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 ×
Wipfli is a leading accounting and business consulting firm, ranking among the top 20 in the nation. With a century of experience and a forward-thinking approach, we help clients achieve lasting results. Our team of eternal students brings cross-industry expertise and creativity to solve complex challenges...
Top Services:
- BPO
- HR Outsourcing
- Business Consulting
- Accounting
- Mobile App Development
- Show more
- Location
- Billings, Montana
- Number of Employees
- 1000 & Up
Join us at Deloitte, where we believe that our collective influence is the cornerstone of our value. With a rich legacy spanning over 175 years and a global network encompassing 150 countries, we empower remarkable achievements, solve complex problems, and drive meaningful progress for clients, professionals...
Top Services:
- Business Consulting
- Accounting
- HR Outsourcing
- Big Data Analytics
- CRM Consulting
- Show more
- Location
- New York City, New York
- Number of Employees
- 1000 & Up
- Portfolios Count
- 6 Projects Listed
Our Yourshore model is intentionally designed to give you the very best remote engineering solution that solves for all the usual pain points that plague traditional offshore vendors...
Top Services:
- Software Development
- HR Outsourcing
- Location
- Menlo Park, California
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
ET Expo is a full-service exhibit house building custom trade show booths that stop people mid-stride. From 3D design and fabrication to graphics, installation, dismantle, and storage - from 10x10 inlines to double-deck islands, buy or rent - one partner from sketch to show floor, serving exhibitors...
Top Services:
- Event Marketing
- Graphic Design
- Print Design
- Product Design
- Design Services
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- Location
- Las Vegas, Nevada
- Number of Employees
- Under 49
- Minimal Budget
- Under $1,000
- Portfolios Count
- 4 Projects Listed
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 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
Grant Thornton LLP (US) is an IT, project management, audit, tax, AgTech, and BPO company headquartered in Chicago, Illinois with over 50 U.S. offices and access to a global network or member firms in over 135 countries. We offer a broad range of services in strategy and consulting, operations, technology and...
Top Services:
- Accounting
- Business Consulting
- Market Research
- HR Outsourcing
- Software Development
- Show more
- Location
- Chicago, Illinois
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 2 Projects Listed
We think technology so you don't have to. We provide 24/7 help desk, project work, CIO strategy, cyber security and video surveillance. We can work with your existing IT Department or be your internal IT Department...
Top Services:
- Cybersecurity
- IT Services
- Managed Services
- HR Outsourcing
- Show more
- Location
- Vancouver, Washington
- Number of Employees
- Under 49
- Minimal Budget
- Under $1,000
- Portfolios Count
- 4 Projects Listed
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
Established in 1972, Eastridge Workforce Solutions is an employee-owned provider of full-service talent acquisition and management solutions for companies globally. Ranked as a top professional recruiting firm by Forbes and in the top 1% of firms by Staffing Industry Analysts, Eastridge proudly helps more...
Top Services:
- HR Outsourcing
- Accounting
- Staff Augmentation
- Location
- San Diego, California
- Number of Employees
- 500 - 999
Green Leads provides our clients with the highest level subscription based Pipeline Generation services and enable our clients to achieve top line revenue growth and position them as their category leader...
Top Services:
- HR Outsourcing
- Call Centers
- Digital Marketing
- Location
- Hampstead, New Hampshire
- Number of Employees
- 100 - 249
Walter & Shuffain is a results-driven firm which serves as the trusted advisors to privately-held businesses and their owners. We provide consulting, tax and estate planning, and accounting services to a variety of business sectors including: real estate, professional services, healthcare, technology...
Top Services:
- HR Outsourcing
- Business Consulting
- Accounting
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
AAFCPAs is the premier CPA and consulting firm based in New England and considered an attractive alternative to national CPA firms by discerning clients who appreciate exceptional value. We provide audit, tax, accounting, and advisory solutions to nonprofit organizations, commercial companies, and wealthy...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Location
- Boston, Massachusetts
- Number of Employees
- 250 - 499
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
You rely on your employees to move your business forward, they rely on you to deliver an experience equivalent to the experience they deliver to your customers - honest, accurate and timely. So how do you ensure you deliver on your obligations to your employees? Do it with the help from the EBC HR & Payroll...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Location
- Buffalo, New York
- Number of Employees
- 100 - 249
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
Phenom, LLC is an SBA certified Minority Woman-Owned Small Business providing staffing and comprehensive management consulting services...
