HR Consulting in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 54161bCARevenue
$3.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,912
Businesses
6,303
Wages
$X.Xbn
HR Consulting in Canada industry analysis
Canada's HR Consulting industry found new opportunities amid COVID-19, which reshaped business operations and highlighted the need to strategically manage HR departments across sectors. While HR consultants' growth is typically cyclical, as they rely on new business formation and employment expansion, the economic downturn associated with the pandemic brought consultants' countercyclical value to light. Although post-pandemic returns to the office offset some of the booming growth experienced in 2020, revenue for Canada's HR Consulting industry has expanded at a CAGR of 0.4% over the past five years, reaching an estimated $3.9 billion in 2023.Inflationary pressures will curb revenue growth in 2023, prompting an estimated 2.3% decline. Still, a rapid expansion in demand for strategic management consulting has fueled revenue growth during less promising economic environments. HR consulting companies have also sought expansion through emerging markets, mergers and acquisitions and innovation. While leading companies have made numerous acquisitions, market share concentration remains low as small-scale and nonemploying consultants have continued emerging.Over the next five years, the expanding popularity of remote work in the post-pandemic era will drive HR consultants to adopt digital tactics for remote workforce engagement, management and collaboration. Demand for HR consulting will inflate among the financial, professional services and energy sectors thanks to globalization and rising oil and gas prices. Low barriers to entry will fuel competition, prompting consultants to adopt efficient cost structures and diversify their services to keep profit afloat. Still, revenue will expand at a CAGR of 1.1% over the next five years, reaching an estimated $4.2 billion in 2028.
Trends and Insights
- Pandemic challenges benefited the industry as companies leaned heavily on consultants to navigate evolving business environments. Remote work policies, employee furloughs and business closures fueled demand for HR consulting services from businesses across sectors.
- Businesses relied more on HR consultants amid the pandemic, which disrupted traditional business operations. Companies turned to consultants to establish effective communication systems and manage benefits administration.
- HR consultants flock to Ontario because of its robust manufacturing presence. This industrial strength drives an influx of consultants focusing on industrial goods, energy, and resources while ensuring substantial workforce potential, especially in areas like Toronto.
- Competition among Canada’s HR consultants is driven primarily by pricing and service range. Companies that can offer lower pricing are often more attractive to clients, especially smaller businesses with limited budgets, while larger firms leverage their diverse service offerings and brand reputation to capture market share.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated $3.9bn in 2024.
Trends and Insights
HR consultants adapt and innovate amid pandemic challenges
- Demand for HR consulting services boomed amid COVID-19 as pandemic restrictions rattled traditional business operations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Flexible work arrangements will foster technological advances in HR
- As remote work and flexible work arrangements have advanced in the post-pandemic era, HR consultants in Canada will continue revamping their strategies to effectively manage and engage remote teams.
Biggest companies in the HR Consulting in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
LifeWorks Inc. | 330.8 | 46.3 | 14.0 | |
Willis Towers Watson PLC | 43.3 | N/A | N/A | |
Boston Consulting Group | 27.5 | N/A | N/A |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Strategic management consulting, Compensation and benefits consulting and Other services. Strategic management consulting is the largest segment of the HR Consulting in Canada.
Trends and Insights
Strategic management consulting balloons in an increasingly complex business environment
- Strategic management consulting involves aligning human resources strategies with overall business objectives.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Management Consulting in Canada
- Human Resources & Benefits Administration in Canada
Complementors
- Payroll & Bookkeeping Services in Canada
- Scientific & Economic Consulting in Canada
International industries
- HR Consulting in the US
- Management Consulting in Australia
- Consulting Services in New Zealand
- Management Consultants in the UK
- Human Resources Provision in the UK
Table of Contents
About this industry
Industry definition
This industry provides advice and assistance to businesses and other organizations for structuring human resource and personnel policies, employee benefits, compensation systems, wage and salary administration, recruitment and retention. This industry does not include companies that provide professional and management development training or those that list employment vacancies and place applicants in employment.
What's included in this industry?
Human resources management consultingCompensation and benefits consultingActuarial consultingStrategic management consultingCompanies
LifeWorks Inc.Willis Towers Watson PLCBoston Consulting GroupPurchase this report to view all 6 major companies in this industry.
Related Terms
HRHUMAN CAPITAL MANAGEMENTACTUARYIndustry Code
NAICS 541612 - HR Consulting in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Pandemic challenges benefited the industry as companies leaned heavily on consultants to navigate evolving business environments. Remote work policies, employee furloughs and...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Businesses relied more on HR consultants amid the pandemic, which disrupted traditional business operations. Companies turned to consultants to establish effective communicat...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
HR consultants flock to Ontario because of its robust manufacturing presence. This industrial strength drives an influx of consultants focusing on industrial goods, energy, a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition among Canada’s HR consultants is driven primarily by pricing and service range. Companies that can offer lower pricing are often more attractive to clients, espec...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major HR consulting companies have expanded and improved their operations through mergers and acquisitions. Consultants have been able to tap into more data, resources and te...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of LifeWorks Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Willis Towers Watson PLC's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Boston Consulting Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for LifeWorks Inc., and factors influencing its performance in the industry
- Description and key data for Willis Towers Watson PLC, and factors influencing its performance in the industry
- Description and key data for Boston Consulting Group, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry faces few regulatory requirements and is largely self-regulated through trade associations. Still, HR consultants must possess in-depth knowledge of employee rel...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit growth has remained limited even amid a pandemic-related surge in demand. The HR consulting industry contends with high competition, forcing consultants to reduce thei...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the HR Consulting industry in Canada in 2024?
The market size of the HR Consulting industry in Canada is $3.9bn in 2024.
How many businesses are there in the HR Consulting in Canada industry in 2024?
There are 6,303 businesses in the HR Consulting industry in Canada, which has grown at a CAGR of 1.1 % between 2019 and 2024.
Has the HR Consulting industry in Canada grown or declined over the past 5 years?
The market size of the HR Consulting industry in Canada has been growing at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the HR Consulting industry in Canada over the next 5 years?
Over the next five years, the HR Consulting industry in Canada is expected to grow.
What are the biggest companies in the HR Consulting market in Canada?
The biggest companies operating in the HR Consulting market in Canada are LifeWorks Inc., Willis Towers Watson PLC and Boston Consulting Group
What does the HR Consulting in Canada include?
Human resources management consulting and Compensation and benefits consulting are part of the HR Consulting industry.
Which companies have the highest market share in the HR Consulting in Canada?
The company holding the most market share in Canada is LifeWorks Inc..
How competitive is the HR Consulting industry in Canada?
The level of competition is high and increasing in the HR Consulting industry in Canada.
