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.
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
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
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
Empowering Workplaces, Elevating Success
Solutions At Work empowers your business with smarter, more comprehensive HR solutions: HR compliance and consulting, recruitment, HRIS, and more...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Reno, Nevada
- Number of Employees
- Under 49
HR Simplified
At HR Wise, our goal is to provide medium to small business payroll services and HR services to help you focus on growing your company instead of time-consuming paperwork. Our services are tailored to meet the needs of small and medium sized businesses...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Scottsdale, Arizona
- Number of Employees
- Under 49
SW HR Consulting provides a customized, cost-effective, solution that will simplify and streamline an organization Human Resource needs...
Top Services:
- HR Outsourcing
- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
Your Outsourced HR Partner
What makes AmeriSource HR unique is our customization. We base our involvement on what works for our clients’ HR business needs...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
Empowering Businesses, Connecting Talent
The Applied Companies (TAC) focuses on all things employment. We are your employment and HR experts through staffing, HR and benefits, and executive search...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Reno, Nevada
- Number of Employees
- Under 49
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
"You have something to say; we get you noticed."
MISSION STATEMENTAt Orly Telisman PR, Inc., Our Guiding Principles are to: Amaze clients with exceptional outreach communications.Communicate with respect and appreciation. Do Exceptional Work at all times.Continue Educating Ourselves to work smarter every day...
Top Services:
- Content Marketing
- Digital Marketing
- Social Media Marketing
- HR Outsourcing
- Business Consulting
- Show more
- Location
- Chicago, Illinois
- Number of Employees
- Under 49
- Average Hourly Rate
- $175/hr
- Minimal Budget
- $1,000 - $10,000
Human Capital Management Talent Management Solutions Data Driven Insights
Prestige Development Group (PDG) specializes in human capital management, talent optimization, and contingent workforce solutions. With services spanning recruitment, performance management, contingent staffing, and employee engagement, PDG helps organizationsincluding private, state, and federal...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Sacramento, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $88/hr
- Minimal Budget
- $1,000 - $10,000
The Leading Niche provides comprehensive professional services
The Leading Niche provides comprehensive professional services to federal, civilian, defense, and commercial clients in domestic and international markets. Our personnel deliver large business capabilities using a small business/high-touch approach. We provide an uncompromising commitment to “Customer...
Top Services:
- Software Development
- Digital Services
- Creative Services
- AI Development
- Big Data Analytics
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $250/hr
Build Your Team, Your WayEMAPTA is a premium staffing company with talent that aligns with your brand, values, and identity...
Top Services:
- BPO
- HR Outsourcing
- Location
- Wilmington, Delaware
- Number of Employees
- 1000 & Up
Business Solutions Tailored to You
Lutz is a business solutions firm for people seeking a partner to help energize and heighten financial and organizational success. Born and raised in Nebraska, our experienced team simplifies complexities and provides accounting, wealth management, recruiting, M&A and technology services. We embrace your...
Top Services:
- Software Development
- HR Outsourcing
- Accounting
- Business Consulting
- IT Services
- Show more
- Location
- Omaha, Nebraska
- Number of Employees
- 250 - 499
IDEAS | PEOPLE | TRUST
BDO is a trusted adviser to clients seeking project management, audit, tax, and business consulting services. As one of the worlds leading audit and accounting organisations, we have clients of all types and sizes from large corporate organisations to private businesses, entrepreneurs and individuals across...
Top Services:
- Business Consulting
- Accounting
- BPO
- HR Outsourcing
- Market Research
- Show more
- Location
- Honolulu, Hawaii
- Number of Employees
- Under 49
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
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're proudly standing up for whats right. We Won't Rest Until more barriers to workforce entry and advancement are undone...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Troy, Michigan
- Number of Employees
- 1000 & Up
Delighting partners, powering success in IT.
Established in 2001 with the ambition of becoming a premier IT company, AMBC has earned the trust and partnership of customers, employees, and communities. Our reputation as one of the USA's best IT solution providers, especially in IT services staffing, is built on a foundation of competitive pricing and...
Top Services:
- IT Services
- Staff Augmentation
- HR Outsourcing
- Location
- Naperville, Illinois
- Number of Employees
- 100 - 249
Empowering Enterprises.
