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.
Accounting & Business Consulting
Walter & Shuffain is a results-driven firm which serves as the trusted advisors to privately-held businesses and their owners. We provide consulting, tax and estate planning, and accounting services to a variety of business sectors including: real estate, professional services, healthcare, technology...
Top Services:
- HR Outsourcing
- Business Consulting
- Accounting
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
AAFCPAs is the premier CPA and consulting firm based in New England and considered an attractive alternative to national CPA firms by discerning clients who appreciate exceptional value. We provide audit, tax, accounting, and advisory solutions to nonprofit organizations, commercial companies, and wealthy...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Location
- Boston, Massachusetts
- Number of Employees
- 250 - 499
Full Service Accounting & Business Consulting Firm
BPM is a full-service accounting and consulting firm deeply experienced in assurance, tax and business advisory. With over 40 committed partners leading these groups, we deliver the resources, expertise and business insight that produce outstanding results for clients...
Top Services:
- Business Consulting
- HR Outsourcing
- Accounting
- Location
- San Francisco, California
- Number of Employees
- 500 - 999
Staffing Solutions & Executive Search
Founded in 1990, Solomon Page is a specialty niche provider of EOT, staffing and executive search solutions across a wide array of functions and industries. The success of Solomon Page reflects an organic growth strategy supported by a highly entrepreneurial culture. Acting as a strategic partner to our...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 1000 & Up
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
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
Elevate Your HR Game With JER HR Group.
JER HR Group offers customized HR support and consulting services to organizations of all sizes, including Fortune 500 Companies. Our experienced team of professionals assists with interim HR management, compliance issues, HR department setup, recruitment, compensation systems, safety inspections, training...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
HR & Accounting Excellence
Gainor is a leading, women-owned staffing agency in New York that has been a driving force in the industry since 1982. Our staffing firm immerses itself in fast-growing businesses and candidates’ careers to fully understand their priorities and direction. Our reputation is built on consistently...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
Where Talent Meets Opportunity
TemPositions is a premier staffing and workforce solutions company, dedicated to connecting businesses with top-tier talent since its inception...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
- Portfolios Count
- 1 Project Listed
World Class Onsite Outsourcing and Staffing Solution
Forrest Solutions is the nation’s first and leading onsite outsourcing and staffing company. For 45 years we’ve provided companies of all sizes with people solutions on an onsite outsourced, direct hire, temporary, temp-to-hire and consulting basis...
Top Services:
- BPO
- Location
- New York City, New York
- Number of Employees
- Under 49
An Executive Search Firm
The Oxbridge Group, an executive search firm, is dedicated to identifying and recruiting the top investment professionals for investment funds and corporations. Our investment fund client base includes private and public funds of all market capitalizations across all industry verticals. Specific strategies...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
Inspire Employee & Company Pride
Here at WorkProud, we have a history of designing succesful employee reward programs that have helped numerous organizations start a culture of recognition and appreciation. We are confident we can do the same for your organization. Selecting the right partner for program design can make an enormous...
Top Services:
- HR Outsourcing
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
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
We're changing the world, one job at a time! Peak Performers is a nonprofit staffing and recruiting agency based out of Austin, Texas. We help people get jobs and help employers find great people...
Top Services:
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- Under 49
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
Sustainable HR Solutions
CEI Staffing was formed to successfully fulfill healthcare, administrative, and professional support services for Federal, State, and Local government agencies and commercial entities...
Top Services:
- HR Outsourcing
- Location
- Fort Lauderdale, Florida
- 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
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
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
We Turn HR into Your Unfair Competitive Advantage.
Poprouser was created with the sole purpose of cultivating an innovative, engaged, effective society of people, with the intent to future-proof the workforce and deliver value in areas otherwise unexplored. HR & People Ops is our means to execute that vision...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
Expect More
We are Engage PEO – the Professional Employer Organization that wants you to Expect More. In 2011, Engage’s founder, Jay Starkman, set out to build a new kind of PEO. A PEO where the client experience and quality of service are the driving focus of everything. A PEO with an innovative business model. A...
Top Services:
- HR Outsourcing
- Location
- Hollywood, Florida
- Number of Employees
- 250 - 499
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 Power of Simplicity
Oasis, A Paychex Company, is a leading Professional Employer Organization (PEO). We provide Human Resources Administration, Employee Benefits, Healthcare Reform Support, Payroll Administration, Workers’ Compensation services and much more. Our human resources-related products and services allow small- and...
Top Services:
- HR Outsourcing
- Location
- West Palm Beach, Florida
- Number of Employees
- 500 - 999
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:
- HR Outsourcing
- Location
- St. Petersburg, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Portfolios Count
- 2 Projects Listed
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
- Location
- St. Petersburg, Florida
- Number of Employees
- Under 49
HR Excellence
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
Get the Right People To Power Your Business.
We are one of Central Florida's largest and most successful staffing solutions provider supporting hundreds of employers and thousands of people finding rewarding careers. Whether you are a HR professional looking to receive the best results from your staffing investment, a business looking for great talent...
