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If HR is too much for your business to handle in-house, outsource the responsibility to trusted companies like TriNet and Bambee.
If you have employees, you understand how challenging it can be to manage your human resources (HR) needs. Although you may have been able to take care of your HR in-house with just a few workers, the burden of HR becomes greater as you hire more workers and your business starts to grow. This is when many companies turn to HR outsourcing (HRO) services to manage some (or all) of their HR functions for them. There are great HRO services on the market, which is why we spent dozens of hours researching and testing them for you. We evaluated and broke down our top options in this guide, reviewing key factors like pricing, features, usability and support.
At business.com, we strive to provide business owners with unparalleled recommendations for the best HR software and services, along with actionable advice for navigating human resources processes, fostering a healthy company culture and improving employee engagement. We infuse our playbooks and explainers with expertise from real HR advisers, payroll consultants, retirement planners and other human resources professionals.
Across our HR reviews and product guides, every solution we recommend — whether it be a payroll platform, PEO/HRO service or employee monitoring software — is thoroughly tested, investigated and vetted independently to ensure vendor claims about products are legitimate and backed by real user experiences. As part of our commitment to fairness and accuracy, each assessment is reviewed by a top business.com editor who was not involved in the analysis process. Learn more about our editorial process.
When choosing our picks for the best HR outsourcing (HROs) services, we looked for reputable vendors that allow businesses to outsource all or only some HR responsibilities. We compared each provider’s software platform to see how they facilitated human resources...
When choosing our picks for the best HR outsourcing (HROs) services, we looked for reputable vendors that allow businesses to outsource all or only some HR responsibilities. We compared each provider’s software platform to see how they facilitated human resources functions like recruitment and onboarding, benefits administration, time tracking and payroll. We preferred HROs that helped with legal compliance and risk mitigation, and we investigated whether the vendor also offered a PEO alternative.
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When choosing our picks for the best HR outsourcing (HROs) services, we looked for reputable vendors that allow businesses to outsource all or only some HR responsibilities. We compared each provider’s software platform to see how they facilitated human resources functions like recruitment and onboarding, benefits administration, time tracking and payroll. We preferred HROs that helped with legal compliance and risk mitigation, and we investigated whether the vendor also offered a PEO alternative.
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researched
chosen
 | TriNet HRO | Paychex HRO | Bambee | Insperity HRO | ADP HRO |
|---|---|---|---|---|---|
| Rating (Out of 10) | 9.6 | 9.6 | 9.5 | 9.6 | 9.3 |
| Best For | Industry-Specific Needs | Remote Teams | Risk Mitigation | SMBs | Benefits Administrator |
| Employee minimum | 5 | 1 | 0 | 5 | 5 |
| Pricing | Rates customized per plan | Rates customized per plan | Starting at $99 per month (plus setup fee) | Rates customized per plan | Rates customized per plan |
| Contracts | Varies based on customer’s needs | Month-to-month and annual | 6-month to multiyear | Annual and multiyear | Month-to-month to multiyear |
| Employee training courses | Virtual | Virtual | Virtual | Virtual and onsite | Virtual and onsite |
| Integrations | Yes | Yes (275+) | N/A | Yes | Yes (690+) |
| Mobile app | iOS and Android | iOS and Android | None | iOS and Android | iOS and Android |
| Live chat | Yes | Yes | Yes | No | No |
| Customer support | Phone, email, live chat, contact form, Connect 360 | Phone, live chat, and a dedicated HR professional | Phone, email, live chat and a dedicated HR professional | Phone, email, and a dedicated service team | A strategic account manager; designated support representatives for items like payroll, benefits and HR |
| Review Link |
TriNet is a full-service HR solution for SMBs. We like how it offers specialized support in numerous industries, such as engineering, consulting, education, e-commerce, financial services, manufacturing, marketing and advertising, nonprofits, retail and technology. Businesses in these industries partner with TriNet for many HR services, such as payroll processing and tax administration, expense management, time and attendance tracking, employee benefits administration, risk management, workforce analytics and compensation management. We were impressed with its learning management platform with essential HR compliance training, premium learning content, and the ability for clients to upload custom training content pertinent to their business. What separates TriNet from some of its competitors is its industry-specific customer support. Its team of skilled HR experts can facilitate compliant and efficient HR processes for your business.
