Why your small business needs a Human Resources Consultant!
Sally Dillon • November 2, 2022
Why your small business needs a Human Resources Consultant!
How do I know if I need help with managing human resources in my small business?
This is one of the most asked questions that I get, generally at dinner parties, networking events and from potential clients.
A lot of small and medium businesses think that human resources is just for big businesses and they're not entirely sure what a Human Resources Consultant can do for them. Think about it, business owners are often blessed and cursed. On the one hand, they have more control of when, where, and what kind of work they do and are generally doing something they love. On the other hand, most business owners tend to end up working crazy hours and doing a little bit of everything, but not necessarily doing it well. It's not their fault, they just don't know what they don't know and are often doing their best to keep things afloat. As a business owner, outsourcing where you can, will help both you and your business, especially when not outsourcing can lead to having critical risks and gaps in your business, even if you don't know about them yet.
As a business owner, ask yourself the following:
7 questions that relate various to human resources practices:
- Have you created your own employment contracts or policies and procedures but haven't had them looked at by an expert?
- Is your business and/or staff working without any business, Human Resource or WHS policies, procedures or an employee handbook?
- Have you made workplace changes due to COVID or something else in the last 2 years? E.g. Hybrid working, changes to location or
processes? - Do you have challenges with recruiting fast or putting together a kick ass employment offer that won't break the bank?
- Are you a small business that doesn’t have a specialist human resources or payroll person in-house?
- Do you spend ages on google searching business advice, Human Resource advice, leadership advice or looking for document templates that aren't designed for your business?
- Do you think you need some help, but don't know what you need?
If you answered YES to any of the above questions, then you may have some gaps or risks in your business. These gaps and risks won't just cost you time and money, but could also impact the reputation of your business as well as how confident, productive and happy your employees are.
What else can a Human Resources Consultant help me with?
Here are the top 15 things that an experienced Human Resources Consultant can help you with:
- Business Health Checks - assessing gaps and risks and advising on an action plan to get up to date.
- Creating and reviewing contracts for employees and contractors
- Business, Human Resource and Risk Strategic Planning
- Recruitment and creating kick ass employment offers
- Policy and procedure writing
- COVID 19 support/guidance
- Business structure reviews and assessing staffing needs - do we need a new role or better process? Are we paying people correctly.
- Understanding, advising on and helping you implement Legislative changes
- Business Planning
- Performance reviews and development programs
- Performance issues and terminations
- WHS Compliance
- Succession Planning
- Coaching/mentoring business owners and leaders
- Leadership/Staff Training
How can I pick the right Human Resources Consultant for my business?
- Ask other businesses for a referral.
- Look for a consultant who can communicate well and respond to you in a timely manner.
- Research them - websites, social media, LinkedIn etc – Are they aligned with your business values? Are they thought leaders? Do they have sufficient skills and experience?
- Can they provide references or are there client testimonials available?
- Do they have broad enough experience and skills to help you in several areas, so you don’t have to source different Consultants for things like HR advice, recruitment, training and policy writing?
- Can they help you implement practical solutions that are cost effective and reduce your risk?
- Do they provide you with learning opportunities to grow your knowledge?
- Understand how the service works and what it includes – get the proposal in writing.
Where is the best place to start if I’m not sure what I need?
Most good Human Resource Consultants will have some sort of gap assessment tool or health check. This is generally a great place to start so you can measure what you have in place now, what your gaps and risks are and where they see your priorities from a risk and best practice perspective.
Of course you can negotiate with your Human Resources Consultant on your priorities and available budget to resolve the issues and agree on a way forward.
How can I get help now and what is the cost?
If you're ready to get some help for your business or explore what you might need, then I recommend you get started with a Business Health Check. At Revolution Consulting Group, we offer a simple 3-step business health check that will help you identify areas of improvement and get you on the right path. Our process is simple: we review, inform, and do.
Can ChatGPT Replace HR? The Risks of AI-Generated HR Advice
AI tools like ChatGPT are revolutionizing the workplace, but can they handle complex HR decisions, employee issues, or legal compliance? The short answer—not safely.
Businesses that rely on AI for terminations, pay rates, workplace investigations, or employment contracts risk costly legal mistakes, financial penalties, and reputational damage. HR isn’t just about policies—it’s about human behavior, legal nuance, and ethical decision-making—things AI simply doesn’t understand.
In this article, we explore real-world examples of AI-generated HR blunders and the hidden risks of trusting ChatGPT for critical people management decisions. Plus, we share insights on where AI can help—and where it absolutely shouldn’t.
Read on to protect your business from HR disasters.
