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. 

United States × Sort by: Top Rated ×
  • WE MAKE IT WORK FOR YOU!

    WE MAKE IT WORK FOR YOU!

    LMG Technology Services LLC is a Houston, Texas-based supplier of technology and professional services. In addition to recruitment and staffing services, we also make software and offer support for it. We specialize in custom software programming and development to meet the needs of a wide range of public and...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • Software Development
    Location
    Houston, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
  • From Staffing to Clouds, We've Got IT All Covered

    From Staffing to Clouds, We've Got IT All Covered

    Founded in 2000, InSource, Inc. has transformed from a leading IT technology staffing company to a trusted provider of cloud-based technology solutions centered around people, products, and processes. As an Elite ServiceNow Partner and a Managed Services Partner with Identity Management firm OKTA, we are...

    Top Services:

    • Managed Services
    • Call Centers
    • HR Outsourcing
    • IT Services
    • Staff Augmentation
    • Show more
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    250 - 499
    Portfolios Count
    4 Projects Listed
  • We take care of your clients as you do it

    We take care of your clients as you do it

    COSCEMEXIT focus to provide IT services in LATAM region, because we know the hispanic countries and their way of working We can give you better coverage and guarantee of quality of service than any one...

    Top Services:

    • Managed Services
    • IT Services
    • Staff Augmentation
    • Cloud Consulting
    • HR Outsourcing
    • Show more
    Location
    Fort Worth, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $60/hr
    Minimal Budget
    $1,000 - $10,000
  • Done for You Human Resources

    Done for You Human Resources

    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
  • Strategic Staffing. Lasting Connections.

    Strategic Staffing. Lasting Connections.

    Recruiting Solutions was established in 1992 as a local, independent, woman-owned staffing and recruiting company. The key to our success has been building quality, long-term partnerships for both our client companies and field associates...

    Top Services:

    • HR Outsourcing
    Location
    Greenville, South Carolina
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
  • Local Staffing Agency

    Local Staffing Agency

    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
  • World's Leading Provider Of Fractional And Permanent Inside Sales Talent

    World's Leading Provider Of Fractional And Permanent Inside Sales Talent

    Inside Sales Staff is the world's leading provider of fractional and permanent inside sales talent. Our services are available for inside sales representatives (BDRs, SDRs, AEs) to inside sales executives. Inside Sales Staff can help you hire one person or build an entire inside sales organization...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Chicago, Illinois
    Number of Employees
    50 - 99
    Average Hourly Rate
    $100/hr
  • Recruit With Confidence

    Recruit With Confidence

    Peterson Technology Partners is an IT staffing and consulting firm with over 28 years of experience, helping companies hire onshore (U.S.-based), nearshore, and offshore software engineers. We provide pre-vetted talent for roles in Java, SAP, cloud, and data engineering, supporting contract...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Park Ridge, Illinois
    Number of Employees
    100 - 249
    Average Hourly Rate
    $150/hr
    Minimal Budget
    $1,000 - $10,000
  • Tech Giants need talent. VitalSource IT delivers.

    Tech Giants need talent. VitalSource IT delivers.

    Since 2010, VitalSource IT has emerged as the #1 direct placement IT services staffing partner for tech giants such as Amazon.com, eBay, Nest, Twitch, and Zillow Group. We credit our success to strong, lasting partnerships with top companies and talented technical professionals...

    Top Services:

    • HR Outsourcing
    • IT Services
    • Staff Augmentation
    Location
    Kirkland, Washington
    Number of Employees
    Under 49
  • Your Trusted Talent Solutions.

    Your Trusted Talent Solutions.

    ettain group, the industry-leading talent solutions company in Charlotte, NC, delivers recruitment services and managed services in IT, healthcare IT and digital creative. With over 21 years of expertise, we provide end-to-end talent solutions across all phases of the talent life cycle. Count on us for...

    Top Services:

    • HR Outsourcing
    • UI/UX Design
    Location
    Charlotte, North Carolina
    Number of Employees
    100 - 249
  • The HR Solution for Growing Businesses

    The HR Solution for Growing Businesses

    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
  • The Secrets to Landing Your Dream Job Even During a Pandemic

    The Secrets to Landing Your Dream Job Even During a Pandemic

    University Recruiters CEO Jeff Martin spent 15 years watching great business professionals get turned away because they just “didn’t fit” an open position...

