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How To Price HR Consulting Services [With Examples From 50 HR-Related Consultancies]

Let’s cut to the chase: It can be very hard to decide how to price consulting services in the Human Resources sector yet it is so important.

There are so many factors involved in developing a successful pricing strategy, including industry, client size, service area, pricing model, level of competition, the health of the economy, and more.

To make matters more complicated – all of these pricing factors are constantly evolving so nothing is ever set in stone. This can be a blessing or a curse, depending on how you look at it.

In this article, we will share:

  • General industry pricing guidelines for HR companies.
  • A range of real-life pricing models being used by 50 HR-related consultancies around the world right now.
  • Pricing advice from successful HR-related consulting firms around the world.

(Want to contribute? Add your details here)

We’ll look at:

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    Growing A Leadership Development Business with Vanessa Judelman from Mosaic People Development

    I was delighted to be joined on the A Better HR Business show by Vanessa Judelman, President of Mosaic People Development. For over 20 years, Vanessa has been helping clients to develop leaders who inspire great results. She is a speaker, facilitator, talent management consultant, and certified coach.

    Vanessa Judelman

    Vanessa has been a consultant and has worked in-house as a business leader. By combining these experiences, she designs and delivers programs that are practical, customized, and can be applied on the job immediately.

    Vanessa’s goal is to develop great leaders at all levels by:

    • Coaching individual leaders to grow leaps and bounds in a short period of time.
    • Training new managers to successfully transition into a leadership role.
    • Providing senior leaders with the necessary tools to align their people with their business strategy.

    Capabilities include:

    • Organizational Development and Talent Management
    • Executive Coaching
    • Leadership Training
    • Business facilitation

    In a wide-ranging discussion, Vanessa and I talked about:

    • How Mosaic People Development focuses on developing leaders by offering training and executive coaching.
    • “Mastering Leadership” is an eight-module leadership program that takes leaders on a journey to help them evolve and build confidence.
    • Vanessa’s clients are those who are seeking leadership coaching, executive coaching, and leadership development programs.
    • Sharing learnings and advice from coaching work helps establish credibility and attract potential clients.
    • And much more.

    Thanks, Vanessa!

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    Growing Talent Sandbox (Talent Acquisition Training Platform For TA Teams)

    I was delighted to be joined on the A Better HR Business show by Neil Kelly, Founder of Talent Sandbox, a complete training solution, designed to empower TA teams and individuals that might be new to the profession, transitioning from agency to in-house, or those in need of a refresh.

    Neil Kelly

    Neil is a specialist in Talent Acquisition, Organisational Design, and Talent Development. He advises fast-growing businesses on the most effective ways to accelerate sustainable growth, through their talent. Neil has a Masters in Human Resources and is a current Fellow of CIPD.

    Each of the courses designed by Talent Sandbox has been skilfully crafted by a team of TA experts and sits upon an immersive platform, combining real-world exercises, interactive activities, and valuable resources to take back into the role.

    Building from a foundation level upwards, Talent Sandbox empowers recruiters to attract, find and hire exceptional people more effectively in today’s digital and diverse world.

    Dedicated to leaving recruitment in a better state than we found it, Talent Sandbox is trusted by organisations around the world.

    We intend to create an environment where talent acquisition can flourish. Where individuals see value in their role, feel valued by their organisation, and bring value to the table, every single day. Talent Acquisition shouldn’t be an HR steppingstone, or something people ‘fall into’, it’s an extensive, rewarding, and fulfilling career.”

    In a wide-ranging discussion, Neil and I talked about:

    • How Talent Sandbox provides structured training for individuals and businesses.
    • Focus on developing people to improve business metrics and performance, while making learning accessible and inclusive to all.
    • The limitations of video-based courses and how written content can be more helpful in some cases.
    • The importance of a growth and learning mindset to keep up with technology and new ways of working.
    • Their free resources and content.
    • How Neil and the team are growing Talent Sandbox.
    • And much more.
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    Growing An Organizational Network Analysis Software & Consulting Company – with Jaakko Kaikuluoma from Teamspective

    I was delighted to be joined on the A Better HR Business show by Jaakko Kaikuluoma, Co-Founder & CEO of Teamspective, a SaaS solution helping people, teams, and companies improve their performance through better feedback.

