Interested in streamlining your organization’s HR responsibilities? Did you know outsourcing HR services can drastically improve your company’s compliance with employment laws and enhance employee engagement?
Navigating the complexities of labor law, shaping an effective organizational culture, and managing employee engagement are critical, yet they can often be intricate and time-consuming tasks. This challenge can be particularly daunting for small and medium businesses that may lack the resources for an in-house HR team.
This is where HR services companies step in. They handle these demanding tasks, ensuring your employees are effectively managed and your business adheres to relevant employment laws. However, the HR outsourcing market is crowded – so which services should you consider the best ones?
What Do HR Services Companies Do?
HR services companies perform various functions as outsourced HR departments for businesses. They offer a broad spectrum of services catering to human resources, from administrative tasks to strategic initiatives.
HR services companies take on numerous administrative duties. These duties are necessary but can be time-consuming, taking away from a business’s core operations.
- Payroll Administration: One of the most common services is managing payroll. This involves ensuring that employees are paid accurately and on time and handling tax filings, deductions, year-end forms, and other related tasks.
- Benefits Administration: HR services companies can also manage employee benefits. This includes everything from setting up benefits plans (health insurance, retirement plans, etc.), liaising with providers, and handling employee inquiries related to benefits.
- Record Keeping: These companies are often responsible for maintaining employee records, including personal details, job descriptions, performance appraisals, and other relevant information. Proper record-keeping is essential for both operational efficiency and legal compliance.
Beyond administrative tasks, HR outsourcing companies also play a strategic role in businesses. These services help align HR policies and practices with the company’s business objectives.
- Talent Acquisition: HR services companies often manage the recruitment process, which involves advertising job openings, screening candidates, conducting interviews, and facilitating the onboarding process.
- Performance Management: They can also set up and manage performance management systems. This includes defining performance metrics, conducting performance appraisals, and designing performance improvement plans.
- Employee Engagement: HR services companies can design and implement employee engagement initiatives to foster a positive work environment and improve employee retention rates.
- Workforce Planning: Some HR services companies help businesses plan their workforce. This involves forecasting future HR needs, planning for them, and ensuring the company can attract, retain, and develop the talent it needs to achieve its business objectives.
Compliance and Risk Management
Compliance and risk management are critical functions performed by an HR outsourcing company. They help businesses navigate the complex employment and labour laws landscape and mitigate potential risks.
- Legal Compliance: HR services companies can help ensure a business complies with all relevant laws and regulations. This involves understanding and applying these laws, monitoring changes, and implementing necessary adjustments.
- Risk Management: HR services companies often manage risk, from workplace safety issues to employee disputes and investigations.
Given their range of services, HR outsourcing companies can provide immense value to businesses. Whether a company needs assistance with administrative tasks, strategic HR initiatives, or compliance issues, these companies have the expertise and resources to help.
However, as the services and specializations vary from one company to another, businesses should carefully consider their specific needs and choose a provider accordingly.
26 Best HR Services Companies
Below is a carefully selected list of some of the best HR services companies in the market today:
Bambee stands out as one of the best HR outsourcing companies. Known for its unique and innovative approach, Bambee offers tailored HR outsourcing services for small and medium businesses across various industries.
One factor that sets Bambee apart is its emphasis on creating bespoke HR policies. They understand that each business is unique and thus requires unique policies. Their team of experts is dedicated to crafting policies that align with your business culture and goals, ensuring legal compliance while fostering a positive work environment.
The full-service HR offered by Bambee also includes performance management, onboarding and terminations, and training for managers. Furthermore, their innovative and user-friendly software platform allows businesses to manage their HR operations conveniently and efficiently.
Insperity is another leading HR services company. This company is renowned for offering a comprehensive suite of HR solutions, including workforce optimization and administration.
One thing that sets Insperity apart is its full-service HR solution. It covers everything from HR administration and employee benefits to risk management and compliance, giving businesses peace of mind and more time to focus on growth.
Insperity’s exceptional customer service is another critical differentiator. Their team of HR professionals is known for being responsive, knowledgeable, and dedicated to providing the best solutions for their clients. In addition, the company’s use of advanced HR technology further enhances its service delivery.
