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 ×
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
Social media agency that prioritizes long-term client relationships and focuses on helping businesses acheive their goals. Our intent is all for your delight...
Top Services:
- Social Media Marketing
- Content Marketing
- SEO
- Email Marketing
- Web Design
- Show more
- Location
- Iowa City, Iowa
- Number of Employees
- Under 49
- Minimal Budget
- $1,000 - $10,000
- Portfolios Count
- 1 Project Listed
Mysoft Heaven (BD) Ltd. is a Top Software Development Company & CMMI Level 3 Company with 15+ years of excellence. We specialize in enterprise-grade solutions like ERP, FinTech, e-Governance, and HRMS (HR Sheba). Our scalable SaaS platforms and Cyber Security solutions empower global organizations...
Top Services:
- Web Development
- Digital Marketing
- Mobile App Development
- Software Development
- Staff Augmentation
- Show more
- Location
- Miami, Florida
- Number of Employees
- 250 - 499
- Average Hourly Rate
- $50/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 1 Project Listed
ASK 2 PRO delivers expert virtual assistant services nationwide, helping businesses streamline tasks, boost efficiency, and expand their network. From admin to communication, we handle the details so you can focus on growth and success...
Top Services:
- Web Development
- Digital Marketing
- AI Development
- HR Outsourcing
- Customer Support
- Show more
- Location
- New York City, New York
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $7/hr
You have arrived at the ideal location if you are seeking a trustworthy partner to simplify your staffing requirements. Leading IT and healthcare staffing Solutions Cloud Space LLC is committed to producing customized and significant outcomes...
Top Services:
- Business Consulting
- HR Outsourcing
- Market Research
- BPO
- Show more
- Location
- Charlotte, North Carolina
- Number of Employees
- 500 - 999
- Average Hourly Rate
- $25/hr
Matter Consulting is the home of Steven Morris’ brand, culture, and business advisory work. Steven has been a trusted advisor to more than 3,000 business leaders at more than 250 global, national, and regional brands since 1994...
Top Services:
- Branding
- Reputation Management
- Business Consulting
- Market Research
- Digital Strategy
- Show more
- Location
- San Diego, California
- Number of Employees
- Under 49
- Average Hourly Rate
- $200/hr
- Minimal Budget
- $10,000 - $25,000
Elite Virtual Employee (EVE Hire LLC) is a global remote staffing company offering IT staffing, web & app development, digital marketing, payroll and vendor management services...
Top Services:
- HR Outsourcing
- Staff Augmentation
- IT Services
- Cybersecurity
- Managed Services
- Show more
- Location
- Wilmington, Delaware
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $35/hr
- Minimal Budget
- $1,000 - $10,000
KritiKal Solutions is a technology design house and holds 22+ years of experience in AI, Computer Vision, Software Applications, Cloud and Mobile-based Solutions, Embedded Systems, Generative AI and Large Language Models. We specialize in R&D, product engineering, and innovation services...
Top Services:
- AI Development
- IoT
- Mobile App Development
- Software Development
- Wearables
- Show more
- Location
- Dallas, Texas
- Number of Employees
- 100 - 249
- Average Hourly Rate
- $25/hr
- Minimal Budget
- $25,000 - $50,000
- Portfolios Count
- 4 Projects Listed
Everise offers enterprises the solutions and technology they need to rapidly scale their brands across markets, and to evolve their offering through the product or service lifecycle. Some of the world’s most loved brands have products and services that are tested, protected, supported and sold by Everise...
Top Services:
- BPO
- HR Outsourcing
- Location
- Austin, Texas
- Number of Employees
- 1000 & Up
- Average Hourly Rate
- $100/hr
We offer professional staffing, contract staffing, and outsourced talent solutions. Specializing in advanced manufacturing, engineering, technology, and accounting & finance, we build connections and deliver value. Our consultative approach ensures tailored staffing solutions, streamlining the hiring process...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Marlborough, Massachusetts
- Number of Employees
- 100 - 249
Integrated Human Resources, Inc. a Beverly based Human Resources Consulting Firm. Integrated deploys outsourcing strategies in the areas of human resources, worker’s compensation, employee benefits, benefits administration, and payroll to small businesses throughout the United States...