Top Services:
- HR Outsourcing
- Location
- Lakeland, Florida
- Number of Employees
- Under 49
Get the HR knowledge you need to succeed.
The Hilb Difference. Hilb offers more. Payroll is essential to every company and employee, but can be costly. Hilb Groups combination of knowledge, expertise, and advanced technology provides a better way. As leaders in our field, we have earned a distinguished reputation of providing accurate payroll...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Mansfield, Massachusetts
- Number of Employees
- 100 - 249
HR2fit’s extraordinary customer services model is an alternative approach to Human Resources. Our technique is to bring a rapid response to your HR needs. We provide human resources services that are designed for small to mid-size business at Fortune 500 quality. Our overlaid service model is designed to...
Top Services:
- HR Outsourcing
- Location
- Walpole, Massachusetts
- Number of Employees
- Under 49
Hub partners with growing companies by improving their Recruiting, People Operations, and HR, within a controllable budget while giving complete, 24x7 transparency into the process and results.Hub’s combined solution is called Full Stack RPO and Agile People Operations (APO). It has three components:...
Top Services:
- HR Outsourcing
- Location
- Bedford, Massachusetts
- Number of Employees
- 100 - 249
Elevate Your Talent with Expert Employer of Record Solutions.
Since 2002, TalentBurst has been a respected name in staff augmentation, payroll, and employer of record services. We are a leader in High Hazard & Global Payroll and IC validation and Compliance solutions. We have consistently been recognized as one of the fastest-growing and largest private companies in...
Top Services:
- HR Outsourcing
- Location
- Natick, Massachusetts
- Number of Employees
- 1000 & Up
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
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
Integrated Human Resources, Inc. a Beverly based Human Resources Consulting Firm. Integrated deploys outsourcing strategies in the areas of human resources, worker’s compensation, employee benefits, benefits administration, and payroll to small businesses throughout the United States...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Beverly, Massachusetts
- Number of Employees
- Under 49
Simply put, at Navigate, we approach every aspect of our business with the success of yours in mind. When we started Navigate, we wanted to be more than just another service provider for businesses in the New England area. We strive to serve as a trusted and valuable business partner for each of our clients...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Burlington, Massachusetts
- Number of Employees
- Under 49
Operations Consulting & Human Capital Management for Your Organization
Clarke Executive Services Group is an operations consulting and team solutions firm that works with business owners to improve the infrastructure, organization, procedures, talent, and performance of their companies. Clarke is the long-term solution for your long-term success...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Los Angeles, California
- Number of Employees
- Under 49
Building Relationships, Driving Success.
HR Options is guided by unwavering principles, building lasting relationships for over 35 years. Founded in 1984, our entrepreneurial spirit and commitment to excellence drive our success. Our core values of loyalty, humility, kindness, and more shape our company culture. We cherish the extraordinary client...
Top Services:
- HR Outsourcing
- Location
- Concord, California
- Number of Employees
- 1000 & Up
Outsource Your Accounting and HR Departments.
We designed our advanced business and accounting services to better help your business establish a solid foundation for growth. You can customize your service package further by adding payroll, accounting, human resources, tax preparation or any of our other help you might require in addition to business...
Top Services:
- BPO
- Accounting
- HR Outsourcing
- Location
- San Diego, California
- Number of Employees
- Under 49
Nationwide Human Resources Consulting and On-Demand Human Resources Outsourcing
CA HR Services employs seasoned HR professionals with years of hands-on experience in a variety of industries. Collectively, our team possesses over 200 years of HR and Recruiting experience!Responsiveness - We serve as your "On-Call/On-Demand HR Department," always on standby, ready to respond to all your...
Top Services:
- HR Outsourcing
- Location
- San Marcos, California
- Number of Employees
- Under 49
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
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
Tailored Legal Recruiting Services for Law Firms and Legal Professionals
Our direct hire recruiting and temporary staffing covers a broad spectrum of positions – from administrative support to senior management in the corporate services sectors...
Top Services:
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- Under 49
Finding Good People, For Great Companies
Keeping innovation as agile as possible in a fast-paced digital world has become a matter of survival for lots of businesses. The ability to compete across industries relies heavily on the talent that a company hires. The Canon Recruiting Group, established in 1980, is a WBENC certified professional...
Top Services:
- HR Outsourcing
- Location
- Santa Clarita, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
Globar HR Consulting Firm
Riviera Advisors is a premier global human resources consulting firm that specializes in helping organizations develop stronger internal recruiting and staffing capabilities. Working with organizations across virtually every industry, from start ups to Fortune 500s, Riviera Advisors blends an unparalleled...
Top Services:
- HR Outsourcing
- Location
- Long Beach, California
- Number of Employees
- Under 49
#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
Let Us Handle the Back Office Burden
Quality Back Office (QBO) relieves business owners from the burdensome tasks of payroll, bill pay, invoicing, bookkeeping, accounting and more. With a dedicated team of real people and over 10 years of experience, we have successfully taken over 500+ back offices. Let us be your go-to back office provider...