ADP’s benefits dashboard makes it easy for users to manage benefits administration online. Source: ADP
| Service Plan | Key Services | Pricing |
|---|---|---|
| TriNet PEO | TriNet technology platform, administrative HR services, payroll, benefits administration, risk mitigation, and employee training and development | Custom quote |
| HR Advisory | TriNet technology platform, HR guidance, policy and handbook review | Custom quote |
| Payroll Tax Compliance Manager | Payroll tax account set-ups, account recoveries, ongoing review of payroll tax accounts, payroll tax compliance review | Custom quote |
| Payroll Manager | Everything in Payroll Tax Compliance Manager, plus dedicated payroll experts, pay run reviews,
workers’ comp and payroll reports, garnishment set-up, general ledger mapping and set-up, and personalized support | Custom quote |
| HR Manager | Everything in Payroll Manager, plus a dedicated certified HR pro, third-party intermediary, employee on/offboarding, employee handbook review, HR compliance and operations guidance | Custom quote |
| Optional Add-on Features | Recruiting and onboarding with JazzHR, contractor payments, and global workforce management | Custom quote |
TriNet received a 7.9/10 rating from users who reviewed the platform on TrustRadius. Customers praised the service for its employee onboarding and training features, as well as its implementation, scalability and total value. However, some users mentioned that they had challenges contacting customer service. You may be able to mitigate this issue by opting for TriNet’s Connect 360 services.
Paychex provides comprehensive outsourcing services, including essential HR functions like remote recruiting and onboarding, time and attendance tracking, benefits administration and employee training. When we tested out its easy-to-use dashboard and intuitive mobile app, we found it incredibly convenient for anyone managing a remote workforce. The Paychex Flex mobile app also features Touch ID and Face ID authentication, allowing remote employees to securely access payroll information, submit time entries and manage benefits from anywhere.
We especially like that remote onboarding is simplified through automated workflows, digital forms and documents, and e-signature capabilities. Once employees are onboarded, they can access self-service features to manage some HR functions on their own. We like how Paychex can also act as your payroll provider and tax administrator ― ideal for small businesses that want to manage all remote employee salaries and payment details from one platform.
This Paychex dashboard example is just a quick glance at the many HR functions you can manage from your Paychex platform. Source: Paychex
| Service Plan | Key Services | Pricing |
|---|---|---|
| HR Partner Plus | Labor posters, employee handbooks, training, employee discounts and EAP, safety services and OSHA manual, HR Library, dedicated HR professional guidance | Custom quote |
| HR Pro | Everything in the HR Partner Plus plan, plus a learning management system (LMS), employee benefits, job postings, pre-employment screening, employee onboarding, performance management, document management, payroll processing and tax administration, analytics and reporting, job costing and labor distribution, state unemployment insurance services, employee self-service and mobile app, general ledger integrations | Custom quote |
| HR PEO | Everything in the HR Pro plan, plus expanded employee benefits, enhanced safety services, workers’ comp, cyber liability coverage, EPL coverage, PEO co-employment arrangement | Custom quote |
| Popular Add-On Services | Business insurance, applicant tracking, 1099s, time and attendance, voice assistant integrations, Paychex integrations | Custom quote |
Customers who reviewed Paychex on TrustRadius rated it 6.2 out of 10. They highlighted positive features such as payroll and tax filing, user-friendly software, and helpful customer support. They also like that Paychex acts as one central location for their workforce management information. However, some users said its custom reporting tool was not as intuitive as they would like.
