Use Your In-house Labor Team or Hire a Consultant? Making the Right Decision Every Time.
Effective Labor Strategies: Weighing In-house Teams and Outside Consultants
Article By Harrison Rose Tate
External labor consultants are not inherently better. They’re just positioned differently. That position matters when stakes are high and decisions need to be made without influence from internal dynamics.
There could be no finer line to walk in business than to know when to make the shift to outside consultants. I spoke at length with seasoned professionals from both sides. Names have not been included to protect anonymity.
While there is no one-size-fits-all approach, here's their collective input on making what is always a difficult call.
Too Close for Comfort?
Familiarity with people, past decisions, or organizational norms can be an advantage, but it's that same familiarity that can also make it harder.
In-house labor relations employees report that it's more difficult for them to even suggest, let alone get implemented, disruptive but necessary strategies. Plus, who really wants to risk their job by telling hard truths?
External consultants don't have to play politics. They aren’t influenced by long-term relationships. They won't readily accept that it's "just the way things are."
They're trained to come in, look at the facts and provide clear direction based on what is happening (not what used to happen or what people hope will happen), then move on.
The Black Hole
Researching this topic, I asked around. There was one universal consensus all the internal labor relations employees I spoke to shared. As one guy put it, we'll call him Tony (names have been changed), "I go to the Director of Labor Relations with real issues I hear about on the floor. He goes to the VP. She shrugs and says, "Yeah, I know they got that wrong. It's a mess."
He paused, "I give them credit for acknowledging that the company made mistakes, but I feel like that's as far as it gets."
Putting an external team on the case, even for a short time, can give visibility to issues that may not be making it to the inboxes of the right individuals.
Bandwidth
Even the most capable in-house teams are stretched thin. During moments of labor unrest or transition, that lack of capacity becomes a workload issue. Missing anything can be problematic. An external consultant can step in without needing to be brought up to speed on everything else that’s going on. They’re not managing other priorities. They’re focused only on the task at hand.
Cost
Keeping things in-house is usually a more cost-effective way to do things. Unless your labor relations needs are inconsistent. Then, it might be better to adopt a pay-as-you-go approach.
Don't Rock the Boat
Any decent labor consultant has worked in dozens of industries, companies, and union situations in any given year. They’ve seen emerging trends before they hit your industry, and they’re fluent in handling high-pressure, time-sensitive scenarios with legal precision and strategic neutrality. In short, they're used to being in the hot seat. They expect volatility. They're trained to handle it legally, and with the lightest possible footprint.
When the Bartender Knows More Than Your Boss
People tend to say more when they think you won’t be back. Employees generally speak more openly with outsiders. Some people are reluctant to talk to that "guy from corporate."
The assumption is that there’s less risk. Openness can help identify problems earlier, and prevent the kind of reputational or legal fallout that happens when the situation is misread.
Divide and Conquer
If you need a tactical team to swoop in and really move the needle, your on-staff experts might not be ideal. All the great reasons you hired them, ability to build relationships, knowledge of company culture... those things that make them great are also the reasons they can't come in with a high-octane approach. Consultants are rarely 9 to 5. Four-hour naps between 2nd and 3rd shifts are commonplace. They're there to make waves, and will work night and day to make a difference.
So what's the answer to this very difficult question? When should outsiders be brought in to assist your talented in-house team to achieve their goals?
The simple answer is, whenever they can bolster your internal team. The best outcomes happen when internal knowledge and external strategy work together. Familiarity is valuable. So is distance. Knowing when each is needed is an essential part of good leadership.
The “We Brought In a Guy” Effect
If the right message is communicated, bringing in consultants can send a message that the conversation is being heard, and taken seriously. Their presence alone can reset expectations and tone.
When the wrong message is sent, both insiders and outsiders can be easily viewed as coercive. Whatever you decide, make sure your message is on point. In labor relations, strategy matters.
