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Top 7 Human Resources Outsourcing (HRO) Companies for Small Businesses


Top 7 Human Resources Outsourcing (HRO) Companies for Small Businesses
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Over the years, American companies have embraced Human Resources Outsourcing (HRO) as a way to save money and time by allowing a third party provider to fully or partially handled functions related to running a human resources department. If you’re considering outsourcing, we’ve put together basic information to help you decide if it’s the right choice for your company.

The Most Common Functions Outsourced


A recent study showed that the most areas outsourced in HR are:

  • 401K Programs
  • Health benefits management
  • Pension benefits

These areas are typically very complex and require a very specific level of knowledge. Including employee benefits and taxation law. Outsourcing these functions to a provider with a fully trained staff well versed in various aspects of the law is crucial for any company. It can also decrease the chances of your company getting into legal trouble which is more likely to happen if you handle your human resources department in house.

HRO vs In House Human Resources Department

The time and expense it takes to build and train an in house human resources department is not an option for many companies. Particularly, small businesses who lack the finances to employ a human resources staff. It should be noted that companies hire providers located onshore(Within the U.S) as well as offshore. (Outside of the U.S.)

There are other functions within HR that simply make outsourcing a smarter and more efficient choice. Recruiting, occupational safety reports, and other common workplace issues can all be handled by an HR outsource provider. That means a lot less time dealing with issues that are not essential to your main business focus.

BPO

Human resources outsourcing comes under Business Process Outsourcing. Although BPO spending is down in the U.S., it is still a highly sought after area for U.S. outsourcing buyers. Even though recent trends suggest providers are asking a higher price for their services, the costs are still lower than it would be if a company hired an in house staff.

Employee Perception

In U.S. companies, employee benefits can be more important to an employee than their own salaries. So the proper administration and management of medical benefits, retirement, vacations and other employee concerns can go a long way with current employees as well as for future hires. This may also help reduce employee turnover rates as well.

The Bottom Line

Companies have to take every advantage to remain competitive. Another benefit of outsourcing HR is the ability to show companies where and how to cut costs to save even more money. Since providers often have many different clients, they also tend to have strong relationships within the HR industry.

This often gives them the ability to negotiate for better group health plan benefits. With healthcare costs spiraling out of control in the U.S., this is a major advantage of HR outsourcing. This can lead to higher profits and a company that in the long term runs more efficiently.

Of Course There Are Some Legitimate Concerns

Probably the biggest concern among companies considering outsourcing is the private company and employee information. It’s a valid concern. Afterall, if your company’s most important financial information and employee data is compromised, your company could lose a substantial amount of money in legal fees and damage control.


Top 7 Human Resources Outsourcing (HRO) Companies for Small Businesses:


EMPLICITY

Emplicity provides HR solutions & PEO services that relieve the burden of workers comp, payroll admin, & employee benefits to small & medium sized businesses.

EMPLICITY

EMPLICITY

THEHACKETTGROUP

The Hackett Group: The business improvement leader for digital transformation, enterprise analytics and enterprise applications with unparalleled benchmarking and best practices implementation capabilities.

THEHACKETTGROUP

THEHACKETTGROUP

NGAHR

NGA helps organizations get the best out of their employees by delivering consistent, compliant and qualityHR services. Start improving your HR processes.

NGAHR

NGAHR

THEHRTEAM

With Thehrteam full HR outsourcing solution, The HR Team seamlessly becomes your HR department. You’ll receive ongoing support tailored to suit your business’ specific needs with dependable strategic and tactical services you can rely on.

THEHRTEAM

THEHRTEAM

INSPERITY

For more than 30 years, Insperity has provided human resources and business solutions that help America’s best companies prosper.

INSPERITY

INSPERITY

JUMPSTART-HR

Jumpstart provides HR outsourcing and consulting for U.S. Small Businesses and Startups. Services include: Employee Handbooks, Recruitment, and HR Setup.

JUMPSTART-HR

JUMPSTART-HR

INFOSYSBPM

Infosys BPM is a fully owned subsidiary of Infosys Limited. Infosys BPM provides end-to-end Business Process Outsourcing Services & Solutions for global enterprises.

INFOSYSBPM

INFOSYSBPM