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.
As a Global Employer Of Record (GEOR), we strive to provide organizations that hire globally with efficient solutions for staffing, staff augmentation, workforce management, payroll and more. With more than a decade in software development, we have developed a blend of technical and recruitment expertise that...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Managed Services
- Software Development
- Show more
- Location
- Alexandria, Virginia
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $55/hr
- Portfolios Count
- 8 Projects Listed
Remofirst was founded in 2021, remote-first since the very beginning. Our mission is to simplify the way companies build remote teams. We believe in people, excellence, and delivery. Our pricing starts at $199/month...
Top Services:
- HR Outsourcing
- Customer Support
- Location
- San Francisco, California
- Number of Employees
- 50 - 99
- Minimal Budget
- Under $1,000
An IT staffing company providing custom HR solutions to help businesses hire tech talent efficiently, build high-performing teams, and scale with confidence...
Top Services:
- Staff Augmentation
- HR Outsourcing
- IT Services
- Location
- Wilmington, Delaware
- Number of Employees
- Under 49
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 2 Projects Listed
IT managed services, offshore team in Poland , Romania , and LATAM , highly-technological clients with ultra high satisfaction...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Mobile App Development
- Web Development
- AI Development
- Show more
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $55/hr
- Portfolios Count
- 15 Projects Listed
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
Blue Signal is a distinguished executive search and recruiting firm, dedicated to delivering top-tier talent acquisition solutions across various industries. Committed to excellence, we offer a comprehensive suite of services tailored to meet the unique needs of our clients...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $10,000 - $25,000
DNA325 specializes in connecting US & EU companies with top-tier European IT talent through 9+ years of proven recruitment expertise. We help businesses hire mid-level+ and executive professionals for long-term partnerships.Our services include full-cycle recruitment, recruitment process outsourcin...
Top Services:
- HR Outsourcing
- Software Development
- Digital Marketing
- Staff Augmentation
- Show more
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
ALLSTARSIT is an international outstaffing service provider that helps businesses recruit, pay, insure, and support top global talent with payroll, benefits, and more...
Top Services:
- HR Outsourcing
- BPO
- Customer Support
- Staff Augmentation
- Managed Services
- Show more
- Location
- San Francisco, California
- Number of Employees
- 1000 & Up
PCR Staffing is a recruiting agency that provides companies in across the nation with timely top talent and custom staffing strategies through four specialized hiring models: Direct Hire, Contract, Contract to Hire, Statement of Work.We have a trusted track record as a recruiting partner that delivers...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Charlotte, North Carolina
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $80/hr
- Minimal Budget
- $10,000 - $25,000
Our USA-based Medical Billing Company streamlines billing operations for healthcare providers, ensuring increased revenue, reduced costs, and minimized risk. From small practices to large hospitals, we handle denials management, credentialing, coding, and payer verification with expert precision...
Top Services:
- BPO
- HR Outsourcing
- Call Centers
- Accounting
- Show more
- Location
- Evesham, New Jersey
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $20/hr
- Portfolios Count
- 3 Projects Listed
Lana Talent is a Miami-based recruitment agency specializing in connecting U.S. companies with highly skilled professionals from Latin America. By leveraging a network of over 100 recruiters, Lana Talent offers services like Talent Augmentation and Talent Delivery, focusing on cultural fit and cost-effective...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
We are on an endless pursuit to deliver quality solutions and strive towards customer service excellence. Each day brings a fresh opportunity to reinvent our mission, purpose and vision...
Top Services:
- Software Development
- IT Services
- Managed Services
- Location
- Parsippany-Troy Hills, New Jersey
- Number of Employees
- Under 49
Oxford Global Resources is an IT training, talent-driven staffing and consulting company with more than 30 offices across North America and Europe. We provide you with the flexibility to scale your workforce in various ways and build a customized solution to meet your objectives. Our services range from...
Top Services:
- HR Outsourcing
- Business Consulting
- Staff Augmentation
- Location
- Los Angeles, California
- Number of Employees
- 500 - 999
BrainGain Recruiting is a leading recruiting and talent acquisition firm, dedicated to providing exceptional staffing solutions across diverse industries. Committed to excellence, we offer a comprehensive range of services tailored to meet the unique needs of our clients...
Top Services:
- HR Outsourcing
- Location
- Palo Alto, California
- Number of Employees
- Under 49
Barbachano International (BIP) is the premier Executive Search and leadership advisory firm in the Americas with a focus on diversity and multicultural target markets. Since 1992, BIP and its affiliates have served over 50% of Fortune 500 Companies...
