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 ×
Welcome to HealthRescue Partners. We specialize in empowering healthcare startups and small practices to thrive amidst the complexities of the modern medical industry. Understanding the critical issues new healthcare businesses face, such as regulatory compliance, patient acquisition, financial management...
Top Services:
- HR Outsourcing
- Social Media Marketing
- Digital Marketing
- Web Design
- Show more
- Location
- Albuquerque, New Mexico
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $8/hr
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
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
IT3TEK is an IT solutions company that offers a comprehensive range of services. Outsourced IT, project work, cybersecurity, phone systems and more! We are exactly what it is that you need us to be for your company. We will even provide a free analysis of your network and systems...
Top Services:
- IT Services
- Cybersecurity
- Staff Augmentation
- Cloud Consulting
- HR Outsourcing
- Show more
- Location
- Glen Allen, Virginia
- Number of Employees
- 50 - 99
- Portfolios Count
- 5 Projects Listed
Gravitas partners with businesses of every size to align people, processes, and purpose. We offer four core service lines: Human Resources (handbooks, policy, recruiting, HR retainer support), Business Management, Marketing & PR, and Training & Compliance (sexual harassment prevention, HIPAA, OSHA, Title IX...
Top Services:
- HR Outsourcing
- Business Consulting
- Branding
- Public Relations
- Reputation Management
- Show more
- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- Under $1,000
TMS Business Consulting, Inc. (TanaMSession.com) is an HR and organizational development consulting firm founded in 2014 by Dr. Tana M. Session, JD. TMS strengthens leadership, performance, and engagement through HR and OD consulting, training and development, and executive performance coaching...
Top Services:
- Business Consulting
- HR Outsourcing
- Location
- Pasadena, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $375/hr
- Minimal Budget
- $1,000 - $10,000
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
Telvista is a premier provider of contact solutions that drive customer loyalty and create competitive advantage for our clients. With our highly trained staff of support professionals, we deliver superior service that protects and promotes our clients' brands in the traditional channels and we are...
Top Services:
- HR Outsourcing
- Phone Answering Services
- BPO
- Location
- Dallas, Texas
- Number of Employees
- Under 49
- Portfolios Count
- 1 Project Listed
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
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
Best Recruiting and Staffing Service in USA offer end-to-end recruitment and workforce solutions across various industries in the US...
Top Services:
- HR Outsourcing
- Managed Services
- Location
- Farmington Hills, Michigan
- Number of Employees
- 50 - 99
- Minimal Budget
- Under $1,000
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
InnoSource is built on the premise that through a well-designed process and passion, we can change the way people think about staffing firms. And we’ve proven that for the last 20 years with our solutions...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Dublin, Ohio
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
IFG specializes in mid to professional-level staffing across industries including medical, accounting and finance, legal, sales, and customer service. Our dedicated focus empowers us to deliver top-notch candidates, along with unparalleled trust, attention, and value...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Phoenix, Arizona
- Number of Employees
- Under 49
Let our team help with your next hire! Matching talent with opportunity...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Redondo Beach, California
- Number of Employees
- Under 49
Artech is the largest Women & Minority owned IT staffing firm in the US, with US$ 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
Syfter is a national strategic business partner providing leading expertise for hiring in technology...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- New York City, New York
- Number of Employees
- Under 49
E Talent Network started with a vision to help businesses to recruit the best talent globally, our company provides RPO (Recruitment Process Outsourcing) which has been our core area since our inception. Our aim is to help our clients recruit top talent, with ease. We ensure that our clients not only save...
Top Services:
- HR Outsourcing
- Accounting
- Location
- McLean, Virginia
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $50/hr
We are a US Based and US Managed Recruitment Process Outsourcing & Acceleration (RPO or RPA) company with headquarters in Atlanta, GA. We exclusively utilize US Based Account Managers. Qualified Recruiter has developed an impressive depth and scale of essential recruiting knowledge and boasts a recruitment...
Top Services:
- HR Outsourcing
- BPO
- Location
- Marietta, Georgia
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
Dukhon Tax has been serving Greater Boston since 2011 and delivering expertise to our business and individual clients. Our focus on customer service and the client experience makes us unique in our industry. We are Certified Public Accountants for the modern world – more than just number-crunchers, we are...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
The Hilb Difference. Hilb offers more. Payroll is essential to every company and employee, but can be costly. Hilb Groups combination of knowledge, expertise, and advanced technology provides a better way. As leaders in our field, we have earned a distinguished reputation of providing accurate payroll...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Mansfield, Massachusetts
- Number of Employees
- 100 - 249
Clarke Executive Services Group is an operations consulting and team solutions firm that works with business owners to improve the infrastructure, organization, procedures, talent, and performance of their companies. Clarke is the long-term solution for your long-term success...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Los Angeles, California
- Number of Employees
- Under 49
We founded the ESC in 1995 to meet the increasing Human Resources and Employment Administration needs of the growing small & medium-sized business market in Western New York and throughout the country. Each client of the ESC started with a conversation – an opportunity for our team to learn about the...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Buffalo, New York
- Number of Employees
- 50 - 99
As a full-service HR Consultancy, we focus on building out robust HR functions for fast-growth companies, helping them acquire, retain and develop top talent, as well as implement the right systems to cut costs while leveling up their benefits, payroll, employer brand, ATS and HRIS, performance management...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $150/hr
We offer a wide range of research services to help you understand and design for your end users. We provide UX research, Human Factors testing, Ethnography, as well as in house participant recruiting and facility rentals for focus groups and mock trials in Houston...
Top Services:
- HR Outsourcing
- Market Research
- Location
- Houston, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
Xemplar is a nationwide skilled labor staffing agency, specializing in the placement of tradespeople, managers and specialty personnel for best-in-class industrial employers...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Salt Lake City, Utah
- Number of Employees
- Under 49
United Payroll and HR Services, Inc is your one-stop solution for all your Payroll and Human Resource service needs!...
Top Services:
- HR Outsourcing
- Accounting
- Location
- San Diego, California
- Number of Employees
- Under 49
Total Package HR is a U.S.-based human-resources and payroll services firm headquartered in San Diego, California. The agency provides full-scale HR outsourcing solutions, payroll processing, compliance support, staffing & recruiting services, and on-demand HR assistance for small and mid-sized businesses...
Top Services:
- HR Outsourcing
- Accounting
- Location
- San Diego, California
- Number of Employees
- Under 49
Stratus.hr® offers an alternative to a full-time HR department at a lower cost. Founded in December of 1999, Stratus.hr quickly emerged as the premiere PEO for human resources outsourcing in the Intermountain West...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Sandy, Utah
- Number of Employees
- Under 49
Solutions At Work empowers your business with smarter, more comprehensive HR solutions: HR compliance and consulting, recruitment, HRIS, and more...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Reno, Nevada
- Number of Employees
- Under 49
At HR Wise, our goal is to provide medium to small business payroll services and HR services to help you focus on growing your company instead of time-consuming paperwork. Our services are tailored to meet the needs of small and medium sized businesses...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Scottsdale, Arizona
- Number of Employees
- Under 49
The Applied Companies (TAC) focuses on all things employment. We are your employment and HR experts through staffing, HR and benefits, and executive search...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Reno, Nevada
- Number of Employees
- Under 49
We're proudly standing up for whats right. We Won't Rest Until more barriers to workforce entry and advancement are undone...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Troy, Michigan
- Number of Employees
- 1000 & Up
Championing human potential is our guiding mission, and we take it very seriously...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Troy, Michigan
- Number of Employees
- 100 - 249
New Horizons is a globally recognized IT training and services provider with over 35 years of experience. Our partnership with industry leaders ensures that our courses and certifications span critical areas like Cybersecurity and Cloud Computing...
