Human Capital Advisory Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 38.23 Billion |
| Market Size (2029) | USD 48.31 Billion |
| CAGR (2024 - 2029) | 4.79 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Human Capital Advisory Services Market Analysis
The Human Capital Advisory Services Market size is estimated at USD 38.23 billion in 2024, and is expected to reach USD 48.31 billion by 2029, growing at a CAGR of 4.79% during the forecast period (2024-2029).
- The growth of the HR advisory market is influenced by various macro and micro factors. For instance, Economic growth often leads to business expansions, increasing the demand for HR advisory services. Conversely, economic downturns drive demand as companies seek to optimize their workforce and reduce costs.
- Moreover, a heightened focus on talent management and retention in competitive labor markets raises the demand for HR advisory. The rise in remote work and the gig economy necessitates new HR strategies and policies. Changes in labor laws, such as minimum wage adjustments, healthcare mandates, and diversity requirements, also impact the market. Adopting HR technologies like AI, HR analytics, and automation tools requires specialized advisory services.
- An increase in employment rates directly drives demand for HR advisory services. For instance, as organizations expand their workforce, they require substantial talent management strategies to attract, retain, and nurture top talent. HR advisors specialize in performance management, career development, and succession planning.
- Moreover, as companies scale, they often require organizational restructuring or the creation of new frameworks to support their growing staff. In such scenarios, HR advisory services are pivotal, offering insights into organizational design, change management, and cultural integration.
- There are various technological trends that are expected to drive the market. For example, Data analysis assists HR in managing the entire talent lifecycle by looking into competitive benchmarking, competency gap analysis, learning opportunities, workforce patterns, talent demands, etc. The human resource function is expanding from both a technological and an analytics perspective.
- For instance, in May 2024, PeopleStrong, an HR and payroll tech company, teamed up with Google Cloud in a strategic move to drive HR transformation and innovation across Asian businesses. This partnership will see the integration of Google Cloud's advanced AI tools, such as Vertex AI and Gemini models, into PeopleStrong's already robust HR tech platform. PeopleStrong's HR Tech 4.0 platform stands out as India's pioneer HR tech solution, leveraging advanced Generative AI. Boasting over 2,200 open APIs, the platform fosters a seamless HR ecosystem, enhancing employee experiences and administrative efficiency.
- On the contrary, Market growth faces a challenge with the rising reliance on outsourcing agencies. This market involves companies delegating their HR functions to external service providers. Businesses can streamline HR tasks, cut costs, boost efficiency, and lighten their administrative load. Yet, entrusting agencies with critical functions like performance management and employee feedback risks ceding control and could spark employee discontent. While outsourcing HR can bring specialized skills and scalability, it's particularly beneficial for industries such as IT and hospitality.
Human Capital Advisory Services Market Trends
SMEs to Register Significant Growth
- Small and medium-sized enterprises (SMEs) are increasingly relying on human capital advisory services to navigate the complex landscape of human resources (HR) transformation, HR analytics, and technology integration. This trend is driven by several challenges unique to SMEs, including limited internal expertise, resource constraints, and the rapid pace of technological change.
- As SMEs strive to remain competitive, they often lack the specialized knowledge required to effectively manage HR functions and leverage data analytics for strategic decision-making. Human capital advisory firms provide essential support by offering tailored solutions that align with the specific needs and growth stages of these smaller businesses.
- One significant challenge SMEs face is the integration of advanced HR technologies. While larger corporations may have the infrastructure and budgets to adopt new technologies seamlessly, SMEs often struggle with selecting, implementing, and optimizing HR software solutions. These technologies are crucial for automating administrative tasks, improving employee engagement, and facilitating data-driven HR strategies.
- According to the survey, 89% of businesses face challenges with technology integration, particularly smaller enterprises with 0 to 25 employees. This underscores the importance of technical guidance and highlights the risk of falling behind due to inadequate adaptation to industry digitization.
- Additionally, HR challenges and team culture were identified as parallel issues. According to the research, The survey found that 70% of businesses struggle to find suitable team members, despite only 33% being satisfied with their current teams. Additionally, 75% of businesses express a strong desire to enhance company culture and create positive work environments.
- In addition to this, Zenefits, a company that provides HR, payroll, and benefits software, has been instrumental in helping SMEs streamline their HR processes through technology integration. By offering a user-friendly platform tailored to the needs of smaller businesses, Zenefits enables SMEs to handle HR functions more efficiently, freeing up resources to focus on growth and innovation.