Top Services:
- HR Outsourcing
- Accounting
- Staff Augmentation
- Location
- Baltimore, Maryland
- Number of Employees
- Under 49
Since 2010, VitalSource IT has emerged as the #1 direct placement IT services staffing partner for tech giants such as Amazon.com, eBay, Nest, Twitch, and Zillow Group. We credit our success to strong, lasting partnerships with top companies and talented technical professionals...
Top Services:
- HR Outsourcing
- IT Services
- Staff Augmentation
- Location
- Kirkland, Washington
- Number of Employees
- Under 49
We are one of the fastest-growing IT training and Information Technology Consulting and technology solutions providers in the US with an extensive footprint in North America and globally...
Top Services:
- HR Outsourcing
- Staff Augmentation
- IT Services
- Location
- San Francisco, California
- Number of Employees
- Under 49
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
Clarkston Consulting excels in management, operations, and implementation consulting for life sciences, consumer products, and retail. With a dedicated team of experts, we're here to surpass your expectations and drive your success...
Top Services:
- HR Outsourcing
- Business Consulting
- IT Services
- Location
- Durham, North Carolina
- Number of Employees
- 250 - 499
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
The TechnoSIP team has more than ten years of experience in providing technology solutions for a wide range of clients, from startups to SMBs...
Top Services:
- HR Outsourcing
- Web Development
- Mobile App Development
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $149/hr
Our global reach allows us to work at affordable rates without sacrificing the quality of our work or the timeliness of our delivery, and our customer-focused culture makes it simple for us to collaborate seamlessly with your internal information systems team...
Top Services:
- HR Outsourcing
- Software Development
- UI/UX Design
- Location
- Irvine, California
- Number of Employees
- 500 - 999
We pledge to keep using cutting-edge tactics, services, and strategies to deliver long-term, client-defined business value that makes the most of each client's IT investment for a competitive edge...
Top Services:
- HR Outsourcing
- Cloud Consulting
- Software Development
- Location
- Beaverton, Oregon
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $1,000 - $10,000
We recruit and help you compensate global talents for your remote positions, ensuring costs are up to 70% lower than what US & Western EU talents typically demand, without sacrificing quality...
Top Services:
- HR Outsourcing
- Staff Augmentation
- Customer Support
- Location
- New York City, New York
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
20 years of providing award-winning sales, marketing and management recruitment services to organizations of all sizes from around the globe...
Top Services:
- HR Outsourcing
- Business Consulting
- eCommerce
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
WIth G-P's industry-leading Employer of Record (EOR) and Contractor solutions, you can hire, onboard and manage teams in 180+ countries, quickly and compliantly, without setting up entities...
Top Services:
- HR Outsourcing
- Accounting
- Software Development
- Location
- Boston, Massachusetts
- Number of Employees
- 1000 & Up
EvolveUp is an Austin-based consulting firm specializing in workforce optimization for people-centric businesses. The company combines strategic consulting with hands-on HR technology implementation to help organizations improve efficiency, reduce costs, and align their workforce with business goals...
Top Services:
- HR Outsourcing
- Customer Support
- Business Consulting
- Location
- Austin, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $1,000 - $10,000
Extend Staffing is an international staffing, recruitment, and HR services agency that helps organizations hire skilled candidates, fill critical roles, and build stronger teams...
Top Services:
- HR Outsourcing
- Accounting
- Transcription Services
- Location
- Houston, Texas
- Number of Employees
- Under 49
- Average Hourly Rate
- $12/hr
- Minimal Budget
- $1,000 - $10,000
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
Commit is a boutique software development company that specializes in the creation of mobile and web applications utilizing the technologies of React, Node.js, and Android and iOS. We design and construct bespoke e-commerce platforms, ranging in complexity from the most basic to the most advanced. We find it...