    Jaakko Kaikuluoma

    Jaakko’s professional background is in strategic management and international software business. He studied industrial engineering and management at Aalto University, Finland.

    After a decade in software sales, marketing, and managerial positions in startups, Jaakko decided to combine his expertise with his passion for “the human mind and how it works in social settings” and started his own company, Teamspective.

    Teamspective helps companies collect people’s insights continuously with modern methods that are non-disruptive to employees. With these real-time insights, companies react faster, support employees when they need it, monitor the impact of improvement initiatives, and overall establish a culture of growth mindset.

    Pulse Surveys:
    Automate your HR data collection. Measure engagement, well-being, and DEI right in Slack or MS Teams. Create a culture of listening and empower teams to improve with data-driven discussions.

    Organizational Network Analysis:
    Get an accurate map of how your people actually work together, and see how integrated your organization is. Identify key employees and understand their impact. Improve cross-functional collaboration, and help high-demand people delegate effectively. Analyse the True Teams, combine them to pulse data, and see where your company’s real pain points are.

    Smart 360 Feedback:
    Make feedback your superpower. Ensure everyone gets a continuous flow of quality feedback and recognition from managers, peers, and even customers. Make data-based decisions in performance management.

    In a wide-ranging discussion, Jaakko and I talked about:

    • How Teamspective helps companies identify and solve issues related to teamwork, leadership, and coordination.
    • The Pulse Surveys are integrated with Slack and Teams.
    • How Teamspective automates feedback interactions and turns to network analysis to gather information.
    • Data can spot disengagement and withdrawal from interactions and lack of collaboration between departments.
    • Teamspective is using only publicly available metadata.
    • The company is growing its business by using sales, online marketing, and partnering with HR consultants.
    • And much more.

    Thanks, Jaakko!

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    10 Mistakes To Avoid When Launching Your HR Business

    Starting your own HR consulting business can be both exciting and nerve-wracking. As with any entrepreneurial venture, there are bound to be a few bumps in the road along the way. However, being aware of common mistakes can help you avoid them altogether or at least mitigate their impact on your new business.

    In this article, we will detail 10 common mistakes that many HR consultants make when launching their businesses and provide tips for avoiding them. Whether you’re just starting out or have been in the game for a while, reading through these potential pitfalls could go a long way toward ensuring the success of your HR consulting business.

    We’ll look at:

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    Growing OnTheClock (Employee Time Clock System For Small Businesses)

    I was delighted to be joined on the A Better HR Business show by Dean Mathews, the founder & CEO of OnTheClock, an employee time clock system for small businesses to track employees’​ hours worked and improve payroll processing.

    Dean Mathews

    Dean came up with the concept and designed & developed OnTheClock and he continues to help create new features for the app. OnTheClock started as a passion project when Dean noticed a common theme among the accountants – they were unable to find a web-based time clock that was accurate and simple.

    Today, OnTheClock has a team of 21 individuals who serve 18,000 small businesses and their employees. While most of the customers are based in the U.S., the company has clients from all over the world. The team comprises dedicated professionals who handle product development, design/graphics, marketing, billing, leadership, and customer support. The company’s mission, which dates back to 2004, is to assist small businesses in tracking employee time with greater ease, accuracy, and efficiency.

    Here is one of OnTheClock’s values: “Our employees and customers are valued above all, even above profit and growth. Employee growth and development lead to a more successful customer. Profit and growth are viewed as evidence that we created an amazing company that customers love.”

    In a wide-ranging discussion, Dean and I talked about:

    • How OnTheClock turned from a passion project into a business with 21 employees and 18000 customers.
    • “On the Clock” helps small businesses track employee time for payroll and job/project costing.
    • The primary target is businesses with less than 100 employees, a large market segment often overlooked.
    • Simplicity is their primary focus and they aim to make their product easy to use.
    • The app has features that allow accountants to open free accounts and track their own time and employees.
    • And much more.
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    Growing An Employee Mentoring Software & Consulting Company – with Judy Corner from Insala

    I was delighted to be joined on the A Better HR Business show by Judy Corner, Director of Consulting at Insala, a leading global provider of talent development software and consulting solutions in employee mentoring, coaching, and alumni management.

