8 Best Human Resources (HR) Outsourcing Companies (2023)

By : Angela Lehman Angela Lehman
Hours Updated

A non-ideal HR outsourcing service could expose your private data and pose a security risk. Some HR services offer limited choices and take too long to fix trivial issues. Even after paying higher costs for outsourcing, your employees would be disappointed with HR.

However, having the correct HR management service can be a cost-effective way to handle various HR tasks like payroll management, employee benefits, training, workflow automation, etc. We have researched over 50 HR outsourcing companies and handpicked the 8 best ones for businesses of all sizes. Our research involved evaluating apps based on their knowledge, support, technology stack, PEO, amongst other parameters. Read more…

Best HR Services for Small Business

Name Minimum Employees Required Contracts PEO HR Services Link
ADP Total Source 5 Monthly Yes Recruitment Management, Employee Training, Compliance Management, etc. Learn More
Rippling 1 Monthly Yes Employee Surveys, Task Management, Workflow Automation, etc. Learn More
Justworks 2 Monthly Yes Track critical business insights, configure workflow charts, and manage employee permissions. Learn More
Paychex Oasis 1 Monthly Yes Efficient Internal Communication Channels, Tax filings, Workplace Safety/Compliance Management, etc. Learn More
Gusto 1 Monthly No Tax management, Payroll automation, New Recruit Onboarding, etc. Learn More
Expert Advice:

“You should hire an HR outsourcing service if you struggle to handle employees or lack the finances to fund an in-house HR setup. The right HR service will optimize workflow, automate recruitment/onboarding, perform payroll management, etc. Choosing the service that can take care of everything and lets you focus on what matters the most to you is always recommended.”

HR outsourcing (HRO) is a method of using a third-party service for your business recruitment purposes instead of having your human resource team. Outsourcing HR team provides professionals with exceptional recruitment knowledge who focus on your business requirements. The third-party hiring units are trained negotiators and use multiple HR tools, innovative data, and processes to pick the most suitable candidates.

This arrangement is effective as the third party mainly works on growth-related objectives. Along with hiring, these companies also take care of onboarding, employee training, payroll, tax administration, etc. Overall, it is a centralized platform for all your HR needs, saving you time and money.

Selecting an exemplary outsourcing HR service isn’t easy.

Here are essential factors that help you to select the best HR outsourcing services for your business:

  • Cost per employee: Most HR services have basic and set costs per additional employee. It would help if you tried to find a lower-priced human resource management service.
  • Guidance: Small and medium businesses often lack the experience of running businesses and don’t have dedicated professionals to guide them in compliance and safety. The best outsourcing HR services provide 24/7 guidance for HR, payroll, HRIS and more.
  • Integrations: You must select an HR service that integrates well with your existing technology stack and services so that you can easily streamline your workflow.
  • Knowledge Base: The knowledge base helps businesses learn various aspects of HR and allows business owners to find expert answers/recommendations to their problems.

The top HR outsourcing companies can help you with the following HR functions:

  • Recruitment/onboarding: It helps you to post job openings on popular job boards, streamline application management, and helps in smooth paper-less onboarding.
  • Benefits Administration: Manage employee benefits such as life/health insurance, paid leaves, 401(k)s, and more.
  • Internal Communication: Communicate decisions, policy changes, grant permissions, monitor activities, etc., with their robust mobile applications.
  • Surveys: This helps you conduct regular anonymous pulse surveys to get proper feedback and better understand your employee’s needs.
  • Payroll: They help you manage salaries, compensations, and reimbursements of all employees, contractors, and freelancers.
  • Tax Filings: HR outsourcing companies handle the tax payments and filings for local, state, and federal tax forms.

1) ADP Totalsource

Best for Employee benefits administration

ADP is one of the best HR outsourcing services with professionally built templates for employee handbooks, guidelines, policies, and job descriptions. You can manage any allegations of harassment or discrimination in your workplace with the assistance of ADP’s investigation team.

ADP is an ideal outsourced HR service that can help you set up employee perks, including low-cost health insurance, worker compensation, student loans, paid time off, etc. Its expert advice can be helpful in daily HR work, compliance difficulties, disagreement resolutions, etc. You can use it to manage international payroll in 140+ countries.

