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What is the Difference Between HR Consulting and HR Outsourcing?

Whether you’re a small, mid-size, or large company, human resources are vital to keeping your business and people thriving. However, managing HR in house – especially for small and mid-sized organizations – can take up critical time and resources.

That’s why many companies look to external HR providers for solutions. But which offering is best for your company? When it comes to HR outsourcing vs. HR consulting, both can help your business streamline processes, improve efficiencies, leverage expertise, and more.

In this article, we’ll explore the difference between HR outsourcing and HR consulting to help you determine the right solution for your business.

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What is HR consulting?

Your company can benefit greatly from outside HR experts, especially if you have a clear idea of your needs and how those align (or not) with what each external service provider offers. So, what is HR consulting, and how can it address your specific HR challenges while enhancing your business operations?

Whether you need help navigating a single project – like revising a company policy – or you need to tackle a more complex issue – like optimizing benefits packages – outsourced HR consultancy can be a cost-effective solution for as-needed, part-time, or interim HR support to help you drive better business outcomes.

Human resources consultants are a great option for companies looking to improve their HR strategies, processes, and policies. They can provide direction for a wide range of needs, including but not limited to:

  • Developing effective HR policies and procedures
  • Improving recruitment and retention strategies
  • Enhancing employee engagement and satisfaction
  • Providing training and development programs
  • Ensuring compliance with employment laws and regulations
  • Implementing performance management systems

When you choose a company like G&A Partners as your HR consulting partner, you and your team gain access to deep HR expertise and comprehensive support and tools to optimize your HR policies and processes — giving you time back to focus on growing your business. Schedule a consultation with our HR experts today.

What is HR outsourcing?

With HR outsourcing, you can delegate various human resources tasks to an external provider, reducing administrative burdens, lowering costs, and accessing specialized expertise. Several HR outsourcing options exist, such as working with an HR technology vendor to provide payroll services, an administrative services organization (ASO) to manage select HR functions, or a professional employer organization (PEO) for a more comprehensive approach. According to industry research, companies that outsource some or all of their HR tasks reduce administrative costs by approximately $450 per employee.

What is the difference between HR consulting and HR outsourcing?

Needs vary from company to company, so there is no one-size-fits-all HR solution. When assessing HR outsourcing vs. HR consulting, a variety of factors should be considered, including the scope of services, duration of engagement, your budget, the type of expertise needed, and your desired level of control.

In most cases, HR consulting involves bringing in a skilled advisor for your HR department. These consultants offer focused expertise on specific HR challenges, and they can analyze your current practices, identify areas for improvement, and recommend solutions. This might involve developing a new employee onboarding program, crafting a competitive benefits package, or navigating complex legal issues. HR consultants typically work on a project basis, providing guidance and support until the project is complete.

HR outsourcing, on the other hand, is more like hiring a reliable team to handle some or all of your ongoing HR operations. Imagine having a dedicated HR department readily available, but without the overhead costs of full-time employees. An outsourced HR provider such as a PEO can take over a wide range of tasks, including payroll processing, benefits administration, recruitment, and employee training. They ensure these processes are efficient, compliant, and aligned with your company's goals. Unlike consultants who leave after a project, a PEO like G&A Partners will handle your day-to-day HR needs while also providing strategic support – freeing you to focus on core business activities.

How to choose between HR consulting and HR outsourcing?

Unless you’re solely looking for assistance with a single project (HR consulting), the good news is, you don’t necessarily have to choose between HR consulting and HR outsourcing. When you work with a PEO like G&A, you gain access to HR experts who work with you on strategic initiatives and provide technology, services, and support to effectively and efficiently manage daily HR tasks.

A PEO provides more than outsourced HR consultancy; it is a partner in HR excellence, providing tailored, full-service solutions to help take care of your employees and elevate your business. In fact, research shows companies grow 7-9% faster when working with a PEO.

Why G&A?

At G&A Partners, we deliver world-class HR solutions that help build thriving businesses. To learn more about how G&A can support you, your business, and your employees, schedule a consultation.