Top Services:
- HR Outsourcing
- Location
- Chula Vista, California
- Number of Employees
- Under 49
Artech is the largest Women & Minority owned IT staffing firm in the US, with US$ 800 million annual revenue run rate in 2021 and a footprint across the globe. With nearly three decades of experience, Artech empowers businesses through applied human intelligence and offers a spectrum of services...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Morristown, New Jersey
- Number of Employees
- 1000 & Up
Seasoned C-Suite and Business Unit leaders around the world work with our Managing Principal & Co-Founder Ron Bates to conquer unique challenges that drive aggressive business outcomes in highly competitive industries...
Top Services:
- HR Outsourcing
- Location
- Sunnyvale, California
- Number of Employees
- Under 49
PSG Global Solutions stands as a leading provider of end-to-end recruiting talent acquisition and workforce management solutions, dedicated to shaping the future of global workforce dynamics...
Top Services:
- HR Outsourcing
- Location
- Marina del Rey, California
- Number of Employees
- 1000 & Up
- Portfolios Count
- 1 Project Listed
Syfter is a national strategic business partner providing leading expertise for hiring in technology...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- New York City, New York
- Number of Employees
- Under 49
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
Established in 1972, Eastridge Workforce Solutions is an employee-owned provider of full-service talent acquisition and management solutions for companies globally. Ranked as a top professional recruiting firm by Forbes and in the top 1% of firms by Staffing Industry Analysts, Eastridge proudly helps more...
Top Services:
- HR Outsourcing
- Accounting
- Staff Augmentation
- Location
- San Diego, California
- Number of Employees
- 500 - 999
At the forefront of Talent Solutions, AccruePartners is your source for today’s top talent. Our proven proprietary business systems combined with an unwavering commitment elevates our company to the forefront of the recruiting industry. With predictable precision, we deliver top-tier talent solutions across...
Top Services:
- HR Outsourcing
- Location
- Charlotte, North Carolina
- Number of Employees
- 250 - 499
Founded in 2014 by Paul David, Identified Talent Solutions is a recruitment services and talent acquisition consulting firm. Identified Talent Solutions ran as a full service recruitment firm working with many Fortune 500 companies...
Top Services:
- HR Outsourcing
- Location
- Irvine, California
- Number of Employees
- Under 49
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
Founded in 2000 with a mission to do things differently, NCW is a team of staffing and professional recruitment specialists that deliver innovative solutions to hiring challenges...
Top Services:
- HR Outsourcing
- Location
- Indianapolis, Indiana
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
From individuals and entrepreneurs, small and medium-sized businesses, right through to large corporations and government bodies, our administrative assistants are helping our clients become more efficient by streamlining their processes...
Top Services:
- Customer Support
- BPO
- Market Research
- Transcription Services
- Translation Services
- Show more
- Location
- New York City, New York
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $24/hr
Kiwi Partners delivers high quality Project Management, Accounting, Consulting Services, and HR services to the nonprofit community. For over 20 years, our consistent high quality service have provided clarity to the reader of a nonprofit’s financial statement, enhanced funders’ confidence to give, and...
Top Services:
- Business Consulting
- Accounting
- BPO
- HR Outsourcing
- Show more
- Location
- New York City, New York
- Number of Employees
- 100 - 249
Walter & Shuffain is a results-driven firm which serves as the trusted advisors to privately-held businesses and their owners. We provide consulting, tax and estate planning, and accounting services to a variety of business sectors including: real estate, professional services, healthcare, technology...
