What Is a Consultant?
You may be wondering about this profession. What is consulting? What does a consultant do? Consultants are paid to share their expertise and knowledge to help businesses attain goals and solve problems. Businesses often hire consultants to supplement their staff and save the costs of hiring a full-time employee. As a person new to the company or organization, consultants view the situation from a fresh perspective. Because a consultant isn't beholden to any particular corporate culture, co-worker scrutiny or morale, consultants can act as the catalyst for change.
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While there are no degree requirements for a consultant, they do need to have vast knowledge and experience in a particular field. In addition to expertise, a consultant should have a track record of past accomplishments. Individuals with higher levels of education and experience will generally receive greater compensation for their services. An undergraduate or graduate degree related to the field will enhance consultant job and salary outlook. Consulting is a broad area of interest, and, from businesses to personal services, there's a consulting opportunity for practically every industry.
| Degree Level | None specified; degree can be beneficial |
| Degree Field(s) | Chosen field of expertise |
| Licensure/Certification | Varies by field |
| Experience | Vast knowledge and experience in a particular field |
| Key Skills | Logical reasoning, leadership, communication, ingenuity, and ability to work well with others |
| Job Outlook (2019-2029)* | 11% growth for management analysts 7% growth for human resources specialists |
| Median Annual Salary (2020)** | $74,356 for human resources consultants $78,847 for information technology (IT) consultants $87,720 for management consultants |
Source: *U.S. Bureau of Labor Statistics, **PayScale.com
What Is Consulting Work?
Consulting work can vary depending on the industry in which a consultant is working and based on the specific field of expertise. Fixing or improving a particular component of a client's business is the broadest duty for which consultants are hired. Consultants may sometimes be asked to teach a business's employees how to manipulate a new software program or some other skill that increases productivity or generates more revenue. They're also expected to provide advice, make recommendations, and excel at problem solving. Consultants are often used prior to, and during, the start-up of a new business or to re-energize a failing business. Consultants are also brought in when a business needs reorganization, including the termination of individual employees or entire departments. A client will retain a consultant's services until the goal or obligations of the particular endeavor have been met. The time period for consultancy can vary in length, depending on the needs of the client and on any unforeseen problems or additions to the project for which the consultant was hired.
Successful consultants derive their skill set from a combination of learned techniques acquired from higher education and, to a lesser degree, innate personality traits. Consultant skills include the following:
- Logical reasoning
- Leadership
- Communication
- Ingenuity
- Ability to work well with others
What Is a Consulting Firm?
A consulting firm is an independent organization that helps various industries to meet their goals, mitigate challenges, and solve problems. Consultants in a given firm generally have expertise in a particular area and are contracted accordingly. Wondering what industries hire consultants? The answer is all of them. There are virtually no industries that do not have need of consultants at some stage. Because they are ubiquitously needed, consultants often specialize in a specific industry or area in order to work with a particular type of client. Finance, engineering, healthcare, human resources, and politics are all areas in which consultants can specialize.
Benefits and Challenges of Consulting Work
Consulting can be an excellent job for those who like a challenge, who want to approach something new each day, and who have a good understanding of the needs of their field. It can be a rewarding career because it is focused on solving problems creatively. Because consultants are often self-employed or contractors, they can have a degree of employment insecurity that may be challenging for some people. Consultants also need to keep up with news in their field as much as possible in order to be up-to-date in their approaches.
Job Outlook and Salary
Earnings vary depending on the field of consultancy and whether a consultant works for a large company or is self-employed. Earnings can be high for successful self-employed consultants, while company employees enjoy possible additional compensation such as profit sharing, bonuses, stock ownership, and health benefits. Salaries for consultants also vary depending on area of expertise. For example, according to PayScale.com, in 2020, the median annual salary for human resources consultants was $74,356, for information technology (IT) consultants it was $78,847, and for management consultants it was $87,720. The BLS projected the number of jobs for management analysts will grow by 11% from 2019-2029, while jobs for human resources specialists will grow by 7% in the same time, which is still faster than average.
