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Best HR Outsourcing Services

By Lars Lofgren

Adp

Human resources is a critical aspect of any business.

Historically, HR departments were reserved for larger organizations. Small businesses might just have a bookkeeper handle HR responsibilities.

But today, businesses of all shapes and sizes can leverage HR outsourcing to perform these crucial tasks. Large businesses can use HR outsourcing to reduce operational costs. Outsourcing tasks and roles is much more cost-effective than in-house employees.

What’s the best HR outsourcing service? Find out below.

The 8 Best HR Outsourcing Services of 2020

Lots of companies offer some form of HR outsourcing. Human resources is offered by most of the best PEO service providers on the market.

After researching dozens of HR firms and outsourcing services, I’ve narrowed down the top eight for you to consider.

  • ADP — Best HR outsourcing service for benefits administration.
  • Paychex — Best HR outsourcing service for payroll.
  • Insperity — Best HR outsourcing service for mid-market companies.
  • Zenefits — Best HR software for small businesses.
  • Engage PEO — Best HR outsourcing service for legal compliance.
  • TriNet — Most flexible HR outsourcing solutions.
  • G&A Partners — Best HR outsourcing for employee onboarding and development.
  • Tandem HR — Best HR outsourcing service for growing small businesses.

I’ll give you an in-depth review covering the features, benefits, and other considerations for each one of these providers below.

Best HR Outsourcing Services Reviews

ADP

Visit ADP

Full-service HR solutions
Flexible plans and services
Top notch customer service
Get a Free Quote

ADP offers both software and services for your HR needs. They provide solutions for small businesses as well as mid-sized organizations and enterprises.

One of the reasons why we rank ADP so high is because of its flexibility. You have the option to outsource all or just part of your HR management team.

Some of ADPs HR services include:

  • Payroll
  • Time and attendance
  • Retirement plans
  • Insurance

This provider offers business insurance as well as group health insurance for your employees. Since ADP is such a large company, they have leverage and bargaining power with all major health insurance providers.

So even small businesses can get access to exceptional plans for their employees, that they wouldn’t be able to get elsewhere outside of this network.

ADP has a support team of knowledgeable HR professionals that can be reached via phone, email, or live chat. They can create and distribute all of the necessary forms, policies, and job descriptions for your organization. You can even create a custom employee handbook in compliance with local and federal laws.

Furthermore, ADP offers HR guidance that can help improve your operational efficiencies.

From benefits packages to compliance and setting up employee self-service tools, ADP has it all.

Paychex

Visit Paychex

Pricing based on # of employees
Wide range of HR services
Knowledgeable HR professionals
Get a Free Quote

Paychex is one of the best online payroll services on the market today. But many people don’t realize that this provider also offers several other HR outsourcing services.

In addition to payroll, Paychex has:

  • Retirement services
  • Insurance services
  • HR professionals
  • Benefits administration
  • Compliance services

It’s a top solution to consider for smaller organizations. While Paychex does have HR services for businesses with up to 90+ employees, it’s one of the best providers for businesses with 50 employees or less.

Paychex has an awesome mobile app that can be used to track things like hiring, labor costs, and employee turnover.

The app can also be used for employee self-service tools and employee training.

More than 670,000 organizations use Paychex. So this is definitely a company that you can trust with your most critical business needs.

For those of you who have an existing HR department in place, Paychex can act as an extension of this department by providing you a dedicated outsourced HR manager. They can assist with hiring, onboarding, and retaining top-level talent.

An outsourced HR manager from Paychex will handle workforce analytics, benchmarking, corporate culture strategy, manage benefits, and basic employee training.

It’s essentially everything you’d need in an HR manager, without having to hire a full-time in-house staff member.

Insperity

Insperity

Visit Insperity

Full-service HR solution
Individual & custom HR packages
Best for mid-sized organizations
Get a Free Quote

Insperity is a full-service HR solution. From technology to benefits, you can get a custom HR package based on the needs of your organization.

With Insperity, you can give your employees access to Fortune 500-level benefits. This includes medical, vision, and dental coverage.

Processing payroll, handling W-2s, W-4s, and employment verification can all be handled by your outsourced HR team from Insperity.

Insperity will help you with liability insurance, workers’ compensation, and other areas of risk management. This service provider can also assist with HR-related compliance for things like unemployment claims and government reporting.

Every business wants to retain the best talent. Insperity will help you create recognition programs, an employee handbook, and improve your employee training process.

I’d recommend Insperity to mid-market organizations. They do have solutions for businesses with 5-149 employees. But their main focus and expertise is for businesses with 150+ employees.

