The Consultation Competency Explained
Consultation is one of the nine behavioral competencies in the SHRM Body of Applied Skills and Knowledge (BASK), and it represents a fundamental shift in how modern HR professionals operate. Rather than functioning as a transactional service department that processes paperwork and answers policy questions, today's HR professionals are expected to serve as internal consultants who provide expert guidance, analyze problems, and recommend solutions that drive organizational effectiveness.
The SHRM exams test consultation skills through situational judgment items that assess your ability to diagnose problems, analyze information, recommend solutions, and guide stakeholders through implementation. Both the SHRM-CP and SHRM-SCP exams include consultation questions, though the complexity and strategic scope differ between the two levels.
The Consultation Process
Effective HR consultation follows a structured process that parallels the approach used by external management consultants. Understanding this process is essential for answering exam questions correctly and for practicing effective consultation in your daily work.
Problem Identification and Needs Analysis
Every consultation engagement begins with understanding the problem. This requires active listening, asking probing questions, and resisting the temptation to jump to solutions before fully understanding the situation. On the SHRM exam, questions often test whether you can distinguish between symptoms and root causes. For example, high turnover in a department is a symptom. The root cause might be a toxic manager, below-market compensation, limited growth opportunities, or a combination of factors. Effective consultation requires diagnosing the root cause before recommending solutions.
Needs analysis tools that the SHRM exams reference include gap analysis (comparing current state to desired state), stakeholder analysis (identifying who is affected by and who can influence the situation), data analysis (reviewing relevant metrics, surveys, and records), and benchmarking (comparing the organization's practices to industry standards).
Solution Development
Once the problem is understood, the HR consultant develops potential solutions. Strong consultation practice involves generating multiple options rather than recommending a single predetermined solution. Each option should be evaluated based on its likely effectiveness, cost, feasibility, timeline, and potential risks or unintended consequences. Presenting options with a clear recommendation, rather than a single take-it-or-leave-it proposal, demonstrates analytical rigor and respects the stakeholder's decision-making authority.
Recommendation and Presentation
How you present your recommendation matters as much as what you recommend. Effective HR consultants tailor their communication to their audience, using data and business language with executives, practical examples with line managers, and policy context with legal and compliance stakeholders. The SHRM exams test your ability to select the most effective communication approach based on the audience and situation.
Implementation Support
Consultation does not end with the recommendation. HR consultants support implementation by developing action plans, establishing timelines and milestones, identifying potential obstacles, and monitoring progress. On the exam, answers that include follow-up and measurement are typically stronger than those that end with the recommendation.
Advisory Skills vs. Directive Approaches
A critical distinction tested on the SHRM exams is the difference between advisory and directive approaches to consultation. Understanding when each is appropriate is key to answering situational judgment questions correctly.
Advisory approach: In most situations, the HR consultant's role is advisory. You analyze the situation, present options, make a recommendation, and support the stakeholder in making their own decision. This approach preserves the stakeholder's autonomy and builds their capability to handle similar situations in the future. The advisory approach is generally the best answer on the SHRM exam unless there is a compelling reason for a more directive approach.
Directive approach: In some situations, a directive approach is necessary. When legal compliance is at stake, when employee safety is threatened, or when organizational policy clearly dictates a specific course of action, the HR professional may need to be more directive. For example, if a manager wants to terminate an employee in a way that would violate the ADA, HR should not simply "advise" against it. HR should clearly communicate that the proposed action cannot proceed as planned and explain why.
The SHRM exams frequently test this distinction by presenting scenarios where the candidate must determine whether an advisory or directive approach is more appropriate. The key is recognizing when legal, safety, or ethical considerations require a more direct intervention versus when the HR professional should influence and advise while respecting the stakeholder's decision-making authority.
Building Consulting Relationships
Effective consultation depends on strong relationships with stakeholders across the organization. The SHRM exams test your understanding of how to build and maintain these relationships.
Establishing trust. Stakeholders will only seek your guidance and follow your recommendations if they trust your competence, judgment, and intentions. Trust is built through consistent reliability, honest communication, demonstrated expertise, and a genuine commitment to the stakeholder's success rather than just HR's agenda.
Managing expectations. Clear expectations about timelines, scope, and outcomes prevent misunderstandings and protect the consulting relationship. When a manager asks for help with a complex issue, clarify what you can deliver, when you can deliver it, and what you need from them to be effective.
Maintaining boundaries. Internal HR consultants must balance accessibility with professional boundaries. Being a trusted advisor does not mean being available 24 hours a day for every minor question. Setting appropriate boundaries helps you manage your workload and ensures that stakeholders develop their own capabilities rather than becoming dependent on HR for routine decisions.
Explore more about relationship management and leadership competencies on the SHRM exams.
Consultation at CP vs. SCP Levels
The consultation competency is tested at different levels of complexity on the SHRM-CP and SHRM-SCP exams.
SHRM-CP: Consultation questions at the CP level typically involve advising individual managers on specific employee relations issues, implementing HR programs and processes, providing guidance on policy application, and supporting managers through common HR situations like performance management, hiring, and discipline.
SHRM-SCP: Consultation questions at the SCP level involve advising senior leadership on strategic HR issues, designing organizational change initiatives, providing guidance on complex situations involving multiple stakeholders, and evaluating the effectiveness of HR programs and recommending improvements.
Use our diagnostic tool to assess your consultation skills at the level appropriate for your target certification.
Start Practicing Today
Consultation skills are tested extensively on the SHRM exams and are among the most valuable capabilities you can develop as an HR professional. The ability to diagnose problems, develop solutions, and guide stakeholders through implementation is what transforms HR from a support function into a strategic partner.
Sign up for free to access practice questions that test your consultation skills through realistic workplace scenarios. Our platform provides detailed explanations that help you understand the reasoning behind effective consultation approaches, preparing you for both the exam and the advisory role you play in your organization.