Top Services:
- Web Development
- eCommerce Development
- Web Design
- HR Outsourcing
- Show more
- Location
- Mountain View, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 5 Projects Listed
Quantazone is a technology and AI solutions company helping businesses modernize operations, automate workflows, and build smarter digital systems. From ERP, CRM, HRMS, and cloud solutions to AI and marketing automation, Quantazone combines technology, strategy, and industry expertise to create scalable...
Top Services:
- ERP Consulting
- CRM Consulting
- AI Development
- Cloud Consulting
- Digital Marketing
- Show more
- Location
- San Francisco, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $40/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 3 Projects Listed
Portiva's Virtual Medical Assistant is the No. 1 Provider in the World Today...
Top Services:
- Phone Answering Services
- BPO
- Call Centers
- HR Outsourcing
- Show more
- Location
- Trappe, Pennsylvania
- Number of Employees
- Under 49
- Average Hourly Rate
- $10/hr
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
Founded in 2000, InSource, Inc. has transformed from a leading IT technology staffing company to a trusted provider of cloud-based technology solutions centered around people, products, and processes. As an Elite ServiceNow Partner and a Managed Services Partner with Identity Management firm OKTA, we are...
Top Services:
- Managed Services
- Call Centers
- HR Outsourcing
- IT Services
- Staff Augmentation
- Show more
- Location
- Philadelphia, Pennsylvania
- Number of Employees
- 250 - 499
- Portfolios Count
- 4 Projects Listed
Quality Back Office (QBO) relieves business owners from the burdensome tasks of payroll, bill pay, invoicing, bookkeeping, accounting and more. With a dedicated team of real people and over 10 years of experience, we have successfully taken over 500+ back offices. Let us be your go-to back office provider...
Top Services:
- HR Outsourcing
- Business Consulting
- Accounting
- BPO
- Show more
- Location
- Naperville, Illinois
- Number of Employees
- 100 - 249
20four7VA is a leading virtual recruiting and staff placement company specializing in fully managed remote staffing solutions. We provide end-to-end virtual assistant (VA) services to small-to-medium-sized businesses and freelance business owners worldwide. Our cost-effective, customizable, and scalable...
Top Services:
- HR Outsourcing
- BPO
- Call Centers
- Staff Augmentation
- Show more
- Location
- Berlin, Maryland
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $7/hr
- Minimal Budget
- Under $1,000
PADGETT has been catering to the unique needs of small business owners across North America since 1966. With a comprehensive suite of services, including small business consulting advice, professional tax preparation, payroll solutions, bookkeeping, and more, we provide the support and expertise necessary for...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- IT Services
- Show more
- Location
- Athens, Georgia
- Number of Employees
- 250 - 499
GP Strategies is a global leader in talent transformation services, offering award-winning learning and IT training solutions that drive significant business change. Trusted by over 6,000 enterprises worldwide, we provide a comprehensive suite of services, including vision and strategy alignment, contemporary...
Top Services:
- HR Outsourcing
- AI Development
- Digital Marketing
- Digital Strategy
- Show more
- Location
- Columbia, Maryland
- Number of Employees
- 1000 & Up
Lightrise Consulting delivers purpose-driven Cloud IT solutions that empower businesses to scale sustainably. We combine technical excellence with a commitment to environmental and social impact, transforming IT and HR headaches into meaningful progress...
Top Services:
- Managed Services
- Cybersecurity
- AI Development
- HR Outsourcing
- VR/AR
- Show more
- Location
- Boston, Massachusetts
- Number of Employees
- Under 49
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $10,000 - $25,000
- Portfolios Count
- 1 Project Listed
BlackWulff is an advisory-led offshore recruitment partner helping US firms build disciplined, long-term teams across finance, accounting, operations, and digital roles. We focus on alignment, structure, and performance not volume hiring...
