Our directory features the top HR outsourcing companies in the USA. Our directory, backed by five ranking criteria, 12 expert reviewers, and 140+ verified client reviews, to help you confidently identify the best HR outsourcing services for your needs. 

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  • Unlock Your Organization's Services Future Potential

    Bringing together CHRO Advisory Services paired with innovative technology recommendations to impact the future of work strategy . Our network has some of the TOP CHROs working to help midcap and private equity companies be successful In their people strategy...

    Top Services:

    • Market Research
    • HR Outsourcing
    • Business Consulting
    Location
    Richardson, Texas
    Number of Employees
    Under 49
    Minimal Budget
    $1,000 - $10,000

    FutureSolve Services

    • Market Research
    • HR Outsourcing
    • Business Consulting
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Prophet
    • Gauge Capital
    • Lockton
    • NewDay USA
    Data sourced from the agency's DesignRush profile

    FutureSolve Reviews & Testimonials

    • Kevin Legara
      Kevin Legara CEO at Undisclosed
      5.0

      Market Research Review from Kevin Legara

      Futuresolve is Perfect! Great team of expert advisors, provide better services and save time effortlessly. Strong in all areas of expertise.

    • Jeia Marie Abrea
      Jeia Marie Abrea Founder at Undisclosed
      5.0

      Call Centers Review from Jeia Marie Abrea

      FutureSolve is your one-stop shop for people management needs. In a rapidly changing world (yes, looking at you COVID-19), it is no longer a luxury, but a necessity to adapt to technological advancements. FutureSolve makes the shift to digitalization less of a chore and more of a convenience if you look at the bigger picture. The services include a vast selection of HR technology, artificial intelligence integration, talent development, sound advise from esteemed CHROs, and so many others!

    • Bill Allen
      Bill Allen Former CHRO at Macy’s
      5.0

      Call Centers Review from Bill Allen

      In today’s challenging business environment companies need great resources at the point of impact. The four pillars of FutureSolve provide solutions for business leaders by leveraging unique high tech and high touch solutions- when, where and how they are required. FutureSolve’s team are cutting edge thinkers and have a long history of delivering excellent outcomes.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Your One Stop Digital Service Partner

    Xonest is the global IT Consulting company that stands for progress. We at Xonest provides you the best IT solutions which includes everything from re-designing your website, to custom develop your web app, to all eCommerce solutions, to native and hybrid mobile applications to social media marketing, to...

    Top Services:

    • Web Development
    • eCommerce Development
    • Mobile App Development
    • Software Development
    • Web Design
    • Show more
    Location
    Round Rock, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $30/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    15 Projects Listed

    Xonest Technologies Private Limited OPC Services

    • Web Development
    • eCommerce Development
    • Mobile App Development
    • Software Development
    • Web Design
    • HR Outsourcing
    • Digital Marketing
    • Design Services
    • CRM Consulting
    • Graphic Design
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • EDRT
    • LB
    • LYK
    • FC
    • EscrowMalaysia
    • FG
    • KEYFA
    • LW Networks
    • Karoo
    • Slay&Glam
    Data sourced from the agency's DesignRush profile

    Xonest Technologies Private Limited OPC Reviews & Testimonials

    • Saurav Debnath
      Saurav Debnath Project is Live at Manhattan Tech Ventures Private Limited
      5.0

      Software Development Review from Saurav Debnath

      Very satisfying working experiecne with Xonest. Quality of technical experts & delivered product is truely appreciating. Wonderful coordination made the project easy & time saving. Would like to work with Xonest again on any project opportunity at the earliest & would also like to recommend Xonest as a team to others who are looking for any technical requirements.

    • Charles O'Brien
      Charles O'Brien Review from Google
      5.0

      Charles O'Brien's Review Sourced from Google

      Excellent communicator, diligent, knowledgeable and very impressive programming ability. Shubham always went above and beyond, taking our ideas and translating them into an amazing website. He was available at any point, day or night, and very patient with my lack of programming knowledge, even making a thorough guide so I can make future edits. Would highly recommend and will be using his services long into the future!