Also, Insperity’s flexible HR solutions are designed to adapt to the changing needs of businesses. Whether a company is in growth mode, maintaining a steady state, or facing a business downturn, Insperity can adjust its services to meet its specific needs.
TriNet is another top HR services company worth considering. The company stands out for its industry-specific HR outsourcing solutions. Whether in technology, financial services, non-profit, or any other industry, TriNet has specialized services to cater to your specific HR needs.
TriNet’s approach to HR services involves aligning HR practices with business objectives. They take time to understand a company’s vision, goals, and challenges and then design an HR strategy supporting them.
In addition, TriNet offers a robust technology platform. This platform simplifies HR processes and provides valuable insights that can help drive business growth. Their platform covers all bases, from payroll and benefits administration to talent management and compliance.
One of the biggest strengths of TriNet is its extensive experience. They have been in the business for several decades, serving thousands of companies across various industries. This experience allows them to provide expert advice and practical solutions, regardless of the HR challenge.
ADP is a globally recognized leader in HR outsourcing services. With a history spanning over six decades, ADP offers comprehensive and flexible solutions for businesses of all sizes. Their services extend from payroll processing and benefits to HR management and compliance.
What sets ADP apart is its industry-leading technology. They offer advanced tools and platforms that streamline HR processes, making it easier for businesses to manage their workforce. Furthermore, ADP provides insightful analytics that can help businesses make data-driven decisions.
In addition to its top-tier technology, ADP is known for its world-class customer support. Their experts readily assist businesses, ensuring smooth and efficient HR operations.
Paychex is another renowned player in the HR outsourcing industry. They are known for their breadth of services, from payroll and benefits administration to hiring services and HR consulting.
Paychex is focused on small to midsize businesses looking to outsource HR. And this is what differentiates it. They understand these businesses’ unique challenges and tailor their solutions accordingly. This makes them an excellent choice for smaller companies looking for a comprehensive HR solution.
Paychex also excels in providing easy-to-use tools and platforms. Their intuitive interface and dedicated support ensure businesses can manage their HR functions effectively and efficiently.
Justworks is a rising star in the HR services industry. They have gained significant traction for their user-friendly platform and transparent pricing.
Justworks’ platform simplifies many complex HR processes, making it a good fit for businesses with limited HR experience or resources. They also offer access to benefits usually only available to large corporations, helping smaller businesses attract and retain talent.
Customer support is another area where Justworks shines. They offer 24/7 support through various channels, ensuring businesses can get help whenever needed.
Zenefits is an all-in-one HR platform designed for small to midsize businesses. They offer various services, including payroll, benefits, time tracking, and performance management.
The standout feature of Zenefits is its integrated platform. All HR functions are managed in one place, allowing seamless coordination and increased efficiency. They also offer a mobile app to manage HR tasks on the go.
Zenefits is also known for its extensive library of educational resources. This ensures businesses can stay up-to-date on HR best practices and regulations.
Gusto is an innovative HR services company that combines payroll, benefits, and HR into one seamless platform. They are prevalent among small businesses due to their simple pricing and user-friendly interface.
Gusto’s platform is easy to navigate, meaning businesses can easily manage their HR tasks. Their system also automates many routine tasks, saving businesses valuable time.
Customer service is another strong point for Gusto. They offer extensive support to ensure businesses can maximize their services.
Namely offers a comprehensive HR platform designed for mid-sized companies. Their services include payroll, benefits, talent management, and compliance.
Namely, its platform is customizable, allowing businesses to tailor it to their needs. They also provide real-time analytics, enabling businesses to gain valuable insights into their workforce.
Namely stands out for its community-oriented approach. They actively foster a community of HR professionals, encouraging networking and knowledge sharing.
Rippling is an HR services company known for its next-gen platform. They offer various services, including payroll, benefits, device management, etc.
Their platform is built for the modern workplace. It allows businesses to manage their human resources and IT from a single platform. This unique feature can be handy for businesses with a remote workforce.
Rippling is also praised for its user-friendly design and excellent customer service.
Sequoia is a premium HR services company that caters to both domestic and global businesses. They offer various services, including benefits, risk management, and HR consulting.
