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.
Organic rankings are determined by five factors: top services, reviews, portfolio, awards/press, and team expertise. Sponsored listings pay for a placement that appears above organic positions. Sponsorship does not affect star ratings or review content - read more on our methodology page.
At the senior level, marketing leadership isnt about filling a seatits about securing the right partner to drive future growth. We focus exclusively on senior-level growth marketing executive search, finding leaders who not only shape strategy but tie it directly to revenue and long-term value. For CEOs...
Top Services:
- HR Outsourcing
- Location
- Westwood, Massachusetts
- Number of Employees
- Under 49
- Average Hourly Rate
- $400/hr
- Minimal Budget
- $25,000 - $50,000
TanaMSession.com is a woman/minority-owned small enterprise Human Resources firm specializing in organizational and change management, executive leadership coaching and Diversity, Equity, Inclusion & Belonging...
Top Services:
- Business Consulting
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $375/hr
- Minimal Budget
- $1,000 - $10,000
Faulkner HR Solutions provides Texas HR consulting for municipalities, nonprofits, and growing businesses—helping organizations stabilize their workforce, strengthen leadership accountability, and build HR systems that perform when it matters most...
Top Services:
- Business Consulting
- HR Outsourcing
- Location
- Karnes City, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $300/hr
- Minimal Budget
- $1,000 - $10,000
SBCHR provides HR consulting, compliance, recruiting, and benefits support to help businesses manage employees, reduce risk, and grow...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
- Average Hourly Rate
- $250/hr
- Minimal Budget
- $1,000 - $10,000
HR Advantage Consultants is a people-centered HR consulting firm that helps businesses build stronger teams, improve workplace practices, and navigate HR challenges with confidence. We provide customized support in recruiting, employee relations, compliance, performance management, training, leadership...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Palm Desert, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $250/hr
- Minimal Budget
- $1,000 - $10,000
Avant Tech is an Innovation driven company operating in the US, Nigeria and the Philippines, We specialize in the recruitment of international across countries and carry our Business Process Outsourcing Services...
Top Services:
- BPO
- IT Services
- HR Outsourcing
- Managed Services
- Mobile App Development
- Show more
- Location
- Peachtree City, Georgia
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $200/hr
- Minimal Budget
- Under $1,000
Matter Consulting is the home of Steven Morris’ brand, culture, and business advisory work. Steven has been a trusted advisor to more than 3,000 business leaders at more than 250 global, national, and regional brands since 1994...
Top Services:
- Branding
- Reputation Management
- Business Consulting
- Market Research
- Digital Strategy
- Show more
- Location
- San Diego, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
We offer a wide range of research services to help you understand and design for your end users. We provide UX research, Human Factors testing, Ethnography, as well as in house participant recruiting and facility rentals for focus groups and mock trials in Houston...
Top Services:
- HR Outsourcing
- Market Research
- Location
- Houston, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
20 years of providing award-winning sales, marketing and management recruitment services to organizations of all sizes from around the globe...
Top Services:
- HR Outsourcing
- Business Consulting
- eCommerce
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
EvolveUp is an Austin-based consulting firm specializing in workforce optimization for people-centric businesses. The company combines strategic consulting with hands-on HR technology implementation to help organizations improve efficiency, reduce costs, and align their workforce with business goals...
Top Services:
- HR Outsourcing
- Customer Support
- Business Consulting
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $1,000 - $10,000
A recruiting firm focused exclusively on exhibit builders and experiential agencies, placing proven operators across sales, project management, design, and operations...
Top Services:
- Event Marketing
- Advertising
- HR Outsourcing
- Location
- Jasper, Georgia
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
We help clients tackle a variety of business problems, from web design, marketing strategy + execution, to content creation...
Top Services:
- Web Design
- eCommerce Development
- Digital Marketing
- SEO
- Translation Services
- Show more
- Location
- Huntingdon, Pennsylvania
- Number of Employees
- Under 49
- Average Hourly Rate
- $165/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
As a full-service HR Consultancy, we focus on building out robust HR functions for fast-growth companies, helping them acquire, retain and develop top talent, as well as implement the right systems to cut costs while leveling up their benefits, payroll, employer brand, ATS and HRIS, performance management...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $150/hr
GoGlobal specializes in Employer of Record services, providing customers with efficient, compliant, and human-centered recruitment, hiring, management, and compensation of global talent. With a remote workforce and on-the-ground presence in countries worldwide, GoGlobal offers the expertise and cultural...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $150/hr
HSP Group specializes in employer of record services and global expansion, providing expert-led solutions for companies looking to scale their international operations. With a focus on customer experience, HSP Group offers comprehensive people and entity solutions in every country, utilizing technology...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Tampa, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $150/hr
RemotePeople is a global workforce platform providing Employer of Record (EOR), payroll, recruitment, contractor management, and global employment solutions across 150+ countries...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $150/hr
Effectiveness helps organizations unlock the potential of their people. By predicting employee effectiveness and turning insights into action, we build stronger teams and sustainable growth with precise skills diagnostics that support recruitment, onboarding and leadership development...
