services and sizes, with many consultants and academicians breaking off to form their own practices. A 2007 Workforce Management study identifies the top five revenue producing HR consultancies as Mercer ($2.4 billion), Ernst & YoungErnst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
($1.8 billion), Deloitte ($1.6 billion), Watson Wyatt
Watson Wyatt Worldwide
Watson Wyatt Worldwide, Inc. was a global consulting firm, which merged in January 2010 with Towers Perrin to form Towers Watson. The firm's services included managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension...
($1.4 billion), Aon ($1.3 billion), and PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
($1.1 billion). Other major players include Towers Watson
Towers Watson
Towers Watson is a global consulting firm. Its principal lines of business are risk management and human resource consulting. It also has strong actuarial, investment consulting, and reinsurance brokerage practices. The Towers Watson corporate offices are in New York, New York.Towers Watson was...
, Hewitt Associates
Hewitt Associates
Hewitt Associates , based in Lincolnshire, Illinois, United States was a global human resources outsourcing and consulting firm delivering a complete range of integrated services to help companies manage their total HR and employee costs, enhance HR services, and improve their workforces.Hewitt...
, Hay Group
Hay Group
Hay Group or The Hay Group is a global human resources management consulting firm headquartered in Philadelphia, with offices worldwide. It was founded in 1943 by Edward N. Hay. In 1984 the firm was purchased by Saatchi & Saatchi, but returned to private ownership in 1990 after a management...
, Ma Foi Randstad (part of the Dutch Randstad Holding
Randstad Holding
Randstad Holding N.V. is an international company offering temporary staffing and HR services. Randstad was founded in the Netherlands in 1960 by Frits Goldschmeding and operates in around 40 countries. In 2010, the company achieved a turnover of €14.2 billion and a net profit of €288.5 million...
), and Buck Consultants
Buck Consultants
Buck Consultants is a global employee benefits and human resource consulting firm.Buck provides its services through integrated practices in communication, compensation, global technology and delivery solutions, health and productivity, retirement, and talent and HR solutions.Buck is an independent...
.
Qualifications and certifications
Many human resource consultants have specialized qualifications or certifications, such as:- Accountancy: ACCAChartered Certified AccountantChartered Certified Accountant was historically seen as a British qualified accountant designation awarded by the Association of Chartered Certified Accountants . However, although ACCA is UK based, it is a global body for professional accountants with 147,000 qualified members and 424,000...
, CAChartered AccountantChartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...
, CPACertified Public AccountantCertified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
, CCAChartered Cost AccountantChartered Cost Accountant is a cost accounting or cost control professional designation offered by the American Academy of Financial Management. The CCA is a Graduate Post Nominal that is only available for accountants with an accredited degree, MBA, CPA, Chartered Accountant License, law degree,... - Actuarial: EAEnrolled ActuaryAn Enrolled Actuary is an actuary who has been licensed by a Joint Board of the Department of the Treasury and the Department of Labor to perform a variety of actuarial tasks required of pension plans in the United States by the Employee Retirement Income Security Act of 1974...
, ASASociety of ActuariesThe Society of Actuaries is a professional organization for actuaries based in North America. It was founded in 1949 as the merger of two major actuarial organizations in the United States: the Actuarial Society of America and the American Institute of Actuaries...
, FSASociety of ActuariesThe Society of Actuaries is a professional organization for actuaries based in North America. It was founded in 1949 as the merger of two major actuarial organizations in the United States: the Actuarial Society of America and the American Institute of Actuaries...
, MAAAAmerican Academy of ActuariesThe American Academy of Actuaries, also known as the “Academy” or the AAA, is the body that represents and unites United States actuaries in all practice areas...
, FIAInstitute of ActuariesThe Institute of Actuaries was one of the two professional which represented actuaries in the United Kingdom . The Institute was based in England, while the other body, the Faculty of Actuaries, was based in Scotland...
, FFAFaculty of ActuariesThe Faculty of Actuaries in Scotland was the professional body representing actuaries in Scotland. The Faculty of Actuaries was one of two actuarial bodies in the UK, the other was the Institute of Actuaries, which was a separate body in England, Wales and Northern Ireland... - Educational: MSMaster of ScienceA Master of Science is a postgraduate academic master's degree awarded by universities in many countries. The degree is typically studied for in the sciences including the social sciences.-Brazil, Argentina and Uruguay:...
in Management/HR/Industrial Organizational psychology, MBAMaster of Business AdministrationThe Master of Business Administration is a :master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...
, Ph.D.Doctor of PhilosophyDoctor of Philosophy, abbreviated as Ph.D., PhD, D.Phil., or DPhil , in English-speaking countries, is a postgraduate academic degree awarded by universities...
in Management, DBADoctor of Business AdministrationThe degree of Doctor of Business Administration, abbreviated, or and equivalent to , is a research doctorate in business administration. The D.B.A...
, J.D. - Finance: CFAChartered Financial AnalystThe Chartered Financial Analyst Program is a graduate level self-study program offered by the CFA Institute to investment and financial professionals...
- General consulting: CMCCertified Management ConsultantCertified management consultant is an international professional certification for management consulting professionals, awarded by institutes in 46 countries . The CMC enjoys global reciprocity; consultants certified in one country are recognized in most other countries...
- Health and benefits: CEBS, CBP,
- Compensation: CCP (Certified Compensation Professional)
- Human resources: Various certifications SHRM (US) CHRP (Canada) (e.g. PHRProfessional in Human ResourcesProfessional in Human Resources is an industry certification for people working in the human resource management profession. The certification, awarded by the Human Resource Certification Institute , signifies that individuals possess the theoretical knowledge and practical experience in human...
, SPHRProfessional in Human ResourcesProfessional in Human Resources is an industry certification for people working in the human resource management profession. The certification, awarded by the Human Resource Certification Institute , signifies that individuals possess the theoretical knowledge and practical experience in human...
, GPHR); MCIPD, PGDHR DHRDHRDHR may stand for:*Dlg homologous region in biochemistry;*Digital Hardcore Recordings — a record label based in London;*Darjeeling Himalayan Railway — a narrow gauge railway in India.*Dhr.; De Heer, Dutch for mister...