For small businesses, there are numerous advantages to hiring an outside consultant, the most important of which include having a positive impact on the company's bottom line. Human resources consulting services can be engaged on an hourly basis or hired on a contract basis to fill interim HR management positions. Either arrangement benefits your company based simply on the level of expertise the consultant brings to your organization. The benefits of an HR consultant are both tangible and intangible; however, the bottom line reflects the tangible advantages to engaging the services of an HR consultant.

Recruiting

An HR business consultant may not post job advertisements or sit in on candidate interviews, but she can advise you on what it takes to attract qualified applicants. Consultants whose specialty areas include recruitment and selection give small-business owners tips on the best recruitment strategies as well as how to make wise hiring decisions. Small businesses often cannot afford to waste resources on ineffective recruitment strategies; therefore, an HR consultant who can help you create a productive workforce can ultimately save your company thousands by minimizing your cost-per-hire.

Litigation

An HR consultant can assist you in handling employee relations matters, such as investigating informal and formal complaints file by employees alleging that your company has engaged in unfair employment practices. The advantage of having an external consultant is that it preserves the integrity of workplace investigations. In addition, an HR consultant who is specially trained to mediate workplace disputes can save exorbitant costs to litigate employment cases. HR consultants may also advise you on proactive measures to ensure employee satisfaction so that you mitigate future risks of liability concerning employee issues.

Expertise

HR consultants have to maintain their expertise to be valuable to their clients. Small-business owners who don't have a dedicated HR department within their companies benefit from an HR consultant who can provide guidance on the day-to-day operations. Even if there's an HR staff member in place, the HR consultant can advise him on HR functions that will sustain employee engagement and productivity. Most HR consultants work hard to continually upgrade their knowledge and expertise in HR best practices so they can market high-quality services to clients and ensure that their clients trust their advice and counsel.

Outsourcing

Many HR consultants are well-versed in the pros and cons of outsourcing HR functions. HR consultants may not perform the duties of an outsource provider, such as processing payroll or handling benefits administration. However, an HR consultant can help you decide whether to hire an outsource provider or help you weigh the benefits of one outsource provider over another. In the event your HR consultant does perform some of the HR functions your company needs, you save the expense of paying the salary and benefits of a full-time employee to handle personnel functions that are well within your consultant's purview.

Strategy

Strategic human capital development is an HR consultant's strength. There are two ways an HR consultant benefits your organization concerning the strategic direction of your HR functionality. Your HR staff benefits from the expertise that your HR consultant lends in coordinating the HR tactical functions. This frees the time your HR staff has to devote to designing and implementing your company's workforce planning. In addition, it gives small-business owners the ability to leave HR functions in capable hands while they dedicate their time and focus to overall business development.