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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
Our Top Picks for 2024 | TriNet HRO | Bambee | Paychex HRO | Insperity HRO | ADP HRO |
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Rating (Out of 10) | 9.6 | 9.5 | 9.4 | 9.6 | 9.4 |
Best For | Industry-Specific Needs | Risk Mitigation | Remote Teams | SMBs | Benefits Administration |
Employee minimum | 5 | 0 | 1 | 5 | 5 |
Pricing | Rates customized per plan | Starting at $99 per month (plus setup fee) | Rates customized per plan | Rates customized per plan | Rates customized per plan |
Contracts | Annual | Annual and multiyear | Annual | Annual and multiyear | Month-to-month to multiyear |
Employee training courses | Virtual | Virtual | Virtual | Virtual and onsite | Virtual and onsite |
Integrations | Yes | N/A | Yes (200+) | Yes | Yes (700+) |
Mobile app | iOS and Android | None | iOS and Android | iOS and Android | iOS and Android |
Live chat | Yes | Yes | Yes | No | No |
Customer support | Phone, email, live chat, contact form, Connect 360 | Phone, email, live chat and a dedicated HR professional | Phone, 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.
This screenshot, taken from a demo we conducted with TriNet, shows how clean and user-friendly the platform is. Source: TriNet
Service Plan | Key Services | Add-On Services | Price |
---|---|---|---|
TriNet HR Platform (Essentials) | Automated onboarding, employee management, time off tracking, scheduling, integrations, analytics dashboard and mobile app | Payroll tax compliance manager, payroll manager, HR manager, payroll tax compliance audit, HR operations audit | $8 per employee per month (billed annually) |
TriNet HR Platform (Growth) | Everything in Essentials, plus configurable people analytics, compensation management and performance management | Payroll tax compliance manager, payroll manager, HR manager, payroll tax compliance audit, HR operations audit | $16 per employee per month (billed annually) |
TriNet HR Platform (Zen) | Everything in Growth, plus payroll, employee engagement surveys and a people hub | Payroll tax compliance manager, payroll manager, HR manager, payroll tax compliance audit, HR operations audit | $27 per employee per month (billed annually) |
TriNet PEO | TriNet technology platform, administrative HR services, payroll, benefits administration, risk mitigation and employee training and development | Global payments, contractor payments | Custom quote |
TriNet received a 7.1/10 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.
Bambee is an HR solution that gives businesses access to outsourced HR experts. We like how with Bambeeyou 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.
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 4/5 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.
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. 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 |
---|---|---|
Paychex Flex Select | Payroll and tax administration, analytics and reports, labor posters, employee self-service, financial wellness and cashflow assistance and an HR library | Custom quote |
Paychex Flex Pro | Everything in the Select plan, plus garnishments, general ledger service, pre-employment screening, employee handbook builder, state unemployment insurance service and workers’ compensation reports | Custom quote |
Paychex Flex Enterprise | Everything in the Pro plan, plus performance management, document management, job costing and paycheck preview and approval | Custom quote |
Paychex Flex Add-On Services | Garnishments, general ledger service, same-day payments, expense management, pre-employment screening, employee handbook builder, performance management, job posting, recruiting, employee onboarding, enhanced learning library, state unemployment insurance service, document management, job costing, HR analytics, time and attendance, learning management, and workers’ compensation, business insurance, employee benefits and integrations | Custom quote |
Paychex PEO | Paychex Flex technology, payroll, employee benefits, compliance and safety, and HR support and guidance | Custom quote |
Customers who reviewed Paychex on TrustRadius rated it 6.6 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.
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. 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. 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 4.4 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, family leave and professional development opportunities.
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.
ADP’s benefits dashboard makes it easy for users to manage benefits administration online. Source: ADP
Service Plan | Key Services | Pricing |
---|---|---|
ADP TotalSource | ADP Workforce Now technology suite, employee onboarding, employee benefits administration, payroll, document management, online learning courses, reporting, compliance support, workers’ comp and claims management, unemployment claims administration, and a team of dedicated support representatives with full-service implementation | Custom quote |
Popular Add-ons | Enhanced talent suite (recruitment, performance and compensation management; succession planning, talent strategic support), full-service recruitment and resume search service, employee engagement and leadership training, time tracking and scheduling, ADP Marketplace with custom API integrations | Custom quote |
ADP received a 6.1/10 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 exactly what it sounds like: the process of outsourcing your HR functions to a third-party service. While many businesses can handle their HR functions internally through an HR manager or HR department, others turn to experienced third-party vendors like HRO services. HRO services are often flexible, allowing you to outsource only one or all of your HR functions. Some HR functions that are commonly outsourced include recruitment, benefits administration, payroll, time and attendance and legal compliance.
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:
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.
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
HRO plans cost between $50 and $1,500 per employee, per month, depending mainly on the size of your business and the services you need.
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.
There are several benefits to partnering with an HRO company for both employers and employees, depending on the services your business needs.
Hiring an HRO service to take care of your HR processes can save your business time and money. 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.
