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 ×
  • Simply put, at Navigate, we approach every aspect of our business with the success of yours in mind. When we started Navigate, we wanted to be more than just another service provider for businesses in the New England area. We strive to serve as a trusted and valuable business partner for each of our clients...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Burlington, Massachusetts
    Number of Employees
    Under 49
  • The HR Solution for Growing Businesses

    The HR Solution for Growing Businesses

    California employment law is complicated and constantly changing. To stay current and in compliance, professional HR support is critical. South Bay HR delivers quality, affordable professional human resources and recruiting services for employers throughout Southern California. Our company’s expertise...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Redondo Beach, California
    Number of Employees
    Under 49
  • At Contact Design, we specialize in finding and recruiting participants, no matter how specific, unique, and immovable the required attributes. Whether you are seeking a Chief Information Security Officer, an optometrist who is in charge of purchasing, a diabetes patient with migraines, or anyone in between...

    Top Services:

    • Market Research
    • HR Outsourcing
    Location
    Boston, Massachusetts
    Number of Employees
    Under 49
  • Excellence Starts From Within.

    Excellence Starts From Within.

    Designing company culture that propels the future of work, we envision a world where people at every level of every organization treat each other with civility. Our mission is to partner with our clients to help them create a positive workplace environment...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    La Mesa, California
    Number of Employees
    Under 49
  • We Transform Big Questions Into Clear Actions.

    We Transform Big Questions Into Clear Actions.

    A top tax, accounting and consulting firm for 69 years (and counting!), we’re driven by the outcomes that we know can change the lives of those we work with and for...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Cincinnati, Ohio
    Number of Employees
    100 - 249
  • Human Capital Management Talent Management Solutions Data Driven Insights

    Human Capital Management Talent Management Solutions Data Driven Insights

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

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Sacramento, California
    Number of Employees
    Under 49
    Average Hourly Rate
    $88/hr
    Minimal Budget
    $1,000 - $10,000
  • Build Your Team, Your WayEMAPTA is a premium staffing company with talent that aligns with your brand, values, and identity...

    Top Services:

    • BPO
    • HR Outsourcing
    Location
    Wilmington, Delaware
    Number of Employees
    1000 & Up
  • We match software developers to projects with 99% accuracy.

    We match software developers to projects with 99% accuracy.

    Unitedcode - trusted partner for remote software engineers with proven expertise from Europe and Latin America...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    50 - 99
    Average Hourly Rate
    $60/hr
  • Payroll, HR, and ComplianceMade Simple.

    Payroll, HR, and ComplianceMade Simple.

    Paper Trails provides payroll and HR services to businesses throughout New England...

    Top Services:

    • Accounting
    • HR Outsourcing
    Location
    Kennebunk, Maine
    Number of Employees
    Under 49
  • On Demand Recruitment Services

    On Demand Recruitment Services

    Experts in Staffing...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Manhattan Beach, California
    Number of Employees
    Under 49
  • Headquartered in Huntsville, AL, NMR Consulting is a verified Service-Disabled Veteran-Owned Small Business (SDVOSB)...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Huntsville, Alabama
    Number of Employees
    100 - 249
  • Amazing Talent Who Want to Work for Amazing Employers Work With Us First.

    Amazing Talent Who Want to Work for Amazing Employers Work With Us First.

    LHH exists to help people, teams, and organizations find and prepare for what comes next. An end-to-end Talent Solutions brand that helps clients and candidates to embrace a new reality: a world of continuous change...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    Jacksonville, Florida
    Number of Employees
    1000 & Up
  • Technology consultants at Bellevue

    Technology consultants at Bellevue

    At our Trusted IT Consulting Services, our objective is to comprehend your business and aid in solving business problems while taking advantage of opportunities with first-rate technology solutions. Our team collaborates with you to plan, design, develop, and deliver solutions that will expedite your growth...

    Top Services:

    • Cloud Consulting
    • HR Outsourcing
    Location
    Bellevue, Washington
    Number of Employees
    100 - 249
  • Simplifying Business. Simplifying Life.

