10 Tips for Choosing the Right Human Resources Outsourcing Service


HR covers many tasks that most HR professionals are forced to be “jack-of-all-trades, master-of-none.”

An HR outsourcing service can help alleviate a company’s administrative burden and free employees to focus on income-generating priorities.

A good HR 3rd party partner will offer various services, including payroll processing, benefits administration, regulatory compliance, and company policies.


Ask for references and testimonials.

Your HR outsourcing service should be able to provide you with references and testimonials. These are essential for ensuring you get quality work at a fair price.

Look for a provider that meshes with your company culture and won’t disrupt your current office vibe. This is important because they’ll work closely with your employees and must understand the company’s values and mood.

HR outsourcing services help companies save time and money by handling critical tasks. This allows businesses to focus on growth initiatives and keeps them compliant with workplace laws.

Check the company’s website.

Some HR functions are better suited to outsourcing than others.

This includes recruiting and screening applications, developing job descriptions, and assisting with new-hire onboarding.

HR providers can also handle employee compliance matters. Workplace regulations expertise can be highly beneficial for small businesses.

When choosing the best human resources outsourcing service company, check their website for information about their services and how they work with clients.

Find out if they offer 24/7 service, what their servicing model looks like (for example, will you be assigned one HR professional or will you have access to a portal), and how they communicate with their clients.

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Ask for a quote.

Many companies that outsource their HR services save money in the long run. Instead of paying a salary and benefits to an in-house team, these businesses pay for only the services they need from a PEO or HR outsourcing service provider.

When evaluating different HR providers, ask for a quote and compare prices. You also want to understand what level of personal service is offered.

For example, some HR vendors provide a single person to answer questions, while others offer 24/7 support. Sheakley offers both options.

Schedule a demo

A demo is a great way to check out a potential HR software solution. Look for a platform that is easy to use and offers a centralized database.

Also, note whether the rep changes URLs while walking you through the system – this can be a sign that they are using patchwork systems instead of a unified platform.

Many small business owners need help to keep up with the ever-changing human resource rules and regulations. Outsourcing can help them focus on the core of their business and avoid legal risks.

Schedule a meeting with a manager.

Keeping up with employment laws and regulations is a full-time job for HR teams. Outsourcing this responsibility to an expert team can save valuable time and money for SMBs.

Outsourcing HR can free up a company’s most important assets—time and money—to focus on income-generating activities.

Choosing the right partner can help businesses maximize this return on investment. It’s also important to regularly examine the results and ensure the partnership works well.

An excellent way to do this is by collecting employee feedback and evaluating performance benchmarks.

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Check the company’s certifications.

Keeping up with employment laws is a full-time job for most HR professionals.

Outsourced HR firms are well-versed in these issues, which lowers the risk of costly legal claims by employees.

HR outsourcing services include everything from talent acquisition to employee training and development.

Robust performance management tools are also available, which help companies gain insight into employee satisfaction and retention.

Moreover, many PEOs offer integrated benefits administration and economies-of-scale pricing for employee health insurance, supplemental insurance, and retirement plans. This helps small and mid-sized businesses compete with larger companies for talent.

Check the company’s experience.

HR outsourcing companies can save time and money by managing your human resources department.

They also help you stay in compliance with workplace laws. This can be especially important for small businesses needing more expertise to do it independently.

It’s also essential to check how long the company has been in business. You want a company with the experience to understand your needs and provide top-notch service.

It is essential to ensure a seamless transition and prevent any unexpected issues from arising in the future.

Check the company’s pricing.

Choosing an HR outsourcing company requires a thorough review of its pricing structure. Some companies charge a fixed monthly fee, while others charge a percentage of employees’ salaries.

Be sure to understand the company’s pricing structure and comply with all official employment and data security laws.

It is also essential to check if the company provides template HR documents or if they can create bespoke documentation for your specific needs. This can save you time and money, and it will ensure that your documents are fit for purpose.

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Check the company’s customer service.

Keeping up with employment laws can be challenging for small businesses, especially when they have many employees.

An HR outsourcing company that can help them stay compliant will save time and effort.

Choosing an HR outsourcing partner that offers personal service is essential. Some providers offer a dedicated representative, while others have 24/7 customer service.

It’s also important to check the company’s pricing. Please make sure they are affordable and flexible enough to fit your needs.

Also, determine whether they have minimum contract lengths or other charges.

Check the company’s flexibility.

Small to mid-sized businesses often need more money to keep an entire staff of HR employees onsite.

Outsourcing these tasks can free up time for companies to focus on growth-related priorities.

It can be a full-time job to stay up-to-date with the constantly changing local, state, and federal employment laws.

Choosing an outsourcing company specializing in employment law compliance can take this burden off a business owner’s shoulders.

When researching potential providers, it’s essential to check how flexible their service model is.

For example, some providers offer a bundled package where you pay a flat fee for all services, while others may charge by the hour or on a per-case basis.

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