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.
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
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
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
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
LHH exists to help people, teams, and organizations find and prepare for what comes next. An end-to-end Talent Solutions brand that helps clients and candidates to embrace a new reality: a world of continuous change...
Top Services:
- Business Consulting
- HR Outsourcing
- Location
- Jacksonville, Florida
- Number of Employees
- 1000 & Up
Talent HR Solutions offers a complete range of HR solutions tailored to your unique business needs. We bring smart, experienced folks with diverse backgrounds together to help you design and implement strategic changes that will help you become an industry leader. We're happy to sit down with you and discuss...
Top Services:
- HR Outsourcing
- Location
- Honolulu, Hawaii
- Number of Employees
- Under 49
Techjays is an AI development company helping businesses reimagine how work gets done with AI. Combining AI consulting and AI development services, Techjays identifies high-value business workflows, redesigns processes around AI, and builds production-ready systems that deliver measurable outcomes...
Top Services:
- Software Testing
- Software Development
- Mobile App Development
- Web Development
- UI/UX Design
- Show more
- Location
- Menlo Park, California
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
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
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
Headquartered in Miami and Fort Lauderdale with deep relationships in Boston and New York. TekRecruiter is a boutique and deeply specialized tech and engineering staffing & recruiting firm that finds the top 1% of technology and engineering talent that drives the world's best tech companies...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Fort Lauderdale, Florida
- Number of Employees
- Under 49
Commit is a boutique software development company that specializes in the creation of mobile and web applications utilizing the technologies of React, Node.js, and Android and iOS. We design and construct bespoke e-commerce platforms, ranging in complexity from the most basic to the most advanced. We find it...
Top Services:
- Web Development
- eCommerce Development
- Web Design
- HR Outsourcing
- Show more
- Location
- Mountain View, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 5 Projects Listed
Creative Design Venture is a digital agency specializing in innovative web solutions and executive digital marketing services so that our valuable clientele and their businesses can have a strong online presence...
Top Services:
- Digital Marketing
- Logo Design
- Web Development
- Social Media Marketing
- Business Consulting
- Show more
- Location
- Chicago, Illinois
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 1 Project Listed
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
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
Outsourced Accounting Firm providing unparalleled accounting support. Gain access to an experienced team tailored to the unique requirements of your business. We provide CFO Services, Controller Services, Back-Office Support, Placement and Recruiting services, Government Contractor Accounting Services, HR...
Top Services:
- HR Outsourcing
- Accounting
- Location
- San Diego, California
- Number of Employees
- 50 - 99
IT3TEK is an IT solutions company that offers a comprehensive range of services. Outsourced IT, project work, cybersecurity, phone systems and more! We are exactly what it is that you need us to be for your company. We will even provide a free analysis of your network and systems...
Top Services:
- IT Services
- Cybersecurity
- Staff Augmentation
- Cloud Consulting
- HR Outsourcing
- Show more
- Location
- Glen Allen, Virginia
- Number of Employees
- 50 - 99
- Portfolios Count
- 5 Projects Listed
At our company, Intermedia, we specialize in software development and are made up of a group of proactive professionals in the tech industry who are passionate about creating edgy and innovative products. We are based in Argentina and are dedicated to delivering cutting-edge solutions to our clients...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $49/hr
- Minimal Budget
- $10,000 - $25,000
Utilizing mobile, web, analytics, and cloud technologies, we create specialized software applications and solutions for our clients...
Top Services:
- Mobile App Development
- Software Development
- IoT
- UI/UX Design
- Web Development
- Show more
- Location
- Lewes, Delaware
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $10,000 - $25,000
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
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
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
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
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
Uniqcli is a provider of cutting-edge technology committed to providing innovative solutions to businesses of all sizes. With an emphasis on quality and customer satisfaction, we are pleased to serve more than ten Fortune 500 companies. As industry pioneers, we are committed to remaining ahead of the curve...
Top Services:
- eCommerce Development
- Web Development
- Web Design
- Digital Marketing
- HR Outsourcing
- Show more
- Location
- Chicago, Illinois
- Number of Employees
- Under 49
- Average Hourly Rate
- $120/hr
- Minimal Budget
- $10,000 - $25,000
At our Trusted IT Consulting Services, our objective is to comprehend your business and aid in solving business problems while taking advantage of opportunities with first-rate technology solutions. Our team collaborates with you to plan, design, develop, and deliver solutions that will expedite your growth...
Top Services:
- Cloud Consulting
- HR Outsourcing
- Location
- Bellevue, Washington
- Number of Employees
- 100 - 249
We partner with organizations of all sizes to provide strategic and operational HR solutions, supporting the full employee life cycle...
Top Services:
- HR Outsourcing
- Location
- Madison, Alabama
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
Square 9 simplifies routine corporate activities with enterprise content management, document capture, software development and web forms, and business process automation technologies that may be easily adapted to automate any paper-intensive activity. This allows you to focus more of your time on development...
