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. 

United States × Software & IT Services ×
  • We Find The Best Candidates

    CHOICEIT provides expert recruitment services designed to make hiring efficient, transparent, and results-drivenhelping your business connect with top talent. Our team has the capacity to source any number of candidates simultaneously, without compromising on quality. We adapt to your workflows and...

    Top Services:

    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    Under 49
  • Your Growth Partner. Your Remote Team. Your Peace of Mind.

    Freelance Latin America is a B2B agency that builds and manages high-performing remote teams from Latin America for U.S. and Canadian companies. We offer a fully managed solutions, including recruitment, onboarding, HR support, IT setup, legal compliance, and ongoing management. Our clients access top-tier...

    Top Services:

    • HR Outsourcing
    Location
    Fort Lauderdale, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $10/hr
    Minimal Budget
    $1,000 - $10,000
  • We Do More Than Just Getting the Job Done.

    Founded in 2010, Transec is a boutique BPO company created for a different kind of outsourcing. While most providers prioritize large teams and high-volume operations, we work with companies that need smaller, yet high-impact offshore teams often including complex or specialized roles...

    Top Services:

    • HR Outsourcing
    Location
    Santa Monica, California
    Number of Employees
    100 - 249
    Average Hourly Rate
    $30/hr
    Minimal Budget
    $1,000 - $10,000
  • Empowering People Enabling Growth

    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
  • Marketing Executive Search

    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
  • Your Partner In Seamless Virtual Staffing

    Since 2021, BackTech has provided businesses with skilled virtual professionals who handle critical back-office operations. From financial reconciliation and reporting to administrative support and daily operational tasks, we deliver pre-vetted talent. We match you with qualified executive assistants, finance...

    Top Services:

    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    100 - 249
    Average Hourly Rate
    $20/hr
    Minimal Budget
    Under $1,000
  • Exclusive Sales Recruiting Since 2003

    Since 2003, Sales Recruiters Chicago has specialized exclusively in sales recruiting, helping employers hire high-performing sales professionals across the manufacturing, industrial, medical, healthcare, software, capital equipment, building materials, business products, consumer goods, and B2B sectors...

    Top Services:

    • HR Outsourcing
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $100/hr
    Minimal Budget
    $10,000 - $25,000
  • Your Bridge to Tech Rockstars

    As a leader in staff augmentation, recruiting, and onboarding, Techunting is a strategic tech partner for world-class companies. Looking to scale your engineering team quickly and without compromising quality? Access to pre-vetted, high-performing talent ready to integrate into your team in 7 days...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Davie, Florida
    Number of Employees
    100 - 249
    Average Hourly Rate
    $70/hr
    Minimal Budget
    $25,000 - $50,000
  • Helping Companies Establish & Expand Their Digital Footprint

    We help clients tackle a variety of business problems, from web design, marketing strategy + execution, to content creation...

    Top Services:

    • Web Design
    • eCommerce Development
    • Digital Marketing
    • SEO
    • Translation Services
    • Show more
    Location
    Huntingdon, Pennsylvania
    Number of Employees
    Under 49
    Average Hourly Rate
    $165/hr
    Minimal Budget
    $1,000 - $10,000
    Portfolios Count
    3 Projects Listed
  • Institutional-Grade Executive Search & Operating Advisory

    Alpha Apex Group is a retained executive search and operating advisory firm serving organizations making high-stakes leadership decisions. We place Presidents, C-suite, and critical operators while aligning the organizational architecture that allows those leaders to perform...

    Top Services:

    • HR Outsourcing
    • AI Development
    • Business Consulting
    • ERP Consulting
    • Show more
    Location
    Denver, Colorado
    Number of Employees
    50 - 99
    Average Hourly Rate
    $150/hr
    Minimal Budget
    $25,000 - $50,000
  • Fastest and Reliable Recruitment Agency in Nigeria, and Georgia (USA)

    Avant Tech is an Innovation driven company operating in the US, Nigeria and the Philippines, We specialize in the recruitment of international across countries and carry our Business Process Outsourcing Services...

