Human Resources Consulting Services Revenue Benchmarks
The average human resources consulting services business in the United States generates $3.5M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 7,259 human resources consulting services businesses in the U.S., employing 147,738 workers with an average profit margin of 22.0%. The average employee in this industry earns $109K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Human Resources Consulting Business Actually Do?
Consultants advising on HR strategy, compensation, employee relations, and compliance. Range from single-issue projects (comp study, handbook) to fractional HR leadership.
Who buys: Growing businesses without full HR function, PEOs (Professional Employer Organizations), mid-market HR teams needing specialty expertise.
Average Revenue
$3.5M
per year
Profit Margin
22.0%
industry average
Revenue / Employee
$170K
per year
Total Businesses
7,259
in the US
Est. Owner Income
$759K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$109K
per year (BLS)
Market Saturation
2.2
firms per 100K people
How Much Do Human Resources Consulting Services Charge?
HR consultants charge hourly, project, or retainer — with compensation studies commanding premium.
| Service | Typical range |
|---|---|
Hourly HR consulting | $100–275/hour |
Handbook / policy build-out | $2,500–8,000 |
Compensation study | $5,000–30,000 |
HR outsourcing (per employee/month) | $50–250/employee/month |
Executive search (retained) | 25–33% of first-year salary |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete human resources consulting business plan
A 12-section data-backed business plan for a human resources consulting services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the human resources consulting services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Client-related expenses | $4 | $145K | Software licenses, subscriptions, printing, filing fees, travel billed to clients. |
Wages & benefits | $50 | $1.7M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $193K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $145K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $14 | $483K | Professional liability insurance, continuing education, tech, admin support. |
Net profit | $22 | $759K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
19.09%
openings/year
Closure Rate
14.74%
closings/year
Net Job Growth
+4.04%
annual
Businesses Closed
21,311
in 2023
Firm Count Trend
Should You Start a Human Resources Consulting Business?
Startup Cost
$10K – $75K
Break-Even
1 months
5-Year Survival Rate
60.0%
Related Industries
Frequently Asked Questions
- What does a human resources consulting services business do?
- Consultants advising on HR strategy, compensation, employee relations, and compliance. Range from single-issue projects (comp study, handbook) to fractional HR leadership. Growing businesses without full HR function, PEOs (Professional Employer Organizations), mid-market HR teams needing specialty expertise.
- How much do human resources consulting services charge?
- HR consultants charge hourly, project, or retainer — with compensation studies commanding premium. See the pricing table above for typical rates by service type.
- How much does the average human resources consulting services make per year?
- The average human resources consulting services business generates $3.5M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $759K per year at a 22.0% profit margin.
- How many human resources consulting services businesses are there in the US?
- There are 7,259 human resources consulting services businesses operating in the United States, employing a total of 147,738 workers.
- How much does it cost to start a human resources consulting services business?
- Startup costs for a human resources consulting services business typically range from $10K to $75K, with a 5-year survival rate of 60.0%.
- What is the average salary in the human resources consulting services industry?
- The average employee in the human resources consulting services industry earns $109K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The human resources consulting services industry is actively growing — adding jobs at a net rate of 4.0% per year. New establishments are opening faster than existing ones close (19.1% entry vs 14.7% exit), indicating healthy demand.
Approximately 45% of human resources consulting services businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 21,311 firms in this industry closed permanently.
Employment & Wages
The average employee in the human resources consulting services industry earns $108,860/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 16,091 establishments employing 95,255 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The human resources consulting services industry has grown 150% since 2000 (from 64,966 to 162,559 firms).
See full historical statistics →Compare Human Resources Consulting Services revenue with other industries: