HR Outsourcing

HR Outsourcing Made Simple – A Complete Guide To Human Resources

Are you considering HR outsourcing for your company? In this guide we give you actionable tips to find the right service provider.

As time has passed, the role human resource experts play has changed.

They’ve evolved from simply keeping records to becoming a vital part of an executive team.

  • Concentrate on revenue-generating tasks
  • Manage company costs
  • Saves time and minimizes paperwork
  • Ensure compliance with labor laws
  • Cut employee turnover
  • Enhance benefits packages and reduce costs
  • Minimizes employer liabilities

Aside from making sure employee activities are coordinated properly, the HR department will resolve conflicts and assist with training. They’re also able to help manage budgets and make sure businesses comply with regulations and laws.


As well as this, HR teams and HR outsourcing teams maintain employee data securely. Read on to find out why, and why you may want to think about HR outsourcing yourself.

The Importance of HR

HR has the duty of making sure hiring practices are done aboveboard.

HR Benefits

These practices have to be followed in the correct fashion, especially when hiring someone from another country. Compliance with immigration practices is required at both a federal and state level.

This process can be complicated and is often found difficult to carry out by HR teams that lack expertise. In the case that a violation of immigration law happens, it can be very expensive to deal with.

It is also important that employees have access to a neutral party in order to discuss issues. They should also have someone specialized to complete paperwork in the correct fashion.

An outsourced human resource team can meet all your needs, even on a smaller budget.

Why HR Outsourcing?

Outsourcing HR works on many different levels. Primarily, you might find it to be a strategy to lower costs; this is why many businesses make this decision. A strategy that’s less obvious is for the purpose of businesses and avoiding risk.

Outsourcing HR allows many companies to focus on the elements of their business that they’re more capable of handling. With an external partner that can help you deliver services, you can really double down on what you’re most proficient at.

Human Resources Guide

Using talent management alongside the efforts of leadership development, your organization can be optimized. This will allow you to put energy into strategic initiatives.

If you’re thinking about outsourcing the HR aspects of your company, knowing the disciplines included within HR can help inform your decision. They are as follows:

  • Employment law
  • Workforce management
  • Recruiting & compensation
  • Payroll and related costs
  • Training & benefits
  • Employee data management
  • Leadership development
  • Talent analytics

How to Pick Human Resources Outsourcing (HR)

When outsourcing HR or even the payroll elements, you’ll be handing over strategic information about your company. This means that you’ll have to vet the potential HR that you’re looking to hire. Below are some tips on the things you should look out for when picking an HR.

HR Solutions

Look at References, Credit, and Reputation

The partner that you choose to go with needs to be licensed correctly and insured. You can compare providers online; this will give you a better idea of each provider’s strengths and weaknesses.

Processes Systems and Policies

When looking at these providers, make sure to check out their policies and processes. Having to move between different websites or folders is an arduous task that can be avoided.

Efficient Outsourcing

Any provider that you decide to go with should come up with practices that optimize the success of your company while lessening risk. They should be able to tell you how they can improve your company by using their expertise.

HR Service - Guide

Variety of Services

Your HR partner should be able to offer a solution for your future requirements. They may offer things that you don’t currently need, but they should be considered regardless, as they may offer something you could grow into.

Weighing up the Variables

The landscape for HR is growing larger and larger.

It’s important to look at which of your potential partners fits the needs of your business most closely. Just looking at what they offer or the software they use could be an easy way to get fooled into thinking they’re better than they are.

When valuing these companies, look at a variety of pricing, reputation, and expertise.

They should also fit with your company culturally and become an extension of your values. Their commitment to making processes work and fitting in with the environment should go hand-in-hand with supporting the strategies of your business.

Payroll Outsourcing

HR Outsourcing Pricing

The amount you’ll have to pay for an HR service can depend on a variety of factors. This includes how many employees you have and the combination of services you select for your business.

As there are so many different options you can choose to go for, a one-size-fits-all figure will likely be inaccurate. This figure is affected by fluctuations in business.

However, a ballpark amount you can expect to pay is anywhere from less than $100 a month to an excess of $1,200. This is usually dependent on a portion of each employee’s monthly salary before tax.

It’s also worth mentioning that there are some other payment structures available, depending on the HR service (and the company being served).

This includes fixed monthly pricing and/or a fixed baseline rate with additional charges accounting for said business fluctuations.

Benefits Outsourcing

Top HR Companies

As part of a strategy to make sure you pick the right HR, we’ve looked at some of the companies we feel offer effective services in handling HR in your business.

This is by no means a conclusive list and is simply a few suggestions to help you think about your options.

ADP TotalSource

ADP offers a variety of great benefits. As one of the biggest HR providers in the United States, they have the power of a national entity and are able to barter with a variety of healthcare companies.


G&A Partners

Keeping your employees trained sufficiently is necessary to make sure your company is competitive. G&A partners offer exemplary services in boosting your staff’s performance.

G&A Partners Logo


Paychex is a fantastic HR that benefits smaller businesses due to the range of quality among all of the services.

Paychex Retirement Plan


XcelHR is another well-rounded HR that’s notable in particular for offering services to companies with just one employee.

XcelHR Logo


Another company excelling in company training, Insperity also offers a range of great services with a pricing and contract model that’s particularly attractive.


Find The Right HR Service

HR services are continuing to grow rapidly as time goes on. Their growth is expected to explode in 2020.

With the availability of HR, smaller companies can challenge large corporations. These start-ups are disruptive enough to take easily take a piece of the market share.

Need to find out a little more about HR outsourcing and its prices?