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. 

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  • Phenomenal Results by Phenomenal People

    Phenomenal Results by Phenomenal People

    Phenom, LLC is an SBA certified Minority Woman-Owned Small Business providing staffing and comprehensive management consulting services...

    Top Services:

    • HR Outsourcing
    • Accounting
    • Staff Augmentation
    Location
    Baltimore, Maryland
    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
  • Modern HR & Payroll Solutions

    Modern HR & Payroll Solutions

    InventivHR is the people operations solution for business owners, executives, and HR professionals. We offer small to mid size businesses, startups, and non-profits flat fee and affordable hourly rates for HR consulting projects. Through our vast nationwide network, validated assessments, and screening tools...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    Under 49
  • 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
  • We Transform Big Questions Into Clear Actions.

    We Transform Big Questions Into Clear Actions.

    A top tax, accounting and consulting firm for 69 years (and counting!), we’re driven by the outcomes that we know can change the lives of those we work with and for...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Cincinnati, Ohio
    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
  • 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
  • Transforming Complexity into Strategy

    Transforming Complexity into Strategy

    IT Convergence is a global Oracle Platinum Partner specializing in IT Training that empowers businesses to navigate technical complexity and business criticality. Serving over 1,100 clients, including one-third of the Fortune 500, our unparalleled expertise and commitment to excellence ensure consistent...

    Top Services:

    • HR Outsourcing
    Location
    Alpharetta, Georgia
    Number of Employees
    500 - 999
  • Ethics, professionalism, accessibility!

    Ethics, professionalism, accessibility!

    Welcome to Elite! Need talented candidates for your organization, and don't have the time or resources to find, recruit, and screen them in-house? Partner with Elite!...

    Top Services:

    • IT Services
    • Staff Augmentation
    • HR Outsourcing
    Location
    Costa Mesa, California
    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
  • Collaborating for Lasting Impact in Business Consulting

    Collaborating for Lasting Impact in Business Consulting

    Join us at Deloitte, where we believe that our collective influence is the cornerstone of our value. With a rich legacy spanning over 175 years and a global network encompassing 150 countries, we empower remarkable achievements, solve complex problems, and drive meaningful progress for clients, professionals...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    • Big Data Analytics
    • CRM Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    1000 & Up
    Portfolios Count
    6 Projects Listed
  • 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
  • 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
  • Transforming Talents. Forging Futures.

    Transforming Talents. Forging Futures.

    GP Strategies is a global leader in talent transformation services, offering award-winning learning and IT training solutions that drive significant business change. Trusted by over 6,000 enterprises worldwide, we provide a comprehensive suite of services, including vision and strategy alignment, contemporary...

    Top Services:

    • HR Outsourcing
    • AI Development
    • Digital Marketing
    • Digital Strategy
    • Show more
    Location
    Columbia, Maryland
    Number of Employees
    1000 & Up
  • Staffing that is focused on client

    Staffing that is focused on client

    Search Staffing Solutions is a dynamic and client-focused staffing agency that specializes in delivering top-tier workforce solutions. With a commitment to excellence, we offer a comprehensive array of staffing services tailored to meet the unique needs of businesses across various industries...

    Top Services:

    • HR Outsourcing
    Location
    Hopkinton, Massachusetts
    Number of Employees
    Under 49
  • When you succeed, we succeed!

    When you succeed, we succeed!

    IT Advisors Online (ITAdOn) is a growing team of technology experts who are passionate about helping companies like yours boost their effectiveness. Join ITAdOn today and grow your business. When you succeed, we succeed!...

    Top Services:

    • IT Services
    • Managed Services
    • HR Outsourcing
    • UI/UX Design
    • IT Compliance Solution
    • Show more
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    Under 49
    Average Hourly Rate
    $10/hr
    Minimal Budget
    Under $1,000
    Portfolios Count
    1 Project Listed
  • We match software developers to projects with 99% accuracy.

    We match software developers to projects with 99% accuracy.

    Unitedcode - trusted partner for remote software engineers with proven expertise from Europe and Latin America...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    50 - 99
    Average Hourly Rate
    $60/hr
  • 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
  • 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
  • Tailored Legal Recruiting Services for Law Firms and Legal Professionals

    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
  • Become an IT Expert with INE's Proven Training Approach

    Become an IT Expert with INE's Proven Training Approach

    INE is a premier provider of technical IT training, offering a comprehensive range of courses in advanced networking technologies, next-generation security, and infrastructure programming. With a focus on adaptive technologies and hands-on experiences, INE has empowered tens of thousands of IT professionals...

    Top Services:

    • HR Outsourcing
    Location
    Cary, North Carolina
    Number of Employees
    500 - 999
  • 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
  • On Demand Recruitment Services

    On Demand Recruitment Services

    Experts in Staffing...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Manhattan Beach, California
    Number of Employees
    Under 49
  • 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
  • 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
  • Managing All Aspects of HR & Payroll

    Managing All Aspects of HR & Payroll

    You rely on your employees to move your business forward, they rely on you to deliver an experience equivalent to the experience they deliver to your customers - honest, accurate and timely. So how do you ensure you deliver on your obligations to your employees? Do it with the help from the EBC HR & Payroll...