Sequoia sets itself apart with its dedicated service model. Each client is assigned a team of experts who provide personalized guidance and support.
Another standout feature of Sequoia is its comprehensive global services. They can help businesses manage their HR functions across multiple countries, ensuring compliance with local laws and regulations.
12. Engage PEO
Engage PEO is a Professional Employer Organization (PEO) offering a full suite of HR services. They handle everything from payroll and benefits to risk management and compliance.
Engage PEO stands out for its high level of service. Each client is assigned a dedicated HR manager who provides personalized advice and support. They also have a team of lawyers to ensure legal compliance.
Moreover, Engage PEO offers flexible solutions. They work with businesses to tailor their services to each company’s needs and challenges.
CPEhr offers a comprehensive range of HR services, including payroll, benefits, labour compliance, and HR consulting. They cater to various industries, including healthcare, finance, and technology.
What sets CPEhr apart is its emphasis on customized service. They take the time to understand each client’s needs and create a tailored HR solution.
CPEhr is also known for its high level of customer service. Their experienced team is always ready to assist businesses with their HR challenges.
14. Papaya Global
Papaya Global is a leading provider of global payroll and HR services. They support businesses in managing their global workforce, including payroll, benefits, and compliance.
Papaya Global stands out for its comprehensive global services. They can handle HR tasks in over 140 countries, ensuring compliance with local laws and regulations. This makes them an excellent choice for businesses with a global presence.
In addition, Papaya Global offers a cloud-based platform that provides real-time insights into global workforce data. This can help businesses make more informed decisions about their human capital.
PeopleStrategy offers an end-to-end HR platform designed for midsize businesses. Their services encompass everything from hiring and onboarding to payroll, benefits, and compliance.
What sets PeopleStrategy apart is its integrated platform. Their platform combines all HR functions, enabling businesses to manage their HR tasks efficiently. They also offer a mobile app for easy access on the go.
PeopleStrategy also places a strong emphasis on customer service. They provide personalized service and support to ensure businesses can make the most of their HR platform.
16. Ultimate Software
Ultimate Software offers an all-in-one HR, payroll, and talent management solution. Their platform, UltiPro, is designed to help businesses improve their people management.
Ultimate Software stands out for its advanced technology. UltiPro offers artificial intelligence and machine learning features to provide predictive analytics and personalized insights.
Another key strength of Ultimate Software is its focus on employee experience. They offer tools and resources to help businesses create a positive work environment and boost employee engagement.
Betterworks is an HR services company known for its performance management solutions. They help businesses streamline their performance review process, set and manage goals, and improve employee performance.
What sets Betterworks apart is its focus on continuous performance management. They provide tools that facilitate ongoing feedback and recognition, helping to foster a culture of continuous learning and improvement.
Betterworks also offers extensive resources and support to ensure businesses can implement effective performance management practices.
18. HR Affiliates
HR Affiliates is a versatile HR services company that offers customizable HR solutions for businesses of all sizes. Their services range from employee relations and compliance to HR strategy development.
What sets HR Affiliates apart is their highly personalized approach. They work closely with clients to understand their unique needs and design an HR solution that aligns with their business objectives. They also offer onsite HR support, which can be a valuable addition for businesses that need a more hands-on approach.
In addition to their customized service, HR Affiliates provides training and development programs to help businesses enhance their human capital.
CareerPlug is an HR services company that specializes in talent acquisition. They offer a comprehensive recruitment platform that helps businesses attract, evaluate, and hire top talent.
CareerPlug’s platform stands out for its simplicity and efficiency. It includes features such as applicant tracking, mobile application, and pre-screening assessments, making the hiring process easier and more efficient.
CareerPlug also offers dedicated customer support, ensuring businesses can optimize their recruitment strategy and attract the right talent.
Workday is a leading provider of enterprise cloud applications for human resources and finance. They offer an integrated suite of applications that includes HR management, payroll, financial management, and more.
Workday stands out for its advanced technology and user-friendly design. Their cloud-based platform provides real-time insights and analytics, helping businesses make data-driven decisions.
