Compare HR Outsourcing Prices – BUYERS GUIDE 2020
What is Human Resources Outsourcing and How Much Does It Cost?
In 2020 HR Outsourcing cost ranges between $50 a month to $1,500. The overall price is based on the number of employees and services such as hiring, payroll & tax service, training, and benefits administration. Human Resources (HR) Outsourcing simply refers to a business handing off some or all of its HR responsibilities to a third-party firm. This allows the business to focus on its own products or services. HR outsourcing firms offer many basic services including payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws—any and all services an in-house HR department normally takes care of.
What you pay for this service depends on how many employees you have, which HR services you contract for, and your location. Typical charges run from 4% to 8% of each employee’s pretax salary each month, meaning costs vary considerably based on business size. Some HR services can be outsourced for a flat monthly fee, as well.
What to Look For In an HR Outsourcing Provider:
Determine how much control you want to relinquish and how scalable you want your HR outsourcing to be. Some HR firms at better at offering select services, others at overseeing full-scale HR duties. Make sure you know if the firm holds the legal right to hire, fire, or discipline your employees, and look into their communication policies and other client reviews.
Small to mid-size business owners might consider some level of HR outsourcing when their workforce is between 8 and 100 employees. Larger businesses can still find it cost effective to outsource some HR operations, as well.
Compare HR Outsourcing Pricing
More Buying Tips and Information: Be it for benefits administration, risk management, payroll, or recruiting, a quality HR firm makes a big difference in any business model. Determine in advance if you need resume screenings or background checks, and also as you look at payroll and taxes decide if you need to track paid time off and accrual. Advanced services can include manager and safety training, and even manage employee benefits such as health, dental, and life. Lastly consider if you need employee handbooks created, claims management, and workers compensation insurance.