- According to the European Commission, there were approximately 24.4 million small and medium-sized enterprises in the European Union in 2023. A further 1.32 million enterprises were small firms, while 202,278 were medium-sized firms. Small and medium-sized enterprises form the backbone of the European economy. These companies comprise around 99.8 percent of all active European businesses, producing almost 52% of the total value added in the EU.
Europe is Expected to Hold Significant Market Share
- The human capital advisory market in Europe is experiencing significant growth, driven by the increasing focus on organizational change and development, as well as effective employee management strategies. Companies across various sectors are realizing the critical importance of optimizing their human resources to achieve competitive advantage and sustained growth in a rapidly evolving business landscape. Organizational change and development services are crucial as businesses seek to adapt to market dynamics, technological advancements, and regulatory changes.
- In November 2023, Cendyn and SiteMinder formed a strategic partnership to enhance revenue management capabilities for over 70,000 hotels. Through this collaboration, Cendyn customers gained access to SiteMinder’s revenue platform, complementing their existing central reservation system (CRS) capabilities. SiteMinder’s revenue platform offers Cendyn’s users the potential to handle their rate plans and inventory through SiteMinder. Moreover, they will have access to SiteMinder’s complete ecosystem of distribution channels, the big ecosystem for the hotel industry, in order to gain a more dynamic mix of revenue streams and increase their speed-to-market.
- In November 2023, Nagarro, a global provider of digital engineering and technology solutions, introduced an enhanced collaboration with UKG, which is a provider of HR, payroll, and workforce management solutions for all people, as part of its strategic technology partner ecosystem.
- Through this collaboration, Nagarro and UKG revolutionized workforce management with Ginger AI integration, simplifying operations and boosting efficiency. Organizations leveraging Nagarro and UKG Pro Workforce Management (formerly UKG Dimensions) can harness the power of Nagarro's enterprise AI platform, Ginger AI, through Microsoft Teams, meeting the world of work where they are every day. Ginger AI simplifies the handling of crucial workforce management functions, eliminating multiple login hassles or platform-switching.
- Overall, the human capital advisory market in Europe is expanding as businesses recognize the strategic value of effective organizational change, employee management, and talent development strategies. By leveraging specialized expertise, these advisors enable companies to navigate challenges, capitalize on opportunities, and foster a resilient workforce capable of driving long-term success in a dynamic economic environment.
Human Capital Advisory Services Industry Overview
The Human Capital Advisory Services Market is highly fragmented with the presence of major players like KPMG, Deloitte, PWC, Boston Consulting Group, and McKinsey & Company. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- November 2023 - Deloitte India and Ramco Systems Limited, a global payroll technology provider, signed a strategic partnership. This collaboration integrated Ramco's advanced payroll platform with Deloitte's specialized advisory and managed services. Together, they committed to providing a comprehensive payroll solution. This solution covers operational services, ensures compliance, offers a seamless user experience, and provides extensive coverage across 150+ countries. All these features are conveniently accessible through a unified payroll platform.
- November 2023 - PwC India announced a strategic partnership with Darwinbox, a Software as a Service (SaaS) based human resource (HR) technology firm, to assist organizations throughout India to revolutionize HR transformation solutions. PwC India and Darwinbox have joined forces to enhance HR transformation solutions for Indian organizations. By leveraging Darwinbox's advanced Human Capital Management (HCM) technology across the entire employee lifecycle, along with PwC India's industry expertise, they aim to drive digital transformations in Indian enterprises.
Human Capital Advisory Services Market Leaders
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KPMG
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Deloitte
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PWC
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Boston Consulting Group
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McKinsey & Company
*Disclaimer: Major Players sorted in no particular order
Human Capital Advisory Services Market News
- May 2024 - PeopleStrong, an HR and payroll tech company, teamed up with Google Cloud in a strategic move to drive HR transformation and innovation across Asian businesses. This partnership will see the integration of Google Cloud's advanced AI tools, such as Vertex AI and Gemini models, into PeopleStrong's already robust HR tech platform. PeopleStrong's HR Tech 4.0 platform stands out as India's pioneer HR tech solution, leveraging advanced Generative AI. Boasting over 2,200 open APIs, the platform fosters a seamless HR ecosystem, enhancing employee experiences and administrative efficiency.
- March 2024 - UKG, a provider of HR, payroll, and workforce management solutions, partnered with Lightcast, a global player in labor market analytics. The collaboration uses artificial intelligence (AI) to enhance skills development and workforce planning. Lightcastbrings a top-tier skills data repository to the table. Paired with UKG's AI-driven solutions, which are honed on a vast dataset encompassing people, work, and culture, this partnership promises to empower organizations using UKG Pro with advanced AI tools for reskilling, upskilling, and professional development.
Human Capital Advisory Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Degree of Competition
4.2.5 Threat of Substitutes
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Economic Growth and the Growing Number of New Businesses
5.1.2 Increased Mergers and Acquisitions
5.2 Market Restraints
5.2.1 Organizations Establishing in-house Advisory Groups
5.2.2 Lack of Talent Due to the Rise of Independent Consultants
5.3 Technology Landscape of Human Capital Advisory Market
6. MARKET SEGMENTATION
6.1 By Service Type
6.1.1 HR Outsourcing
6.1.2 HR Consulting
6.1.2.1 Organizational Change and Development
6.1.2.2 Employee Management
6.1.2.3 Compliance and Ethics
6.1.2.4 HR Transformation
6.1.2.5 Culture and Change
6.1.2.6 Others
6.1.3 Learning and Development
6.2 By Organization Size
6.2.1 SMEs
6.2.2 Large Enterprise
6.3 By End Users
6.3.1 Information Technology
6.3.2 Healthcare
6.3.3 BFSI
6.3.4 Industrial and Manufacturing
6.3.5 Others
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 KPMG
7.1.2 Deloitte
7.1.3 PWC
7.1.4 Boston Consulting Group
7.1.5 McKinsey & Company
7.1.6 Capgemini
7.1.7 Bain and Company
7.1.8 Accenture
7.1.9 Mercer
7.1.10 Korn Ferry
7.1.11 Aon Plc (Aon Hewitt India)
7.1.12 Jombay (CIEL HR)
7.1.13 Ernst & Young Global Limited
7.1.14 Basiltree Consulting Private Limited
7.1.15 Robert Half Inc.
7.1.16 Think Talent Services
7.2 Vendor Positioning Analysis
8. FUTURE MARKET OUTLOOK
Human Capital Advisory Services Industry Segmentation
The scope of the study focuses on the market analysis of human capital advisory across the globe, and market size tracks the demand for human capital advisory services offered by various market players operating in the market. Human capital advisory services encompass HR outsourcing (managed services), consulting, and learning and development. The analysis is based on the market insights captured through primary and secondary research.
The human capital advisory market is segmented by service type (HR outsourcing (HR managed services), HR consulting [organizational change and development, employee management, compliance and ethics, HR transformation, culture and change, others], and learning and development), by Organization Size (SMEs and large enterprises), by end user (information technology, healthcare, BFSI, industrial and manufacturing, and others), and by geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service Type | ||||||||
| HR Outsourcing | ||||||||
| ||||||||
| Learning and Development |
| By Organization Size | |
| SMEs | |
| Large Enterprise |
| By End Users | |
| Information Technology | |
| Healthcare | |
| BFSI | |
| Industrial and Manufacturing | |
| Others |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Human Capital Advisory Services Market Research FAQs
How big is the Human Capital Advisory Services Market?
The Human Capital Advisory Services Market size is expected to reach USD 38.23 billion in 2024 and grow at a CAGR of 4.79% to reach USD 48.31 billion by 2029.
What is the current Human Capital Advisory Services Market size?
In 2024, the Human Capital Advisory Services Market size is expected to reach USD 38.23 billion.
Who are the key players in Human Capital Advisory Services Market?
KPMG, Deloitte, PWC, Boston Consulting Group and McKinsey & Company are the major companies operating in the Human Capital Advisory Services Market.
Which is the fastest growing region in Human Capital Advisory Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Human Capital Advisory Services Market?
In 2024, the Europe accounts for the largest market share in Human Capital Advisory Services Market.
What years does this Human Capital Advisory Services Market cover, and what was the market size in 2023?
In 2023, the Human Capital Advisory Services Market size was estimated at USD 36.40 billion. The report covers the Human Capital Advisory Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Human Capital Advisory Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Human Capital Advisory Services Industry Report
Statistics for the 2024 Human Capital Advisory Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Human Capital Advisory Services analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