We are one of the fastest-growing IT training and Information Technology Consulting and technology solutions providers in the US with an extensive footprint in North America and globally...
Top Services:
- HR Outsourcing
- Staff Augmentation
- IT Services
- Location
- San Francisco, California
- Number of Employees
- Under 49
Championing human potential is our guiding mission, and we take it very seriously...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Troy, Michigan
- Number of Employees
- 100 - 249
Tech Staffing Agency
We live in an on-demand world where our shopping, groceries and dinner can all arrive where and when we want them. Imagine if talent can be delivered to meet your needs that easily and reliably. Focus GTS connects you with AI and Martech talent in 48 hours or less!...
Top Services:
- HR Outsourcing
- Staff Augmentation
- IT Services
- Location
- North Miami Beach, Florida
- Number of Employees
- Under 49
- Minimal Budget
- Under $1,000
Now, for tomorrow.
Offering AgTech, Business, and IT Services. Baker Tilly Canada Cooperative is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Baker Tilly Canada refers to the association of member firms of Baker Tilly Canada Cooperative...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Market Research
- Cybersecurity
- Show more
- Location
- Honolulu, Hawaii
- Number of Employees
- 1000 & Up
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
Top Provider of Outsourcing and Customer Support
Dalerio Consulting is an international Customer Support, Marketing and Business Process Outsourcing company with rapid growth and steady foundation...
Top Services:
- Customer Support
- HR Outsourcing
- BPO
- Call Centers
- Phone Answering Services
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 9 Projects Listed
Aim to build economic prosperity for all individuals and communities through meaningful employment.
We brand businesses and executives so you can attract top talent and hire on demand...
Top Services:
- HR Outsourcing
- Location
- McLean, Virginia
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
Payroll, HR, and ComplianceMade Simple.
Paper Trails provides payroll and HR services to businesses throughout New England...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Kennebunk, Maine
- Number of Employees
- Under 49
On Demand Recruitment Services
Experts in Staffing...
Top Services:
- IT Services
- HR Outsourcing
- Location
- Manhattan Beach, California
- Number of Employees
- Under 49
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
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
Boutique Staffing & Recruiting Solutions
Founded in 1991, Delta Corporate Services is a boutique staffing and recruiting company that has a provenstrength over the past 30 years of providing highly experienced staff specific to client project needs in various industries...
Top Services:
- HR Outsourcing
- Location
- Parsippany-Troy Hills, New Jersey
- Number of Employees
- Under 49
Advanced IT Solutions Provider
Multivision Inc. is one of the fastest growing information technology (IT) solutions provider and a recognized authority in innovative workforce development training...
Top Services:
- Mobile App Development
- Business Consulting
- HR Outsourcing
- Location
- Fairfax, Virginia
- Number of Employees
- 250 - 499
Navigating Your IT Success in the Digital Landscape
New Horizons is a globally recognized IT training and services provider with over 35 years of experience. Our partnership with industry leaders ensures that our courses and certifications span critical areas like Cybersecurity and Cloud Computing...
Top Services:
- HR Outsourcing
- Cybersecurity
- Location
- Tampa, Florida
- Number of Employees
- 1000 & Up
Innovative consulting firm that delivers the highest quality customer experience.
Cendien focus on long-term commitment and premier professional services from consulting, system development, business process automation and outsourcing to cloud-based solutions...
Top Services:
- IT Services
- ERP Consulting
- Mobile App Development
- HR Outsourcing
- Show more
- Location
- Carrollton, Texas
- Number of Employees
- 100 - 249
360° Service 365 Days a Year
Apolis is a digital consultancy that integrates experts and leading solutions into your organization...
Top Services:
- IT Services
- Cloud Consulting
- HR Outsourcing
- Location
- El Segundo, California
- Number of Employees
- 500 - 999
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
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
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
Our Philosophy Is Based on a Conceptual Approach Inspired by Vision and Design
Innovative Solutions Unlimited, LLC (inSolves) is an agile team of project leaders, scientists, engineers, technicians, and fabricators with headquarters in southern Ohio...
Top Services:
- HR Outsourcing
- Location
- Piketon, Ohio
- Number of Employees
- 100 - 249
Your Ultimate Source for Talent Solutions
Global Integrated Talent Solutions Provider - A Certified MBE Enterprise...
