People skills: Despite increased competition, growth will continue as business activity picks up

Human resource (HR) management is becoming more important to businesses as the US economy becomes increasingly service oriented, which creates a greater emphasis on employee relations and benefits. This trend has benefited the HR Consulting industry, which provides services to companies and individuals in this area. As corporate profitability has grown over the five years to 2018, clients' ability to pay for consulting services has increased, leading more companies to hire industry operators to contend with their HR-related concerns. The majority of industry operators are nonemployers that service clients' HR problems within specialty niche markets. Over the five years to 2018, individual HR consultants have entered the industry...purchase to read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 13-18
1.1%
Forecast Growth 18-23
Profit
Employment
135,671
Businesses
60,911

Industry Threats & Opportunities

  • Falling unemployment increased demand for some industry services, including employee retention
  • An increase in the number of US employees will bolster demand for industry services
  • The largest operators are expected to turn to overseas markets for expansion
  • Industry Report - Starting a New Business Chapter

    The HR Consulting industry has low barriers to entry. There are low start-up costs to opening a HR consulting firm and there is little regulation of the industry. Furthermore, the industry is highly fragmented despite the top four companies in the industry controlling 40.0% of industry revenue.The most significant barrier to entry is the specialized knowledge required for industry operators. There is relatively little capital investment required to enter the industry, as it is service based. Since the industry is labor intensive, hiring employees with a high degree of specialized knowledge is one of the primary barriers to entry.Smaller firms tend to be focused on a geographic region or niche specialty. Con...purchase to read more.

    Additional Insights for the HR Consulting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the HR Consulting Industry are

  • Access to highly skilled workforce
  • Ability to compete on tender
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Number of employees and Corporate profit in the HR Consulting industry impact industry performance..

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    What's in this report

    What is the HR Consulting Industry?

    Industry operators provide 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 open positions.

    Industry Products
  • Compensation and benefits consulting
  • Human resources management consulting
  • Actuarial consulting
  • Strategic consulting
  • Industry Activities
  • Providing compensation planning services
  • Providing personnel management assessment
  • Providing actuarial consulting services
  • Structuring employee benefits
  • Assessing organization development
  • Providing employee assessments
  • Providing advice for recruitment and retention
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of employees
  • Corporate profit
  • Demand from health and medical insurance
  • External competition for the Management Consulting industry

  • Current Performance
  • Expanding labor market
  • Consolidation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth areas
  • Competition increases
  • Table: HR Consulting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - HR Consulting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Utilities
  • Finance and Insurance
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Office Supply Stores

  • Products & Services
  • Compensation and benefits consulting
  • Human resources management consulting
  • Strategic consulting
  • Actuarial consulting
  • Other
  • Chart: HR Consulting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumer and industrial businesses
  • Financial service companies
  • Government entities
  • Technology, media and telecommunications businesses
  • Healthcare companies
  • Energy and utilities companies
  • Chart: Major Market Segmentation for the HR Consulting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs HR Consulting

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the HR Consulting Industry

  • Industry Globalization
    Deloitte Touche Tohmatsu LLC, Marsh & McLennan Companies Inc., Aon Corporation, Willis Towers Watson,
  • Table: Deloitte Touche Tohmatsu LLC - financial performance
  • Table: Marsh & McLennan Companies Inc. - financial performance
  • Table: Aon Corporation - financial performance
  • Table: Willis Towers Watson - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the HR Consulting Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the HR Consulting Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of Employees (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Actuary
  • A person who analyzes the probability and likely cost to a company in the event of an employee disability, sickness, injury, death or loss of company property.
  • Human Capital Management
  • The development of all labor-related issues, such as employment, employee assessment, compensation and improving labor relations.
  • Personnel Policies
  • A set of statements for employees that include comprehensive information about workplace rule, such as hours, attendance, pay, benefits, supervision and discipline.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on HR Consulting can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on HR Consulting:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The HR Consulting market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on HR Consulting, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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