Human Resource Consulting Group 2 | Team 8. Agenda What is HR consulting? Global HR consulting companies Different HR functions outsourced by a company.

Human Resource Consulting

Group 2 | Team 8

Agenda

• What is HR consulting?

• Global HR consulting companies

• Different HR functions outsourced by a company

• Services across HR value chain

• Strategic HR consulting

• Future of HR consulting

What is HR Consulting?

HR consulting is a branch of management consulting that

focuses on the process of effectively utilizing personnel to

obtain the goals of an organization.

HR Consulting

Human Capital

Health & Benefits

M&A

Communication

Retirement

Outsourcing

Evolution of HR

Top global HR consultancy firms

Company Name Revenue No. of full-time HR consultants

Mercer $2.4 billion 9000

Deloitte $1.587 billion 8091

Watson Wyatt $1.39 billion 6300

Aon Consulting $1.28 billion 6500

PwC $1.1 billion 5350

Towers Perrin $1.027 billion 2090

Hewitt Associates $ 861.8 million 1700

Hay Group $ 389 million 1650

Segal Co. $ 180.2 million 800

HR functions outsourced by a company

• Compensation & Benefits• Payroll• Recruiting and Workforce planning• Learning / Development• Performance Effectiveness• Workforce Administration• Workforce Relations

HR value chain

Human Resource Planning

Human Resource

Acquisition

Compensation & Benefit Planning

Training, Education & Department

Workforce Management

Performance Management

Separation Management

1. Recruiting/Sourcing Strategy

• Mapping Business Strategy to HR Strategy

• Recruitment Planning and Roadmap

-Talent Demand & Supply Modeling and Analysis

• Company Brand As Perceived by Prospective Hires

• Cost Optimization For Sourcing

2. Compensation & Benefits

• Compensation and Benefits Benchmarking Study

• Compensation Structuring/Re-structuring

• Benefit or Variable Pay-Plan Designing, Structuring and Re-structuring

• Compensation and Benefits Scenario Modeling

- To analyze impact of pay variation on cost structure

3. Training/Education/Development

• Skills Map and Gap Analysis

• Benchmarking Studies

- Training and Development Benchmarking

• Learning Management System Design

• Career Development Program Designing

Employability Skills Map

Source: University of Kent

Gap analysis

Steps involved in Gap analysis

Formation of databaseIdentify gaps, training needs

Conduct an inventory of existing skills

Interviews, Focus groups meetings

Develop job profiles and Identify critical skills required

Review current position descriptions for future needs

Data Collection and Analysis

Employee competencies, critical skills

Identify the needed skills

Mission, business goals, procedures and processes in place

4. Workforce Management

• Strategic Workforce Planning

- Talent Supply Modeling – Demand Vs. Supply

• Global Grading System

- Global Job Evaluation Mapping – Levelling jobs across functions,

business units and countries

• Succession Planning

• Retention Planning

- Also includes Attrition Cost Modeler and Employee Engagement

Study

• Employee Satisfaction Study

5. Performance Management

• Cascading Alignment/Design

- Alignment of Personal and Business Goals

• Performance Measurement System

• KRA Design

Microsoft Office Word 97 - 2003 Document

6. Separation Management

• Separation Management System Design

• Exit Diagnostics

– Root Cause Analysis (Also includes Root Cause Modeler)

Strategic Human Resource Management

Strategic HRM addresses broad organizational issues relating to organizational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change

Need for Strategic HR Consulting

• People have become source of competitive advantage

• Integration of HR considerations with other physical, financial, and technological resources

• Smoothening change management process

• Succession planning

• Employee engagement for productivity increase

Steps in strategic HR Consulting

Follow-up and evaluation

Project implementation

Preparing action plans

Change management processes

Assessment of potential barriers to implementation

Communication of intentions and their rationale

Formulating strategy and spelling out its aims, cost and benefits

Rigorous Initial Analysis viz. SWOT and PESTEL

Future of HR Consulting

• Rising importance of Human Resource Management

• Increasing Complexity in Human Resource Management

• Research and development in HR Practices by Consulting firms

• High demand of HR consulting services

Thank You