North America Tops the Human Resources Consulting Market Accounting for 41% Market Share
United States, Rockville MD, Oct. 17, 2022 (GLOBE NEWSWIRE), a market research and competitive intelligence provider, says that the global human resources consulting market is estimated at US$ 49.4 billion in 2022 and is expected to progress at a CAGR of 5.2% from 2022 to 2032. Surging demand from small-sized organizations and companies moving to a remote or hybrid work model are expected to drive market growth over the coming years.
Human resources consulting is an essential practice delivering crucial aspects of human resource management as an external provider. It is a cost-effective solution that drives the human resource development of an organization in an optimum way. It includes consulting regarding fundamental HR practices such as compensation & benefits, talent management, HR analytics, and others.
The market has increased significantly post-COVID. In 2021, the global market size of human resources consulting was around 12% of the total management consulting market. This is a modern way to channel the workforce of an organization to obtain higher employee efficiency.
Key Takeaways from Market Study
The global human resources consulting services market is projected to expand at a steady CAGR of 5.2% and be valued at US$ 82 billion by 2032.
The market exhibited 3.8% CAGR for the period of 2017-2021.
Under service segment, compensation & benefits dominate the market with a share of 36%.
North America led the global market with 41% share in 2021.
Demand for HR consulting services is expected to increase at CAGRs of 5.1% and 6.2%, respectively, in Europe and East Asia.
“Human resources consulting to gain popularity in every industry vertical over the coming years,” says an analyst.
Why is the U.S. a Huge Market for HR Consulting Services?
The United States human resource consulting market is estimated to expand at a CAGR of 5.2% through 2032.
The potential rise in employment rate in the United States and the growing adoption of advanced technologies such as HR analytics are expected to drive the U.S. human resources consulting services market.
According to the US Bureau of Labor Statistics, the employment rate in the United States was about 59.3% in December 2021, which increased to 60.1% in August 2022.
Segmentation of Human Resources Consulting Industry Survey
By Service :
Human Capital Strategy
Compensation & Benefits
Learning & Development
By End-use Industry :
Energy and Natural Resources
Government & Public Services
Life Science & Healthcare
Media & Telecommunications
Others (not covered elsewhere)
By Region :
South Asia & Oceania
The intensity of competition in the human resources consulting market is high with the presence of various established and new market players in the market. These market players are resorting to various organic & non-organic strategies to stay competitive in the market.
In March 2020, Willis Towers Watson was acquired by Aon Plc.
Additionally, market players are taking rigorous action to enhance their consumer base by focusing on various industry verticals. They are focusing on improving their services with integration of advanced technologies such as cloud computing, artificial intelligence, and machine learning.