Top Services:
- HR Outsourcing
- Location
- Youngstown, Ohio
- Number of Employees
- Under 49
- Average Hourly Rate
- $150/hr
- Minimal Budget
- $1,000 - $10,000
Alpha Apex Group is a retained executive search and operating advisory firm serving organizations making high-stakes leadership decisions. We place Presidents, C-suite, and critical operators while aligning the organizational architecture that allows those leaders to perform...
Top Services:
- HR Outsourcing
- AI Development
- Business Consulting
- ERP Consulting
- Show more
- Location
- Denver, Colorado
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $150/hr
- Minimal Budget
- $25,000 - $50,000
Talent Labs helps high-growth B2B startups build elite go-to-market teams fast. With a strategic, data-driven approach, they specialize in placing top talent across sales, marketing, customer success, and leadership roles, acting as a true partner from Seed to Series B and beyond...
Top Services:
- HR Outsourcing
- Location
- Sheridan, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $149/hr
- Minimal Budget
- $1,000 - $10,000
SevenStar HR's shared HR services deliver a growth strategy, protecting your organization and optimizing your most valuable asset - your people. No matter what your company size, we have a program to meet your needs. You'll only pay when we're on the job - working hard to find you the best talent, helping...
Top Services:
- HR Outsourcing
- Location
- Port Jefferson, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $145/hr
- Minimal Budget
- Under $1,000
Cruzader is a discreet professional search partner trusted by founders and decision-makers to deliver high-impact talent with precision and care. We operate behind the scenes, curating leadership that drives legacy, not just headcount...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $125/hr
- Minimal Budget
- $50,000 & Up
Leon Consulting is a private talent agency for tech professionals. We represent experienced software engineers, share real salary data, connect you with hiring managers, and negotiate higher offers. 100% confidential. Free for candidates...
Top Services:
- HR Outsourcing
- Location
- Sheridan, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $120/hr
- Minimal Budget
- $10,000 - $25,000
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
We recruit and help you compensate global talents for your remote positions, ensuring costs are up to 70% lower than what US & Western EU talents typically demand, without sacrificing quality...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Customer Support
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
Newton Workforce is a multidisciplinary workforce and outsourcing company based in Lebanon, providing integrated business support solutions across Lebanon and the region. We assist startups, SMEs, multinational corporations, NGOs, and investors with Employer of Record (EOR), payroll management, HR...
Top Services:
- BPO
- HR Outsourcing
- Call Centers
- Customer Support
- Translation Services
- Show more
- Location
- Lebanon, Oregon
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
Since 2003, Sales Recruiters Chicago has specialized exclusively in sales recruiting, helping employers hire high-performing sales professionals across the manufacturing, industrial, medical, healthcare, software, capital equipment, building materials, business products, consumer goods, and B2B sectors...
Top Services:
- HR Outsourcing
- Location
- Chicago, Illinois
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $10,000 - $25,000
Most businesses can't afford to interview a full-time accountant or HR person - but they need help right now. FlowFi helps businesses find pre-vetted fractional experts for functions ranging from HR, to compliance, to bookkeeping, to fractional CFOs quickly and based on their needs...
Top Services:
- Accounting
- HR Outsourcing
- Business Consulting
- Location
- Los Angeles, California
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $100/hr
- Minimal Budget
- Under $1,000
TEDMOB is the top web, mobile app, and AI development company providing end-to-end digital solutions for enterprises, startups, and fast-growing companies across Lebanon, Saudi Arabia, UAE, and the wider Middle East...
Top Services:
- Digital Services
- Mobile App Development
- Web Development
- eCommerce Development
- AI Development
- Show more
- Location
- Bethesda, Maryland
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $80/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 2 Projects Listed
Xynario, a certified HubSpot partner, specializes in solving your lead generation and sales challenges. We provide high-quality leads, optimize sales funnels, and offer expert staffing solutions to help you achieve predictable revenue growth. Let us drive your success!...
