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Today, traditional work practices like hiring full-time employees have become a huge challenge. For many reasons, companies have now felt the need to hire consultants rather than full-time additional staff members. Management consulting is a field with an estimated $255 billion industry globally spreading in over 750,000 consulting firms
The term consultant is commonly used to define employees and freelancers of consulting firms from different industries, such as Human Resources (HR), Information Technology (IT), operations, strategy, and finance. But why do companies hire consulting firms? There are varied reasons why they tend to do so, and some of these are the following:
They need an outside eye
Have you encountered a time when you are dealing with a specific issue? And then you turn to your family and friends for suggestions and opinions? Most companies do this, especially when there’s a tough decision involved.
Companies usually possess different perspectives in solving the issues that they are facing. However, they want to ensure that each move is valid and correct. For this reason, they turn to consulting firms. Consultants come in to provide an opinion. But it won’t just be your ordinary opinion. Consulting firms have worked with various companies and may have encountered these problems.
They can produce a reliable perspective using their experiences as their basis. They tend to give innovative insights and ideas for possible changes that most companies won’t see on their own using their limited capabilities.
They need extra manpower
Companies need to solve even the most complicated problems, which is vital for survival. However, not all companies can provide the manpower to focus on their problems. These problems and issues usually stack up and may accumulate if no action is taken.
Companies need to focus on their day-to-day tasks while accommodating new projects. Ultimately, they came short and may only prioritize the core job responsibilities. The ability to fill in the gaps is very crucial for every company. Otherwise, companies might lose their financial stability.
Consulting firms serve as the company’s temporary but highly skilled staff for situations like this. Consultants don’t have to be full-time employees in a certain company. So it is wiser and more practical to hire them than someone new. Consulting firms usually switch around among different companies, so they have fast learning adaptability. Onboarding is not even an issue for them, either.
Companies won’t need to pull out their employees from their actual tasks when hiring consulting firm staff.
They need expertise
One of the major reasons companies hire consulting firms is because they need someone with expertise in a certain area. Regular employees might not be familiar with it. Consulting firms have varied skills perfect for accommodating one-off projects without the need to be hired full-time.
Engaging with a consulting firm gives them access to professionals with the skills they need for their company. Consulting firms serve as on-the-go experts to help companies in difficult situations involving HR issues, rolling out a new product, crisis management, etc.
They want someone capable of teaching
Consultants have various skill sets. Companies hire them to educate and teach their staff. Whether it is introducing a new approach to dealing with customers, updating the latest software, or implementing new policies of a certain department, a consultant might come in handy. They serve as coaches to train their existing and even new staff members.
This will be an advantage for companies because it will save them from hiring other staff. Instead, they allow consulting firms to train their current employees in various areas. This will also add value and competency to their existing employees.
They need to save money
Hiring full-time staff and employees needs a good amount of financial commitment. The company must be able to pay their salaries and related benefits. This won’t be the best option for many, especially for seasonal companies and businesses. Companies need to follow strict rules and regulations from the Department of Labor. They may be able to bring in full-time employees but could have them laid off.
So, hiring people from consulting firms will be a less legally challenging yet cost-efficient alternative. They can be hired and asked to work only for a certain period. They can also work on an hourly basis. This way, companies can hire an expert without paying expensive compensation costs.
They need a safe zone
Sometimes, businesses are working on a controversial project or a challenging task. It can become difficult for them to make wise decisions. They must take necessary actions without being wrapped up in politics or economic struggles. So, they hire consulting firms to provide an unbiased perspective and do the work for them.
In the movie, Up in the Air featuring George Clooney, there was an instance when his clients hired him to go all over the country to conduct employment terminations. Just like in that movie, companies and businesses might undergo major restructurings.
They need to play it safe so it won’t cause a backlash to the company. A consulting firm is indeed a safe zone for businesses when they are in this kind of situation.
Consulting firms truly provide support to companies in many ways. Listed above are just some of the biggest reasons why business people must hire consultants. It is vital to evaluate if your organization benefits from an on-the-go expert or needs to expand manpower. You might want to consider these reasons to make a wise judgment for the betterment of your company.