Skip to main content

The best HR outsourcing services help you delegate time-consuming HR functions like payroll, benefits administration, and compliance, so you can focus on strategic priorities and business growth.

When you're leading a growing team without a dedicated HR department, it's easy to get bogged down in manual tasks, legal complexity, and inconsistent processes that affect employee experience and increase risk.

From handling new hire paperwork to staying on top of labor laws, outsourcing HR to the right provider can save you time, reduce liability, and ensure your people operations run smoothly. These services act as an extension of your team—offering expertise, automation, and scalability without the overhead of building everything in-house.

After years of working with small and mid-sized businesses and evaluating dozens of HR partners, I’ve curated this guide to the top HR outsourcing services available today.

You’ll find options that are flexible, cost-effective, and built to support your business through each stage of growth—from your first hire to a fully remote, multi-state workforce.

Why Trust Our Reviews

We've been testing and reviewing HR software + services since 2019. During that time, we've tested more than 2,000 tools and 200 service providers for different HR use cases and written over 1,000 comprehensive software reviews.

As HR professionals ourselves, we know how critical and difficult it is to make the right decision when selecting a new HR service provider to work with.

We invest in deep research to help our audience make better purchasing decisions. Learn how we stay transparent, and take a look at our review methodology.

Best HR Outsourcing Services Summary

This comparison chart summarizes pricing details for my top HR outsourcing solutions to help you find the best HRO provider for your budget and business needs.

Tool Best For Trial Info Price
1

Best HR outsourcing solution for global hiring and compliance

Free trial + demo available

From $29/month Website
2

Best HR outsourcing partner for offering affordable health insurance plans

Free demo available

From $8/user/month (billed annually) Website
3

Best full-service HR solution for US-based businesses

Free demo available

Pricing upon request Website
4

Best for India HR compliance

Free demo available

From $99/employee/month Website
5

Best for global payroll

Free demo available

Pricing upon request Website
6

Best for global payroll management

Free demo available

Pricing upon request Website
7

Best PEO and EOR services

Not available

From $29/contractor/month to $499/EOR employee/month Website
8

Best HR outsourcing provider for industry-specific HR expertise

Trial options available

Pricing upon request Website
9

Best for building teams in India

Free demo available

Pricing upon request Website
10

Best for unified services and technology

Free demo available

Pricing upon request Website

Reviews of the Best HR Outsourcing Companies

Below are my detailed summaries of the best HR outsourcing service providers that made it onto my shortlist. My reviews offer a look at each provider’s key services, unique specialties, and pros & cons to help you find the best one for your needs.

Best HR outsourcing solution for global hiring and compliance

  • Free trial + demo available
  • From $29/month
Visit Website
Rating: 4.8/5

Deel is a comprehensive HR platform and outsourcing service designed to assist with global hiring and compliance. The platform provides a seamless experience for companies looking to expand their workforce internationally, combining advanced technology with a dedicated in-house team of experts. 

Why I picked Deel: I like that Deel offers both a platform and in-house experts. It enables companies to hire employees in over 150 countries without the need to establish local entities. This is particularly beneficial for businesses looking to scale rapidly across borders. Deel handles all aspects of compliance, ensuring that companies adhere to local labor laws and regulations. Additionally, Deel provides extensive in-house support for immigration, relocation, and visa processes, making it easier for businesses to bring in talent from around the world. 

Key Services:

Other key capabilities of Deel's platform and services include automated contract generation, localized contract templates, payroll management, benefits administration, expense management, time-off tracking, equity management, contractor payments, employee onboarding, and workforce management.

Customer Support:

Deel offers 24/7 customer support and can be reached via live chat or email. The platform also offers a comprehensive help center with detailed articles and guides to assist users in resolving common issues. 

Location: San Francisco, California

Pros and cons

Pros:

  • Automated payroll processing
  • In-house experts for relocation and visa support
  • Prioritizes global and local compliance

Cons:

  • No in-app time tracking
  • No mobile app available

New Product Updates from Deel

Introducing Deel AI Workforce
Dashboard displaying Deel's Hiring Guru performance.
August 24 2025
Introducing Deel AI Workforce

Deel has launched the AI Workforce, a set of specialized agents designed to handle repetitive HR, payroll, and compliance tasks with speed and accuracy. These AI agents don’t just assist—they execute tasks from start to finish. For more information, visit Deel's official site.