    Top Services:

    • BPO
    • IT Services
    • HR Outsourcing
    • Managed Services
    • Mobile App Development
    • Show more
    Location
    Peachtree City, Georgia
    Number of Employees
    50 - 99
    Average Hourly Rate
    $200/hr
    Minimal Budget
    Under $1,000
  • Unlocking Human Potential.

    Welcome to Cornerstone Global HR, your trusted partner for comprehensive HR services. We specialize in delivering tailored solutions to address the unique challenges faced by organizations in talent acquisition, payrolling, employer of record services, onboarding, and more. With our expertise and commitment...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    • BPO
    Location
    The Woodlands, Texas
    Number of Employees
    Under 49
  • Influx

    Verified Verified by the DesignRush team for authenticity and credibility.

    Influx.com are the experts in on-brand 24/7 customer support, since 2013..

    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
  • Hire Offshore Engineers, SDRs & Support Experts

    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
  • We Deliver Workforce Solutions That Drive Success.

    Since 1951, Snelling has set the standard for innovative staffing and recruitment solutions. Our commitment to both client and candidate success is the driving force behind our longevity. By combining our award-winning history with industry-leading technology, the experts at Snelling have what it takes to...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Goose Creek, South Carolina
    Number of Employees
    1000 & Up
  • PROFESSIONAL STAFFING EXPERTS

    IFG specializes in mid to professional-level staffing across industries including medical, accounting and finance, legal, sales, and customer service. Our dedicated focus empowers us to deliver top-notch candidates, along with unparalleled trust, attention, and value...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Phoenix, Arizona
    Number of Employees
    Under 49
  • Let Our Team Help With Your Next Hire!

    Let our team help with your next hire! Matching talent with opportunity...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Redondo Beach, California
    Number of Employees
    Under 49
  • Staffing Solutions

    Artech is the largest Women & Minority owned IT staffing firm in the US, with US$ 800 million annual revenue run rate in 2021 and a footprint across the globe. With nearly three decades of experience, Artech empowers businesses through applied human intelligence and offers a spectrum of services...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Morristown, New Jersey
    Number of Employees
    1000 & Up
  • Flexible HCM Solutions

    SumTotal Systems provides a unified, comprehensive and flexible HCM solution spanning the entire employee lifecycle. The award-winning solution for attracting, retaining, developing and engaging today’s multi-generational workforce is grouped into four HR Suites – Talent Acquisition, Learning Management...

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    Gainesville, Florida
    Number of Employees
    Under 49
  • Empower Your Workforce.

    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
    • Accounting
    Location
    Fort Lauderdale, Florida
    Number of Employees
    100 - 249
  • Act Locally, Expand Globally.

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

    Top Services:

    • HR Outsourcing
    • Accounting
    Location
    St. Petersburg, Florida
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000
  • Doing IT Better

    TekRecruiter is a boutique and deeply specialized technology recruiting firm with thorough technical aptitude and screening processes to connect innovative companies with the top 5% of in-demand technology professionals. We partner well with exciting technology start-ups who are looking to grow and scale...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    Location
    Fort Lauderdale, Florida
    Number of Employees
    Under 49
    Minimal Budget
    $25,000 - $50,000
  • World's Leading Provider Of Fractional And Permanent Inside Sales Talent

    Inside Sales Staff is the world's leading provider of fractional and permanent inside sales talent. Our services are available for inside sales representatives (BDRs, SDRs, AEs) to inside sales executives. Inside Sales Staff can help you hire one person or build an entire inside sales organization...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Chicago, Illinois
    Number of Employees
    50 - 99
    Average Hourly Rate
    $100/hr
  • Trust your buddy to have your back!

    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
  • Transforming Talent Into a Competitive Edge.

