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.
United States ×
JBC Team is a distinguished provider of comprehensive HR and talent solutions, dedicated to redefining the landscape of human resources. Committed to excellence, we offer a wide spectrum of recruiting services tailored to diverse industries...
Top Services:
- HR Outsourcing
- Location
- New York, Missouri
- Number of Employees
- 100 - 249
- Portfolios Count
- 3 Projects Listed
GSi (Global Systems, Inc.) is a distinguished provider of comprehensive IT solutions and recruiting services, dedicated to empowering businesses through innovative technology. With a steadfast commitment to excellence, we offer a wide range of services tailored to diverse industries...
Top Services:
- HR Outsourcing
- Location
- Tampa, Florida
- Number of Employees
- 50 - 99
- Portfolios Count
- 3 Projects Listed
Career Group Companies is a premier creative staffing recruiting firm with a legacy of over 40 years. With offices in LA, NYC, San Francisco, Miami, Dallas, and Greenwich, we specialize in career matchmaking for administrative, creative, fashion, events, and executive professionals...
Top Services:
- HR Outsourcing
- Location
- Los Angeles, California
- Number of Employees
- 100 - 249
- 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
For over 30 years, The Custom Group of Companies has led the creative staffing recruitment industry in New York. We specialize in providing tailored staffing solutions, from temporary/consulting to direct hire and executive search services. Our priority is building long-term relationships with dynamic...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Portfolios Count
- 3 Projects Listed
CBR International is a distinguished PEO and consulting firm, committed to providing comprehensive solutions that empower businesses to succeed in the global market. With an unwavering commitment to excellence, we offer a wide array of services tailored to diverse industries...
Top Services:
- HR Outsourcing
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
- Portfolios Count
- 3 Projects Listed
AxcessHr is a leading PEO and human resources outsourcing firm, committed to providing comprehensive HR solutions that empower businesses to thrive...
Top Services:
- HR Outsourcing
- Location
- Overland Park, Kansas
- Number of Employees
- Under 49
- Portfolios Count
- 3 Projects Listed
NetPEO is a distinguished professional employer organization (PEO) committed to simplifying human resources and enhancing business operations. With an unwavering commitment to excellence, we offer a comprehensive suite of services tailored to diverse industries...
Top Services:
- HR Outsourcing
- Location
- Duluth, Georgia
- 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
Total Quality Call Center is a One-stop Shop for all of your business needs. We are known for quality services with highest level of professionalism. Our Team is up for every job, managing different projects as we provide affordable business registration, business planning, CRM or Software setups and...
Top Services:
- Business Consulting
- Branding
- Logo Design
- BPO
- HR Outsourcing
- Show more
- Location
- Sioux Falls, South Dakota
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $8/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 15 Projects Listed
#1 Fast-Growing Product Development Company in the World...
Top Services:
- Software Development
- Mobile App Development
- Blockchain
- Web Development
- eCommerce Development
- Show more
- Location
- Austin, Texas
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $40/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 11 Projects Listed
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
As the largest, national staffing agency specializing exclusively in high-end, niche IT, tech, and digital marketing talent, staffing is more than just our job. Its our passion. For nearly two decades, we've changed how to approach hiring needs for contract, contract-to-hire, and full-time tech and digital...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
Communispond is the global leader in communication skills training programs for corporations and individuals...
Top Services:
- HR Outsourcing
- Location
- Fort Lauderdale, Florida
- Number of Employees
- Under 49
More Staffing helps mid-market U.S. companies hire proven Filipino professionals for much less than a local hire. Fit before speed, transparent fees, and support with no end date...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Minimal Budget
- $10,000 - $25,000
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
With nearly 200 clients, we offer comprehensive HR services, infrastructure, and expertise. Our focus is to empower businesses of all sizes, allowing leaders to prioritize strategic growth. From payroll and benefits administration to employee relations and recruitment, we handle it all. Recognized for...