    • John Mandell
      John Mandell Review from Google
      5.0

      John Mandell's Review Sourced from Google

      I am very happy with my choice to work with Xonest. Shub is obviously very skilled and knowledgeable in software development, but more importantly to me he is very kind and easy to work with. Shub's communications are very frequent and he is very responsive to my inquiries. I highly recommend using Xonest for software development.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Excellence Reimagined

    Arillic is an 8(a) certified marketing, communications and digital services company...

    Top Services:

    • Social Media Marketing
    • Web Design
    • Web Development
    • Digital Marketing
    • Business Consulting
    • Show more
    Location
    Fairfax, Virginia
    Number of Employees
    Under 49
    Average Hourly Rate
    $150/hr
    Minimal Budget
    $10,000 - $25,000

    Arillic Services

    • Social Media Marketing
    • Web Design
    • Web Development
    • Digital Marketing
    • Business Consulting
    • HR Outsourcing
    • Mobile App Development
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • National Park Service
    • Virginia Tech
    • Amazon Web Services
    • Iridium
    • Qatar Airways
    • APCO Worldwide
    • Foundation for Advancing Alcohol Responsibility
    • International Spy Museum
    • Managed Care Advisors
    • Office Evolution
    Data sourced from the agency's DesignRush profile

    Arillic Reviews & Testimonials

    • Michael Biarnes
      Michael Biarnes Review from Google
      5.0

      Michael Biarnes's Review Sourced from Google

      I highly recommend working with Epion! During our initial call, Curt and his team provided fantastic recommendations for my website given my specific needs and desires despite not having any commitment to work together. Epion treats you like a true partner throughout the process as they want to see you grow and succeed. I'm extremely pleased with how my website turned out and it would not have been possible without the Epion team!

    • Darrien Jamar
      Darrien Jamar Review from Google
      5.0

      Darrien Jamar's Review Sourced from Google

      Wow. I had such an amazing exploratory and creative experience. I felt the intention in each step that Epion provided, which ultimately led to me having a beautiful website with content, business cards, and a logo that is reflective of my company brand at this stage of development. Before I officially began working with Epion, I was provided genuine advice which encouraged me to explore and develop more before acquiring their services. This stood out to me because we live in a world that is quicker to take your money than to say "No," you're not ready yet. I look forward to working with Epion on more projects in the future (in addition to being my top referral source for friends and other business owners/entrepreneurs).

    • Antoine Davis
      Antoine Davis Review from Google
      5.0

      Antoine Davis's Review Sourced from Google

      I came to Epion because it was recommended by a friend. This is without a doubt the best option for my needs and timeline. I had a quick conversation with their staff and they quickly understood my situation and what I needed for my website. They even included some suggestions that helped bring my website together and they message that I wanted my customer to receive after visiting my website. I will continue to use Epion in the near future!

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Business & Technology Solutions

    Withum can be the new business advisor relationship you need to inspire innovation for your growth and success. Experience a fresh perspective on embracing what you’ve learned and refocusing your business strategy to thrive in an evolving, complex business environment. Whether you’re looking to strengthen...

    Top Services:

    • Accounting
    • HR Outsourcing
    • Cybersecurity
    • IT Services
    • Show more
    Location
    San Francisco, California
    Number of Employees
    1000 & Up

    Withum Services

    • Accounting
    • HR Outsourcing
    • Cybersecurity
    • IT Services
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Finance Industry
    • Healthcare Industry
    • Legal Industry
    • Construction Industry
    • Consumer Goods Industry
    Data sourced from the agency's DesignRush profile

    Withum Reviews & Testimonials

    • Jerome Wong
      Jerome Wong Review from Google
      5.0

      Jerome Wong's Review Sourced from Google

      We have had the pleasure of working with Withum for our annual audit engagements and have been impressed by the high standard of service provided. The audit team has demonstrated exceptional professionalism, with auditors who are clearly experienced, knowledgeable, and efficient throughout the entire process.

    • Jonathan Hunt
      Jonathan Hunt Review from Google
      5.0

      Jonathan Hunt's Review Sourced from Google

      The Withum team has been very responsive and met all of their deadlines. They have demonstrated their knowledge and understanding of our industry which has been beneficial with some of our more complicated transactions. We have appreciated their communications throughout the engagement and the ease of being able to connect with the partner, manager, and other staff members.