Top Services:
- IT Services
- HR Outsourcing
- Location
- New Haven, Connecticut
- Number of Employees
- 50 - 99
1840 & Company is a global provider of talent and team solutions devoted to empowering businesses with scalable, on-demand workforce solutions. With a stringent verification procedure and a network of professionals in 150 countries, we connect organizations with remote talent of the highest caliber. Our...
Top Services:
- BPO
- Staff Augmentation
- HR Outsourcing
- Customer Support
- Call Centers
- Show more
- Location
- Overland Park, Kansas
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $10,000 - $25,000
With innovative initiatives that have the ability to transform lives and businesses, we are establishing solid relationships. With a customized approach, we collaborate with each client and candidate to develop effective strategies tailored to their specific requirements. As specialists in recruiting top IT...
Top Services:
- HR Outsourcing
- Location
- Claymont, Delaware
- Number of Employees
- Under 49
- Minimal Budget
- $10,000 - $25,000
Our global reach allows us to work at affordable rates without sacrificing the quality of our work or the timeliness of our delivery, and our customer-focused culture makes it simple for us to collaborate seamlessly with your internal information systems team...
Top Services:
- HR Outsourcing
- Software Development
- UI/UX Design
- Location
- Irvine, California
- Number of Employees
- 500 - 999
Gables Search Group is able to tailor a program to a company's objectives and provide them with the most qualified candidate(s). Our database of resumes contains tens of thousands of candidates, allowing us to provide keyword and customized searches tailored to a company's requirements. Depending on the...
Top Services:
- HR Outsourcing
- Location
- Willoughby, Ohio
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
We pledge to keep using cutting-edge tactics, services, and strategies to deliver long-term, client-defined business value that makes the most of each client's IT investment for a competitive edge...
Top Services:
- HR Outsourcing
- Cloud Consulting
- Software Development
- Location
- Beaverton, Oregon
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $1,000 - $10,000
Nyros, an India-based software development firm, provides outstanding voice, web and mobile app development services to brands and companies worldwide...
Top Services:
- HR Outsourcing
- Digital Services
- Digital Strategy
- Location
- Wilmington, Delaware
- Number of Employees
- Under 49
- Average Hourly Rate
- $49/hr
- Minimal Budget
- $25,000 - $50,000
CCJM Solutions is a boutique IT Consulting and BPO firm located in Atlanta, Georgia. We are passionate about helping businesses modernize operations while reducing costs. Our areas of expertise includes custom software, web, and app development, cloud migrations, staffing, and compliance management...
Top Services:
- IT Services
- Software Development
- Graphic Design
- CRM Consulting
- Cloud Consulting
- Show more
- Location
- Atlanta, Georgia
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $65/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
Battery Staff specializes in battery, EV, and gigafactory recruitment. We can help you hire one person or one hundred, nationwide...
Top Services:
- HR Outsourcing
- Location
- Chicago, Illinois
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
At HighCloud Solutions, our unwavering passion lies in technology. We are dedicated to empowering organizations by optimizing the latest advancements and driving productivity to new heights...
Top Services:
- HR Outsourcing
- IT Services
- Location
- St. Paul, Minnesota
- Number of Employees
- Under 49
Technology and Security that is transparent to your business...
Top Services:
- Managed Services
- HR Outsourcing
- IT Services
- Location
- Flint, Michigan
- Number of Employees
- Under 49
With its sales and consulting divisions, WTA Consulting, a division of Warnock, Tanner & Associates, is a prominent IT service provider that uses best practices to set itself apart from other top IT consulting companies with clever and practical business solutions...
Top Services:
- IT Services
- Managed Services
- HR Outsourcing
- Location
- Toledo, Ohio
- Number of Employees
- Under 49
A company called SynchronyHR provides outsourcing for human resources to business owners all throughout the nation. You can stop worrying about the boring jobs and concentrate on your growth and success by doing away with the headaches of human resources, compliance, workers' compensation, risk management...
Top Services:
- HR Outsourcing
- Accounting
- Location
- St. Louis, Missouri
- Number of Employees
- Under 49
ettain group, the industry-leading talent solutions company in Charlotte, NC, delivers recruitment services and managed services in IT, healthcare IT and digital creative. With over 21 years of expertise, we provide end-to-end talent solutions across all phases of the talent life cycle. Count on us for...
Top Services:
- HR Outsourcing
- UI/UX Design
- Location
- Charlotte, North Carolina
- Number of Employees
- 100 - 249
Hyparz links IT organizations looking for remote workers with developers all around the globe. Hyparz is the main professional destination for IT specialists at all stages of their careers in tech firms...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Chandler, Arizona
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $45/hr
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 1 Project Listed
KritiKal Solutions is a technology design house and holds 22+ years of experience in AI, Computer Vision, Software Applications, Cloud and Mobile-based Solutions, Embedded Systems, Generative AI and Large Language Models. We specialize in R&D, product engineering, and innovation services...
