What It Takes To Work In Human Resources

Some people in human resources decide to go out on their own to fulfill a lifelong ambition to be their own boss. Many more have been laid off or put on furlough because of the pandemic, forcing them to go into business for themselves.

Human resource consulting, regardless of how you got into it, presents opportunities and problems. We spoke to human resources experts who have made the transition for advice on how to plan out and execute such a dramatic career shift.

 

Check Your Drives

Society for Human Resource Management certified professional and partner of Arc Human Capital in Woodbridge, Virginia Adam Calli, SHRM-SCP, recommends, "take a step back and ask yourself why you want to become a consultant." He went into consulting after being let off in 2015. "Are you planning to go into business for yourself, or are you simply trying to find a means to make ends meet while you look for a job?" Because they're two very different things.

Mary Ellen Brennan, SHRM-SCP, a human resources consultant in Arlington, Virginia, advises prospective clients to examine the pros and disadvantages of the profession before making the switch. Whether you consider a certain trait to be advantageous or disadvantageous depends on your own personal preferences. Some individuals like to work alone, while others thrive in collaborative environments.

Brennan, who started working as a consultant this year, likes the variety of customers she works with compared to working for a single organization. As a consultant, I get to help out with a variety of different projects, which is something I never got to do in my previous 13 years of working in a single HR department.

 

Start From Scratch

According to Brennan and Calli, there are a few things you can do if you're presently employed that can help get your consulting business off the ground as soon as possible:

Make a corporation limited by guarantee (LLC). Forming your company as an LLC provides an additional layer of protection. Your personal property will be shielded from any claims, liens, or lawsuits brought against your business since they may only be made against the corporation. Filing costs for an LLC application range from $50 to $100, depending on the state, according to Nolo.com, a supplier of self-help legal books and software.

Make a website that seems like it was made by pros. This may help people who are interested in hiring you as a consultant find you and learn more about the services you provide. WordPress' free plan doesn't feature a custom domain, advanced design tools, Google Analytics connection, or the option to monetize your site with ads, but the site's premium plan does and it only costs $8 per month.

Opening a company bank account is a necessary step. Open a separate checking account for your company to avoid mixing your personal and corporate finances (and causing a mess) (and making a mess). Having a corporate bank account will make it simpler to write checks for business expenses, keep track of receipts, and file tax returns.

Establish a rainy-day reserve. Small company owners, and HR consultants in particular, have learned a valuable lesson from the current pandemic: always be ready for the possibility of a drop in income. Therefore, before launching your company, you should create an emergency reserve in case of unexpected costs. The advice of many experts is to have three to six months of living costs put aside in an emergency fund. Management consultant and human resources writer Susan Heathfield of Williamston, Michigan's The Balance Careers states, "You need a cushion." Heathfield started her consulting career in 1987 after working for General Motors. If you don't, you might end yourself in a bad situation.

 

Gather A Following Of Customers

Heathfield cautions young business owners to plan on devoting a substantial amount of effort to building a clientele, advertising their services, and gaining references.

May I ask whether this is a suitable launching point? Try to make your current employer a paying client, Brennan says. I gave my CEO plenty of notice that I was planning to leave to start my own business, and he let me do some consulting work as a way to ease into my departure. Brennan also attended conferences and reached out to everyone in her network in an effort to drum up business. "Everyone in my region reacted warmly when I informed them what I was doing," she continues.

Calli suggests another path: working at an established consulting firm. "There's nothing wrong with joining an established consulting company that can provide you with customers," he says, "especially if you're supporting a family and can't afford to go without an income while you're getting your business off the ground."

His next words were, "Growing a clientele is a lot like farming." "They will grow if you place the seeds in the suitable soil and care for them."

 

Carve Out Your Own Space

Instead of trying to appeal to a wide range of companies, you may position yourself as an authority in a certain field or area of expertise. Indeed, Brennan did go that road. She elaborates, "I advertise myself on LinkedIn as an expert in the field of association administration." Heathfield, on the other hand, caters to both large corporations and smaller industrial and technological enterprises.

Heathfield argues that identifying a niche may clarify "your value proposition and what you bring to the table."

You should keep your options open and stay out of a rut. "Consider how you'd want to be seen in your immediate marketplace," calls out Calli. "As a specialist, you may be able to charge a premium fee for what you do, but you may be narrowing your customer base at the same time." Because you can manage a lot of varied things as a generalist, you'll have a greater chance of obtaining consumers who need your services. However, it might be difficult for you to charge a higher price.

 

Look For A Mentor

Starting your own consulting company could be scary, particularly if you've never worked for yourself before. You can get help, however. "Getting a coach was one of the things I did that was really useful," Brennan says. "I found one that works in the same profession as myself, and they've really helped me build confidence."