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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  • Payroll and HR Made Easy

    Payroll and HR Made Easy

    We founded the ESC in 1995 to meet the increasing Human Resources and Employment Administration needs of the growing small & medium-sized business market in Western New York and throughout the country. Each client of the ESC started with a conversation – an opportunity for our team to learn about the...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    Buffalo, New York
    Number of Employees
    50 - 99
  • Managing All Aspects of HR & Payroll

    Managing All Aspects of HR & Payroll

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

    Top Services:

    • HR Outsourcing
    • Accounting
    • Business Consulting
    Location
    Buffalo, New York
    Number of Employees
    100 - 249
  • Building A Better Working World

    Building A Better Working World

    EY offers Accounting, Business Consulting, and IT Services with a mission to build a better working world. It provides insights and quality services that instill trust in global capital markets and economies. EY focuses on developing exceptional leaders who deliver on their commitments to all stakeholders...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Accounting
    • Cybersecurity
    • IT Services
    • Show more
    Location
    Sacramento, California
    Number of Employees
    1000 & Up
  • Service That Achieves Results!

    Service That Achieves Results!

    Providing both temporary and full-time staffing services in light industrial and office environments...

    Top Services:

    • HR Outsourcing
    Location
    Nashville, Tennessee
    Number of Employees
    100 - 249
  • The HT Group, hire performance powered by you

    The HT Group, hire performance powered by you

    The HT Group is a comprehensive management consulting, staffing, and recruiting agency in Austin, built upon the foundation of integrity, transparency, and trust. Deeply rooted in its communities, The HT Group’s philosophy is to change lives, one job or project at a time...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • Business Consulting
    Location
    Austin, Texas
    Number of Employees
    250 - 499
    Average Hourly Rate
    $25/hr
    Minimal Budget
    $1,000 - $10,000
  • Matching Talent With Success

    Matching Talent With Success

    Artisan Talent is a premier creative staffing agency that has been redefining talent solutions since its inception. Committed to excellence, we offer a comprehensive suite of services tailored to the unique needs of the creative, digital, and marketing industries...

    Top Services:

    • Graphic Design
    • Digital Marketing
    • Social Media Marketing
    • Creative Services
    • Web Design
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $75/hr
    Minimal Budget
    $1,000 - $10,000
  • Delivering Future

    Delivering Future

    We help startups and enterprises to drive digital engineering initiatives by helping them provide a rich, seamless experience to their customers across digital channels resulting in higher engagement, efficiency, and profitability...

    Top Services:

    • Software Testing
    • Software Development
    • IoT
    • Wearables
    • BPO
    • Show more
    Location
    Allen, Texas
    Number of Employees
    100 - 249
    Average Hourly Rate
    $25/hr
  • Adult HR for Mission-Driven Companies

    Adult HR for Mission-Driven Companies

    As a full-service HR Consultancy, we focus on building out robust HR functions for fast-growth companies, helping them acquire, retain and develop top talent, as well as implement the right systems to cut costs while leveling up their benefits, payroll, employer brand, ATS and HRIS, performance management...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    New York City, New York
    Number of Employees
    50 - 99
    Average Hourly Rate
    $150/hr
  • Impact | Innovation | Heart

    Impact | Innovation | Heart

    It is our purpose to take employees and leaders by the hand and guide them along the complex path of professional success, inspiring them with courage, confidence and care so they can conquer their boldest career dreams with passion and purpose...

    Top Services:

    • HR Outsourcing
    Location
    Schenectady, New York
    Number of Employees
    Under 49
    Minimal Budget
    $1,000 - $10,000
  • Exceptional Services. Stellar Results.

    Exceptional Services. Stellar Results.

    SevenStar HR's shared HR services deliver a growth strategy, protecting your organization and optimizing your most valuable asset - your people. No matter what your company size, we have a program to meet your needs. You'll only pay when we're on the job - working hard to find you the best talent, helping...

    Top Services:

    • HR Outsourcing
    Location
    Port Jefferson, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $145/hr
    Minimal Budget
    Under $1,000
  • We create design you’d love!

