HR outsourcing

Need relief from HR administrative tasks? See why small and midsized businesses trust ADP HR outsourcing for day-to-day support and specialized guidance.

We help you run your business smarter

Perhaps you're ready to focus more on strategy and less on mundane payroll, HR and benefits administration tasks. Or perhaps your company is growing or has limited HR resources. In cases like these, you need the strategic relationship of an experienced HR partner. No matter your challenge, ADP® has the experience and solutions to help you reduce your daily workload and compliance risk.

Why consider HR outsourcing?

Business Benefits

How can HR outsourcing benefit my business?

Outsourcing HR can help save you time and money and can take the worry out of certain areas of compliance. You can choose to outsource some or all day-to-day administrative duties across HR, talent management, payroll, benefits, and more.

  • Take administrative tasks off your plate and free up time to focus on strategic goals, such as employee retention, and growing your business.
  • Reduce time spent resolving issues and answering employee questions related to HR, benefits or pay.
  • Save money on hiring additional HR personnel.
  • Reduce onboarding and training costs.
  • Receive support for compliance with employment laws and regulations, workplace safety, payroll and tax, and more – potentially saving your business from compliance fees and penalties.
HRO Defined

What is HR outsourcing?

Human Resources outsourcing (HRO) is when you contract with an independent provider to handle some or all of your HR functions. You can contract for a variety of services, from basic and day-to-day HR to more strategic offerings.

Administrative HR Tasks

  • Payroll administration
  • Benefits administration
  • Time and attendance tracking
  • Employee safety and wellness
  • Employee handbook
  • COBRA administration

Strategic HR Services

  • Employee turnover
  • Data analytics and insights
  • Compliance tracking and reporting
  • Recruiting and staffing
Team Depth

Can I outsource HR if my company already has an HR person or department?

Yes. HR outsourcing is a great option for businesses with or without HR staff.

  • If you have an HR person or department, HR outsourcing is not a replacement, but rather a partnership and an extension of your in-house team.
  • If you don’t have internal HR, outsourcing serves as your go-to resource for HR, payroll, and benefits, working closely with you or another designated employee.

Learn more about the expertise and support we provide with our PEO and managed services HR outsourcing solutions*:

  • Strategic HR Expert assigned to Client
  • ADP MyLife Advisors for employee phone support
  • Payroll support
  • Time and Attendance support
  • Recruiting support
  • HR support
  • Talent support
  • Benefits support
  • Technology support

See what you get with our PEO solution >

See what you get with our HRO/Managed Services solution >

*ADP role provided based on offering purchased

See how HR outsourcing can be perfect for your business

We offer a range of HR outsourcing so you get what's best for your business.

Your business is unique: Get what fits

Don’t settle for “one size fits all.” Choose the HR outsourcing or PEO solution option that gives you exactly what you need. Both options include technology and hands-on guidance and support across pay and tax administration, talent, strategic HR, benefits administration, and compliance. Dig deeper to understand the differences:

ADP TotalSource®
A professional employer organization (PEO) with dedicated guidance and advanced cloud technology to manage your HR, talent, risks and payroll — plus access to Fortune 500®-caliber employee benefits.
Learn More >

ADP® Comprehensive Services
An advanced, all-in-one software platform plus dedicated specialists who will partner with your HR team to offer best practices, process efficiencies and support. Select only the services you want and only the support you need - across HR, payroll, and benefits administration outsourcing.
Learn More >

Work with an experienced, scalable partner

Unlike with other human resource companies, with ADP you get:

  • Outsourcing services supporting over 2 million employees
  • A leader in HR outsourcing, as awarded by industry analysts
  • A history of success — we're trusted by more companies than any other HR outsourcing provider in the industry
  • Leading, best-in-class vendors in the industry who partner with us
  • The nation’s largest certified PEO
  • Fully integrated technology across all aspects of HCM, plus easy integration with leading technology partners
  • Unmatched access to benchmarking and analytics so you can make better-informed business decisions
  • Flexible options for you to choose from
  • Deep experience in every major industry

Who we work with

Join the growing community of businesses leveraging ADP’s powerful technology, expertise and insight.

KidPik Corp. Retail New York, NY

4Cs of Passaic County, Inc. 25–150 Employees Nonprofit Paterson, NJ

Stillwater Insurance Group 50-999 Employees Insurance Jacksonville, FL

4C Foods Corp 50-999 Employees Manufacturing Brooklyn, NY

Willdan Group, Inc. 50-999 Employees Professional and Technical Services Anaheim, CA

Grand Street Medical Associates 50-999 Employees Health Care Kingston, NY

How we work with others like you

Awards and recognition

Multi-Process Human Resources Outsourcing 2023

12 consecutive years

Leader Cloud-Based HR Transformation Services

2020 - 2023

Gold Stevie Winner for HRO Service Culture for Innovation in Customer Service


Resources and insights

What is HRO?


What is HRO?


How partnering with an HR tech and service provider can support your business


Take payroll and HR administration off your plate. And reap the rewards.

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HR outsourcing FAQs

What do you mean by HR outsourcing?

HR outsourcing means that a third-party provider handles some or all aspects of HR on behalf of your business. In its most basic form, you may be given a toll-free number to access an HR representative for assistance. Premium versions of HR outsourcing, on the other hand, are more of a partnership, in which a team of specialists get to know your business and help with both strategic HR planning and day-to-day administrative tasks. This arrangement is also known as full-service HR, managed services or co-employment.

Why is HR outsourcing important?

HR outsourcing is important because it offers you an alternative if you lack the expertise or resources to manage the complexities of HR and/or prefer not to hire in-house staff for that purpose. In such scenarios, outsourcing HR can help you:

  • Alleviate administrative burdens and save time
  • Focus on strategic or growth-related activities
  • Reduce operating expenses
  • Minimize liability and compliance risks

What HR services can be outsourced?

Available in all-in-one solutions or separately, HR outsourcing commonly supports the following areas:

  • Payroll and tax administration
  • Human resources
  • Compliance
  • Benefits administration
  • Talent management

How does HR outsourcing reduce costs?

Outsourcing HR offers efficiency savings, cost displacement and more services for less money compared to the expense of hiring full-time HR staff. HRO providers also tend to have the latest technology and software, which may be unaffordable if you’re operating your business on your own. As an added bonus, you’ll typically be paired with a professional who has vast experience dealing with common and complex HR issues and can help you more confidently navigate your challenges.

How much does it cost to outsource HR?

HR outsourcing providers that use per employee pricing structures can charge between 4% and 8% of each worker’s pretax monthly earnings. Others may charge a flat monthly fee. Ultimately, the price depends greatly on what your business needs. For instance, an entry level HR help desk may be cheaper than a professional employer organization (PEO), but it will not provide the same level of service or quality assurance that you’d expect with co-employment.