Hiring an internal HR staff can cost 50 percent more than outsourcing your HR functions, according to Asure Software.
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 a myriad of 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 can make a big difference in your business’s success. An HRO can streamline your recruiting, hiring and onboarding processes to ensure you hire the best members for your team. 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.
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.
When 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.
Regardless of how many HR services you need to outsource, the HRO you choose should have expertise in your industry and state’s employment compliance to insulate your company from penalties or lawsuits.
A full-service HRO is a good option if you own a small company and cannot yet afford to hire HR personnel. It provides the resources that an in-house HR staff could without the expense of hiring your own team. A full-service HRO is also advantageous if you have workers in different parts of the U.S. or the world. 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.
When companies skimp on HR, they put the business and their employees at risk. A full-service HRO helps you appropriately manage day-to-day HR tasks like reporting misconduct and ensuring workplace safety compliance. These services also work closely with your payroll team to handle compensation. In addition to day-to-day tasks, you can enroll in services like recruiting and employee training.
Partial outsourcing is recommended for companies that have an in-house HR staff but need extra help. For example, perhaps you have an HR representative who handles your recruiting strategy and ensures the correct filing of your employment paperwork, but you need help with employee development. 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. The best HR outsourcing services will work with you one on one to determine the best training programs for your employees.
Other common partial outsourcing services are payroll processing, employee screenings and background checks, employee recruitment and immigration compliance.
HROs can help you manage many HR functions, like employee screenings. Source: ADP
During your research on HR outsourcing, you may also see references to professional employer organizations or PEOs. While many of the companies we reviewed offer both HR outsourcing and PEO services, they are not the same thing.
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.
Whether you should use an HRO or a PEO depends on your business’s needs. If you need help with a few basic administrative tasks, like payroll and benefits management, an HRO might be your best option. If you’d rather have an expert company shoulder the full legal and financial responsibilities of employing your staff members, hire a PEO.
If you are interested in learning more about PEOs and the companies we recommend, check out our selection of the best PEO service providers.
If you need to partner with a PEO right now but think you’ll want to switch to HR outsourcing later or vice versa, consider a company that offers both.
If you’re still looking for the right HRO 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.
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. After whittling our list down to 11, 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
When outsourcing HR functions, you may not be the one making the HR decisions, but you will be the one experiencing the benefits or drawbacks of those decisions. If you have an HR outsourcing service managing any of your HR functions poorly, your business is going to suffer. This is why it is paramount to thoroughly research HRO providers to ensure you are partnering with a reputable company that matches your organization’s needs.
Additionally, outsourcing any business process always comes with a security risk. Most HRO companies use web-based PEO software, leaving your business’s information ― and that of your employees ― potentially vulnerable to security threats. Always check an HRO’s security measures before hiring it, especially if your business is in a highly regulated industry.
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.
As workplace trends continue to change throughout 2024, we expect the demand for human resources outsourcing to keep growing. There are several factors that play into this, such as the hybrid work environment, global expansion, younger generations taking over the workforce, the increase in AI and automation, employee health and development and the increasingly complicated need to comply with state and federal regulations. In-house HR staff may have difficulty staying up to date with changing trends and regulations and HR missteps can have expensive consequences for small businesses. As a result, many organizations rely on HROs to monitor shifting employment laws and workplace trends closely.
The popularity of the hybrid workplace is a trend that significantly affected the HRO industry and will continue to do so throughout 2024. With many businesses permanently settling on hybrid work arrangements – and expanding their workforces globally – the need for cloud-based payroll and time-tracking tools has risen. Employees and employers need the ability to access their HR information from any location. We expect HRO companies to increase their offerings of flexible, cloud-based solutions and self-service features.
In our increasing global economy, many companies are choosing to hire workers across multiple states and countries. We can expect HR outsourcing companies to keep up with this trend by offering more global compliance and payroll support for international employees and contractors. With this expansion, we also anticipate HROs to tighten up their cybersecurity measures to ensure employee data remains secure.
As younger generations take over the workforce, HROs must evolve to meet their needs. For example, younger generations place a high importance on collaboration and recognition. HROs must manage HR to make employees feel seen and appreciated. Additionally, younger generations place great importance on health, wellness and professional development. We anticipate HROs will tailor their benefits packages to satisfy these needs as well.
Artificial intelligence (AI) in HR technology is also influencing the growth of HROs. For example, AI can scan hundreds of resumes to find candidates who have the required experience for a role, saving hiring managers hours of sifting through resumes. In tandem, laws around using AI for hiring and recruitment are evolving as well, and we anticipate that HROs will be able to stay up to date on compliance measures.
We expect to see HROs helping with important business diversity and inclusion initiatives throughout 2024 by offering recruiting assistance, risk management and compliance measures and employee training and development. Small businesses can lean on outsourced services like applicant tracking, HR policy development, audits and consultation to create diverse and inclusive workplaces. We believe there will be an increased demand for data analytics to track and improve employee productivity.