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The Best HR Outsourcing Services of 2022

Skye Schooley
, Staff
| Updated
Jun 28, 2022

Human resource outsourcing services can simplify your human resource responsibilities. Learn about the best HROs available for your small business.
Best for Fast-Scaling Companies
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4 preset plans
Transparent pricing
HR compliance assistance
Best for International Businesses
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Service in 120+ countries
Customizable plans
7-day free trial
Best for Small Businesses
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Scalable HR outsourcing plans
No minimum requirements
Advanced help center
Best Benefits Administrator
Plans tailored to your industry
Premium service and support
Custom contract terms
Best Customer Support
TriNet HRO
Customized contracts
Industry-specific HR support
24/7 live chat support
Human resource outsourcing services can simplify your human resource responsibilities. Learn about the best HROs available for your small business.

With limited resources, budget, or know-how, it can be difficult for a small business to create and sustain a human resources department. As a solution, many businesses turn to experienced HR outsourcing services (also known as HROs) to help with responsibilities like recruiting, employee training and development, payroll and taxes, benefits administration, risk management and compliance, and general HR administrative tasks. To help you find the right HRO for your organization, we researched various agencies, looking at each one's specific services, cost structure, contract requirements, employee minimums and standout features.

Find the Right HRO Service for Your Business

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How We Decided
Our team spends weeks evaluating dozens of business solutions to identify the best options. To stay current, our research is regularly updated.

Compare Our Best Picks

HR outsourcing service Best for Employee minimum Pricing Contracts Service plans Payroll administration Employee training courses Integrations Mobile app Live chat Customer support
ADP Benefits administration 25 Rates customized per plan Month-to-month to multiyear Multiple In-house Virtual and onsite Yes (550+) iOS and Android No An HR business partner or relationship manager; designated account representatives for items like payroll, benefits and HR
Insperity Large businesses 5 Rates customized per plan Annual and multiyear Multiple In-house Virtual and onsite Yes iOS and Android Yes Phone, email, live chat, and a dedicated service team
TriNet Customer support 5 Rates customized per plan Varies based on customer needs Multiple In-house Virtual Yes iOS and Android Yes Phone, email, live chat, and a contact form
Paychex Small businesses 1 Rates customized per plan Month-to-month 3 In-house Virtual Yes (190+) iOS and Android Yes Phone, live chat, and a dedicated HR professional
Bambee Fast-scaling companies 1 Starting at $99 per month (plus setup fee) Month-to-month or annual 4 None Virtual No None Yes Phone, email and live chat
Zenefits Startups 5 Starting at $8 per employee per month Month-to-month and annual 3 plans with add-ons In-house Virtual Yes (40+) iOS and Android No Contact form
BambooHR International businesses 1 Rates customized per plan Month-to-month 2 plans with add-ons In-house None Yes (50+) iOS and Android No Phone and email
G&A Partners Employee development 10 Rates customized per plan Month-to-month Multiple In-house Virtual Yes None No Phone, contact form, a client advocate and an HR advisor

Our Reviews

Bambee: Best HROService for Fast-Scaling Companies

Bambee can help you craft internal HR policies and maintain legal compliance.
Bambee offers more than 650 training courses with 24/7 online access.
Bambee does not provide payroll or benefits administration.
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Bambee is an HR compliance solution that gives businesses access to outsourced HR experts. Operating a growing business can be tough, but with Bambee, you have access to a plethora of resources to help you stay compliant with HR laws and regulations. Bambee is ideal for fast-scaling companies that want assistance with HR policy creation, employee conflict resolution, federal and state compliance, and employee terminations.

Editor's score: 8.6/10

This is a transparently priced HRO solution, offering four distinct HR compliance plans with fixed monthly rates. Instead of being surprised with hidden fees, you can easily see exactly how much you will need to budget for Bambee as your business grows.

Managing effective business policies and keeping track of employment documents can be especially difficult for fast-scaling organizations, but Bambee can help you manage this and more. For instance, it can help you create custom HR and document retention policies while maintaining compliant staff folders.