Introduction HR is one of the most misunderstood roles in business. Some believe HR exists to protect employees. Others think HR’s sole job is to defend the company. Both are wrong. And this misunderstanding is costing businesses money, trust, and talent. For over two decades, I’ve seen organisations sideline HR - treating them as a policy enforcer or an afterthought. The result? 🚨 Employees don’t trust HR. 🚨 Leaders fail to leverage HR strategically. 🚨 Businesses struggle with culture, retention, and performance. But here’s the truth: HR isn’t about sides. It’s about solutions. Great HR drives business outcomes by balancing people and performance. The question is: Are you using HR to its full potential? HR as a Strategic Powerhouse, Not Just a Policy Enforcer The best businesses don’t just "have" an HR department. They embed HR into leadership decisions. HR isn’t just about hiring, firing, and compliance - it’s about: ✅ Shaping culture and engagement (which directly impacts performance). ✅ Developing leadership capabilities (to create stronger teams). ✅ Driving strategic workforce planning (so you have the right people, in the right roles, at the right time). ✅ Maximising financial impact - because people are both your biggest cost and your greatest asset. If your HR function isn’t influencing leadership, growth, and profitability , you're leaving money on the table. HR as a Key Voice on Your Leadership Team Many leadership teams still treat HR as a support function rather than a core business driver. That’s a mistake. Your Chief People Officer (CPO) or HR Director should have the same level of influence as your CFO, COO, or Head of Sales. Why? Because your people strategy IS your business strategy. 🔹 You wouldn’t make financial decisions without consulting your CFO. 🔹 You wouldn’t make operational changes without your COO’s input. 🔹 So why make leadership and talent decisions without HR at the table ? And yet, in many businesses, HR reports to finance, operations, or admin - departments that have their own agenda when it comes to assessing people needs, budgets, and workforce requirements. HR should report directly to the CEO, or Business Owner to ensure people strategy is aligned with business strategy - not just budget constraints or operational efficiency. Because when HR is filtered through another department’s lens, critical workforce decisions become secondary to financial targets, logistical priorities, or admin processes. If your HR leader doesn’t report directly to the top, you may be unknowingly limiting their ability to drive real business outcomes. Are You Using HR to Its Full Potential? Take a moment and ask yourself: ❓ If you have an in-house HR team, are you using their skills and expertise across all areas of your business? Or are they stuck in admin-heavy tasks, when they could be driving strategic initiatives? ❓ If you’re a small or medium business and don’t have in-house HR, why haven’t you partnered with an external consultant? What’s stopping you from leveraging the expertise that could transform your business? In larger businesses, HR should go beyond just ‘HR.’ Under an expanded People & Culture framework, HR should oversee: ✔ Training & Development – ensuring leaders and employees are constantly upskilling. ✔ Work Health & Safety – making compliance, risk management, and employee wellbeing a priority. ✔ Recruitment & Talent Strategy – not just filling roles but attracting and retaining top performers. ✔ Major Projects & Change Management – ensuring workforce alignment with organisational shifts. In smaller businesses , these functions can be outsourced or strategically managed by an external HR consultant working directly with the business owner. This ensures a strong, aligned people strategy, while certain operational roles (finance, admin, or operations) may take on specific HR tasks - as long as they receive the right training, support, and strategic direction. HR isn’t just a department - it’s an investment in your business’s future. Whether in-house or external, make sure your HR function is working at a strategic level, not just buried in paperwork. HR’s Impact on the Bottom Line People aren’t just a cost centre - they are a profit driver. 📊 Labour is often one of the largest expenses in a business - so managing it strategically impacts profitability. 📊 Engaged employees are 23% more profitable , according to Gallup. 📊 Turnover costs 50-200% of an employee’s salary - losing top talent is expensive. When HR has a strategic voice in leadership , businesses see: ✔ Stronger alignment between business goals and people strategy. ✔ Faster, smarter hiring that supports growth. ✔ Better leadership development , reducing costly turnover. ✔ More effective workforce planning , so salaries, training, and hiring are investments—not wasted costs. Final Thought: HR is Not a Department - It’s a Business Growth Lever If your HR function feels like a compliance department , you’re doing it wrong. HR should be a leadership asset , helping your business make smarter, people-focused decisions. So, here’s my challenge to you: 📌 If you’re a CEO or MD - bring HR into the strategy conversation early and often. 📌 If you’re a leader - use HR as a coaching and development resource, not just a policy checker or problem fixer. 📌 If you’re in HR - push for a strategic role in leadership, not just operational support. Because when HR and leadership align , businesses don’t just succeed. They thrive. Want to Develop Stronger, More Strategic Leaders? If you’re serious about building leadership capability in your business, let’s talk. My Leadership Dynamics Accellerator Program helps CEOs, Business Owners, Leaders and HR teams create high-performing leaders who know how to balance people and performance. 📅 Book a free leadership triage call to see how we can help here . 🚀 Save your spot in our next Leadership Dynamics Accelerator Program here . 📩 Send us an email for more information here . Let’s build something stronger - together.
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