HR plays a crucial role in the management and development of a business. Be it a small business company or a multinational company, all need to be worked out with proper HR resources to have a better check on the working system as well as place.
The HR department of an organization holds the responsibility of managing one of the most significant assets, human capital. Therefore, its efficient operation directly affects the business’s bottom line.
In recent years, a trend is prevailing where companies are outsourcing the HR department for several reasons. If you are grappling to understand why you should outsource your HR department and who provides the best service in the field, read on to learn more.
What Is HR Outsourcing?
Why Should You Outsource Your HR Department?
How Popular Is HR Outsourcing in the USA?
Top HR Outsourcing Services in the USA
- ADP
- Insperity
- TriNet
- ACS
- Gusto
- Bambee
- Rippling
- Paychex
- INFINITI HR
- G&A Partners
- Tandem HR
- Engage PEO
What Is HR Outsourcing?
HR outsourcing is delegating key HR functioning, such as talent acquisition, employee training, benefits administration, payroll and taxes, and risk management and compliance, to a third-party company.
Businesses are entering into contractual agreements with third-party service providers to handle the management of their human resources for consideration.
Why Should You Outsource Your HR Department?
The core idea behind HR department outsourcing is that for activities that are not strategically aligned with the business bottom line and can be done cost-effectively by a third party, it is best to get them done from outside.
The goal of any business is to focus on its core operation and channel resources toward that. Therefore, HR activities that do not contribute directly to the company and are not confidential in nature can be delegated to third-party service providers and save the cost of internal operations.
If you have a small business, maintaining a separate HR department may be burdensome for you. It will not only add to the cost of the resources but also increase the workload. In such a situation, transferring the management of your HR activities to another entity is the right decision.
By outsourcing the non-critical HR functioning, you can save money, time, and resources that can be devoted to more productive and mainstream activities. Besides, third-party HR service providers are specialized entities in the field.
Therefore, they can provide more efficient services than an internal team of HR managers and staff. For example, recruiting agencies have better coordination and understanding of the online job portals and thus can access a richer and wider pool of talent compared to your internal HR team.
In addition, these agencies also maintain a professional recruitment process to select the best in the market. As a result, you will get the best of the talents with the help of recruiting agencies at a much lower cost and time.
How Popular Is HR Outsourcing in the USA?
A report by Technavio stated that the human resource outsourcing market is anticipating a growth of USD 10.90 billion globally between 2021 and 2026. The center of the growth will be North America. This region will contribute 56% of the market growth during the forecast period. The USA and Canada are the two primary countries for human resource outsourcing.
Two driving forces have pumped up the outsourcing trend in HR activities in the USA: the COVID-19 pandemic and the Industry 4.0 trend. According to Finvisor, 42% of US employees turned into full-time remote workers in 2020.
The transition was due to the onslaught of the COVID-19 pandemic. Despite the subsiding of the pandemic waves, companies continue to keep the work-from-home policies in place. As a result, HR operations are becoming complex for enterprises with smaller HR teams.
On the other hand, advanced technologies, such as cloud computing, IoT, big data, augmented reality, and analytics, are digitizing business operations and transforming their processes.
As a result, more resources are needed to be dedicated to the core operations than peripheral activities such as HR. Therefore, enterprises are outsourcing HR activities to lower per-person access costs and enhance overall productivity.
Another trend that is driving HR outsourcing in the USA is the adoption of recruitment analytics. Several organizations are using analytics to deal with a large volume of employee data.
They employ scientific and statistical models to draw meaningful insights from raw data. The increasing use of social media in proactive recruitment has also added momentum to outsourcing HR functioning.
Top HR Outsourcing Services in the USA
ADP
| Rating | 3.8/5 |
|---|---|
| Best For | Overall HR Solution especially for Small Business |
| Pricing | The Pricing starts from $29/month |
| Website | www.adp.com |
ADP is one of the oldest HR service providers in the USA established in 1949 and Headquartered in New Jersey, USA. With around 58000 employees, this organization is offering services to companies that need HR services on a piecemeal basis.