Another important part of growing your business is ensuring your employees are growing with you. Bambee offers employee training solutions with more than 650 courses to choose from, including leadership and management training, which allow 24/7 online access. These courses can help you not only grow your employees' skills, but also maintain legal compliance with federal and state laws (e.g., workplace safety, OSHA and harassment training).


BambooHR Human Resource Outsourcing: Best HRO Service for International Businesses

You can run customized reports with BambooHR.
The Audit Trail security tool allows you to track who made each change in your software.
BambooHR does not list its pricing online, and some users say it can be expensive.
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As your business grows, BambooHR can support you every step of the way. Although the majority of BambooHR's customer base is small and midsize businesses, it is also ideal for those who need an HR and information management solution for their international organization. BambooHR currently serves customers in more than 120 countries, proving that it can support your business wherever it is located and no matter how widespread your workforce is.

Editor's score: 9/10

You can choose BambooHR's Essentials or Advantage plan, and then customize it with add-ons like payroll, time tracking, and performance management features to fit your specific needs. Since many businesses don't want to be locked into long-term agreements, BambooHR offers flexibility with month-to-month plans and a seven-day free trial. Pricing is based on which services you need and how many employees you have.

September 2021: Managing your employees' performance can be a big feat, especially for international businesses. BambooHR recently released new performance management tools to help with this. The new tools allow users to access performance management courses, create sentiment and employee satisfaction surveys, and conduct impromptu assessments.

BambooHR is a great information management solution that allows you to store and manage employee records and documents, regardless of where your business is located. It has employee self-service features and a mobile app, giving your team the flexibility to manage their benefits and employment details from any location.

To help you maintain legal compliance, BambooHR has features like audit trails, workflows and approvals, and reporting. It integrates with several third-party applications, including learning management systems, and can track employee training.

August 2021: If your international business is embracing remote and hybrid work, BambooHR can help you manage this through the recent addition of four strategic marketplace partners (now totaling more than 80 partners). With access to integrations like Hireflix, Spark Hire, Leapsome and Pyn, your international business can conduct video interviews, manage employee engagement and automate key communications.


Paychex HRO: Best HRO Service for Small Businesses

Paychex proactively monitors employment laws and regulations to help you stay compliant.
It offers tailored, contextual learning opportunities in its Help Center.
Paychex does not list its HR outsourcing prices online.
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If you need to outsource an HR function, Paychex can likely handle it. It provides comprehensive services to small businesses, including a variety of essential HR functions like recruiting and onboarding, time and attendance tracking, and employee training. If employee benefits administration is a top priority, Paychex can help you seamlessly facilitate it.

Paychex can act as your payroll provider and payroll tax administrator, which is ideal for small businesses that want to manage all employee salaries and payment details from one platform. With its compensation summary report, employees can view their total compensation from one location, which is ideal for employee retention. If your small business currently uses other software platforms, Paychex can likely connect with them seamlessly, as it offers nearly 200 third-party application integrations.

Editor's score: 9/10

When you partner with Paychex, you and your team gain access to an easy-to-use dashboard and intuitive mobile app. Self-service features allow your employees to manage some HR functions on their own, giving them control over their important payment, benefits and employment details. Paychex's new COVID-19 tracking tool allows employees to upload digital copies of their COVID-19 vaccination cards and ongoing negative COVID-19 test results directly to the Paychex platform. If needed, employers can place bulk or small batch orders of rapid COVID-19 test kits through HireRight, which employees can then self-administer and upload results. Employers can then track employee compliance via Paychex Flex Live Reports.

The size of Paychex as a company and the quality of its services means it can meet all your HR needs with one platform. It's easy to scale between its HRO and PEO services, giving you the flexibility to start out with a Paychex PEO partnership if you want and then transition to the HRO model when your company grows and you need more administrative control of your team. The HRO model, Paychex Flex, has customizable plans to support any size of business, so it can scale up as you grow. With its flexibility and quality of services, Paychex earns our pick as the best HRO for small businesses.

Read Paychex HRO Review

ADP: HRO service With the Best Benefits Administrator

ADP is a national company that has major bargaining power with healthcare companies.
It has intuitive and simple dashboards, where you can view and modify your benefits.
ADP does not list its HRO pricing online, so you must contact a representative for a quote.