    We create design you’d love!

    #1 Fast-Growing Product Development Company in the World...

    Top Services:

    • Software Development
    • Mobile App Development
    • Blockchain
    • Web Development
    • eCommerce Development
    • Show more
    Location
    Austin, Texas
    Number of Employees
    50 - 99
    Average Hourly Rate
    $40/hr
    Minimal Budget
    $25,000 - $50,000
    Portfolios Count
    11 Projects Listed
  • Your Key to a Productive Workplace since 1997!

    Your Key to a Productive Workplace since 1997!

    KeyStaff is locally owned and has been in business since 1997! What we often hear from our customers is "KeyStaff knows our business better than anyone else"​, and that is our goal!...

    Top Services:

    • HR Outsourcing
    Location
    West Palm Beach, Florida
    Number of Employees
    Under 49
  • Your Business Is Our Purpose. Better Books Better Business.

    Your Business Is Our Purpose. Better Books Better Business.

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

    Top Services:

    • BPO
    • Accounting
    • HR Outsourcing
    • Business Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $70/hr
    Minimal Budget
    $1,000 - $10,000
  • At Contact Design, we specialize in finding and recruiting participants, no matter how specific, unique, and immovable the required attributes. Whether you are seeking a Chief Information Security Officer, an optometrist who is in charge of purchasing, a diabetes patient with migraines, or anyone in between...

    Top Services:

    • Market Research
    • HR Outsourcing
    Location
    Boston, Massachusetts
    Number of Employees
    Under 49
  • IT, Business, BPO, Audit, Tax and Advisory are just the beginning.

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

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

    Top Services:

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

    Empowering Your Accounting Decisions.

    Crowe LLP is a global accounting firm offering audit, tax, advisory, and consulting services. With deep industry expertise, we empower businesses to make informed decisions for lasting value. Recognized as a top workplace, we leverage our partnership with Crowe Global to provide comprehensive solutions...

    Top Services:

    • Accounting
    • HR Outsourcing
    • Business Consulting
    • Market Research
    • BPO
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    1000 & Up
  • CDH is an international accounting and consulting firm with headquarters in Chicago and Itasca since 1996...

    Top Services:

    • Accounting
    • HR Outsourcing
    • Business Consulting
    • Software Development
    • IT Services
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    100 - 249
    Average Hourly Rate
    $125/hr
    Minimal Budget
    $1,000 - $10,000
  • Building trust in society and solving important problems.

    Building trust in society and solving important problems.

    We’re a network of firms in 155 countries with over 284,000 people who are committed to delivering quality in BPO, project management, assurance, advisory, IT, and tax services...

    Top Services:

    • Market Research
    • BPO
    • HR Outsourcing
    • Accounting
    • Business Consulting
    • Show more
    Location
    Des Moines, Iowa
    Number of Employees
    1000 & Up
  • Focuses on Your Accounting Needs

    Focuses on Your Accounting Needs

    We are a regional professional services firm with services in Accounting, Tax, Audit, Consulting, Business Valuation, Insurance, Financial Services, Marketing, Human Resources, IT and more! We seek to provide a holistic approach of services to our clients to help them achieve their goals in business and life...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    Location
    Phoenix, Arizona
    Number of Employees
    250 - 499
    Average Hourly Rate
    $35/hr
    Minimal Budget
    $1,000 - $10,000
  • Grow fearlessly with Eide Bailly, your accounting ally.

    Grow fearlessly with Eide Bailly, your accounting ally.

    Eide Bailly is the trusted accounting partner for business growth and technology solutions. We embrace change and support companies experiencing growth challenges. We have a local presence in 13 states and a focus on superior accounting services...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    • IT Services
    • Cybersecurity
    • Show more
    Location
    Fargo, North Dakota
    Number of Employees
    1000 & Up
    Average Hourly Rate
    $145/hr
  • True Partners Consulting

    True Partners Consulting

    Baker Tilly USA is a privately-owned, trusted project management, tax consulting, and business advisory firm that helps public and large private enterprises navigate complex tax and financial regulations everywhere in the world...