    Top Services:

    • HR Outsourcing
    • Accounting
    • Business Consulting
    Location
    Buffalo, New York
    Number of Employees
    100 - 249
  • Let Us Assemble Your Dream Team

    Let Us Assemble Your Dream Team

    Artisan Creative, a WBENC-Certified Women's Business Enterprise creative staffing firm, boasts over 20 years of expertise in recruiting top talent for marketing and digital roles. We understand the significance of the right fit and offer tailored solutions, including Temporary Staffing, Full-time Recruitment...

    Top Services:

    • HR Outsourcing
    Location
    San Francisco, California
    Number of Employees
    Under 49
  • Expertise providing technology solutions

    Expertise providing technology solutions

    The TechnoSIP team has more than ten years of experience in providing technology solutions for a wide range of clients, from startups to SMBs...

    Top Services:

    • HR Outsourcing
    • Web Development
    • Mobile App Development
    Location
    New York City, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $149/hr
  • Winning Human Connections in the Digital World

    Winning Human Connections in the Digital World

    Our team of digital marketing specialists believes in the power of social media to turn mid-market brands into market leaders. With expertise spanning analytics and ad campaigns, we can create unbeatable strategies that promote brand loyalty and engagement. From envelope pushers to big thinkers, we make it...

    Top Services:

    • Email Marketing
    • Social Media Marketing
    • PPC
    • Digital Marketing
    • Web Design
    • Show more
    Location
    Sioux City, Iowa
    Number of Employees
    Under 49
    Average Hourly Rate
    $149/hr
    Minimal Budget
    $1,000 - $10,000
  • To help as many people as possible find good jobs by helping as many clients as possible find good p

    To help as many people as possible find good jobs by helping as many clients as possible find good p

    Express Employment Professionals of Nassau County North, New York is a premier staffing agency that assists those looking for work to obtain employment with a broad range of local companies. Since we are locally owned, we not only work in this town, but we also live here, so we have a vested interest in...

    Top Services:

    • HR Outsourcing
    Location
    Jericho, New York
    Number of Employees
    50 - 99
    Average Hourly Rate
    $20/hr
  • 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
  • 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
  • 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
  • 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
  • Your Business Is Our Purpose. Better Books Better Business.

    Your Business Is Our Purpose. Better Books Better Business.

    We are the heart-centered online Bookkeepers of New York who actually care about your success...

    Top Services:

    • BPO
    • Accounting
    • HR Outsourcing
    • Business Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $70/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
  • IT, Business, BPO, Audit, Tax and Advisory are just the beginning.

    IT, Business, BPO, Audit, Tax and Advisory are just the beginning.

    Grant Thornton LLP (US) is an IT, project management, audit, tax, AgTech, and BPO company headquartered in Chicago, Illinois with over 50 U.S. offices and access to a global network or member firms in over 135 countries. We offer a broad range of services in strategy and consulting, operations, technology and...

    Top Services:

    • Accounting
    • Business Consulting
    • Market Research
    • HR Outsourcing
    • Software Development
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    1000 & Up
    Average Hourly Rate
    $35/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    2 Projects Listed
  • Your Bridge to Tech Rockstars

    Your Bridge to Tech Rockstars

    As a leader in staff augmentation, recruiting, and onboarding, Techunting is a strategic tech partner for world-class companies. Looking to scale your engineering team quickly and without compromising quality?Access to pre-vetted, high-performing talent ready to integrate into your team in 7 days...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Davie, Florida
    Number of Employees
    100 - 249
    Average Hourly Rate
    $70/hr
    Minimal Budget
    $25,000 - $50,000
  • Expert HR Solutions, Seamless Compliance

    Expert HR Solutions, Seamless Compliance

    PRISM HR Consulting, LLC is an international consulting firm specializing in human resources. Founded in 2003 by Mary Beth Hartleb; PRISM supports organizations with or without existing human resources staff...

    Top Services:

    • HR Outsourcing
    Location
    Henderson, Nevada
    Number of Employees
    Under 49
  • Hire Simply, Scale Quickly

    Hire Simply, Scale Quickly

    20four7VA is a leading virtual recruiting and staff placement company specializing in fully managed remote staffing solutions. We provide end-to-end virtual assistant (VA) services to small-to-medium-sized businesses and freelance business owners worldwide. Our cost-effective, customizable, and scalable...

    Top Services:

    • HR Outsourcing
    • BPO
    • Call Centers
    • Staff Augmentation
    • Show more
    Location
    Berlin, Maryland
    Number of Employees
    250 - 499
    Average Hourly Rate
    $7/hr
    Minimal Budget
    Under $1,000
  • 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
  • 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
  • Largest Global Asian-American Executive Search & HR Consulting Firm in the World

    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
  • Smart way to grow your team remotely!

    Smart way to grow your team remotely!

    On a mission to ensure the most satisfying outsourcing experience ever for our valuable clients by providing qualified remote professionals...

    Top Services:

    • HR Outsourcing
    • Call Centers
    Location
    New York City, New York
    Number of Employees
    100 - 249
    Average Hourly Rate
    $14/hr
    Minimal Budget
    $1,000 - $10,000
  • Unrivaled Expertise in HR Consulting and Outsourcing

    Unrivaled Expertise in HR Consulting and Outsourcing

    Integrity HR, an esteemed Inc.5000 company, is your strategic partner for comprehensive HR consulting and outsourcing services. We are experts in managing employee relations, assessing staffing needs, optimizing recruitment and retention strategies, and formulating impactful HR policies...

    Top Services:

    • HR Outsourcing
    Location
    Louisville, Kentucky
    Number of Employees
    Under 49
    Portfolios Count
    3 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
  • 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

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% 

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