    Judy Corner

    Judy is the Director of Consulting at Insala. She has over 30 years of experience providing customized human resources consulting services to medium to large organizations across a variety of industries.

    In the area of mentoring, Judy has designed and delivered workshops, training, and a complete mentoring methodology. Judy’s mentoring process is the foundation of Insala’s mentoring solution we know today. Beyond mentoring, her thought leadership articles on talent development have been published in journals such as The Diversity Journal and Industrial and Commercial Training and she has spoken at many conferences throughout her career.

    Insala is a pioneer and industry leader recognized by Global 1000 and Fortune 500 companies and associations internationally, for 20+ years as a leader in Career Management, Mentoring, Coaching, Career Transition, Alumni Software solutions, and People Analytics.

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    Growing An HR Recruiting, Onboarding & Retention AI Platform (Springworks)

    Kartik Mandaville

    I was delighted to be joined on the A Better HR Business show by Kartik Mandaville, the founder and CEO of Springworks, an HR tech startup that is developing tools and products to help organizations engage and retain their employees, using blockchain and AI.

    Kartik graduated from Carnegie Mellon University, Pittsburgh with a Masters from the Language Technologies Institute, School of Computer Science focusing on Big Data, Machine Learning, NLP, and Biotechnology. During this time there, he was part of the IBM Watson project and worked on genome analysis with machine learning.

    Springworks is a Bangalore and Santa Monica-based HR technology startup that is building tools and products to simplify recruiting and help organizations engage and retain their employees.

    The product stack from Springworks includes:

    • SpringRole — verified professional-profile platform backed by blockchain,
    • SpringVerify — B2B verification platform,
    • SpringRecruit — a forever-free applicant tracking system,
    • EngageWith — an employee recognition and rewards platform that enriches company culture, and
    • Trivia — a suite of real-time, fun, and interactive games platform for remote team-building.

    Springworks prides itself on being an organization focused on employee well-being and workplace culture leading to the 100+ employee strength company being rated 4.9 on Glassdoor.

    In a wide-ranging discussion, Kartik and I talked about:

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    Growing A Successful Solo International Compensation & Benefits Consultancy – with Sandrine Bardot – The Bardot Group

    I was delighted to be joined on the A Better HR Business show by Sandrine Bardot, Compensation & Benefits trainer, consultant, coach, and speaker, located in Dubai.

    Sandrine Bardot

    An award-winning Compensation & Benefits expert, Sandrine Bardot boasts a 30-year career in the field of Total Rewards. Sandrine took on roles with increasing responsibilities in Compensation & Benefits in Microsoft, Airbus, Apple, Philips, Fiat, and more, leading to positions of Global Head of Performance and Reward at Majid Al Futtaim in Dubai and then Mubadala in Abu Dhabi.

    Established in 2013, Sandrine’s company The Bardot Group offers specialized C&B consulting, training, and keynote speaking services, mostly throughout the GCC, Asia, and Africa.

    Sandrine shares hands-on, pragmatic approaches with her clients, ensuring that the projects will have immediate impact and business value and don’t remain “an idea on the shelf”.

    As part of her outreach to educate the HR community, Sandrine authors a blog, CompensationInsider.com, with over 300 articles published to date inspiring HR leaders and practitioners on topics related to the Employee Value Proposition.

    She is also a regular speaker at HR conferences and in-house events.

    In a wide-ranging discussion, Sandrine and I talked about:

    • How Sandrine started CompensationInsider.com, a blog where she shares the knowledge acquired over the years.
    • The services provided and whom Sandrine is helping.
    • Sandrine’s plans for the future.
    • The marketing strategy used by The Bardot Group.
    • Setting up a multinational team for complex projects.
    • Sandrine’s advice for growing an HR business.
    • And much more.
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    Starting and Growing An Online L&D Business – with Andrew Lawson from Just Ninety

    I was delighted to be joined on the A Better HR Business show by Andrew Lawson, Founder of Just Ninety, an L&D business focused on helping professional trainers shorten the design curve for online course creation, by providing ready-to-go training courseware.

