Cost Savings & ROI: The Financial Benefits Of Working With A Consultant Talent Firm
When a time-sensitive, revenue-impacting HR/talent initiative occurs, savvier companies turn to consulting to help them navigate the process and deliver results. In doing so, they free up valuable internal HR resources to focus on other initiatives. Consulting firms offer a variety of incentives to attract and retain talent. These benefits include tuition reimbursement and signing bonuses.
When a critical project requires specialized expertise that an internal team member may have yet to gain, a consultant talent firm like Canopy Advisory Group can quickly provide the solution. A vetted independent contractor will come on board and be ready to start work, with a much shorter time to productivity than an FTE that may need training and meetings to get up to speed. Similarly, consulting firms can deliver flexible working arrangements, which are increasingly important to attract and retain top candidates. While many firms report a lack of resources or cost concerns as barriers to implementing flexibility, research shows that these arrangements can increase morale, boost productivity, and benefit the economy.
Additionally, partnering with a talent consulting firm can free up valuable HR team members to focus on more important projects that support the organization’s strategic objectives. This can be especially helpful in a fast-paced environment where talent acquisition processes must adapt to meet the needs of today’s job seekers.
In addition to the cost of recruiting and hiring, you must factor in the time it takes for a new hire to reach full productivity. This is especially true if you have to invest in training. Moreover, the cost of turnover is even more expensive. A single person who quits can cost a business as much as $3,500 in direct and indirect costs. While working out ROI is straightforward, cost-effectiveness requires a more nuanced analysis. While some business expenditures directly impact income generation, others might deliver value in other ways. This includes improving client satisfaction and growing the number of clients or additional engagements. This is why it’s important to consider all the cost-effective benefits of consulting talent before deciding. This way, you can maximize the ROI of your investment. In the case of a consultant talent firm, this means providing resource scalability for your internal HR team while keeping project costs low.
Hiring consultants saves onboarding and ramp-up costs compared to the time it takes for an FTE. A consultant will already be vetted for the specific project and ready to work. At the same time, an FTE may have to spend significant time getting up-to-speed on company policies, establishing their infrastructure, and taking important training courses.
Additionally, companies can make hire/fire decisions with consultants much quicker than with an employee – meaning you’ll never have to pay out accrued vacation or personal days if the consultant isn’t working out for your team.
When working with a consultant talent firm, a company’s internal HR teams can focus on their responsibilities while the talent consulting partner delivers on critical HR/talent-related projects. This frees up valuable internal resources, which can be better used to support the core business. Hiring experts on a project basis means companies can hire the right person for the job and scale up or down as needed. This flexibility can help companies meet their project timelines, budgets and performance goals while still providing the high-quality results they’re known for. A top-tier talent consulting firm can offer various flexible and cost-effective options, such as employee sharing, project-based work, interim management, escrow employment and ICT-based mobile working. This makes them a great ally to companies looking for innovative solutions to meet their talent needs and tap into the benefits of the economy. They will also ensure that the freelance professionals they recommend are familiar with and comfortable with these new hiring methods.