Best HR outsourcing partner for offering affordable health insurance plans

  • Free demo available
  • From $8/user/month (billed annually)
Visit Website
Rating: 4.8/5

Rippling offers professional employer organization (PEO) services in addition to its well-known HR software. Their PEO clients benefit from Rippling's centralized HR platform that manages key business operations, including payroll, benefits, and IT, with additional HR experts for you to call on for specific needs.

Why I picked Rippling: I included Rippling in this list because of their access to big-company benefit packages. You can use Rippling's PEO service to offer health insurance to your US-based staff, or offer other benefits packages such as 401(k) retirement plans, health spending accounts, and other flexible options.

Once you're signed up, your employees can also access expert assistance through their Rightway Health Guide, which is an employee-facing app to assist with benefits enrollment, health plan education, and other common FAQs employees have about health plans.

Key Services:

Rippling's combined software and PEO services extend beyond just benefits administration. They can also assist with monitoring compliance, including ACA and COBRA administration, and other complex issues such as claims for wrongful termination, harassment, or discrimination.

Through their HR platform, they can also assist with device management, helping you manage and track employee laptops, apps, and software subscriptions at scale.

Customer Support:

Rippling offers a solid customer support framework, with assistance available through phone, email, or their self-service help wiki as needed.

Location: San Francisco, USA

Pros and cons

Pros:

  • Integrates well with other business tools
  • Simplifies the payroll process, reducing the chances of errors
  • Centralized system for handling multiple business operations

Cons:

  • PEO services are for US-based customers only
  • Pricing details are not transparent

New Product Updates from Rippling

July 20 2025
Rippling Now Integrates with Points North

Rippling's new integration with Points North automates certified payroll reporting, ensuring compliance with Davis-Bacon and prevailing-wage laws by synchronizing data in real time and reducing manual errors. More details at Rippling Blog.

Best full-service HR solution for US-based businesses

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 5/5

ADP TotalSource is a comprehensive Professional Employer Organization (PEO) designed to help businesses manage their HR tasks, payroll, and benefits administration. 

Why I picked ADP TotalSource: ADP TotalSource provides a full range of services including payroll, benefits administration, compliance, and talent management. This holistic approach ensures that businesses can manage all their HR needs through a single, integrated platform.

For instance, ADP TotalSource offers advanced payroll solutions that ensure employees are paid accurately and on time, with support for various payment methods and compliance with federal, state, and local tax regulations. It also offers support from a wide range of experts, from payroll and benefits specialists to technology experts.

Key Services:

Aside from payroll and compliance, ADP TotalSource also offers new hire onboarding assistance, HR document management, an employee self-service portal, workers' compensation management, online learning courses, and full-service garnishments.

Customer Support:

ADP TotalSource offers a dedicated HR expert who can help you with both day-to-day support and strategic guidance. It also offers access to specialists in various areas of HR management.

Location: Roseland, New Jersey (but services all 50 states)

Pros and cons

Pros:

  • Comprehensive HR management
  • Strong legal compliance tools
  • Access to HR experts who can offer personalized advice and support

Cons:

  • Platform could offer more flexibility
  • Onboarding can be complex

Best for India HR compliance

  • Free demo available
  • From $99/employee/month
Visit Website
Rating: 4.7/5

Wisemonk is a platform that helps companies hire, pay, and equip talent in India without needing local entities or bank accounts. It offers services like employer of record (EOR), payroll management, and equipment procurement, all supported by expert assistance and technology.

Why I picked Wisemonk: I like its comprehensive employer of record (EOR) service. This allows your company to legally employ workers in India without setting up a local entity, handling employment contracts, compliance with Indian labor laws, and payroll processing. This means you can quickly and compliantly expand your team in India, saving time and reducing administrative burdens. Another valuable feature is Wisemonk's equipment management service. They assist in procuring, allocating, and scheduling the delivery of necessary equipment for your employees.

