Human resources (HR) has always had a bad reputation. Bad in the sense that nobody wants to speak to HR unless it’s because their paycheck isn’t as it should be, and even then…nobody likes to talk to HR.
There’s a stigma about HR managers and consultants of being intimidating, scary, or anything but on the side of employees. The reality is anything but that, and HR consultants actually face a lot of pressure to perform and meet the needs of employees rather than the company.
They’re constantly giving guidance and support, but unlike employed HR managers, HR consultants often work freelance and have unique job pressures. They have limited time to understand the inner workings of a company, decide what’s going wrong, and deliver advice.
Read on to find out what happens when that goes wrong.
Why HR Has a Bad Reputation
HR has never been universally liked. That reputation didn’t appear out of nowhere.
Employees often think HR workers protect the company instead of the employees. Employers also sometimes see HR as overly cautious or obstructive. Essentially, no one likes to deal with them, but for most HR workers, the truth is far from the perception. They’re dedicated to helping and improving the lives of employees—and if they’re not, they’re simply bad HR managers.
Consultants are slightly different and sit between both sides. They’re trying to balance compliance and fairness to meet the reality of commercial expectations.
But part of the issue is actually the expectation. HR consultants are tasked with addressing cultural issues, performance problems, and legal risks, while also managing employee expectations, all simultaneously. That’s not always possible. When outcomes disappoint one side, HR advice becomes the target.
There’s also hindsight bias. Decisions that seemed reasonable at the time can look flawed if circumstances change or disputes become what feels like out of control.
What Happens When Advice Leads to Legal Trouble?
Advice can lead to legal trouble if a company follows a consultant’s advice but later challenges it, arguing that it doesn’t actually serve the company and the outcome of the advice isn’t what was guaranteed. Logic would tell us that HR consultants shouldn’t guarantee anything, but it’s not always as simple.
If an employee files a claim for unfair dismissal, discrimination, workplace harassment, etc., the employer’s decisions are examined closely. That examination can extend to the advice they relied on. And those are just examples; the issue relates to any advice that led to action by a company that didn’t work as planned.
In some cases, employers will shift responsibility. Claims of professional negligence are not uncommon in these situations. Even if a consultant ultimately isn’t found liable, legal defense costs can be significant. For freelance HR consultants, protection from professional errors from errors and omissions insurance is essential.
It can cover:
- Business errors that cost clients money
- Claims of professional negligence
- Misrepresentation that causes financial harm
- Legal defense costs
It’s so much more of a headache for freelance consultants to manage the situation compared to employed HR managers that can simply say sorry, and insurance is an excellent protection, at least financially.
The Common Issues HR Consultants Manage
Most HR consultancy work is preventative, but it’s close to risk.
Common areas include:
- Disciplinary procedures
- Grievance handling
- Redundancy processes
- Performance management
Consultants are also involved in:
- Drafting policies
- Managing code and conduct
- Controlling absences
- Creating terms and conditions for flexible working
- Managing remote work agreements
All of those can be issues. HR consultants are often asked to advise in high-pressure situations where emotions are already elevated, so, naturally, there’s a potential for problems.
How Are Workplaces Changing the Role of HR Consultants?
Remote and hybrid work has created new challenges for HR consultants. It’s more difficult to monitor employees, check performance, understand well-being, etc. Mental health and employee well-being, for example, are becoming core responsibilities for HR managers.
Employment law is also evolving fast. Employees are more aware of their rights and more willing to challenge decisions. Social media and review platforms have only made this worse.
As a result, HR consultants are risk managers, mediators, compliance guides, advice givers, and headache attractors all in one. It’s a complicated role, but one that does pay off, literally, with the average salary in the US being $67,356 per year, according to Breezy HR.
As you can now tell, legal advice can lead to trouble, but only if expectations aren’t managed. The common advice is to create a contract that doesn’t explicitly promise specific results and has clauses that mean that fault from advice is not on the HR consultant.
Authored by Lucy Roberts.