Top Services:
- HR Outsourcing
- Customer Support
- Call Centers
- Business Consulting
- Show more
- Location
- Cheyenne, Wyoming
- Number of Employees
- Under 49
- Average Hourly Rate
- $20/hr
- Minimal Budget
- $1,000 - $10,000
Windows Management Experts is a Microsoft focused IT services firm delivering enterprise staffing, security, endpoint management, and cloud consulting...
Top Services:
- IT Services
- HR Outsourcing
- Location
- Bensalem, Pennsylvania
- Number of Employees
- 250 - 499
- Minimal Budget
- $1,000 - $10,000
NAS is an award-winning recruitment marketing firm. Our team of experts partner with clients to help them bring qualified candidates into their talent pool and increase their ROI. NAS achieves that by focusing on 3 main pillars: Storytelling, Technology & Strategy. Being a one-stop shop with great in-house...
Top Services:
- Branding
- HR Outsourcing
- Social Media Marketing
- Digital Marketing
- Digital Strategy
- Show more
- Location
- Independence, Ohio
- Number of Employees
- Under 49
At Net2Source (N2S), staying ahead of the curve isnt optional its who we are. As a global Talent Company, Net2Source isnt just observing the future were building it. Our proprietary AI-powered recruiting engine enables us to deliver pre-vetted, on-demand talent at speed and scale...
Top Services:
- HR Outsourcing
- BPO
- Business Consulting
- IT Services
- AI Development
- Show more
- Location
- Somerset, Massachusetts
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $50/hr
Virtustant places pre-vetted Latin American professionals with US companies and never charges recruitment fees: clients pay only the hire's salary, payroll and compliance included. Shortlists arrive in 48 hours, average time-to-hire is 3 days, and every placement carries a lifetime replacement guarantee...
Top Services:
- HR Outsourcing
- BPO
- Customer Support
- Phone Answering Services
- Accounting
- Show more
- Location
- St. Petersburg, Florida
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $12/hr
- Minimal Budget
- $1,000 - $10,000
Offering AgTech, Business, and IT Services. Baker Tilly Canada Cooperative is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Baker Tilly Canada refers to the association of member firms of Baker Tilly Canada Cooperative...
Top Services:
- HR Outsourcing
- Accounting
- Business Consulting
- Market Research
- Cybersecurity
- Show more
- Location
- Honolulu, Hawaii
- Number of Employees
- 1000 & Up
GetNuva connects businesses in the USA with exceptional virtual assistants worldwide. Boost your productivity, drive growth, and embrace diversity with our cost-effective solutions. Lets transform your business together...
Top Services:
- HR Outsourcing
- Content Marketing
- Graphic Design
- Market Research
- BPO
- Show more
- Location
- West Hartford, Connecticut
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
Sundus is a leading global HR solutions provider with over 27 years of experience. The company is 100% Emirati-owned and managed, with a highly diversified international team that has extensive experience in human resource management. Sundus offers a comprehensive range of services that include HR outsourcing...
Top Services:
- HR Outsourcing
- BPO
- Staff Augmentation
- Business Consulting
- Logistics
- Show more
- Location
- Newark, Delaware
- Number of Employees
- 100 - 249
Corel Consulting is an Ohio-based outsourced HR and payroll consulting company providing fractional HR, talent acquisition, payroll administration, and people-management solutions to growing businesses. With 20+ years of HR expertise, the company embeds dedicated HR and talent partners into client teams to...
Top Services:
- Business Consulting
- HR Outsourcing
- Customer Support
- Location
- Plain City, Ohio
- Number of Employees
- Under 49
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $1,000 - $10,000
Virtual Staffer PH is a Philippines-based recruitment and staffing agency connecting U.S. businesses with skilled Filipino professionals. We specialize in recruiting virtual assistants, bookkeepers, accountants, administrative staff, customer support representatives, and remote professionals. Our services...
Top Services:
- BPO
- HR Outsourcing
- Accounting
- Customer Support
- Digital Services
- Show more
- Location
- St. Louis, Missouri
- Number of Employees
- Under 49
- Average Hourly Rate
- $40/hr
- Minimal Budget
- Under $1,000
- Portfolios Count
- 1 Project Listed
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
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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 |
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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