    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
  • Recruit With Confidence

    Peterson Technology Partners is an IT staffing and consulting firm with over 28 years of experience, helping companies hire onshore (U.S.-based), nearshore, and offshore software engineers. We provide pre-vetted talent for roles in Java, SAP, cloud, and data engineering, supporting contract...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    Location
    Park Ridge, Illinois
    Number of Employees
    100 - 249
    Average Hourly Rate
    $150/hr
    Minimal Budget
    $1,000 - $10,000
  • We Make Robust Software Solutions To Empower Your Business.

    DiAng Tech delivers scalable business solutions and cloud-powered platforms that help companies grow faster, operate smarter, and reach more customers. We specialize in web and mobile development, custom cloud solutions, and Kubernetes cluster support...

    Top Services:

    • Software Development
    • Web Development
    • Cloud Consulting
    • DevOps Consulting
    • eCommerce Development
    • Show more
    Location
    Dover, Delaware
    Number of Employees
    Under 49
    Average Hourly Rate
    $35/hr
    Minimal Budget
    $1,000 - $10,000
  • We Drive Success - Helping Organizations Improve Their Operations, People, Brand.

    We build a lot of things. Strategies. Brands. Campaigns. Futures. But our ultimate goal is to build something bigger, deeper and more long-term than any transaction or click-through. We work extra hard to build meaningful, lasting relationships - the kind where everyone wins. It's better together...

    Top Services:

    • Branding
    • Web Design
    • Social Media Marketing
    • Digital Marketing
    • Web Development
    • Show more
    Location
    Reston, Virginia
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000
    Portfolios Count
    2 Projects Listed
  • Bringing Bright Ideas to the Table, to Find the Right Solutions Together.

    Oxford Global Resources is an IT training, talent-driven staffing and consulting company with more than 30 offices across North America and Europe. We provide you with the flexibility to scale your workforce in various ways and build a customized solution to meet your objectives. Our services range from...

    Top Services:

    • HR Outsourcing
    • Business Consulting
    • Staff Augmentation
    Location
    Los Angeles, California
    Number of Employees
    500 - 999
  • Where Process Meets Partnership

    Offering IT training, technology, and business solutions. nTech Workforce is an ISO/IEC 20000-1:2018 and MBE certified organization, based in the greater Baltimore/Washington Metro Area...

    Top Services:

    • HR Outsourcing
    • Accounting
    • Staff Augmentation
    Location
    Columbia, Maryland
    Number of Employees
    Under 49
  • The HT Group, hire performance powered by you

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

    Top Services:

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

    We live in an on-demand world where our shopping, groceries and dinner can all arrive where and when we want them. Imagine if talent can be delivered to meet your needs that easily and reliably. Focus GTS connects you with AI and Martech talent in 48 hours or less!...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • IT Services
    Location
    North Miami Beach, Florida
    Number of Employees
    Under 49
    Minimal Budget
    Under $1,000
  • WE MAKE IT WORK FOR YOU!

    LMG Technology Services LLC is a Houston, Texas-based supplier of technology and professional services. In addition to recruitment and staffing services, we also make software and offer support for it. We specialize in custom software programming and development to meet the needs of a wide range of public and...

    Top Services:

    • HR Outsourcing
    • Staff Augmentation
    • Software Development
    Location
    Houston, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $50/hr
  • Houston's Top IT Services Staffing Solutions

    IS&T, based in Houston, TX, is a top-tier IT services staffing firm, offering unmatched IT staffing solutions to meet your specific needs. We also provide Managed IT services, cutting-edge Web and Application Design, and customized Database Development to support your business goals...

    Top Services:

    • IT Services
    • Staff Augmentation
    • Managed Services
    • HR Outsourcing
    • Show more
    Location
    Houston, Texas
    Number of Employees
    Under 49
    Minimal Budget
    $10,000 - $25,000
    Portfolios Count
    5 Projects Listed
  • Largest Global Asian-American Executive Search & HR Consulting Firm in the World

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

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Market Research
    Location
    Ridgefield Park, New Jersey
    Number of Employees
    50 - 99
    Average Hourly Rate
    $200/hr
  • "Your Trusted Service Partner, Across the Nation."