As a major HR service provider in the U.S., ADP provides excellent benefits options. As an ADP client, you'll be tapping into a national company with significant bargaining power with healthcare companies. With ADP, you can offer affordable benefits like medical insurance, workers' compensation, retirement savings plans, student loan repayment programs, flexible working arrangements, family leave, and professional development opportunities to your employees. Because of the size and power behind ADP's offerings, it is our pick for the best benefits administrator.

Editor's score: 9.4/10

Comprehensive benefit plans, with seamless enrollment and administration opportunities, can be a great way to attract and retain top talent. ADP's API-driven technology automatically syncs data between its platform and benefit carriers, increasing administration speed and accuracy. It features the ability to configure benefits plans in real-time, giving employees instant visibility to any updates or changes. Since ADP can also provide payroll and tax administration, you can easily manage employee payroll and benefits on the same platform. If you want to integrate with other third-party business applications to create a more customized HR solution, ADP can integrate with hundreds of applications.

Administering payroll and benefits can be a major undertaking, especially in a way that legally complies with employment rules and regulations. ADP's risk and compliance experts can guide you through the federal, state, and local guidelines to help you avoid benefits administration or HR management mistakes. This level of HR support is key to successful administration of employee benefits.

Additionally, if you need to manage freelancers, contractors or consultants, ADP offers ADP WorkMarket. The online platform features analytics dashboards, AI functions, assignment lifecycles, geographic heat maps for pay rates, and operational metrics. These tools can help you stay compliant while managing and paying your extended workforce.

Read ADP Review

TriNet HRO: HR Outsourcing Service With the Best Customer Support

You can contact TriNet customer support by phone, email, live chat or online contact form.
TriNet is an industry-specialized HR service.
In order to use TriNet's services, you must have at least five employees.

TriNet is a full-service HR solution for small and midsize businesses. It specializes in several industries, such as architecture, engineering, consulting, education, e-commerce, financial services, life sciences, manufacturing, marketing and advertising, nonprofits, retail and wholesale, and technology. What separates TriNet from some of its competitors is its customer support. Its team of skilled HR experts can facilitate compliant and efficient HR processes for your business.

Editor's score: 9.2/10

Unlike many of its competitors, TriNet makes its customer support available 24/7. The ability to reach an HR expert at any time of day can be a game-changer, especially for businesses with nonstandard hours. With various ways for you to reach its support agents (by phone, mobile text, instant message, email or contact form), TriNet has mastered the practice of being truly available to its customers. To further expand its HR support, TriNet offers an online knowledge center that allows businesses to seek online support on their own. This library of expertise aids in the flexibility and brevity of support options.

Businesses partner with TriNet for many HR services, such as payroll processing and tax administration, expense management, time and attendance tracking, employee benefits administration, risk management, workforce analytics, and compensation management. The TriNet mobile app lets your employees view their pay details, monitor their expenses and approvals, view their benefits, and manage and submit time-off requests. Your managers and administrators can use the app to view a plethora of HR information, including workforce data.

Read TriNet HRO Review

Insperity HRO: Best HRO Service for Large Businesses

Businesses with up to 5,000 employees can partner with Insperity.
Employees can access a 24/7 self-service portal.
Insperity requires a five-employee minimum, so it's not a solution for very small or new businesses.

Whether you have five employees or 5,000, Insperity has HR outsourcing solutions to fit your needs. It can support virtually any large organization's HR needs. For example, Insperity can help you process payroll, administer payroll tax filings, and track employee time and attendance. Routine administrative HR tasks can be daunting for a large company, so Insperitycan save you time by managing them for you, with features like paperless onboarding, more than 50 built-in reports, and the ability to build your own custom reports.

Editor's score: 9.3/10

If you need help offering affordable employee benefits to your large team, Insperity gives you access to competitive benefits like medical insurance, dental and vision insurance, flexible spending accounts, health savings accounts, term life and personal accident insurance, disability insurance, employee assistance programs, and 401(k) retirement plans. Insperity has long-term relationships with nationally recognized carriers for these services.