Another key strength of Workday is its focus on scalability. Their solutions are designed to grow with businesses, making them an excellent choice for fast-growing companies.
iSolved is a robust HR platform integrating payroll, HR, benefits, and time and labour data into a comprehensive solution. They cater to small and medium-sized businesses across various industries.
iSolved’s platform stands out for its comprehensive and flexible nature. It allows businesses to manage all their HR functions from one place, streamlining processes and increasing efficiency.
In addition to their platform, iSolved offers a network of certified HR professionals who provide expert advice and support, ensuring businesses remain compliant and effective in their HR management.
SmartHR offers a full suite of HR services, including benefits administration, compliance management, and HR consulting. They cater specifically to small and medium-sized businesses, offering customized solutions that fit their unique needs.
What sets SmartHR apart is its hands-on approach. They work directly with businesses to manage their HR functions, allowing business owners to focus on their core operations.
SmartHR also offers a unique HR audit service. This service identifies any compliance issues or areas for improvement, helping businesses optimize their HR practices.
Sage offers a comprehensive set of HR and payroll services. The company is known for delivering scalable and customizable solutions that suit businesses of all sizes and across various industries.
Sage is committed to integrating cutting-edge technology within its services, including cloud computing and artificial intelligence. Their solutions offer automation and real-time insights to significantly enhance HR and payroll operations.
Sage is also known for its robust customer support, with a team of professionals providing guidance and resolving issues promptly.
GoodHire is an HR services company that specializes in background checks. They provide fast, accurate, compliant background check services that help businesses make informed hiring decisions.
GoodHire is committed to creating a fair and respectful hiring process. They provide resources and tools that ensure transparency and fairness, helping businesses build trust with their candidates.
GoodHire’s platform is also praised for its ease of use and quick turnaround times, which can significantly enhance the efficiency of the hiring process.
Reflektive is an HR services company known for its innovative performance management solutions. They provide tools for real-time feedback, goal management, and performance reviews.
What sets Reflektive apart is its focus on fostering a feedback culture. Their platform facilitates continuous, meaningful conversations between managers and employees, promoting a culture of growth and development.
Reflektive also provides analytics and insights that help businesses understand their team’s performance and make informed decisions.
Personio is an HR and recruiting platform for small and mid-sized businesses. Their platform combines HR processes, such as recruiting, onboarding, payroll, and time tracking, into one centralized system.
They stand out for their ease of use and automation capabilities. Automating administrative tasks allows HR teams to focus more on strategic initiatives.
Personio also provides comprehensive support, ensuring businesses can optimize their HR operations and overcome challenges.
The Benefits of Hiring an HR Services Company
Outsourcing HR services to a specialized HR outsourcing provider comes with numerous benefits, some immediately apparent, while others become evident over time. Let’s delve into these benefits in more detail.
1. Access to Expertise
One of the most significant advantages of hiring HR outsourcing companies is gaining access to professional expertise. These companies are made up of experts who stay up-to-date with the latest trends, laws, and best practices in human resources.
Their proficiency spans multiple areas, including employment law, benefits administration, payroll, talent acquisition, and more. Due to resource constraints, businesses, especially small and medium-sized enterprises, may find it challenging to attract such talent in-house.
2. Cost Savings
HR outsourcing can result in substantial cost savings. Running an in-house HR department entails expenses such as salaries, benefits, training, office space, and technology. By outsourcing HR functions, companies can turn these fixed costs into variable costs, paying for services only when needed. HR outsourcing service companies can achieve economies of scale and efficiency, leading to lower costs in the long run.
3. Enhanced Compliance
Keeping up with employment laws and regulations can be complex and time-consuming. Non-compliance can lead to legal issues, fines, and damage to the company’s reputation. The best HR outsourcing services have the knowledge and systems to help businesses comply with various laws and regulations, reducing the risk of potential legal pitfalls.
4. Improved Efficiency
HR outsourcing companies leverage technology and standardized processes to improve efficiency in HR operations. Advanced HR software can automate administrative tasks such as payroll, benefits administration, and record-keeping, reducing the likelihood of errors and freeing up time for strategic initiatives.
HR needs can change as businesses grow, enter new markets, or face economic downturns. HR services companies offer flexible solutions that can quickly scale up or down depending on the company’s needs. This scalability can be particularly beneficial during periods of rapid growth, when the need for HR services may outpace a company’s internal capabilities.
