Marjorie Eisenach
and
associates, inc.
HUMAN RESOURCES MANAGEMENT SERVICES
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How to Hire a Human Resources Consultant
By Marjorie Eisenach and Julie Montour
Your company is growing and you know there are "people" issues that need your time and attention. You knew that there would come a time when you would need to hire an outside expert to assist with your human resource (HR) needs.
When should you hire a HR consultant? Of course, there isn't only one right time to hire a HR consultant. It depends on the answers to certain key questions impacting your business, such as:
- How rapidly do you need to hire more employees to grow the business?
- Are you retaining your best employees?
- How competitive are your benefits and compensation?
- Are you and your management team spending too much time and money handling employee-related issues?
- Do your employees have the skills and knowledge to remain competitive in your industry?
If your answers indicate that now is the time to consider outside HR expertise for additional HR support, read on.
How can a human resources consultant help a growing company? Experienced HR professionals can assist with your staffing process, benefits communication, employee relations and policies, compensation studies, management training, strategic planning and many other workplace issues. Consultants are typically hired to complete a specific project within a defined timeframe.
How can you be sure you're getting what you need from a HR consultant? Make sure that you define your needs clearly before you approach prospective consultants. Otherwise, they could offer you products or services you don't want or need. If you want to begin the process of hiring a HR consultant, here are 5 questions to consider:
Question 1 - Where do I find a HR consultant?
There are many sources to use when seeking consultants. Ask your trusted business advisors (accountant, attorney, banker, etc.), networking contacts through professional associations, and other business owners/peers. If all else fails to produce a list of recommended names, consult the yellow pages under "Human Resources".
Question 2 - How do I screen a HR consultant?
Begin by contacting HR consultants to assess their expertise in your specific areas of need. If you feel that a consultant is a good match for your company and the work to be done, set up a face-to-face meeting. During this meeting, ask the following questions:
- What is your experience in this area? (Hiring, benefits, compensation, attitude surveys, handbooks, etc.)
- How many different companies have you worked with where you have gained this experience? (Be cautious if the consultant has limited experience from only one company.)
- How will you accomplish this project? How long will it take?
- Who will actually be doing this work? (A subcontractor, an associate, or the consultant with whom you discussed your project.)
- Do you have references we can call where you have done similar work?
- What are your consulting fees and how are they based (hourly or project fee)? What will be the total cost for this project?
- Other questions to ask should focus on the consultant's availability, flexibility, and willingness to meet for periodic updates.
Be sure that you feel comfortable communicating with this person. If you find that your are seriously considering this consultant, ask for a letter summarizing the information that was discussed at the initial meeting as well as a list of 3 – 5 former clients as references for you to contact.
Question 3 - What questions do I ask of the references?
Be sure to contact references and ask about the consultants' experience, as well as results, level of commitment, attention to detail, flexibility, and overall professionalism. Conclude your call by asking if they would use the consultant again on future projects. Ultimately, you are seeking answers from these former clients regarding these two critical questions: 1) Will there be a cultural fit between this consultant and my business? and 2) Will the consultant deliver a quality product on time and within budget?
Question 4 - What can I expect from the consultant?
You should expect the consultant to keep you advised as to the status of the project in terms of time and deliverables. You should be able to contact the consultant (via e-mail, telephone, fax, etc.) and expect a prompt reply. You should expect the consultant to be punctual for meetings and project deadlines. Bottom line: you want to be kept informed so that there are no surprises with the consulting project.
Question 5 - What not to do?
Avoid a lengthy screening/hiring process because the consultant may not be available if you procrastinate. The consultant may see your lack of decision-making ability as a weakness and reconsider the opportunity. Also, be sure your expectations are clearly understood upfront. Additions to project scope don't come without a price. Be prepared to discuss scope changes and associated fees.
One quick way to evaluate consultants is to listen for the questions they are prepared to ask you. Warning alert—be sure to hit the brakes on going forward with a consultant if no questions are asked. Another alarm should ring if the consultant tries to hurry you into making a decision. And lastly, a consultant should know how to handle the unexpected. Ask a prospective HR consultant what he or she would do if you need to change something halfway through the project. The answer should tell you if this consultant is seeking to provide you with value-added service or merely a simple business transaction. If this person has never dealt with change in scope or focus, walk away.
Summary
HR consultants can provide an excellent way to gain short-term and part-time HR expertise when you want and need it. Our community has many HR professionals with extensive experience and business savvy who have left corporate America to "ride the new wave" as an independent business owner. Remember, HR consultants grow their business by referrals and will always appreciate your spreading a good word about their work.
If you follow this guide, you will be on your way to handling your project with a HR consultant ideally suited to your needs. You can make your business a better place to work and impact the bottom line by hiring top HR consultants to assist you with your human resource needs.
Marjorie Eisenach, M. E. & Associates, Inc.
Julie Montour, Integrated HR Services, Inc.
Printed in the February 2001 VENTURES For Growing Twin Cities Companies