ADP Totalsource

Features:

  • Accelerates the hiring process with efficient application tracking, smooth background checks, paperless onboarding, etc.
  • Provides a separate Investigation team for handling harassment and discrimination concerns in the company.
  • Improve your employees’ lifestyle with ADP TotalSource’s proper Work-Life employee assistance programs.
  • Assists in building a completely personalized benefits plan for your company.
  • Integrations: 550+, including Xero, Deputy, When I Work, etc.
  • HR Services: Recruitment Management, Employee Training, Compliance Management, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Email, Phone, Live Chat, FAQs, Knowledge Base

Pros

  • Ensures effortless setup with ADP’s experts doing the heavy lifting on your behalf.
  • Offers proper suggestions to help streamline business processes.
  • Offers prebuilt reports to evaluate business parameters quickly.

Cons

  • Overpriced expert consultations and integrations.

Key Specs:

Pricing: Contact Customer Support for Pricing
Minimum Employees Required: 5
Money Back Guarantee: Yes

Visit ADP >>

2) Rippling PEO

Best technology-driven HR solutions

Rippling is one of the best HR outsourcing services, with support for tracking employee activities and attendance through web apps, kiosks, and smartphones. Its Unified Workforce Directory allows you to access all employee data and activities. You can add or remove features based on your needs effortlessly.

The simplified migration process allows you to transfer your configurations from your present HR service provider. It helps you streamline recruitment with effortless one-click job postings to all job boards. Moreover, you can use it to organize all your employee data and history.

Rippling

Features:

  • Proper HR expertise to assist you in complex matters like health benefit claims or billing issues.
  • It helps you to perform recruits onboarding, background checks, create accounts for 3rd party apps, set up benefits, etc.
  • Access pre-built courses or build your training programs to teach relevant skills to employees.
  • Rippling Workflow Automator allows you to build no-code logical workflows to automate tasks.
  • Integrations: Slack, Zoom, Dropbox, and 500+ other integrations.
  • HR Services: Employee Surveys, Task Management, Workflow Automation, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Email, FAQs, Call, Chat, and Knowledge Base

Pros

  • Automatically set up all accounts for recruits.
  • Quickly promote employees and change employees’ powers and rights.
  • Obtain regular employee feedback with pulse surveys and improve the work environment.

Cons

  • It has a relatively long learning period for novices.

Key Specs:

Pricing: Starts at $8 per employee per month
Minimum Employees Required: 1
Free Trial: No

Visit Rippling >>

3) Justworks

Best for complete compliance management

Justworks is an ideal HR management service for maintaining proper legal and regulatory compliance. You can use it to stay up-to-date with the latest changes to land laws that may affect your operations. It provides you with professionally built templates for creating your policies, handbooks, SOPs, and guides.

Justworks offers one of the most advanced time-tracking systems that use GPS locations and shift schedules to track employee activities and work hours. Its robust software solutions help manage employees with centralized calendars, event scheduling, docs center, etc. Employees can use the self-service portal can access relevant work information and taxation data, ask/receive permissions, etc.

Justworks

Features:

  • Built-in support for overtime tracking, rest and meal break regulation, and more.
  • Effortlessly track paid leaves, overtime, and critical business metrics with customizable reports.
  • Proper granular control over employee permissions to use any feature in Justworks.
  • Tailored guidance to improve employee satisfaction and uplift employee well-being.
  • A wide range of 1st-party ads allows you to get more tools for your business.
  • Integrations: Trainual, Vanta, Xero, QuickBooks.
  • HR services: Track critical business insights, configure workflow charts, and manage employee permissions.
  • Mobile Application: iOS and Android.
  • Customer Support: Call, Email, Live Chat, Knowledge Base

Pros

  • Takes complete responsibility for paying your taxes, filing returns, etc.
  • Professional tax filings for W-2 and 1099 forms
  • Provides multiple pricing plans to accommodate the needs of different business sizes

Cons

  • Lacks e-signature for documents capabilities

Key Specs:

Pricing: Starts at $59 per employee per month. $10 Discount for 50+ employee
Minimum Employees Required: 1
Free Trial: No

Link: https://www.justworks.com/

4) Paychex Oasis

Best for Dedicated HR guidance

Paychex provides you with advanced technologies to help simplify complex HR administration, improve workflows, and give approvals from its dashboard. Advanced tools allow you to streamline workflow and automate most HR-related tasks.

