Workers today are fueled by the quest for fulfilling work experiences and environments that foster growth. To create these opportunities and handle the tasks that come with them, businesses are increasingly turning to Human Resources Outsourcing (HRO) companies.
But what do HR outsourcing companies do?
In a nutshell, these firms efficiently handle crucial HR tasks such as payroll, benefits, HR compliance, and risk management, allowing businesses to focus on their core operations.
The global HRO market is projected to reach $45.8 billion by the end of 2027 ($32.8 billion in 2020), with a compound annual growth rate of 4.9%. This rising popularity of HR outsourcing services highlights their effectiveness in addressing HR challenges and enabling companies to thrive in a dynamic business landscape. Embrace the power of HRO solutions to streamline your HR operations.
See How Outsourced HR Can Help Grow Your Business [Real Stories and Testimonials].
With an array of options available, finding the right HR outsourcing company can be a game-changer for your business's success. To help you find the right fit, here’s a list of the top HR outsourcing companies in 2024.
Stratus HR has 20+ years of experience as a trusted full-service PEO partner. Their customizable HR services prioritize the human touch for comprehensive, fully integrated solutions. With expertise in HR management, payroll, benefits, and risk management, Stratus HR consistently saves companies valuable time.
Their certified HR experts, 24/7 HR technology access, cost-effective enterprise-level employee benefits, and white-glove service make Stratus HR the best overall HR service provider.
Paychex helps businesses with their payroll, benefits, HR, and insurance needs. They provide a dedicated HR professional to assist customers in outsourcing their HR tasks, understanding employment laws, and making the most of HR technology. Small businesses looking to improve their payroll services can benefit from Paychex's comprehensive solutions.
Rippling's goal is to simplify the management of a company by automating various administrative tasks related to employees. They provide a unified platform that covers everything from onboarding to offboarding, allowing businesses to efficiently handle payroll, benefits, computers, and applications in one place.
TriNet, headquartered in the San Francisco Bay Area, is a Professional Employer Organization (PEO) dedicated to assisting small and medium-sized businesses. Their HR solution grants users access to benefits, HR expertise, risk management, and additional services. TriNet specializes in offering the necessary expertise to ensure compliance with federal, state, and local regulations concerning payroll, benefits, terminations, and hiring.
Insperity provides comprehensive HR solutions that encompass employee benefits, risk management, HR administration, and payroll services. Their HR technology integrates software and practical solutions to manage employees and streamline administrative tasks for bottom-line results effectively.
ADP provides two distinct solutions to enhance HR and payroll procedures. The first is their HR outsourcing solution, which enables users to outsource specific (or all) HR tasks. The second solution is ADP's PEO option, which offers dedicated experts and technology for HR and payroll management.
Choosing the best HR outsourcing company for your business requires careful due diligence that includes:
As you explore your HR outsourcing options, consider your specific HR needs, evaluate each company's offerings, and read reviews from clients to make an informed decision. Remember, choosing the right HR outsourcing company can streamline your HR operations, enhance employee experiences, and allow you to focus on what truly matters – growing your business.
See the Top 5 Questions to Ask Before Outsourcing HR Functions.
Take the next step towards improving your HR functions by partnering with a trusted HR outsourcing company like Stratus HR.
At Stratus HR, we understand that success goes beyond numbers. That's why we go the extra mile, combining our robust technology with dedicated HR professionals ready to support you.
Small and medium-sized businesses that seek comprehensive HR support through the PEO model will find our solutions an excellent choice. As HR professionals, we designed Stratus HR to cater to seasoned HR professionals and novice office managers. With over 23 years of experience, we continuously strive to enhance our practices and ensure we provide you with the best solutions specifically tailored to you. Giving you a partner in HR who actually feels a part of your organization.
Choose Stratus HR as your trusted HR outsourcing partner to handle compliance, payroll management, and benefits administration so you can focus on your core operations.
Book a consultation with us today and discover how our comprehensive services and tailored solutions can benefit your business.
You may also be interested in How to Outsource HR in 6 Steps
Outsourcing HR is beneficial for businesses in various situations, including limited HR expertise, cost considerations, scalability needs, compliance complexities, cost-effectively adding to your HR department, and the desire to focus on core competencies.
No, HROs and PEOs differ based on the organization you choose for outsourcing.
Most HROs provide comprehensive HR services as an external department where they work as the consultant and you as the employer. You can pick and choose which HR services you would like to have outsourced if you do not want their comprehensive solution.
While PEOs also offer comprehensive HR services, they operate under a co-employment model to provide you access to bulk employee benefits, insurance, and shared liability. With co-employment, the PEO becomes the employer of record for tax purposes, meaning all employee paychecks are processed under the PEO’s employer identification number. Although this relieves you from liability for payroll processing mistakes and penalties, you are still responsible for managing the day-to-day operations as the worksite employer.
HR functions that can be outsourced include payroll, benefits administration, onboarding/offboarding, policy implementation, compliance management, training and development, performance management, record-keeping, HR technology and systems, HR consulting, and more.
Aside from management fees, the cost of HR outsourcing is dependent on what your company is currently spending or not spending. A good way to know if it financially makes sense would be to look at your HR function today – do you need to outsource? The cost of HR outsourcing can vary based on business size, services required, complexity, and chosen provider. Pricing is typically per employee with additional costs for extra services. It's crucial to consider value and expertise when evaluating providers.
Benefits and perks enhance satisfaction, work-life balance, well-being, and retention. They improve morale, engagement, and productivity within the organization.