HR Outsourcing

We regularly survey BuyerZone users to ask about their purchasing experience and find out how much they paid for their purchase. Here's a collection of quotes from HRO buyers that can give you an idea of how much you'd pay to outsource some human resources functions.

The ongoing monthly cost per employee is the usually the most significant cost to be aware of as you're shopping for an HRO. Each function you outsource will add a little bit more to your total costs.

We've listed out the specific functions each buyer was interested in to help you put these quotes in context. A company that wants to outsource basic payroll and benefits administration will pay much less per employee than one that wants a total outsourcing package.

• Fewer Than 20 Employees
• More Than 20 Employees

HRO pricing for companies with fewer than 20 employees

• "$3,200 for basic HR services; employee handbook, hiring, supervisor manuals, standard employment applications, employee file holders and other assorted manuals. This is a small 501-c-3 that manages research and education grant funding and hires part-time employees to provide services to projects funded through this organization." [Risk management, regulatory compliance, payroll, HR technology, HR management]

  - Non-profit, Philadelphia, Pennsylvania

• "My company will pay about $70 per month per employee for full HR services. The services includes managing all benefits, however we are responsible for paying the premiums for all employees." [Risk Management, Regulatory Compliance, Recruiting, HR Management]

  - Consulting, Glen Dale, Maryland

• "Monthly service charge per employee - approx $100." [Payroll, benefits administration]

  - IT education, Golden, Colorado

• "$80 per employee, Insurance with Aetna, $1000 set up fee." [Payroll, benefits administration]

  - Health Care, Houston, Texas

• "Approx $200/month." [Risk management, payroll, HR technology]

  - Financial Services, Middletown, New York

• "$175 per month for paycheck and cafeteria plan management." [Payroll, benefits administration]

  - Consulting, San Jose, California

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HRO pricing for companies with more than 20 employees

• "Payroll, HR info system, HR support, biometric time and attendance: $73,000, plus $6000 implementation." [Total HR outsourcing]

  - Health Care Services, St. Louis, Missouri

• "The ASO costs ~ $600/employee per year." [Regulatory compliance, HR technology, HR management]

  - Manufacturer, Starbuck, Minnesota

• "Full service payroll and hr services without benefit admin. $22,000." [Risk management, regulatory compliance]

  - Non-profit, Flagstaff, Arizona

• "$60/month flat rate per employee plus insurance benefit fees. Comparable package to ADP's Total Outsourcing Program." [Total HR outsourcing]

  - Design agency, Tempe, Arizona

• "Full service PEO - $950/staff. We have 21.5 FTEs. Half time staff does not receive benefits. Staff is currently enjoying very rich health plan." [Total HR outsourcing]

  - Non-profit, Grand Rapids, Michigan

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Want more information on choosing an HRO? Read our Human Resources Outsourcing Buyer's Guide.

Information was provided by BuyerZone users. Quotes have been edited for clarity only.