Top Services:
- IT Services
- Staff Augmentation
- Managed Services
- HR Outsourcing
- Show more
- Location
- San Jose, California
- Number of Employees
- 250 - 499
Technology expertise, Innovative solutions and long lasting partnership with customers
Established in the year 2006, eLan Technologies has grown to be the preferred IT partner for the big players in the industry across various industry verticals. eLan has partnered with some of the esteemed clients, helping them meet the new challenges of IT innovations...
Top Services:
- IT Services
- HR Outsourcing
- Business Consulting
- Location
- Irving, Texas
- Number of Employees
- 100 - 249
Portiva: Leading The Way In Medical Excellence
Portiva's Virtual Medical Assistant is the No. 1 Provider in the World Today...
Top Services:
- Phone Answering Services
- BPO
- Call Centers
- HR Outsourcing
- Show more
- Location
- Trappe, Pennsylvania
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
Our Model Is Much Different And Way Better Than the Usual Offshoring Nonsense.
Our Yourshore model is intentionally designed to give you the very best remote engineering solution that solves for all the usual pain points that plague traditional offshore vendors...
Top Services:
- Software Development
- HR Outsourcing
- Location
- Menlo Park, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
Your Business' Success is Our Mission Your Business' Success is Our Mission find solutions to your business and employee issues. Our areas of expertise are Business Management, Employee Management, Business Planning, HR, and Process Management. find solutions to your business and employee issues. Our areas...
Top Services:
- Business Consulting
- HR Outsourcing
- Accounting
- Location
- Bismarck, North Dakota
- Number of Employees
- Under 49
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
Growth Powering Solutions
A luminary in government custom software development, GP Solutions is a European powerhouse known for superior software development and IT consulting. Our expertise spans across industries like Finance, Healthcare, and Automotive. Tailoring our services, from Web Development to Team Outstaffing, we ensure...
Top Services:
- Mobile App Development
- Software Development
- IoT
- Web Development
- IT Services
- Show more
- Location
- Miami Beach, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 5 Projects Listed
IT Staffing, Talent Acquisition, Staff Augmentation, Recruiting, and Engineering Staffing
Spero has grown a long list of loyal clients, its because of our people. Armed with deep knowledge of their vertical, each member of our technical recruiting team works every day to uncover hidden talent...
Top Services:
- Staff Augmentation
- IT Services
- HR Outsourcing
- Location
- Irving, Texas
- Number of Employees
- 50 - 99
Every cloud deserves a silver lining.
We think technology so you don't have to. We provide 24/7 help desk, project work, CIO strategy, cyber security and video surveillance. We can work with your existing IT Department or be your internal IT Department...
Top Services:
- Cybersecurity
- IT Services
- Managed Services
- HR Outsourcing
- Show more
- Location
- Vancouver, Washington
- Number of Employees
- Under 49
- Minimal Budget
- Under $1,000
- Portfolios Count
- 4 Projects Listed
social media marketing & seo for local & global brands.
Social media agency that prioritizes long-term client relationships and focuses on helping businesses acheive their goals. Our intent is all for your delight...
Top Services:
- Social Media Marketing
- Content Marketing
- SEO
- Email Marketing
- Web Design
- Show more
- Location
- Iowa City, Iowa
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
Comprehensive HR Solutions, Unmatched Care and Sustainable Growth
We offer comprehensive and scalable HR solutions with unmatched care. Leverage our premium services and technology for administrative relief, reduced liabilities and better benefits. With a nationwide impact and local presence, we drive sustained growth for businesses and make a difference in communities...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Houston, Texas
- Number of Employees
- 1000 & Up
- Portfolios Count
- 3 Projects Listed
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
DesignRush sustains a directory of over 40,000 agencies categorized by service category, location, expertise, and reviews. We build our database in two ways:
- Our dedicated team of agency experts actively searches the web for top-performing companies. We then pull information from their websites, online presence, and client testimonials to verify their status and qualifications prior to listing.
- The agencies listed get notified of their profiles on the website and they can choose to claim it or not, which suggests their availability for more collaborations.
Agencies can also reach out to DesignRush and must go through the verification process prior to being listed.
Why companies trust DesignRush
Every agency is independently vetted before it can be listed or ranked
4.8
4.8Some agencies pay for sponsored placement, clearly labeled and held to the same vetting standards.
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
