If you’re new to business, you might not have heard of human resources consulting firms, also known as HR executive search agencies, but they can play an important role in companies both new and old. Human resources consulting firms send recruiters to companies based in tech hubs across the country and around the world, though they tend to focus on companies based in the Bay Area around San Francisco. As their name implies, these consulting firms focus on the human resources (HR) portion of a company, and can advise companies on who would be the best choice to hire for their organization. It needs to be understood that human resources consulting firms are not a staffing agency, they mainly serve as consultants while also advising on the hiring of candidates for executive-level positions.

Human resources consulting firms works equally with well-established companies as well as brand new companies that have just been founded. By utilizing their services, these companies can build a workforce that is both gender-diverse and ethnically-diverse, which can provide a large boon for those companies. McKinsey’s research shows that gender-diverse companies are 15% more likely to outperform their peers and ethnically-diverse companies are 35% more likely to do the same. With a more diverse staff at all levels, companies will be in a good position to thrive for years to come.

These human resources consulting firms can also be helpful by counseling and advising companies on the best way to hire and work with millennials, who are increasingly becoming the dominant generation in the workforce as the baby boomers age out and retire. According to a 2016 Gallup poll, Millennials are the “Job Hopping Generation,” with 6 in 10 open to a new job at any given time, more than any other generation. This is a new mindset that some older companies aren’t used to working with, and a consulting firm can come in and advise companies on the best way to work with this generation and make the company a desired place to stay.

In conclusion, human resources consulting firms work with companies in a number of ways. They work with companies located in tech hubs across the country and around the world, consulting on the best candidates to hire for executive positions within the company. They help companies hire a diverse staff, while also counseling them on the best way to work with the millennial generation. These are just a few of the things that human resources consulting firms do.