    Simplifying Business. Simplifying Life.

    Square 9 simplifies routine corporate activities with enterprise content management, document capture, software development and web forms, and business process automation technologies that may be easily adapted to automate any paper-intensive activity. This allows you to focus more of your time on development...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    New Haven, Connecticut
    Number of Employees
    50 - 99
  • Learning Is A Lifelong Journey

    Learning Is A Lifelong Journey

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

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Philadelphia, Pennsylvania
    Number of Employees
    100 - 249
  • Unlock IT Excellence: Hands-On Training, Unbeatable Value

    Unlock IT Excellence: Hands-On Training, Unbeatable Value

    At Thecornelis, we're your trusted IT training partner. Our dedication to hands-on learning experiences and practical knowledge empowers individuals and organizations to thrive in the dynamic field of information technology...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    Lenexa, Kansas
    Number of Employees
    Under 49
    Minimal Budget
    $1,000 - $10,000
  • Global Talent, Intelligent Staffing Solutions.

    Global Talent, Intelligent Staffing Solutions.

    Alstra Technologies specializes in sourcing, hiring, and managing certified experts from Latin America, offering innovative solutions backed by cutting-edge technology. With a deep understanding of the Latin American talent landscape, the agency is committed to revolutionizing the dynamics between companies...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Deerfield Beach, Florida
    Number of Employees
    Under 49
  • Unlock IT Talent, Unleash Success.

    Unlock IT Talent, Unleash Success.

    Crescens specializes in advanced IT staffing solutions, fostering mutual benefit for clients and consultants. Through seamless integration of people, technology, and business systems, it delivers efficient staffing solutions with increased flexibility and dynamic business value. Focused on quality consulting...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Bridgewater, New Jersey
    Number of Employees
    100 - 249
  • Catalyzing Careers, Guiding Digital Growth.

    Catalyzing Careers, Guiding Digital Growth.

    Vi-Leon is a trusted IT and staffing agency guiding individuals and businesses toward continuous growth and success. Specializing in digital and life sciences solutions, Vi-Leon offers expertise in cloud architecture, data engineering, software development, and regulatory affairs. Committed to fostering trust...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Beverly, Massachusetts
    Number of Employees
    Under 49
  • Creative and Marketing Recruiting Specialists.

    Creative and Marketing Recruiting Specialists.

    Talent acquisition specialists focused on staffing, contract-to-hire, and full-time direct hire for all roles in marketing and creative...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Worthington, Ohio
    Number of Employees
    Under 49
  • Streamlining HR for Your Success

    Streamlining HR for Your Success

    Humareso provides comprehensive human resources (HR) outsourcing solutions to streamline business operations and management. Specializing in talent strategy, payroll processing, and compliance, Humareso supports organizations with or without existing HR teams. The firm's expert services help businesses...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    Vero Beach, Florida
    Number of Employees
    Under 49
    Average Hourly Rate
    $199/hr
    Minimal Budget
    $1,000 - $10,000
  • Develop your business with our top outstaffing platform.

    Develop your business with our top outstaffing platform.

    Smartbrain.io is a platform connecting companies with the best IT specialists from all over the world...

    Top Services:

    • IT Services
    • HR Outsourcing
    Location
    San Francisco, California
    Number of Employees
    100 - 249
    Average Hourly Rate
    $40/hr
  • Full-Stack Autonomy, Guaranteed Privacy.

    Full-Stack Autonomy, Guaranteed Privacy.

    Lyzr AI is a full-stack agent framework that builds fully autonomous AI agents on your cloud server, ensuring 100% data privacy and compliance. With worker agents like Jazon (AI SDR) and Skott (AI Marketer) plus productivity tools like Chat Agent and Knowledge Search, transform your workflow with intelligent...

    Top Services:

    • AI Development
    • HR Outsourcing
    Location
    Jersey City, New Jersey
    Number of Employees
    Under 49
    Average Hourly Rate
    $40/hr
  • Howdy helps US top tech companies hire and retain software developers in LATAM.