Bambee is an HR solution that gives small businesses with up to 500 employees access to outsourced HR experts. We like how with Bambee you have access to a plethora of resources to help you mitigate the HR risks associated with hiring and managing employees. When we tested Bambee, we found it ideal for small businesses that need assistance with employee classification, HR policy creation, employee conflict resolution, payroll and tax administration, federal and state compliance and employee terminations. Other critical aspects of mitigating HR risks are proper document storage retention and creating sound business policies. Your Bambee HR manager can help create custom HR and document retention policies while maintaining compliant staff folders.
If you have any HR questions or concerns throughout the year, you can easily contact your HR manager by phone, email, chat or directly within the Bambee platform. You also have the ability to view your manager’s calendar if you would prefer to schedule a time to discuss HR or compliance needs. This level of support is especially ideal for companies looking to mitigate potential HR risks before they become a problem.
This screenshot, taken from a demo we conducted with Bambee, gives you an idea of just how easy it is to begin a corrective action within the platform. Source: Bambee
| No. of employees supported | Key Services | Price |
|---|---|---|
| 0 | Access to Bambee HR, email and chat support; four core HR policies; two custom HR policies; and two job descriptions | $99 per month (billed annually) |
| 1-4 | Access to an HR manager with unlimited phone, email and chat support; four core HR policies; two custom HR policies; and three job descriptions | $299 per month (billed annually) with a one-time setup fee of $500 |
| 5-19 | Access to an HR manager with unlimited phone, email and chat support; four core HR policies; four custom HR policies; and four job descriptions | $399 per month (billed annually) with a one-time setup fee of $500 |
| 20-49 | Access to an HR manager with unlimited phone, email and chat support; four core HR policies; eight custom HR policies; and five job descriptions | $499 per month (billed annually) with a one-time setup fee of $1,500 |
| 50-70 | Access to an HR manager with unlimited phone, email and chat support; four core HR policies; 12 custom HR policies; and five job descriptions | $1,299 per month (billed annually) with a one-time setup fee of $2,000 |
| 71+ | Custom services | Custom pricing with a one-time setup fee of $2,500 |
Bambee received a 3.6 out of 5 rating from users who reviewed the platform on Trustpilot. Customers like how accessible and helpful their Bambee HR managers are, but they note that the service pricing can get expensive.
Whether you have five employees or 5,000, Insperity has HR outsourcing solutions to fit your needs. For example, Insperity processes payroll, administers payroll tax filings, tracks employee time and attendance and administers competitive employee benefits at affordable rates. We like that Insperity can save you time by managing them with features like paperless onboarding, access to more than 50 built-in HR reports and the ability to build custom reports. We were impressed with the more than 6,500 learning resources available, including more than 300 online courses and e-learning materials on popular topics like communication, customer service and leadership. This is great for small businesses that want to foster productivity and growth.
Another great way Insperity streamlines your HR processes is by offering employee self-service capabilities. This gives employees the flexibility to manage their own HR information, even on their mobile devices. Since plans can be customized, you’re sure to find an HR solution to meet your evolving needs.
With Insperity, employers and employees alike can easily navigate through the platform to access pertinent HR information. Source: Insperity
| Service Plan | Key Services | Pricing |
|---|---|---|
| PEO for Small Business | HR administration, employee benefits, payroll, compliance assistance, personalized HR support, all-in-one HR technology | Custom quote |
| PEO for Middle Market Business | HR administration, employee benefits, payroll, compliance assistance, risk mitigation, HR support and consulting, advanced workforce technology and analytics | Custom quote |
| HCM + HR Technology Suite | HR administration, employee benefits, payroll, compliance tools and support, workforce management technology, as-needed support from an HR service team | Custom quote |
Customers who reviewed Insperity on TrustRadius rated it 4 out of 10. They highlighted the platform’s onboarding process as a key feature that they liked. However, some users didn’t like the cost, stating that it was more expensive than some competitors.
