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.
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
Ellite Assistant is a professional remote staffing and virtual assistant services company that provides dedicated remote support to businesses. The company helps business owners and teams delegate administrative, customer service, sales, marketing, technical, research, and operational tasks to virtual...
Top Services:
- Business Consulting
- Digital Services
- HR Outsourcing
- Customer Support
- Managed Services
- Show more
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $5/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
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
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
IT Advisors Online (ITAdOn) is a growing team of technology experts who are passionate about helping companies like yours boost their effectiveness. Join ITAdOn today and grow your business. When you succeed, we succeed!...
Top Services:
- IT Services
- Managed Services
- HR Outsourcing
- UI/UX Design
- IT Compliance Solution
- Show more
- Location
- Philadelphia, Pennsylvania
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 1 Project Listed
Ralent is a global business solutions provider specializing in building and scaling high-performing teams for international expansion. We offer end-to-end services, including talent acquisition, onboarding, payroll, compliance, and operational support, tailored to business needs. Unlike traditional...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- San Francisco, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
GoJarvis matches growing businesses with pre-trained virtual assistants who handle operations, sales support, and inbox management — while building custom automations that make your business run faster...
Top Services:
- BPO
- HR Outsourcing
- Customer Support
- Phone Answering Services
- Business Consulting
- Show more
- Location
- Brea, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
Founded in 2020, Oversea Staffing Solutions LLC has emerged as a leading call center staffing agency in the Caribbean, bridging the gap between world-class bilingual talent and forward-thinking businesses...
Top Services:
- BPO
- Call Centers
- Market Research
- Phone Answering Services
- HR Outsourcing
- Show more
- Location
- Lithia Springs, Georgia
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $11/hr
- Minimal Budget
- $1,000 - $10,000
The Peak Hire helps busy founders and growing teams reclaim their time with dependable virtual assistants matched to their actual workflows. Our remote professionals support administration, customer service, sales, recruiting, operations, bookkeeping, CRM management, scheduling, inbox management and lead...
Top Services:
- BPO
- HR Outsourcing
- Phone Answering Services
- Customer Support
- Call Centers
- Show more
- Location
- Miami, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $20/hr
- Minimal Budget
- Under $1,000
From individuals and entrepreneurs, small and medium-sized businesses, right through to large corporations and government bodies, our administrative assistants are helping our clients become more efficient by streamlining their processes...
Top Services:
- Customer Support
- BPO
- Market Research
- Transcription Services
- Translation Services
- Show more
- Location
- New York City, New York
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $24/hr
Techno Exponent (T-Web Exponent Private Limited) is an award-winning leading IT company with a successful track record of working with 1200+ clients & serving 2500+ projects worldwide! We are an MCA-registered (Ministry of Corporate Affairs) ISO 9001:2015 Certified company...
Top Services:
- Software Development
- Mobile App Development
- Blockchain
- AI Development
- HR Outsourcing
- Show more
- Location
- Miami, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $25/hr
- Portfolios Count
- 15 Projects Listed
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
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
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
CoDev helps fast-growing companies scale with reliable, world-class offshore talent.Onboard in 2-3 weeks. Retain talent 2.5x longer than the industry average. Choose from flexible staffing models. Get embedded teams that ramp fast, act with autonomy, and deliver real results...
Top Services:
- Staff Augmentation
- Customer Support
- HR Outsourcing
- Location
- Lehi, Utah
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
Blue Carrot is a top-rated studio specializing in full-cycle video production for marketing and e-learning...
Top Services:
- Video Production
- Graphic Design
- Video Marketing
- Creative Services
- Design Services
- Show more
- Location
- Denver, Colorado
- Number of Employees
- Under 49
- Average Hourly Rate
- $30/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 19 Projects Listed
Xonest is the global IT Consulting company that stands for progress. We at Xonest provides you the best IT solutions which includes everything from re-designing your website, to custom develop your web app, to all eCommerce solutions, to native and hybrid mobile applications to social media marketing, to...
