Human resources (HR) outsourcing is the delegation of specific HR functions and activities to an external provider. The best HR outsourcing services for small businesses provide several benefits to employers, such as better HR processes, improved compliance, and cost savings from not having to directly hire an HR manager.
For this guide, we reviewed 14 companies that offer HR services for small business owners looking to outsource HR administration. We then narrowed the list down to our top six recommendations.
- Bambee: Best overall HR outsourcing service
- Justworks: Best for managing payroll and employee benefits
- Rippling: Best all-inclusive HR, IT, and PEO solutions
- TriNet: Best affordable HR and payroll solutions
- ADP TotalSource: Best for strategic HR management
- Papaya Global: Best for companies with international staff
Top HR Outsourcing Services Compared
Free Trial | Starter Pricing | Standout Features | |
|---|---|---|---|
 | 30 days for $1 | $99 per month |
|
 | None | $59 per employee monthly | |
 | None, but first-time users get the first month free* | Custom-priced |
|
 | None, but you can request a free interactive demo | $10 per employee monthly |
|
 | None | Custom-priced | |
 | None, but you can request a free demo | $599 per employee monthly |
|
*This may change anytime. Visit the provider’s website to view their latest promos. | |||
Continue reading for an in-depth look at our six best HR outsourcing services. However, if you are looking for inexpensive, independent HR consultants to work on simple HR projects or simply want the end-to-end HR compliance solution of HR software, partnering with an HR outsourcing service provider might not be the best option. Expand the section below for other alternatives.
Providers | Best For | Starter Pricing |
|---|---|---|
 | Finding an inexpensive HR consultant or freelancer to fill the role | 5.5% transaction fee plus the cost of the project and a flat $2.50 fee for jobs under $75 |
 | Finding a top-rated consultant or contractor from a reputable site | 5% transaction fee plus the cost of the project and a fee of up to $4.95 for new contracts |
 | Businesses looking to outsource the technical aspects of HR and get expert help managing HR and benefits | $40 (base monthly fee) plus $6 per employee monthly |
 | Startups and small companies needing flexible HR and payroll solutions | $39 (base monthly fee) plus $5 per employee monthly |
Bambee: Best Overall HR Outsourcing Service
Pros
- Has a reasonably priced starter plan
- Offers a dedicated HR manager
- Conducts annual and comprehensive HR audits
Cons
- Starter tier only comes with email and chat support
- Charges setup fees for higher plans
- Guided payroll solution is a paid add-on
Overview
Who should use it:
If you’re a new employer or plan to start a business, Bambee offers the best HR outsourcing services to help you set up HR processes without hiring HR staff. It assigns a dedicated HR manager who can identify your HR gaps and build the core policies needed so you can compliantly recruit employees and train new staff.
Why I like it:
Bambee can help you navigate the intricacies of handling HR and managing employees, from onboarding to conflict resolutions and terminations. I like that its starter plan is geared toward businesses that have yet to hire workers. It gives you access to an outsourced HR manager who can help you get started, at a lower monthly fee (only $99) than hiring and paying an in-house HR manager.
You also get a cloud-based platform to help you track HR documents, staff performance, and training certifications. Its Employee Voices tool even provides workers with an online space to share their concerns, express appreciation, and raise workplace issues either anonymously or publicly. Take note, however, that it isn’t a confidential third-party hotline.
In my evaluation, I gave Bambee an overall score of 3.54 out of 5 mainly for its compliance support and reasonably-priced subscription tiers. However, while Bambee can help you pay employees, this service is a paid add-on. It also doesn’t help you manage benefits plans and find employees to hire like ADP. And if you have plans to grow globally, I recommend Deel, Rippling, and Justworks as all three have EOR services for recruiting and paying international workers.
- No Employees Yet: $99 per month; zero setup fees
- 1-4 employees: $299 monthly + a $500 setup fee
- 5-19 employees: $399 monthly + a $500 setup fee
- 20-49 employees: $499 monthly + a $1,500 setup fee
- 50-70 employees: $1,299 monthly + a $2,000 setup fee
- 71 and more employees: Call for a quote
Add on
- Guided payroll: Call for a quote
- Dedicated HR manager: Bambee’s dedicated HR manager provides expert guidance as you set up your HR policies and procedures. Your dedicated HR manager provides full remote support and coaching if you need assistance navigating a sensitive employee issue or if you want clarity on labor regulations. Bambee’s online system allows you to easily connect with your HR manager to raise requests (such as policy reviews) via chat or email. You also get phone support—provided you subscribe to its higher tiers.