Top Services:
- HR Outsourcing
- Location
- Chicago, Illinois
- Number of Employees
- 100 - 249
- Minimal Budget
- Under $1,000
- Portfolios Count
- 2 Projects Listed
Take the Stress Out of HR Outsourcing (HRO) Solutions. Boost efficiency, control costs, and keep employees engaged with Human Resource Outsourcing Solutions customized to meet your requirements. We take care of Payroll, Benefits Admin and General HR Admin so you can focus on tactics and strategy...
Top Services:
- HR Outsourcing
- Location
- St. Petersburg, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Portfolios Count
- 2 Projects Listed
KMA Human Resources Consulting has been providing businesses in New England with trusted HR support since 2007. Our experienced team offers a customized approach to fit your specific needs, timeline, and budget...
Top Services:
- HR Outsourcing
- Location
- Falmouth, Maine
- Number of Employees
- 50 - 99
- Portfolios Count
- 2 Projects Listed
Global PEO Services is a premier Professional Employer Organization (PEO) committed to simplifying international business expansion through comprehensive global employment solutions...
Top Services:
- HR Outsourcing
- Location
- Salt Lake City, Utah
- Number of Employees
- Under 49
- Portfolios Count
- 2 Projects Listed
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
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
ALLSTARSIT is an international outstaffing service provider that helps businesses recruit, pay, insure, and support top global talent with payroll, benefits, and more...
Top Services:
- HR Outsourcing
- BPO
- Customer Support
- Staff Augmentation
- Managed Services
- Show more
- Location
- San Francisco, California
- Number of Employees
- 1000 & Up
Dalerio Consulting is an international Customer Support, Marketing and Business Process Outsourcing company with rapid growth and steady foundation...
Top Services:
- Customer Support
- HR Outsourcing
- BPO
- Call Centers
- Phone Answering Services
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 9 Projects Listed
It is our purpose to take employees and leaders by the hand and guide them along the complex path of professional success, inspiring them with courage, confidence and care so they can conquer their boldest career dreams with passion and purpose...
Top Services:
- HR Outsourcing
- Location
- Schenectady, New York
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
SevenStar HR's shared HR services deliver a growth strategy, protecting your organization and optimizing your most valuable asset - your people. No matter what your company size, we have a program to meet your needs. You'll only pay when we're on the job - working hard to find you the best talent, helping...
Top Services:
- HR Outsourcing
- Location
- Port Jefferson, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $145/hr
- Minimal Budget
- Under $1,000
Today, RPC has grown into a company that provides employers with risk management guidance and expertise through effective leadership, HR, and Employee Relations consulting and training programs as well as assistance with HR investigations. RPC’s services also include providing organizations with neutral...
Top Services:
- HR Outsourcing
- Location
- DeLand, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $275/hr
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
h2 Recruit is a specialist Sales Recruitment agency with offices in London and New York...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
Cruzader is a discreet professional search partner trusted by founders and decision-makers to deliver high-impact talent with precision and care. We operate behind the scenes, curating leadership that drives legacy, not just headcount...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $125/hr
- Minimal Budget
- $50,000 & Up
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
Nexus is a US recruiting firm that finds, tests and places Latin American professionals with American companies. Engineers, designers, finance and operations talent who work your hours, cost 50-70% less than a local hire, and usually start within about three weeks...
Top Services:
- HR Outsourcing
- Location
- San Mateo, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $30/hr
- Minimal Budget
- $1,000 - $10,000
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
PSG Global Solutions stands as a leading provider of end-to-end recruiting talent acquisition and workforce management solutions, dedicated to shaping the future of global workforce dynamics...
Top Services:
- HR Outsourcing
- Location
- Marina del Rey, California
- Number of Employees
- 1000 & Up
- Portfolios Count
- 1 Project Listed
TemPositions is a premier staffing and workforce solutions company, dedicated to connecting businesses with top-tier talent since its inception...