They have a lengthy catalogue of HR services. Companies can choose from it as per the solution they need. In particular, ADP is best at providing benefits administration, including Recruitment and consulting, Attendance management, Payroll processing, Business insurance for employees, and Retirement planning.
Insperity
| Rating | 3.8/5 |
|---|---|
| Best For | Mid-Sized Business |
| Pricing | NA |
| Website | www.insperity.com |
Insperity was set up in 1986 and is now headquartered in Houston, Texas, USA. Now with a 3000+ workforce, it is best for mid-sized businesses as it offers Full-Service HR functions based on the employee strength of the hiring company, so, the higher the employee strength, the better the cost-effectiveness of the solutions.
Insperity HR solutions effectively streamline and automate primary HR operations, such as benefits management, payroll processing, retirement planning, performance and training management, etc. It also assists organizations in providing health insurance coverage to their workforce.
TriNet
| Rating | 3.8/5 |
|---|---|
| Best For | Remotely Reporting and Tracking |
| Pricing | The Pricing starts from $80 per user/month |
| Website | www.trinet.com |
TriNet was established in 1988 in Dublin – California, USA. It is best known for its industry expertise. As an HR service provider, TriNet covers every aspect of the field and is a good choice for established companies.
TriNet offers simplified solutions to the already complicated HR process of moderate to large companies. Additionally, the company is well known for its highly consistent training programs for all categories of employees, including those in leadership roles.
ACS
| Rating | 3.8/5 |
|---|---|
| Best For | Remotely Reporting and Tracking |
| Pricing | NA |
| Website | www.acsicorp.com |
ACS was established in 1998 and is renowned for its end-to-end talent management solutions. It is headquartered in Duluth, Georgia, USA, and provides specialized recruitment processes so that the client organization gets to select the right person for the right job.
ACS also provides training programs if necessary, and manages the critical areas of day-to-day responsibilities. It also assists employee relationship management and drives culture change through various programs.
Archana Karthikeyan
Gusto
| Rating | 3.8/5 |
|---|---|
| Best For | Remotely Reporting and Tracking |
| Pricing | The Pricing starts from $39/month |
| Website | www.gusto.com |
Gusto was established in 2011 as an HR service company headquartered in California, USA. Their speciality is full-service payroll management. Gusto helps its client organizations automatically file payroll taxes and tracks time-off requests and employee benefits. In addition, it keeps the client abreast of the changes in tax laws and stores employee 1-9s, contractor 1099s, and W-2s online.
With a workforce of less than 5000, it has earned a reputation for its mobile wallet app. With this app, employees can manage their deposits and paychecks, save money, access emergency cash, and do many other things.
Bambee
| Rating | 3.8/5 |
|---|---|
| Best For | Remotely Reporting and Tracking |
| Pricing | The Pricing starts from $99/month |
| Website | www.bambee.com |
Bambee was established in 2016 and is headquartered in Los Angeles, CA, USA. Bambee is one of the newest additions to the HR consultancy market and it has carved a niche for itself as a saviour of startup businesses. This organization mostly caters to the HR needs of companies with less than 500 employees.
Their HR solutions are customized according to the client’s requirements. Bambee has professionally skilled HR personnel who can devise solutions for its clients and excelled them in automating different HR tasks.
Rippling
| Rating | 3.8/5 |
|---|---|
| Best For | Remotely Reporting and Tracking |
| Pricing | The Pricing starts from $8 per user/month |
| Website | wwww.rippling.com |
Rippling was established in 2016 and is headquartered in San Francisco, California, USA. Rippling is known chiefly for its full-fledged PEO solutions. The company provides a platform/software to its clients that simplify processes, such as talent recruitment and onboarding, right from its start till the end.
In addition, Rippling also specializes in payroll management and training. The platform has everything integrated for separate HR and IT but it still keeps all data in a unified place of the workforce.
It allows the customers to automate their workflow with the Rippling Automator, such as adding new hire information, application reviews, employee compensation, and even updates for engineering documentation.
Paychex
| Rating | 3.8/5 |
|---|---|
| Best For | Payroll Services |
| Pricing | NA |
| Website | www.paychex.com |
Paychex was established in 1971 and headquartered in Rochester, New York, United States. It provides HR consultancy alongside a full range of PEO services with a customized package that suits customers’ business needs. It handles almost all HR tasks, right from payroll and benefits to legal services and training.
