Of the companies we reviewed, Paychex offers one of the easiest processes of transitioning to an HRO from a professional employer organization (PEO). Many businesses use a PEO service at first but transition to an HRO as they grow. Customers can discuss their payroll, HR and other related business or personnel questions with a Paychex expert. HR outsourcing, or HRO, involves hiring a third-party service to conduct human resources operations for your business rather than employing an in-house HR team.

While HRO companies offer a lot of hands-on services, including consulting from expert advisors, a solid tech platform is also important. Sign up for demos with several providers to find a platform that you find user-friendly and that offers the tools you need. Don’t forget to ask about mobile app offerings for employees and administrators. Besides giving you a thorough demonstration of their platforms, many HRO companies offer a free trial of their software, so take some for a spin to see what you like best. The WorkSight learning management system gives your company access to thousands of timely and cost-effective training courses in diverse subject areas.

For small and midsize businesses, base costs typically range from $8 to $50 per employee per month. Of the services we reviewed, Zenefits had the lowest per-employee price, with plans starting at $8 per employee per month. Many of the HRO providers we reviewed offer custom pricing at all levels, so the cost depends on your service selections and company size. ADP’s strategic HR advising is an excellent resource for businesses that need hands-on support from an experienced HR partner. According to ADP, this service is ideal for small businesses that don’t have their own HR team. ADP’s advisors can help businesses address employee retention, build recruiting strategies and more.

Insperity focuses on middle-market industries of all sizes, from five employees to 5,000. Great for companies that have a growth mindset and strive to improve their operations. ADP TotalSource has a five-employee minimum, which is common in the PEO industry but can be a problem for extremely small teams. With ADP, you can view over 300 valuable HR reports that provide insight into your employees and company.

  1. These include health insurance, dental and vision plans, life insurance and a retirement plan.
  2. You are assigned a strategic account manager, and ADP hosts quarterly business reviews with you.
  3. Businesses can customize their service package and select only the services they need across ADP’s HR, payroll and benefits administration outsourcing options.
  4. HRO companies typically provide a user-friendly payroll platform that can help you manage your salaries and wages.

Our ratings take into account factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and customer ratings. To qualify as a CPEO, a professional employer organization https://adprun.net/ must meet specific financial and reporting requirements established by the IRS. This certification can benefit you by offering tax benefits and financial protections, such as the CPEO’s paying your federal employment taxes on your behalf.

Best for Enrollment Support

For example, it offers quarter- and year-end coordination and administration, periodic reviews of pay-related action items, and payroll compliance validations. It can also perform an audit on each payroll run before submission and provide notifications about federal and state tax and regulatory changes. For instance, ADP can align your recruiting process with your company mission and values, and help you attract, hire and onboard the best candidates – ensuring new hires fit your company culture. If needed, you can add ADP’s full-service recruitment and resume search service, which is led by ADP-certified recruiters.

Consumer Products & Retail

ADP is a well-regarded, popular human resources (HR) service provider that offers a wide breadth of services in 50 states. Businesses of any size can partner with ADP as their human resources outsourcing (HRO) provider or ADP TotalSource as their professional employer organization (PEO) provider. Both outsourcing partnerships offer HR services like payroll processing, payroll tax administration, workplace safety training, and employee training and development.

Can I cancel my HRO provider relationship if I do not like their service?

If you want to take further advantage of the platform, you can easily add the ADP Marketplace for third-party integration options. Additionally, ADP TotalSource is a comprehensive PEO with bundled HR features. In addition to considering the industry experience of a PEO, it can also be helpful to review customer reviews and ask for references from businesses that have worked with the PEO. Customer reviews can provide insight into the experience of businesses that have used the PEO’s services and can help you get a sense of the PEO’s reputation. Asking for references from businesses that have worked with the PEO can also be a helpful way to learn more about the PEO’s services and capabilities.

Most HR outsourcing services are customizable based on the specific needs of the client. This also depends on the number of employees you have, services you require and additional add-ons. Rippling has the ability to support international payments so it is great for companies with contractors and employees from around the world. It’s also ideal for anyone looking for a one-stop solution that allows for HR, IT and finance to reside under one roof. Industries using Rippling include technology, professional services, financial services, retail, nonprofits, marketing and advertising, manufacturing, restaurants and healthcare. Plans start at $10 per month per employee, or $8 per month per employee (if paid annually), with a minimum of five employees.

Customers claim, although expensive, it has helped their business with cost savings. Workday is considered an Enterprise HRIS, meaning the platform works best for companies with over 2,000 employees with multiple locations. Workday also supports full-time, hourly, contingent gig and contract workers across the globe. The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey. If you want to further customize the platform, ADP offers the ADP Marketplace, a popular add-on that allows you to easily integrate the software with third-party applications.

The state of the workplace has changed significantly in recent years, and it will continue to evolve throughout 2024. It seems clear that HR outsourcing and PEO services will play crucial roles in how companies navigate that change. Most HR outsourcing specialists ensure a smooth implementation with an expert support team walking you through each step of the way. Here are a few key points to keep in mind when introducing a new system, as the transition stage is pivotal for success. Papaya is an ideal solution for a wide range of businesses, catering to the needs of start-ups, mid- market companies, and large enterprises. PeopleStreme is an ideal choice for businesses of all sizes, from small to medium to large enterprises, that are seeking comprehensive payroll capabilities and a complete end-to-end solution.

PEOs offer a wider range of HR and employment support, while payroll services are focused specifically on payroll processing. Whether a PEO is worth it for a business will depend on the specific needs and goals of the business as well as the services being offered by the PEO. PEOs can offer a range of benefits to businesses, such as access to expertise, cost savings, improved employee retention, risk management and simplified HR management. However, it is important for businesses to carefully consider the potential advantages and disadvantages of working with a PEO before making a decision.

Which type of service is best for a particular business will depend on its needs and goals. PEOs can be a good choice for businesses that want a comprehensive solution that includes a wide range of HR-related services, as well as support and resources to help them manage their employees. HRO companies typically provide a user-friendly payroll platform that adp hr outsourcing can help you manage your salaries and wages. This platform can often automatically calculate applicable local, state and federal payroll taxes and benefits deductions so that you’re always withholding the right amount from your employees’ paychecks. Some HRO companies also provide payroll specialists who can guide you in managing your business’s payroll.

Additionally, ADP’s dashboard is easy to use, and you can integrate the platform with hundreds of third-party applications. You can also add services for payroll, employee benefits administration, time tracking and performance management. BambooHR’s suite of talent acquisition tools, including a built-in applicant tracking system, are more expansive than those of many other HRO providers.

ADP TotalSource

Justworks also offers onboarding, HR consulting, PTO management, off-cycle payments, employee benefits and 24/7 support. Although the HRO providers we reviewed know all federal and state employment-related laws, not all HRO providers extend their expertise or services to international markets. When talking to an HRO provider, you should ask specific questions about your needs. Speaking of employee benefits, employees are changing their minds about which benefits mean the most.