Top Services:
- AI Development
- IoT
- Mobile App Development
- Software Development
- Wearables
- Show more
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 4 Projects Listed
Since mid-2014, DataWits has worked with clients from the United States, Canada, the United Kingdom, Australia, and the Middle East. The majority of our clients rely on us on an ongoing basis to meet their outsourcing and offshoring needs. We primarily serve the Data Entry, Data Processing, and Support...
Top Services:
- BPO
- HR Outsourcing
- IT Services
- Location
- Cheyenne, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $15/hr
- Minimal Budget
- $1,000 - $10,000
Envision Circle is an innovative software solutions company. We are specialised in providing software solutions for ecommerce platforms, travel agencies and customer relationship management...
Top Services:
- Software Development
- Digital Marketing
- SEO
- Social Media Marketing
- eCommerce
- Show more
- Location
- Sheridan, Wyoming
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $20/hr
- Minimal Budget
- $1,000 - $10,000
We're a professional services company specializing in recruiting operations (RecOps). We work with companies of all sizes to ensure they have the right tools, trainings, processes, and documentation to run a successful talent acquisition team...
Top Services:
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- Under 49
h2 Recruit is a specialist Sales Recruitment agency with offices in London and New York...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
Allegis Group stands as a global leader in talent solutions, dedicated to transforming businesses through a comprehensive suite of services. With an unwavering commitment to excellence, we provide a range of workforce solutions including staffing, recruiting, and workforce management...
Top Services:
- HR Outsourcing
- Location
- Hanover, Maryland
- Number of Employees
- 1000 & Up
- Portfolios Count
- 5 Projects Listed
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
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
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
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
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Frequently Asked Questions About HR Outsourcing Services
What services do most of these companies typically offer?
They typically provide a comprehensive menu of services covering the full employee lifecycle.
According to industry research, these are the most frequently outsourced HR services:
- Payroll outsourcing (70%): Processing employee salaries and ensuring that they comply with contract agreements, labor laws, and tax regulations.
- Recruitment process outsourcing (RPO) (28%): Sourcing, screening, interviewing, and onboarding talent required by an organization.
- Multi-process HRO (26%): Delegating multiple HR operations to a single third-party provider, such as payroll processing, onboarding and training, and compliance.
- Benefits administration (18%): Managing an organization’s benefits programs for employees, such as health insurance, paid time off, and retirement plans.
- Learning services (14%): Overseeing an organization’s training and development programs, helping employees upskill or reskill.
Beyond these core offerings, these companies also cover performance management, time and attendance tracking, and compliance management.
How much does HR outsourcing cost?
HR outsourcing costs start at $50-$200 per employee per month and can go beyond $1,500 per employee per month. The final rate will depend on the type of HR sourcing service, engagement model, company size and structure, industry, and compliance requirements.
Here’s a pricing breakdown per service type:
- Payroll processing: Base fee of $150-$350 per month for a company with under 20 employees
- Compliance management: $500-$5,000 per month, depending on scope and requirements
- Employer record services (EOR): $200-$1,500 per month per employee
- Training and development: $50-$300 per employee per module, and can be exclusive of trainer compensation, event space, and training materials.
- Recruitment and talent acquisition: 15%-30% of the talent’s first-year salary or $5,000-$20,000+ per month, with more premium rates for more specialized or niche expertise
What is the difference between HR outsourcing and a PEO?
While both HR outsourcing companies and PEOs (professional employer organizations) help organizations hire and manage their employees, they have different functions.
Mainly, an HRO serves as an external vendor, while a PEO operates through a co-employment model. Below are more details:
| HR Outsourcing | PEO | |
| Function | Third-party vendor | Co-employer |
| Legal Liability | Client | Shares responsibility with the client |
| Services | Provides the service as needed | Controls the entire HR operations |
| Payroll, taxes, and filings | Provider handles the service, but the client remains the employer | Provider is the co-employer and administers the entire process |
| Benefits |
|
|
What questions should I ask before hiring?
Ask these questions before hiring an HR outsourcing company:
Relevant Background
- What HR functions do you cover, and what is your expertise?
- Can you provide case studies or references for companies similar to our business size, industry, and complexity?
- What is your compliance coverage per state and per country?
Services and Processes
- Can you walk me through your end-to-end processes (e.g., onboarding, payroll cycles, offboarding)?
- What HR tools and technologies do you use, and can you integrate them with my IT ecosystem?
- What is your security and data governance approach, and what are your disaster recovery commitments?
Related to Your Project
- What administrative effort is required from our team weekly/monthly?
- Can you scale services as we grow (new states/countries, headcount, acquisitions), and what changes in pricing or support model?
- What SLAs do you commit to, and who will be our day-to-day contact?
What types of businesses usually outsource their HR services?
Industry research found that 57% of companies outsource at least one HR service, proving that all types of businesses can benefit these from these types of services.
However, here are the sectors that have the highest share of HRO contracts:
- Business, financial services, and insurance companies: 22%
- Information technology: 20%
- Healthcare: 18%
- Retail: 15%
- Hospitality: 10%
Latest Trends Related to HR Outsourcing