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

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

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    100 - 249
  • We Secure Your Infrastracture System

    We Secure Your Infrastracture System

    SOC2.in is a global leader in affordable SOC 2 compliance solutions, offering audit-ready offshore talent that saves up to 80% on staffing costs. With 10+ years of expertise and 1000+ successful projects, we help startups and enterprises achieve fast, reliable, and secure compliance without compromising...

    Top Services:

    • IT Compliance Solution
    • HR Outsourcing
    Location
    New York City, New York
    Number of Employees
    50 - 99
    Average Hourly Rate
    $5/hr
    Minimal Budget
    Under $1,000
  • Hire top LATAM marketing talent

    Hire top LATAM marketing talent

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

    Top Services:

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

    Curated Introductions To Pakistans Top 1% Off-Market Talent

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

    Top Services:

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

    Create Value Build Partnerships Accelerate Growth Inspire Change

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

    Top Services:

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

    Great Talent, Better Results

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

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Davie, Florida
    Number of Employees
    50 - 99
    Minimal Budget
    $1,000 - $10,000
  • San Antonio-Based HR Consulting Serving Texas Statewide

    San Antonio-Based HR Consulting Serving Texas Statewide

    Faulkner HR Solutions provides Texas HR consulting for municipalities, nonprofits, and growing businesses—helping organizations stabilize their workforce, strengthen leadership accountability, and build HR systems that perform when it matters most...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    Location
    Karnes City, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $300/hr
    Minimal Budget
    $1,000 - $10,000
  • Build Your Team Faster Without Borders

    Build Your Team Faster Without Borders

    AWWCOR provides a complete solution for building and managing global teams. Our AI-powered platform helps companies source exceptional unicorn talents, onboard and pay contractors, and stay fully compliant.We simplify the operational workload so you can focus on growth...

    Top Services:

    • Market Research
    • HR Outsourcing
    Location
    Dover, Delaware
    Number of Employees
    100 - 249
  • Committed To Providing Unmatched Global Talent

    Committed To Providing Unmatched Global Talent

    My Own Staff is a staffing and recruitment company that helps businesses build dedicated offshore teams in the Philippines. The company recruits and pre-screens professionals based on clients specific role requirements, experience, software, schedules, and communication needs, while providing employment...

    Top Services:

    • Staff Augmentation
    • HR Outsourcing
    Location
    Chicago, Illinois
    Number of Employees
    100 - 249
  • Talent Acquisition | Employer Branding | Consulting

    Talent Acquisition | Employer Branding | Consulting

    We Are Talent Acquisition Experts.We are here to place candidates for your need, at your request, with precision accuracy to your requirements. Our staffing team will search far and wide to bring you an array of human resources that are prepared to interview with your team...

    Top Services:

    • Public Relations
    • Reputation Management
    • Staff Augmentation
    • Managed Services
    • Business Consulting
    • Show more
    Location
    New York City, New York
    Number of Employees
    Under 49
    Average Hourly Rate
    $250/hr
    Minimal Budget
    $1,000 - $10,000
  • We Make Things Happen;We Don't Let Them Happen.

    We Make Things Happen;We Don't Let Them Happen.

    At NZ Hospitality, we believe your hotel's story is unique. Your challenges and ambitions arent found in a generic playbook, so our solutions arent either. We are a boutique hospitality management and consulting partner, built on the principle that true success is a shared journey, not a transaction. We go...

    Top Services:

    • Digital Marketing
    • HR Outsourcing
    • Branding
    • SEO
    • Business Consulting
    • Show more
    Location
    Richardson, Texas
    Number of Employees
    Under 49
    Portfolios Count
    1 Project Listed
  • "You have something to say; we get you noticed."

    "You have something to say; we get you noticed."

    MISSION STATEMENTAt Orly Telisman PR, Inc., Our Guiding Principles are to: Amaze clients with exceptional outreach communications.Communicate with respect and appreciation. Do Exceptional Work at all times.Continue Educating Ourselves to work smarter every day...