    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
  • Translating Ideas & Research to Market

    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
    • Software Development
    • Mobile App Development
    • IoT
    • IT Services
    • 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
  • Exceptional Outsourcing Solutions

    Everise offers enterprises the solutions and technology they need to rapidly scale their brands across markets, and to evolve their offering through the product or service lifecycle. Some of the world’s most loved brands have products and services that are tested, protected, supported and sold by Everise...

    Top Services:

    • BPO
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    1000 & Up
    Average Hourly Rate
    $100/hr
  • HR & Staffing Solutions

    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:

    • Accounting
    • HR Outsourcing
    Location
    Miami, Florida
    Number of Employees
    Under 49
  • Human Capital Management Talent Management Solutions Data Driven Insights

    Prestige Development Group (PDG) specializes in human capital management, talent optimization, and contingent workforce solutions. With services spanning recruitment, performance management, contingent staffing, and employee engagement, PDG helps organizationsincluding private, state, and federal...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Sacramento, California
    Number of Employees
    Under 49
    Average Hourly Rate
    $88/hr
    Minimal Budget
    $1,000 - $10,000
  • Learning Is A Lifelong Journey

    LearnQuest, with over 25 years of expertise, is a global leader in IT and business skills training. We offer award-winning classroom, online, and self-paced training across a wide range of IT subjects. Our strategic alliances with organizations like Microsoft and Google underscore our industry-leading...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    100 - 249
  • Develop your business with our top outstaffing platform.

    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
  • Howdy helps US top tech companies hire and retain software developers in LATAM.

    Howdy helps U.S. companies scale their engineering teams by hiring, retaining, and supporting the top 1% of tech talent in Latin America. With a white-glove, fully managed approach, Howdy delivers vetted engineers, in-country infrastructure, and a 98% retention ratefaster and more affordably than traditional...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    100 - 249
  • Hire top LATAM marketing talent

    Hypeify helps startups and high-growth companies scale marketing teams affordably by sourcing top-tier marketing talent from Latin America. We connect you with vetted marketing specialists in social media, paid ads, email, content, design, video, web, and analytics. With flexible plans, full onboarding...

    Top Services:

    • BPO
    • HR Outsourcing
    Location
    Palm Springs, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $15/hr
    Minimal Budget
    $1,000 - $10,000
  • Curated Introductions To Pakistans Top 1% Off-Market Talent

    Access Pakistans top 1% off-market professionals through curated introductions. No candidate volume, just 1-2 senior professionals ready to contribute from day one, without ongoing agency margins...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Cambridge, Massachusetts
    Number of Employees
    Under 49
    Average Hourly Rate
    $30/hr
  • Create Value Build Partnerships Accelerate Growth Inspire Change

    We combine our deep local knowledge with a comprehensive understanding of national trends, industry dynamics, and cutting-edge technology to connect partners with top-tier talent...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Rochester, New York
    Number of Employees
    100 - 249
  • Great Talent, Better Results

    Fast Dolphin is an international IT and Engineering staffing firm that helps US companies build nearshore technology and engineering teams across Latin America. We provide bilingual consultants, fast response times, and flexible staffing models that support temporary roles, long-term projects, and full team...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Davie, Florida
    Number of Employees
    50 - 99
    Minimal Budget
    $1,000 - $10,000
  • Technology expertise, Innovative solutions and long lasting partnership with customers

    Established in the year 2006, eLan Technologies has grown to be the preferred IT partner for the big players in the industry across various industry verticals. eLan has partnered with some of the esteemed clients, helping them meet the new challenges of IT innovations...

    Top Services:

    • IT Services
    • HR Outsourcing
    • Business Consulting
    Location
    Irving, Texas
    Number of Employees
    100 - 249
  • Modern Accounting Built To Grow Your Business

    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

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
  • Higher flexibility and customization 
  • Client keeps full control
  • Fewer risks, as PEO shares the liability
  • All-in-one HR function, no need to search for different providers 

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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

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