    Top Services:

    • BPO
    • Accounting
    • HR Outsourcing
    • Business Consulting
    • IT Services
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    100 - 249
  • Optimizing Candidate Attraction Through Storytelling, Technology & Strategy

    Optimizing Candidate Attraction Through Storytelling, Technology & Strategy

    NAS is an award-winning recruitment marketing firm. Our team of experts partner with clients to help them bring qualified candidates into their talent pool and increase their ROI. NAS achieves that by focusing on 3 main pillars: Storytelling, Technology & Strategy. Being a one-stop shop with great in-house...

    Top Services:

    • Branding
    • HR Outsourcing
    • Social Media Marketing
    • Digital Marketing
    • Digital Strategy
    • Show more
    Location
    Independence, Ohio
    Number of Employees
    Under 49
  • Largest Global Asian-American Executive Search & HR Consulting Firm in the World

    Largest Global Asian-American Executive Search & HR Consulting Firm in the World

    HRCap, Inc. was founded in 2000 with the vision to connect talented candidates to successful organizations to unlock potentials and create greater value. We operate globally with focus in North America, Europe and APAC areas. With our rich history, seasoned capacities, and press-worthy accomplishments, we are...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Market Research
    Location
    Ridgefield Park, New Jersey
    Number of Employees
    50 - 99
    Average Hourly Rate
    $200/hr
  • Because Research Matters

    Because Research Matters

    We offer a wide range of research services to help you understand and design for your end users. We provide UX research, Human Factors testing, Ethnography, as well as in house participant recruiting and facility rentals for focus groups and mock trials in Houston...

    Top Services:

    • HR Outsourcing
    • Market Research
    Location
    Houston, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $200/hr
    Minimal Budget
    $10,000 - $25,000
  • HR Excellence

    HR Excellence

    Let us take the complexity of HR off your plate so you can get on with growing your business. Enjoy the benefits of a best-in-class HR program that promotes a thriving workforce...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    Tampa, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $125/hr
    Minimal Budget
    Under $1,000
  • Excellence Starts From Within.

    Excellence Starts From Within.

    Designing company culture that propels the future of work, we envision a world where people at every level of every organization treat each other with civility. Our mission is to partner with our clients to help them create a positive workplace environment...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    La Mesa, California
    Number of Employees
    Under 49
  • We create custom learning programs that get results for all your people, from the mailroom to the boardroom...

    Top Services:

    • Staff Augmentation
    • Business Consulting
    • HR Outsourcing
    Location
    Eagan, Minnesota
    Number of Employees
    Under 49
  • Strategist | Speaker | Consultant

    Strategist | Speaker | Consultant

    TanaMSession.com is a woman/minority-owned small enterprise Human Resources firm specializing in organizational and change management, executive leadership coaching and Diversity, Equity, Inclusion & Belonging...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    Los Angeles, California
    Number of Employees
    Under 49
    Average Hourly Rate
    $375/hr
    Minimal Budget
    $1,000 - $10,000
  • Where Ideas Turn Into Scalable Products.

    Where Ideas Turn Into Scalable Products.

    CoderzHub is a digital agency that offers services ranging from website development, mobile app development, custom software developement and digital marketing...

    Top Services:

    • Mobile App Development
    • Web Development
    • eCommerce Development
    • Software Development
    • WordPress Website Design
    • Show more
    Location
    Plano, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $25/hr
    Minimal Budget
    $1,000 - $10,000
  • Hire Simply, Scale Quickly

    Hire Simply, Scale Quickly

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

    Top Services:

    • HR Outsourcing
    • BPO
    • Call Centers
    • Staff Augmentation
    • Show more
    Location
    Berlin, Maryland
    Number of Employees
    250 - 499
    Average Hourly Rate
    $7/hr
    Minimal Budget
    Under $1,000
  • MidwestHR is a Chicago PEO helping companies for over 20 years.

    MidwestHR is a Chicago PEO helping companies for over 20 years.