Top Services:
- HR Outsourcing
- Business Consulting
- Accounting
- BPO
- Show more
- Location
- Naperville, Illinois
- 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
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
HR Outsourcing Companies by City
HR Outsourcing Companies by State
HR Outsourcing Specializations in the US
Popular Services
Hiring Guide: How to Choose the Best HR Outsourcing Services in the US
How do I choose the right company for my business?
To choose the right outsourcing company for your business, consider these steps:
- Define your needs
Map out the exact HR functions you want to delegate, your specific requirements and business policies, budget, and engagement timeframe. - Shortlist experts
Look for HR outsourcing providers with sector-specific knowledge, ask for client references in your industry, and review case studies showing measurable results. - Evaluate provider credentials
Assess client and employee reviews, list of awards and recognitions, and necessary certifications to confirm the company’s reliability and credibility. - Send a request for proposal (RFP)
Provide your top candidates with a detailed project brief together with your budget and time constraints, so they can work within your requirements. - Schedule an interview
Meet the team working with you, and ask about compliance, security, and scalability. Prioritize those who can expand with you without requiring a complete platform change. - Choose your provider
Take time to compare at least three providers, examining their technology platforms, service level agreements, and pricing models before committing.
Need help finding an HR outsource provider for your business? Visit our Marketplace and tell us what you need. We'll curate a list of the top companies for free!
What should I prepare before contacting an HR outsourcing provider?
Start with your current employee headcount and projected growth over the next 12-24 months.
Document all locations where you have employees, because each state or country adds compliance complexity that affects pricing.
Gather your existing payroll structure, including pay frequencies, overtime policies, and any special compensation arrangements like commissions or bonuses.
List your current benefits offerings and note whether you want the provider to source new plans or administer existing ones.
Compile your compliance requirements. Are you subject to industry-specific regulations? Do you have government contracts requiring certain HR practices? Have you faced any compliance issues or audits recently? Understanding your risk profile helps providers recommend appropriate service levels.
Finally, establish your budget expectations and decision timeline. Providers appreciate knowing whether you're exploring options or ready to move quickly.
According to a 2025 Paychex study, 64% of companies spend 570 hours annually on HR administration, so quantify your own time investment to understand your potential ROI from outsourcing.
When does HR outsourcing make more sense than building an in-house HR team?
While both HR outsourcing and building an in-house team bring their own advantages, the decision will depend on your specific business needs.
According to Deloitte's Global Outsourcing Survey, these are the top reasons why businesses are outsourcing functions, including HR:
- Improved access to talent: 42%
- Spend optimization: 34%
- Improved quality/performance: 33%
- Adoption of global delivery model: 33%
- Better alignment to business strategy and operating model shifts: 27%
- Need for flexible and scalable talent model: 23%
In other words, HR outsourcing makes more sense when:
- HR operations are detracting you from core business functions
- Building a full-time, in-house HR team is too expensive
- You’re experiencing high employee dissatisfaction and churn rates
- You need specialized expertise
- You need help navigating labor laws and sector-specific regulations, especially for multi-state and international operations
How involved does management need to be when using these types of services?
Outsourcing HR doesn't mean eliminating internal people management, but it means redirecting your focus from administration to strategy.
Your leadership team remains responsible for organizational culture, performance expectations, hiring decisions, and employee development priorities.
The HR outsourcing provider handles execution, compliance, and day-to-day administration.
Expect regular check-ins with your provider. Most start with weekly or biweekly touchpoints during the first few months, transitioning to monthly reviews once processes stabilize.
You'll approve payroll runs, review compliance reports, and make final decisions on employee relations matters.
The provider brings expertise and recommendations; you make the calls, ensuring that everything aligns with your company's values and goals.
How do I measure whether HR outsourcing is delivering value?
To measure if the HR outsourcing company is delivering value to your business, start by defining your expectations and service level agreement (SLAs).
This includes your measurable business objectives, performance metrics, and current benchmarks.
Here are some of the most common HR outsourcing benchmarks to consider:
- Time to complete: Average time it takes for the provider to complete a task, such as filling in a position or processing payroll
- Employee satisfaction: Assesses how employees feel about HR services and can be tracked via turnover rates, exit interview feedback, and employee surveys
- Payroll accuracy rate: Monitors the percentage of error-free payroll transactions filed by the provider and determines their reliability
- Administrative time savings: Calculates the time previously spent on HR functions that are now being outsourced
- Cost savings: Measures the amount of money saved by outsourcing HR functions
Small companies with 25 employees and a monthly HRO cost of $120-$200 can expect an average return on investment (ROI) of 150%.
Mid-sized businesses with around 100 employees and a monthly HRO of $430-$500, on the other hand, can experience an ROI of 175%.
For large enterprises with over 500 employees and an HRO of $2,000-$3,000 per month, the average ROI is 191%.
Sources
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- Our dedicated team of agency experts actively searches the web for top-performing companies. We then pull information from their websites, online presence, and client testimonials to verify their status and qualifications prior to listing.
- The agencies listed get notified of their profiles on the website and they can choose to claim it or not, which suggests their availability for more collaborations.
Agencies can also reach out to DesignRush and must go through the verification process prior to being listed.
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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
