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.

United States × Software & IT Services × Sort by: Top Rated ×Clear Filters
  • Hire and manage tech talent efficiently.

    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
  • Legally employ anyone, anywhere with one click.

    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
  • Grow faster. Scale efficiently. Outstaff Your Team

    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
  • Global IT Recruiting

    Were a global recruitment and staffing partner dedicated to finding, hiring, and managing tech & creative talent...

    Top Services:

    • HR Outsourcing
    Location
    Sheridan, Wyoming
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    3 Projects Listed
  • Powered by talent. Defined by results.

    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
  • Engage And Connect Like Never Before

    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
  • Happy and Engaged Developers for Long-Term Success

    We help your tech-savvy company find and hire software developers in South America, specially in Colombia, through a bold model that achieves long-term engagements with local legal contracts and benefits. Our unique model maximizes developers salaries without increasing the hiring-company end cost. Our...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    50 - 99
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    6 Projects Listed
  • Work with the agency backed by 10+ Years, 100+ 5-Star Reviews & 50+ Marketing Experts

    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
  • Find Your Top Tech Talent

    Our IT recruiting agency, ITExpert, specializes in finding highly skilled IT specialists all over the world. This way, you can save time and focus on business development instead of searching for employees and micromanaging...

    Top Services:

    • Staff Augmentation
    • IT Services
    • HR Outsourcing
    Location
    San Francisco, California
    Number of Employees
    50 - 99
    Average Hourly Rate
    $40/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    3 Projects Listed
  • Full cycle IT recruitment agency in Eastern Europe and Latin America

    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
  • Transforming IT Challenges into Cloud Consulting Success Since 1992.

    CRA is your go-to partner for transformative IT and Cloud Consulting. As an award-winning provider since 1992, we offer tailored solutions in managed IT, cloud storage, cybersecurity, and more. We specialize in optimizing productivity and driving profitability for various sectors, including law firms and...

    Top Services:

    • IT Services
    • Managed Services
    • Cloud Consulting
    • Cybersecurity
    • HR Outsourcing
    • Show more
    Location
    New York City, New York
    Number of Employees
    50 - 99
    Average Hourly Rate
    $18/hr
    Portfolios Count
    5 Projects Listed
  • Modern-Day Matchmakers - Our Talent Is Finding Yours!

    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
  • GLOBAL TECH TALENT, LOCAL IMPACT.

    EchoGlobal Tech specializes in delivering exceptional remote engineering talent aligned with your company's values and cultural ethos. Always quality over quantity!...

    Top Services:

    • Staff Augmentation
    • Software Development
    • Mobile App Development
    • IT Services
    • Cloud Consulting
    • Show more
    Location
    Wilmington, Delaware
    Number of Employees
    Under 49
    Average Hourly Rate
    $40/hr
    Portfolios Count
    9 Projects Listed
  • Empowering Businesses with Exceptional Talent!

    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
  • Your Security Partner.

    If you think about SOC2, ISO27001, ISO 42001, GDPR, HIPAA, HITRUST Services, Securis360 For you! We weave a web of protection so strong, even the most cunning spider wouldn't dare to tangle...

    Top Services:

    • Staff Augmentation
    • Big Data Analytics
    • IT Compliance Solution
    • Cybersecurity
    • Market Research
    • Show more
    Location
    Pittsburgh, Pennsylvania
    Number of Employees
    50 - 99
    Average Hourly Rate
    $10/hr
    Minimal Budget
    Under $1,000
  • Precision Billing, Maximum Revenue, Minimal Risk.

    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
  • Fastest and Reliable Recruitment Agency in Nigeria, and Georgia (USA)

    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 Drive Success - Helping Organizations Improve Their Operations, People, Brand.

    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
  • Hire Top Talent On Demand.

    BorderlessMind is a premier remote IT talent provider that helps tech companies hire offshore, nearshore, and onshore remote-talent from across the globe. We have the best-in-class hiring process and help build high-quality teams with a remote global talent for our clients...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Dallas, Texas
    Number of Employees
    100 - 249
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $25,000 - $50,000
    Portfolios Count
    1 Project Listed
  • We optimize. You Capitalize

    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
  • Bringing Bright Ideas to the Table, to Find the Right Solutions Together.