- HR Autopilot and compliance support: Bambee’s HR autopilot solution helps ensure that your HR policies are up-to-date, signed by your employees, and reaffirmed twice a year. Plus, your workers’ attendance at mandatory training (such as workplace safety and sexual harassment sessions) will be tracked, and you’ll even be notified of your team’s progress.
- HR audits: Bambee conducts audits to help you identify HR gaps and formulate action plans to address the gaps. Its system even has an HR Compliance Score tool, providing an estimate of your HR’s general health (either excellent, good, or poor) based on the audit.
Bambee’s HR compliance rating provides you with an idea of where your business risk stands. (Source: Bambee)
Bambee is our top recommended HR outsourcing service because it offers solid compliance support and a dedicated HR manager to help you navigate the intricacies of handling HR and managing employees—from onboarding to conflict resolutions and terminations. It also has an online platform to help you track HR documents, staff performance, and training certifications.
Its “Employee Voices” tool even provides your staff with an online space where they can share their concerns, express appreciation, and raise workplace issues either anonymously or publicly. Take note, however, that it isn’t a confidential third-party hotline. And, while Bambee can help you pay employees, this service is a paid add-on (unlike Rippling, Justworks, and ADP TotalSource).
Bambee has a secure “cabinet” that stores all of your digital documents. (Source: Bambee)
Justworks: Best for Managing Payroll & Benefits
Pros
- Enterprise-level benefits from major insurance companies + 401(k); includes access to wellness perks
- IRS- and ESAC-certified PEO services
- User-friendly interface
- Offers add-on modules for EOR, international contractor payments, and time tracking
- Has a standalone payroll plan
Cons
- HR outsourcing services don’t include managing performance reviews
- PEO plans have preset payout schedules for hourly and non-exempt salaried employees (set every other Friday)
- Access to medical, dental, and vision insurance + COBRA administration reserved only for PEO Plus plan
Overview
Who should use it:
Justworks is excellent for small companies looking for a reasonably priced PEO to outsource HR administrative tasks. In addition to full-service payroll, benefits management, and compliance support, it provides access to wellness perks (like fitness memberships) and enterprise-level benefits plans (such as medical, vision, and dental insurance) at affordable rates.
Why I like it:
What I like most about Justworks is its transparent pricing. While other PEOs and HR outsourcing companies require you to call them for a quote, you can easily find pricing information on Justworks’s website—making it easy to manage and create payroll budgets. It provides unlimited payroll, which means off-cycle payruns come at no extra cost. This is unlike ADP, which charges you for every pay run.
I appreciate its affordability, reliable benefits and payroll outsourcing services, easy-to-access customer support team, and user-friendly HR platform. Justworks, which also made my list of the best payroll services for small businesses, even ensures that you are covered and in compliance with workers’ compensation, ACA filings, and state unemployment insurance.
These features contributed to Justworks’s overall score of 3.82 out of 5. While it offers HR advisory services and keeps you up-to-date with labor law changes, Justworks scored the lowest in general HR outsourcing services. For example, it doesn’t assist with HR audits as Bambee does. It also doesn’t offer hiring services like ADP—unless, you get Justworks EOR, although this service covers global recruiting and payroll As of this writing, Justworks EOR is available in Australia, Brazil, Canada, Colombia, India, Ireland, Mexico, the Netherlands, the Philippines, Portugal, Spain, and the United Kingdom. .
- Payroll: $50 per month base fee + $8 per employee, per month
- PEO Basic: $59 per employee, per month
- PEO Plus: $109 per employee, per month
Add-on
- Justworks Time Tracking: $8 per employee, per month*
- International Contractor Payments: $39 per paid contractor, per month*
- Employer of Record (EOR): $599 per employee, per month**
- Justworks Payroll + Health Insurance: $8 per benefits-eligible employee, per month***
*Available in Payroll, Basic, and Plus plans
**Available in Basic and Plus plans only
***Available in Payroll plan only
- Low-cost PEO: Justworks’ affordable PEO plans are just one of the things that I appreciate about this provider. Its starter tier is less expensive than Bambee’s—$59 vs. $99 monthly—and it has features that Bambee doesn’t offer, such as employee benefits and vendor payments. Plus, Justworks PEO is IRS- and ESAC-certified, which is considered a gold standard in the PEO industry.
