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Why do companies use HR consultants more often that most ?
Most businesses I have been employed with have an internal HR. I have yet to see one that calls one in for services.
Using an approved HR Consultant cuts the time for fringing one, but also check for credentials, check for previous clients and ask them about the experience
The HR has alot to do in any industry or company.
It is difficult for organizations to select the best consultant from their list, the act of employing the services of a consultant has its merits and demerits on both the organization and the consultant.
How can one overcome the disadvantage for the purchaser to ensure they do not get one of the fairly standardised packages as your competitors in the market will basically have the same and you want your organisation to stand our from the rest?
what are the dangers involved when one does not use approved HR consultants in their organization
this topic is a bit challenging me
Unless approved lists of consultants are approved by a reputable, well known agency, it could be risky choosing consultants from it. In this instance I would rather choose one from word of mouth recommendation.
Approved HR consultant can play a vital developmental roles which can help the organization take an appropriate decisions.
Organisations are increasingly seeking to ‘rationalise’ provision of services. Such rationalisation often includes keeping lists of ‘approved’ HR consultants from which choice must be made and standardising procurement procedures.
There are potential advantages and disadvantages of such ‘approved lists’, from the perspective of both purchaser and provider.
Advantages for the organisation as purchaser may include:
economies of scale
leading to potentially better deals
speedier provision of services as there are fewer stages in the tendering process
greater control over quality
increased bargaining power over costs
Advantages for the HR consultant as provider may include:
less time/cost spent in the tendering process
less time wasting as the purchaser more likely to buy from you
the ability to build up knowledge of the client
greater likelihood of being paid if a formal agreement exists
improved forecasting/knowledge of where future business will come from
Disadvantages for the organisation as purchaser may include:
working from a list which features only the ‘big’ players - major names who tend to have a range of fairly standardised packages that may not fit your particular needs
being faced with different consultants each time, even though you are using the same consultancy, which makes it difficult to build a relationship
For a HR consultant as provider the disadvantages will depend on whether they are on or off the list!
Traditionally, there have been few barriers to entry to offering consultancy. A move towards approved lists' constitutes a major barrier, which means that new entrants will need to focus on organisations not operating such a list or on open invitations to tender.