    Top Services:

    • HR Outsourcing
    Location
    Fulton, Maryland
    Number of Employees
    Under 49
  • We Know Staffing.

    We Know Staffing.

    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
  • Where Top Talent Meets Your Business Needs

    Where Top Talent Meets Your Business Needs

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

    Top Services:

    • HR Outsourcing
    Location
    Charlotte, North Carolina
    Number of Employees
    100 - 249
    Portfolios Count
    3 Projects Listed
  • The Best Way To Build Your Software.

    The Best Way To Build Your Software.

    Our focus is on providing businesses with the tools they need to reach their maximum potential through the use of our cutting-edge software solutions. Launch your product to market 2x faster with Techjay's strong business domain experience, technical expertise, extensive knowledge of the latest industry...

    Top Services:

    • Software Testing
    • Software Development
    • Mobile App Development
    • Web Development
    • UI/UX Design
    • Show more
    Location
    Menlo Park, California
    Number of Employees
    50 - 99
    Average Hourly Rate
    $28/hr
    Minimal Budget
    $10,000 - $25,000
  • Hiring is hard. And hiring well is even harder. But, that’s exactly what we do.

    Hiring is hard. And hiring well is even harder. But, that’s exactly what we do.

    Having the right talent doesn’t happen by accident. Growing companies know this. That's why they look to us to help them find the talent they need to evolve their brand. For more than 15 years, we have partnered with growing companies in various industries to strategically build their world-class...

    Top Services:

    • HR Outsourcing
    Location
    Chicago, Illinois
    Number of Employees
    50 - 99
  • Smartest Software Solutions, right on time

    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
  • Where Ideas Turn Into Scalable Products.

    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
  • At Contact Design, we specialize in finding and recruiting participants, no matter how specific, unique, and immovable the required attributes. Whether you are seeking a Chief Information Security Officer, an optometrist who is in charge of purchasing, a diabetes patient with migraines, or anyone in between...

    Top Services:

    • Market Research
    • HR Outsourcing
    Location
    Boston, Massachusetts
    Number of Employees
    Under 49
  • Your SAP Problem Solvers

    Your SAP Problem Solvers

    Clarkston Consulting excels in management, operations, and implementation consulting for life sciences, consumer products, and retail. With a dedicated team of experts, we're here to surpass your expectations and drive your success...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    • IT Services
    Location
    Durham, North Carolina
    Number of Employees
    250 - 499
  • Professional & Temp Staffing Agency

    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
  • Leader in HR Services

    Leader in HR Services

    E Talent Network started with a vision to help businesses to recruit the best talent globally, our company provides RPO (Recruitment Process Outsourcing) which has been our core area since our inception. Our aim is to help our clients recruit top talent, with ease. We ensure that our clients not only save...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    McLean, Virginia
    Number of Employees
    50 - 99
    Average Hourly Rate
    $50/hr
  • Illuminating Your Path to Global Talent

    Illuminating Your Path to Global Talent

    LightSource Global is the industry-leading provider of Employer of Record (EOR) services, specializing in connecting highly skilled professionals with multinational corporations. With a one-step setup, we enable international businesses to effortlessly enter the U.S. market without needing an EIN, as we...

    Top Services:

    • HR Outsourcing
    Location
    Orlando, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $150/hr
  • Skilled Trade Staffing To Get You The Skilled Workers You Need When You Need Them

    Skilled Trade Staffing To Get You The Skilled Workers You Need When You Need Them

    Xemplar is a nationwide skilled labor staffing agency, specializing in the placement of tradespeople, managers and specialty personnel for best-in-class industrial employers...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Salt Lake City, Utah
    Number of Employees
    Under 49
  • Top Remote Staffing Agency

    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
  • Facilitating the Good Deeds of Amazing Organizations Since 1998

    Facilitating the Good Deeds of Amazing Organizations Since 1998

    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
  • Dedicated HR Partner

    Dedicated HR Partner

    Our human resources services can be delivered independently or as integrated bundles to give clients the flexibility and expertise they need, when they need it...