Key Services:

Other key services include tax optimization and planning services that help both employers and employees navigate the complexities of the Indian tax system efficiently. Additionally, Wisemonk offers a personalized dashboard, giving you an easy way to manage and track employee information and payroll details. They also provide an employee self-service portal, empowering your team members to access their pay slips and manage their benefits independently. 

Customer Support:

Wisemonk provides customer support for various HR needs to help you expand and manage your team in India.

Location: Bengaluru North, Karnataka 

Pros and cons

Pros:

  • Comprehensive compliance management ensures adherence to local laws
  • Efficient equipment lifecycle management for remote teams
  • Flexible benefits administration caters to diverse employee needs

Cons:

  • Limited to the Indian market
  • Could offer built-in time tracking

Best for global payroll

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.5/5

Atlas HXM is a global platform that helps businesses hire and manage employees in over 160 countries without needing a local entity. It offers solutions for onboarding, compliance, and payroll, making international expansion more straightforward.

Why I picked Atlas HXM: Atlas HXM offers direct Employer of Record (EOR) services. Unlike others that rely on third parties, Atlas owns its entities in more than 160 countries, ensuring consistent compliance and reducing risks associated with international hiring. Another benefit is Atlas HXM's global payroll management. The platform handles complex payroll requirements across various countries, ensuring employees are paid accurately and on time, which is crucial for maintaining trust and satisfaction within your international team.

Key Services:

Other key services include global compliance management, benefits administration, tax compliance and filing, local labor law adherence, visa and immigration support, employee data management, time and attendance tracking, performance management, reporting and analytics, mobile accessibility, customizable HR solutions, and multi-currency support.

Customer Support:

Atlas HXM offers 24/7 customer support to assist with onboarding, compliance, and payroll management. 

Location: Chicago, Illinois

Pros and cons

Pros:

  • Self-service portal for employees
  • Direct EOR model for consistent compliance
  • Comprehensive global payroll management

Cons:

  • May not be ideal for smaller businesses
  • Potential learning curve with its comprehensive features

Best for global payroll management

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 5/5

TopSource Worldwide provides global employer of record (EOR) and HR outsourcing services to help businesses hire, pay, and manage employees in more than 180 countries. Their clients benefit from TopSource’s ability to handle payroll, compliance, and contractor management across multiple regions, with access to HR advisors for country-specific guidance.

Why I picked TopSource Worldwide: I included TopSource because of its global payroll coverage, supporting businesses with accurate, compliant payments in over 130 countries. For companies expanding internationally, their direct EOR services remove the need to set up local entities, making it easier to build distributed teams quickly. They also provide support for talent acquisition, immigration, and global mobility, which helps companies manage international growth without getting bogged down in local regulations.

TopSource also offers additional services like transactional accounting and business process outsourcing, giving companies more ways to reduce administrative workload while staying compliant worldwide.

Key Services:

TopSource Worldwide provides employer of record services, global payroll management, talent acquisition support, HR advisory, global mobility and immigration services, contractor management, entity setup and management, transactional accounting, and business process outsourcing.

Customer Support:

Clients receive dedicated support backed by in-country HR experts, as well as advisory services tailored to local laws and compliance.

Location: Bristol, United Kingdom (with operations worldwide)

Pros and cons

Pros:

  • Contractor management with compliance oversight
  • Employer of record across 180+ markets
  • Global payroll compliance in 130+ countries

Cons:

  • Pricing transparency could be improved
  • Limited customization for unique business needs

Best PEO and EOR services

  • From $29/contractor/month to $499/EOR employee/month
Visit Website
Rating: 4.5/5

Omnipresent is a global employment platform that helps businesses hire, onboard, pay, and manage employees and contractors worldwide. 

Why I picked Omnipresent: For those looking to outsource their HR functions, Omnipresent offers comprehensive PEO services in the United States and the UK. They handle payroll calculations and ensure compliance with local labor laws. Additionally, Omnipresent offers access to better employee benefit rates by leveraging their pool of customers and employees. This means your team can enjoy a wider range of benefits at more affordable rates, enhancing employee satisfaction and retention. For those without an established entity, Omnipresent also has employer-of-record (EOR) services, allowing businesses to hire and pay employees in over 160 countries.

