Human Resources Consulting Services Market Size, Share, Growth, And Industry Analysis, By Type (Compensation and Benefits Consulting, Human Resources Management Consulting, Actuarial Consulting, Strategic Consulting), By Application (Small Businesses, Medium-Sized Enterprise, Large Enterprise), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

Report Overview

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The global human resources consulting services market size was 37650 million in 2021. As per our research, the market is expected to reach USD 50780 million by 2028, exhibiting a CAGR of 4.3% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Human Resources Consulting Services provides advice and assistance to companies and other organizations on human resources and HR policies, employee benefits, compensation systems, payroll, recruitment and retention planning. The HR consulting services market consists of HR consulting services carried out by entities (organizations, sole proprietors and partnerships) that provide advice on human capital issues and/or proposals that revolve around the HR function. HR consulting services are generally used by two types of clients – those looking to improve their HR operations through HR process redesign and those undergoing changes such as mergers and acquisitions to ensure the training of new human capital.

The HR consulting services category is poised for an accelerated pace of consumption during the forecast period. An important part of this cost comes from the large-scale implementation of digital HR in various HR processes of companies. These processes can improve organizational efficiency and reduce costs. Of all the segments in the category, the share of talent management services in the total consumption of the category was about 30% last year, and their growth is continuously predicted. The growth is due to the increasing outsourcing of talent management and retention services to HR consulting firms, allowing buyers to focus on their core business.

COVID-19 Impact: Pandemic Had Negative Effect On The Market Owing to Decreased Consulting Services

The COVID-19 pandemic is having a negative impact on the management consulting services industry, as the demand for management consulting services has decreased worldwide. However, management consulting providers have taken several steps to position themselves for the post-COVID future as they begin to recover. In addition, the COVID-19 pandemic has increased the importance of digital transformation systems in business management consulting services. Technology-based business management consulting companies are increasingly offering clients digital and long-term management planning through robo-advisors.

Latest Trends

"Integrating Human Resources Consulting Services Automation technology as a major trend in organizations "

Human Resources Consulting Services Automation technology plays a key role in creating efficiency and innovation in HR solutions and enables organizations provide better talent strategies. Companies are looking for new ways to hire experts and offer new services at lower costs. Human Resources Consulting Services functions built on artificial intelligence (AI) and machine learning enable companies to standardize their operations. Elimination of additional IT costs. Market players offer sophisticated tools integrated with Consulting Services to meet the needs of end users.

Segmentation

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• By Type Analysis

According to type, the market can be segmented into Compensation and Benefits Consulting, Human Resources Management Consulting, Actuarial Consulting, Strategic Consulting.

Compensation and Benefits Consulting is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Small Businesses, Medium-Sized Enterprise, Large Enterprise. Small Businesses will be the dominating segment.

Driving Factors

"Digitization in business management consulting services will drive the market growth"

The integration of analytics, cloud, media and social media into business models is driving the growth of the management consulting market. In addition, management consulting firms offer IT transformation services to businesses and banks to meet challenges such as rising stakeholder expectations and shrinking budgets. Such services include identifying critical technologies, establishing an IT roadmap and cost-effectively consolidating, standardizing and harmonizing IT solutions across business areas. In addition, digitization of management services enables consultants to use various advanced tools such as artificial intelligence (AI) forecasting and machine learning (ML) to advice clients. As a result, effective and efficient services have been provided to customers. As a result, there is expansion in human resources consulting services market growth.

"Increase in the use of business management consulting services to reduce operating costs eventually driving the market growth"

The increase in the use of business management consulting services to reduce operating costs and optimize operations is accelerating the growth of the business management consulting services market. Adopting business management consulting services can save clients time, as part of the business management activities are in the hands of consultants. They don't do in-depth research because management consultants have the expertise to dig up information quickly. In this way, customers can save time and focus on other business. In addition, the fact that business management consulting services improve the efficiency of operations and provide better insight promotes market growth. In addition, increasing use of management consulting services for making important business decisions is fueling market growth. The use of data tools and analytics to hire employees is a major factor fueling the growth of the HR consulting services market.

Restraining Factors

"Lack of handling sensitive employee data may hamper the market growth"

Handling sensitive employee data, such as salary and benefits information, can be a concern for organizations. HR consulting firms must have strong privacy and security practices to protect this information. Remember that some countries have stricter laws than others. The growing adoption of digital technologies is creating new opportunities for HR consulting firms to help organizations transform their HR processes and practices. The field of personnel is not regulated, which means that the quality and scope of the services offered are standardized.

Regional Insights

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"North America will hold the largest market share during forecast period"

North America accounted for the largest human resources consulting services market share in the global market in 2021 due to the headquarters of leading HR technology solution providers such as Oracle Corporation, Ceridian HCM Holding Inc., Automatic Data Processing (ADP), Inc., North America Cornerstone. On Demand, Inc. and Workday, Inc. Growing job opportunities in the U.S. and Canada are creating demand for HR solutions for talent management, recruiting and performance management.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Aon Corporation (U.K.)
• Stellapop (Netherlands)
• D.G. McDermott Associates (U.S.)
• Perspectives Organizational Consulting Group (U.S.)
• Ashlin Management (U.S.)
• Buck Consultants (U.K.)
• ArchPoint Group (U.S.)
• Accenture (Ireland)
• Porcaro Stolarek Mete Partners (U.S.)
• Haufe Group (Germany)
• Aadmi Consulting (U.S.)
• Ann Houser Coaching and Consulting LLC (U.S.)
• JS Benefits Group (U.S.)
• Development Dimensions International (U.S.)
• Insperity (U.S.)
• 21Oak HR Consulting (U.S.)
• Allevity HR & Payroll (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.