5 reasons to use consultants to improve profits

5 reasons to use consultants to improve profits
By Jacqui Tibbits, Director, Consultivation

In our ever changing fast paced world of economics, society & technology service based industries are growing exponentially. One particular profession experiencing rapid growth are consultants. Here, I explain 5 reasons why you should engage a consultant to improve your business operations & most importantly your profit.

1.       Expertise

Consultants generally have an expertise in an area or industry. This enables you to purchase a significant amount of collective human capital in a single individual. Human capital includes an individual’s education, skills, knowledge, attributes & experience. Consultants generally possess years of experience in a specific field & you need to ask, ‘how long would it take & how much investment would it be for my staff to gain those skills & knowledge?’

This expertise can be a catalyst to innovate, cultivate & integrate ideas. In 2014-15, as reported by the Australian Bureau of Statistics (ABS) a lack of skilled staff at 20% is the biggest barrier to business innovation. (ABS, Catalogue 8158, 2016)

2.       Objectivity

Engaging a consultant brings objectivity, neutrality & fresh eyes to your business & workplace. Sometimes, engaging a consultant unfamiliar with a workplace, the processes & people within it can be the catalyst for identifying problems, gaps & opportunities for improvement.    

3.       Affordable

Engaging a consultant can result in a higher return on investment than recruiting a new employee. In the current state of flux & change & reform for many industries a consultant could be a cheaper alternative as there is a cost saving in human resources related tasks such as job descriptions, advertising, interviewing & so forth.  

There is also the indirect cost savings or opportunity cost of employees’ time. That is, rather than being involved in recruiting those employees can be using their time elsewhere in the company contributing to revenue & maximising your business’ profits. There can also be a savings of expenses in inductions & orientation, insurances & superannuation.  Consultants allow for flexibility, fluidity & freedom for organisations.

4.       Change

Attitudes & response to change is as individual as people themselves. Managers, too, can experience a range of emotions & behaviours & have difficulties with planning, implementing & leading others through change. Consultants, on the other hand, can be drivers for change in organisations. Consultants are objective in their actions, do not foster ulterior motives & are contracted to achieve agreed outputs or outcomes. Using consultants can be an effective method of reducing barriers to change; while neutralising & protecting managers particularly when significant change abounds.

5.       Education

Consultants tend to be educators sharing skills & knowledge with others when working for your organisation. This can occur through a state of osmosis when working together.  Additionally, consultants can often be contracted to coach or mentor staff; & develop & deliver tailored training to staff & volunteers.  Therefore, engaging a consultant can be an affordable way in which to train your workforce particularly if the consultant is an expert in a particularly field or industry relevant to your needs.

Consultants can drive innovation & change allowing for flexibility, fluidity & freedom for your organisation and most importantly be a cost effective, profit maximising pathway in a time of business uncertainty.

Jacqui Tibbits is the Director of Consultivation,  an independent consultancy business focusing on business management, operational efficiency & performance improvement. With a passion in supporting organisations & individuals to flourish Consultivation thrives in helping others with managing change.