Top Services:
- HR Outsourcing
- Business Consulting
- Accounting
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
Founded in 1990, Solomon Page is a specialty niche provider of EOT, staffing and executive search solutions across a wide array of functions and industries. The success of Solomon Page reflects an organic growth strategy supported by a highly entrepreneurial culture. Acting as a strategic partner to our...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 1000 & Up
Russell Tobin, one of the nation’s leading minority-owned project management, recruitment, employer of record , business consulting, and staffing advisory firms, offers a tailored approach to helping organizations connect with direct hire and contract employees across a variety of skill sets and...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 250 - 499
We specialize in recruiting for Human Resources, Office Support, Executive/Administrative Assistants, Finance, Accounting, Creative Services, Graphics, and Marketing roles in the New York Metropolitan area. Our services include Temporary Staffing, Direct Hire, Contract to Hire, Customized Staffing Solutions...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
JER HR Group offers customized HR support and consulting services to organizations of all sizes, including Fortune 500 Companies. Our experienced team of professionals assists with interim HR management, compliance issues, HR department setup, recruitment, compensation systems, safety inspections, training...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
Gainor is a leading, women-owned staffing agency in New York that has been a driving force in the industry since 1982. Our staffing firm immerses itself in fast-growing businesses and candidates’ careers to fully understand their priorities and direction. Our reputation is built on consistently...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
TemPositions is a premier staffing and workforce solutions company, dedicated to connecting businesses with top-tier talent since its inception...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
- Portfolios Count
- 1 Project Listed
The Oxbridge Group, an executive search firm, is dedicated to identifying and recruiting the top investment professionals for investment funds and corporations. Our investment fund client base includes private and public funds of all market capitalizations across all industry verticals. Specific strategies...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
Here at WorkProud, we have a history of designing succesful employee reward programs that have helped numerous organizations start a culture of recognition and appreciation. We are confident we can do the same for your organization. Selecting the right partner for program design can make an enormous...
Top Services:
- HR Outsourcing
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
Employer enthusiasts and jobseeker advocates, we’re passionate about connecting candidates with opportunities. We’re partnered with a national network of professionals with expertise ranging from corporate support to healthcare. We’ve built our business by assessing client needs and pairing them with...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
Clarke Executive Services Group is an operations consulting and team solutions firm that works with business owners to improve the infrastructure, organization, procedures, talent, and performance of their companies. Clarke is the long-term solution for your long-term success...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Los Angeles, California
- Number of Employees
- Under 49
HR Options is guided by unwavering principles, building lasting relationships for over 35 years. Founded in 1984, our entrepreneurial spirit and commitment to excellence drive our success. Our core values of loyalty, humility, kindness, and more shape our company culture. We cherish the extraordinary client...
Top Services:
- HR Outsourcing
- Location
- Concord, California
- Number of Employees
- 1000 & Up
We designed our advanced business and accounting services to better help your business establish a solid foundation for growth. You can customize your service package further by adding payroll, accounting, human resources, tax preparation or any of our other help you might require in addition to business...
Top Services:
- BPO
- Accounting
- HR Outsourcing
- Location
- San Diego, California
- Number of Employees
- Under 49
CA HR Services employs seasoned HR professionals with years of hands-on experience in a variety of industries. Collectively, our team possesses over 200 years of HR and Recruiting experience!Responsiveness - We serve as your "On-Call/On-Demand HR Department," always on standby, ready to respond to all your...
Top Services:
- HR Outsourcing
- Location
- San Marcos, California
- Number of Employees
- Under 49
California employment law is complicated and constantly changing. To stay current and in compliance, professional HR support is critical. South Bay HR delivers quality, affordable professional human resources and recruiting services for employers throughout Southern California. Our company’s expertise...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Redondo Beach, California
- Number of Employees
- Under 49
Idomeneo Enterprises is a strategic business process outsourcing firm, specializing in Human Resources. Headquartered in West Hollywood, CA Idomeneo Enterprises provides HR solutions for emerging and mid sized companies. Idomeneo’s strategy of providing human resources expertise, technology leveraged...
Top Services:
- HR Outsourcing
- Location
- West Hollywood, California
- Number of Employees
- Under 49
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
Riviera Advisors is a premier global human resources consulting firm that specializes in helping organizations develop stronger internal recruiting and staffing capabilities. Working with organizations across virtually every industry, from start ups to Fortune 500s, Riviera Advisors blends an unparalleled...
Top Services:
- HR Outsourcing
- Location
- Long Beach, California
- Number of Employees
- Under 49
We founded the ESC in 1995 to meet the increasing Human Resources and Employment Administration needs of the growing small & medium-sized business market in Western New York and throughout the country. Each client of the ESC started with a conversation – an opportunity for our team to learn about the...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Buffalo, New York
- Number of Employees
- 50 - 99
You rely on your employees to move your business forward, they rely on you to deliver an experience equivalent to the experience they deliver to your customers - honest, accurate and timely. So how do you ensure you deliver on your obligations to your employees? Do it with the help from the EBC HR & Payroll...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Location
- Buffalo, New York
- Number of Employees
- 100 - 249
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
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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 |
|
|
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
