Episode 30: What should your HR consultancy's 'service ladder' look like?
Hey! James here. Welcome to this week’s podcast episode.
In this week's Main Event, we're going to be talking what a service ladder is and what yours should look like.
And in today's thought of the week, I want to lovingly remind you to take your own advice as an expert HR consultant.
So let's jump straight in.
Transcription below:
Main event:
When it comes to selling HR...
Most HR consultants I know go into a business and say that they work in a completely bespoke way...
And they then try to sell this big chunk of HR (and as many hours) as they can at director level.
You're effectively asking new clients to take a HUGE leap of faith at the very start of your relationship...
When realistically, they don't know you and trust you.
And for me, this is completely the wrong approach and a MASSIVE sales killer.
So, what should you do instead?
Well, first, you should think of your services organised via a ladder.
I like to call this a service ladder, other people call this a value ladder, while other people may call this a service stack.
Different names for the same thing, really, but you get what I mean.
Once you've done that, you then need to review how you're asking clients to join your service ladder...
And if you're providing the path of least resistance to becoming a client.
For most consultants, there's often a huge gap of services at the start of their service ladder and this is why they may struggle to get new clients.
So that's why, in today's main event, I'm going to talk you through the concept of a service ladder and what yours should look like.
Helping you to market your consultancy, get more appointments booked in the diary and most importantly, sign new clients, more easily.
***
So let's get started by talking more about the concept of a service ladder and why it's really important to keep in mind.
Think about dating.
You don’t meet someone for the first time and immediately ask them to marry you.
That would be weird, right?
Instead, you start small.
Maybe you'll ask for their number.
You'll then have a few chats.
You'll then go on a nice easy date - maybe a coffee, walk or dinner if you're feeling brave.
And then you see how it goes and the relationship naturally develops from there.
Business relationships work in the same way.
Most HR consultants make the mistake of asking business owners to jump straight into a long-term retainer or high-ticket project before any trust has been built.
But that’s like proposing on the first date - it’s too much, too soon.
***
A Service Ladder is a structured way of offering your services step by step, allowing clients to start with something small and gradually work their way up to your high-value, premium services.
At the bottom of the ladder, you have easy, low-risk services that require minimal commitment.
And once they’re on your ladder, it's easier to get them to spend more with you more often.
So, if you want to get more clients, more easily, you need to think about how you're asking business owners to join your service ladder.
***
Which brings us nicely onto talking about the importance of entry level services and products.
In order to understand what entry level services and products business owners need...
You need to organise the different levels of service you provide.
And you can do this using my HR Service Pyramid framework.
So, the HR service pyramid framework break's HR down into 5 key levels.
At the bottom of the pyramid, you have Admin, so this is all the admin stuff, HR software and compliance that business owners have.
You then have Advisory, which is the day-to-day advice business owners need.
Then you have Management, which is the day-to-day operational stuff.
Next, you have Director, which is the strategic stuff.
And finally, you have your Specialist services at the top.
***
And when it comes to selling HR, I advise my clients to flip the HR Service Pyramid and this becomes your funnel.
AND the structure of your service ladder.
Using this framework, it makes sense that your entry level services need to answer the compliance and administrative jobs that business owners have.
Examples of this could include:
- A compliance checklist or risk assessment (I'm actually working on creating something like for you at the moment)
- An HR Audit (again, I'm in the process of creating a new video programme on how to package up and sell an HR Audit)
- Contracts, policies and handbooks
- And HR Software like Breath, Sense or Bamboo in the US.
***
For me, these are GREAT entry level services.
They're answer the first jobs that business owners have.
They're great value for money.
They're easy to market.
They're easy to sell.
And they make it easy for business owners to climb onto the first rung of your service ladder.
***
So if these are entry level products, then what's next on your service ladder?
Well if we think back to the HR Service Pyramid, the next level is HR Advisory.
So this is where I would try to sell your subscription based advisory or peace of mind package which answers the first-line, day to day questions that business owners and their employees have.
The next level is HR management...
This level is really about business owners outsourcing their day-to-day, operational HR requirements to you.
The next level is HR director...
So this is about you, working with the business owner or Senior leadership team as a strategic partner.
And then you have your specialist projects at the top which could be anything from Mergers and acquisitions, to culture to change management.
***
So what actions should you take away from this podcast episode?
Well, the first thing I'd like you to arrange your current services via the HR Service Pyramid to create your service ladder.
I'd then like you to review your service ladder to improve how you're asking business owners to join it.
And this might focusing more of your attention on entry level products like a compliance checklist, HR Audit, HR software and your subscription based advisory package.
***
Like I said earlier, I'm currently working on a compliance checklist and HR Audit course for you.
But to learn more about the HR Service Pyramid and get templated, subscription based admin and advisory packages then please check out my flagship video programme:
"How to package up and sell HR to make more money"
Go to my website, thehrmarketingguy.com and click on the video prorgamme tab at the top to learn more.
And as always, if you have any questions about your service ladder or marketing then please feel welcome to get in touch and let's book in a chat.
Thought of the week:
As an HR consultant, you are a crucial strategic partner for business owners.
Every day, you advise business owners on how to achieve their goals and protect their future by leveraging their greatest asset; their people.
You talk to them about contracts, notice periods, succession planning, mitigating risk, organisational design, total rewards, performance management, and L&D.
All critical areas that help them drive growth, reduce risk, and save costs.
But when it comes to running and growing your own consultancy...
I’ve spoken to so many HR consultants who - ironically - are forgetting to take their own advice.
And their time is getting sucked up firefighting what's going on, instead of working ON the business and driving it forward.
***
I suppose it's like me, as a marketer, expecting my business to grow while doing zero marketing.
It just doesn’t work.
***
So in today's thought of the week, I want to lovingly remind you to take your own advice and be your own consultant.
And here's your action plan:
1. Schedule a Strategy Session for Yourself
Block out time in your calendar, just like you would for a client with no distractions.
2. Ask Yourself: What Would I Advise a Business Owner in My Position?
Be honest. Where are the gaps in your consultancy that need immediate attention?
3. Write down three key areas to focus on
Even though there may lots of things you need to do, you and I know that it's important to not overwhelm your clients.
So again, take your own advice and give yourself just 3 things to work on that will have the biggest impact.
4. Create an action plan for yourself
So what's the one thing you can implement this week and how are you going to get the other stuff done?
5. Delegate what you can
As business owners, we always take on the responsibility to get stuff done.
But maybe there is something you can deleate to someone else?
And finally 6, hold yourself accountable
Whether it’s setting deadlines, checking in with a mentor, or getting external support—treat you and your business with the same level of care as you would your clients.
***
I think this is a really powerful thing you can do for yourself and for your business, so give it a try and let me know how you get on.
And if you do need any support, then I'm here to help.
Just get in touch and let's jump on a call.