Key Services:

Omnipresent provides visa and immigration support, helping companies secure work permits and visas for international employees. They also offer employee onboarding assistance, streamlining the process with localized contracts and compliance guidance. Additionally, Omnipresent provides termination and offboarding support, ensuring that employee exits are handled legally and smoothly in accordance with country-specific regulations.

Customer Support:

Omnipresent provides dedicated customer support through a team of global employment experts who assist with compliance, payroll, benefits, and HR-related queries. It also offers a robust help center and learning academy.

Location: London, United Kingdom

Pros and cons

Pros:

  • Strong local expertise in employment regulations
  • Localized benefits adminstration
  • Handles tax compliance across multiple countries

Cons:

  • Some services may not be available in all desired locations
  • PEO services only available in the US and UK

Best HR outsourcing provider for industry-specific HR expertise

  • Trial options available
  • Pricing upon request
Visit Website
Rating: 3.8/5

Insperity delivers comprehensive HR solutions to small and midsize businesses. They offer both HCM (human capital management) software in addition to their PEO (professional employer organization) services, which are run by their in-house experts in payroll, performance, safety, and other HR-related compliance issues.

Why I picked Insperity: I included Insperity in this list because of its blend of HR software and services that can be tailored to companies across numerous business sectors. Their team of HR specialists has industry experience across numerous sectors, including information technology, manufacturing, finance, insurance, construction, retail & wholesale, engineering, legal services, healthcare, and non-profits.

Key Services:

Insperity offers a range of HR services that cover all aspects of HR and employee management. From payroll processing and employee benefits administration to risk management and compliance assistance, they provide a consolidated platform for managing diverse HR functions efficiently.

Customer Support:

Insperity maintains customer support that is both accessible and responsive, providing assistance through various mediums including phone and online portals.

Location: Kingwood, USA

Pros and cons

Pros:

  • Tailored solutions to suit different business needs
  • Streamlines various HR tasks under one platform
  • Offers a comprehensive range of HR services

Cons:

  • Some clients mention a complex contract structure
  • Only available for US organizations

Best for building teams in India

  • Free demo available
  • Pricing upon request

Remunance is an Employer of Record (EOR) and Professional Employer Organization (PEO) that assists global businesses build teams in India by managing essential HR functions. 

Why I picked Remunance: I chose Remunance for its comprehensive talent acquisition services. They assist in identifying and recruiting the right talent, ensuring that new hires align with your company's values and goals. This support is invaluable for businesses looking to establish a presence in India without navigating the complexities of local hiring processes. Additionally, Remunance offers robust compliance management. They ensure adherence to Indian labor laws, tax regulations, and other statutory requirements, mitigating legal risks and fostering positive employer-employee relationships. 

Key Services:

Other key services include payroll administration, which ensures timely and accurate salary disbursements, enhancing employee satisfaction. They also provide onboarding and offboarding services, facilitating smooth transitions for employees joining or leaving your organization. Remunance even offers IT and infrastructure support, setting up the necessary technological framework for your operations in India. 

Customer Support:

Remunance offers dedicated customer support for your various HR needs.

Location: Pune, India

Pros and cons

Pros:

  • Comprehensive EOR services
  • Expertise in local compliance reduces legal risks
  • Efficient payroll processing ensures timely compensation

Cons:

  • Dependence on Remunance for compliance may limit direct control
  • Limited to India

Best for unified services and technology

  • Free demo available
  • Pricing upon request

HSP Group is an HR outsourcing provider focused on helping businesses manage global expansion. Their team pairs expert-led guidance with a proprietary tech platform—GateWay—to simplify HR operations across borders. From payroll to compliance, they offer one partner to manage your entire international workforce footprint.

Why I picked HSP Group:

I picked HSP because they don’t just handle one part of the global HR equation—they manage it all. If you’re expanding into multiple countries, they help you set up legal entities, stay compliant, and run payroll without needing separate vendors for each task. Their all-in-one model cuts down on coordination issues and gives you a clear path to scale. I also like that their GateWay platform gives you visibility into regulatory deadlines and documentation so you can avoid compliance missteps.

