There’s more to human resources than just hiring and firing. It’s arguably one of the most important departments for any business, with skilled professionals who know how to navigate everything from recruiting to employee engagement to legal compliance. It’s intricate and highly specialized, which is why many organizations opt to outsource some or all of their HR functions.
There are many reasons that might drive you to consider outsourcing HR services for your business. For startups and small businesses, it's an effective way to keep your internal staff small while still leveraging the highly specialized skills you need. For large companies, it’s a strategic tool for doing more with less. Outsourcing HR can save 20% to 30% more money than keeping all HR functions in-house.
Outsourcing HR can save 20% to 30% more money than keeping all HR functions in-house.
Whatever the reasons you may have for using HR outsourcing services (HROs), finding the one that offers the right mix of services for you is critical. Here are five of the best HROs on the market to consider.
Best Customizable Options: Insperity
If you’re looking for an HRO that’s feature-packed with decades of experience, it's difficult to top Insperity. This HR outsourcing company has been helping organizations leverage the power of HR since 1986. Businesses can choose from its full-service HR option, which is available for businesses with five to 149 employees and for those with 150 to 5,000. The full service option includes dedicated support and services like employee benefits, payroll and HR administration, compliance and risk management, talent management and technology to help streamline tasks.
In addition to handling any and all HR needs — even drug testing during the recruitment process — Insperity offers employee self-service, both on the website and using its mobile app. Because of its robust full-service options, this outsourcing service is particularly great for companies that want to offload all or most of their HR needs.
Best Flexibility: ADP
If you only need a few HR tasks handled by the HRO now but may need more in the future, ADP is one of the best options on the market. It has been providing flexible HR services for more than 70 years. ADP leverages the power of AI automation and innovative technology to help your organization work faster and smarter. While you can opt into their full-service solutions, ADP also provides a menu of a la carte options that make it ideal for smaller businesses or those who have an in-house team but want to free them up for more specialized work. Services include employee management, attendance and time payroll, recruiting, benefits, and more.
The combination of flexibility and expertise makes ADP a solid HRO option for companies of any size. That flexibility is particularly useful for businesses who only need a few HR services now, but might need more down the road — essentially allowing the HRO to scale along with you.
Best for Small Companies: Gusto
Proof that payroll doesn’t have to be a drag, particularly when you outsource it, Gusto’s sleek, user-friendly platform and menu of essential HR services is beloved by business owners and employees alike. It’s an ideal solution for small companies. Those with more than 100 employees will soon find that it loses some of the sleeknesses that sets it apart from others on the market.
Gusto offers four plans, ranging from the streamlined Core plan with all the basics you need to manage your smaller teams, to its Concierge plan, which provides added services, including an HR resource center, time and project tracking, access to Certified HR professionals and more. Essential services include:
Full-service payroll across the US
Self-service and employee profiles
Worker's compensation administration
Two-day direct deposit
Onboarding, employee offers and document management
Best for Small Businesses Handling Complex Regulations: Paychex
Some industries have reporting requirements that make HR even more complicated. The regulations governing freight companies and law firms, for example, require calculating billable hours and mileage — things that aren’t simple or easy if you’re using an HRO that doesn’t offer advanced help and software capable of dealing with the various challenges that businesses face across a range of industries.
With a minimum number of employees of just one, Paychex is particularly useful for small and medium-sized businesses dealing with complex payroll- and HR-related regulations. Founded in 1971, Paycheck has decades of experience simplifying HR services ranging from payroll to employee benefits. The all-in-one platform also provides you with analytics and reports to help you make data-driven decisions.
Best to Supplement In-House HR: Bambee
Less of a full-service HRO and more of an expert HR consultant, Bambee offers excellent support to help your in-house team create HR policies, keep up with regulations and gain more in-depth insight with more than 600 training courses. This HRO starts at just $99 per month, giving the insight of experienced, expert HR specialists without the costs of hiring a full team. It's like getting a dedicated HR manager who can handle training and development, onboarding, terminations, compliance and more.