6. Focus on Core Business
Outsourcing HR functions allows companies to focus on their core business activities. HR tasks, although essential, can be time-consuming and often divert attention away from a company’s primary objectives. By delegating these duties to an HR services company, businesses can devote more time and resources to what they do best, leading to increased productivity and growth.
7. Employee Development
Many HR outsourcing companies offer training and development programs. These programs can enhance employees’ skills, boost their morale, and help retain top talent. A well-implemented training program can directly contribute to a company’s bottom line by improving employee productivity.
By understanding these benefits, businesses can make informed decisions about whether or not to outsource their HR functions. Each company’s needs and circumstances are unique, and the decision should align with the company’s strategic goals, current resources, and specific HR requirements.
Is Hiring an HR Services Company Worth It?
Hiring an HR services company can be strategic and offer several benefits to businesses, particularly those with limited internal resources.
However, to answer whether it’s worth it, it’s essential to understand your business’s specific needs and the potential advantages and challenges associated with hiring an HR services company.
1. Expertise and Knowledge
One of the foremost advantages of hiring an HR services company is access to their specialized expertise and knowledge. These companies have professionals up-to-date with the latest HR trends, labour laws, and best practices. This expertise becomes particularly critical when dealing with complex compliance, risk management, and benefits administration issues.
For smaller businesses or startups that might need an established HR department, an HR services company can provide immediate access to expert knowledge and skills, eliminating the need to recruit and train an internal HR team. These companies can supplement existing HR functions for larger businesses and bring specialized expertise.
2. Cost Savings
Hiring an HR services company can often lead to substantial cost savings. Setting up and running an in-house HR department involves recruitment, training, salaries, benefits, office space, and technology costs. These costs can be prohibitive for many businesses, particularly small and medium-sized ones.
On the other hand, HR services companies operate on a larger scale and can provide services more efficiently, often at a lower cost. The cost structures of these companies also offer flexibility, as they often provide customized packages based on the specific services a business needs.
3. Improved Compliance and Risk Management
HR services companies can help businesses navigate the complex employment and labour laws landscape. They ensure compliance with these laws, reducing the risk of legal issues and penalties. They can also manage other potential HR risks, such as workplace safety issues and employee disputes.
While there are numerous benefits to hiring an HR services company, it’s essential to be aware of potential challenges as well. One possible issue is the loss of control over HR functions. Some businesses might feel uncomfortable outsourcing these functions, particularly regarding sensitive tasks such as handling employee data or managing layoffs.
Another potential challenge is aligning the HR services company with your business culture and goals. Not all companies will be a perfect fit, and a mismatch could lead to employee dissatisfaction and other issues.
Frequently Asked Questions (FAQs)
Here are some of the most frequently asked questions regarding HR services companies.
1. What services do HR services companies provide?
HR services companies provide various services, including payroll administration, benefits administration, risk management, compliance, recruitment, talent management, employee engagement initiatives, and workforce planning.
2. Can an HR services company handle all my HR needs?
Yes, many HR services companies offer comprehensive solutions that can handle all aspects of HR. However, the extent of services can vary from one company to another, so it’s essential to clarify what services are included before hiring a company.
3. How much does it cost to hire an HR services company?
The cost of hiring an HR services company can vary greatly depending on the size of your business, the services you need, and the company you choose. Some companies charge a flat monthly fee, while others may charge per employee or offer a customized pricing structure based on your specific needs.
4. How can I choose the right HR services company for my business?
Choosing the right HR services company involves understanding your business’s specific HR needs, researching potential companies, reading reviews, seeking recommendations, and comparing prices and services. It’s also important to consider the company’s reputation and customer service.
5. Can an HR services company help with legal compliance?
Yes, one critical service HR services companies provide is ensuring legal compliance. They can help your business stay up-to-date with the latest labour laws and regulations, reducing the risk of penalties and legal issues.
6. Can I switch HR services companies if I’m unhappy with their service?
Yes, if you’re not satisfied with the service provided by your HR services company, you can choose to switch companies. However, it’s recommended to discuss any issues with your current provider first, as they may be able to address your concerns.