Top Services:
- CRM Consulting
- Email Marketing
- Digital Marketing
- HR Outsourcing
- Show more
- Location
- Santa Clara, California
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $75/hr
HRSP Solutions delivers personalized HR, payroll, and compliance support designed for small businesses. From policies to processes, we simplify HR so you can focus on growth-with expert guidance and our all-in-one HRSP Application...
Top Services:
- HR Outsourcing
- Location
- North Charleston, South Carolina
- Number of Employees
- Under 49
- Average Hourly Rate
- $75/hr
- Minimal Budget
- $1,000 - $10,000
We are the heart-centered online Bookkeepers of New York who actually care about your success...
Top Services:
- BPO
- Accounting
- HR Outsourcing
- Business Consulting
- Show more
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $70/hr
- Minimal Budget
- $1,000 - $10,000
Gitmax is a global, AI-powered recruiting and staffing company dedicated to connecting the right talent with the right opportunities. By combining advanced artificial intelligence with human expertise, we help organizations build high-performing, high impact teams efficiently and responsibly...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Software Development
- Location
- Boca Raton, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $65/hr
- Portfolios Count
- 8 Projects Listed
CCJM Solutions is a boutique IT Consulting and BPO firm located in Atlanta, Georgia. We are passionate about helping businesses modernize operations while reducing costs. Our areas of expertise includes custom software, web, and app development, cloud migrations, staffing, and compliance management...
Top Services:
- IT Services
- Software Development
- Graphic Design
- CRM Consulting
- Cloud Consulting
- Show more
- Location
- Atlanta, Georgia
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $65/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
GlobiFYE delivers AI-fueled, frugal staffing local and global, from tech to finance, ops to project leads. Slash costs forty to sixty percent with smart methodologies: volume hiring scales teams fast via AI screening; staff augmentation plugs pros seamlessly; retained search bags elites. Contingent options...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Atlanta, Georgia
- Number of Employees
- Under 49
- Average Hourly Rate
- $60/hr
- Minimal Budget
- $1,000 - $10,000
The BANKW Staffing family of companies are locally owned, full-service staffing and recruiting agencies that help employers find custom solutions to their employment needs and match job seekers with positions that meet their individual career goals and qualifications...
Top Services:
- HR Outsourcing
- Location
- Bedford, New Hampshire
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $58/hr
Kraussel Applications is a business solutions agency for small and medium sized businesses. We offer marketing and human resources services to help clients enhance their online presence and enhance their company culture. Two services that are the life blood to a strong operating business...
Top Services:
- Web Design
- Web Development
- SEO
- Social Media Marketing
- HR Outsourcing
- Show more
- Location
- New Berlin, Wisconsin
- Number of Employees
- Under 49
- Average Hourly Rate
- $55/hr
- Minimal Budget
- $1,000 - $10,000
LivingLLoyd is more than a concept – it is a combination of pride, culture and the desire to hire smart and deliver the very best outcome. Internal staff embrace it, candidates and contract workforce welcome its strength, and clients benefit from its power and promise...
Top Services:
- HR Outsourcing
- Location
- Melville, New York
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
We enable our clients to deliver revolutionary products. We inspire candidates to realize their dreams. We empower Akrayans to be their best...
Top Services:
- HR Outsourcing
- Location
- Santa Clara, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
Incorporated in 2006, this entrepreneurial journey has metamorphosed to a transnational organisation with business operations in Asia, Australia, Europe & US.With a meticulous focus on driving successful hires, we’re a new type of partner and a new type of recruiting system. Our systematic, process driven...
Top Services:
- HR Outsourcing
- Location
- Santa Clara, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
AVA is a Premier provider of Top Talent resources for our Client’s Open Job Positions. AVA has consistently been recognized as a “GO TO” Company by our Clients for their resource needs. As a Staffing Services company, we provide Contract (Temporary), Contract to Hire (Temporary to Permanent), Permanent...
Top Services:
- HR Outsourcing
- Location
- Dallas, Texas
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
Orion Talent helps people discover meaningful careers and businesses grow by finding, delivering, and engaging outstanding talent around the world through best-in-class military hiring, EOR and talent recruitment solutions...