    We discussed how & why he pivoted from delivering only in-person corporate training to adding a whole new line of ready-to-go corporate training materials online.

    Andrew Lawson

    Andrew has 25 years of experience as a facilitator and trainer, 15 years of experience as a coach and mentor, and is the founding director of Best Practice Consulting. Since starting Best Practice Consulting, Andrew has worked with hundreds of organisations. During this time, he has worked with many senior leadership teams to build purpose and unity, and embed organisational culture.

    Andrew is an excellent facilitator, trainer, and consultant, dedicated to bringing results through tailored approaches. He possesses high-level group facilitation skills and is known for being people-focused, clear in his communication, and innovative in his workshop approaches. He is highly sought after for his facilitation and advisory skills. with senior leadership teams, intact work teams, and individuals.

    The courseware designed by Just Ninety helps trainers to reclaim their time on designing training courses, which allows them to deliver more courses and generate more revenue.

    Andrew: “Our vision is to see trainers enjoying more work-life balance. These premium 90-minute courses for trainers are perfect for leveraging time and money.”

    In a wide-ranging discussion, Andrew and I talked about:

    • The tumultuous journey of reinventing a training business during the pandemic.
    • How Just Ninety started and who it helps.
    • Using the AGES model to create more engaging training.
    • The advantages of using ready-to-go courses.
    • Just Ninety’s marketing growth strategy.
    • How L&D consultants, HR consultants, and other such businesses can partner with Just Ninety to add a new revenue stream and/or add value to their client engagements.
    • Andrew’s marketing advice for people in HR businesses.
    • And much more.
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    Kudoboard – A Workplace Appreciation Solution For Special Occasions, Events, And Shout-Outs

    I was delighted to be joined on the A Better HR Business show by Aaron Rubens, Co-Founder and CEO at Kudoboard, an appreciation tool teams in more than 10,000 organizations are using for special occasions, shout-outs, and everything in between.

    Aaron Rubens

    Among other things, Kudoboard is often used as a replacement for the card that’s passed around and signed on birthdays, work anniversaries, farewells, and more!

    Aaron is passionate about building great products for mission-driven organizations. He is also an entrepreneur, product manager, and former educator. He attended Harvard Business School and Tulane University.

    His early career was focused on education, having taught high school math at Alta Vista Charter School in Kansas City, and joining a highly selective national service corps, Teach for America. During this time, he designed and taught the entrepreneurship class and conceived the idea of Kudoboard: at year-end, he’d have students write their name and what they liked about each other on notes and pass it to classmates.

    In a wide-ranging discussion, Aaron and I talked about:

    • Why Aaron started Kudoboard and whom does it help
    • Kudoboard is a workplace appreciation solution for special occasions, events, and shout-outs.
    • Building a cohesive culture and keeping people connected in a remote environment
    • Kudoboard is a platform to bring people together and reinforce organizational values
    • The challenges of keeping users engaged
    • And much more.
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    Starting & Growing A New HR Consultancy – with Gemma Alicia Long from HR & Co

    I was delighted to be joined on the A Better HR Business show by Gemma Alicia Long, Founder & HR Consultant at HR & Co, an HR consultancy that specializes in supporting small businesses, with expert, affordable, and bespoke outsourced HR solutions.

    Gemma recently celebrated the 1-year anniversary of HR & Co which is always a great occasion for any new business. She kindly joined me to share her story and advice on starting & growing a new Human Resources consultancy.

    Gemma Alicia Long

    Gemma is a chartered member of the CIPD (Chartered Institute of Personnel & Development). She graduated from Coventry University with a Post-Graduate Diploma in Human Resources, Level 7 and she is also a qualified Mental health first aider and trained in Mediation.

    Gemma has over 18 years of experience in senior HR roles supporting a range of industries including engineering, automotive, retail, education, Film and TV, and HR consultancy.

    HR & Co supports small businesses with up to 50 employees who are looking for flexible HR support and an onsite HR presence or larger companies who may need extra HR support onsite.