Key Services:

Services include HR administration, employer of record (EoR), payroll processing, global mobility, and tax compliance. You’ll also get support with setting up entities, transitioning from EoR to local operations, and managing in-country obligations across 60+ countries.

Customer Support:

You get a dedicated team backed by in-country specialists. HSP’s experts are available for ongoing advisory and operational support, and clients can connect directly with consultants when navigating country-specific complexities.

Location: Tampa, Florida.

Pros and cons

Pros:

  • Unified platform for global HR
  • Smooth EoR-to-entity transition
  • Real-time compliance tracking system

Cons:

  • Integrations not clearly documented
  • No pricing publicly available

Other HR Outsourcing Services

Below is a list of additional HR outsourcing companies which didn’t make it into my top 10 shortlist, but are still worth taking a closer look at:

  1. myHR Partner

    HR outsourcing partner for tailored outsourced services

  2. ExtensisHR

    HRO provider for flexible HR service arrangements

  3. Bright + Early

    HR outsourcing partner for startups

  4. Castle HR

    Fractional HR services for North American companies

  5. VeroHR

    HR outsourcing partner for UK or European companies

  6. Remote People

    For global EOR and payroll

  7. Paylocity

    For compliance risk management

  8. Trinet

    For outsourcing complex HR issues

  9. Bambee

    For affordable HR services

  10. Gusto

    For outsourcing payroll tax filings

Many boutique HR consulting firms also offer HR outsourcing support, in case you'd like more options to review.

What are HR Outsourcing Services?

HR outsourcing services are third-party providers that handle some or all of a company’s human resources functions. These services can include payroll processing, benefits administration, compliance management, employee onboarding, recruitment, and more.

By outsourcing these tasks, businesses can reduce administrative burdens, minimize legal risks, and gain access to expert HR support without hiring a full in-house team.

HR outsourcing is especially useful for small to mid-sized companies that need scalable, cost-effective solutions to manage their workforce efficiently.

Selection Criteria for HR Outsourcing Services

Choosing the right HR service company is a critical decision that can have lasting impacts on your business. When selecting an HR outsourcing service, it’s important to focus on the services provided and how they align with specific needs and pain points.

I’ve researched these providers extensively to understand how their offerings can free teams from time-consuming tasks and optimize operations. These services often include payroll, employee benefits, compliance management, and more—key areas that HR teams typically want to streamline.

Core HR Services (25% of total score): To be considered for inclusion in this list, each service had to fulfill these common use cases first:

  • Managing payroll and employee benefits
  • Ensuring compliance with labor laws
  • Handling recruitment and onboarding
  • Managing employee performance and relations
  • Offering time and attendance tracking

Additional Standout Services (25% of total score): To help me find the best HR service providers out of numerous available options, I also kept a keen eye out for unique offerings, including the following:

  • Advanced analytics and reporting capabilities
  • International payroll or global compliance support
  • AI-driven recruitment tools for candidate screening
  • Personalized employee engagement programs
  • Providing mobile-first solutions for remote teams

Industry Experience (10% of total score): To evaluate the industry experience of each HRO provider, I considered the following:

  • Years of experience in the HR outsourcing industry
  • Credentials and certifications of key staff
  • Specialized knowledge in specific industries or regions
  • Experience in handling large or complex teams
  • Consistent track record of solving HR challenges

Customer Onboarding (10% of total score): To get a sense of each HR service provider's customer onboarding process, I considered the following factors:

  • Availability of quick-start guides and templates
  • Hands-on service tours to guide new users
  • Access to training videos and live webinars
  • Chatbots and dedicated support for real-time assistance
  • Seamless migration of data and services from existing platforms

Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:

  • Availability of 24/7 customer support
  • Dedicated account managers for personalized assistance
  • Multi-channel support options (phone, chat, email)
  • Fast response times for issue resolution
  • Ongoing support for implementation and service updates

Value for Price (10% of total score): To gauge the value of each service, I considered the following factors:

  • Competitive pricing models compared to services offered
  • Transparent pricing without hidden fees
  • Tiered service options to match various business sizes and needs
  • Ability to scale services up or down as needed
  • Cost savings potential by reducing internal HR workload

Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real HR teams are with a third-party HR service provider. Here are the factors I considered:

  • Positive reviews reflecting user satisfaction
  • Consistent feedback on ease of use and customer support
  • Reviews mentioning long-term reliability and trustworthiness
  • High ratings for service responsiveness and issue resolution
  • Success stories of businesses improving HR efficiency

Using this assessment framework helped me identify HR service providers that go beyond basic requirements to offer additional value through unique services, long-standing industry experience, smooth client onboarding, effective customer support, and overall value for price.

