The global HR advisory market is expected to grow from $81.45 billion in 2021 to $87.32 billion in 2022 at a compound annual growth rate (CAGR) of 7.2%. The market is expected to reach $109.83 billion in 2026 at a CAGR of 5.9%.
Major players in the HR advisory services market are IBM Corporation, Mckesson Corporation, Dell, Tata Consultancy Services, Infosys Limited, Accenture PLC, Aon, Deloitte Touche Tohmatsu Limited, The Adecco Group and Marsh & McLennan Companies Inc.
The main types of HR advisory services are compensation consulting, benefits consulting, human resources management consulting, actuarial consulting, strategic consulting, and others. Compensation consultants are professionals in the implementation and design of compensation programmes, with the purpose of generating the right incentives for employees.
They also advise businesses on compensation trends and current pay rates for specific job categories. The various types of services include integration & deployment, support & maintenance, and training & consulting and are used by IT services, manufacturing, financial services, mining and oil and gas, construction, and others.
The use of data-driven tools and analytics for employee engagement is a major driver contributing to the growth of the HR advisory services market. Employee engagement refers to a workplace approach that results in appropriate conditions for all the employees of the company to give their best performance every day by abiding by the values of the company with an enhanced feeling of their well-being. Professionals in human resource management are relying on data analytics and AI for key decisions.
For instance, Genpact, an American professional services company, analyzes employee data, segments and categorizes it to find patterns such as at what age, salary range, or experience level, employees leave the organization. Predictive analytics is used to identify employees who are at high risk of voluntary attrition and interventions are designed to re-engage them. Further advances in data-driven tools and analytics are expected to drive the HR advisory service market.
Organizations across the globe are focusing on creating a digital workplace using cloud services and AI, which is gaining significant popularity in the HR advisory market. The digital workplace is a modern concept using digital transformation to align technology to achieve organizational goals with operational efficiency. Cloud services and AI are important parts of the digital workplace helping in removing geographic barriers for improved collaboration, increased productivity and employee engagement, improved decision making, and also in optimizing costs.
Cybersecurity threats for the human resource department is a major factor hindering the growth of the HR advisory services market. A cybersecurity breach is costly and equally destructive for all organizations - big or small. According to Heimdal Security, cyber-crimes costs the global economy $100 billion every year and $17 million in the USA alone.
HR professionals maintain extremely private and sensitive information such as social security number, date of birth, address, and bank details. In addition to this, according to the Forrester Analytics Global Business Technographics Security Survey 2019, 52% of enterprise network security decision-makers experienced at least one data breach in the last 12 months, and 44% of breaches were caused by employees who intentionally or not, exposed sensitive data to data thieves or hackers.
Companies rely on their HR department and do not outsource HR services because there is a risk of losing important employee data in availing external HR services, thereby restraining the growth of the HR advisory services market over the coming years.
The countries covered in the HR advisory services market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
Key Topics Covered:
1. Executive Summary
2. HR Advisory Services Market Characteristics
3. HR Advisory Services Market Trends And Strategies
4. Impact Of COVID-19 On HR Advisory Services
5. HR Advisory Services Market Size And Growth
5.1. Global HR Advisory Services Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global HR Advisory Services Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market
6. HR Advisory Services Market Segmentation
6.1. Global HR Advisory Services Market, Segmentation By Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Human Resources Management Consulting
6.2. Global HR Advisory Services Market, Segmentation By Service , Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Integration & Deployment
Support & Maintenance
Training & Consulting
6.3. Global HR Advisory Services Market, Segmentation By End-Use, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Mining And Oil & Gas
7. HR Advisory Services Market Regional And Country Analysis
7.1. Global HR Advisory Services Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global HR Advisory Services Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Tata Consultancy Services
Deloitte Touche Tohmatsu Limited
The Adecco Group
Marsh & McLennan Companies Inc.
Willis Towers Watson
Automatic Data Processing (ADP) Inc.
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