You can track various business metrics, such as labor costs, revenue, and more, with data-driven reports that help discover unknown bottlenecks. It helps build internal communication channels that enable straightforward reporting from employees. It also handles all your tax filings with an automated filling of W-2 and 1099 forms.

Paychex

Features:

  • Understands your HR needs and helps build a proper action plan keeping your interests in mind.
  • Dedicated HR professionals help analyze business aspects, identify the scope for improvement, and help adapt to new laws/regulations.
  • Robust self-service dashboard allows employees to set up direct deposits, finish evaluations, access tax documents, etc.
  • Compensation Summary report allows employees to access data about all their compensations from one location.
  • Integrations: 190+ including Deputy, Delaget, etc.
  • HR Services: Efficient Internal Communication Channels, Tax filings, Workplace Safety/Compliance Management, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Call, Email, FAQs, Knowledge Base

Pros

  • It helps you to perform background checks on potential recruits
  • Provides 1st-party additional services like tax management, employee retention tax credit, etc.
  • Professional experts assist you in making the right decisions for legal compliance, employee well-being, etc.

Cons

  • Relatively inferior support for proper employee benefits

Key Specs:

Pricing: Contact Customer Support for Pricing
Minimum Employees Required: 1
Free Trial: No

Visit Paychex >>

5) Gusto

Best for Effortless job posting and recruitment

Gusto is one of the best HR outsourcing companies to find new employees and perform mass recruitment. It provides various HR functions, such as secure online document storage, e-signatures, etc. You can get personalized professional advice from Gusto’s certificated human resource experts on all HR-related issues.

Gusto is one of the best payroll services for small businesses that provides professionally designed templates that allow you to create professional-looking procedures, job descriptions, agreements, checklists, and SOPs. You can use its tools for time tracking and employee attendance. It helps you conduct frequent anonymized pulse surveys to better understand your employees’ needs.

Gusto

Features:

  • Manage offer letters, build policies, and create reports and handbooks using easy-to-use pre-built templates and checklists.
  • Effortless job postings, applicant tracking, and more from the dashboard.
  • Free and automated filings for local, state, and federal taxes with in-depth reports.
  • Support for administering employee benefits such as health and life insurance, 401(k)s, etc.
  • Integrations: 100+ integrations, including 15Five and Amplitude
  • HR Services: Tax management, payroll automation, new recruit onboarding, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Call, Support form, Chat, and Email

Pros

  • Workflow Automator helps automate daily tasks, saving you precious time.
  • Provide employees with training to improve their skills.
  • Automatically create data-driven reports, compare business performance, etc.

Cons

  • Many features, like time tracking, are restricted for basic plans.

Key Specs:

Free Trial: No
Minimum Employees Required: 1
Price: $40 + $6 per employee per month

Visit Gusto >>

6) Bambee

Best for Completely automating HR tasks

Bambee is one of the best services to identify gaps in your existing HR infrastructure and fix them. It helps you perform regular surveys, audits, etc., to find room for improvement. You can use it to build proper internal communication channels to improve interaction within your organization. It offers many professionally built training courses to train employees about workplace safety, SOPs, etc.

Bambee also provides a professional HR manager who helps answer all your queries via an easy mobile chat. It offers an HR AutoPilot feature that learns your behavior, priorities, and constraints to quickly perform all relevant HR tasks on your behalf.

Bambee

Features:

  • It helps you to build and improve business policies that maintain compliance and protect you legally.
  • Automatically handles taxation filing, including federal, state, and local tax filings.
  • Provides smooth employee recruitment, onboarding, and termination procedures.
  • Assists in solving employee disputes and improves overall employee engagement.
  • Regular comprehensive HR audits will help you discover new possibilities for employee well-being.
  • HR Services: Compliance management, HR audits, payroll, benefits administration, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Phone, Email, Chat, and Knowledge Base

Pros

  • Automated compliance reviews and audits to ensure all HR best practices were followed.
  • Keeps you updated about the latest changes in labor law to maintain complete legal compliance.

Cons

  • You are limited to a maximum of 500 employees.

