Human Resources Marketing Plan

Human Capital Maximizers

Situation Analysis

Human Capital Maximizers is a start-up company just beginning operations.  Marketing efforts will be critical to ensure success and profitability.  HCM offers a wide range of HR consultancy services.  The basic market need is a HR firm to offer in-house like services with flexible compensation structures taking into account the fact that many start-ups are cash poor, yet are in the need of professional HR services.

Market Summary

HCM possess reliable information regarding the market and common attributes of the sought after customers.  HCM will leverage this information to better understand who will be served, their specific needs, and how HCM can better communicate with them.

Market Needs

HCM is providing its customers with a wide selection of HR consultancy from a seasoned professional.  The market need is professional HR services for start-up companies with flexible payment options, recognizing the precarious nature of a start-up.  HCM seeks to fulfill the following benefits that are important to their customers:

• Selection: A wide range of HR services are offered.
• Accessibility: HCM is able to offer these services to companies throughout the Portland and Vancouver metropolitan areas.
• Customer service: HCM recognizes the fact that outstanding customer service is needed to survive in today's competitive business environment.
• Competitive pricing: HCM's rates are competitive relative to the other service providers in the area.

Market Trends

The market trend in professional services, particularly HR is to outsource the services.  The advantage of outsourcing is the reduction in the need for upfront capital, a scarce resource.  Additionally, outsourcing services allows a smaller company to enjoy the same level of service that at one time was only available to larger companies.  The outsourced service industry effectively allows smaller companies to more easily compete with larger companies that have a larger resource base.

Market Growth

The HR consultancy industry is a $900 million dollar industry that is growing at 12% a year.  Within the last three years the industry has exploded, fueled primarily by the demand created by start-up companies who are in need of HR services.  As their size scales rapidly, they do not have the capital for an in-house staff.

SWOT Analysis

The following SWOT analysis captures key strengths and weaknesses within the company, and describes the opportunities and threats facing HCM.

Strengths

• Strong relationships within the start-up community in Portland and Vancouver.
• Seasoned industry experience.
• Unusually flexible compensation programs.
• Superior attention to detail, and customer satisfaction.

Weaknesses

• Lack of brand awareness due to the newness of the company. 
• A limited marketing budget to develop visibility.
• Limited billable hours to pursue all opportunities due to HCM having only one professional on staff initially.

Opportunities

• Growing market with a significant percentage of the market still unaware of HCM. 
• The possibility to cash in on client's success.
• The ability to get cutting edge experience by helping start-up companies transform themselves into seasoned companies.
• The market trend toward outsourcing.

Threats

• A change in the capital market that makes it difficult for start-ups to flourish.
• A change in the legal environment that creates increased legal liability for outsourced HR companies.
• A national HR firm that enters the Portland market.

Competition and Buying Patterns

• Large consultancy firms and franchises: there are several of these firms that offer a wide range of consultancy services. These firms generally have top-quality services and bill out at the correspondingly top-of-the-market rates.
• Small independent firms: these firms typically have one office that serves a general area, and bill out at market rate. Some will specialize in one or a few different areas within HR, while others offer a wide range of areas of expertise.
• Independent contractors/consultants: these people are individuals who do HR work as an independent consultant. The services they offer run across the board.

The buying patterns for the industry range from company to company. Larger companies will typically go with the larger firms because of name recognition. Smaller companies will go with whom they know, or can afford.

Service Offering

Human Capital Maximizers provides human resource consulting to emerging companies in the Portland/Vancouver market.  Human Capital Maximizers will charge a below-market rate and take stock options in the company. Human Capital Maximizers will provide consulting for the following service areas:

• Human resource management.
• Organizational management.
• Professional development.
• Employee relations.
• Labor relations.
• Benefits and compensation.
• HR policy and procedure.
• Executive search.
• Sexual harassment.
• Position classification.
• Personnel management systems.
• Performance evaluations.
• Diversity.

The pricing structure will either be an hourly rate or a per project fee. Theses options will be settled in negotiations with the client. In general, Human Capital Maximizers is willing to be as flexible as possible. After the rate has been established, discussions regarding the cash/equity mix can be discussed.

Keys to Success

• Professionalism.
• Flexibility.
• Insight.
• Customer attention.

Critical Issues

Human Capital Maximizers is still in the speculative stage as a HR consultancy.  Its critical issues are to continue to take a modest fiscal approach, and maintain a sufficient cash balance, not taking too much equity in companies so if all of the companies HCM has equity in tank, HCM themselves is not sunk.