    Top Services:

    • Content Marketing
    • Digital Marketing
    • Social Media Marketing
    • HR Outsourcing
    • Business Consulting
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $175/hr
    Minimal Budget
    $1,000 - $10,000
  • Specialized recruiting for the exhibit and experiential event industry

    Specialized recruiting for the exhibit and experiential event industry

    A recruiting firm focused exclusively on exhibit builders and experiential agencies, placing proven operators across sales, project management, design, and operations...

    Top Services:

    • Event Marketing
    • Advertising
    • HR Outsourcing
    Location
    Jasper, Georgia
    Number of Employees
    Under 49
    Average Hourly Rate
    $200/hr
  • Simplify your HR operations

    Simplify your HR operations

    ADP (Automatic Data Processing) is a global PEO, a leader in human capital management solutions, committed to transforming the way businesses navigate workforce challenges...

    Top Services:

    • BPO
    • HR Outsourcing
    • Business Consulting
    Location
    Las Vegas, Nevada
    Number of Employees
    Under 49
  • Full Service Accounting & Business Consulting Firm

    Full Service Accounting & Business Consulting Firm

    BPM is a full-service accounting and consulting firm deeply experienced in assurance, tax and business advisory. With over 40 committed partners leading these groups, we deliver the resources, expertise and business insight that produce outstanding results for clients...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Accounting
    Location
    San Francisco, California
    Number of Employees
    500 - 999
  • Technology expertise, Innovative solutions and long lasting partnership with customers

    Technology expertise, Innovative solutions and long lasting partnership with customers

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

    Top Services:

    • IT Services
    • HR Outsourcing
    • Business Consulting
    Location
    Irving, Texas
    Number of Employees
    100 - 249
  • Your Business' Success is Our Mission Your Business' Success is Our Mission find solutions to your business and employee issues. Our areas of expertise are Business Management, Employee Management, Business Planning, HR, and Process Management. find solutions to your business and employee issues. Our areas...

    Top Services:

    • Business Consulting
    • HR Outsourcing
    • Accounting
    Location
    Bismarck, North Dakota
    Number of Employees
    Under 49
  • IT That WorksSo You Dont Have to Worry.

    IT That WorksSo You Dont Have to Worry.

    Technology and Security that is transparent to your business...

    Top Services:

    • Managed Services
    • HR Outsourcing
    • IT Services
    Location
    Flint, Michigan
    Number of Employees
    Under 49
  • Making Data Actionable

    Making Data Actionable

    Since mid-2014, DataWits has worked with clients from the United States, Canada, the United Kingdom, Australia, and the Middle East. The majority of our clients rely on us on an ongoing basis to meet their outsourcing and offshoring needs. We primarily serve the Data Entry, Data Processing, and Support...

    Top Services:

    • BPO
    • HR Outsourcing
    • IT Services
    Location
    Cheyenne, Wyoming
    Number of Employees
    Under 49
    Average Hourly Rate
    $15/hr
    Minimal Budget
    $1,000 - $10,000
  • Satisfied Candidates, Happy Customers

    Satisfied Candidates, Happy Customers

    Hire Whoever, Wherever, Whenever.Easily Onboard, Insure, Pay and Manage your workforce with our all in one solution...

    Top Services:

    • BPO
    • HR Outsourcing
    • Accounting
    Location
    Norwalk, Connecticut
    Number of Employees
    Under 49
  • Modern Accounting Built To Grow Your Business

    Modern Accounting Built To Grow Your Business

    Hiline offers bookkeeping, tax, and payroll services for small businesses, providing tailored financial solutions to streamline operations and support growth...

    Top Services:

    • Accounting
    • HR Outsourcing
    • BPO
    Location
    Syracuse, New York
    Number of Employees
    100 - 249
    Average Hourly Rate
    $1/hr
  • Finance Expertise For Growing Businesses

    Finance Expertise For Growing Businesses

    Most businesses can't afford to interview a full-time accountant or HR person - but they need help right now. FlowFi helps businesses find pre-vetted fractional experts for functions ranging from HR, to compliance, to bookkeeping, to fractional CFOs quickly and based on their needs...

