Home :: Media :: Articles Display
Go Back
Cy Wakeman


order cy wakeman products

Consultant Giveaways—How Much Is Too Much?


8/7/2009  By Lin Grensing-Pophal, SPHR 
     

How much should HR consultants give away to prospects, clients or just those who ask? Opinions are strong and range from "absolutely nothing" to "consultants should give freely."

Yes, Give It Away

Cy Wakeman has been called "the Suze Orman of the workplace, with the humor of Ellen Degeneres and the likeability of Rachael Ray." An HR consultant in Sioux City, Iowa, Wakeman says, "In our organization, we tend to give away a lot. Our philosophy is a mentality of abundance. A lot of consultants are really protective of their information or time, but if we can say ‘yes,' we do say ‘yes.' "

Rita Barreto Craig, SPHR, voices a similar sentiment. "Since I started my business, I have always done pro bono work," says the president and founder of The Craig Group, an HR consulting firm in Palm Beach Gardens, Fla.

Mike Schultz, president of Wellesley Hills Group, a marketing consulting firm in Framingham, Mass., believes that doing pro bono work can be especially helpful for new consultants. Schultz says he asks consultants if they could get in front of 10 qualified buyers, how many they think they could win as clients over time. Answers range from 50 percent to 95 percent, he says. "So, I ask them, ‘Why not give them a sample of your service, and then all you need to do is get the repeat business?'

"Ultimately, every consultant wants to resonate with buyers so that the buyers see the value of their services. The strongest way to do this is give buyers the idea of what they're really like," he adds.

But others disagree.

Don't Give Anything Away

Christopher Laurance is an advertising professional, not an HR consultant, but he has some strong feelings about giveaways. "The American economy is a mess because the Internet taught us that ‘everything is free,' " he says.

"Consultants struggle providing knowledge in an economy in which all members believe they are supposed to get knowledge and information for free." The challenge for HR consultants is to demonstrate the value of what they have to offer, increasingly difficult in a world where information is available at the click of a mouse.

In many professions, there is a struggle between those who are providing something free and those who are attempting to elevate the value of the profession as a whole by charging for everything. Generally, those who have more value and experience to offer fall firmly on the side of charging for it.

Alan Weiss, Ph.D., is president of Summit Consulting Group Inc., in East Greenwich, R.I. Even nonprofits, says Weiss, "have a lot of money. They're good at whining. But I've served on six boards, and they hire consultants for cash." Nonprofits aside, he says never give a freebie to a for-profit.

"Consultants should not give away anything," says Laurent Duperval, president of Duperval Consulting in Montreal. "When you give away what you do, you are acting in a subservient manner. If you begin by doing free stuff for a client, then automatically you are seen as a commodity. From that point on, you will be expected to give away stuff or people will try to argue your fees much more often," he says.

What does Duperval do if he is asked to do something for free? "Don't do it. The reason people offer these ‘opportunities' is to feed the consultant's ego or fear."

Some Caveats

Weiss and Duperval, though, offer some caveats, particularly when it comes to community service and marketing.

"It's fine to serve on community boards or give time to charity," says Duperval. "Even public speaking can be done free as a marketing tool." But, he adds, "You have to know why you're doing it. Giving free speeches for marketing purposes is a far cry from giving away free services in the hope of getting more."

Weiss agrees that nonprofits can provide value for consultants who believe in the cause. These organizations, he says, can provide contacts (especially board members), the opportunity to test or try out new material or interventions, and "gold-plated references, testimonials and referrals."

While there are clearly no right answers that will work for all consultants, and each will need to reach their own conclusions based on their practice and their prospects, applying a thoughtful strategy in making these decisions can be helpful.

Thinking Strategically About Giveaways

HR consultants use a number of strategies for determining how much pro bono work is appropriate for them.

Over time, says Craig, "I've had to limit gratis work, and oftentimes I select one or two organizations or fields that I focus on-not unlike what corporations do when developing policies related to corporate philanthropy."

Roberta Chinsky Matuson, president of Human Resource Solutions in Brookline, Mass., says she does a certain amount of pro bono work each year. "But, when the dance card is full, I simply tell the person making the request that my card is full," she says. In other cases, if a cause is particularly important to her, she will charge a reduced rate. "I place the following note on the invoice: ‘Note: Balance due reflects our donation, which is X percent off of our regular rates.' " It's important to note, she adds, that this donation is not tax-deductible.

While Wakeman's philosophy is one of giving freely, she takes a pragmatic approach to pro bono activities, using guidelines to help frame decisions based on the direction and goals of the firm. In addition, she says, she has instituted an application process. "It takes a little bit of work on the part of the people asking, and it's very simple," she says. "We just want them to think more clearly through their goals, and then it gives us a chance to pick the applications that fit where we want exposure or with what our interests or pet projects are."

Ultimately, says Wakeman, her goal is to never say no. "We might say that a request is not a match for the services we give, but I like to always be able to do something for folks. So ... I'll say ‘I can't do that, but what I can do for you is ... .' " Often, what she can do is make a referral or connection to someone else. In this manner, she says, she is able to help "pay it forward."

Lin Grensing-Pophal, SPHR, is a Wisconsin-based business journalist with HR consulting experience in employee communication, training and management issues.




<< Back to list page - Email this Page


 


© 2010 Cy Wakeman. All rights reserved.