    MidwestHR and affiliated companies provide business owners and CFOs of companies with 5 to 1,000 employees with relief from dozens of time-consuming HR & employment related functions, while helping protect the business from ever-increasing HR demands and liabilities. In addition, we help our clients to offer...

    Top Services:

    • HR Outsourcing
    Location
    Woodridge, Illinois
    Number of Employees
    Under 49
  • HRBoost, LLC. is Shared Services HR firm specializing in building HR from scratch and implementing practices that add value. Our Boosters are experienced and provide custom human resource solutions, systems, training and support to develop and optimize your investment in people...

    Top Services:

    • HR Outsourcing
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
  • We're a Human Resources services and consulting firm that specializes in serving startups, SMBs and non-profit organizations; whether it's payroll, employee benefits, HR software (HRIS) or leadership development, we're here to help!...

    Top Services:

    • HR Outsourcing
    Location
    Oakbrook Terrace, Illinois
    Number of Employees
    Under 49
  • Solve today, thrive tomorrow.

    Solve today, thrive tomorrow.

    Wipfli is a leading accounting and business consulting firm, ranking among the top 20 in the nation. With a century of experience and a forward-thinking approach, we help clients achieve lasting results. Our team of eternal students brings cross-industry expertise and creativity to solve complex challenges...

    Top Services:

    • BPO
    • HR Outsourcing
    • Business Consulting
    • Accounting
    • Mobile App Development
    • Show more
    Location
    Billings, Montana
    Number of Employees
    1000 & Up
  • Collaborating for Lasting Impact in Business Consulting

    Collaborating for Lasting Impact in Business Consulting

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

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    • Big Data Analytics
    • CRM Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    1000 & Up
    Portfolios Count
    6 Projects Listed
  • We Transform Big Questions Into Clear Actions.

    We Transform Big Questions Into Clear Actions.

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

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Cincinnati, Ohio
    Number of Employees
    100 - 249
  • Phenomenal Results by Phenomenal People

    Phenomenal Results by Phenomenal People

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

    Top Services:

    • HR Outsourcing
    • Accounting
    • Staff Augmentation
    Location
    Baltimore, Maryland
    Number of Employees
    Under 49
  • Together, we achieve more.

    Together, we achieve more.

    Offering project management, business, and IT services. At KPMG LLP, their purpose is to turn knowledge into value for the benefit of their clients, people, and the capital markets...

    Top Services:

    • Business Consulting
    • Market Research
    • Accounting
    • HR Outsourcing
    • IT Services
    • Show more
    Location
    New York City, New York
    Number of Employees
    1000 & Up
  • Accounting, but Better.

    Accounting, but Better.

    We’re accountants who advise, solve, and strategize and help you with your accounting, tax, and financial burdens. Our diverse teams work alongside you to provide simple and digestible solutions so you can achieve what’s most important to you...

    Top Services:

    • Business Consulting
    • Accounting
    • HR Outsourcing
    Location
    Florham Park, New Jersey
    Number of Employees
    250 - 499
  • HR and Employee Relations Investigations Training, Consulting, and Investigative Services

    HR and Employee Relations Investigations Training, Consulting, and Investigative Services

    Today, RPC has grown into a company that provides employers with risk management guidance and expertise through effective leadership, HR, and Employee Relations consulting and training programs as well as assistance with HR investigations. RPC’s services also include providing organizations with neutral...

    Top Services:

    • HR Outsourcing
    Location
    DeLand, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $275/hr
  • Capita is a transformation and digital services business, delivering innovative solutions and simplifying the links between businesses and customers, governments and citizens. We partner with clients to transform their businesses and services, taking on the complex and difficult things – so they don’t...

    Top Services:

    • BPO
    • Customer Support
    • Accounting
    • HR Outsourcing
    • Show more
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    1000 & Up
  • Democratising AI and Advanced Analytics for companies of all sizes, globally

    Democratising AI and Advanced Analytics for companies of all sizes, globally

    Founded by ex-Uber and ex-Deloitte employees, we are a full-stack provider of any Data or AI/ML needs (products or custom solutions) you may have. Be it Data Engineering, Machine Learning, Deep Learning, Advanced Analytics or Data Visualisation - we're here to help you take your company miles ahead of your...