    • John Gilmer
      John Gilmer Review from Google
      5.0

      John Gilmer's Review Sourced from Google

      The entire Withum Team, Audit, Tax and M&A Services, is great. We have been with them back to the OUM days. They have always partnered well with our company as it has evolved and our organization and processes have matured. They are incredibly responsive, professional and tuned in to our specific business requirements.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Placing People First

    The Best Tech Recruiters & Tech Staffing Agency in Los Angeles, CA & Austin, TX - Rapid Growth Hiring, saving you time & money!...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Marina del Rey, California
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000

    Fabric Staffing Services

    • HR Outsourcing
    • Staff Augmentation
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Discord
    • Twitter
    • HeadSpace
    • Grindr
    • Google
    • AppliedVR
    • Wonolo
    • Cover
    • Guitar Center
    • Discover Channel
    Data sourced from the agency's DesignRush profile

    Fabric Staffing Reviews & Testimonials

    • Kabir Shukla
      Kabir Shukla Review from Google
      5.0

      Kabir Shukla's Review Sourced from Google

      Have been working with Fabric for years, both when hiring and looking to get hired. Could not recommend more strongly. Rory and team care genuinely, ensuring the hiring process is a true partnership. I've recommended Fabric to others and all had an equally positive experience.

    • Alex Rupprecht
      Alex Rupprecht Review from Google
      5.0

      Alex Rupprecht's Review Sourced from Google

      I worked with Fabric Staffing during my most recent job search, specifically with Tom who was amazing! With their help, I was able to land a good software engineering role. I sometimes get a little bit of interview anxiety. Tom was great and was able to help coach me with some practice sessions, and it really helped with my confidence in the actual interviews. I got the clear impression that they wanted to place me somewhere that would be a good fit. I'll definitely work with Fabric Staffing again in the future!

    • Kyle Y
      Kyle Y Review from Google
      5.0

      Kyle Y's Review Sourced from Google

      I was let go from my senior software engineer position in April of 2022. Fortunately, the job market was hot at the time, and I was practically swarmed by recruiters on Linkedin. However, Marissa from Fabric Staffing was easily the best recruiter collaboration I experienced during my hunt. She recognized my specific skill set and gathered my interests and salary requirements. She then matched me with two companies that fit my profile very well -- one in a similar industry that I was already working in, and one that was a fascinating opportunity that I could adapt to. She was always down-to-earth but bright and understanding during the process, where many other recruiters were robotic or were coming off as super insincere. I felt like I could be direct with her and she'd be pragmatic and honest. She was able to ease any anxiety I had about being let go before interviewing, and I ultimately selected one of the two positions she approached me with. I've been happy with my placement since then. I definitely recommend using recruiters like Marissa if you'd like to fill your open positions with carefully selected people that are suited to your company's culture. And as a candidate, I'd definitely be happy to work with Marissa and Fabric Staffing again.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • People.Connections.Solutions

    NW Recruiting Partners is a boutique recruiting firm based in Washington state. We work closely in collaboration with you to understand your needs and provide the right solution...

    Top Services:

    • HR Outsourcing
    Location
    Kirkland, Washington
    Number of Employees
    Under 49
    Minimal Budget
    Under $1,000

    NW Recruiting Partners Services

    • HR Outsourcing
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Direct Hire
    • Contract Positions
    • Contract to Hire Positions
    • CONSTRUCTION
    • REAL ESTATE
    • OFFICE / ADMIN
    • ACCOUNTING
    Data sourced from the agency's DesignRush profile

    NW Recruiting Partners Reviews & Testimonials

    • Nick Young
      Nick Young Review from Google
      5.0

      Nick Young's Review Sourced from Google

      I had great interactions with Angela there and she was very knowledgeable about the company she was recruiting for. She also served as a sounding board for me while navigating the entire process. Super helpful!

    • Dylan Bratlie
      Dylan Bratlie Review from Google
      5.0

      Dylan Bratlie's Review Sourced from Google

      When looking to find a new position and place to live I had the best experience working with their team member Lisa. She was always available during the entire process and was there to ease the entire process. Couldn’t recommend them enough.

    • Shea Fenton
      Shea Fenton Review from Google
      5.0

      Shea Fenton's Review Sourced from Google

      Angela has been such a pleasure to work with. Not only was she amazing at communicating with me but helped coach me to my new position. I appreciate her during this scary time of employment because she helped me get my job. Thank you Angela!

