Companies have always relied on HR professionals to ensure smooth operations and attract top talent for their vacancies. While many organizations rely on in-house HR teams, an increasing number are opting for freelance HR specialists, taking advantage of their expertise and flexibility.
Employers gain not only from the specialized knowledge that contractors offer but also from the adaptability that comes with hiring freelancers. For self-employed HR managers, the benefits include a diverse range of work and greater control over their schedules.
Interested in starting your own HR consultancy? Check out our comprehensive guide on launching a business, filled with expert insights to help you get started.
In 2018, the role of HR Manager was ranked sixth in Glassdoor’s list of 25 Best Jobs in the UK, while the role of HR Business Partner secured the thirteenth position.
Understanding HR: Key Functions and Responsibilities
The primary focus of Human Resources (HR) is on people – managing current workforce needs and identifying new talent for hiring. HR plays a vital role in promoting and nurturing organizational culture, alongside ensuring compliance with laws and best practices, including health and safety regulations.
The organization of an HR department can vary significantly from one business to another, often influenced by the company size, budget, and strategic focus. For instance:
- In small businesses, a single HR professional may handle all responsibilities, from employee records to recruitment.
- In larger corporations, dedicated HR departments may have specialists focusing on specific areas such as payroll, talent development, or compliance.
Core Functions of a Human Resources Department
Despite the variance in team composition, HR departments typically perform several key functions:
- Training and Development: Organizing employee training and development programs.
- Workplace Issues: Resolving conflicts between staff members.
- Employee Performance: Monitoring attendance, performance, and addressing personal or medical concerns.
- Employment Law: Navigating key employment laws and enforcing disciplinary procedures.
- Recruitment: Managing the recruitment process, from drafting job advertisements to onboarding new hires.
- Remuneration: Establishing pay structures and employee benefit programs.
- Company Policies: Developing and maintaining employee handbooks and policy documents.
How to Break Into Human Resources
If you’re interested in a career in HR, particularly as a specialist, there are several pathways you can take to enter the field:
- Bachelor’s Degree: A degree in any field or specifically in Human Resources Management.
- Master’s Degree: A graduate degree focusing on HR topics.
- Vocational Training: Pursuing a Higher National Diploma (HND) or apprenticeship in HR.
- Work Experience: Gaining hands-on experience in HR roles.
- Development: Transitioning from administrative or financial roles into HR responsibilities.
- Career Change: Leveraging transferable skills from related fields like marketing or law.
- CIPD Training: Obtaining qualifications from the Chartered Institute of Personnel and Development (CIPD) to progress in HR.
For those seeking to establish their own HR consultancy, advanced qualifications and extensive experience are essential. Consider gaining entry-level HR experience while pursuing additional training to climb the professional ladder.
A typical HR Manager job description may include:
- Skills: Excellent interpersonal and communication abilities, organizational skills, and strong motivational capabilities.
- Experience: Two to five years of experience in general HR roles.
- Training and Qualifications: A degree and a CIPD qualification.
Becoming an HR Specialist: Steps to Success
As we delve deeper into the HR sector, let’s discuss how to specialize and operate as a self-employed HR manager.
Identify Your Niche
Defining a niche can set your consultancy apart. Whether leveraging years of experience or tapping into market demand, consider specialization areas such as:
- Recruitment: Focusing on senior or highly specialized roles.
- International HR: Providing services for global talent acquisition and managing multinationals’ HR policies.
Don’t forget to draft a comprehensive business plan. You can find a helpful template here.
Managing Costs as a Self-Employed HR Manager
While launching your HR consultancy is cost-effective, you should budget for the following essentials:
- Training: Course fees for degrees and CIPD qualifications.
- Equipment: A reliable computer, mobile phone, and essential HR software.
- Workspace: Costs related to setting up your home office or renting co-working space.
- Insurance: Coverage for business liabilities, contents, and professional advice.
Potential Earnings in HR
In the UK, HR managers typically earn between £20,000 and £50,000, depending on experience and qualifications. As a self-employed HR manager, your earnings will vary based on project load and contract duration. Don’t forget to account for potential gaps in your workload, including sick leave and vacation time.
Effective Marketing Strategies for Your HR Consultancy
To attract clients to your HR services, consider the following promotional tactics:
- Create a Professional Website: Establish an online presence where potential clients can learn about your services and past successes.
- Engage on Social Media: Use platforms like LinkedIn to connect with industry peers and showcase valuable HR content.
- Distribute Marketing Materials: Utilize business cards and flyers to promote your services offline.
- Network by Attending Events: Participate in industry conferences and networking sessions to engage with potential clients.
- Utilize Word-of-Mouth: Encourage satisfied clients to share testimonials and refer you to others.
Business Case Study: Rebecca Labram, Director of Peopleclever
“Starting your own HR consultancy can be challenging but immensely rewarding. Here are some insights from my journey:
- Build Trust: Establishing strong relationships with clients is crucial.
- Branding Matters: Maintain a professional brand and consistent messaging across all channels.
- Educate Your Clients: Help clients understand the positive impacts of effective HR practices.
- Use Clear Language: Avoid HR jargon to engage clients effectively.
- Stay Informed: Keep up with industry news and changes to regulations.
- Market Your Expertise: Utilize social media to share insights and engage potential clients.
- Focus on Value Addition: Look for areas where you can enhance your client’s HR processes.
- Leverage Your Network: Use referrals from your network to find new clients.
– Rebecca Labram, Director, Peopleclever
Next Steps: Launching Your HR Consultancy
With a clearer understanding of the HR landscape and pathways to become an HR manager, you are now equipped with the necessary information to start your own consultancy. To enhance your knowledge further, consider diving into our article on CIPD qualifications, which are essential for your professional journey in HR.
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