    Top Services:

    • HR Outsourcing
    Location
    Phoenix, Arizona
    Number of Employees
    Under 49
  • Hire with Pod

    Hire with Pod

    Work with high-performing talent in Peru who speak fluent English, work in US timezones, and all are vetted on soft and technical skills...

    Top Services:

    • Web Design
    • UI/UX Design
    • HR Outsourcing
    • Mobile App Development
    • Show more
    Location
    Sheridan, Wyoming
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $1,000 - $10,000
  • Headquartered in Huntsville, AL, NMR Consulting is a verified Service-Disabled Veteran-Owned Small Business (SDVOSB)...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Huntsville, Alabama
    Number of Employees
    100 - 249
  • Every Service We Provide. Every Fiber of Our Company Culture.

    Every Service We Provide. Every Fiber of Our Company Culture.

    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
  • One Of New York City's Top Staffing Firms

    One Of New York City's Top Staffing Firms

    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
  • Seamlessly Blending Proprietary Technology With Dedicated Service & Support

    Seamlessly Blending Proprietary Technology With Dedicated Service & Support

    Group Management Services (GMS) is a leading PEO dedicated to simplifying business operations through comprehensive HR and risk management solutions...

    Top Services:

    • HR Outsourcing
    Location
    Richfield, Ohio
    Number of Employees
    500 - 999
  • Leading staffing solutions

    Leading staffing solutions

    Allegis Group stands as a global leader in talent solutions, dedicated to transforming businesses through a comprehensive suite of services. With an unwavering commitment to excellence, we provide a range of workforce solutions including staffing, recruiting, and workforce management...

    Top Services:

    • HR Outsourcing
    Location
    Hanover, Maryland
    Number of Employees
    1000 & Up
    Portfolios Count
    5 Projects Listed
  • Unlock the Talent Vault with Scion Staffing

    Unlock the Talent Vault with Scion Staffing

    Scion Staffing, Inc. is a nationally recognized IT services staffing, creative staffing, and executive search firm with offices across the U.S. Recognized by Forbes and the Business Times, our team specializes in staffing for roles ranging from Executive to Operations. We're dedicated to connecting companies...

    Top Services:

    • HR Outsourcing
    Location
    San Francisco, California
    Number of Employees
    50 - 99
    Portfolios Count
    3 Projects Listed
  • Creating consistent experiences for all customer channels

    Creating consistent experiences for all customer channels

    Telvista is a premier provider of contact solutions that drive customer loyalty and create competitive advantage for our clients. With our highly trained staff of support professionals, we deliver superior service that protects and promotes our clients'​ brands in the traditional channels and we are...

    Top Services:

    • HR Outsourcing
    • Phone Answering Services
    • BPO
    Location
    Dallas, Texas
    Number of Employees
    Under 49
    Portfolios Count
    1 Project Listed
  • An extraordinary advantage.

    An extraordinary advantage.

    Acrisure is powered by the best of human and high-tech. It offers project management, insurance, reinsurance, real estate, cyber, HR, and IT solutions to millions of clients around the world...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Grand Rapids, Michigan
    Number of Employees
    1000 & Up
  • Empower your brand with Nyros

    Empower your brand with Nyros

    Nyros, an India-based software development firm, provides outstanding voice, web and mobile app development services to brands and companies worldwide...

    Top Services:

    • HR Outsourcing
    • Digital Services
    • Digital Strategy
    Location
    Wilmington, Delaware
    Number of Employees
    Under 49
    Average Hourly Rate
    $49/hr
    Minimal Budget
    $25,000 - $50,000
  • Optimizing Candidate Attraction Through Storytelling, Technology & Strategy

    Optimizing Candidate Attraction Through Storytelling, Technology & Strategy

    NAS is an award-winning recruitment marketing firm. Our team of experts partner with clients to help them bring qualified candidates into their talent pool and increase their ROI. NAS achieves that by focusing on 3 main pillars: Storytelling, Technology & Strategy. Being a one-stop shop with great in-house...

    Top Services:

    • Branding
    • HR Outsourcing
    • Social Media Marketing
    • Digital Marketing
    • Digital Strategy
    • Show more
    Location
    Independence, Ohio
    Number of Employees
    Under 49
  • Payroll and HR Made Easy

    Payroll and HR Made Easy

    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
  • Positively Partners is a social enterprise committed to helping schools and nonprofit organizations achieve exceptional performance from their employees. We are psychology practitioners, human resources professionals, trainers and system design experts working together to create highly productive...

