The best HR outsourcing services
Do you want to go straight to the answer? For most people, the best human resources outsourcing service is undoubtedly ADP or Insperity.
Human resources are an essential aspect of any company.
Historically, human resources departments were reserved for large organizations. Small businesses could make do with an accountant who handled HR responsibilities.
But today, businesses of all shapes and sizes can take advantage of outsourcing human resources to accomplish crucial tasks. Large companies can use HR outsourcing to reduce their operational costs. Outsourcing tasks and roles is much more cost-effective than hiring internal staff.
What is the best human resources outsourcing service? Discover it below.
The 8 best HR outsourcing services of 2020
Many companies offer a form of human resources outsourcing. Human resources are provided by most of the top PEO service providers in the market.
After researching dozens of human resources and outsourcing companies, I have selected the top eight to consider.
ADP - Best HR outsourcing service for benefits administration.
Insperity - The best HR outsourcing service for medium-sized companies.
Paychex - Best HR outsourcing service for payroll.
Zenefits - The best HR software for small businesses.
Engager PEO - Best HR outsourcing service for legal compliance.
TriNet The most flexible HR outsourcing solutions.
Partners of G&A - Best human resources outsourcing for employee integration and development.
Tandem HR- The best HR outsourcing service for small growing businesses.
I will present below a detailed review of the features, benefits, and other considerations for each of these providers.
The best HR outsourcing services
ADP is best known for benefits administration
- Comprehensive HR solutions
- Flexible plans and services
- Solutions for businesses of all sizes
- A top-notch customer service
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ADP offers both software and services in human resources. They provide solutions for small businesses as well as for medium-sized organizations and companies.
The ADP is also very flexible. You have the possibility to outsource all or part of your human resources management team.
Some of ADP's HR services include:
Payroll
Time and presence
Retirement plans
Insurance
This provider offers commercial insurance as well as group health insurance for your employees. As ADP is a large company, it has leverage and negotiation power with all major health insurance providers.
Thus, even small businesses can have access to exceptional plans for their employees, which they could not obtain elsewhere outside of this network.
ADP has a support team made up of knowledgeable human resources professionals who can be reached by phone, email, or live chat. They can create and distribute all necessary forms, policies, and job descriptions for your organization. You can even create a customized employee handbook in compliance with local and federal laws.
They also provide you with advice to help you acquire an optimal experience in human resources.
From all social benefits to compliance and implementation of self-service tools for employees, ADP has everything you need.
Their prices are hidden on the website, but you can get a free quote on their site.
Insperity (ideal for medium-sized businesses)
- A complete HR solution
- Individual & customized HR packages
- In operation for 35 years
- The best for medium-sized organizations
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Insperity offers a comprehensive HR solution. From technology to social benefits, you can get a personalized HR package based on the needs of your organization.
Insperity gives your employees access to Fortune 500-level benefits. These benefits include medical, vision, and dental coverage.
The processing of salaries, management of W-2s, W-4s, and employment verification can all be handled by your outsourced HR team at Insperity.
Insperity will help you in the areas of liability insurance, workers' compensation, and other risk management areas. This service provider can also assist you in complying with human resources rules for issues such as unemployment claims and reporting to the government.
Every company wants to retain the best talents. Insperity will help you create recognition programs, an employee handbook, and improve your employee training process.
I recommend Insperity to medium-sized organizations. They have solutions for businesses with 5 to 149 employees. However, their main focus and expertise are geared towards companies with over 150 employees.
In addition to comprehensive HR packages, you can also use Insperity for individual solutions like
Recruitment
Human Resources Consulting
Retirement
Insurance
Accounting and bookkeeping
Like most top outsourcing services, Insperity offers new and modern technology for all its services.
With nearly 35 years of experience and over 70 offices throughout the country, Insperity is a key player in human resources outsourcing.
Paychex (The best for payroll)
- Wide range of HR services
- Pricing based on the number of employees
- Ideal for small organizations
- Well-informed HR professionals
Paychex is one of the best online payroll services on the market today. But few people are aware of their fantastic human resources outsourcing services.
In addition to payroll, Paychex has:
Retirement services
Insurance services
HR Professionals
Benefits administration
Compliance services
This is a top-notch solution to consider for small organizations. While Paychex offers human resources services for companies with up to 90 employees or more, it is one of the best providers for businesses with 50 employees or fewer.