As a major HR service provider in the United States, ADP provides robust benefits options. When you’re an ADP client, you tap into a national provider with significant bargaining power with insurance and benefits providers. This ensures you can offer your employees affordable benefits like medical insurance, workers’ compensation, retirement savings plans, student loan repayment programs, flexible working arrangements, commuter benefits, family leave, professional development opportunities and discount programs.
We like that ADP’s application programming interface-driven technology syncs data automatically between its platform and benefit carriers, increasing administration speed and accuracy. It also features the ability to configure benefits plans in real time, giving employees instant visibility into any updates or changes.
We appreciate that ADP benefits can also be managed via mobile apps. Employees can view benefits information, enroll in benefits, update personal details, access benefits documents and track account usage from their mobile devices. Administrators can also manage employee enrollments, track benefit costs and send notifications on the go.
ADP’s benefits dashboard makes it easy for users to manage benefits administration online. Source: ADP
| ADP Workforce Now Service Plan | Key Services | Pricing |
|---|---|---|
| Select | ADP Workforce Now technology suite, employee onboarding, payroll and tax filing, document storage, the ADP Assist tool, employee surveys, reporting, HR workflows, employee development tracking, self-service employee portal and employee engagement resources | Custom quote |
| Plus | This plan includes everything in the Select plan, plus benefits administration (e.g., plan configuration and management, mobile enrollment, invoice auditing and carrier connections, open enrollment, and personalized decision support). | Custom quote |
| Premium | This plan includes everything in the Plus plan, as well as workforce management tools (e.g., mobile time tracking, time off management, employee scheduling, and comprehensive analytics including overtime) | Custom quote |
| Popular Add-ons | Talent acquisition and recruitment, performance management, compensation management, learning management, HR Assist, enhanced analytics, ADP Marketplace with custom API integrations | Custom quote |
ADP received a 6.2/10 rating from customers who reviewed it on TrustRadius. Users commented positively on essential HR features like employee benefits administration and payroll processing. However, others were not as pleased with the platform’s appearance, saying it looked a bit dated.
Human resources outsourcing is when a third-party performs key HR functions like hiring, compliance, payroll and benefits administration. HR outsourcing (HRO) services are often flexible, allowing you to outsource only one or all of your HR functions. Businesses with growing teams can benefit from HRO services because they provide the support your employees need at a fraction of the cost of developing an in-house HR department.
There are several benefits to partnering with an HRO company for both employers and employees, depending on the services your business needs.
Instead of wasting hours performing administrative tasks manually, you can streamline your efforts by outsourcing certain tasks. That means you can reclaim your valuable time to perform revenue-generating functions that will improve your business.
Federal, state and local employment laws are changing constantly. As a result, legal compliance has become difficult for many organizations to manage on their own, especially with the recent trend of hiring remote employees located around the state or country. Hiring an HRO to keep you compliant is often easier than trying to stay up to date with evolving laws, especially as your company operates in multiple regions.
Your HRO can help maintain the security and privacy of your employee data, including compensation and personal matters. It can also ensure your company’s compliance with federal, state and local regulations surrounding employee benefits ― healthcare, 401(k) retirement plans and time off policies ― harassment and discrimination, workplace safety measures, workers’ compensation, payroll processing and taxation, HR policies, employee discipline and termination and the Consolidated Omnibus Budget Reconciliation Act (COBRA).
Effective recruitment and onboarding processes can make a big difference in your business’s success. HROs help you not only acquire the right employees but also onboard them in a way that complies with labor and employment laws. For example, your HRO can help you distribute the necessary new-hire documents, obtain the required signatures and file the documents securely.
Some HR solutions offer templates for things like new hire packets, to help you quickly create effective onboarding materials. Source: BambooHR
If your company hires immigrants, you can benefit from an HR outsourcing service that is well-versed in international employment laws and has experience with the foreign worker hiring process. Immigration compliance at both the state and federal levels is a complicated process that your own HR staff may not have expertise in. HROs help protect your company and immigrant workers from unintended and potentially costly violations of immigration law.
