HR Consultancy Singapore
The market for human resource consulting services in Singapore is seen to be expanding. But this was not always the case. During the crisis years, many companies chose to compromise on their HR functions to get themselves through. After 2011 however, the market for HR consultancy services has been restored because companies have finally realized its importance more than ever. Human resource consultancy, also referred to as human resource advisory, is responsible for implementing new policies and procedures to maximize the efficiency of HR operations of a firm. The scope of services ranges from designing new policies to implementing them, human capital strategies and consultancy.
Due to continued mismatch on the labor market, the need for HR consultancies is recognized more than ever. Changing trends in human capital such as diversity, an aging workforce, a lack of updated skills and others have made the role of HR consultants even more significant than ever.
Firms often find it useful to outsource their human resources as it brings valuable outsider’s objective view. This can help firms improve their overall business processes and human resource management. HR consultancies are usually hired in order to assess and audit a problem, design and implement favorable policies to drive organizational change. Let’s look at these HR consultancy services in more detail.
Common HR Consultancy Services
The services provided by HR consultancy services can be divided into eight main areas:
- Human capital strategy
- Compensation and benefits
- Manpower Planning
- Performance Management
- Learning and development
- Talent management
- HR technology
- Organizational Change
A human capital strategy is focused on a variety of strategic work in HR, such as defining a corporate culture, organizational design, people strategy, recruitment, and others. An HR consultancy ensures that the policies they design are system-wide and effective. Compensation and benefits look at the employee compensation and rewards from the base and variable pay to other secondary benefits across the entire organization- from lower-level staff to the upper-level staff. It also includes pensions/ retirement advisory and other health and insurance-related services. The organizational change focuses on the people side of change. It may include system-wide change, policy change, making changes in organizational structures and cultural changes within the firm. Hiring an outsider consultancy firm can be extremely useful when it comes to implementing change. Talent management includes all activities, ranging from recruitment to retaining and developing talent. Also, it means planning and establishing the right structures that help employees function fully. One of the many HR functions of an organization is the recruitment and selection of an employee. HR technology best assists many HR functions making the tasks ten times easier and efficient. Using Technology has helped many firms make fewer mistakes when it comes to calculations and performance management of employees.
The learning and development of employees are mainly responsible for training and development. Changing business environment has resulted in a range of new skillsets that companies would find it useful for their employees to have. Diversity, language barriers, and expatriates have made it more than a necessity for firms in Singapore to outsource its HR functions to remove any obstacle that will hinder their success. Provided the complexity of HR functions in today’s business environment, an HR consultancy does not seem as bad as an option.
Advantages of an HR consultancy
HR advisory could be useful for small-scale businesses to manage their operations such as payroll. However, as a company grows, so does the complexity of its daily operations. As more and more employees are recruited in a firm, the dire the need becomes to ensure the smooth running of the operations. That is what HR consultancy does for you. It ensures to eliminate common problems that might be hurting a firm’s ability to fully utilize its human resource. Whether its payroll-related issue or changing policies, HR advisory can be a blessing.
HR strategies- not a piece of cake
Formulating the right HR strategies is a complex process. The results are even harder to assess as there is no right way to calculate them. Designing HR policies requires tons of research and implementing them is even harder. They should be in accordance with the company’s overall strategy. Experienced HR advisors can be really helpful in this regard as they have the right knowledge and can be of great help in formulating effective human resource strategies.
A third party
HR advisory being a third party is immune to all kinds of bias. This helps a firm get straight forward advice, avoid favoritism and protect the company from failing. Getting a bias-free consultancy can be extremely beneficial.
In this rapidly changing business environment, organizations face external pressure to change in order to adapt to changing market conditions. Hence, for organizations to fully function, change management is important.
Time and cost-effective
Sometimes outsourcing tasks can help a firm focus on other important aspects of their business. Hiring HR consultants can help firms save time and eliminate risks. Recently, there have been several advancements in labor law and regulations. Changing policies every time to fit into new requirements can be time-consuming. Getting professional help will help you shift your focus to other business tasks.
What does an HR consultant do?
Human resource consultants are usually hired by clients in order to improve the performance of their HR functions. They might be hired directly or through a consultancy firm in order to address specific issues and remain on-site until the issues are not resolved. HR consultants should have adept knowledge in accounting, sales, IT and human resource management in order to resolve issues that might be causing inefficiencies in human resources.
Most HR consultants have a ton of experience and education in their relevant fields. They should, however, possess a deep understanding of labor laws in Singapore in order to help firms that don’t. The basic responsibilities of HR consultants include hiring, training and tracking the performance of employees. As the HR functions become more complexed, a more experienced consultant should be hired. Other job duties of an HR consultant include
- Advising management when it comes to the administration policies and procedures
- Providing insights by analyzing a company’s current HR policies and recommending solutions
- Developing, reviewing and revising HR policies and procedures
- Implementing change
- Ensuring that HR programs are in compliance with the labor laws
- Preparing and maintaining reports related to HR projects
- Assisting the management during recommended changes regarding workflow
- Carrying out training programs that are HR-specific
- Conducting audits and ensuring compliance.
If a firm is confused about whether in-house HR is better than a consultancy then the answer is quite straightforward. If your organization is failing and the HR functions are complex then its best to go for HR consultancy. Also, if your organization is labor-intensive it is obvious that outsourcing your HR can bring in fruitful results.