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New report finds HR consulting to be biggest recession casualty
 
 A new survey by
sourceforconsulting.com
has found that the HR
consulting industry in
the UK has shrunk by as
much as 20 per cent over
the last year, making it
the biggest casualty of
the recession so far as
consultants are
concerned.
  
   The report, based on
responses from 20 major
buyers of HR consulting
surveyed between
September and October
2009, also found that
there has been a
substantial shift in the
type of services being
bought, away from
traditional services,
 
 such as organisational
design and change
management, to those
that offer a measurable
return on investment.
  
   Sue Grist, co-founder
and director of
Egremont, a business
transformation
consultancy, who was
among those interviewed
for the report said:
“There’s been a shift to
using consultants to
help save money. When we
sell work now, the
impact we’ll have on
business processes and
costs is front of mind.”
  
   The survey divides HR
consulting services into
 
  
   
 
 
 
 
 consulting but demand
for which is likely to
shrink.
  
   * Potential for
growth
, services that
focus on performance
management and personal
productivity, as
organisations look to
get more from their
employees and their
consultants.
  
   Economic recovery is
unlikely to reverse
these trends, believes
Fiona Czerniawska, joint
managing director of
sourceforconsulting.com
and author of the
report. She comments:
“Our research points to
 
 a ‘generational’ shift
in HR consulting, away
from traditional areas
to focusing more on
performance management.
  
   The future of HR
consulting will see
traditional firms
collaborating, even
merging, with smaller,
more innovative
specialists, in order to
survive. The merger of
Towers Perrin and Watson
Wyatt announced in June,
and the recent
acquisition by PwC of
performance management
consulting firm,
Paragon, is evidence of
this evolving trend.”
 
 three groups:
  
   * Recession
-specific
services,
such as outplacement and
advice on outsourcing
the HR function, which
have grown during the
recession but have
limited shelf-life
beyond it.
  
   * “Past their
peak”
services, such as
organisational design
and capability
assessment, which form
the bedrock of much HR
 
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