- Customer support: In addition to dedicated support and HR advisory services, Justworks provides 24/7 customer service to its clients. Its team of HR experts can help you set up benefits plans, run payroll, and update your company information in its system. Justworks also offers multiple ways to contact its support team—via phone, email, chat, Slack, and SMS.
- Contractor and vendor payments: While Justworks can handle payments for hourly and salaried employees with ease, it also supports payouts for vendors and contractors. Apart from unlimited and automated pay runs, its payroll solution seamlessly syncs with its time tracking tool, provided you get the Justworks time tracking add-on, so you can easily capture the actual number of hours that your employees worked in a payroll period.
You can input payment details one vendor at a time, but Justworks also supports bulk payment data uploads via CSV files. (Source: Justworks)
Justworks is excellent for companies looking for a reasonably priced PEO to handle essential HR administrative tasks. It also made our list of the best payroll services for small businesses. Apart from full-service payroll, it provides access to enterprise-level benefits plans (such as medical, vision, and dental insurance) and wellness perks (like fitness memberships) at affordable rates.
It provides compliance support by handling payroll tax filings, payments, and reporting for you. Justworks also ensures that you are covered and in compliance with workers’ compensation, ACA filings, and state unemployment insurance. While it provides HR advisory services, its certified HR professionals won’t help you create HR policies and an employee handbook like Bambee’s HR experts will.
Aside from HR advisory services, Justworks has online help and resource centers to keep you up-to-date with the latest employment regulations. (Source: Justworks)
Rippling: Best All-Inclusive HR, IT & PEO Services
Pros
- Modular HR, payroll, and IT solutions connect seamlessly with each other
- Users can easily switch its PEO solution on and off
- Integrates with over 500 third-party software
- Offers global payroll and EOR services
Cons
- Pricing isn’t fully transparent
- You can’t purchase other modules without buying the core Rippling Platform first
- Gets pricey as you add features
- Lacks phone support
Overview
Who should use it:
Rippling’s PEO is unique among other HR outsourcing companies for small business owners. If you’re looking for a flexible solution, Rippling allows you to turn its PEO off if you no longer require HR outsourcing help and then easily switch to using its HR platform. With other PEOs, you have to contact the support team for assistance.
Why I like it:
Rippling impressed me with its customizable workflows, extensive software integration options, and wide range of product offerings. It also ranks high on my list of the best HRIS for small businesses because of its all-in-one HR, expense management, and IT platform designed to streamline processes—from onboarding new hires to issuing company computers and paying workers.
You can choose the modules or features you want or sign up for its international payroll and EOR services if you need help with global hiring and pay processing. If you simply want to outsource day-to-day HR tasks, its US PEO solution helps manage your HR processes while ensuring compliance with federal, state, and local labor regulations.
These functionalities contributed to Rippling’s overall rating of 3.52 out of 5. Similar to ADP TotalSource, Deel, and Justworks, you are granted access to Fortune 500-level benefits plans like medical, dental, and vision insurance. Commuter benefits are also included, as are EPLI coverage and ACA/COBRA administration. However, it lacks the dedicated HR consultant that Bambee offers—Rippling only provides HR advisory services.
Rippling doesn’t publish its pricing information on its website. You have to call its sales team to discuss your business requirements. Rippling works with you to create a custom plan with the features and services you want.
However, you must purchase its core Rippling Platform before selecting the HR, payroll, benefits, expense management, IT, and HR outsourcing services you need. It contains all the essential functionalities for automating workforce operations, storing employee staff, customizing workflows, generating reports, and managing user permissions.
- Flexible PEO: You can easily turn Rippling PEO off if you no longer need its PEO services and then start using its HR platform. This is unlike ADP TotalSource, Deel, and Justworks, which don’t have a flexible PEO option.
