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.
Hire Whoever, Wherever, Whenever.Easily Onboard, Insure, Pay and Manage your workforce with our all in one solution...
Top Services:
- BPO
- HR Outsourcing
- Accounting
- Location
- Norwalk, Connecticut
- Number of Employees
- Under 49
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
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
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
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
Tomedes is a leading translation company specializing in translation services, interpretation, and localization solutions for businesses and private clients worldwide. As a one-stop shop for language and translation solutions, we offer a wide range of language solutions in over 120+ languages and 950+...
Top Services:
- Translation Services
- Business Consulting
- Transcription Services
- Digital Services
- Branding
- Show more
- Location
- Oregon City, Oregon
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $1/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 1 Project Listed
Boost your business with EC Networks, a prominent IT services firm headquartered in Los Angeles, California. We specialize in custom solutions and unwavering support, fostering innovation and enhancing efficiency for clients across diverse industries and scales. Your success is our foremost priority...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Software Development
- AI Development
- Show more
- Location
- Los Angeles, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $90/hr
- Minimal Budget
- Under $1,000
Aspen HR: Expert PEO Solutions for Dynamic Business Growth. Offering specialized HR services, payroll management, and comprehensive benefits in a white-glove approach, catering to diverse industries including technology and finance. Renowned for personalized client service and a robust national presence...
Top Services:
- Business Consulting
- HR Outsourcing
- Accounting
- BPO
- Market Research
- Show more
- Location
- Dallas, Texas
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
ConsultEvo helps service businesses and fast moving teams streamline operations with ClickUp systems, CRM automation, AI implementation, and custom workflows...
Top Services:
- Business Consulting
- HR Outsourcing
- CRM Consulting
- IT Services
- ERP Consulting
- Show more
- Location
- Casper, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $75/hr
- Minimal Budget
- $1,000 - $10,000
Switch360 is your dedicated partner in unleashing the full potential of your enterprise. Specializing in exceptional outsourcing solutions, we redefine the customer support landscape to propel your business toward unprecedented success. With a focus on digital dominance, we bring our expertise in short-term...
Top Services:
- BPO
- Call Centers
- Customer Support
- Phone Answering Services
- Transcription Services
- Show more
- Location
- Los Angeles, California
- Number of Employees
- Under 49
Alstra Technologies specializes in sourcing, hiring, and managing certified experts from Latin America, offering innovative solutions backed by cutting-edge technology. With a deep understanding of the Latin American talent landscape, the agency is committed to revolutionizing the dynamics between companies...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Deerfield Beach, Florida
- Number of Employees
- Under 49
ARK Solutions is dedicated to fostering happiness and inclusivity in every aspect of its operations, going beyond traditional staffing paradigms. With a focus on genuine relationships and understanding client needs, the agency ensures optimal matches in contingent staffing and MSP support services. ARK...
Top Services:
- HR Outsourcing
- Location
- Reston, Virginia
- Number of Employees
- Under 49
Crescens specializes in advanced IT staffing solutions, fostering mutual benefit for clients and consultants. Through seamless integration of people, technology, and business systems, it delivers efficient staffing solutions with increased flexibility and dynamic business value. Focused on quality consulting...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Bridgewater, New Jersey
- Number of Employees
- 100 - 249
Vi-Leon is a trusted IT and staffing agency guiding individuals and businesses toward continuous growth and success. Specializing in digital and life sciences solutions, Vi-Leon offers expertise in cloud architecture, data engineering, software development, and regulatory affairs. Committed to fostering trust...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Beverly, Massachusetts
- Number of Employees
- Under 49
Jarvis Cole is a premier eCommerce recruiting agency with a global footprint spanning North America, LATAM, EMEA, and APAC. Specializing in talent acquisition for businesses of all scales, Jarvis Cole excels in sourcing top-tier professionals across diverse eCommerce sectors, ensuring optimal team composition...
Top Services:
- HR Outsourcing
- Location
- Fort Lauderdale, Florida
- Number of Employees
- 50 - 99
A forward-thinking HR consulting agency, Building For Mission (BFM) emphasizes the pivotal role of individuals within organizations. BFM collaborates closely with clients to revolutionize talent strategies and practices. Through tailored approaches and innovative solutions, BFM empowers organizations and...
Top Services:
- HR Outsourcing
- Location
- Lorton, Virginia
- Number of Employees
- Under 49
Focus Search Partners specializes in executive search solutions to enhance organizational growth and success. With a strategic and collaborative approach, the agency builds high-performing teams across various sectors, from healthcare to technology. Its seasoned professionals offer industry expertise and a...
Top Services:
- HR Outsourcing
- Location
- Brentwood, Tennessee
- Number of Employees
- Under 49
HDH Advisors offers tailored business consulting and valuation services, ensuring strategic decision-making and value creation across transactions. With a focus on providing premium professional guidance, HDH Advisors leverages its expertise in various facets of corporate finance to navigate complex business...
Top Services:
- Business Consulting
- Location
- Des Moines, Iowa
- Number of Employees
- 50 - 99
The Parham Group, established in 1999, is a professional services firm specializing in organizational development and strategic planning for public and private nonprofit organizations across Mississippi and the Southeast. With over two decades of experience, the Parham Group offers tailored solutions to help...
Top Services:
- HR Outsourcing
- Location
- Jackson, Mississippi
- Number of Employees
- Under 49
At Devticks, we specialize in creating future-ready solutions that address business challenges, fulfill specific requirements, and align with market demands. Our enterprise-scale tech products and cloud services offer full-stack development solutions, seamlessly integrating database management, server...
Top Services:
- DevOps Consulting
- Cloud Consulting
- Software Development
- Mobile App Development
- HR Outsourcing
- Show more
- Location
- Casper, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 9 Projects Listed
With the use of accelerators, healthcare technology platforms, and specialized solutions, IT Consulting Group assists clients in accelerating innovation in the healthcare industry. We constantly provide healthcare businesses around the globe with best-in-class solutions at the lowest possible cost...
Top Services:
- IT Services
- Software Development
- HR Outsourcing
- Business Consulting
- Show more
- Location
- Irvine, California
- Number of Employees
- Under 49
N2S offers global workforce solutions, enabled by local expertise. This done by simplifying the hiring process through extensive payroll support and focus on compliance...
Top Services:
- Business Consulting
- BPO
- HR Outsourcing
- Location
- Jersey City, New Jersey
- Number of Employees
- 1000 & Up
- Minimal Budget
- Under $1,000
DivVerse LLC is a technology outsourcing and staff augmentation company located in the US. We specialize in fulfilling software development and AI talent from Africa, for startups and small-medium tech enabled organizations in the US looking to build affordable and highly efficient offshore teams...
Top Services:
- Software Development
- AI Development
- Staff Augmentation
- HR Outsourcing
- Accounting
- Show more
- Location
- Round Rock, Texas
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $1,000 - $10,000
We recruit and help you compensate global talents for your remote positions, ensuring costs are up to 70% lower than what US & Western EU talents typically demand, without sacrificing quality...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Customer Support
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
G&A Partners can help you outsource human resources and administrative services so you can focus on your core business...
Top Services:
- HR Outsourcing
- Location
- Houston, Texas
- Number of Employees
- 250 - 499
Infiniti HR provides human resources outsourcing services to the small to mid-sized business market, including payroll, human resource compliance, employee benefits services and risk management services through PEO or ASO arrangements...
Top Services:
- HR Outsourcing
- Location
- Columbia, Maryland
- Number of Employees
- 1000 & Up
Focus HR helps small businesses manage employees, mitigate risk and unlock growth with outsourced HR, payroll, workers comp, 401(k) and benefit administration services...
Top Services:
- HR Outsourcing
- Location
- Tucson, Arizona
- Number of Employees
- Under 49
Human Resources is more than just technology. Its also more than just people. Its a blend of both. Symmetry HR Outsourcing combines cutting-edge technology with an experienced team of HR Advisors and Workforce Strategists dedicated to help you minimize risk and maximize performance. (Symmetry HR Outsourcing...
Top Services:
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- Under 49
Kraussel Applications is a business solutions agency for small and medium sized businesses. We offer marketing and human resources services to help clients enhance their online presence and enhance their company culture. Two services that are the life blood to a strong operating business...
Top Services:
- Web Design
- Web Development
- SEO
- Social Media Marketing
- HR Outsourcing
- Show more
- Location
- New Berlin, Wisconsin
- Number of Employees
- Under 49
- Average Hourly Rate
- $55/hr
- Minimal Budget
- $1,000 - $10,000
Influx.com is the #1 on-demand service partner for growing brands. Since 2013, Influx has been trusted by 750+ brands & delivered fully managed, on-brand support, 24/7, on month-to-month plans. Our human + AI teams deliver better customer experience for e-commerce, SaaS, Tech brands worldwide...
Top Services:
- Customer Support
- Call Centers
- BPO
- HR Outsourcing
- AI Development
- Show more
- Location
- West Hollywood, California
- Number of Employees
- 1000 & Up
- Portfolios Count
- 2 Projects Listed
Moose AI Legion is a forward-thinking AI solutions provider dedicated to helping small businesses and entrepreneurs stay competitive in today’s rapidly evolving digital world...
Top Services:
- CRM Consulting
- AI Development
- HR Outsourcing
- Location
- Lignum, Virginia
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
Personiv offers flexible outsourced accounting solutions to optimize finance operations and reduce costs. With a dedicated team approach, the firm empowers businesses to refocus on strategic initiatives while handling their day-to-day financial tasks efficiently and professionally. Personiv specializes in...
Top Services:
- Accounting
- BPO
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- 1000 & Up
Welcome to HealthRescue Partners. We specialize in empowering healthcare startups and small practices to thrive amidst the complexities of the modern medical industry. Understanding the critical issues new healthcare businesses face, such as regulatory compliance, patient acquisition, financial management...
Top Services:
- HR Outsourcing
- Social Media Marketing
- Digital Marketing
- Web Design
- Show more
- Location
- Albuquerque, New Mexico
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $8/hr
Hiline offers bookkeeping, tax, and payroll services for small businesses, providing tailored financial solutions to streamline operations and support growth...
Top Services:
- Accounting
- HR Outsourcing
- BPO
- Location
- Syracuse, New York
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $1/hr
Fourths end-to-end solution supports restaurants and hospitality businesses with hiring and retaining the best employees, streamlining scheduling, improving forecasting, and automating the human resource management and payroll compliance process...
Top Services:
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- 500 - 999
Allegiance Staffing is a Staffing Firm that operates in 14 states with 41 branches nationwide. Allegiance Staffing specializes in developing partnerships with companies that are need of staffing solutions...
Top Services:
- HR Outsourcing
- Location
- Spring, Texas
- Number of Employees
- 1000 & Up
We are a startup company built by industry veterans with a global team based in the United States, Canada and India. Our team's background is in the IT industry having worked across a variety of disciplines...
Top Services:
- HR Outsourcing
- Location
- Delaware, Ohio
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
CEOVerge is a trusted leader in medical billing, offering over 25 years of expertise in maximizing revenue for healthcare providers. We streamline the entire revenue cycle, from claim submission to appeals, ensuring fast, accurate payments while letting providers focus on patient care...
Top Services:
- Business Consulting
- BPO
- HR Outsourcing
- Location
- Stafford, Virginia
- Number of Employees
- Under 49
- Minimal Budget
- $10,000 - $25,000
Talent acquisition specialists focused on staffing, contract-to-hire, and full-time direct hire for all roles in marketing and creative...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Worthington, Ohio
- Number of Employees
- Under 49
ASK 2 PRO delivers expert virtual assistant services nationwide, helping businesses streamline tasks, boost efficiency, and expand their network. From admin to communication, we handle the details so you can focus on growth and success...
Top Services:
- Web Development
- Digital Marketing
- AI Development
- HR Outsourcing
- Customer Support
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $7/hr
Humareso provides comprehensive human resources (HR) outsourcing solutions to streamline business operations and management. Specializing in talent strategy, payroll processing, and compliance, Humareso supports organizations with or without existing HR teams. The firm's expert services help businesses...
Top Services:
- Business Consulting
- HR Outsourcing
- Location
- Vero Beach, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $199/hr
- Minimal Budget
- $1,000 - $10,000
ProDevs connects global companies with top tech talent from Africa, streamlining the hiring process for developers, designers, and more. Through a rigorous vetting system, ProDevs ensures companies quickly find the right fit, offering flexible hiring models that cater to project-based, contract, or full-time...
Top Services:
- Software Development
- eCommerce Development
- Staff Augmentation
- DevOps Consulting
- HR Outsourcing
- Show more
- Location
- Delaware City, Delaware
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
Hire globally, stress-free, with a reliable Virtual Assistant for just $10/hour no contracts, no setup fees, no hassle. Pixel Buddys dedicated Virtual Buddies take care of time-consuming tasks so you can focus on growing your business and enjoying life.Trust your buddy to have your back!...
Top Services:
- HR Outsourcing
- BPO
- Location
- Pueblo, Colorado
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $8/hr
- Minimal Budget
- $1,000 - $10,000
ClarkStaff is a global outsourcing company that provides tailored remote staffing solutions to businesses of all sizes. From seat leasing and recruitment process outsourcing (RPO) to project-based and hourly services, ClarkStaff helps companies streamline operations, reduce costs, and access top-tier talent...
Top Services:
- HR Outsourcing
- Location
- St. Petersburg, Florida
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $7/hr
- Minimal Budget
- $1,000 - $10,000
Smartbrain.io is a platform connecting companies with the best IT specialists from all over the world...
Top Services:
- IT Services
- HR Outsourcing
- Location
- San Francisco, California
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $40/hr
As the largest, national staffing agency specializing exclusively in high-end, niche IT, tech, and digital marketing talent, staffing is more than just our job. Its our passion. For nearly two decades, we've changed how to approach hiring needs for contract, contract-to-hire, and full-time tech and digital...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
EmpHire is a leading HR outsourcing firm specializing in workforce solutions tailored to meet the unique needs of businesses across industries. With over 30 years of experience, the firm provides temporary staffing, direct hire, and managed services. Its commitment to compliance, risk management, and...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 1000 & Up
Empowering Businesses with Innovative Software Solutions. By bridging the gap between existing and emerging technologies, Evolve Blue helps you innovate faster, with less risk, on your path to digital transformation...
Top Services:
- Web Development
- Managed Services
- IT Services
- Staff Augmentation
- HR Outsourcing
- Show more
- Location
- King of Prussia, Pennsylvania
- Number of Employees
- Under 49
Communispond is the global leader in communication skills training programs for corporations and individuals...
Top Services:
- HR Outsourcing
- Location
- Fort Lauderdale, Florida
- Number of Employees
- Under 49
Rossa provides highly trained, bilingual legal virtual assistants to law firms and solo practitioners across the U.S. Our experts handle case management, legal reception, client intake, and more seamlessly integrating into your operations. Designed to reduce costs, boost efficiency, and support growth, Rossa...
Top Services:
- BPO
- Phone Answering Services
- Customer Support
- HR Outsourcing
- Show more
- Location
- Arlington, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $12/hr
- Minimal Budget
- $1,000 - $10,000
HR Outsourcing Companies by City
HR Outsourcing Companies by State
HR Outsourcing Specializations in the US
Popular Services
Hiring Guide: How to Choose the Best HR Outsourcing Services in the US
How do I choose the right company for my business?
To choose the right outsourcing company for your business, consider these steps:
- Define your needs
Map out the exact HR functions you want to delegate, your specific requirements and business policies, budget, and engagement timeframe. - Shortlist experts
Look for HR outsourcing providers with sector-specific knowledge, ask for client references in your industry, and review case studies showing measurable results. - Evaluate provider credentials
Assess client and employee reviews, list of awards and recognitions, and necessary certifications to confirm the company’s reliability and credibility. - Send a request for proposal (RFP)
Provide your top candidates with a detailed project brief together with your budget and time constraints, so they can work within your requirements. - Schedule an interview
Meet the team working with you, and ask about compliance, security, and scalability. Prioritize those who can expand with you without requiring a complete platform change. - Choose your provider
Take time to compare at least three providers, examining their technology platforms, service level agreements, and pricing models before committing.
Need help finding an HR outsource provider for your business? Visit our Marketplace and tell us what you need. We'll curate a list of the top companies for free!
What should I prepare before contacting an HR outsourcing provider?
Start with your current employee headcount and projected growth over the next 12-24 months.
Document all locations where you have employees, because each state or country adds compliance complexity that affects pricing.
Gather your existing payroll structure, including pay frequencies, overtime policies, and any special compensation arrangements like commissions or bonuses.
List your current benefits offerings and note whether you want the provider to source new plans or administer existing ones.
Compile your compliance requirements. Are you subject to industry-specific regulations? Do you have government contracts requiring certain HR practices? Have you faced any compliance issues or audits recently? Understanding your risk profile helps providers recommend appropriate service levels.
Finally, establish your budget expectations and decision timeline. Providers appreciate knowing whether you're exploring options or ready to move quickly.
According to a 2025 Paychex study, 64% of companies spend 570 hours annually on HR administration, so quantify your own time investment to understand your potential ROI from outsourcing.
When does HR outsourcing make more sense than building an in-house HR team?
While both HR outsourcing and building an in-house team bring their own advantages, the decision will depend on your specific business needs.
According to Deloitte's Global Outsourcing Survey, these are the top reasons why businesses are outsourcing functions, including HR:
- Improved access to talent: 42%
- Spend optimization: 34%
- Improved quality/performance: 33%
- Adoption of global delivery model: 33%
- Better alignment to business strategy and operating model shifts: 27%
- Need for flexible and scalable talent model: 23%
In other words, HR outsourcing makes more sense when:
- HR operations are detracting you from core business functions
- Building a full-time, in-house HR team is too expensive
- You’re experiencing high employee dissatisfaction and churn rates
- You need specialized expertise
- You need help navigating labor laws and sector-specific regulations, especially for multi-state and international operations
How involved does management need to be when using these types of services?
Outsourcing HR doesn't mean eliminating internal people management, but it means redirecting your focus from administration to strategy.
Your leadership team remains responsible for organizational culture, performance expectations, hiring decisions, and employee development priorities.
The HR outsourcing provider handles execution, compliance, and day-to-day administration.
Expect regular check-ins with your provider. Most start with weekly or biweekly touchpoints during the first few months, transitioning to monthly reviews once processes stabilize.
You'll approve payroll runs, review compliance reports, and make final decisions on employee relations matters.
The provider brings expertise and recommendations; you make the calls, ensuring that everything aligns with your company's values and goals.
How do I measure whether HR outsourcing is delivering value?
To measure if the HR outsourcing company is delivering value to your business, start by defining your expectations and service level agreement (SLAs).
This includes your measurable business objectives, performance metrics, and current benchmarks.
Here are some of the most common HR outsourcing benchmarks to consider:
- Time to complete: Average time it takes for the provider to complete a task, such as filling in a position or processing payroll
- Employee satisfaction: Assesses how employees feel about HR services and can be tracked via turnover rates, exit interview feedback, and employee surveys
- Payroll accuracy rate: Monitors the percentage of error-free payroll transactions filed by the provider and determines their reliability
- Administrative time savings: Calculates the time previously spent on HR functions that are now being outsourced
- Cost savings: Measures the amount of money saved by outsourcing HR functions
Small companies with 25 employees and a monthly HRO cost of $120-$200 can expect an average return on investment (ROI) of 150%.
Mid-sized businesses with around 100 employees and a monthly HRO of $430-$500, on the other hand, can experience an ROI of 175%.
For large enterprises with over 500 employees and an HRO of $2,000-$3,000 per month, the average ROI is 191%.
Sources
DesignRush sustains a directory of over 40,000 agencies categorized by service category, location, expertise, and reviews. We build our database in two ways:
- Our dedicated team of agency experts actively searches the web for top-performing companies. We then pull information from their websites, online presence, and client testimonials to verify their status and qualifications prior to listing.
- The agencies listed get notified of their profiles on the website and they can choose to claim it or not, which suggests their availability for more collaborations.
Agencies can also reach out to DesignRush and must go through the verification process prior to being listed.
Why companies trust DesignRush
Every agency is independently vetted before it can be listed or ranked
4.8
4.8Some agencies pay for sponsored placement, clearly labeled and held to the same vetting standards.
Frequently Asked Questions About HR Outsourcing Services
What services do most of these companies typically offer?
They typically provide a comprehensive menu of services covering the full employee lifecycle.
According to industry research, these are the most frequently outsourced HR services:
- Payroll outsourcing (70%): Processing employee salaries and ensuring that they comply with contract agreements, labor laws, and tax regulations.
- Recruitment process outsourcing (RPO) (28%): Sourcing, screening, interviewing, and onboarding talent required by an organization.
- Multi-process HRO (26%): Delegating multiple HR operations to a single third-party provider, such as payroll processing, onboarding and training, and compliance.
- Benefits administration (18%): Managing an organization’s benefits programs for employees, such as health insurance, paid time off, and retirement plans.
- Learning services (14%): Overseeing an organization’s training and development programs, helping employees upskill or reskill.
Beyond these core offerings, these companies also cover performance management, time and attendance tracking, and compliance management.
How much does HR outsourcing cost?
HR outsourcing costs start at $50-$200 per employee per month and can go beyond $1,500 per employee per month. The final rate will depend on the type of HR sourcing service, engagement model, company size and structure, industry, and compliance requirements.
Here’s a pricing breakdown per service type:
- Payroll processing: Base fee of $150-$350 per month for a company with under 20 employees
- Compliance management: $500-$5,000 per month, depending on scope and requirements
- Employer record services (EOR): $200-$1,500 per month per employee
- Training and development: $50-$300 per employee per module, and can be exclusive of trainer compensation, event space, and training materials.
- Recruitment and talent acquisition: 15%-30% of the talent’s first-year salary or $5,000-$20,000+ per month, with more premium rates for more specialized or niche expertise
What is the difference between HR outsourcing and a PEO?
While both HR outsourcing companies and PEOs (professional employer organizations) help organizations hire and manage their employees, they have different functions.
Mainly, an HRO serves as an external vendor, while a PEO operates through a co-employment model. Below are more details:
| HR Outsourcing | PEO | |
| Function | Third-party vendor | Co-employer |
| Legal Liability | Client | Shares responsibility with the client |
| Services | Provides the service as needed | Controls the entire HR operations |
| Payroll, taxes, and filings | Provider handles the service, but the client remains the employer | Provider is the co-employer and administers the entire process |
| Benefits |
|
|
What questions should I ask before hiring?
Ask these questions before hiring an HR outsourcing company:
Relevant Background
- What HR functions do you cover, and what is your expertise?
- Can you provide case studies or references for companies similar to our business size, industry, and complexity?
- What is your compliance coverage per state and per country?
Services and Processes
- Can you walk me through your end-to-end processes (e.g., onboarding, payroll cycles, offboarding)?
- What HR tools and technologies do you use, and can you integrate them with my IT ecosystem?
- What is your security and data governance approach, and what are your disaster recovery commitments?
Related to Your Project
- What administrative effort is required from our team weekly/monthly?
- Can you scale services as we grow (new states/countries, headcount, acquisitions), and what changes in pricing or support model?
- What SLAs do you commit to, and who will be our day-to-day contact?
What types of businesses usually outsource their HR services?
Industry research found that 57% of companies outsource at least one HR service, proving that all types of businesses can benefit these from these types of services.
However, here are the sectors that have the highest share of HRO contracts:
- Business, financial services, and insurance companies: 22%
- Information technology: 20%
- Healthcare: 18%
- Retail: 15%
- Hospitality: 10%
Latest Trends Related to HR Outsourcing
