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.
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
Over 10 years of experience. 50+ experts, 100+ 5-star Google reviews. Brands like Volvo and KPMG trust us to grow across borders with multilingual marketing that works. We can help your business do the same. Ready to scale? Let's talk...
Top Services:
- Digital Services
- PPC
- SEO
- Branding
- Digital Marketing
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $130/hr
- Portfolios Count
- 8 Projects Listed
At Zuswork, our recruitment experts are dedicated to connecting qualified talent with incredible employers. We believe connection is key to success and growth for everyone involved, employees and employers...
Top Services:
- HR Outsourcing
- Location
- Pleasanton, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $35/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
We build a lot of things. Strategies. Brands. Campaigns. Futures. But our ultimate goal is to build something bigger, deeper and more long-term than any transaction or click-through. We work extra hard to build meaningful, lasting relationships - the kind where everyone wins. It's better together...
Top Services:
- Branding
- Web Design
- Social Media Marketing
- Digital Marketing
- Web Development
- Show more
- Location
- Reston, Virginia
- Number of Employees
- Under 49
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 2 Projects Listed
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
Best Recruiting and Staffing Service in USA offer end-to-end recruitment and workforce solutions across various industries in the US...
Top Services:
- HR Outsourcing
- Managed Services
- Location
- Farmington Hills, Michigan
- Number of Employees
- 50 - 99
- Minimal Budget
- Under $1,000
LGC Hospitality is the premier hospitality staffing company in the U.S. We strive to provide a best in class experience for both clients and workers through excellent customer service and a variety of work opportunities. We currently have 30+ locations around the country and are expanding rapidly...
Top Services:
- HR Outsourcing
- Location
- Indianapolis, Indiana
- Number of Employees
- 100 - 249
VBeyond Corporation is a Staffing, Search & RPO firm with over 10 years of industry experience. Incorporated in 2006, we are committed to providing the highest level of service in the industry...
Top Services:
- HR Outsourcing
- Location
- Hillsborough Township, New Jersey
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $70/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
CRI helps business leaders improve hiring with clear, actionable results about each candidate. CRI pre employment assessments feature a unique, proprietary advantage which puts CRI above all other workplace aptitude tests. The Achiever Assessment™ was the first workplace assessment to combine mental and...
Top Services:
- HR Outsourcing
- Location
- Fort Worth, Texas
- Number of Employees
- Under 49
The Ranger Group is a full service recruiting firm specializing in contract, contract to hire and full time placement services. Through our industry specific divisions: Ranger Technology, Ranger Architecture, Engineering & Construction, and Ranger Manufacturing & Industrial our customers confidently rely on...
Top Services:
- HR Outsourcing
- Location
- Frisco, Texas
- Number of Employees
- 100 - 249
Offering IT training, technology, and business solutions. nTech Workforce is an ISO/IEC 20000-1:2018 and MBE certified organization, based in the greater Baltimore/Washington Metro Area...
Top Services:
- HR Outsourcing
- Accounting
- Staff Augmentation
- Location
- Columbia, Maryland
- Number of Employees
- Under 49
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
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
What makes AmeriSource HR unique is our customization. We base our involvement on what works for our clients’ HR business needs...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
IT Advisors Online (ITAdOn) is a growing team of technology experts who are passionate about helping companies like yours boost their effectiveness. Join ITAdOn today and grow your business. When you succeed, we succeed!...
Top Services:
- IT Services
- Managed Services
- HR Outsourcing
- UI/UX Design
- IT Compliance Solution
- Show more
- Location
- Philadelphia, Pennsylvania
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 1 Project Listed
Innovative Solutions Unlimited, LLC (inSolves) is an agile team of project leaders, scientists, engineers, technicians, and fabricators with headquarters in southern Ohio...
Top Services:
- HR Outsourcing
- Location
- Piketon, Ohio
- Number of Employees
- 100 - 249
Spero has grown a long list of loyal clients, its because of our people. Armed with deep knowledge of their vertical, each member of our technical recruiting team works every day to uncover hidden talent...
Top Services:
- Staff Augmentation
- IT Services
- HR Outsourcing
- Location
- Irving, Texas
- Number of Employees
- 50 - 99
We offer comprehensive and scalable HR solutions with unmatched care. Leverage our premium services and technology for administrative relief, reduced liabilities and better benefits. With a nationwide impact and local presence, we drive sustained growth for businesses and make a difference in communities...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Houston, Texas
- Number of Employees
- 1000 & Up
- Portfolios Count
- 3 Projects Listed
Techjays is an AI development company helping businesses reimagine how work gets done with AI. Combining AI consulting and AI development services, Techjays identifies high-value business workflows, redesigns processes around AI, and builds production-ready systems that deliver measurable outcomes...