    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
  • Helping Companies Establish & Expand Their Digital Footprint

    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
  • Excellence Reimagined

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

    Top Services:

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

    Since 1951, Snelling has set the standard for innovative staffing and recruitment solutions. Our commitment to both client and candidate success is the driving force behind our longevity. By combining our award-winning history with industry-leading technology, the experts at Snelling have what it takes to...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Goose Creek, South Carolina
    Number of Employees
    1000 & Up
  • PROFESSIONAL STAFFING EXPERTS

    IFG specializes in mid to professional-level staffing across industries including medical, accounting and finance, legal, sales, and customer service. Our dedicated focus empowers us to deliver top-notch candidates, along with unparalleled trust, attention, and value...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Phoenix, Arizona
    Number of Employees
    Under 49
  • Let Our Team Help With Your Next Hire!

    Let our team help with your next hire! Matching talent with opportunity...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Redondo Beach, California
    Number of Employees
    Under 49
  • Staffing Solutions

    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
  • Your Trusted Partner for Growth.

    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
  • Staffing & Recruiting Solutions

    A committed team of good people is working round the clock in recreating the world of Staffing and Talent Acquisition industry by providing efficient solutions.Since its birth in 2008, Maven Workforce has made big strides and become a leader in the Staffing and Talent Acquisition industry. From small to...

    Top Services:

    • HR Outsourcing
    Location
    Jersey City, New Jersey
    Number of Employees
    100 - 249
    Average Hourly Rate
    $50/hr
  • Smartest Software Solutions, right on time

    We're a leading IT custom software firm with 30 years of experience in LATAM. Our elite 10% developer team delivers top-notch quality, speed, and affordability, as proven by clients like Motorola, Intel, IBM, and Oracle. We offer Software Dedicated Teams and Staff Augmentation to boost your project...

    Top Services:

    • Software Development
    • Staff Augmentation
    • Software Testing
    • IT Services
    • HR Outsourcing
    • Show more
    Location
    Atlanta, Georgia
    Number of Employees
    500 - 999
    Average Hourly Rate
    $40/hr
    Minimal Budget
    $50,000 & Up
  • HR Expertise You Can Trust

    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
  • Professional & Temp Staffing Agency

    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
  • Exceptional Outsourcing Solutions

    Everise offers enterprises the solutions and technology they need to rapidly scale their brands across markets, and to evolve their offering through the product or service lifecycle. Some of the world’s most loved brands have products and services that are tested, protected, supported and sold by Everise...

    Top Services:

    • BPO
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    1000 & Up
    Average Hourly Rate
    $100/hr
  • We help you Outsource Sales. The Right Way.

    Cloudtask is a company that provides business professionals with solutions to their key challenges so they can focus on what matters most - making money! Cloudtasks' experienced consultants identify your current pain points and provide guidance through every step of finding an effective outsourced partner or...

    Top Services:

    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    50 - 99
  • Top Remote Staffing Agency

    CrewBloom connects businesses with a network of pre-vetted sales and support professionals. By taking over the time-consuming aspect of sourcing and recruitment, and taking care of HR & Payroll tasks for our outsourced vendors, we help our clients scale faster and outsource effortlessly...

    Top Services:

    • HR Outsourcing
    Location
    New York City, New York
    Number of Employees
    250 - 499
  • We Get People.

    Luna Data Solutions is a staffing firm headquartered in Austin that specializes in IT staffing and customized project services. With over twelve years of progressive growth in the technical staffing and consulting industry we have come to understand that our success is a direct result of our organizational...

    Top Services:

    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    Under 49
  • Unlocking Your Company's Potential Starts with Talent.

    HireBetter is the award-winning strategic talent partner for entrepreneurial, growth-minded, middle-market companies that need the right solutions to thrive and scale. Recognized by Forbes as one of America's Best Executive Recruiting Firms, HireBetter supports organizational growth and change by developing...

    Top Services:

    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    Under 49
  • Make Great Staffing Decisions

    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
  • HR & Staffing Solutions

    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
  • Empower Your Workforce.

    Empower your organization with comprehensive HR solutions, employee benefits administration, EOR services, streamlined payroll management, and risk mitigation strategies. Our seasoned experts deliver unparalleled client service, leveraging technology and industry insights for your success...