It ensures error-free payrolls for the workers which is one of the most critical tasks for any HR department. It allows employees to change their own personal information and also allows a two-way conversation with employees, receive real-time reports and automate essential activities. It makes HR operations efficient and affordable and provides full PEO service with maximum efficiency.
INFINITI HR
| Rating | 3.8/5 |
|---|---|
| Best For | Large Companies |
| Pricing | The Pricing starts from $159 per month |
| Website | wwww.infinityhr.com |
Another name on the list is Infiniti HR, founded in 2008 and headquartered in Burtonsville, MD. It is an excellent PEO provider for all sorts of large organizations.
Its HR solutions come in four different strands that cover the critical HR responsibilities of any organization. The strands cover from payroll and recruitment to insurance, risk management, and benefits and all these solutions are extremely customizable.
G&A Partners
| Rating | 3.8/5 |
|---|---|
| Best For | Employee Traning and Development |
| Pricing | NA |
| Website | www.gnapartners.com |
G&A Partners, founded in 1995 and headquartered in Houston – Texas, United States provides full-service HR outsourcing for things like payroll, benefits, compliance, workplace safety, performance management, and recruitment and it does so with its own WorkSight platform, which offers single sign-on access to a range of easy-to-use modules for tackling every key HR task.
It provides 24/7 access to services for staff and managers, and it has on-demand data available alongside scheduled reports. It uses advanced technology to help find and track applicants for new jobs. G&A Partners comes with a customizable size and range of services and the firm’s in-house specialists tackle all of the relevant tasks and answer any questions.
There are two different ways a company can work with G&A Partners— through a PEO or an ASO (administrative services only) model. There are also plenty of reporting tools and dashboards for the company and its employees, in order to provide them with the correct options they need. It has training content including things like quizzes, videos, interactive assignments, and AICC and SCORM courses.
Tandem HR
| Rating | 3.6/5 |
|---|---|
| Best For | Evaluating Risk Management |
| Pricing | NA |
| Website | www.tandemhr.com |
Tandem HR is another great platform helping businesses by providing them with HR solutions along with infrastructure and expertise solutions too. Tandem HR is known to provide similar multiple services such as payroll, human resources, etc. However, the thing that makes it better than others is its risk management system.
They allow you to keep track of and calculate your risk management system. They make their client’s businesses prepared for any uncertain situations to arrive. Tandem HR allows its risk management system to help clients by providing services such as safety audits, accident investigations, etc.
Engage PEO
| Rating | 4.5/5 |
|---|---|
| Best For | Medium and Large Complex Businesses |
| Pricing | The Pricing starts from $15 user/month |
| Website | www.engagepeo.com |
Engage PEO is another great platform one can think of. They are the best choice for most medium and large complex businesses. They provide top-level services in the field of HR outsourcing.
Engage PEO has multiple services to offer such as payroll, tax admission, hiring, recruitment assistant, etc. However, it is more popular for its client-based work. It is known to provide the services by keeping the client’s needs in mind as a top priority. And the most important fact about Engage PEO is that every HR is an attorney. Hence this makes it a perfect stop for complex businesses.
Conclusion
Despite being a core business operation, HR activities are outsourced because they are challenging and time-consuming. A reliable HR outsourcing company can offer stability and clarity to the business and allows the customers to focus more on important areas.
Specialized HR outsourcing companies adopt the latest technologies and capitalize on outsourcing trends to keep your business one step ahead of competitors.
FAQs
What are the top 3 global HR services firms?
The top 3 global HR services firms are Deloitte, Accenture, and Ernst Young.
In which country is HR in demand?
Some of the countries with high HR demand are the UK, the USA, and Canada.
What are the 4 types of HR?
There are many types of HR. The most common 4 types of HR are Administrator Human Resources (HR), Human Resources (HR) Assistant, Employment Specialist, and Director of Human Resources.
What is the best HR platform?
Some of the best HR platforms are BambooHR, Zenefits, Gusto, etc.
