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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  • Leading the RPO industry with expertise

    Leading the RPO industry with expertise

    NxtThing RPO is a trailblazing provider of end-to-end Recruitment Process Outsourcing solutions, dedicated to transforming talent acquisition. Committed to excellence, we offer a comprehensive suite of services tailored to diverse industries...

    Top Services:

    • HR Outsourcing
    Location
    Waltham, Massachusetts
    Number of Employees
    50 - 99
    Portfolios Count
    3 Projects Listed
  • Beyond the Calls, We serve You!

    Beyond the Calls, We serve You!

    Total Quality Call Center is a One-stop Shop for all of your business needs. We are known for quality services with highest level of professionalism. Our Team is up for every job, managing different projects as we provide affordable business registration, business planning, CRM or Software setups and...

    Top Services:

    • Business Consulting
    • Branding
    • Logo Design
    • BPO
    • HR Outsourcing
    • Show more
    Location
    Sioux Falls, South Dakota
    Number of Employees
    50 - 99
    Average Hourly Rate
    $8/hr
    Minimal Budget
    Under $1,000
    Portfolios Count
    15 Projects Listed
  • Tech Giants need talent. VitalSource IT delivers.

    Tech Giants need talent. VitalSource IT delivers.

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

    Top Services:

    • HR Outsourcing
    • IT Services
    • Staff Augmentation
    Location
    Kirkland, Washington
    Number of Employees
    Under 49
  • From Staffing to Clouds, We've Got IT All Covered

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

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

    Top Services:

    • Managed Services
    • Call Centers
    • HR Outsourcing
    • IT Services
    • Staff Augmentation
    • Show more
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    250 - 499
    Portfolios Count
    4 Projects Listed
  • We'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.

    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.

    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
  • Many Divisions. One Vision. Global software and IT services.

    Many Divisions. One Vision. Global software and IT services.

    Offering IT training, IT, and software solutions. Founded as a local computer consulting company in 1979, LRS has grown to become a global provider of innovative information technology solutions with more than 900 employees. Corporate headquarters are located in Springfield, Illinois, and LRS offices are...

    Top Services:

    • HR Outsourcing
    Location
    Springfield, Illinois
    Number of Employees
    1000 & Up
  • Now, for tomorrow.

    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.

    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

    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
  • Talent Acquisition | Employer Branding | Consulting

    Talent Acquisition | Employer Branding | Consulting

    We Are Talent Acquisition Experts. We are here to place candidates for your need, at your request, with precision accuracy to your requirements. Our staffing team will search far and wide to bring you an array of human resources that are prepared to interview with your team...

    Top Services:

    • Public Relations
    • Reputation Management
    • Staff Augmentation
    • Managed Services
    • Business Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $250/hr
    Minimal Budget
    $1,000 - $10,000
  • Quality IT service staffing at pocket-friendly rates

    Quality IT service staffing at pocket-friendly rates

    Our offshore development center in Pune, India, offers a range of services, including web and mobile application design, testing projects, and IT project management in various technologies. We deliver projects with industry-best quality practices at competitive rates...

    Top Services:

    • HR Outsourcing
    Location
    Nashua, New Hampshire
    Number of Employees
    50 - 99
  • 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
  • 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
  • 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
  • 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
  • Boutique Staffing & Recruiting Solutions

    Boutique Staffing & Recruiting Solutions

    Founded in 1991, Delta Corporate Services is a boutique staffing and recruiting company that has a proven strength 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

    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
  • Unlock the Talent Vault with Scion Staffing

    Unlock the Talent Vault with Scion Staffing

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

    Top Services:

    • HR Outsourcing
    Location
    San Francisco, California
    Number of Employees
    50 - 99
    Portfolios Count
    3 Projects Listed
  • 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
  • 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
  • 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
  • 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
  • Our Philosophy Is Based on a Conceptual Approach Inspired by Vision and Design

    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

    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
  • Unlock IT Excellence: Hands-On Training, Unbeatable Value

    Unlock IT Excellence: Hands-On Training, Unbeatable Value

    At Thecornelis, we're your trusted IT training partner. Our dedication to hands-on learning experiences and practical knowledge empowers individuals and organizations to thrive in the dynamic field of information technology...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Lenexa, Kansas
    Number of Employees
    Under 49
    Minimal Budget
    $1,000 - $10,000
  • Creative, Product and AI Headhunting - We Make Matches, Globally.

    Creative, Product and AI Headhunting - We Make Matches, Globally.

    The Talent Boom is a Global Creative and Digital Headhunting firm located in three different continents. We work with the worlds leading brands, advertising agencies, fortune 500's and scaling start ups to help them find top talent when they hire...

    Top Services:

    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    Under 49
  • Hire with Pod

    Hire with Pod

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

    Top Services:

    • Web Design
    • UI/UX Design
    • HR Outsourcing
    • Mobile App Development
    • Show more
    Location
    Sheridan, Wyoming
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $1,000 - $10,000
  • 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

    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

    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
  • SMEs' Premier Outsourcing Ally: Your #1 Choice

    SMEs' Premier Outsourcing Ally: Your #1 Choice

    Big Outsource, a leading BPO company, specializes in outsourcing solutions, from project-based services to virtual captive centers. Our expertise spans creative, technical support, and IT disciplines, making us your trusted partner for outsourcing excellence...