    Top Services:

    • HR Outsourcing
    Location
    Fort Lauderdale, Florida
    Number of Employees
    100 - 249
  • The FrankCrum family of businesses, what we call “A Family of Employer Solutions,” includes three operating companies: FrankCrum Staffing, FrankCrum (a Professional Employer Organization – PEO) and Frank Winston Crum Insurance. It all started with staffing when Frank Crum, Jr. (now CEO of FrankCrum) and...

    Top Services:

    • HR Outsourcing
    Location
    Clearwater, Florida
    Number of Employees
    Under 49
  • #1 Trusted Remote Staffing Solutions for Property Management Professionals

    Extenteam delivers the #1 trusted remote staffing solutions for property management professionals in the short-term rental, multifamily, real estate, and PropTech industries - with up to 60% savings compared to local hiring...

    Top Services:

    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    100 - 249
  • Where Process Meets Partnership

    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
  • Building A Better Working World

    EY offers Accounting, Business Consulting, and IT Services with a mission to build a better working world. It provides insights and quality services that instill trust in global capital markets and economies. EY focuses on developing exceptional leaders who deliver on their commitments to all stakeholders...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Accounting
    • Cybersecurity
    • IT Services
    • Show more
    Location
    Sacramento, California
    Number of Employees
    1000 & Up
  • The HT Group, hire performance powered by you

    The HT Group is a comprehensive management consulting, staffing, and recruiting agency in Austin, built upon the foundation of integrity, transparency, and trust. Deeply rooted in its communities, The HT Group’s philosophy is to change lives, one job or project at a time...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • Business Consulting
    Location
    Austin, Texas
    Number of Employees
    250 - 499
    Average Hourly Rate
    $25/hr
    Minimal Budget
    $1,000 - $10,000
  • Focuses on Your Accounting Needs

    We are a regional professional services firm with services in Accounting, Tax, Audit, Consulting, Business Valuation, Insurance, Financial Services, Marketing, Human Resources, IT and more! We seek to provide a holistic approach of services to our clients to help them achieve their goals in business and life...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    Location
    Phoenix, Arizona
    Number of Employees
    250 - 499
    Average Hourly Rate
    $35/hr
    Minimal Budget
    $1,000 - $10,000
  • Largest Global Asian-American Executive Search & HR Consulting Firm in the World

    HRCap, Inc. was founded in 2000 with the vision to connect talented candidates to successful organizations to unlock potentials and create greater value. We operate globally with focus in North America, Europe and APAC areas. With our rich history, seasoned capacities, and press-worthy accomplishments, we are...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Market Research
    Location
    Ridgefield Park, New Jersey
    Number of Employees
    50 - 99
    Average Hourly Rate
    $200/hr
  • We create custom learning programs that get results for all your people, from the mailroom to the boardroom...

    Top Services:

    • Staff Augmentation
    • Business Consulting
    • HR Outsourcing
    Location
    Eagan, Minnesota
    Number of Employees
    Under 49
  • Where Ideas Turn Into Scalable Products.

    CoderzHub is a digital agency that offers services ranging from website development, mobile app development, custom software developement and digital marketing...

    Top Services:

    • Mobile App Development
    • Web Development
    • eCommerce Development
    • Software Development
    • WordPress Website Design
    • Show more
    Location
    Plano, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $25/hr
    Minimal Budget
    $1,000 - $10,000
  • Accounting, but Better.

    We’re accountants who advise, solve, and strategize and help you with your accounting, tax, and financial burdens. Our diverse teams work alongside you to provide simple and digestible solutions so you can achieve what’s most important to you...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    Location
    Florham Park, New Jersey
    Number of Employees
    250 - 499

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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 OutsourcingPEO
FunctionThird-party vendor Co-employer 
Legal LiabilityClientShares responsibility with the client
ServicesProvides the service as neededControls the entire HR operations 
Payroll, taxes, and filings Provider handles the service, but the client remains the employerProvider is the co-employer and administers the entire process
Benefits
  • Higher flexibility and customization 
  • Client keeps full control
  • Fewer risks, as PEO shares the liability
  • All-in-one HR function, no need to search for different providers 

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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