Managing every HR task for your team is a big feat, even in a small business. Without an entire department to manage and track your HR needs, there is a good chance you will need to hire a service like an HRO to help you. Even if you have an internal HR manager, they can benefit from a helping hand and additional expertise. An HRO can help you meet all your company’s HR needs, even if you’re on a tight budget.
Although some HROs offer bundled plans, others allow you to create unique service plans with a la carte HR features. This flexibility is convenient for any business but especially for growing organizations that need their HR support to expand as they scale up. Instead of being limited by your HR capabilities, you can add and remove HR services as soon as they apply (or don’t apply) to your organization.
Since the services offered in an HR outsourcing plan can vary widely, so does the cost. The total cost of your HRO will depend largely on how many employees you have, which HR services you need and how long of a contract you are willing to sign. HRO plans run the gamut, costing anywhere from $50 to $1,500 per employee per month.
HR outsourcing services typically follow one of two pricing models:
A fixed monthly fee per employee is the most common of these two models.
HRO pricing can be flexible, depending on your provider. Although you’ll likely have to sign a contract, some agencies offer flexibility in the contract’s length. Some HROs offer a la carte options (which are best for those who only need a few select services) or preset bundles (which are best for those who want a more comprehensive set of services). Many HRO companies charge extra for services like employee benefits, recruiting and staffing and performance
HROs sometimes have employee or payroll minimums you must meet before you can access their services. Since HR outsourcing is better for midsize and large companies anyway, this is typically not an issue. If you are a very small business seeking HR assistance, a professional employer organization (PEO) service may be a better fit for you.
Before selecting an HR outsourcing provider, assess the HR services you need assistance with ― maybe you need to outsource all of them or only a few. Many HROs allow you to choose either a full-service package or the specific services your business needs.
Since HROs have a lot of variation in what they offer, it can be hard to know which features are most valuable to consider during the selection process. As a result, we spoke with business leaders to identify some key considerations to help you choose the right HR outsourcing company.
The way one HRO packages their services can be very different from the next. This makes it difficult to determine at a glance which vendor provides a better value. Consult with your top vendors about the exact pricing and contract requirements that are relevant to you.
Do they have employee minimums? Are some features considered “add-ons” and therefore incur additional fees? How long are their contracts? Does implementation cost extra? Consider this for the features you currently need to outsource, as well as features you may want to outsource in the future.
The key here isn’t to simply look for the vendor with the lowest pricing – it’s to find a vendor that satisfactorily meets all of your HR needs, within your budget. James-Dylan Lloyd, business development manager at Bella Virtual Staging, has experience partnering with an HRO, and he echoed the same sentiment.
“My advice would be to really think about what aspects of HR are most time-consuming or challenging for your business and choose a provider that excels in those areas,” Lloyd told us. “Don’t just go for the biggest name or the cheapest option – find a partner that aligns with your specific needs.”
Two of the most commonly outsourced HR functions are payroll and benefits administration. Ask about these features in depth. Can the HRO support payroll in the cities, states or countries you operate in? What about employee benefits? How comprehensive and affordable are those? You can assess some of these features directly by conducting a software demo.
HROs are knowledgeable about global, federal and state employment laws, so they will ensure your company complies with the local regulations anywhere you have employees. However, some HROs specialize in certain industries, making them a better fit than others.
“A top consideration was risk and compliance management because staying on top of labor laws and regulations is crucial,” said Lloyd.
Assess the HRO’s compliance measures and how proactive they are about supporting you.
If you do not have the resources or desire to hire a full-time training specialist, you can outsource this service to an HR company, many of which offer employee training and development programs. The most common skill development training that HROs provide is software and processes training, although other options are available.
If training and development are important to you, it’s important to ask an HRO about their course options. The best HR outsourcing services will work with you one-on-one to determine the best training programs for your employees.
HRO software is only beneficial if your staff knows how to use it. One of the most important features that business leaders look for in an HRO is its usability, coupled with adequate customer support. This was a key factor for Lloyd and his team.
