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.
As a Global Employer Of Record (GEOR), we strive to provide organizations that hire globally with efficient solutions for staffing, staff augmentation, workforce management, payroll and more. With more than a decade in software development, we have developed a blend of technical and recruitment expertise that...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Managed Services
- Software Development
- Show more
- Location
- Alexandria, Virginia
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $55/hr
- Portfolios Count
- 8 Projects Listed
Remofirst was founded in 2021, remote-first since the very beginning. Our mission is to simplify the way companies build remote teams. We believe in people, excellence, and delivery. Our pricing starts at $199/month...
Top Services:
- HR Outsourcing
- Customer Support
- Location
- San Francisco, California
- Number of Employees
- 50 - 99
- Minimal Budget
- Under $1,000
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
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
Blue Signal is a distinguished executive search and recruiting firm, dedicated to delivering top-tier talent acquisition solutions across various industries. Committed to excellence, we offer a comprehensive suite of services tailored to meet the unique needs of our clients...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $10,000 - $25,000
Gitmax is a global, AI-powered recruiting and staffing company dedicated to connecting the right talent with the right opportunities. By combining advanced artificial intelligence with human expertise, we help organizations build high-performing, high impact teams efficiently and responsibly...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Software Development
- Location
- Boca Raton, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $65/hr
- Portfolios Count
- 8 Projects Listed
We help your tech-savvy company find and hire software developers in South America, specially in Colombia, through a bold model that achieves long-term engagements with local legal contracts and benefits. Our unique model maximizes developers salaries without increasing the hiring-company end cost. Our...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 6 Projects Listed
Over 10 years of experience. 50+ experts, 100+ 5-star Google reviews. Brands like Volvo and KPMG trust us to grow across borders with multilingual marketing that works. We can help your business do the same. Ready to scale? Let's talk...
Top Services:
- Digital Services
- PPC
- SEO
- Branding
- Digital Marketing
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $130/hr
- Portfolios Count
- 8 Projects Listed
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
DNA325 specializes in connecting US & EU companies with top-tier European IT talent through 9+ years of proven recruitment expertise. We help businesses hire mid-level+ and executive professionals for long-term partnerships.Our services include full-cycle recruitment, recruitment process outsourcin...
Top Services:
- HR Outsourcing
- Software Development
- Digital Marketing
- Staff Augmentation
- Show more
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
PCR Staffing is a recruiting agency that provides companies in across the nation with timely top talent and custom staffing strategies through four specialized hiring models: Direct Hire, Contract, Contract to Hire, Statement of Work.We have a trusted track record as a recruiting partner that delivers...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Charlotte, North Carolina
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $80/hr
- Minimal Budget
- $10,000 - $25,000
At Zuswork, our recruitment experts are dedicated to connecting qualified talent with incredible employers. We believe connection is key to success and growth for everyone involved, employees and employers...
Top Services:
- HR Outsourcing
- Location
- Pleasanton, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
Our IT recruiting agency, ITExpert, specializes in finding highly skilled IT specialists all over the world. This way, you can save time and focus on business development instead of searching for employees and micromanaging...
Top Services:
- Staff Augmentation
- IT Services
- HR Outsourcing
- Location
- San Francisco, California
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $40/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
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
EchoGlobal Tech specializes in delivering exceptional remote engineering talent aligned with your company's values and cultural ethos. Always quality over quantity!...
Top Services:
- Staff Augmentation
- Software Development
- Mobile App Development
- IT Services
- Cloud Consulting
- Show more
- Location
- Wilmington, Delaware
- Number of Employees
- Under 49
- Average Hourly Rate
- $40/hr
- Portfolios Count
- 9 Projects Listed
Our USA-based Medical Billing Company streamlines billing operations for healthcare providers, ensuring increased revenue, reduced costs, and minimized risk. From small practices to large hospitals, we handle denials management, credentialing, coding, and payer verification with expert precision...
Top Services:
- BPO
- HR Outsourcing
- Call Centers
- Accounting
- Show more
- Location
- Evesham, New Jersey
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $20/hr
- Portfolios Count
- 3 Projects Listed
CRA is your go-to partner for transformative IT and Cloud Consulting. As an award-winning provider since 1992, we offer tailored solutions in managed IT, cloud storage, cybersecurity, and more. We specialize in optimizing productivity and driving profitability for various sectors, including law firms and...
