How to Know When It’s Time to Call an HR Consultant
For many small businesses, HR starts as a side task—a few policies here, a payroll system there, and the occasional hiring decision. But as the team grows, HR can quickly become overwhelming, with compliance issues, employee conflicts, and policy gaps piling up faster than you can handle. Recognizing when to bring in an HR consultant can make the difference between a smooth-running operation and a compliance disaster.
Here’s how to determine if it’s time to call in expert help, what to expect, and how to make the most of an HR consultant’s expertise.
Signs It’s Time to Call an HR Consultant
Compliance Is Keeping You Up at Night
Employment laws are constantly changing, and it’s easy to fall behind. Whether it’s misclassifying employees, failing to meet wage laws, or missing the latest EEOC guidance, non-compliance can cost you.
Statistic: The Department of Labor recovered over $270 million in back wages for U.S. workers in 2023 alone.
When to Call for Help: If you’re unsure whether your practices meet state and federal laws or you’ve already received warnings or fines, it’s time to bring in an expert.
You’re Struggling With Employee Turnover
High turnover not only disrupts operations but also drains resources.
Statistic: The average cost to replace an employee is 33% of their annual salary (Work Institute).
When to Call for Help: If you’re losing employees faster than you can replace them or exit interviews reveal recurring issues, an HR consultant can help diagnose and fix the problem.
HR Is Taking Too Much Time
As a business owner, your focus should be on strategy and growth, not payroll errors or mediating conflicts.
When to Call for Help: If you’re spending more than 20% of your time on HR tasks or feel stretched too thin, outsourcing HR can give you back your focus.
Your Policies and Processes Are Outdated
Employee handbooks, performance review systems, and job descriptions need to evolve with your business.
When to Call for Help: If your policies are more than a year old or don’t reflect how your business actually operates, it’s time for a refresh.
Your Business Is Growing Rapidly
Scaling a business means hiring quickly, managing new teams, and navigating complex compliance across states or countries.
When to Call for Help: If you’re adding multiple employees at once or expanding to new locations, an HR consultant can help you scale sustainably.
You Have Never Had Formal Policies or Internal HR
Many small businesses operate without formal HR policies, relying on informal practices that worked when the team was small. As your business grows, this lack of structure can lead to inconsistencies, compliance risks, and confusion among employees.
When to Call for Help: If you’ve been operating without formal policies or dedicated HR support and are struggling to manage employee issues, compliance, or growth, an HR consultant can help you establish a strong foundation tailored to your business.
What an HR Consultant Can Do for You
An HR consultant provides expertise tailored to your business’s unique needs. Their services might include:
Compliance Audits: Ensuring your practices align with labor laws and regulations.
Policy Development: Crafting or updating employee handbooks, performance reviews, and disciplinary processes.
Recruitment Support: Designing effective hiring strategies and interview processes.
Employee Relations: Mediating conflicts, fostering engagement, and improving workplace culture.
Training Programs: Developing workshops on compliance, leadership, or workplace safety.
Questions to Ask Before Hiring an HR Consultant
Finding the right fit is critical. Ask these questions during your search:
What experience do you have with businesses of my size or industry?
Ensure they understand the specific challenges small businesses face.
What’s your approach to solving HR challenges?
Look for someone who balances compliance with practical solutions tailored to your goals.
How will you communicate and collaborate with my team?
Clarify how often you’ll meet, the tools they’ll use, and their availability.
How to Make the Most of an HR Consultant
To get the best results, you’ll need to be an active participant in the process.
Be Honest About Your Needs
Share what’s working, what’s not, and your goals. Transparency helps the consultant create effective solutions.
Commit to Change
Implementing new policies or processes takes effort. Be ready to adjust workflows and invest in training if needed.
Stay Engaged
Regular check-ins with your consultant ensure progress and alignment with your business goals.
The ROI of Hiring an HR Consultant
Investing in an HR consultant can save you time, money, and stress.
Statistic: Companies that prioritize HR see 19% higher revenue growth than those that don’t (PwC).
Cost Savings: Preventing compliance fines, reducing turnover, and improving employee engagement can more than offset the cost of hiring a consultant.
The Bottom Line
If HR tasks are consuming your time, causing confusion, or leaving you exposed to risks, it’s time to call in an expert. An HR consultant can help you streamline processes, stay compliant, and create a positive work environment—leaving you free to focus on growing your business.
Remember: The best time to call an HR consultant isn’t when things go wrong—it’s before they do. Proactive support can save you headaches and set your business up for success.