Top Services:
- Accounting
- HR Outsourcing
- Location
- Beverly, Massachusetts
- Number of Employees
- Under 49
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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 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
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
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
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
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
Fast Dolphin is a nearshore IT and Engineering staffing firm that helps US companies build technical teams across Latin America. We focus on two staffing models, Temporary Staffing and Direct Hire Staffing, with bilingual professionals in US time zones and the first candidate in 24 to 48 hours...
Top Services:
- Staff Augmentation
- HR Outsourcing
- Location
- Davie, Florida
- Number of Employees
- 50 - 99
- Minimal Budget
- $1,000 - $10,000
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
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
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
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
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
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
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
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
- Location
- Miami, Florida
- Number of Employees
- 50 - 99
- Average Hourly Rate
- $100/hr
- Minimal Budget
- $1,000 - $10,000
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
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
4.8
4.8Some agencies pay for sponsored placement, clearly labeled and held to the same vetting standards.
Frequently Asked Questions About HR Outsourcing Services
What services do most of these companies typically offer?
They typically provide a comprehensive menu of services covering the full employee lifecycle.
According to industry research, these are the most frequently outsourced HR services:
- Payroll outsourcing (70%): Processing employee salaries and ensuring that they comply with contract agreements, labor laws, and tax regulations.
- Recruitment process outsourcing (RPO) (28%): Sourcing, screening, interviewing, and onboarding talent required by an organization.
- Multi-process HRO (26%): Delegating multiple HR operations to a single third-party provider, such as payroll processing, onboarding and training, and compliance.
- Benefits administration (18%): Managing an organization’s benefits programs for employees, such as health insurance, paid time off, and retirement plans.
- Learning services (14%): Overseeing an organization’s training and development programs, helping employees upskill or reskill.
Beyond these core offerings, these companies also cover performance management, time and attendance tracking, and compliance management.
How much does HR outsourcing cost?
HR outsourcing costs start at $50-$200 per employee per month and can go beyond $1,500 per employee per month. The final rate will depend on the type of HR sourcing service, engagement model, company size and structure, industry, and compliance requirements.
Here’s a pricing breakdown per service type:
- Payroll processing: Base fee of $150-$350 per month for a company with under 20 employees
- Compliance management: $500-$5,000 per month, depending on scope and requirements
- Employer record services (EOR): $200-$1,500 per month per employee
- Training and development: $50-$300 per employee per module, and can be exclusive of trainer compensation, event space, and training materials.
- Recruitment and talent acquisition: 15%-30% of the talent’s first-year salary or $5,000-$20,000+ per month, with more premium rates for more specialized or niche expertise
What is the difference between HR outsourcing and a PEO?
While both HR outsourcing companies and PEOs (professional employer organizations) help organizations hire and manage their employees, they have different functions.
Mainly, an HRO serves as an external vendor, while a PEO operates through a co-employment model. Below are more details:
| HR Outsourcing | PEO | |
| Function | Third-party vendor | Co-employer |
| Legal Liability | Client | Shares responsibility with the client |
| Services | Provides the service as needed | Controls the entire HR operations |
| Payroll, taxes, and filings | Provider handles the service, but the client remains the employer | Provider is the co-employer and administers the entire process |
| Benefits |
|
|
What questions should I ask before hiring?
Ask these questions before hiring an HR outsourcing company:
Relevant Background
- What HR functions do you cover, and what is your expertise?
- Can you provide case studies or references for companies similar to our business size, industry, and complexity?
- What is your compliance coverage per state and per country?
Services and Processes
- Can you walk me through your end-to-end processes (e.g., onboarding, payroll cycles, offboarding)?
- What HR tools and technologies do you use, and can you integrate them with my IT ecosystem?
- What is your security and data governance approach, and what are your disaster recovery commitments?
Related to Your Project
- What administrative effort is required from our team weekly/monthly?
- Can you scale services as we grow (new states/countries, headcount, acquisitions), and what changes in pricing or support model?
- What SLAs do you commit to, and who will be our day-to-day contact?
What types of businesses usually outsource their HR services?
Industry research found that 57% of companies outsource at least one HR service, proving that all types of businesses can benefit these from these types of services.
However, here are the sectors that have the highest share of HRO contracts:
- Business, financial services, and insurance companies: 22%
- Information technology: 20%
- Healthcare: 18%
- Retail: 15%
- Hospitality: 10%
Latest Trends Related to HR Outsourcing