“When evaluating HRO providers, we placed a high priority on customer support and platform usability,” he said. “We wanted a provider who could offer a seamless user experience for our team and be responsive when we needed help.”
Conduct a demo to test out the platform’s usability and see if it’s a good fit for your workers. Inquire about integrations, customizations and customer support options as well.
Just about any HR function can be outsourced. You can outsource a couple of HR functions at a time or all your HR needs together.
Here are some commonly outsourced HR features to look for:
In addition to looking for the specific HR features or services you need to outsource, it’s important that you also evaluate each vendors’ pricing and contracts, plan scalability, platform usability, integration capabilities, implementation process and ongoing customer support.
Over the years, the role of HR professionals has evolved from simple recordkeeping to becoming an essential component of a business’s executive team. HR departments are responsible for a myriad of activities that all boil down to fostering a positive employee experience. Besides coordinating employee activities, HR professionals provide conflict resolution and training, establish competitive employee benefits and compensation, help manage employment budgets and ensure companies comply with employment laws and regulations. If you don’t have an internal team to handle these responsibilities, you can partner with an HR outsourcing company to meet your needs.
Just about any HR function can be outsourced. You can outsource a couple of HR functions at a time or all your HR needs together.
Here are some commonly outsourced HR functions:
Although these are the most commonly outsourced HR services, this is not a complete list of HR functions that can be outsourced. Speak with an HRO representative if you have questions about outsourcing additional HR functions.
HROs can help you manage many HR functions, like employee screenings. Source: ADP
Implementing an HR outsourcing service requires a thoughtful and organized approach. However, it can be a tedious, time-consuming process, so here are three best practices for ensuring a successful HRO implementation:
After your HRO is implemented, it’s important to track its performance and success. As your business needs evolve, work with the HRO provider to modify the scope of services, such as scaling support or adjusting compliance needs.
If you’re still looking for the right HR outsourcing provider for your business, here are a few more top-rated contenders worth exploring. These vendors all passed our rigorous testing and evaluation process as well.
BambooHR offers a variety of useful HR functions to help you hire, manage and pay your workers. You can choose BambooHR’s Core or Pro plan and customize it with add-ons like payroll processing, time tracking and benefits administration. Every plan comes with crucial employee management tools like employee record management, time off management, employee self-service and reporting and analytics. The Pro plan takes it a step further with features for managing employee performance and experience.
Learn more in our detailed BambooHR review.
Gusto is a full-service HR platform that offers comprehensive HR tools and services like hiring and onboarding, employee benefits administration, HR insights and reporting, talent management and HR guidance and support. However, one standout feature is its payroll functionality. Employers can access full-service payroll for multiple states, multiple pay rates and schedules and international contractor payments. Gusto can register you for state payroll taxes, as well as file and pay federal, state and local payroll taxes automatically on your behalf. You can set up Gusto to run your payroll automatically each pay period. If you want to pay international employees, Gusto now offers employer-of-record (EOR) capabilities for global employee onboarding and payroll.
Learn more in our detailed Gusto review.
WorkSight is HR technology from G&A Partners ― together, the two offerings bring employers a reliable system that is great for training and upskilling workers. G&A helps develop your employees from the very beginning by offering recruitment process outsourcing services. With these services, the HRO can help find and vet the best candidates for your business. It is especially ideal for particular recruiting projects. Once employees are hired, the HR solution can help onboard and train your new hires.
Learn more in our detailed WorkSight review.
Rippling is a powerful HR and IT platform that can automate and streamline several business processes from one centralized location. Users can customize settings, automations and workflows to speed up workforce management for their teams. Rippling is available as a standalone software or with a PEO arrangement.
Learn more in our detailed Rippling review.
Companies looking for a simplified HR management solution will want to check out Justworks. This affordable HR platform offers transparent pricing with a user-friendly interface. Users praise the intuitive software for being easy to learn and navigate. It offers two PEO plans, as well as a payroll plan (without a co-employment agreement). All three plans have the ability to support employees and contractors.