- Administrative services offering (ASO): Rippling’s ASO is similar to its PEO solution but without the co-employment relationship. It also doesn’t provide access to employee benefits packages but works with your existing providers to help manage benefits and insurance claims. So, if you only need help managing and streamlining HR administrative processes, then an ASO arrangement may be right for you.
- Custom workflows: Rippling’s PEO services include access to its intuitive online platform, which comes with workflow automation tools to streamline a wide range of processes. You can create your own or use one of the templates on Rippling’s online library of workflows.
- Compliance tools: Rippling automatically manages your tax accounts and filings, including other compliance requirements like new hire state reporting. It alerts you of local, regional, and national infractions, and provides recommendations on how to address these issues. You can even use its workflow automations to ensure that your employees comply with federal, state, and local requirements. For example, you can create a workflow that prevents new employees from clocking in if they have yet to complete the mandatory workplace safety training.
Rippling’s compliance dashboard shows the number of issues that are considered “low” to “very high” priority items, so you know which ones to tackle first. (Source: Rippling)
Rippling Unity, Rippling’s base platform that all subscribers must purchase, is now called Rippling Platform.
We recommend Rippling for small businesses needing all-inclusive HR services. Its robust integration options and integrated HR, payroll, and IT solutions are designed to streamline employee management processes—from onboarding new hires to issuing company computers and paying workers. It even offers global payroll and EoR services if you need to hire and pay international employees. In addition, its PEO solution helps manage your HR processes while ensuring compliance with federal, state, and local labor regulations and laws. Rippling tops our list of the best HRIS for small businesses, as well.
Similar to ADP TotalSource and Justworks, you are granted access to Fortune 500-level benefits plans like medical, dental, and vision insurance. Commuter benefits are also included, as are EPLI coverage and ACA/COBRA administration. However, it lacks the dedicated HR consultant that Bambee offers—Rippling only provides HR advisory services.
With Rippling PEO, you and your employees can access enterprise-level benefits at more reasonable rates. (Source: Rippling)
TriNet: Best Affordable HR and Payroll Solution
Pros
- It offers affordably-priced plans.
- Time tracking and scheduling are included in all plans.
- It offers employee self-onboarding with automated solutions.
Cons
- Payroll, HR advisory services, recruiting, and benefits administration are paid add-ons.
- Advanced HR tools are in higher-tiered plans only.
- Medical and dental plans are not available in some states.
- Essentials: $10 per employee per month
- Growth: $20 per employee per month
- Zen: $33 per employee per month (payroll is included in this tier)
Add-ons
- Payroll processing: $6 per employee per month
- Benefits administration: $5 per employee per month*
- Recruiting (via JazzHR): Starts at $35 per month
- HR advisory service: $8 per employee per month
*Free if managed by a TriNet broker partner
- HR support: TriNet gives you access to HR experts that can help you navigate complex HR issues, answer questions, and provide strategic advice tailored to your specific needs.
- Payroll: TriNet offers a seamless approach to tax documentation with its paperless W-2 system. Additionally, it’s the only provider on this list that allows employees to directly import their W-2 into Turbo Tax. It also calculates and manages your payroll as well as handles your local, state, and federal taxes.
- Robust reporting options: TriNet has extensive reporting capabilities from payroll summaries to employee attendance. It also generates comprehensive reports, such as garnishment audits, deductions, and tax liabilities.
TriNet gets the spot as the best affordable HR and payroll solutions on this list with a starting price of $10 per employee per month. With just the basic plan, you have access to time tracking, scheduling, onboarding, and employee management features. If you want to access its performance management, compensation management, and employee engagement features, they are only available in its higher tiers.
Just like Justworks and ADP, TriNet has a PEO with IRS and ESAC certifications. What gives it an edge against its competitors, however, is that its PEO can be customized based on your industry. This customizability ensures that businesses receive industry-specific support and enhances operations efficiency.