How to Choose an HR Outsourcing Services Provider

It’s easy to get bogged down in long lists of services and complex pricing structures. To help you prioritize the things that matter most for your business, keep the following factors in mind:

FactorWhat to Consider
Business ObjectivesEnsure the provider aligns with your strategic goals. For example, if you’re expanding globally, look for expertise in international HR.
Service Scope and SLAsCheck the breadth of services and service-level agreements. Make sure they cover all your HR needs, from payroll to compliance, with clear performance guarantees.
Support AvailabilityConsider the availability of customer support. Look for 24/7 support if your team operates in multiple time zones or has round-the-clock HR needs.
Costs and Pricing StructureAnalyze the pricing model for transparency and fit. Ensure it’s flexible, with no hidden fees, and matches your budget, whether you need fixed or usage-based pricing.
Communication and ReportingLook for clear communication channels and detailed reporting. Ensure they provide regular updates and insights into HR metrics that are relevant to your business.
Technology IntegrationVerify the provider’s ability to integrate with your existing systems. Seamless integration can save your team time and minimize disruptions.
Industry ExperienceEvaluate the provider’s experience in your industry. Prior knowledge can lead to a deeper understanding of the specific regulatory and operational challenges you face.
ScalabilityEnsure the provider can scale with your business. Whether you’re growing or downsizing, they should adapt to your changing HR needs.

Key HR Outsourcing Services

When choosing an HR outsourcing company to support your needs, it's important to focus on the essential services that are key in this field. Here are the most important HR outsourcing services to be aware of:

  • Strategic HR Consulting: These services help management teams create and administer action plans to ensure your goals match your business objectives. This can involve strategies for hiring the right people or ways to keep employees engaged and motivated.
  • Comprehensive Workforce Management: This includes services like payroll management, benefits administration, and time and attendance tracking, ensuring your workforce runs smoothly.
  • Regulatory Compliance Assistance: This service provides advice and solutions to ensure your business meets all the legal and HR-related rules and regulations of your industry.
  • Employee Training and Development: This focuses on programs and initiatives to improve your employees' skills and knowledge, fostering a culture of continuous learning and development.
  • Performance Management: These services are focused on setting up and keeping track of performance goals to help evaluate employees and plan their future career growth and development.
  • Recruitment Outsourcing: These services, often referred to as recruitment process outsourcing (RPO) services, can run your entire hiring cycle, from sourcing to screening, interviewing, and onboarding hired candidates, helping teams save time on in-house recruitment tasks.
  • Employee Benefits Administration: Outsourcing benefits administration simplifies the management of health, retirement, and other employee benefits, allowing us to offer competitive packages without the administrative burden.
  • Employee Relations and Conflict Resolution: Employee relations services ensure that conflicts and disputes are handled professionally, reducing internal tension and protecting the company from potential legal complications.
  • Payroll Processing: Managing payroll is complex and error-prone, but a pro of payroll outsourcing services (like a PEO partnership or an employer of record agreement) can reduce errors, save time, and take the stress of compliance management off your desk completely.

Benefits of HR Outsourcing Services

Partnering with an HR outsourcing services provider offers several benefits for your team and your business. Here are a few you can look forward to:

  • Cost savings: Reduces expenses by outsourcing HR tasks, such as payroll and benefits administration, thereby freeing up resources for core business activities.
  • Compliance assurance: Keeps your business aligned with labor laws through expert compliance support, minimizing legal risks.
  • Talent acquisition: Enhances your recruitment efforts by leveraging professional staffing services to find suitable candidates.
  • Employee satisfaction: Enhances the overall employee experience through effective benefits administration and employee relations management.
  • Scalability: Allows your business to grow or downsize with flexible HR solutions that adapt to changing needs.
  • Focus on strategy: Frees up your internal team to concentrate on strategic projects while routine HR tasks are managed externally.
  • Access to expertise: Provides you with specialized HR knowledge and skills that might not be available internally, improving overall HR effectiveness.