Top Services:
- IT Services
- Managed Services
- Cloud Consulting
- Cybersecurity
- HR Outsourcing
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $18/hr
- Portfolios Count
- 5 Projects Listed
Lyneer Staffing Solutions stands as a leading provider of innovative workforce solutions, committed to reshaping industries. With a focus on excellence, we deliver a comprehensive suite of services designed to address diverse staffing needs...
Top Services:
- HR Outsourcing
- Location
- Ewing Township, New Jersey
- Number of Employees
- 250 - 499
- Portfolios Count
- 3 Projects Listed
With over 20 years of experience, Search Solution Group is a nationally recognized recruitment, staffing, and executive search firm. We provide industry-specific external recruiters to source top talent for businesses. Our award-winning process and aggressive headhunting approach are guided by our core values...
Top Services:
- HR Outsourcing
- Location
- Charlotte, North Carolina
- Number of Employees
- 100 - 249
- Portfolios Count
- 3 Projects Listed
ExtensisHR is a leading PEO committed to delivering comprehensive HR solutions that empower businesses to thrive. With an unwavering commitment to excellence, we offer a comprehensive suite of services tailored to diverse industries...
Top Services:
- HR Outsourcing
- Location
- Jersey City, New Jersey
- Number of Employees
- Under 49
- Portfolios Count
- 3 Projects Listed
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
Hire With Near is a staffing and recruiting agency that helps US companies build remote teams in Latin America across all departments. You get one dedicated recruiter who learns your business, sources against your requirements, and stays your point of contact after the hire. We handle sourcing, screening...
Top Services:
- HR Outsourcing
- Staff Augmentation
- BPO
- Location
- San Antonio, Texas
- Number of Employees
- 50 - 99
- Portfolios Count
- 1 Project Listed
We brand businesses and executives so you can attract top talent and hire on demand...
Top Services:
- HR Outsourcing
- Location
- McLean, Virginia
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
At Thriver Consulting Partners, we blend borderless ambition with rock-solid compliance helping you build a global workforce thats transparent, cost-effective, and entirely yours to control. We deliver specialized Employer of Record (EOR) and PEO solutions that empower your business to expand globally...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $10/hr
- Minimal Budget
- Under $1,000
InvoHire is a technology recruitment firm focused on helping high-growth companies hire specialized talent for the AI economy, including AI engineers, machine learning professionals, data engineers, software developers, and engineering leaders. The company combines deep technical recruiting expertise with...
Top Services:
- HR Outsourcing
- Location
- Pembroke Pines, Florida
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $40/hr
- Minimal Budget
- $10,000 - $25,000
GlobiFYE delivers AI-fueled, frugal staffing local and global, from tech to finance, ops to project leads. Slash costs forty to sixty percent with smart methodologies: volume hiring scales teams fast via AI screening; staff augmentation plugs pros seamlessly; retained search bags elites. Contingent options...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Atlanta, Georgia
- Number of Employees
- Under 49
- Average Hourly Rate
- $60/hr
- Minimal Budget
- $1,000 - $10,000
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
We offer comprehensive and scalable HR solutions with unmatched care. Leverage our premium services and technology for administrative relief, reduced liabilities and better benefits. With a nationwide impact and local presence, we drive sustained growth for businesses and make a difference in communities...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Houston, Texas
- Number of Employees
- 1000 & Up
- Portfolios Count
- 3 Projects Listed
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
We enable our clients to deliver revolutionary products. We inspire candidates to realize their dreams. We empower Akrayans to be their best...
Top Services:
- HR Outsourcing
- Location
- Santa Clara, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
A committed team of good people is working round the clock in recreating the world of Staffing and Talent Acquisition industry by providing efficient solutions.Since its birth in 2008, Maven Workforce has made big strides and become a leader in the Staffing and Talent Acquisition industry. From small to...
Top Services:
- HR Outsourcing
- Location
- Jersey City, New Jersey
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
VBeyond Corporation is a Staffing, Search & RPO firm with over 10 years of industry experience. Incorporated in 2006, we are committed to providing the highest level of service in the industry...
Top Services:
- HR Outsourcing
- Location
- Hillsborough Township, New Jersey
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $70/hr
Founded in 2000 with a mission to do things differently, NCW is a team of staffing and professional recruitment specialists that deliver innovative solutions to hiring challenges...