Paychex has an impressive mobile application that can be used to track things like hiring, labor costs, and employee turnover.
The application can also be used for employee self-service tools and employee training.
More than 670,000 organizations use Paychex. Therefore, this is a company that you can trust for your most critical business needs.
For those of you who already have an HR department in place, Paychex can act as an extension of that department by providing you with a dedicated outsourced HR manager. They can help you recruit, onboard, and retain top talent.
An outsourced HR manager from Paychex will take care of workforce analysis, benchmarking, corporate culture strategy, benefits management, and basic employee training.
This is essentially everything you need for a human resources manager, without having to hire a full-time internal employee.
Zenefits (the best for small businesses)
- Best HR software
- Built for small businesses
- Streamline your HR tasks
- Prices start at $8/month
Zenefits is a little different from some of the other options on our list. Technically, Zenefits is not an outsourcing service; it is a software for human resources.
But it serves the same purpose as an outsourced service in terms of ease and cost reduction. Zenefits will be a less expensive alternative to a full-service outsourcing company.
This HR software has been designed for small businesses. It contains everything you need to streamline your HR tasks and administration.
Here are some of the main HR features available on Zenefits:
Create compensation packages and send them to new employees
Self-boarding for new employees
Employee management tools
PTO Policies and Vacation Request Management
Intelligence reports for your staff
Mobile accessibility (for administration and employees)
Zenefits has dozens of integrations already built into the system. The platform also offers options for payroll, benefits, employee scheduling, and time tracking.
Most human resources outsourcing services require you to obtain a personalized quote from the provider. But Zenefits' pricing is simple and available on the website. Here is a brief overview of Zenefits' plans and pricing:
Essential Products - $8 per month per employee
All the essential features of HR
Employee time and schedule management tools
Integrations (G Suite, Slack, Salesforce, etc.)
The Zenefits mobile application
Growth - $14 per month per employee
All the essential features
Compensation Management Tools
Performance management
Essential Products - $21 per month per employee
All the characteristics of growth
Follow and measure employee well-being
Custom tools, advice, and training
Relevant content on well-being, triggered automatically based on employees' actions
All these rates are based on an annual plan. Zenefits offers monthly rates for about 30% more per month. In addition to the basic plans, you can add the following features to your Zenefits subscription:
Payroll - $6 per month per employee
Consulting services - $8 per month per employee
Benefits administration (with your own broker) - $5 per month per employee
If your small business needs to improve how you manage HR tasks but does not have the necessary funds to completely outsource the service, Zenefits is the ideal solution for you.
Engager PEO (Best for legal compliance)
- Provider of comprehensive PEO services
- Managing complex legal needs in human rights
- Every consultant is a lawyer
- Strict compliance standards
As its name clearly indicates, Engage PEO is a professional employer organization offering a comprehensive range of services. This company provides a PEO experience that always aims to prioritize the needs of the client through its innovative business model.
Founded in 2011, Engage PEO quickly became one of the fastest-growing private companies in the country. It is licensed and serves 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 a lawyer. These legal professionals have extensive experience in labor and employment law.
For those of you with complex legal needs in human resources for industries where compliance is strict, Engage PEO will be a top choice to consider. Here is a quick overview of some of the key outsourced HR functions offered by this provider:
Employee Policies
Employee Handbook
Compliance with EEO, ADA, and FMLA
Respect for hours by the Department of State and the US Department of Labor
Unemployment benefits management
Recruitment and recruitment assistance
Background checks and drug screening
Employment Practices Liability Insurance
Employee training
As a PEO provider, Engage PEO also offers services for payroll and tax administration, workers' compensation, risk management, employee benefits, and integrated technology solutions.
TriNet (the most flexible HR outsourcing solution)
- A complete HR solution
- A wide range of industries
Global human resources platform
- Flexible plans and services
TriNet is another comprehensive human resources outsourcing solution. They offer flexible plans and services to meet the needs of all businesses, regardless of their size.
They work with companies in a wide range of sectors, including
Retail sale
Financial services
Architecture
Engineering
Manufacturing
Non-profit organizations
Wholesale trade
Marketing and advertising
Technology
Consultation
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 talent.
HR outsourcing services consist of HR consulting, benefit options, payroll services, and risk mitigation measures. You will also benefit from TriNet's comprehensive HR platform. This technology includes tools for employee self-service and mobile access.