Top Services:
- HR Outsourcing
- Location
- New York City, New York
- Number of Employees
- 100 - 249
- Portfolios Count
- 1 Project Listed
Onward Search is a specialized workforce solutions provider dedicated to creative, marketing, technology, and gaming talent. We are renowned for empowering creative excellence, brand engagement, and digital innovation by helping leading companies accelerate projects, build teams, and connect with remarkable...
Top Services:
- HR Outsourcing
- Location
- Norwalk, Connecticut
- Number of Employees
- 100 - 249
- 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
Lana Talent is a Miami-based recruitment agency specializing in connecting U.S. companies with highly skilled professionals from Latin America. By leveraging a network of over 100 recruiters, Lana Talent offers services like Talent Augmentation and Talent Delivery, focusing on cultural fit and cost-effective...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Miami, Florida
- Number of Employees
- Under 49
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
On a mission to ensure the most satisfying outsourcing experience ever for our valuable clients by providing qualified remote professionals...
Top Services:
- HR Outsourcing
- Call Centers
- Location
- New York City, New York
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $14/hr
- Minimal Budget
- $1,000 - $10,000
Assistring LLC is a customer-focused BPO partner that helps businesses scale through reliable, high-quality customer support and operational services. We combine skilled teams, efficient processes, and flexible delivery models to provide exceptional value, seamless customer experiences, and consistent...
Top Services:
- Call Centers
- Email Marketing
- Digital Marketing
- BPO
- IT Services
- Show more
- Location
- Stratham, New Hampshire
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $7/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 10 Projects Listed
BrainGain Recruiting is a leading recruiting and talent acquisition firm, dedicated to providing exceptional staffing solutions across diverse industries. Committed to excellence, we offer a comprehensive range of services tailored to meet the unique needs of our clients...
Top Services:
- HR Outsourcing
- Location
- Palo Alto, California
- Number of Employees
- Under 49
Kelly Education® is the leader and most experienced provider of substitute teachers nationwide. We are a full service, cost savings solution for all your educational staffing and placement needs ... and so much more. We can even help with the management and placement of your non-educational staff such as...
Top Services:
- HR Outsourcing
- Location
- Troy, Michigan
- Number of Employees
- 1000 & Up
SHC connects healthcare and school professionals with fulfilling opportunities across hospitals, schools, home health, and correctional facilities nationwide. With a commitment to service and care, we support clinicians, clients, and corporate teams to make a meaningful impact where it matters most...
Top Services:
- HR Outsourcing
- Location
- Park City, Utah
- Number of Employees
- 500 - 999
Founded in 1992, Tradesmen International is North America’s premier resource for proven skilled craftsmen and labor consulting services. We are proud of our thousands of craft professionals, covering all trades, who serve the industry’s leading contractors while emphasizing Safety, Productivity and...
Top Services:
- HR Outsourcing
- Location
- Macedonia, Ohio
- Number of Employees
- 1000 & Up
Whether you’ve been a traveling healthcare professional for years or you’re just starting out, we understand the challenges life on the road can bring. Our team has the most experience in the industry and we use it to make sure our travelers have a smooth, headache-free experience each and every time...
Top Services:
- HR Outsourcing
- Location
- Little Rock, Arkansas
- Number of Employees
- 250 - 499
Barbachano International (BIP) is the premier Executive Search and leadership advisory firm in the Americas with a focus on diversity and multicultural target markets. Since 1992, BIP and its affiliates have served over 50% of Fortune 500 Companies...
Top Services:
- HR Outsourcing
- Location
- Chula Vista, California
- Number of Employees
- Under 49
Seasoned C-Suite and Business Unit leaders around the world work with our Managing Principal & Co-Founder Ron Bates to conquer unique challenges that drive aggressive business outcomes in highly competitive industries...
Top Services:
- HR Outsourcing
- Location
- Sunnyvale, California
- Number of Employees
- Under 49
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