    Top Services:

    • BPO
    • Call Centers
    • Customer Support
    • Phone Answering Services
    • Accounting
    • Show more
    Location
    New York City, New York
    Number of Employees
    250 - 499
    Minimal Budget
    $1,000 - $10,000
  • Benefits Solutions from Hire to Retire

    Benefits Solutions from Hire to Retire

    Thela Thatch Consulting offers comprehensive human resource and benefit solutions, catering to all stages from hiring to retirement. Our expertise lies in equipping organizations with the necessary tools to progress, as we adeptly bridge gaps in human resource best practices...

    Top Services:

    • HR Outsourcing
    Location
    Los Angeles, California
    Number of Employees
    Under 49
    Average Hourly Rate
    $150/hr
    Minimal Budget
    $1,000 - $10,000
  • 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
  • An extraordinary advantage.

    An extraordinary advantage.

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

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Grand Rapids, Michigan
    Number of Employees
    1000 & Up
  • Seamlessly Blending Proprietary Technology With Dedicated Service & Support

    Seamlessly Blending Proprietary Technology With Dedicated Service & Support

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

    Top Services:

    • HR Outsourcing
    Location
    Richfield, Ohio
    Number of Employees
    500 - 999
  • Fulfilling all your HR needs

    Fulfilling all your HR needs

    PrestigePEO is a distinguished PEO committed to empowering businesses with comprehensive HR and employee benefits solutions. With a resolute commitment to excellence, we offer a wide array of services tailored to diverse industries...

    Top Services:

    • HR Outsourcing
    Location
    New York City, New York
    Number of Employees
    100 - 249
  • Focused on people and performance

    Focused on people and performance

    Alcott HR is a distinguished PEO, dedicated to providing comprehensive HR solutions that empower businesses to thrive. With an unwavering commitment to excellence, we offer a wide array of services tailored to diverse industries...

    Top Services:

    • HR Outsourcing
    Location
    New York City, New York
    Number of Employees
    1000 & Up
  • We Power The Future Ready Workforce

    We Power The Future Ready Workforce

    Talent & Technology Solutions to help you Build a Thriving Workplace...

    Top Services:

    • HR Outsourcing
    Location
    Dover, Delaware
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
    Minimal Budget
    $1,000 - $10,000
  • Innovative staffing solutions for businesses

    Innovative staffing solutions for businesses

    Mindlance is a leading global provider of innovative workforce staffing solutions, dedicated to transforming businesses through cutting-edge services...

    Top Services:

    • HR Outsourcing
    Location
    Union City, New Jersey
    Number of Employees
    1000 & Up
  • The Best Way To Build Your Software.

    The Best Way To Build Your Software.

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

    Top Services:

    • Software Testing
    • Software Development
    • Mobile App Development
    • Web Development
    • UI/UX Design
    • Show more
    Location
    Menlo Park, California
    Number of Employees
    50 - 99
    Average Hourly Rate
    $28/hr
    Minimal Budget
    $10,000 - $25,000
  • 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
  • Think Deeper

    Think Deeper

    Vision Elements specializes in computational sciences. Any scientific or technical challenge that involves modeling, simulation, or optimization for information extraction, reconstruction of source events, prediction, or deep knowledge of conditions might benefit from collaborating with our zealous leaders...

    Top Services:

    • Software Development
    • AI Development
    • Business Consulting
    • HR Outsourcing
    • Big Data Analytics
    • Show more
    Location
    Boston, Massachusetts
    Number of Employees
    Under 49
    Average Hourly Rate
    $100/hr
  • Doing IT Better

    Doing IT Better

    TekRecruiter is a boutique and deeply specialized technology recruiting firm with thorough technical aptitude and screening processes to connect innovative companies with the top 5% of in-demand technology professionals. We partner well with exciting technology start-ups who are looking to grow and scale...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Fort Lauderdale, Florida
    Number of Employees
    Under 49
    Minimal Budget
    $25,000 - $50,000
  • 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
  • Kansas City's best PEO

    Kansas City's best PEO

    AxcessHr is a leading PEO and human resources outsourcing firm, committed to providing comprehensive HR solutions that empower businesses to thrive...

    Top Services:

    • HR Outsourcing
    Location
    Overland Park, Kansas
    Number of Employees
    Under 49
    Portfolios Count
    3 Projects Listed
  • WE MAKE IT WORK FOR YOU!

    WE MAKE IT WORK FOR YOU!

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

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • Software Development
    Location
    Houston, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
  • 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

Frequently Asked Questions About HR Outsourcing Services

What services do most of these companies typically offer?

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

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

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

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

How much does HR outsourcing cost?

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

Here’s a pricing breakdown per service type: 

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

What is the difference between HR outsourcing and a PEO?

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

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

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

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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

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