In addition to the full-service HR packages, you can also use Insperity for individual solutions like:

  • Recruiting
  • HR consulting
  • Retirement
  • Insurance
  • Accounting and bookkeeping

Like most of the best outsourcing services, Insperity offers new and up to date technology for all of its services.

With nearly 35 years in business and 70+ offices across the country, Insperity is a top consideration for HR outsourcing.

Zenefits

Zenefits

Visit Zenefits

Best HR software
Built for small businesses
Pricing starts at $8/month
Get Started Now

Zenefits is a bit different compared to some of the other options on our list. Technically, Zenefits is not an outsourcing service; it’s software for human resources.

But with that said, it serves the same purpose as an outsourced service in terms of ease and cost reduction. Zenefits will be a cheaper alternative than a full-service outsourcing firm.

This HR software was built for small businesses. It has everything you need to streamline your HR tasks and administration.

Some of the top HR features available on Zenefits include:

  • Creating compensation packages and sending them to new hires
  • Self onboarding for new employees
  • Employee management tools
  • PTO policies and managing time off requests
  • Intelligence reports for your workforce
  • Mobile accessibility (for administration and employees)

Zenefits has dozens of integrations already built into the system. The platform also has options for payroll, employee benefits, employee scheduling, and time tracking.

Most HR outsourcing services require you to get a custom quote from the provider. But Zenefits’ pricing is straightforward and available on the website. Here’s a quick overview of the plans and pricing for Zenefits:

Essentials — $8 per month per employee

  • All core HR features
  • Employee time and scheduling tools
  • Integrations (G Suite, Slack, Salesforce, etc.)
  • Zenefits mobile app

Growth — $14 per month per employee

  • All Essentials features
  • Compensation management tools
  • Performance management

Essentials — $21 per month per employee

  • All Growth features
  • Track and measure employee well-being
  • Personalized tools, tips, and training advice
  • Relevant well-being content automatically triggered based on employee actions

All of these rates are based on an annual plan. Zenefits does offer month-to-month rates for about 30% more per month. In addition to the base plans, you can add-on the following features to your Zenefits subscription:

  • Payroll — $6 per month per employee
  • Advisory services — $8 per month per employee
  • Benefits administration (with your own broker) — $5 per month per employee

If your small business needs to improve the way you handle HR tasks but don’t have the funds to completely outsource the service, Zenefits is the perfect solution for you.

Engage PEO

Engage PEO

Visit Engage PEO

Full service PEO provider
Manage complex HR legal needs
Every consultant is an attorney
Get a Free Quote

As the name clearly implies, Engage PEO is a full-service professional employer organization. This company provides a PEO experience that always aims to put the client’s needs first with its innovative business model.

Founded in 2011, Engage PEO quickly became one of the fastest-growing private companies in the country. They are licensed and serving businesses in all 50 states.

What makes Engage PEO so unique as an HR services provider? It’s the people.

Every member of their HR consulting team is an attorney. These legal professionals have significant experience with labor and employment law.

For those of you with complex HR legal needs for industries with strict compliance, Engage PEO will be a top choice for you to consider. Here’s a quick overview of some of the top outsourced HR functions offered by this provider:

  • Employee policies
  • Employee handbook
  • EEO, ADA, and FMLA compliance
  • State and US Department of Labor and Hour compliance
  • Administration of unemployment claims
  • Hiring and recruitment assistance
  • Background check and drug screening
  • Employment practices liability insurance
  • Employee training

As a PEO provider, Engage PEO also offers payroll and tax administration, workers’ compensation, risk management, employee benefits, and integrated technology solutions.

TriNet

TriNet

Visit TriNet

Full-service HR solution
Flexible plans and services
Comprehensive HR platform
Get a Free Quote

TriNet is another full-service HR outsourcing solution. They provide flexible plans and services to meet the needs of all businesses, regardless of size.

This provider has experience working with businesses in a wide range of industries, including:

  • Retail
  • Financial services
  • Architecture
  • Engineering
  • Manufacturing
  • Nonprofits
  • Wholesale
  • Marketing and advertising
  • Technology
  • Consulting
  • Life sciences

TriNet’s services will give you more time to focus on your business. These industry-specific solutions will help you attract and retain top-level talent.

The HR outsourcing services consist of HR consulting, benefit options, payroll services, and risk mitigation. You’ll also benefit from TriNet’s comprehensive HR platform. This technology contains tools for employee self-service and mobile access.

TriNet works with some of the best insurance carriers on the market today. You can give your employees medical, dental, vision, life, retirement, and disability coverage.