Top Services:
- HR Outsourcing
- Cybersecurity
- Location
- Tampa, Florida
- Number of Employees
- 1000 & Up
Acrisure is powered by the best of human and high-tech. It offers project management, insurance, reinsurance, real estate, cyber, HR, and IT solutions to millions of clients around the world...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Grand Rapids, Michigan
- Number of Employees
- 1000 & Up
Outsourced Accounting Firm providing unparalleled accounting support. Gain access to an experienced team tailored to the unique requirements of your business. We provide CFO Services, Controller Services, Back-Office Support, Placement and Recruiting services, Government Contractor Accounting Services, HR...
Top Services:
- HR Outsourcing
- Accounting
- Location
- San Diego, California
- Number of Employees
- 50 - 99
At HighCloud Solutions, our unwavering passion lies in technology. We are dedicated to empowering organizations by optimizing the latest advancements and driving productivity to new heights...
Top Services:
- HR Outsourcing
- IT Services
- Location
- St. Paul, Minnesota
- Number of Employees
- Under 49
A company called SynchronyHR provides outsourcing for human resources to business owners all throughout the nation. You can stop worrying about the boring jobs and concentrate on your growth and success by doing away with the headaches of human resources, compliance, workers' compensation, risk management...
Top Services:
- HR Outsourcing
- Accounting
- Location
- St. Louis, Missouri
- Number of Employees
- Under 49
ettain group, the industry-leading talent solutions company in Charlotte, NC, delivers recruitment services and managed services in IT, healthcare IT and digital creative. With over 21 years of expertise, we provide end-to-end talent solutions across all phases of the talent life cycle. Count on us for...
Top Services:
- HR Outsourcing
- UI/UX Design
- Location
- Charlotte, North Carolina
- Number of Employees
- 100 - 249
HSP Group specializes in employer of record services and global expansion, providing expert-led solutions for companies looking to scale their international operations. With a focus on customer experience, HSP Group offers comprehensive people and entity solutions in every country, utilizing technology...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Tampa, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $150/hr
Hire globally, stress-free, with a reliable Virtual Assistant for just $10/hour no contracts, no setup fees, no hassle. Pixel Buddys dedicated Virtual Buddies take care of time-consuming tasks so you can focus on growing your business and enjoying life.Trust your buddy to have your back!...
Top Services:
- HR Outsourcing
- BPO
- Location
- Pueblo, Colorado
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $8/hr
- Minimal Budget
- $1,000 - $10,000
At Exceptional HR Solutions, we build customized strategies that evolve with you. By optimizing your processes and providing hands-on support to conquer any HR challenge, we provide the power for your sustainable growth.Your business is unique. Your HR should be, too...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Melissa, Texas
- Number of Employees
- Under 49
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
Ralent is a global business solutions provider specializing in building and scaling high-performing teams for international expansion. We offer end-to-end services, including talent acquisition, onboarding, payroll, compliance, and operational support, tailored to business needs. Unlike traditional...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- San Francisco, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
HR Advantage Consultants is a people-centered HR consulting firm that helps businesses build stronger teams, improve workplace practices, and navigate HR challenges with confidence. We provide customized support in recruiting, employee relations, compliance, performance management, training, leadership...
Top Services:
- HR Outsourcing
- Accounting
- Location
- Palm Desert, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $250/hr
- Minimal Budget
- $1,000 - $10,000
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 are a long-term partner that provides experienced professionals who integrate seamlessly into your workflow. Our mission is to provide opportunities for Latin-American top-tier talent to make their dream of working with the most relatable U.S. AEC companies and participate in challenging architectural...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Miami, Florida
- Number of Employees
- 500 - 999
BGS Headhunters is a two-office executive search boutique (Madrid and Miami) that fills executive and key-hire roles for mid-size companies. A partner runs every search from brief to offer and interviews each candidate personally. Our in-house AI screens thousands of profiles per search across all public...
Top Services:
- HR Outsourcing
- Business Consulting
- Location
- Miami, Florida
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $10,000 - $25,000
ExpertHiring connects businesses with qualified professionals for specialized and hard-to-fill positions. Our recruiters focus on understanding each companys hiring needs and identifying candidates with the right skills and experience...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Location
- Bridgewater, New Jersey
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
HR Outsourcing Companies by City
HR Outsourcing Companies by State
HR Outsourcing Specializations in the US
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
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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