    Top Services:

    • HR Outsourcing
    Location
    Boston, Massachusetts
    Number of Employees
    Under 49
  • Leaders on the Engineering & Technology Frontier

    Leaders on the Engineering & Technology Frontier

    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
  • Serving the Texas Medical Community Since 1988

    Serving the Texas Medical Community Since 1988

    By developing lasting relationships and delivering consistent service, we’ve gained the trust of some of the most prestigious medical facilities in Texas. We gain a deep understanding of the operational goals and challenges of our employer partners to provide healthcare and support professionals that suit...

    Top Services:

    • HR Outsourcing
    Location
    Houston, Texas
    Number of Employees
    250 - 499
  • Your Complete HR & Payroll Solution

    Your Complete HR & Payroll Solution

    At Xenium HR, we handle the complexities of HR and payroll management so you can focus on what you do best. We value people as the most important asset of any organization. We believe in nurturing talent with passion, purpose, and entrepreneurial thinking, creating an environment where everyone can achieve...

    Top Services:

    • HR Outsourcing
    Location
    Tualatin, Oregon
    Number of Employees
    50 - 99
    Portfolios Count
    5 Projects Listed
  • Revolutionizing human resources

    Revolutionizing human resources

    National PEO is a leading professional employer organization (PEO) committed to revolutionizing human resources and empowering businesses to succeed. With an unwavering commitment to excellence, we offer a comprehensive suite of services tailored to diverse industries...

    Top Services:

    • HR Outsourcing
    Location
    Scottsdale, Arizona
    Number of Employees
    Under 49
  • True Partners Consulting

    True Partners Consulting

    Baker Tilly USA is a privately-owned, trusted project management, tax consulting, and business advisory firm that helps public and large private enterprises navigate complex tax and financial regulations everywhere in the world...

    Top Services:

    • BPO
    • Accounting
    • HR Outsourcing
    • Business Consulting
    • IT Services
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    100 - 249
  • Where Process Meets Partnership

    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
  • The Davis Companies: Connecting You with True Talent.

    The Davis Companies: Connecting You with True Talent.

    We offer professional staffing, contract staffing, and outsourced talent solutions. Specializing in advanced manufacturing, engineering, technology, and accounting & finance, we build connections and deliver value. Our consultative approach ensures tailored staffing solutions, streamlining the hiring process...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Marlborough, Massachusetts
    Number of Employees
    100 - 249
  • Transform Your HR With Corban OneSource

    Transform Your HR With Corban OneSource

    Take the Stress Out of HR Outsourcing (HRO) Solutions. Boost efficiency, control costs, and keep employees engaged with Human Resource Outsourcing Solutions customized to meet your requirements. We take care of Payroll, Benefits Admin and General HR Admin so you can focus on tactics and strategy...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    St. Petersburg, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $100/hr
    Portfolios Count
    2 Projects Listed
  • PEO & HR Solutions

    PEO & HR Solutions

    DecisionHR is a Professional Employer Organization (PEO) located in St Petersburg, FL. Since our inception in 1998 we have empowered our clients with industry- leading human resource solutions they need to drive their business. We assist our clients in the areas of payroll, worker’s compensation, human...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    St. Petersburg, Florida
    Number of Employees
    Under 49
  • Stratus.hr HR Made Simple, Business Made Better.

    Stratus.hr HR Made Simple, Business Made Better.

    Stratus.hr® offers an alternative to a full-time HR department at a lower cost. Founded in December of 1999, Stratus.hr quickly emerged as the premiere PEO for human resources outsourcing in the Intermountain West...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    Sandy, Utah
    Number of Employees
    Under 49

Frequently Asked Questions About HR Outsourcing Services

What services do most of these companies typically offer?

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

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

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

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

How much does HR outsourcing cost?

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

Here’s a pricing breakdown per service type: 

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

What is the difference between HR outsourcing and a PEO?

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

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

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

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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

Receive Free Proposals

For your project

1

Specify your budget, timeline and project requirements

2

Our experts curate a list of up to 5 most qualified candidate agencies

3

We connect you with them so you can choose the most suitable partner