Top Services:
- Software Testing
- Software Development
- Mobile App Development
- Web Development
- UI/UX Design
- Show more
- Location
- Menlo Park, California
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
Gables Search Group is able to tailor a program to a company's objectives and provide them with the most qualified candidate(s). Our database of resumes contains tens of thousands of candidates, allowing us to provide keyword and customized searches tailored to a company's requirements. Depending on the...
Top Services:
- HR Outsourcing
- Location
- Willoughby, Ohio
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
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
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
KritiKal Solutions is a technology design house and holds 22+ years of experience in AI, Computer Vision, Software Applications, Cloud and Mobile-based Solutions, Embedded Systems, Generative AI and Large Language Models. We specialize in R&D, product engineering, and innovation services...
Top Services:
- AI Development
- IoT
- Mobile App Development
- Software Development
- Wearables
- Show more
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 4 Projects Listed
HR Catalyst Consulting offers strategic HR solutions for small to mid-sized companies, drawing on 20+ years of HR experience. As a servant leader, we believe in a pay-it-forward philosophy, and our goal is to optimize your human capital for maximum bottom-line results...
Top Services:
- HR Outsourcing
- Location
- Fort Worth, Texas
- Number of Employees
- Under 49
The Human Resource Consulting Group (HRCG) is your full-service HR consulting and outsourcing firm, offering payroll processing, compliance management, time and attendance, and benefits administration. With over 32 years of experience, we're committed to freeing you from administrative paperwork so you can...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Seymour, Connecticut
- Number of Employees
- Under 49
- Portfolios Count
- 2 Projects Listed
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
Personiv offers flexible outsourced accounting solutions to optimize finance operations and reduce costs. With a dedicated team approach, the firm empowers businesses to refocus on strategic initiatives while handling their day-to-day financial tasks efficiently and professionally. Personiv specializes in...
Top Services:
- Accounting
- BPO
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- 1000 & Up
ASK 2 PRO delivers expert virtual assistant services nationwide, helping businesses streamline tasks, boost efficiency, and expand their network. From admin to communication, we handle the details so you can focus on growth and success...
Top Services:
- Web Development
- Digital Marketing
- AI Development
- HR Outsourcing
- Customer Support
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $7/hr
Smartbrain.io is a platform connecting companies with the best IT specialists from all over the world...
Top Services:
- IT Services
- HR Outsourcing
- Location
- San Francisco, California
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $40/hr
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
Our sales recruiting firm specializes in technology sales, software sales, industrial sales, and general B2B sales staffing (medical, pharmaceutical, and b2b insurance). We target recruit (headhunt) top sales performers with the exact backgrounds you are looking for...
Top Services:
- HR Outsourcing
- Location
- Seattle, Washington
- Number of Employees
- Under 49
Welcome to Cornerstone Global HR, your trusted partner for comprehensive HR services. We specialize in delivering tailored solutions to address the unique challenges faced by organizations in talent acquisition, payrolling, employer of record services, onboarding, and more. With our expertise and commitment...
Top Services:
- HR Outsourcing
- Business Consulting
- BPO
- Location
- The Woodlands, Texas
- Number of Employees
- Under 49
Partner with us for comprehensive business solutions. Whether you need long-term recruitment support or streamlined operational assistance, we offer tailored expertise to meet your unique requirements. Our dual-support approach ensures efficient, effective solutions that drive your business forward...
Top Services:
- Branding
- HR Outsourcing
- Web Development
- Creative Services
- Public Relations
- Show more
- Location
- Linden, New Jersey
- Number of Employees
- Under 49
Eightfold AI empowers organizations to recruit efficiently, retain top talent, and upskill/reskill their workforce. Operating in 155+ countries and 24 languages, our platform leverages advanced analytics to drive diversity and transform talent into a strategic advantage...
Top Services:
- HR Outsourcing
- AI Development
- Location
- Santa Clara, California
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $40/hr
Lightrise Consulting delivers purpose-driven Cloud IT solutions that empower businesses to scale sustainably. We combine technical excellence with a commitment to environmental and social impact, transforming IT and HR headaches into meaningful progress...
