Transitioning to HR Consultancy: How Do I Price My Services for Maximum Value?

I am working in a garment manufacturing company that consists of 100 employees (inclusive of staff). I am responsible for attendance maintenance, payroll, statutory compliance, and other HR-related tasks.

Consultancy Services Pricing

Now, I am considering offering the same services on a consultancy basis. Please advise me on how much I can charge my clients, whether on a daily or project basis.

Your guidance is appreciated. Thanks in advance.

Regards

I really appreciate your approach to opting for a professional stance. With your significant experience in the field of labor laws, you could consider expanding into consultancy services. Regarding our management's involvement, you can diplomatically present the matter to them, emphasizing the benefits of providing these services on a daily basis. If the management is open to accepting your proposal, you could commence consultancy work.

Regards,
R. B. Yadav
Advocate

If 10k is good compared to other industries, then do not leave the job. There are hundreds of consultants doing attendance maintenance, payroll, statutory compliance, and other things related to HR. You will face tough competition. Moreover, lots of computer software is available for these jobs. I feel you should get some more experience in various aspects of HR. It is too early to start consultancy.

Regards,
S N Rao

Starting Your Own Consulting Business

Good thought to start your own consulting business. Being a professional with hands-on experience, I do not see a chance for you to fail. However, before diving into any business venture, make sure to understand the market, advantages, challenges, and statutory commitments, etc.

As Mr. Rao mentioned, you can expect stiff competition. Ensure you have enough backup to sustain the firm without borrowing in case you initially struggle to secure sufficient business.

Providing payroll process support is a lucrative business idea, especially if you can offer comprehensive consultation support along with software services for SSIs, SMEs, etc. Are you proficient with computers?

Sharing My Experience

Before 10 years ago, consultants were very popular in our industrial area. However, as the years passed, the new youth emerged with more updated knowledge, particularly in software, and began to capture the industries. Management decided to retain such young talent to improve productivity. Today, many companies have dropped their consultants simply because talent is now easily accessible.

I am not against your initiative, but as Rao sir mentioned, there is tough competition outside. Gain as much knowledge as you can and then make your move. If you believe you have gained enough knowledge, then seize the opportunity. I wish you the best of luck in your future.

Regards,
Arun J.