HR consultant vs HR software: pros and cons for Canadian businesses

Effective human resources (HR) management is a cornerstone of organizational success. It helps you manage your relationships with employees in the best way while ensuring you’re complying with all workplace laws and employment standards.

Small employers often choose to handle HR themselves, but as the business grows, so do the demands on effectively managing your people and your employment processes.

This often prompts the crucial decision between hiring an internal HR specialist, engaging an HR consultant, or implementing a wraparound HR platform like MyHR.

This blog post looks at the benefits of HR software vs HR consultancy, providing a comprehensive breakdown of why an HR platform often emerges as the superior choice for growing businesses.

TL;DR HR consultants suit one-off, complex issues and charge hourly rates, typically $100 to $350+ per hour in Canada. HR platforms like MyHR combine fully-featured HR software with on-demand HR advisory for a fixed monthly fee, which gives businesses with ongoing HR needs complete coverage.

What's the difference between an HR platform and an HR consultant?

Platforms like MyHR provide a comprehensive digital system for managing HR tasks, from creating and maintaining employment records to guiding performance, tracking leave, and addressing employee issues. Because the platform is cloud-based, tools and documents can be accessed at any time, from any place.

In addition to the platform workflows, MyHR’s advisory team provides expert support and guidance on processes, policy, and managing tricky situations.

On the other hand, HR consultants typically provide professional advice on key HR processes - such as recruitment or restructuring - legal compliance and risk-management. Using an HR consultant or lawyer for ad-hoc HR advice requires input and effort each time you need it, and is dependent on their availability. You may also have to wait while they attend to your issue and send responses.

How much does an HR consultant cost vs HR software?

HR consultants typically structure their fees by either charging hourly rates, project-based flat fees, or a monthly retainer (for longer-term support). Rates vary depending on levels of professional experience and expertise, and can also result in extra or hidden charges for strategic or complex work.

Pricing for HR software is typically calculated on a per-employee per-month (PEPM) or monthly subscription basis. Larger organizations may sign up on a modular (pay-per-feature) basis or obtain a custom enterprise quote that providers may not offer to smaller businesses.

MyHR offers a transparent pricing structure, without hidden fees or unexpected costs. With clear subscription plans based on company size, you can budget effectively and allocate resources strategically.

Read our in-depth article on HR platform pricing.

The difference between proactive and reactive HR

The cost of HR consultants can create barriers, with employers reluctant to engage them for anything but crucial workplace issues or when something has gone wrong in the employment relationship. The HR consultant will typically only respond to the matter they have been asked to resolve.

MyHR provides complete oversight and guidance on all HR matters, over the entirety of the employment lifecycle. From the HR health check provided on sign-up to the ongoing customized support, you can rest assured your people processes and documentation are efficient, fit-for-purpose, and legally compliant with all current legislation.

Consistent support and expertise

HR consultants may not always be on-hand, and you are often reliant on one person who is familiar with your business and its systems.

MyHR has a team of experienced HR professionals ready to provide consistent, dedicated support whenever you need it - whether troubleshooting technical issues or providing HR advice on an employment matter or company documentation.

There are no extra charges for the on-demand support, eliminating the need to negotiate additional fees or worry about exceeding consulting hours.

When does it make sense to hire an HR consultant instead?

Even if you have HR systems in place, there may be times when it’s advantageous to engage an HR consultant. Typically, this will be for complex problems that need highly specialist knowledge or in-person support, e.g.:

Change management, leadership development, or critical meetings or investigations where the consultant can come to the workplace to provide support, meet people, get to know the company culture etc.
Executive recruitment campaigns, health and safety reviews, or payroll audits that require specialized expertise that the HR software provider may not cover.
Representing the customer at mediation, labour relations board or employment standards tribunal hearings etc.

Can HR software replace an HR consultant?

Most HR platforms provide systems and tools for effectively managing the employment relationship, but without the oversight of experts who know HR and local employment legislation inside out, you may still need a consultant or lawyer to help you navigate the complexities of managing your people.

MyHR offers the best of both worlds: a powerful, easy to use HR platform and truly seamless on-call HR support. MyHR’s team of local employment professionals act as your HR department - providing advice and solutions tailored to your business. Whether you need assistance to fill a role, take disciplinary action, or safely end an employment relationship, MyHR gives you the tools and guidance to handle things with confidence. All for a simple, monthly fixed fee.

Comparing HR consultant offerings vs an HR platform

MyHR platform	HR consultant
Combination of HR software and HR advisory service to provide a wraparound HR platform.	Provides professional advice and recommendations but not an HR system.
Software, workflows, and self-service tools to automate and centralize recurring HR processes	Proposes solutions to complex or one-off HR challenges.
Ideal for any business with ongoing HR administration and advisory needs.	Suitable for businesses of any size needing specialized expertise.
Always available	Engaged as needed or on a project basis
Monthly or annual subscription (fixed fee for employers with 20 employees or per-employee basis for for companies with 21+ staff)	Hourly, daily, retainer, or project-based fees
Easily scales as headcount grows	May require additional consultant time (and cost) as needs increase
Implementation, configuration, and user training overseen by customer onboarding team	Minimal technology setup; relies on consultant engagement for advice or project work
Employee self-service, e.g. to access documents, request leave, or update details.	No – consultant works with managers or HR leaders
Comprehensive creation and distribution of tailored documentation and company policies.	Drafts, reviews, and customizes policies as needed.
Interprets legislation, advises on risks, and creates compliant HR procedure and documentation. Automatic updates when laws change.	Interprets legislation, advises on risks, and helps develop compliant practices.
Automated employee onboarding and performance review tools, with expert advice to ensure best practice.	Assists with hiring and interview strategy, and can advise on performance issues and improvement.
Built-in dashboards, accurate employee data, and workforce reporting.	Interprets workforce data and recommends actions.
Securely stores employee records and documents.	Reviews and creates documentation but doesn't typically store it.
Integrates with leading payroll, applicant tracking, and instant messaging systems.	Can advise on payroll policy and oversee recruitment but doesn't handle tasks.
Automation saves administrative time and reduces data-handling errors.	Typically requires internal resource to complete HR tasks

MyHR takes care of HR so you can focus on building the business

In navigating the complexities of HR management, the choice between MyHR and HR consultants is pivotal for business growth. While consultants can offer expertise on selected issues, MyHR stands out as a far more cost-effective option. With constant platform access, transparent pricing, consistent support, and on-demand assistance, you have a virtual HR department at your fingertips.

By embracing MyHR, businesses can streamline operations, mitigate risks, and focus on driving innovation and growth. Make the informed choice for your evolving HR needs.