Top Services:
- HR Outsourcing
- Location
- Indianapolis, Indiana
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
Cloudtask is a company that provides business professionals with solutions to their key challenges so they can focus on what matters most - making money! Cloudtasks' experienced consultants identify your current pain points and provide guidance through every step of finding an effective outsourced partner or...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 50 - 99
CrewBloom connects businesses with a network of pre-vetted sales and support professionals. By taking over the time-consuming aspect of sourcing and recruitment, and taking care of HR & Payroll tasks for our outsourced vendors, we help our clients scale faster and outsource effortlessly...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 250 - 499
Luna Data Solutions is a staffing firm headquartered in Austin that specializes in IT staffing and customized project services. With over twelve years of progressive growth in the technical staffing and consulting industry we have come to understand that our success is a direct result of our organizational...
Top Services:
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- Under 49
HireBetter is the award-winning strategic talent partner for entrepreneurial, growth-minded, middle-market companies that need the right solutions to thrive and scale. Recognized by Forbes as one of America's Best Executive Recruiting Firms, HireBetter supports organizational growth and change by developing...
Top Services:
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- Under 49
CRI helps business leaders improve hiring with clear, actionable results about each candidate. CRI pre employment assessments feature a unique, proprietary advantage which puts CRI above all other workplace aptitude tests. The Achiever Assessment™ was the first workplace assessment to combine mental and...
Top Services:
- HR Outsourcing
- Location
- Fort Worth, Texas
- Number of Employees
- Under 49
Employer enthusiasts and jobseeker advocates, we’re passionate about connecting candidates with opportunities. We’re partnered with a national network of professionals with expertise ranging from corporate support to healthcare. We’ve built our business by assessing client needs and pairing them with...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
Empower your organization with comprehensive HR solutions, employee benefits administration, EOR services, streamlined payroll management, and risk mitigation strategies. Our seasoned experts deliver unparalleled client service, leveraging technology and industry insights for your success...
Top Services:
- HR Outsourcing
- Location
- Fort Lauderdale, Florida
- Number of Employees
- 100 - 249
The FrankCrum family of businesses, what we call “A Family of Employer Solutions,” includes three operating companies: FrankCrum Staffing, FrankCrum (a Professional Employer Organization – PEO) and Frank Winston Crum Insurance. It all started with staffing when Frank Crum, Jr. (now CEO of FrankCrum) and...
Top Services:
- HR Outsourcing
- Location
- Clearwater, Florida
- Number of Employees
- Under 49
Extenteam delivers the #1 trusted remote staffing solutions for property management professionals in the short-term rental, multifamily, real estate, and PropTech industries - with up to 60% savings compared to local hiring...
Top Services:
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- 100 - 249
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
- Location
- St. Petersburg, Florida
- Number of Employees
- Under 49
- Minimal Budget
- $10,000 - $25,000
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
What makes AmeriSource HR unique is our customization. We base our involvement on what works for our clients’ HR business needs...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
Our human resources services can be delivered independently or as integrated bundles to give clients the flexibility and expertise they need, when they need it...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
Founded in 1991, Delta Corporate Services is a boutique staffing and recruiting company that has a provenstrength over the past 30 years of providing highly experienced staff specific to client project needs in various industries...
Top Services:
- HR Outsourcing
- Location
- Parsippany-Troy Hills, New Jersey
- Number of Employees
- Under 49
Mindlance is a leading global provider of innovative workforce staffing solutions, dedicated to transforming businesses through cutting-edge services...
Top Services:
- HR Outsourcing
- Location
- Union City, New Jersey
- Number of Employees
- 1000 & Up
Fast Lane is a global IT training and consulting leader, offering services in over 60 countries. With partnerships with top vendors like AWS and Cisco, our expert team delivers customized training and consulting solutions for enterprises of all sizes...
Top Services:
- HR Outsourcing
- Location
- Raleigh , North Carolina
- Number of Employees
- 100 - 249
ProTech Training provides thousands of IT courses ranging from A+ certification to z/OS Mainframe systems, backed by partnerships with top companies like IBM and Cisco. With over 30 years of experience, we've trained thousands globally and worked with 60% of the Fortune 1000...
Top Services:
- HR Outsourcing
- Location
- Pittsburgh, Pennsylvania
- Number of Employees
- 100 - 249
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