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    Best B2B Marketing Consultancies For HR Companies

    As the competition in the human resources sector continues to grow, it becomes increasingly important for HR companies to develop and implement effective marketing strategies. With a multitude of options available, choosing the right marketing consultancy can be a daunting task. In this article, we’ll explore to how to choose from the best B2B marketing consultancies for HR companies and help you make an informed decision about which one is right for you.

    The Importance of Marketing for HR Companies

    Marketing is a crucial aspect of any business, and HR companies are no exception. An effective marketing strategy can help HR companies generate leads, build brand awareness, and ultimately increase revenue. With the right marketing approach, HR companies can position themselves as industry leaders, attract new clients, and retain existing ones.

    What To Look For In A B2B Marketing Consultancy For Your HR Company

    Choosing the right marketing consultancy is essential to the success of your marketing efforts.

    When selecting a marketing consultancy, there are a few key factors to consider:

    • Experience: Look for a marketing consultancy with experience in the HR industry. They should have a proven track record of success and a deep understanding of the unique challenges facing HR companies.
    • Strategic approach: A good marketing consultancy will take a strategic approach to your HR business marketing efforts. They should develop a customized marketing plan tailored to your specific needs and goals.
    • Communication: Communication is key when working with a marketing consultancy. Look for a consultancy that is responsive, transparent, and easy to work with.
    • Results: Ultimately, the success of a marketing consultancy should be measured by the results they deliver. Look for a consultancy that has a proven track record of delivering measurable results for its clients.

    Podcast: Marketing Options For HR Companies


    Best B2B Marketing Consultancies For HR Companies – Get More HR Clients

    If you are looking for the best B2B marketing consultancies for HR companies like yours, do check us out.

    Get More HR Clients is a B2B marketing consultancy focused exclusively on the HR industry.

    Led by Ben Geoghegan (host of the HR podcast, A Better HR Business) we offer a range of HR marketing services, including lead generation, content marketing, and branding to help you attract new clients and position your company as a leader in the industry.

    Our HR Business Accelerator marketing consultancy service is designed specifically to help HR consultancies and HR Tech companies in North America and Europe achieve positive outcomes without having to deal with the usual challenges that come with marketing challenges.

    The service is aimed at leaders of HR companies who want to grow their businesses, improve their revenue, and make sales calls easier. By utilizing our expertise in HR markets, our deep dive approach, and our industry knowledge sharing, we help our clients solve their marketing challenges and achieve the growth they desire.

    Here are some of the benefits that our service can bring to your business:

    • More reliably hitting business performance targets: By utilizing our deep dive approach, we help identify the root cause of your marketing challenges and create a customized plan to address them. This allows you to hit your business performance targets and achieve your desired results.
    • More work for staff: As your business grows, you’ll need more staff to handle the increased workload. Our service can help you bring in more clients and customers, which in turn creates more work for your staff.
    • Better cash flow: A steady stream of new clients and customers can help improve your cash flow and give you more financial stability. Our service can help you achieve this by providing a reliable source of new business.
    • Higher quality of client projects: By attracting the right clients and customers, you can improve the quality of your projects and increase your reputation in the industry. Our service can help you attract the type of clients and customers that will allow you to take on higher-quality projects.
    • Better clients: By utilizing our HR market expertise, we can help you attract the type of clients and customers that are the best fit for your business. This means you’ll be working with clients that you enjoy and that are the right fit for your business.

    Our service includes several components designed to help you achieve the positive outcomes you desire. These include:

    • Deep Dive: Our deep-dive approach allows us to identify the root cause of your marketing challenges and create a customized plan to address them.
    • Playbooks: We provide you with a customized playbook that outlines the steps you need to take to achieve your desired outcomes.
    • HR market expertise: Our team has a deep understanding of HR markets, which allows us to provide you with the expertise you need to succeed in this industry.
    • Sharing of industry knowledge: We stay up-to-date on the latest trends and best practices in the HR industry, and we share this knowledge with our clients to help them stay ahead of the curve.

    By utilizing these components, we can provide a comprehensive solution to your marketing challenges. And because we specialize in HR consultancies and HR Tech companies, we can provide a more effective solution than other types of marketing consultancies and freelancers.