Learn more in our detailed Justworks review.
To determine the best HR outsourcing services on the market, our team of HR experts and software analysts evaluated an initial list of 20 vendors. We examined each to compare pricing plans and available features, as well as the usability of associated software and the responsiveness and quality of customer support.
Based on these factors, we narrowed our list down to 11 vendors. We scheduled live demonstrations and Q&As with company representatives to more closely investigate their offerings and find out about their onboarding processes. In the end, we chose five HRO services as our top recommendations. Our experts and analysts studied each solution’s functionality and evaluated the products on 125 factors.
These factors were broken down into categories and weighted differently in our overall conclusion. The weights were determined based on how much business owners prioritize these criteria when shopping for business software and services and making purchasing decisions.
Based on these criteria, we not only determined which HR outsourcing services our readers could trust but also the ways in which each solution could best serve different business needs. Some services were better at certain tasks than others or more suited to a particular type of company. These takeaways informed the “Best for” use cases you see on this page.
To learn more about our methodology, see our full editorial process.
Yes, outsourcing your HR functions is one of the best ways to maintain legal compliance while saving money. Instead of paying salaries for an in-house HR department, you can limit your team to one HR manager and outsource any functions they need assistance with. Many HRO companies can bundle your HR functions to save you even more money. Additionally, outsourcing functions like risk and compliance management can help your company stay on top of current regulations, potentially saving you thousands in legal fees.
Unless you have an entire in-house HR department, you will likely need to outsource at least some of your HR responsibilities as soon as you start your business. A company’s HR needs are greater than one professional can manage alone and having no HR at all puts you at risk of serious legal ramifications. The specific functions you outsource ― and when you should do so ― will completely depend on your needs.
For example, if you are hiring your first employees, you may want to outsource your employee benefits administration. You should outsource HR functions as soon as you need them, especially if you don’t have an in-house person to do the job.
Although it has many advantages, HR outsourcing can have a few drawbacks as well. For example, an external company managing your HR can cause a disconnect with your staff. An external organization will not be an expert on your company culture and likely won’t focus on team building and personal development as much as an in-house HR expert could.
Outsourced HR is also less flexible than in-house HR staff. An external HR company or software provider is less likely to make special arrangements when a loyal employee has a unique request, for instance. An HRO may also take longer than an in-house HR department would to settle employee disputes or hire new recruits.
HR outsourcing services can meet all your HR needs. Whether you want to recruit and train new employees, administer employee benefits, track time and attendance, process payroll and tax filings or do all of the above with one platform, an HR outsourcing company can help. An HRO can ensure you meet legal requirements as well. As federal, state, local and industry regulations are constantly changing, it can be hard to stay up to date, so find an HRO company that is experienced in your region and industry to maintain legal compliance.
You could also outsource tedious administrative HR tasks, which gives your in-house representatives more time to focus on recruiting the right employees and fostering team growth and development.
The main difference between an HRO and a PEO service is the legal employment arrangement they operate under. When you outsource your HR functions, you are still the employer of record for your staff members and you retain full control of your business operations and data. With a PEO, the company you hire acts as a co-employer and is responsible for all your business’s HR tasks, including hiring and firing, employee training, and tax and compliance obligations.
The key to making HR outsourcing more affordable is to be very clear about what you need to outsource, and then finding a plan that meets those exact needs. This is because some plans bundle several HR features together, while others are a la carte. If you only need to outsource payroll, it wouldn’t make financial sense to pay for a full-service plan that includes payroll, HR administration, performance management and benefits administration.
You will also want to pay attention to contracts and minimum requirements to ensure you aren’t paying for more than you need. Additionally, ask about discounts — some HROs offer discounted rates for certain companies like nonprofits and large enterprises.
HR outsourcing services don’t typically offer free trials, but you should be able to see a product demo to assess the platform before you buy it.