Costs and Pricing Structures of HR Outsourcing Services

HR outsourcing services typically come at a custom price to accommodate various business needs, sizes, and circumstances. Providers generally work within one of the following pricing structures:

  • Subscription-based: Charges a recurring fee, usually monthly or annually, for ongoing services.
  • Project-based: Fees are determined by the scope and duration of a specific project or assignment.
  • Per employee: Costs are based on the number of employees being serviced, making it scalable for growing businesses.
  • Tiered pricing: Offers different levels of service at varying price points, allowing businesses to choose based on their needs.
  • Flat fee: A one-time charge for specific services or consultations, offering predictability in costs.

Key Factors That Influence HR Outsourcing Services Pricing

Beyond the specific pricing model, here are some additional factors that can influence the cost of HR outsourcing services:

  • Customization needs: Tailoring services to fit specific business requirements can increase costs due to additional resources and time needed.
  • Industry regulations: Compliance with specific industry standards or regulations might require specialized expertise, affecting the price.
  • Number of employees: The more employees you have, the higher the cost, as services scale with your workforce.
  • Service complexity: The range and complexity of HR services required can drive costs up, especially if they involve intricate processes.
  • Geographic reach: Supporting international operations might incur higher costs due to varying legal and compliance requirements.

Being aware of these factors before you start seeking out custom quotes from providers helps you get a sense of what to expect, and compare and contrast quotes more effectively.

Frequently Asked Questions about HR Outsourcing Services

Still wondering how HR outsourcing services work, or how you can find the best one for your HR needs? These answers to popular FAQs should help clear things up:

What types of HR functions are most typically outsourced?

The HR functions most commonly outsourced are:

  • Payroll and Tax Administration

  • Benefits Administration

  • Recruitment and Staffing

  • Compliance and Risk Management

  • Training and Development

How much do HR outsourcing services usually cost?

The cost of HR outsourcing services can vary widely depending on the range and depth of services required. Typically, the pricing can start from as low as $50 per employee per month for basic services and can go up to $150 or more for more comprehensive solutions.

The cheapest services usually include basic administrative tasks such as payroll processing and employee benefits management. On the other hand, the most expensive services often include strategic HR consulting, which involves developing and implementing sophisticated HR strategies aligned with the business goals.

What pricing models do HR outsourcing companies use?

The common pricing models adopted by HR outsourcing companies are:

  • Per Employee Per Month (PEPM): A pricing model where the cost is determined based on the number of employees in your company.
  • Project-Based: Here, the pricing is set for a particular project or a set of tasks.
  • Retainer Model: A fixed fee is charged monthly or annually for ongoing services.

Will an HR outsourcing company customize the services they offer for my needs?

Yes, most HR outsourcing companies offer customizable service packages, allowing you to choose the services that align with your business needs and budget, helping you get the best value for your investment.

How can you evaluate an HRO service's value and reputation?

When evaluating and HRO company, I put a strong emphasis on examining the true value their services will offer to your existing HR staff. To do that, consider the depth and breadth of services offered, the expertise of the team, and the level of customization and personal attention that each company provides.

Furthermore, I recommend requesting client testimonials or case studies to get a sense of the impact these companies have had on businesses. This way, you can ensure that these recommendations are not only cost-effective but also provide a robust return on investment, adding substantial value to your business in the long run.

What’s Next:

If you're in the process of researching HR outsourcing services, connect with a SoftwareSelect advisor for free recommendations.

You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.

Kim Behnke
By Kim Behnke

Kim Behnke is an HR software writer and analyst for People Managing People, drawing on nearly a decade of hands-on experience in human resources. With a background spanning recruitment, onboarding, performance management, training, policy development, and HR analytics, she brings a deep understanding of the challenges HR teams face and how technology can solve them. Kim holds degrees in psychology, writing, and technical communication, and is a Certified Digital HR Specialist through the Academy to Innovate HR. Her work is driven by a passion for streamlining systems and optimizing workflows to help HR teams work smarter.