Human Capital Consulting vs. Human Resource Consulting: What’s The Difference?

A happy businesswoman holding a document while talking to a man at a desk.

As any business grows, so does the number of employees it has. Whether a slow and steady process or an exponential curve, ensuring the right systems are in place is vital to keeping staff happy, healthy, and enjoying what they do. Both human capital consulting and human resource consulting work together to achieve this, but in slightly different ways. Knowing the difference can help you understand how each might benefit the company you work for or even one you own. In this post, we’ll examine these consulting options a bit further.

Human Resource Consulting

As the name suggests, human resource consulting focuses on the changes that can be implemented through HR processes and procedures. This initiative ensures that a business attracts the right types of employees and improves the professional development of those who already work for them. It might involve different operations, like policies and compliance, performance management, incentives, and job analysis.

With an internal lens, this kind of consulting can enhance existing HR practices and create new ones that balance the needs of employees and the company’s goals.

Human Capital Consulting

This kind of consulting looks at the big picture. While it likely involves your HR department, it also reviews the processes in other departments, including productivity and larger amounts of data related to a business. This might include system integrations, talent strategies, user experience, and reducing administrative burdens. 

Human capital consulting is especially important since it touches every aspect of a company, affecting every employee. The changing landscape of remote work, compliance regulations, and increased data all point to the need to stay agile and in control of the workplace environment. This directly relates to a company’s commitment to its employees and overall morale. Whether a business is just starting out or looking to overcome a current hurdle, this type of consulting can make a difference from the ground up. 

The Difference Between HRC and HCC 

Although they are linked together, the objective or purpose of these types of consulting is what sets them apart. Where human capital consulting relates to increasing the value of employees in a business, it also creates the groundwork and defines actionable steps for human resource consulting. You might look at the latter as a more performance-based initiative, while human capital consulting is about developing or using the skills needed to succeed in a role. 

In addition, the teams you work with for each initiative don’t necessarily have to be linked. However, the mind of a human resource professional can be invaluable when looking at the bigger picture during the capital consulting process.

Which is right for you?

Human resources is the common thread that connects these two pieces. Both consulting options require the commitment of HR to see processes through. Realistically, it would be difficult to have one without the other. 

At True North, we have a broad view of both sides of human resource and human capital consulting. Our services can mentor a team into better practices, but it starts with understanding that team first. We can establish goals and plans to help achieve them. We build relationships that extend beyond the surface and aim to engage everyone involved. The foundation of what makes business effective continues to shift and change, and the structure of any organization must be willing to improve with the times. 
Ready to make your company a better place for everyone to work? Reach out to us today to get started.