Industry Analysis & Industry Trends
The growing importance of outsourcing internal services, such as human resources, by businesses has helped the industry grow through the recession. Nevertheless, a large amount of business closures, low corporate profit and high unemployment rates significantly slowed spending on HR consulting services, which are often nondiscretionary, during the recession and slow recovery. However, moving forward, the industry is forecast to turn around as the economy and business activity pick up... purchase to read more
Industry Report - Industry Investment Chapter
The HR Consulting industry is characterized by a very low level of capital intensity. In 2014, for every dollar spent on labor, the industry is expected to invest $0.02 on capital. Over the past five years, the industry has become marginally more capital intensive as labor costs have fallen as a proportion of industry revenue. Following the onset of the recession, many firms reduced the number of staff they hired to cut costs. In addition, staff that were kept employed were forced to accept wage freezes as businesses attempted to resuscitate falling profit margins.
Firms have also increased their use of technology over the past five years as more software has been developed to assist human resources and benefits administration workers... purchase to read more