Another great way Insperity streamlines your HR processes is by offering employee self-service. Your employees can manage their own HR information, such as by recording the hours they work, viewing their pay stubs, requesting time off, and modifying their 401(k) plan contributions within the platform. They can also access more than 5,000 self-paced training courses, more than 30,000 online books, and liability management training courses.

Insperity can help your company stay legally compliant with things like risk management, HR-related government reporting, and audits. It can also help you create employee handbooks, write accurate job descriptions, and develop employee recognition programs.

Read Insperity HRO Review

Zenefits: Best HRO for Startups

Zenefits has a training portal with multiple resources to educate administrators, managers and employees on its platform.
You can partner with one of Zenefits' benefits brokers or use your own.
Zenefits' customer support can be slow to respond.

Zenefits, acquired by TriNet, can support a variety of businesses, but its HR features and transparency make it ideal for startups. It offers transparent pricing online and multiple plan options. Each plan includes core HR services like hiring and onboarding, document management, employee scheduling, and time tracking. You can set compliance alerts and triggers, view various reports, and integrate the software with a variety of third-party applications.

Editor's score: 9/10

Another great feature of Zenefits is its mobile app for iOS and Android devices. Your team can perform key HR tasks from their mobile devices; for example, they can clock in and out, request time off, view their pay stubs, and manage their benefits. Giving your employees this type of control can ease the burden of you or your HR staff manually managing these things for them.

Some plans include compensation management features, which can be especially helpful for startups that need guidance on how much to pay each new hire. Zenefits also offers performance management tools, which are a great way to ensure your team members are growing successfully in their roles. If you want to build a company culture that focuses on employee well-being, you can access employee engagement surveys and prebuilt wellness assessments.

Whichever plan you choose, you can add on features like payroll processing, benefits administration and advisory services at an extra cost. In other words, you can start small when you're a new business and then add on services as your organizational HR needs grow.

Read Zenefits Review

G&A Partners: Best HRO Service for Employee Development

G&A Partners offers online employee training, as well as performance-boosting guidance.
G&A specializes in skilled trades, healthcare, manufacturing and professional services.
It does not have a mobile app for on-the-go HR management.

Whether you are looking for a traditional HR outsourcing model or a PEO co-employment partnership, G&A Partners can support your business's needs. This company can help you develop policies and procedures to keep your employees on track and your business legally compliant. It offers comprehensive HR services, employee recruiting and onboarding, modern payroll technology, competitive employee benefits, workplace safety measures, and risk and compliance management, but its impressive training programs and technology are what make it our choice as the best HR outsourcing company for employee development.

Editor's score: 8.9/10

With up-to-date employee handbooks and access to online training programs and performance management capabilities, your employees can develop and grow within your organization. Team members can use G&A's learning management system to develop new skills, broaden their expertise, and stay up to date on legally required training programs. The platform lets you assign courses and track your employees' success with progress reports. Courses from G&A Partners are interactive and feature engaging content like videos, quizzes, and real-world scenarios.

In addition to the development courses, you and your team can access G&A's online performance management tool. With this feature, you can create personalized employee goals and development plans, monitor your employees' progress, configure custom performance review workflows, and conduct 360-degree reviews. With ongoing performance records, you can easily track an employee's performance, development and overall success.

Read G&A Partners Review

Pricing and Terms

Since the services in an HR outsourcing plan can vary widely, so does the cost. The total cost of your HRO will depend largely on how many employees you have, what specific HR services you need, and how long of a contract you are willing to sign. HRO plans really run the gamut, costing anywhere from $50 to $1,500 per employee per month.

HR outsourcing services typically follow one of two pricing models:

  • A fixed monthly per-employee fee
  • A percentage of each employee's monthly pretax salary

HROs sometimes have employee or payroll minimums you must meet before you can access their services. Since HR outsourcing is better for midsize and large companies anyway, this is typically not an issue. If you are a very small business seeking HR assistance, a professional employer organization (PEO) service may be a better fit for you.