Some of TriNet’s top carriers include MetLife, Kaiser Permanente, Transamerica, Aetna, Aflac, MassMutual, and UnitedHealth Group.

G&A Partners

Visit G&A Partners

In business for 20+ years
Two different plan options
Best for niche industries
Get a Free Quote

G&A Partners has been providing professional services to businesses for more than 20 years. They offer full-service HR outsourcing for things like payroll, benefits, compliance, workplace safety, performance management, and recruitment.

There are two different ways that your company can work with G&A Partners.

You can allow them to act as the employer of record with a PEO (professional employer organization) plan. Alternatively, you can pick and choose the services you need with their ASO (administrative services organization) options.

Think of it like this. The first choice is full-service, and the second is á la carte.

For those of you who already have an in-house HR department with the infrastructure in place, the ASO model will likely be a better option for you. If not, I’d recommend the PEO services.

In addition to human resources, G&A Partners offers payroll services, benefits packages, and HR technology.

This provider isn’t for everyone. Common industries served by G&A Partners include:

  • Nonprofits
  • Health care
  • Manufacturing
  • Professional services
  • Franchises

One unique standout of G&A Partners is its employee development services. This HR function includes candidate sourcing, job description, job postings, resume screening, and pre-hire assessments.

Once an employee is hired, this outsourced firm will handle onboarding, benefits enrollment, and performance management as well.

Tandem HR

Tandem HR

Visit Tandem HR

Fully customized plans
Easy to scale
Wide range of services
Geta Free Quote

Tandem HR offers a wide range of human resources solutions for small businesses. This provider has the tools and expertise to help small businesses as they scale.

If your business is growing rapidly and you need an outsourced HR firm to grow with you, Tandem HR will be a top choice for you to consider.

I like Tandem HR because they do not believe in cookie-cutter solutions. Every business gets a fully customized plan based on its needs. As a full-service PEO provider, Tandem HR has tools and solutions for:

  • Payroll
  • Human resources
  • Benefits
  • Risk management
  • Technology

Most small businesses don’t have much of an HR infrastructure in place. Tandem HR can help you set that up and manage the entire department. As your organization grows, Tandem HR will grow with you.

These custom HR solutions will help you save time, save money, boost employee productivity, retain talent, and remain compliant at the state and federal level.

How to Choose the Best HR Outsourcing Service For Your Business

Every business has unique needs. That’s why choosing the right HR outsourcing service for your company is so important. With so many options at your disposal, how can you possibly know which one is the best?

This is the methodology that we use here at Quick Sprout. You can use it as well to help narrow down your choices.

Business Size

Outsourcing firms typically have experience working with certain types of businesses.

If you’re a small business owner with no HR infrastructure, you want to choose a service that has experience building from the ground up with smaller organizations.

Large companies might not need that type of assistance. Instead, a larger business might just need a certain role or task outsourced.

Services

Nearly every HR outsourcing firm has similar services. They might vary slightly from company to company.

Some of the companies on our list are PEO providers. Those options offer services that go beyond basic HR responsibilities. So if you need additional assistance with those types of tasks, a full-service PEO provider will be a top option for you.

Technology

Look for an HR outsourcing service that has the tools and technology to streamline your HR processes. Mobile apps and employee self-service tools should be standard.

Alternatively, you could consider using platforms like Zenefits. If you don’t have the funds to hire an outsourced HR service, this platform provides software to improve your HR tasks.

Specialty

Does your business need something specific?

For example, maybe you own a company in an industry with strict labor compliance laws. In a situation like this, you’d benefit from an outsourced HR service like Engage PEO. They have attorneys that specialize in employment law.

Or maybe you need an HR service that can improve your payroll process. Paychex would be the best option if you fall into this category.

Whatever unique circumstances your business might have, there is usually a human resource outsourcing service that specializes in it.

Conclusion

What’s the best human resources outsourcing service? Here’s a recap of the top options reviewed in this guide:

  • ADP — Best HR outsourcing service for benefits administration.
  • Paychex — Best HR outsourcing service for payroll.
  • Insperity — Best HR outsourcing service for mid-market companies.
  • Zenefits — Best HR software for small businesses.
  • Engage PEO — Best HR outsourcing service for legal compliance.
  • TriNet — Most flexible HR outsourcing solutions.
  • G&A Partners — Best HR outsourcing for employee onboarding and development.
  • Tandem HR — Best HR outsourcing service for growing small businesses.

From payroll assistance to benefits administration and HR software, there’s an option for every business of all shapes and sizes on this list.

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