Top Services:
- HR Outsourcing
- Location
- Cary, North Carolina
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $50/hr
Keeping innovation as agile as possible in a fast-paced digital world has become a matter of survival for lots of businesses. The ability to compete across industries relies heavily on the talent that a company hires. The Canon Recruiting Group, established in 1980, is a WBENC certified professional...
Top Services:
- HR Outsourcing
- Location
- Santa Clarita, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
Our Yourshore model is intentionally designed to give you the very best remote engineering solution that solves for all the usual pain points that plague traditional offshore vendors...
Top Services:
- Software Development
- HR Outsourcing
- Location
- Menlo Park, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
LMG Technology Services LLC is a Houston, Texas-based supplier of technology and professional services. In addition to recruitment and staffing services, we also make software and offer support for it. We specialize in custom software programming and development to meet the needs of a wide range of public and...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Software Development
- Location
- Houston, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
Avomind is a go to firm to hire commercial, strategy and analytics talent globally. Our global network - serviced from Berlin, London, Barcelona, Miami, Jakarta and Singapore is built up of partnerships with >200 leading academic institutions; 25 leading MBA programs and 45 tech institutions. We provide our...
Top Services:
- HR Outsourcing
- Location
- Miami Beach, Florida
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $10,000 - $25,000
Mysoft Heaven (BD) Ltd. is a Top Software Development Company & CMMI Level 3 Company with 15+ years of excellence. We specialize in enterprise-grade solutions like ERP, FinTech, e-Governance, and HRMS (HR Sheba). Our scalable SaaS platforms and Cyber Security solutions empower global organizations...
Top Services:
- Web Development
- Digital Marketing
- Mobile App Development
- Software Development
- Staff Augmentation
- Show more
- Location
- Miami, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 1 Project Listed
Corel Consulting is an Ohio-based outsourced HR and payroll consulting company providing fractional HR, talent acquisition, payroll administration, and people-management solutions to growing businesses. With 20+ years of HR expertise, the company embeds dedicated HR and talent partners into client teams to...
Top Services:
- Business Consulting
- HR Outsourcing
- Customer Support
- Location
- Plain City, Ohio
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
Gravitas partners with businesses of every size to align people, processes, and purpose. We offer four core service lines: Human Resources (handbooks, policy, recruiting, HR retainer support), Business Management, Marketing & PR, and Training & Compliance (sexual harassment prevention, HIPAA, OSHA, Title IX...
Top Services:
- HR Outsourcing
- Business Consulting
- Branding
- Public Relations
- Reputation Management
- Show more
- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- Under $1,000
Edvenity is an all-in-one AI recruiting platform that helps hiring teams screen candidates, conduct AI interviews, run assessments, and manage the entire hiring process in one system...
Top Services:
- HR Outsourcing
- AI Development
- Location
- San Francisco, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- Under $1,000
Hyparz links IT organizations looking for remote workers with developers all around the globe. Hyparz is the main professional destination for IT specialists at all stages of their careers in tech firms...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Chandler, Arizona
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $45/hr
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 1 Project Listed
HR Outsourcing Companies by City
HR Outsourcing Companies by State
HR Outsourcing Specializations in the US
Popular Services
Hiring Guide: How to Choose the Best HR Outsourcing Services in the US
How do I choose the right company for my business?
To choose the right outsourcing company for your business, consider these steps:
- Define your needs
Map out the exact HR functions you want to delegate, your specific requirements and business policies, budget, and engagement timeframe. - Shortlist experts
Look for HR outsourcing providers with sector-specific knowledge, ask for client references in your industry, and review case studies showing measurable results. - Evaluate provider credentials
Assess client and employee reviews, list of awards and recognitions, and necessary certifications to confirm the company’s reliability and credibility. - Send a request for proposal (RFP)
Provide your top candidates with a detailed project brief together with your budget and time constraints, so they can work within your requirements. - Schedule an interview
Meet the team working with you, and ask about compliance, security, and scalability. Prioritize those who can expand with you without requiring a complete platform change. - Choose your provider
Take time to compare at least three providers, examining their technology platforms, service level agreements, and pricing models before committing.
Need help finding an HR outsource provider for your business? Visit our Marketplace and tell us what you need. We'll curate a list of the top companies for free!
What should I prepare before contacting an HR outsourcing provider?
Start with your current employee headcount and projected growth over the next 12-24 months.
Document all locations where you have employees, because each state or country adds compliance complexity that affects pricing.
Gather your existing payroll structure, including pay frequencies, overtime policies, and any special compensation arrangements like commissions or bonuses.