HRO pricing can be flexible, depending on your provider. Although you'll likely have to sign a contract, some agencies offer flexibility in the contract's length. Some HROs offer a la carte options (best for those who only need a few select services) or preset bundles (best for those who want a more comprehensive set of services). Many HRO companies charge extra for services like employee benefits, recruiting and staffing, and performance management. Some providers also charge a one-time setup fee.

Bottom LineBottom Line: HRO plans cost between $50 and $1,500 per employee per month, depending mainly on the size of your business and the services you need.

Buying Guide

What Do HR Departments Do?

Over the years, the role of human resources professionals has evolved from recordkeepers to an essential component of a business's executive team. Besides coordinating employee activities, HR departments provide conflict resolution and training, help manage budgets, and ensure companies comply with employment laws and regulations. If you don't have an internal team to handle these responsibilities, you can partner with an HR outsourcing company to meet your needs.

Benefits of HR Outsourcing

There are several benefits to partnering with an HRO company for both employers and employees, depending on the services your business needs.

1. It saves time and money.

Hiring an HRO service to take care of your HR processes can save your business time and money. Instead of wasting hours performing administrative tasks manually, you can streamline your efforts by outsourcing certain tasks. You can then spend your valuable time performing revenue-generating functions to improve your business.

Did you know?Did you know? Hiring an internal HR staff can cost 24% to 32% more than outsourcing your HR functions.

2. It helps you maintain legal compliance.

Your HRO is responsible for maintaining the security and privacy of your employee data, including compensation and personal matters. It must also ensure your company's compliance with federal regulations surrounding healthcare, 401(k) plans, workers' compensation, payroll processing and taxation, and the Consolidated Omnibus Budget Reconciliation Act (COBRA).

3. It streamlines the process of hiring and onboarding employees.

Effectively recruiting and onboarding employees can make a big difference in the success of your business. An HRO can streamline your recruiting, hiring and onboarding processes to ensure you hire the best members for your team. HROs help you not only acquire the right employees, but also onboard them in a way that adheres to labor and employment laws. For example, your HRO can help you distribute the necessary new-hire documents, obtain the required signatures, and file the documents securely.

If your company hires immigrants, you can benefit from an HR outsourcing service that is well versed in foreign worker laws and has experience with the process. Immigration compliance at both the state and federal level is a complicated process that your own HR staff may not have expertise in. HROs help protect your company and immigrant workers from unintended violations of immigration law, which can be extremely costly.

4. It provides expert HR insight and support.

Managing every human resources task for your team is a big feat, even in a small business. Without an entire department to manage and track your HR needs, there is a good chance you will need to hire a service like an HRO to help you. An HRO is an expert service that can offer your company a large breadth of HR knowledge and support. Even if you have an internal HR manager, they can benefit from the helping hand. An HRO can help you meet all your company's human resources needs, even if you're on a tight budget.

Which HR Functions Can Be Outsourced?

Just about any human resources function can be outsourced. You can outsource a couple of HR functions at a time, or all your HR needs together.

Here are some commonly outsourced HR functions: 

  • Applicant tracking
  • Background check services
  • COBRA insurance
  • Compensation plan development
  • Employee benefits administration
  • Employee discipline
  • Employee handbook creation
  • Employee recruitment
  • Employee termination assistance
  • Employee training and development
  • HR administrative tasks
  • HR audits and consulting
  • HR policy development and implementation
  • New-hire reporting
  • Payroll
  • Retirement services
  • Risk management and regulatory compliance
  • Tax administration and compliance
  • Time and attendance
  • Unemployment insurance and claims administration
  • Workers' compensation
  • Workplace safety training

Although these are the most commonly outsourced HR services, it's not a complete list of HR functions that can be outsourced. Speak with an HRO representative if you have questions about outsourcing additional HR functions.

Which One Is Right for Me: Full-Service or Partial HR Outsourcing?

When selecting an HR outsourcing provider, assess the HR services you need assistance with – you may need to outsource all of them or just a few. Many HROs allow you to choose either a full-service package or just the specific services your business currently needs.

TipTip: However few or many HR services you need to outsource, the HRO you choose should have expertise in employment compliance to insulate your company from penalties or lawsuits.

