Industry Definition
CBI is classified as a Human Resources Consulting Service and therefore assigned the NAICS number of
541612 and SIC Code 7361. Human Resources Consulting Services provide advice and assistance to
businesses and other organizations in human resource and personnel policies, practices, and
procedures. The industry is also comprised of employee benefits, compensation planning, and wage and
salary consulting. CBI is a subset category associated with personnel management and consulting
services within the Human Resources industry.
Industry Size, Growth Rate, and Sales Projections
According to United States Census Bureau’s Economic Census industry snapshot for Human Resources
Consulting Services NAICS 54612, the consulting industry is growing rapidly. In terms of revenue, the
consulting industry was $16.2 billion in 2012 with a growth rate of 17.8% from 2007 to 2012. Using
trend analysis, 2015’s sales projections should yield revenues in the range of $18 billion.
Human Resources Consulting
Revenues
$20,000
$16,229
$15,000
$17,697
$13,782
$10,000
$5,000
$0
2007
2012
2015 expected
Receipts/Revenue ($ Millions)
Industry Characteristics
Due to the rapid growth of the HR consulting industry, and specifically its subset of religious and cultural
consulting, our research points to the fact that not one company holds a sizeable market share, and that
firms are highly local. There are, of course, the very large management consulting firms, of which
McKinsey & Company, The Boston Consulting Group and Bain & Company are three examples. However,
these are not direct competitors in that their core service is financial and strategy consulting.
Barriers to entry in this field are low due to the relative ease of starting a consulting firm. Consultants
within Human Resources are in great number. However, cultural and religious consultants are a small
subset to this category. Many HR Consultants are attracted to this market, but few have or are in a
position to acquire the specific knowledge and resources needed to provide cultural and religious
diversity training.
Industry Structure
Immigration into the United States is an important industry characteristic to consider. This industry
focuses on different cultures and religions so it is important to know from where and how many are
immigrating to and from the U.S. According to the U.S. Census, in the past 30 years the U.S. has
experienced an influx of foreign born population. From a meager 4.7% (9.6 million) in 1990 to 12.9% (40
million) in 2010, it is clear that the foreign born population is trending upward1.
In regards to the labor force more specifically, foreign born residents of the U.S. make up an astounding
16.1% of the labor force2.
1
http://www.census.gov/library/infographics/foreign_born.html
2
http://www.bls.gov/spotlight/2013/foreign-born/
It is also important to focus on the countries from which these individuals are immigrating. Currently,
the majority are immigrating from Latin America, and more specifically Mexico. China and India are the
next largest immigrating countries.
The Latino and Arabic populations will be a focus of CBI considering their populations in large
Midwestern cities such as greater Detroit (over 80,000 of Arab descent3) and Chicago (over 785,000 of
Latino descent).
Lawsuits and religious-based complaints are a second industry characteristic of significance. Lawsuits are
commonplace in the United States. 80% of the world’s lawyers live in the U.S. and there are over 15
million civil cases a year. Lawsuits are bound to be served to global businesses due to the different
cultures, customs and religious beliefs. The Civil Rights act of 1964 protects workers from employment
discrimination based on their race, color, religion, sex, and national origin. This gives all employees the
freedom to work without fear of discrimination. The EEOC reports several pending and resolved cases
alleging religions and national origin discrimination involving the Muslim, Sikh, Arab, Middle Eastern and
South Asian Communities. An example of a well-known company, Abercrombie & Fitch, has a current
pending case:
Abercrombie & Fitch d/b/a Hollister (SFDO) filed 6/27/11 - Charging Party is Muslim.
Defendant refused to accommodate Charging Party's religion by permitting her to wear a
headscarf and discharged her.
There are legal fees and perception issues that are created when lawsuits such as these are filed, and if
religious-based complaints are any indication, the lawsuits show no sign of declining. The Equal
Employment Opportunity Commission received 3,811 religion-based complaints in 2012, the secondhighest level ever and just below the record 4,151 in 20114. These incidents will affect the company
negatively through possible litigation, decreased sales and customer image.
The third industry characteristic to consider is potential customers. CBI’s target customer is the
multinational company. Multinational companies are large employers in the U.S. and overseas. In fact,
according to the Bureau of Economic Analysis, worldwide employment by U.S. multinational firms alone
in 2011 equaled 34.5 million workers5. Worldwide capital expenditures by the same companies equaled
$706 billion in 20116. This amount doesn’t include spending from foreign-owned companies such as
3
http://b.3cdn.net/aai/dfab1c90e9a819c9c1_tkm6iyilb.pdf
http://www.businessinsurance.com/article/20120212/NEWS07/302129987
5
http://www.bea.gov/newsreleases/international/mnc/mncnewsrelease.htm
6
http://www.bea.gov/newsreleases/international/mnc/mncnewsrelease.htm
4
Anheuser-Busch, 7-11, Shell, Trader Joes, and Toll House Cookies7. Two such companies, J. Jill Clothing
and Meridian Surgical Partners, are actually owned by Arcapita, an Islamic Investment Bank based in
Atlanta that adheres to Sharia Law8. These two companies are perfect candidates for the industry.
A final industry characteristic of importance is competition. Examples of firms in CBI’s specific industry
and offering similar services focusing on cultural and religious belief are:

Connecting Cultures: http://www.connecting-cultures.net/new/index.html promotes
understanding across cultures and faiths

Cultural Savvy: http://www.culturalsavvy.com/consulting.htm, provide clients with customized
solutions designed to meet their global business challenges

ITAP international: http://www.itapintl.com/, understands the impact that national cultures
differences have on business interactions

RCL International Management: http://rlcim.com/, provides cross-cultural management,
international business and strategy research projects, workshops and consulting
The United States Department of Labor provided the following data through the Bureau of Labor
Statistics regarding the broader management consulting industry, which was as detailed as was possible
to obtain regarding HR Consulting.
Summary
Quick Facts: Management Analysts
2012 Median Pay
$78,600 per year
$37.79 per hour
Entry-Level Education
Bachelor’s degree
Work Experience in a Related Occupation
Less than 5 years
On-the-job Training
None
7 http://www.dailyfinance.com/photos/american-icons-that-are-foreign-owned/#!fullscreen&slide=986048
8
http://www.arcapita.com/our-firm/shariah-board
Quick Facts: Management Analysts
Number of Jobs, 2012
718,700
Job Outlook, 2012-22
19% (Faster than average)
Employment Change, 2012-22
133,800
Long-Term Prospects
The industry is as diverse as the global companies it serves and is likely to maintain its current growth
due to the increased globalization of industry and companies’ willingness to diversify their workforce. In
order to grow market share, companies will need to reach into different areas to produce and sell their
product. In the last 20 years, a large number of US companies have moved manufacturing, among other
services, to developing nations. This industry will follow these companies and grow along with them.