How To Become An HR Consultant: Salary, Education Requirements And Job Growth

Editorial Note: They earn a commission from partner links on Forbes Advisor. Commissions do not affect their editors' opinions or evaluations.

When a company or organization seeks to Improve its human resources (HR) operations and grow its business, management can seek an HR consultant for support. Human resources consulting refers to advising organizations about their HR operations. HR consultants can provide valuable support and guidance for organizations looking to optimize their HR functions and Improve business outcomes.

This article explores what HR consulting entails, including primary job responsibilities for these professionals, average salary data, job growth estimates and steps you can take to pursue a career as an HR consultant.

HR consulting refers to the advice, recommendations and services that external contract workers or HR consulting firms provide. These insights guide businesses in optimizing their HR operations, addressing problems through new policies and procedures that align with organizations’ goals and objectives.

Across industries, companies of all sizes seek HR consulting to Improve their HR policies and ensure their programs stay up to date with new labor regulations. Areas where HR consultants provide strategic guidance include talent acquisition and retention, training and development, compensation, benefits, regulatory compliance and performance management.

HR consultants can tailor their services to meet organizations’ needs on a project-by-project basis or as ongoing support.

An HR consultant offers support to organizations that want to Improve their HR operations.

These professionals have specialized expertise in various HR domains and provide advice based on industry standards and best practices. Their services can benefit small businesses with no dedicated HR department as well as large organizations that need additional support to address complex HR challenges.

HR consultants have a comprehensive understanding of sales, accounting, marketing, finance, information technology and management. They draw on this knowledge to recommend solutions to various HR challenges.

The responsibilities of an HR consultant vary by company, sector and industry. Their duties can include:

According to Payscale, the average salary for human resources consultants was approximately $78,200 as of June 2023. Several factors can influence earning potential, including location, industry, educational background and professional experience. The U.S. Bureau of Labor Statistics (BLS) projects human resource specialist jobs will grow by 8% between 2021 and 2031—faster than the projected growth rate for all occupations.

Though aspiring HR consultants can take several pathways to their careers, many of these workers follow a similar professional journey. Below, their step-by-step guide outlines the typical process to become an HR consultant.

Earning a bachelor’s degree in human resources, business administration or a closely related discipline can equip you with the foundational knowledge and skills needed to pursue a career as an HR consultant. While it is possible to become an HR consultant with a degree in a field outside HR or business administration, the curriculum in these disciplines equips graduates with the core competencies and knowledge of HR best practices and procedures.

A bachelor’s in human resources usually requires 120 credits, which comprises general education and major-specific coursework. Though the curriculum for HR bachelor’s degrees differs by school, common courses in these programs include:

Each institution maintains its own admission criteria for HR bachelor’s degrees. Generally, applicants need a high school diploma or GED. Some colleges and universities maintain minimum GPA requirements. In addition to official transcripts of high school and postsecondary coursework, standard admissions materials include:

Employers may prefer HR consultants with a master’s in human resources or a human resources MBA. These graduate degrees develop students’ advanced HR knowledge and skills. Many programs at this level offer concentration options, allowing students to focus on specific subfields like organizational development, HR management or labor relations.

Both master’s in human resources (MHR) and MBA in human resources graduate degrees focus on human resources management. Although these programs share similarities, key differences separate them, including scope and curriculum.

MHR programs specifically focus on HR functions, such as talent acquisition, employee relations, training and development, employment law, compensation and benefits. In comparison, the breadth of HR MBA programs is often much broader, offering classes in human resources management alongside business administration courses such as marketing, accounting, finance and economics.

Generally, MHR graduates find employment opportunities in HR departments, whereas graduates with an MBA in HR qualify for a wider array of job opportunities, including management positions. Choosing between an MHR and an MBA in human resources depends on your educational and professional background and career goals.

Many HR consultants have at least three years of professional experience. Gaining work experience through entry-level positions and internships before moving to more advanced roles provides practical insight into HR. Working these jobs also helps build a solid foundation of the practical knowledge and skills you need to consult organizations effectively on HR-related matters.