Full-Service HR Outsourcing

A full-service HRO is a good option if you own a small company and cannot yet afford to hire HR personnel. It provides the resources that an in-house HR staff can offer without the expenses of hiring your own team. A full-service HRO is also advantageous if you have workers in different parts of the U.S. or world. HROs are knowledgeable about global, federal, and state employment laws, so they will ensure your company complies with the varying rules for anywhere you have employees.

When companies skimp on HR, they put the business and their employees at risk. A full-service HRO helps you appropriately manage day-to-day HR tasks like reporting misconduct and ensuring workplace safety compliance. These services also work closely with your payroll team to handle compensation. In addition to day-to-day tasks, you can enroll in services like recruiting and employee training.

Partial HR Outsourcing

Partial outsourcing is recommended for companies that have an in-house HR staff but need extra help. For example, perhaps you have an HR representative who handles your recruiting strategy and ensures the correct filing of your employment paperwork, but you need help with employee development. If you do not have the resources or desire to hire a full-time training specialist, you can outsource this service to an HR company, many of which offer employee training and development programs.

The most common skill development training that HROs provide is software and processes training, though other options are available. The best HR outsourcing services will work with you one on one to determine the best training programs for your employees.

Other common partial outsourcing services are payroll processing, employee screenings and background checks, employee recruitment, and immigration compliance.

Human Resource Outsourcing vs. Professional Employer Organizations

During your research on HR outsourcing, you may also see references to professional employer organizations, or PEOs. While many of the companies we reviewed offer both HR outsourcing and PEO services, they are not the same thing.

The main difference between an HRO and a PEO service is the legal employment arrangement they operate under. When you outsource your HR functions, you are still the employer of record for your staff members, and you retain full control of your business operations and data. With a PEO, the company you hire acts as a co-employer and is responsible for all your business's HR tasks, including hiring and firing, employee training, and tax and compliance obligations.

Which Option Is Best for My Business?

Whether you should use an HRO or a PEO depends on your business's needs. If you need help with a few basic administrative tasks, like payroll and benefits management, an HRO might be your best option. If you'd rather have an expert company shoulder the full legal and financial responsibilities of employing your staff members, hire a PEO.

If you are interested in learning more about PEOs and the companies we recommend, check out our selection of the best PEO service providers of 2021.

TipTip: If you need to partner with a PEO right now but think you'll want to switch to HR outsourcing later, or vice versa, consider a company that offers both.

HR Outsourcing FAQs


Yes, outsourcing your HR functions is one of the best ways to maintain legal compliance while saving money. Instead of paying salaries for an in-house HR department, you can limit your team to one HR manager and outsource any functions they need assistance with. Many HRO companies can bundle your HR functions to save you even more money. Additionally, outsourcing functions like risk and compliance management can help your company stay atop current regulations, potentially saving you thousands in legal fees.


Unless you have an entire in-house HR department, you will likely need to outsource at least some of your HR responsibilities as soon as you start your business. A company's HR is more than one professional can manage alone, and having no HR expertise at all puts you at an even greater risk of legal ramifications. The specific functions you outsource – and when – will completely depend on your needs. For example, if you are hiring your first employees, you may want to outsource your employee benefits administration. You should outsource HR functions as soon as you need them, especially if you don't have an in-house person to do the job.


Although HR outsourcing has many advantages, it can have a few drawbacks as well. For example, an external company managing your human resources can cause a disconnect with your staff. An external organization will not be an expert on your company culture, and it likely won't focus on team building and personal development as much as an in-house HR expert could.

Outsourced HR is also less flexible than in-house HR staff. An external HR company or software provider is less likely to make special arrangements when a loyal employee has a unique request, for instance. It may also take longer than an in-house HR department would to settle employee disputes or hire new recruits.

Outsourcing any business process always comes with a security risk. Most HRO companies use web-based PEO software, leaving your business's and employees' information potentially vulnerable to security threats. Always check an HRO's security measures before hiring it, especially if your business is in a highly regulated industry.


