The pros and cons of hiring an HRMS consultant

An HRMS consultant can make your life easier by taking care of complex or cumbersome tasks or being a skilled set of hands during a busy period. However, an HRMS consultant can cause negative impacts to your budget or business processes if they are not efficiently deployed. When is it a good idea to hire an HRMS consultant and when would you be better off without one? Here are key considerations as you debate bringing in a consultant.

Consultants are skilled at complex, occasional processes

Some HR processes happen on an infrequent basis. Annual enrollment and government requirements like EEO or ACA reporting require a high level of detail and attention. An HR team who only performs these tasks once per year may take extra time and effort or miss some of the new legislation. An HRMS consultant who regularly does these processes for companies is on top of the regulations and can deliver results. An added benefit of using an HRMS consultant is that they may absorb the risk element as some contracts include coverage in if there is an audit or if something goes wrong with the reports.

Find out more about the HRMS implementation process with our helpful guide

A consultant can provide impartial insight

When you’re facing a highly political situation like defining the future HR department structure after a merger an HRMS consultant can remove the stress. A neutral and unbiased opinion is helpful in strategic system discussions. Your current HR staff sometimes view work through the local impact to their roles but an outside expert can analyze and present options without history or politics.

Hiring a consultant can leave your operational staff in the dark

An HRMS consultant can provide system recommendations and configure options based on their years of knowledge and experience. Sometimes there is a heavy reliance on their expertise, especially if you are short-staffed. It is dangerous to allow a consultant to operate as a standalone expert without a plan to document and transition information. I have seen cases where an HRMS consultant performs as a replacement of a permanent team member on a long term basis which results in a loss of internal expertise. Keep a close eye on what tasks your consultant is doing and why they are doing them. A consultant’s skills and expertise is helpful but it must be managed appropriately to get the best benefit from it.

A consultant will impact your bottom line

An HRMS consultant can analyze your processes and recommend improvements that will save you money. A great consultant will cost money to engage plus time for onboarding which shouldn’t be underestimated. A consultant’s cost should be reviewed to be sure that you’re getting the most advantages from what is often a costly line item on any budget. Define your work efforts so that your consultant is a cost benefit to your organization.