Top Services:
- Managed Services
- Cybersecurity
- AI Development
- HR Outsourcing
- VR/AR
- Show more
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 1 Project Listed
Sundus is a leading global HR solutions provider with over 27 years of experience. The company is 100% Emirati-owned and managed, with a highly diversified international team that has extensive experience in human resource management. Sundus offers a comprehensive range of services that include HR outsourcing...
Top Services:
- HR Outsourcing
- BPO
- Staff Augmentation
- Business Consulting
- Logistics
- Show more
- Location
- Newark, Delaware
- Number of Employees
- 100 - 249
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
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
Howdy helps U.S. companies scale their engineering teams by hiring, retaining, and supporting the top 1% of tech talent in Latin America. With a white-glove, fully managed approach, Howdy delivers vetted engineers, in-country infrastructure, and a 98% retention ratefaster and more affordably than traditional...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- 100 - 249
Founded in 2020 and headquartered in Houston, Mindwhiz provides flexible staff augmentation services designed to meet workforce demands across construction, IT (cybersecurity), accounting and finance. We help companies scale faster with skilled talent, delivered through a hybrid model that blends global reach...
Top Services:
- Staff Augmentation
- IT Services
- HR Outsourcing
- Accounting
- Digital Marketing
- Show more
- Location
- Houston, Texas
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $10/hr
SOC2.in is a global leader in affordable SOC 2 compliance solutions, offering audit-ready offshore talent that saves up to 80% on staffing costs. With 10+ years of expertise and 1000+ successful projects, we help startups and enterprises achieve fast, reliable, and secure compliance without compromising...
Top Services:
- IT Compliance Solution
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $5/hr
- Minimal Budget
- Under $1,000
The HR Innovator Group helps businesses transform their peopler operations with customized HR support, compliance expertise, and HR technology optimization, building scalable systems that drive growth and culture...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- San Diego, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $85/hr
- Minimal Budget
- $1,000 - $10,000
GlobalRAWS is an international recruitment organization. Located In New York, we are recognized as a trusted global workforce solution provider across Asia, Europe, Middle East, Africa, Australia, and the Americas. Visit our website to learn more about our services and get in touch with our team...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $149/hr
RediRecruit helps companies in the United States, United Kingdom, Canada, UAE, Australia, and worldwide recruit smarter and hire faster. We specialize in Recruitment Process Outsourcing (RPO), LinkedIn Candidate Sourcing, High-Impact Outreach, Virtual HR support, and B2B lead generation. Our team works as an...
Top Services:
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $25/hr
- Minimal Budget
- Under $1,000
Dynamic Consultants Group (DCG) is a technology consulting firm and Microsoft Partner specializing in helping organizations leverage data, business applications, and digital solutions to drive growth and efficiency. They deliver structured data migration, integration, implementation, and support services to...
Top Services:
- Big Data Analytics
- CRM Consulting
- ERP Consulting
- HR Outsourcing
- Show more
- Location
- Kansas City, Missouri
- Number of Employees
- 100 - 249
Precision Sales Recruiting is a specialized sales recruiting firm serving manufacturing companies nationwide. We help organizations hire revenue-producing sales professionals with experience selling complex and technical solutions, reducing hiring risk and improving long-term performance...
Top Services:
- HR Outsourcing
- Location
- Fort Worth, Texas
- Number of Employees
- Under 49
- Minimal Budget
- $10,000 - $25,000
Fast Dolphin is a nearshore IT and Engineering staffing firm that helps US companies build technical teams across Latin America. We focus on two staffing models, Temporary Staffing and Direct Hire Staffing, with bilingual professionals in US time zones and the first candidate in 24 to 48 hours...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Davie, Florida
- Number of Employees
- 50 - 99
- Minimal Budget
- $1,000 - $10,000
Extend Staffing is an international staffing, recruitment, and HR services agency that helps organizations hire skilled candidates, fill critical roles, and build stronger teams...
Top Services:
- HR Outsourcing
- Accounting
- Transcription Services
- Location
- Houston, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $12/hr
- Minimal Budget
- $1,000 - $10,000
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HR Outsourcing Companies by City
HR Outsourcing Companies by State
HR Outsourcing Specializations in the US
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
DesignRush sustains a directory of over 40,000 agencies categorized by service category, location, expertise, and reviews. We build our database in two ways:
- 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 |
|
|
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