HR outsourcing services can meet all your human resources needs. Whether you want to recruit and train new employees, administer employee benefits, track time and attendance, process payroll and tax filings, or do all of the above with one platform, an HR outsourcing company can help. An HRO can ensure you meet legal requirements as well. As federal, state, local and industry regulations are constantly changing, it can be hard to stay up to date, so find an HRO company that is experienced in your region and industry to maintain legal compliance.

You could also outsource tedious administrative HR tasks, giving your in-house representatives more time to focus on recruiting the right employees and fostering team growth and development.  

Methodology strives to research and review companies fairly and objectively. For our review of HR outsourcing services, we began with 20 companies. We found these companies based on extensive HRO research, key industry players and recommendations from other review sites.

After analyzing each company, we pared our list down to the top 11 services. From this list, we researched various aspects of the services each company offers, including administrative HR tasks, benefits administration, employee recruiting, payroll management, employee training and development, risk and compliance, HR technology, and additional services. We also established the type of accreditations and customer reviews each company had.

From these 11 companies, we chose the three that stood out as the best for small businesses, benefits administration, and employee development. We then reviewed their pricing structures, contract requirements, employee minimums, mobile access and standout features. 

We looked even further into these three best picks, evaluating the customer support and features that each plan offers. We contacted support representatives by phone, online chat and email, posing as small business owners. We inquired about each HRO's plan structure, pricing and contract requirements. The three companies withstood each round of our testing and stood out in all of our interactions with them.

What to Expect in 2022

As workplace trends change throughout 2022, we expect the demand for human resources outsourcing to keep growing. There are several factors to consider, such as the hybrid work environment, younger generations taking over the workforce, the increase in AI and automation, employee health and development, and the increasingly complicated need to comply with state and federal regulations. In-house HR staff may have difficulty staying up to date with changing trends and regulations, and HR missteps can have expensive consequences for small businesses. As a result, many organizations rely on HROs to closely monitor shifting employment laws and workplace trends.

The popularity of the hybrid workplace is a trend that is significantly affecting the HRO industry. With many businesses shifting to remote and flexible work arrangements, the need for cloud-based payroll and time-tracking tools has risen. Employees and employers need the ability to access their HR information from any location. We expect HRO companies to increase their offerings of flexible, cloud-based solutions and self-service features.

As younger generations take over the workforce, HROs must evolve to meet their needs. For example, younger generations place a high importance on collaboration and recognition. HROs must manage HR to make employees feel seen and appreciated. Additionally, younger generations place great importance on health and wellness, and professional development. We anticipate HROs will tailor their benefits packages to satisfy these needs as well.

Artificial intelligence in human resources technology is also influencing the growth of HROs. For example, AI can scan hundreds of resumes to find candidates who have the required experience for a role, saving hiring managers hours of sifting through resumes.

We also expect to see HROs helping with important business diversity and inclusion initiatives throughout 2022 by offering recruiting assistance, risk management and compliance measures, and employee training and development. Small businesses can lean on outsourced services like applicant tracking, HR policy development, audits, and consultation to create diverse and inclusive workplaces. We believe there will be an increased demand for data analytics to track and improve employee productivity.

Skye Schooley Staff
Skye Schooley is a staff writer at and Business News Daily, where she has written more than 200 articles on B2B-focused topics including human resources operations, management leadership, and business technology. In addition to researching and analyzing products that help business owners launch and grow their business, Skye writes on topics aimed at building better professional culture, like protecting employee privacy, managing human capital, improving communication, and fostering workplace diversity and culture.

Other Services Considered

Paychex provides businesses with comprehensive PEO features, including risk management, payroll, employee benefits, HR administration, and numerous onsite and virtual training solutions. This nationwide company represents thousands of employees and businesses of all sizes, so you'll be joining a provider that is equipped to handle your organization. It also assigns you an HR generalist who remains your point person as your business grows and a mobile application so you can access your services on the go. Plans are scalable as your company grows. Paychex is certified by the IRS and accredited by the Employer Services Assurance Corporation (ESAC) and the Better Business Bureau, with an A+ BBB rating. For these reasons, Paychex earns our pick for best PEO service for midsize businesses.
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