HR outsourcing

Need relief from HR administration tasks? A strategic partnership to extend your HR team? There's more than one reason to outsource with us. See why.

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Outsource time-consuming, low-reward HR management tasks

Perhaps you're ready to focus more on strategy and less on mundane payroll and HR tasks. Or perhaps your company is going through a change like a merger, acquisition, divestiture or rapid growth, or is at risk. In cases like these, you need the expertise and support of an experienced HR partner. No matter your challenge, ADP® has the experience and solutions to help you reduce your burdens and risks.

Why consider HR outsourcing?

Business Benefits

How can HR outsourcing benefit my business?

Outsourcing HR can help save you time and money and can take the worry out of certain areas of compliance. You can choose to outsource some or all day-to-day administrative duties across HR, talent management, payroll, benefits, and more.

  • Take administrative HR tasks off your plate and free up time to focus on strategic business goals, like employee retention and development, or corporate culture.
  • Reduce time spent answering employee questions and dealing with issues.
  • Save money on hiring additional HR personnel.
  • Reduce onboarding and training costs.
  • Receive support for compliance with employment laws and regulations, workplace safety, payroll and tax, and more – potentially saving your business from compliance fees and penalties.
HRO Defined

What is HR outsourcing?

Human Resources outsourcing (HRO) is when you contract with an independent provider to handle some or all of your HR functions. You can contract for a variety of services, from basic and administrative HR to more strategic offerings.

Administrative HR Tasks

Strategic HR Services

  • Employee turnover
  • Data analytics and insights
  • Compliance tracking and reporting
  • Recruiting and staffing
Team Depth

Can I outsource HR if my company already has an HR person or department?

Yes. HR outsourcing is a great option for businesses with or without HR staff.

  • If you have an HR person or department, HR outsourcing is not a replacement, but rather a partnership and an extension of your in-house team.
  • If you don’t have internal HR, outsourcing serves as your go-to resource for HR, payroll, and benefits, working closely with you or another designated employee.

See how HR outsourcing can be perfect for your business

We offer a range of HR outsourcing so you get what's best for your business.

Your business is unique: Get what fits

Don’t settle for “one size fits all.” Our variety of HR outsourcing solutions helps you get exactly what you need including technology and hands-on guidance across:

  • Pay and Tax Administration — We will assume responsibility for the majority of your pay tasks and provide best practices and compliance assistance for payroll and tax
  • Talent — We help you find and hire excellent employees who fit your company culture, onboard them quickly, and then help them advance with professional development
  • Strategic HR — We help you analyze your compensation strategy, as well as your turnover and engagement metrics, compared to similar companies
  • Benefits Administration — Employee benefits administration is a good task to outsource, as it can be complex and time-consuming
  • Compliance — Our risk and compliance experts stay on top of the thousands of annual changes to employment regulations; as a result, we can help you avoid common benefits administration and HR management pitfalls

Learn how ADP’s HR BPO outsourcing solution can help your business manage HR, payroll, benefits, time and attendance and more.

Work with an experienced, scalable partner

Unlike with other human resource companies, with ADP you get:

  • A history of success — we're trusted by more companies than any other provider in the industry
  • Expertise from certified human capital management (HCM) professionals
  • Fully integrated technology across all aspects of HCM, plus easy integration with leading technology partners
  • Unmatched access to decision-quality data about your own business and the market so you can make better-informed business decisions
  • Flexible options for you to choose from
  • Deep experience in every major industry

Who we work with

Join the growing community of businesses leveraging ADP’s powerful technology, expertise and insight.

Willdan Group, Inc. 50-999 Employees Professional and Technical Services Anaheim, CA

Primetals Technologies 1,000+ Employees Manufacturing Alpharetta, GA

American Campus Communities 1,000+ Employees Real Estate Service Austin, TX

ADT Security 1,000+ Employees Professional and Technical Services Boca Raton, FL

Comerica 1,000+ Employees Financial Services Dallas, TX

How we work with others like you

Awards and recognition

Everest Group
PEAK Leader Multi-Process HRO

9 consecutive years

NelsonHall
NEAT Leader Multi-Process HRO

2018

NelsonHall
NEAT HR Cloud Outsourcing

2017

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HR outsourcing FAQs

What do you mean by HR outsourcing?

HR outsourcing means that a third-party provider handles some or all aspects of HR on behalf of your business. In its most basic form, you may be given a toll-free number to access an HR representative for assistance. Premium versions of HR outsourcing, on the other hand, are more of a partnership, in which a team of specialists get to know your business and help with both strategic HR planning and day-to-day administrative tasks. This arrangement is also known as full-service HR, managed services or co-employment.

Why is HR outsourcing important?

HR outsourcing is important because it offers you an alternative if you lack the expertise or resources to manage the complexities of HR and/or prefer not to hire in-house staff for that purpose. In such scenarios, outsourcing HR can help you:

  • Alleviate administrative burdens and save time
  • Focus on strategic or growth-related activities
  • Reduce operating expenses
  • Minimize liability and compliance risks

What HR services can be outsourced?

Available in all-in-one solutions or separately, HR outsourcing commonly supports the following areas:

  • Payroll and tax administration
  • Human resources
  • Compliance
  • Benefits administration
  • Talent management

How does HR outsourcing reduce costs?

Outsourcing HR offers efficiency savings, cost displacement and more services for less money compared to the expense of hiring full-time HR staff. HRO providers also tend to have the latest technology and software, which may be unaffordable if you’re operating your business on your own. As an added bonus, you’ll typically be paired with a professional who has vast experience dealing with common and complex HR issues and can help you more confidently navigate your challenges.

How much does it cost to outsource HR?

HR outsourcing providers that use per employee pricing structures can charge between 4% and 8% of each worker’s pretax monthly earnings. Others may charge a flat monthly fee. Ultimately, the price depends greatly on what your business needs. For instance, an entry level HR help desk may be cheaper than a professional employer organization (PEO), but it will not provide the same level of service or quality assurance that you’d expect with co-employment.

Resources and insights

guidebook

Driving HR strategy for a future-ready business

case study

Better Performance Management