Top Services:
- Web Development
- eCommerce Development
- Mobile App Development
- Software Development
- Web Design
- Show more
- Location
- Round Rock, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $30/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 15 Projects Listed
Verticalsols is a high-end software innovation and IT firm dedicated to helping modern enterprises stay ahead of the competition. Leveraging over a decade of deep industry expertise, design proficiency, and product development experience, we excel at utilizing AI and cutting-edge tech stacks to build agile...
Top Services:
- Digital Services
- Graphic Design
- Video Production
- Digital Strategy
- eCommerce Development
- Show more
- Location
- Pinedale, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $30/hr
- Minimal Budget
- $1,000 - $10,000
An IT staffing company providing custom HR solutions to help businesses hire tech talent efficiently, build high-performing teams, and scale with confidence...
Top Services:
- Staff Augmentation
- HR Outsourcing
- IT Services
- Location
- Wilmington, Delaware
- Number of Employees
- Under 49
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 2 Projects Listed
Elite Virtual Employee (EVE Hire LLC) is a Global Remote Staffing Company Offering IT Staffing, Web & app development, digital marketing, payroll and vendor management services...
Top Services:
- HR Outsourcing
- Staff Augmentation
- IT Services
- Cybersecurity
- Managed Services
- Show more
- Location
- Wilmington, Delaware
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
We're a leading IT custom software firm with 30 years of experience in LATAM. Our elite 10% developer team delivers top-notch quality, speed, and affordability, as proven by clients like Motorola, Intel, IBM, and Oracle. We offer Software Dedicated Teams and Staff Augmentation to boost your project...
Top Services:
- Software Development
- Staff Augmentation
- Software Testing
- IT Services
- HR Outsourcing
- Show more
- Location
- Atlanta, Georgia
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $40/hr
- Minimal Budget
- $50,000 & Up
Eightfold AI empowers organizations to recruit efficiently, retain top talent, and upskill/reskill their workforce. Operating in 155+ countries and 24 languages, our platform leverages advanced analytics to drive diversity and transform talent into a strategic advantage...
Top Services:
- HR Outsourcing
- AI Development
- Location
- Santa Clara, California
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $40/hr
We produce dependable technology solutions while emphasizing team growth, continual innovation, and a sense of belonging. We offer value to your organization by creating new customer experiences without losing sight of the client. With the assistance of our team of professionals, we foster innovation by...
Top Services:
- Mobile App Development
- Software Development
- UI/UX Design
- HR Outsourcing
- IT Services
- Show more
- Location
- Fort Walton Beach, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $45/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 6 Projects Listed
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
Were a global recruitment and staffing partner dedicated to finding, hiring, and managing tech & creative talent...
Top Services:
- HR Outsourcing
- Location
- Sheridan, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
BorderlessMind is a premier remote IT talent provider that helps tech companies hire offshore, nearshore, and onshore remote-talent from across the globe. We have the best-in-class hiring process and help build high-quality teams with a remote global talent for our clients...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 1 Project Listed
Your trusted IT training and IT partner for 19 years, BetterWorld Technology gives you a competitive advantage in the ever-evolving digital world.Dedicated to your long-term success, our cloud solutions, managed services, SaaS, cybersecurity and virtual CIO are customized to meet your needs...
Top Services:
- Staff Augmentation
- IT Services
- Managed Services
- Cybersecurity
- HR Outsourcing
- Show more
- Location
- Reston, Virginia
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
Our Yourshore model is intentionally designed to give you the very best remote engineering solution that solves for all the usual pain points that plague traditional offshore vendors...
Top Services:
- Software Development
- HR Outsourcing
- Location
- Menlo Park, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
Mysoft Heaven (BD) Ltd. is a Top Software Development Company with 15+ years of excellence. We specialize in enterprise-grade solutions like ERP, FinTech, e-Governance, and HRMS (HR Sheba). Our scalable SaaS platforms and Cyber Security solutions empower global organizations...
Top Services:
- Web Development
- Digital Marketing
- Mobile App Development
- Software Development
- Staff Augmentation
- Show more
- Location
- Miami, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
Gravitas partners with businesses of every size to align people, processes, and purpose. We offer four core service lines: Human Resources (handbooks, policy, recruiting, HR retainer support), Business Management, Marketing & PR, and Training & Compliance (sexual harassment prevention, HIPAA, OSHA, Title IX...
Top Services:
- HR Outsourcing
- Business Consulting
- Branding
- Public Relations
- Reputation Management
- Show more
- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- Under $1,000
Edvenity is an all-in-one AI recruiting platform that helps hiring teams screen candidates, conduct AI interviews, run assessments, and manage the entire hiring process in one system...
Top Services:
- HR Outsourcing
- AI Development
- Location
- San Francisco, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- Under $1,000
ExpertHiring connects businesses with qualified professionals for specialized and hard-to-fill positions. Our recruiters focus on understanding each companys hiring needs and identifying candidates with the right skills and experience...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Bridgewater, New Jersey
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
The BANKW Staffing family of companies are locally owned, full-service staffing and recruiting agencies that help employers find custom solutions to their employment needs and match job seekers with positions that meet their individual career goals and qualifications...
Top Services:
- HR Outsourcing
- Location
- Bedford, New Hampshire
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $58/hr
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
The HR Innovator Group helps businesses transform their peopler operations with customized HR support, compliance expertise, and HR technology optimization, building scalable systems that drive growth and culture...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- San Diego, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $85/hr
- Minimal Budget
- $1,000 - $10,000
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
Newton Workforce is a multidisciplinary workforce and outsourcing company based in Lebanon, providing integrated business support solutions across Lebanon and the region. We assist startups, SMEs, multinational corporations, NGOs, and investors with Employer of Record (EOR), payroll management, HR...
Top Services:
- BPO
- HR Outsourcing
- Call Centers
- Customer Support
- Translation Services
- Show more
- Location
- Lebanon, Oregon
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
Leon Consulting is a private talent agency for tech professionals. We represent experienced software engineers, share real salary data, connect you with hiring managers, and negotiate higher offers. 100% confidential. Free for candidates...
Top Services:
- HR Outsourcing
- Location
- Sheridan, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $120/hr
- Minimal Budget
- $10,000 - $25,000
Thela Thatch Consulting offers comprehensive human resource and benefit solutions, catering to all stages from hiring to retirement. Our expertise lies in equipping organizations with the necessary tools to progress, as we adeptly bridge gaps in human resource best practices...
Top Services:
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $150/hr
- Minimal Budget
- $1,000 - $10,000
Effectiveness helps organizations unlock the potential of their people. By predicting employee effectiveness and turning insights into action, we build stronger teams and sustainable growth with precise skills diagnostics that support recruitment, onboarding and leadership development...
Top Services:
- HR Outsourcing
- Location
- Youngstown, Ohio
- Number of Employees
- Under 49
- Average Hourly Rate
- $150/hr
- Minimal Budget
- $1,000 - $10,000
EvolveUp is an Austin-based consulting firm specializing in workforce optimization for people-centric businesses. The company combines strategic consulting with hands-on HR technology implementation to help organizations improve efficiency, reduce costs, and align their workforce with business goals...
Top Services:
- HR Outsourcing
- Customer Support
- Business Consulting
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $1,000 - $10,000
At the senior level, marketing leadership isnt about filling a seatits about securing the right partner to drive future growth. We focus exclusively on senior-level growth marketing executive search, finding leaders who not only shape strategy but tie it directly to revenue and long-term value. For CEOs...
Top Services:
- HR Outsourcing
- Location
- Westwood, Massachusetts
- Number of Employees
- Under 49
- Average Hourly Rate
- $400/hr
- Minimal Budget
- $25,000 - $50,000
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