    Top Services:

    • IT Services
    • Big Data Analytics
    • AI Development
    • Software Development
    • Digital Marketing
    • Show more
    Location
    Raleigh, North Carolina
    Number of Employees
    Under 49
    Average Hourly Rate
    $30/hr
    Minimal Budget
    $1,000 - $10,000
  • Act Locally, Expand Globally.

    Act Locally, Expand Globally.

    Acvian is a bridge between the employee and a company. In other words, you do not have to set up a company in a foreign country, but hire your personnel through an EOR agent and run your business as usual but now being completely international...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    St. Petersburg, Florida
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000
  • Skilled Trade Staffing To Get You The Skilled Workers You Need When You Need Them

    Skilled Trade Staffing To Get You The Skilled Workers You Need When You Need Them

    Xemplar is a nationwide skilled labor staffing agency, specializing in the placement of tradespeople, managers and specialty personnel for best-in-class industrial employers...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Salt Lake City, Utah
    Number of Employees
    Under 49
  • Placing People First

    Placing People First

    The Best Tech Recruiters & Tech Staffing Agency in Los Angeles, CA & Austin, TX - Rapid Growth Hiring, saving you time & money!...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Marina del Rey, California
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000
  • People.Connections.Solutions

    People.Connections.Solutions

    NW Recruiting Partners is a boutique recruiting firm based in Washington state. We work closely in collaboration with you to understand your needs and provide the right solution...

    Top Services:

    • HR Outsourcing
    Location
    Kirkland, Washington
    Number of Employees
    Under 49
    Minimal Budget
    Under $1,000
  • Your Partner in Small Business Success Since 1966

    Your Partner in Small Business Success Since 1966

    PADGETT has been catering to the unique needs of small business owners across North America since 1966. With a comprehensive suite of services, including small business consulting advice, professional tax preparation, payroll solutions, bookkeeping, and more, we provide the support and expertise necessary for...

    Top Services:

    • HR Outsourcing
    • Accounting
    • Business Consulting
    • IT Services
    • Show more
    Location
    Athens, Georgia
    Number of Employees
    250 - 499
  • Payroll and Human Resources made Simple and Personal.

    Payroll and Human Resources made Simple and Personal.

    United Payroll and HR Services, Inc is your one-stop solution for all your Payroll and Human Resource service needs!...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    San Diego, California
    Number of Employees
    Under 49
  • There Is a Better Way

    There Is a Better Way

    Total Package HR is a U.S.-based human-resources and payroll services firm headquartered in San Diego, California. The agency provides full-scale HR outsourcing solutions, payroll processing, compliance support, staffing & recruiting services, and on-demand HR assistance for small and mid-sized businesses...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    San Diego, California
    Number of Employees
    Under 49
  • Your HR Strategy Partner

    Your HR Strategy Partner

    Strategic HR Advisory specializes in HR consulting services for small to medium-size employers. Services include ongoing HR guidance, outsourced HR, risk assessments, team handbooks, and HR start-up services for new businesses...

    Top Services:

    • HR Outsourcing
    Location
    San Diego, California
    Number of Employees
    Under 49

Frequently Asked Questions About HR Outsourcing Services

What services do most of these companies typically offer?

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

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

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

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

How much does HR outsourcing cost?

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

Here’s a pricing breakdown per service type: 

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

What is the difference between HR outsourcing and a PEO?

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

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

 HR OutsourcingPEO
FunctionThird-party vendor Co-employer 
Legal LiabilityClientShares responsibility with the client
ServicesProvides the service as neededControls the entire HR operations 
Payroll, taxes, and filings Provider handles the service, but the client remains the employerProvider is the co-employer and administers the entire process
Benefits
  • Higher flexibility and customization 
  • Client keeps full control
  • Fewer risks, as PEO shares the liability
  • All-in-one HR function, no need to search for different providers 

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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

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