Earning professional certification—like credentials from the Society for Human Resource Management—demonstrates your commitment to career development, ongoing learning and the HR field. HR certifications validate your knowledge, skills and expertise in various HR functions, signaling to employers and clients that you stay abreast of industry trends, regulatory requirements and best practices.

The average salary for HR consultants was around $78,200 as of June 2023. Multiple factors can impact earning potential, including employing industry, organization and whether you work in-house as a full-time employee or on a contractual basis for multiple clients.

HR consultants need strong written and verbal communication, interpersonal, problem-solving and analytical skills. These professionals must be able to analyze complex data to extract data-driven recommendations and solutions.

The BLS projects demand for HR specialists, including HR consultants, to grow by 8% between 2021 and 2031.

How to Build the Best Upskilling Program for Your Employees

Colorado Enacts New Protections for Employees

In June 2023, Colorado Gov. Jared Polis signed into law the Protecting Opportunities and Workers’ Rights (POWR) Act, which, among other things, substantially limits the use of nondisclosure agreements, lowers the burden of proof for workplace harassment claims and imposes new record-keeping requirements on employers with employees working in Colorado. They outline the key provisions of the act – which took effect on August 7, 2023 – below.

The POWR Act declares that it is the state’s public policy to encourage “free reporting, discussion, and exposure of discriminatory or unfair employment practices” to better protect employees. Therefore, the POWR Act makes clear that “attempts to interfere with employees’ ability to communicate about and report alleged discriminatory or unfair employment practices are contrary to the public policy of the state.”

In alignment with these objectives, the POWR Act substantially limits an employer’s ability to use nondisclosure agreements entered into or renewed on or after August 7, 2023. Under the act, such provisions that limit an employee’s or prospective employee’s ability to “disclose or discuss” any alleged discriminatory or unfair employment practices are now void, unless the agreement satisfies all of the following requirements:

Notably, any violation of the above requirements carries significant costs and penalties, including liability for genuine damages and a penalty of $5,000 per violation. Further, any employee or prospective employee who is presented with an agreement that fails to comply with the new requirements may immediately bring an action and may recover penalties, genuine damages, reasonable costs, attorneys’ fees and punitive damages.

Like some other states, such as New York, the POWR Act also rejects the “severe or pervasive” standard for proof of workplace harassment claims in favor of a lower standard that makes harassment claims easier to prove. Under this standard, unwelcome conduct that is “subjectively offensive to the individual alleging harassment and is objectively offensive to a reasonable individual who is a member of the same protected class” is harassment under Colorado law.

While the conduct or communication need not be severe or pervasive to be unlawful, it must still meet one of the following additional requirements to constitute illegal harassment:

Notably, however, even a single incident may rise to the level of harassment, and the act points out that conduct that was previously welcome may become unwelcome between two individuals.

The POWR Act also limits an employer’s ability to assert affirmative defenses to claims of harassment by supervisors. To assert such a defense, employers must now establish that they had a program in place designed to prevent harassment and deter future harassers that was communicated to employees, and that the employee bringing such a claim unreasonably failed to take advantage of the program. As part of this program, employers must take prompt and reasonable action to investigate or address the alleged harassment or unfair employment practice and take remedial actions when warranted.

The POWR Act also requires employers to preserve personnel or employment records for at least five years. Personnel or employment records broadly include:

In addition, employers also must keep a “designated repository” of all written and oral complaints of discrimination or unfair employment practices, which must include the date of the complaint, identity of the parties and substance of the complaint.

Finally, the POWR Act also adds marital status as a protected category under the state’s anti-discrimination law and modifies the framework for disability discrimination. With respect to disability claims, Colorado law now provides that it is not a discriminatory or unfair employment practice to take adverse action against an individual with a disability if there is “no reasonable accommodation that the employer can make with regard to the disability that would allow the individual to satisfy the essential functions of the job.” Previously, the law also required that the disability has a “significant impact on the job.” By removing this requirement, the state’s standard now mirrors the federal Americans with Disabilities Act standard.

Colorado employers should take the following steps in light of the POWR Act’s significant new obligations:

[View source.]