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I AgreeAnalysis of Human Resources Consulting market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global human resources consulting services market is expected to reach a valuation of US$ 49.4 billion in 2022 and accelerate at a CAGR of 5.2% to top US$ 82 billion by 2032.
Human resources consulting services accounted for nearly 12% share of the global management consulting market at the end of 2021.
Report Attributes |
Details |
---|---|
Human Resources Consulting Market Size (2021A) |
US$ 47 Billion |
Estimated Market Value (2022E) |
US$ 49.4 Billion |
Forecasted Market Value (2032F) |
US$ 82 Billion |
Global Market Growth Rate (2022-2032) |
~5.2% CAGR |
North America Market Share (2021) |
~41% |
East Asia Market Growth Rate (2022-2032) |
~6.2% CAGR |
United States Market Growth Rate (2022-2032) |
~5.2% CAGR |
Market Share of Top 5 Companies |
~Higher Single Digit |
Key Companies Profiled |
|
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The HR teams of firms are more likely to be a team of generalists than specialists in every related discipline of the organization. Human resources consultants, on the other hand, have expertise working with several companies across a variety of industries and sectors. As a result, they are familiar with and have insights into the finest practices that need to be adopted.
Additionally, contractual remuneration to a team or human resources consultant hired for a project is based on project deliverables, milestones attained, and outcomes obtained within the predetermined time frame. The cost incurred in employee recruitment, training, and investment-related technologies & tools will be reduced by the engagement of human resources consultants.
From 2017 to 2021, the global human resources consulting services market registered a CAGR of 3.8%. As per the study by Fact.MR, a market research and competitive intelligence provider, the HR consulting market is projected to progress steadily at 5.2% CAGR between 2022 and 2032.
Market share analysis of HR consulting based on service and region. Under the service segment, compensation & benefits dominate with 36% market share in 2022.
“Emerging Demand from Small-Scale Enterprises”
HR consulting services are in high demand across all sizes of businesses. Small businesses are expected to present the biggest market for independent HR consultants.
Small businesses mostly cannot afford to waste resources on unproductive recruitment techniques. For small-size enterprises, an HR consultant may assist in building productive staff, which will ultimately save the company’s time and money by lowering the cost-per-hire.
“Increasing Need for Employee Wellbeing in Businesses”
The global spread of COVID-19 has had a profound impact on the well-being of employees. Enterprises took quick action to redirect resources towards workers’ safety, moving them into remote work arrangements, thereby stimulating the demand for HR consulting services worldwide.
Some of the continuous issues that were raised during remote working were employee disputes, issues with employee benefits, and also issues with workplace safety.
HR consulting services are also seeing tremendous demand with surging employee expectations regarding the availability of all resources while working remotely (60%). Around 50% of employees believed that HR should be responsible for building an inclusive workplace environment, managing employee benefits, and promoting employee work-life balance.
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“Security Threats Associated With HR Analytic Solutions”
Cybersecurity threats associated with HR analytics tools used by consulting firms will be a major factor hampering market growth. This is because it is an expensive and highly destructive thing for enterprises, both small and large.
HR professionals maintain the private & essential information of employees, including bank details, date of birth, address, and others, which are more prone to cyberattacks.
The United States human resource consulting market is estimated to expand at a CAGR of 5.2% through 2032.
The potential rise in employment rate in the United States and the growing adoption of advanced technologies such as HR analytics are expected to drive the U.S. human resources consulting services market.
The growing adoption of recruitment analytics by organizations is another factor driving market growth. Analytic solutions utilize statistical and scientific methods to derive meaningful insights from raw data and overcome various challenges associated with employees within organizations.
In the United States, more than 50% of organizations are expected to see people analytic solutions as a high priority in organizations with nearly 20% applying these solutions in the HR department.
Rapid urbanization and industrialization have positively impacted the number of corporate organizations in India, owing to which, the human resource consulting market is projected to rise rapidly over the coming years.
Consulting firms are preferred as they efficiently manage the overall processes associated with human resources in an organization, ranging from recruitment to taking care of employee compensation and benefits.
Compensation & benefits are a crucial aspect of human resource management as it helps the workforce to work more efficiently. Also, it keeps the workforce motivated towards the work and helps in ensuring healthy employee efficiency.
Enterprises reward employees based on their performance and help them excel at every venture undertaken by them. It is one of the crucial components of human resource management, needed to be efficiently operated in an organization.
With the significant rise in the economy and improvement in the job seeker population, organizations are expected to leverage human resources consulting firms to design competitive benefits packages to attract and retain top talents.
The banking, financial services, and insurance sector has faced several recruitment challenges and is associated with a poor image as a career destination and an aging workforce. The retention rate of the workforce is below the standard rate (90%) in the BFSI sector, which has led to a healthy demand for HR consulting services in the market.
Hiring an HR consulting firm and the deployment of analytical tools may secure around US$ 10-40 million from the banking industry and around US$ 10-45 million from insurance firms worldwide. This factor will lead to healthy demand for human resource consulting services.
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Prominent human resources consulting service providers are Accenture, Aon Hewitt, Automatic Data Processing, Inc., Bain & Company, Boston Consulting Group, Capgemini, Deloitte, Ernst & Young, G. H. Smart & Company, LLC, Huron, Kaiser Associates, Kearney, Korn Ferry, KPMG, McKinsey & Company, Mercer, Milliman, Inc, Oliver Wyman, Paychex, PwC, and Trinet.
The global human resources consulting market is expected to be highly competitive with the adoption of various strategic initiatives such as partnerships and acquisitions by key market players.
For instance :
Fact.MR has provided detailed information about the service providers of human resources consulting positioned across regions, revenue growth, and service offering expansion, in the recently published report.
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North America tops the human resources consulting market accounting for 41% market share.
Demand for human resource consulting services is anticipated to reach US$ 82 billion by 2032.
Between 2017 and 2021, the human resources consulting services market increased at 3.8% CAGR.
The global human resource consulting market is valued at US$ 49.4 billion in 2022.
Compensation & benefits account for 36% global market share.