    Here are five reasons why our HR marketing service for HR companies is more effective for our ideal client types in North America and Europe to resolve their marketing/business growth-related problems than other types of marketing consultancies and freelancers:

    1. We specialize in HR consultancies and HR Tech companies: Because we focus exclusively on these types of businesses, we have a deep understanding of the challenges and opportunities that come with marketing in this industry.
    2. We have a deep understanding of HR markets: Our team has a wealth of experience in HR markets, which allows us to provide you with the expertise you need to succeed in this industry.
    3. We provide a comprehensive solution: Our deep dive approach, playbooks, HR market expertise, and sharing of industry knowledge provide a comprehensive solution to your marketing challenges.
    4. We are cost-effective: Because we specialize in HR consultancies and HR Tech companies, we can provide a more cost-effective solution than other types of marketing consultancies and freelancers.
    5. We are faster: Because we have a deep understanding of HR markets and the challenges faced by HR consultancies and HR Tech companies, we can provide a faster and more efficient solution to your marketing challenges. We don’t waste time on strategies that don’t work, and we focus on the ones that will deliver the most value to your business.

    Summary – Best Marketing Consultancy For HR Companies

    In summary, if you’re a leader of an HR consultancy or HR Tech company in North America or Europe, and you’re looking to grow your business, improve your revenue, and make sales calls easier, then HR Business Accelerator is the solution you’ve been searching for.

    By utilizing our deep dive approach, playbooks, HR market expertise, and sharing of industry knowledge, we can help you achieve the positive outcomes you desire without having to deal with the negative aspects that come with marketing challenges.

    To learn more about how we can help you resolve your marketing/business growth-related problems, request more information or book a quick call with us today.

    We look forward to helping you achieve your business goals.

    Growing DreamTeam (HR Software For SMEs)

    I was delighted to be joined on the A Better HR Business show by Natalie Hirsch, Head of Strategy & Operations at DreamTeam, a fast-growing startup, developing the next generation of HR platforms with a focus on customization and analytics.

    Natalie Hirsch

    DreamTeam provides a comprehensive HR solution for small businesses, which is both free and fully functional. The software is designed to tailor every aspect to the company’s specific needs, thereby eliminating the disorganized management of employee information. This ensures that data is easily accessible for employees, HR personnel, and finance teams alike.

    In addition, by integrating your ATS with DreamTeam’s software, you can gain valuable insights into your entire candidate lifecycle, from sourcing and application to their final promotion. Along with customizable features such as people directories and onboarding/offboarding workflows, DreamTeam also offers a people analytics tool that integrates all HR-related data processes.

    In a wide-ranging discussion, Natalie and I talked about:

    • What is DreamTeam and who does it help?
    • The pain points in the HR industry that DreamTeam is trying to solve
    • How DreamTeam helps organize data and identify insights that are helpful for management.
    • DreamTeams’ onboarding workflow
    • The critical 90 days of a new hire managed easily with DreamTeam
    • Natalie’s advice for growing and winning new business
    • And much more.
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    How Do You Price Your HR Consulting Services?

    I had a conversation recently with a client of mine and told her about how, many years ago, when I started out in business, I charged $150 per hour for HR consulting services.

    Some of my very first consulting gigs were for 3 or so hours of work.

    3 x $150 = $450.

    Problem was, I had to factor in travel time to get to and from the client’s office.

    Plus, before a client site visit, you’re not really working on anything else. You’re preparing mentally and getting documents ready.

    So, really, my 3-hour consulting gigs were close to a full day but for only 3 billable hours.

    🙁

    Last week, I had a Zoom meeting with a larger client of mine.

    They have just closed a 6-figure HR consulting deal (not hourly billing).

    They also have the potential to turn that into a 7-figure deal (yes, that’s more than 1 million dollars) if they do a good job which I know they will because I’m lucky enough to only work with good HR companies that always deliver.

    The money’s good but the cool thing is that the consulting work is exciting too.

    🙂

    So, as you can tell, I’m not a big fan of hourly billing.

    You’re probably not a fan of it either, I know, and you’re probably using retainers and/or project rates.

    However, what is a good rate for your services and how high can you go?

    “How much should we charge for HR consulting services?”

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