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • social media marketing & seo for local & global brands.

    Social media agency that prioritizes long-term client relationships and focuses on helping businesses acheive their goals. Our intent is all for your delight...

    Top Services:

    • Social Media Marketing
    • Content Marketing
    • SEO
    • Email Marketing
    • Web Design
    • Show more
    Location
    Iowa City, Iowa
    Number of Employees
    Under 49
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    1 Project Listed

    Social Organica Services

    • Social Media Marketing
    • Content Marketing
    • SEO
    • Email Marketing
    • Web Design
    • Print Design
    • Logo Design
    • Digital Strategy
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Jacobi Asset Management
    • BrandNewView
    • Schaffran Construction
    Data sourced from the agency's DesignRush profile

    Social Organica Reviews & Testimonials

    • Carlee Kremer
      Carlee Kremer Review from Google
      5.0

      Carlee Kremer's Review Sourced from Google

      Mitch is one of my favorite people to work with. They are incredibly talented and have been a tremendous asset to MSD, Inc. Mitch led a full website redesign, and their ongoing support with constant updates has been invaluable. I truly couldn't do it without them. Mitch and the team at Social Organica are fantastic to collaborate with!

    • Chris
      Chris Review from Google
      5.0

      Chris's Review Sourced from Google

      I cannot recommend them enough! They have helped our business immensely with our Google Ad campaign growth and rankings. Mitch is always very responsive and a valuable resource.

    • Dog Named Steve
      Dog Named Steve Review from Google
      5.0

      Dog Named Steve's Review Sourced from Google

      Mitch has been handling my company's social media for several months and also built and maintains our website (schaffranconstruction.com). Not only has he done an absolutely phenomenal job with these, but he also formatted and edited the largest proposal that our company has ever submitted, and to say that it was well received is an understatement. Mitch and Social Organica do beautiful work, but he is also responsive, humble, and just an incredible person to work with. I couldn't be happier with Social Organica and would recommend them to anyone looking for quality and timeliness in there social media and web design needs. Great company and an even better person.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Digital Innovation For The Digital Age

    Creative Design Venture is a digital agency specializing in innovative web solutions and executive digital marketing services so that our valuable clientele and their businesses can have a strong online presence...

    Top Services:

    • Digital Marketing
    • Logo Design
    • Web Development
    • Social Media Marketing
    • Business Consulting
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $100/hr
    Minimal Budget
    Under $1,000
    Portfolios Count
    1 Project Listed

    Creative Design Venture Services

    • Digital Marketing
    • Logo Design
    • Web Development
    • Social Media Marketing
    • Business Consulting
    • Market Research
    • HR Outsourcing
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Aztect Construction
    • Design Industry
    • Marketing Industry
    Data sourced from the agency's DesignRush profile
  • IT That WorksSo You Dont Have to Worry.

    Technology and Security that is transparent to your business...

    Top Services:

    • Managed Services
    • HR Outsourcing
    • IT Services
    Location
    Flint, Michigan
    Number of Employees
    Under 49

    Structured Technologies Services

    • Managed Services
    • HR Outsourcing
    • IT Services
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Retail Industry
    • Real Estate Industry
    • FinTech Industry
    Data sourced from the agency's DesignRush profile

    Structured Technologies Reviews & Testimonials

    • Gregory Newman
      Gregory Newman Review from Google
      5.0

      Gregory Newman's Review Sourced from Google

      Structured Tech consistently delivers prompt responses to all our IT needs. Whether it's leveraging their expertise in the latest technology or resolving issues with our company's tech, they are always dependable and reliable.

    • Kristy Kranz
      Kristy Kranz Review from Google
      5.0

      Kristy Kranz's Review Sourced from Google

      They are so knowledgeable & professional. Always helping us, even if it is a stupid little thing. They explain in non tech terms Extremely professional

    • Robbi Shumaker
      Robbi Shumaker Review from Google
      5.0

      Robbi Shumaker's Review Sourced from Google

      Friendly service and they do great work! I've never taken a computer in they couldn't fix.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Where Top Talent Meets Your Business Needs

    With over 20 years of experience, Search Solution Group is a nationally recognized recruitment, staffing, and executive search firm. We provide industry-specific external recruiters to source top talent for businesses. Our award-winning process and aggressive headhunting approach are guided by our core values...

    Top Services:

    • HR Outsourcing
    Location
    Charlotte, North Carolina
    Number of Employees
    100 - 249
    Portfolios Count
    3 Projects Listed

    Search Solution Group Services

    • HR Outsourcing
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Recruitment Industry
    • Market Research Industry
    • Staffing Industry
    Data sourced from the agency's DesignRush profile

    Search Solution Group Reviews & Testimonials

    • Derek Dodds
      Derek Dodds Review from Google
      5.0

      Derek Dodds's Review Sourced from Google

      I had a great experience working with Search Solutions Group, specifically with recruiter Brandon C. Brandon was professional, supportive, and highly responsive throughout the entire process. He took the time to understand my career goals and successfully connected me with an excellent opportunity. His guidance and communication made the process smooth and efficient. I would highly recommend both Brandon and Search Solutions Group to anyone seeking new career opportunities.

    • Sarah L.
      Sarah L. Review from Google
      5.0

      Sarah L.'s Review Sourced from Google

      I worked with Sabrina on a role and can say she was the recruiter I have met in my career. She was responsive and helpful throughout the whole process. I would highly effective comment the firm and Sabrina is a huge asset to the company. Thank you!

    • Q. Hall
      Q. Hall Review from Google
      5.0

      Q. Hall's Review Sourced from Google

      I had a great experience working with Baylee. From our first conversation, she was professional, transparent, and genuinely invested in helping me find the right opportunity. She effectively communicated throughout the entire process, provided helpful and followed up consistently. I appreciate all she has done!

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews
  • Broaden Your Horizon

    Tomedes is a leading translation company specializing in translation services, interpretation, and localization solutions for businesses and private clients worldwide. As a one-stop shop for language and translation solutions, we offer a wide range of language solutions in over 120+ languages and 950+...

    Top Services:

    • Translation Services
    • Business Consulting
    • Transcription Services
    • Digital Services
    • Branding
    • Show more
    Location
    Oregon City, Oregon
    Number of Employees
    100 - 249
    Average Hourly Rate
    $1/hr
    Minimal Budget
    Under $1,000
    Portfolios Count
    1 Project Listed

    Tomedes Services

    • Translation Services
    • Business Consulting
    • Transcription Services
    • Digital Services
    • Branding
    • UI/UX Design
    • eCommerce Development
    • Web Development
    • Market Research
    • HR Outsourcing
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Amazon.com
    • Google
    • Microsoft
    • Youtube
    • Bloomberg
    • Spotify
    • Wix.com
    • HSBC
    • Canon
    • Code.org
    Data sourced from the agency's DesignRush profile
  • Innovative And Exceptional IT Services

    Empowering Businesses with Innovative Software Solutions. By bridging the gap between existing and emerging technologies, Evolve Blue helps you innovate faster, with less risk, on your path to digital transformation...

    Top Services:

    • Web Development
    • Managed Services
    • IT Services
    • Staff Augmentation
    • HR Outsourcing
    • Show more
    Location
    King of Prussia, Pennsylvania
    Number of Employees
    Under 49

    Evolve Blue Services

    • Web Development
    • Managed Services
    • IT Services
    • Staff Augmentation
    • HR Outsourcing
    • AI Development
    • Mobile App Development
    • Software Development
    • eCommerce Development
    • IoT
    Data sourced from the agency's DesignRush profile, its website, and other relevant accounts
    • Healthcare Industry
    • Fintech Industry
    • Education Industry
    Data sourced from the agency's DesignRush profile

    Evolve Blue Reviews & Testimonials

    • Hora Art Centre
      Hora Art Centre Review from Google
      5.0

      Hora Art Centre's Review Sourced from Google

      It has been an absolute pleasure working with Evolve Blue. They built our new web app for our company. The whole team is very professional, knowledgeable and delivered our project on time. Beat the expectations. We highly recommend their services.

    • HM Digital
      HM Digital Review from Google
      5.0

      HM Digital's Review Sourced from Google

      We utilized Evolve Blue's development services to re-build a Wordpress website. They did a very professional and efficient job in managing the re-write. The development team was knowledgeable and offered us solutions to unintended problems that we ran into midway through the development cycle. I recommend Evolve Blue to anyone who is looking for software development services.

    • Pets Companion
      Pets Companion Review from Google
      5.0

      Pets Companion's Review Sourced from Google

      We hired Evolve Blue to design us a website for our business. Not only they made us a great website but also guided and helped us to market our website. An excellent finished product that is not only fully responsive but also genrates leads for us. We highly recommend Evolve Blue for all your website, mobile apps, online and social media marketing.

    Reviews verified by DesignRush and sourced from the agency's profile View All Reviews

Frequently Asked Questions About HR Outsourcing Services

What services do most of these companies typically offer?

They typically provide a comprehensive menu of services covering the full employee lifecycle. 

According to industry research, these are the most frequently outsourced HR services: 

  • Payroll outsourcing (70%): Processing employee salaries and ensuring that they comply with contract agreements, labor laws, and tax regulations. 
  • Recruitment process outsourcing (RPO) (28%): Sourcing, screening, interviewing, and onboarding talent required by an organization.  
  • Multi-process HRO (26%): Delegating multiple HR operations to a single third-party provider, such as payroll processing, onboarding and training, and compliance. 
  • Benefits administration (18%): Managing an organization’s benefits programs for employees, such as health insurance, paid time off, and retirement plans. 
  • Learning services (14%): Overseeing an organization’s training and development programs, helping employees upskill or reskill. 

Beyond these core offerings, these companies also cover performance management, time and attendance tracking, and compliance management. 

How much does HR outsourcing cost?

HR outsourcing costs start at $50-$200 per employee per month and can go beyond $1,500 per employee per month. The final rate will depend on the type of HR sourcing service, engagement model, company size and structure, industry, and compliance requirements. 

Here’s a pricing breakdown per service type: 

  • Payroll processing: Base fee of $150-$350 per month for a company with under 20 employees 
  • Compliance management: $500-$5,000 per month, depending on scope and requirements 
  • Employer record services (EOR): $200-$1,500 per month per employee 
  • Training and development: $50-$300 per employee per module, and can be exclusive of trainer compensation, event space, and training materials. 
  • Recruitment and talent acquisition: 15%-30% of the talent’s first-year salary or $5,000-$20,000+ per month, with more premium rates for more specialized or niche expertise 

What is the difference between HR outsourcing and a PEO?

While both HR outsourcing companies and PEOs (professional employer organizations) help organizations hire and manage their employees, they have different functions.  

Mainly, an HRO serves as an external vendor, while a PEO operates through a co-employment model. Below are more details: 

  HR Outsourcing PEO
Function Third-party vendor  Co-employer 
Legal Liability Client Shares responsibility with the client
Services Provides the service as needed Controls the entire HR operations 
Payroll, taxes, and filings  Provider handles the service, but the client remains the employer Provider is the co-employer and administers the entire process
Benefits
  • Higher flexibility and customization 
  • Client keeps full control
  • Fewer risks, as PEO shares the liability
  • All-in-one HR function, no need to search for different providers 

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

  1. What HR functions do you cover, and what is your expertise? 
  2. Can you provide case studies or references for companies similar to our business size, industry, and complexity? 
  3. What is your compliance coverage per state and per country? 

Services and Processes 

  1. Can you walk me through your end-to-end processes (e.g., onboarding, payroll cycles, offboarding)? 
  2. What HR tools and technologies do you use, and can you integrate them with my IT ecosystem? 
  3. What is your security and data governance approach, and what are your disaster recovery commitments? 

Related to Your Project 

  1. What administrative effort is required from our team weekly/monthly? 
  2. Can you scale services as we grow (new states/countries, headcount, acquisitions), and what changes in pricing or support model? 
  3. What SLAs do you commit to, and who will be our day-to-day contact? 

What types of businesses usually outsource their HR services?

Industry research found that 57% of companies outsource at least one HR service, proving that all types of businesses can benefit these from these types of services. 

However, here are the sectors that have the highest share of HRO contracts: 

  • Business, financial services, and insurance companies: 22% 
  • Information technology: 20% 
  • Healthcare: 18% 
  • Retail: 15% 
  • Hospitality: 10% 

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