List your current benefits offerings and note whether you want the provider to source new plans or administer existing ones.
Compile your compliance requirements. Are you subject to industry-specific regulations? Do you have government contracts requiring certain HR practices? Have you faced any compliance issues or audits recently? Understanding your risk profile helps providers recommend appropriate service levels.
Finally, establish your budget expectations and decision timeline. Providers appreciate knowing whether you're exploring options or ready to move quickly.
According to a 2025 Paychex study, 64% of companies spend 570 hours annually on HR administration, so quantify your own time investment to understand your potential ROI from outsourcing.
When does HR outsourcing make more sense than building an in-house HR team?
While both HR outsourcing and building an in-house team bring their own advantages, the decision will depend on your specific business needs.
According to Deloitte's Global Outsourcing Survey, these are the top reasons why businesses are outsourcing functions, including HR:
- Improved access to talent: 42%
- Spend optimization: 34%
- Improved quality/performance: 33%
- Adoption of global delivery model: 33%
- Better alignment to business strategy and operating model shifts: 27%
- Need for flexible and scalable talent model: 23%
In other words, HR outsourcing makes more sense when:
- HR operations are detracting you from core business functions
- Building a full-time, in-house HR team is too expensive
- You’re experiencing high employee dissatisfaction and churn rates
- You need specialized expertise
- You need help navigating labor laws and sector-specific regulations, especially for multi-state and international operations
How involved does management need to be when using these types of services?
Outsourcing HR doesn't mean eliminating internal people management, but it means redirecting your focus from administration to strategy.
Your leadership team remains responsible for organizational culture, performance expectations, hiring decisions, and employee development priorities.
The HR outsourcing provider handles execution, compliance, and day-to-day administration.
Expect regular check-ins with your provider. Most start with weekly or biweekly touchpoints during the first few months, transitioning to monthly reviews once processes stabilize.
You'll approve payroll runs, review compliance reports, and make final decisions on employee relations matters.
The provider brings expertise and recommendations; you make the calls, ensuring that everything aligns with your company's values and goals.
How do I measure whether HR outsourcing is delivering value?
To measure if the HR outsourcing company is delivering value to your business, start by defining your expectations and service level agreement (SLAs).
This includes your measurable business objectives, performance metrics, and current benchmarks.
Here are some of the most common HR outsourcing benchmarks to consider:
- Time to complete: Average time it takes for the provider to complete a task, such as filling in a position or processing payroll
- Employee satisfaction: Assesses how employees feel about HR services and can be tracked via turnover rates, exit interview feedback, and employee surveys
- Payroll accuracy rate: Monitors the percentage of error-free payroll transactions filed by the provider and determines their reliability
- Administrative time savings: Calculates the time previously spent on HR functions that are now being outsourced
- Cost savings: Measures the amount of money saved by outsourcing HR functions
Small companies with 25 employees and a monthly HRO cost of $120-$200 can expect an average return on investment (ROI) of 150%.
Mid-sized businesses with around 100 employees and a monthly HRO of $430-$500, on the other hand, can experience an ROI of 175%.
For large enterprises with over 500 employees and an HRO of $2,000-$3,000 per month, the average ROI is 191%.
Sources
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- Our dedicated team of agency experts actively searches the web for top-performing companies. We then pull information from their websites, online presence, and client testimonials to verify their status and qualifications prior to listing.
- The agencies listed get notified of their profiles on the website and they can choose to claim it or not, which suggests their availability for more collaborations.
Agencies can also reach out to DesignRush and must go through the verification process prior to being listed.
Why companies trust DesignRush
Every agency is independently vetted before it can be listed or ranked
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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 |
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What questions should I ask before hiring?
Ask these questions before hiring an HR outsourcing company:
Relevant Background
- What HR functions do you cover, and what is your expertise?
- Can you provide case studies or references for companies similar to our business size, industry, and complexity?
- What is your compliance coverage per state and per country?
Services and Processes
- Can you walk me through your end-to-end processes (e.g., onboarding, payroll cycles, offboarding)?
- What HR tools and technologies do you use, and can you integrate them with my IT ecosystem?
- What is your security and data governance approach, and what are your disaster recovery commitments?
Related to Your Project
- What administrative effort is required from our team weekly/monthly?
- Can you scale services as we grow (new states/countries, headcount, acquisitions), and what changes in pricing or support model?
- 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%
Latest Trends Related to HR Outsourcing