TriNet works with some of the best insurance companies in the current market. You can offer your employees medical, dental, vision, life, retirement, and disability coverage.
Among the main carriers of TriNet are MetLife, Kaiser Permanente, Transamerica, Aetna, Aflac, MassMutual and UnitedHealth Group.
G&A Partners (the best for employee integration and development)
- In operation for over 20 years
- Full service or à la carte
- Payroll, recruitment, & more
- The best for niche industries
G&A Partners has been providing professional services to businesses for over 20 years. They offer comprehensive human resources outsourcing services in areas such as payroll, benefits, compliance, workplace safety, performance management, and recruitment.
Your company can work in two different ways with G&A Partners.
You can authorize it to act as an official employer under a PEO (Professional Employer Organization) arrangement. You can also choose the services you need through their ASO (Administrative Services Organization) options.
Think of it this way. The first option is full service, the second is a la carte.
For those of you who already have an internal human resources service with the necessary infrastructure, the OSSA model will probably be a better option for you. Otherwise, I recommend PEO services.
In addition to human resources, G&A Partners offers payroll services, benefits, and HR technology.
This provider is not for everyone. Among the common industries served by G&A Partners, we include
Non-profit organizations
Healthcare
Manufacturing
Professional services
Franchises
One of the unique features of G&A Partners is its employee development service. This HR function includes candidate sourcing, job description, job offers, CV verification, and pre-employment assessments.
Once an employee is hired, this subcontracting company will also take care of welcoming, enrolling in benefits, and managing performance.
Tandem HR (The best for small growing businesses)
- Fully customized plans
- Easy to scale
- A wide range of services
- Provider of comprehensive PEO services
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Tandem HR offers a wide range of human resources solutions for small businesses. This provider has the tools and expertise necessary to help small businesses grow.
If your business is experiencing rapid growth and you need an outsourced HR company to grow with you, Tandem HR will be a wise choice for you.
I love Tandem HR because they do not believe in one-size-fits-all solutions. Each company receives 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 do not have a highly developed human resources infrastructure. Tandem HR can help you establish this infrastructure and manage the entire department. As your organization grows, Tandem HR will grow with you.
These personalized HR solutions will help you save time, save money, boost employee productivity, retain talent, and stay compliant at both the state and federal levels.
How to choose the best human resources outsourcing service for your company
Every business has unique needs. That is why it is so important to choose the right HR outsourcing service for your company. With so many options available, how can you know which one is the best? That is the methodology we use here at Quick Sprout. You can also use it to refine your choices.
Company size
Outsourcing companies typically have experience working with certain types of businesses.
If you are a small business owner without a human resources infrastructure, you want to choose a service that has experience in setting up small organizations from the ground up.
Large companies may not need this type of assistance. On the contrary, a large company may simply need to outsource a certain role or task.
Services
Almost all human resources outsourcing companies offer similar services. They may vary slightly from one company to another.
Some of the companies on our list are PEO providers. These options offer services that go beyond basic HR responsibilities. If you need additional help with this type of tasks, a full-service PEO provider will be a top choice for you.
Technology
Look for an HR outsourcing service that has the tools and technology needed to streamline your HR processes. Mobile applications and self-service tools for employees should be the norm.
You can also 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 company need something specific?
For example, you may own a business in a sector where labor laws are strict. In such a situation, you could benefit from an outsourced human resources service like Engage PEO. They have lawyers specialized in labor law.
Or perhaps you need a human resources service that can improve your payroll process. Paychex would be the best option if you fall into this category.
Whatever the specific circumstances of your business, there is usually a specialized human resources outsourcing service in this field.
Conclusion
What is the best human resources outsourcing service? Here is a summary of the main options discussed in this guide:
ADP - Best HR outsourcing service for benefits administration.
Insperity - The best HR outsourcing service for medium-sized companies.
Paychex - Best HR outsourcing service for payroll.
Zenefits - The best HR software for small businesses.
Engager PEO - Best HR outsourcing service for legal compliance.
TriNet - The most flexible HR outsourcing solutions.
G&A Partners - Best human resources outsourcing for employee integration and development.
Tandem HR- The best HR outsourcing service for small businesses in growth.
From payroll assistance to benefits administration and human resources management software, there is an option for all businesses of all shapes and sizes listed on this list.