TriNet’s mobile app allows employees to access their information or file their PTO all in one place. (Source: TriNet)
ADP TotalSource: Best for Strategic HR Management
Pros
- PEO service is IRS- and ESAC-certified
- 60 years of payroll and HR outsourcing experience
- Offers multiple HR outsourcing services, such as recruiting outsourcing, managed payroll services, and a managed human capital management (HCM) solution
Cons
- Pricing isn’t transparent
- Customer service isn’t always easy to contact
Overview
Who should use it:
ADP’s product portfolio includes a wide range of HR solutions and services designed to meet the various HR needs of small to large businesses. You can choose from several outsourcing solutions, such as hiring services, its ADP TotalSource PEO solution, and its ADP HCM Managed Services designed to help enterprises manage end-to-end HR processes.
Why I like it:
ADP’s PEO, ADP TotalSource, offers over 60 years of HR expertise and experience—more than the other PEOs on my list. If you just started a new company or have plans to expand operations, you can take advantage of the strategic HR guidance provided by ADP’s team of dedicated specialists. They will ensure you remain compliant with labor laws and regulations as you grow your business and workforce. Aside from expert HR support, you are also granted access to an online HR platform for tracking employee information, benefits, payroll, and more.
If you require hiring support, ADP offers recruitment process outsourcing (RPO) services to help you attract and hire qualified employees. If you’ve grown into a large business, you can sign up for its ADP HCM Managed Services, where ADP will handle HR admin tasks and optimize processes so you can spend more time tackling strategic projects to grow your company.
In my evaluation, ADP earned an overall rating of 3.52 out of 5 because of its feature-rich HR platform, solid HR support, and extensive portfolio of HR services. However, its HR software isn’t as comprehensive as Rippling, which includes IT tools to manage software access and company computers. While it offers global payroll solutions, it lacks the EOR service that Rippling, Justworks, and Deel offer.
Similar to Rippling, ADP doesn’t list its pricing information on its website. You have to call its sales team for a quote.
- Highly-experienced PEO: Rippling may have a flexible PEO but it doesn’t compare to the decades of HR and payroll expertise that ADP offers through its ADP TotalSource solution. It’s considered one of the most well-established PEOs in the industry. Similar to Justworks, its PEO service is also IRS- and ESAC-certified.
- Compliance and HR support: ADP HR experts have over 60 years of experience and can advise you on compliances in everything—from hiring to terminating employees. It can help you avoid potential legal issues, as it constantly tracks regulatory changes. It even provides legal assistance if an employee sues your company, provided you followed ADP’s recommended processes.
- On-demand payments: Deel and ADP are the only providers on my list with this feature, which enables your employees to access their earned wages in advance. This is great for workers who need money during personal emergencies. However, unlike ADP, Deel collects an add-on fee for this service—$29 per employee, as of this writing.
- RPO solution: In addition to helping you attract, find, and recruit employees, ADP will assist in creating a strategic recruiting plan to improve talent acquisition processes and the quality of hires. If you have in-house recruiters, ADP can help your team gain technical knowledge through training programs to boost their hiring capabilities.
ADP RPO includes access to AIRS, which has over 30 online workshops and learning sessions for hiring managers and recruiters. (Source: ADP)
ADP’s PEO service, ADP TotalSource, offers decades of HR expertise and experience (60-plus years) and a robust set of features to choose from. Companies just starting out with plans to expand operations can take advantage of the strategic HR guidance provided by ADP’s team of dedicated specialists to ensure that they remain compliant with labor laws and regulations as they grow their business and workforce. Aside from expert HR support, you are also granted access to an online HR platform for tracking employee information, benefits, payroll, and more.
While you get feature-rich HR solutions and services, ADP TotalSource’s team of HR professionals won’t help create your HR policies for you (Bambee offers this service). They only provide expert guidance in addressing HR, compliance, and employee-related issues. Plus, the online solutions included in ADP TotalSource aren’t as robust as Rippling, which offers HR, IT, payroll, and expense management tools.
ADP TotalSource comes with an online HR platform that you can access on computers and via mobile devices. (Source: ADP TotalSource)
Papaya Global: Best for Companies With International Staff
Pros
- It helps you hire and pay employees in 160-plus countries.
- It offers worker classification and compliance check.
- It provides a dedicated customer success manager.
Cons
- It charges a setup fee per location.
- It has no performance review tools.
- It can get expensive as you add more services.
Payroll Plus
- Grow Global (101–500 employees): $25 per employee monthly
- Scale Global (501–1,000 employees): $20 per employee monthly
- Enterprise Global (1,000-plus employees): $15 per employee monthly
EOR: $599 per employee monthly
Contractor Payments and Management: $30 per contractor monthly
Agent of Record: $200 per contractor monthly
Payments: $2.5 per transaction
- Payroll analytics: Papaya Global’s analytics lets you see your payroll and HR data in real time. You can also break down these data to get a more granular view of each project, helping you make more informed decisions.
- Benefits and equity management: Papaya Global analyzes your benefits plans on a country-by-country basis. The analysis can help you design and offer competitive and attractive benefits packages that are tailored to the specific needs and preferences of the local workforce.
- Employee of Record (EoR) function: Papaya Global’s EoR takes on the responsibility of hiring and paying international employees on behalf of your company. This service ensures that your employees are paid accurately and on time, while also managing benefits and other statutory requirements.
Papaya Global, like Rippling and ADP TotalSource, has global payroll and HR capabilities. However, Papaya stands out because of its wide network of in-country partners that will help you hire and pay workers in more than 160 countries. Compared to the other providers on this list, Papaya Global partners with local experts instead of setting up local entities in the countries it serves. It also has compliance checks and worker classification functionalities, ensuring that companies remain compliant with local regulations and effectively manage their global workforce, reducing potential risks and liabilities.
However, Papaya Global is not IRS- or ESAC-certified like TriNet, Justworks, and ADP TotalSource. It also charges a set-up fee and has no employee development tools. These are just some of the factors why Papaya Global lost points to the other providers on this list.
Papaya Global’s payroll analytics dashboard gives you a clear overview of all the projects and payments you have in different countries. (Source: Papaya Global)
How to Choose the Best HR Outsourcing Service
To help you choose the best HR outsourcing service, we examined 14 popular HR service providers and looked for essential HR functionalities and tools small businesses need, weighing attributes accordingly. Before jumping right into one service, we recommend you evaluate each service provider based on the following criteria:
Pricing
When determining which HR outsourcing service is right for your small business, you need to weigh your budget against the features you most need from the software. How much you end up paying will depend on whether it is a flat fee for all features or if you have to pay additional for each selected feature. In addition, pricing can range from a per-employee, per-month price to a straight monthly price or even an hourly price.
User Feedback
One of the best ways to know if a software is right for you is to see what other people are saying about it. We recommend that you check out sites like G2 or Capterra and see what users have to say. For instance, Bambee scored a 4.6 out of 5 on Capterra because users claim it is simple to use and offers the best value for the money. Alternatively, Rippling scored a 4.8 out of 5 on G2 because users like its robust features and how easy it is to manage benefits in one place.
Key Features
When evaluating the software, be sure to look at the key features available. A good HR outsourcing service should include most, if not all, of the following features:
- Payroll processing
- Benefits administration
- HR management
- Legal compliance
- Policies and procedures
- Applicant tracking
- Performance management
- Reference and background screening
- Counseling services
Ease of Use
A user-friendly HR outsourcing system not only enhances user satisfaction but also has a positive impact on productivity. When users find a software system easy to use, they can quickly learn how to perform tasks and complete them efficiently. Furthermore, an intuitive interface reduces the time required for training new users, allowing you to onboard employees more seamlessly.
Type of HR Outsourcing Service
There are various types of HR services, and partnering with the right provider will make managing compliance and day-to-day HR administrative processes easy for you. To help determine which one is best for your company, here are four common HR outsourcing services for small business owners.
- Individual HR Consultant: An independent HR consultant is best for those wanting the benefit of working side-by-side with an expert at your location who helps you identify HR needs as your business grows. Pricing can vary from $50 per hour to write job descriptions to as much as $500 per hour to manage an HR strategy session.
- HR Consulting Company: We recommend outsourcing to a professional HR consulting firm if individual tasks or projects are your primary need. For example, maybe you want to set up a health insurance benefits program, update your employee handbook, set up policies, or conduct training on how to avoid discrimination in the workplace. Most HR consulting companies offer custom-priced plans—you have to call the provider to discuss your requirements and request a quote.
- PEO: A PEO actually hires your employees and leases them back to you for a fee. While you manage day-to-day work activities and supervision, the PEO manages HR and acts as the EoR. PEOs are priced in various ways. Some providers, such as Justworks, have starter monthly fees priced as low as $59 per employee (for the first 49 employees; it goes down to $49 for your 50th employee onward). Others cost between 2% and 6% of employee annual salaries.
- HR Service Provider: We recommend an HR service provider as a step up from software alone to ensure your company is compliant with all labor laws, especially if you’re in a regulated industry (such as banking, healthcare, or manufacturing) that requires licensing, safety, and certifications. An HR service provider is not a co-employer like a PEO, but it provides the benefits of an HR expert at your fingertips. Pricing for HR services runs a bit higher than software alone—between $10 and $75 per month, plus an extra $2–$15 per month per employee.
Methodology: How We Evaluated the Top HR Consulting Services for Small Business Owners
We compared each provider based on their pricing, ease of use, HR features, and reporting capabilities. We also looked at user feedback to get a more comprehensive understanding of how each provider works. Aside from the primary criteria, we also considered the availability and quality of customer support and their integration with other business tools and systems. Lastly, we also evaluated how well each provider can scale their services as a business expands.
Click through each tab to get a more in-depth look at our evaluation:
20% of Overall Score
10% of Overall Score
We looked at the support options available, such as the support hours and if customer representatives can be reached via phone, email, or chat. We also checked if the providers assign dedicated HR advisors to their clients and the types of help resources offered, such as how-to guides and a community forum.
5% of Overall Score
In this criterion, we considered the platform’s data security features, permission controls, mobile app functionality, software integrations, and general ease of use.
20% of Overall Score
We looked for the types of HR services it offers (such as PEO, EOR, and ASO) and if it assists in creating employee handbooks, managing training and performance reviews, handling government claims and IRS audits, and conducting investigations for employee disciplinary actions and terminations.
15% of Overall Score
In this criterion, we checked if its payroll services cover all 50 states and if it handles tax payments and filings. We also looked for other pay processing features, such as unlimited pay runs and multiple payment options.
15% of Overall Score
Apart from looking at the variety of benefits plans that it offers, we checked if the provider assists in workers’ compensation insurance management, COBRA and ACA administration, and unemployment insurance claims.
10% of Overall Score
In this criterion, we checked if it helps find, track, and onboard employees. We also considered the compliance services that it offers, such as background checks and new hire state reporting.
5% of Overall Score
We looked for key features, such as online document storage, self-service portals, communication tools, and workflows to streamline onboarding and offboarding processes. We also checked if there are pre-built reports available and if the reports can be customized.
HR Outsourcing Frequently Asked Questions (FAQs)
Outsourcing HR makes more sense for startups and small businesses as they may not have the resources to hire a full HR team to manage HR operations. This allows employers to delegate specific tasks (such as creating HR policies, processing payroll, and managing benefits plans) to a consultant or HR service provider. These providers will also ensure you stay up-to-date with labor regulations and help you avoid compliance risks.
Because an HR outsourcing firm can be a person, a vendor, or a group of consultants, you need to do your due diligence and have a contract to clarify terms and expectations. A few areas to consider when looking to outsource HR functions include the level of expected HR expertise, the availability of transparent pricing, and an agreement on who owns the materials created, as well as maintaining confidentiality.
Even if you have a small business, you need to set up an HR department so employees can have someone to turn to if they have questions about payroll and other employment-related topics. It doesn’t have to be a big team. Depending on your HR needs and the size of your workforce, you can make do with one employee who can efficiently handle payroll and manage benefits. However, if you recruit often or have plans to expand, then you will need another employee who can hire, onboard, and train new workers.
Bottom Line
The best HR outsourcing service for your business is the one that matches your specific needs. HR outsourcing is much less expensive for a small business than hiring a full-time HR person, whether you choose to work with a consultant or manage HR yourself with great software. In fact, until your company gets closer to 100–200 employees, a full-time HR person may not be necessary (unless you’re in a unionized business, plan rapid growth, or have lots of labor law issues).
We find Bambee to be the best overall HR outsourcing vendor for small businesses because it provides both expert HR support and the basic tools for handling onboarding, performance and training tracking, and HR compliance. Its online document storage even complies with federal and state record retention laws. Plus, you get a dedicated HR manager to help you navigate the complexities of managing employees and labor laws.