Pine Consulting Group

Employee Services Industry

HR consulting is a line of work where consultants provide the business with one or more categories of HR-related services. These might include helping the organisation develop a suitable employee benefits package, handling the recruitment process and hiring a new workforce, making reorganisation recommendations or acting as a liaison between management and employees to help resolve employee disputes (Indeed, 2024). Similarly, Employment Services include services and programs to assist recipients in enhancing their employability and quality of life, such as programs provided by other departments, agencies or governments. Many organisations offer different types of HR & employee services to attract and retain employees (Nova Scotia,2001:2023).

Overall, the Human Resources (HR) Provision industry is in the growth stage of its life cycle, as HR outsourcing has become increasingly popular. Over the five years through 2022-23, revenue has risen at a compound annual rate of 2.1% to reach £2 billion (Ibis World, 2023). Small companies can quickly establish a foothold in the industry. Low barriers to entry, a sizable amount of job vacancies and growing demand for niche technology services have meant the number of HR companies is surging. As a general trend, businesses outsource HR to cut costs and boost efficiency. There are exceptions though since potential clients could bypass the industry altogether – the increasing capabilities and ease of use of HR software will likely make it easier for businesses to complete HR tasks in-house.

HR Consultants are helping businesses adapt to a changing work culture. As employee expectations of their employers rise, many companies turn to consultants to create clear career development programmes and succession strategies.

(Ibis World, 2023). 

Industry Challenges

(Esphr, 2024; Barrow Parker, 2023)

Industry Opportunities

(Factorial UK, 2024; Personnel Today, 2023)