Key Specs:

Minimum Employees Required: 1
Pricing: Starts at $99 per month
Free Trial: No

Visit Bambee >>

7) Insperity

Best HR service for growing businesses

Insperity is one of the best HR outsourcing services that offers many tools for improving employee well-being, driving recruitment, etc. You can use Insperity to create good employee recognition programs to uplift employee engagement and boost morale.

Insperity’s HR outsourcing services also include an advanced employee self-service portal that helps employees access all critical data like taxation documents, required notifications, information reporting, etc. Your workforce can access 5000+ self-paced training courses and 30,000+ online books to improve their professional skills.

Insperity

Features:

  • In-built 1500 reports for analyzing multiple critical business parameters, along with support for custom reports.
  • Provides HR functions to ensure 100% legal compliance with proper risk management, reports, and audits.
  • It is one of the best human resources companies that support for various employee benefits like 401(k)s, retirement plans, insurance, etc.
  • Pre-built templates for job descriptions, training, performance reports, etc.
  • Integrations: Trainual, ProgramPay, Casual, QuickBooks, etc.
  • HR Services: Employee benefits administration, new recruit onboarding, performance reviews
  • Mobile App: Android and iOS.
  • Customer Support: Email, Phone Live Chat, FAQs

Pros

  • It offers a customized pricing plan so you can select and pay for only the features you need.
  • Effortlessly scale up your services according to the growth of your business.
  • Provides certified payroll specialist, HR specialist, and benefits specialist to assist you in all day-to-day HR issues.

Cons

  • Requires a minimum of five employees to use it.

Key Specs:

Pricing: Contact Customer Support for Pricing
Minimum Employees Required: 5
Free Trial: No

Link: https://www.insperity.com/

8) TriNet

Best PEO service for small business

TriNet is an ideal small business HR service that helps automate tasks and reduce SMEs’ burdens. It provides business owners with services like paperless payslips, automated tax calculations, tax filings, and more. It comes bundled with over 500 online learning courses to provide employees with specific training. TriNet also allows you to customize its PEO services to suit your unique requirements better.

It assists you in building proper compensation and rewards programs to recognize employees’ work and boost their morale. You can monitor employee activity, attendance, time-off requests, reimbursements, and more through its intuitive dashboard.

TriNet

Features:

  • It helps improve employee engagement by uncovering less-known issues and providing proper guidance.
  • TriNet’s partnership with various companies makes finding affordable employee benefits options easy.
  • It is one of the best hr companies that offers expense management tools and tax administration to help businesses optimize their costs.
  • Robust knowledge base to find online information about most HR-related matters.
  • Integrations: Lattice, Okta, Xero, Deputy, etc.
  • HR Services: Automated Payroll, Talent Acquisition, Compliance Management, etc.
  • Mobile App: Android and iOS.
  • Customer Support: Email, Phone, FAQs, Knowledge Base, Online Contact Form

Pros

  • Provide proper risk mitigation for taxes, compliance, and employee liabilities.
  • Professional HR experts help you make better decisions.
  • It helps employees access tax documents, time tracking, etc.

Cons

  • Requires a minimum of five employees.

Key Specs:

Pricing: Contact Customer Support for Pricing
Minimum Employees Required: 5
Free Trial: No

Link: https://www.trinet.com/

Best HR Outsourcing Services for Small Businesses

Name Minimum Employees Required Contracts PEO HR Services Link
ADP Total Source 5 Monthly Yes Recruitment Management, Employee Training, Compliance Management, etc. Learn More
Rippling 1 Monthly Yes Employee Surveys, Task Management, Workflow Automation, etc. Learn More
Justworks 2 Monthly Yes Track critical business insights, configure workflow charts, and manage employee permissions. Learn More
Paychex Oasis 1 Monthly Yes Efficient Internal Communication Channels, Tax filings, Workplace Safety/Compliance Management, etc. Learn More
Gusto 1 Monthly No Tax management, Payroll automation, New Recruit Onboarding, etc. Learn More

Final Verdict

We have tried to cover all the best HR outsourcing services you can use for business. You should select the one that meets all of your needs. We recommend looking for an HR service that can quickly handle your current and future needs.

  • Rippling is ideal if you want to leverage the most advanced technologies in all your business aspects.
  • Whereas, if you are looking to scale up your business soon, then Insperity could be the most useful.
  • However, Justworks is excellent for compliance and risk management. Overall, Gusto happens to be the most balanced HR service.
You Might Like: