For HR professionals considering their next career move, the question of whether to remain in employment or take the leap into becoming a self-employed HR consultant can be a daunting one. Both career paths offer unique benefits and challenges, and the right choice depends on your personal goals, working style, and aspirations for the future. In this article, we’ll explore the key differences between employment and self-employment in HR, helping you determine which path aligns best with your ambitions.
The security and structure of employment
For many HR professionals, employment within a company offers stability, structure, and a predictable career path. Here are some of the main advantages of staying in employment:
1. Financial security
One of the biggest draws of employment is the certainty of a regular salary, paid holidays, pension contributions, and other employee benefits. If financial stability is a key priority for you, employment may provide the security you need. Additionally, some organisations offer performance-based bonuses, private healthcare, and other perks that contribute to overall financial well-being.
2. Support network and resources
Working within an organisation means you have access to internal resources, colleagues, and leadership support. Whether it’s HR software, administrative assistance, or collaboration with other departments, being part of a company often provides a ready-made infrastructure to help you deliver your role effectively. You also benefit from peer support and mentorship, which can be invaluable for career growth and navigating complex HR issues.
3. Career progression
Employment typically offers a structured career path, with opportunities for promotions, salary increases, and professional development. Larger organisations often provide training programmes, leadership development courses, and opportunities to specialise in niche HR areas such as talent management, employee relations, or organisational development. If climbing the corporate ladder appeals to you, staying in an employed role may be the right fit.
4. Defined responsibilities
When you’re employed, your role and responsibilities are generally well-defined. You’re expected to focus on specific HR functions without the added pressures of business development, marketing, or financial management. This allows you to concentrate on your area of expertise without the distractions of running a business.
While employment has many advantages, some HR professionals find that it doesn’t fully align with their aspirations. That’s where self-employment comes in.
The freedom and flexibility of becoming a self-employed HR consultant
For those seeking autonomy and variety, self-employment as an HR consultant can be an exciting and rewarding alternative. Here are some of the key benefits:
1. Control over your career
When you work for yourself, you decide how, when, and where you work. You have the flexibility to choose the clients you work with, set your own hours, and develop your consultancy in a way that suits your personal and professional goals. This means you can specialise in areas you are passionate about and create a business that reflects your values and expertise.
2. Earning potential
Unlike employment, where your salary is often capped by company budgets, self-employment allows you to directly benefit from your hard work. You set your rates, take on as many clients as you want, and ultimately have greater control over your income. While building a client base takes time and effort, successful HR consultants often find that their earning potential exceeds what they could achieve in employment.
3. Variety and challenge
Many HR professionals thrive on the variety that comes with consultancy work. Instead of focusing on a single organisation’s HR function, you’ll work with multiple clients, each with unique challenges and needs. This keeps your work fresh and stimulating, offering exposure to different industries, company cultures, and HR challenges that enhance your expertise.
4. Work-life balance
For many, self-employment offers a better work-life balance. You can structure your work around personal commitments, avoid long commutes, and take time off when you need to – without waiting for annual leave approvals. This can be particularly beneficial for those with family or caregiving responsibilities, or for individuals who simply want more control over their time.
However, self-employment isn’t without its challenges. It requires resilience, self-discipline, and the ability to market yourself effectively. You must be prepared to handle administrative tasks, manage client relationships, and stay on top of industry trends. That’s why some HR professionals considering self-employment explore franchise opportunities like face2faceHR, which provides a structured support system to help consultants succeed.
Is HR consultancy right for you?
Before making the leap into self-employment, ask yourself:
- Do I enjoy working independently and managing my own workload?
- Am I comfortable with the uncertainty of variable income?
- Do I have the motivation and discipline to market my services and find clients?
- Am I excited by the idea of working with a range of different businesses?
- Do I have a strong professional network, or am I willing to build one?
- Am I confident in my ability to stay up to date with HR legislation and best practices?
If the answer to these questions is ‘yes’, HR consultancy could be the perfect career move for you.
Making your decision
Choosing between employment and self-employment is a deeply personal decision. While employment offers security and structure, self-employment provides freedom, flexibility, and the potential for greater rewards. If you’re considering taking the leap into consultancy but want the reassurance of a supportive framework, a franchise like face2faceHR could be the perfect solution.
To learn more about how face2faceHR can support your HR consultancy journey, download our prospectus, or get in touch for an initial, informal chat!