    Top Services:

    • Accounting
    • HR Outsourcing
    • Business Consulting
    Location
    Los Angeles, California
    Number of Employees
    100 - 249
    Average Hourly Rate
    $100/hr
    Minimal Budget
    Under $1,000
  • Partnering For Progress

    Partnering For Progress

    Uniqcli is a provider of cutting-edge technology committed to providing innovative solutions to businesses of all sizes. With an emphasis on quality and customer satisfaction, we are pleased to serve more than ten Fortune 500 companies. As industry pioneers, we are committed to remaining ahead of the curve...

    Top Services:

    • eCommerce Development
    • Web Development
    • Web Design
    • Digital Marketing
    • HR Outsourcing
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $120/hr
    Minimal Budget
    $10,000 - $25,000
  • Recruit Smarter Hire Faster

    Recruit Smarter Hire Faster

    RediRecruit helps companies in the United States, United Kingdom, Canada, UAE, Australia, and worldwide recruit smarter and hire faster. We specialize in Recruitment Process Outsourcing (RPO), LinkedIn Candidate Sourcing, High-Impact Outreach, Virtual HR support, and B2B lead generation. Our team works as an...

    Top Services:

    • HR Outsourcing
    Location
    Austin, Texas
    Number of Employees
    Under 49
    Average Hourly Rate
    $25/hr
    Minimal Budget
    Under $1,000
  • Matching Talent With Success

    Matching Talent With Success

    Artisan Talent is a premier creative staffing agency that has been redefining talent solutions since its inception. Committed to excellence, we offer a comprehensive suite of services tailored to the unique needs of the creative, digital, and marketing industries...

    Top Services:

    • Graphic Design
    • Digital Marketing
    • Social Media Marketing
    • Creative Services
    • Web Design
    • Show more
    Location
    Chicago, Illinois
    Number of Employees
    Under 49
    Average Hourly Rate
    $75/hr
    Minimal Budget
    $1,000 - $10,000
  • Boost productivity & profitability by outsourcing to the Philippines with STAFFVIRTUAL

    Boost productivity & profitability by outsourcing to the Philippines with STAFFVIRTUAL

    Customer service, back office, and IT outsourcing are the areas of expertise of STAFFVIRTUAL, an American business process outsourcing (BPO) firm with offices in the Philippines. Additionally, we offer Employer of Record (EOR) or Professional Employer Organization (PEO) solutions. It is simple for your...

    Top Services:

    • Call Centers
    • HR Outsourcing
    • BPO
    • Accounting
    • Show more
    Location
    Miami, Florida
    Number of Employees
    50 - 99
    Average Hourly Rate
    $100/hr
    Minimal Budget
    $1,000 - $10,000
  • Business & Technology Solutions

    Business & Technology Solutions

    Withum can be the new business advisor relationship you need to inspire innovation for your growth and success. Experience a fresh perspective on embracing what you’ve learned and refocusing your business strategy to thrive in an evolving, complex business environment. Whether you’re looking to strengthen...

    Top Services:

    • Accounting
    • HR Outsourcing
    • Cybersecurity
    • IT Services
    • Show more
    Location
    San Francisco, California
    Number of Employees
    1000 & Up

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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 OutsourcingPEO
FunctionThird-party vendor Co-employer 
Legal LiabilityClientShares responsibility with the client
ServicesProvides the service as neededControls the entire HR operations 
Payroll, taxes, and filings Provider handles the service, but the client remains the employerProvider is the co-employer and administers the entire process
Benefits
  • Higher flexibility and customization 
  • Client keeps full control
  • Fewer risks, as PEO shares the liability
  • All-in-one HR function, no need to search for different providers 

What questions should I ask before hiring?

Ask these questions before hiring an HR outsourcing company: 

Relevant Background 

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

Services and Processes 

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

Related to Your Project 

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

What types of businesses usually outsource their HR services?

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

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

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

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