--- title: "HR Outsourcing | ADP" description: "ADP's HR and Payroll Outsourcing can transform your business, handling some or all of your HR-related tasks. Learn more about outsourcing your HR here." --- HR Outsourcing # HR outsourcing for small and midsized businesses Get support for HR, payroll, benefits, talent and compliance with flexible outsourcing solutions built for small and midsized businesses. Let's Talk ![Small group of smiling, high-fiving coworkers, depicting the ease of outsourcing Human Resources, payroll, benefits and talent acquisition with providers like ADP](https://marketing-assets.adp.com/api/public/content/92914782de6649d7be9cdeab1d346e5f?v=f8c851d3) How it works ## Understanding HR outsourcing ### ### What is HRO? Human Resources Outsourcing (HRO) is when a business partners with an outside provider to handle administrative HR work for them — fully or in part. Depending on a business’s needs, that might mean: - **Offloading routine tasks** like payroll processing, benefits administration and employee onboarding - **Staying ahead** of ever-changing HR compliance requirements - **Tapping into** [strategic HR expertise](/resources/articles-and-insights/articles/t/the-business-case-for-outsourcing-hr) you may not have in-house ### ### What can be outsourced with HRO? In an HR setup, a wide range of administrative HR tasks and strategic HR services can be outsourced. These are some of the most common outsourcing arrangements: - **Administrative HR tasks** such as payroll, benefits administration, time and attendance tracking, employee safety and wellness, employee handbooks and COBRA administration - **Strategic HR services** such as employee turnover, data analytics and insights, compliance tracking and reporting, and recruiting and staffing ### ### Will HRO work with my existing team? 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 and your team ![Woman holding a tablet, learning about the reasons companies may choose Human Resources Outsourcing (HRO), including offloading tasks and compliance needs](https://marketing-assets.adp.com/api/public/content/0b2ef56853334a3c89534cc827fd6108?v=bfa9a1d3) ![Agent looking out while holding a laptop, depicting the services provided by outsourcing administrative and/or strategic HR tasks and services to providers like ADP](https://marketing-assets.adp.com/api/public/content/d39ae64a5d3646b2a6ca9b2244e64542?v=9fcdf9c8) ![Small smiling team interviewing a candidate, depicting the simplicity of using ADP for outsourcing, allowing internal teams to focus on other aspects of HR](https://marketing-assets.adp.com/api/public/content/fc804c666a904239813826d81c2a27ce?v=9401d9c6) ### What is HRO? Human Resources Outsourcing (HRO) is when a business partners with an outside provider to handle administrative HR work for them — fully or in part. Depending on a business’s needs, that might mean: - **Offloading routine tasks** like payroll processing, benefits administration and employee onboarding - **Staying ahead** of ever-changing HR compliance requirements - **Tapping into** [strategic HR expertise](/resources/articles-and-insights/articles/t/the-business-case-for-outsourcing-hr) you may not have in-house ![Woman holding a tablet, learning about the reasons companies may choose Human Resources Outsourcing (HRO), including offloading tasks and compliance needs](https://marketing-assets.adp.com/api/public/content/0b2ef56853334a3c89534cc827fd6108?v=bfa9a1d3) ### What can be outsourced with HRO? In an HR setup, a wide range of administrative HR tasks and strategic HR services can be outsourced. These are some of the most common outsourcing arrangements: - **Administrative HR tasks** such as payroll, benefits administration, time and attendance tracking, employee safety and wellness, employee handbooks and COBRA administration - **Strategic HR services** such as employee turnover, data analytics and insights, compliance tracking and reporting, and recruiting and staffing ![Agent looking out while holding a laptop, depicting the services provided by outsourcing administrative and/or strategic HR tasks and services to providers like ADP](https://marketing-assets.adp.com/api/public/content/d39ae64a5d3646b2a6ca9b2244e64542?v=9fcdf9c8) ### Will HRO work with my existing team? 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 and your team ![Small smiling team interviewing a candidate, depicting the simplicity of using ADP for outsourcing, allowing internal teams to focus on other aspects of HR](https://marketing-assets.adp.com/api/public/content/fc804c666a904239813826d81c2a27ce?v=9401d9c6) ## When should you consider HR outsourcing? If you’re having trouble keeping up with HR work, it might mean that you’ve grown beyond the basics. Here are some signs that HR outsourcing might be the right solution for your business. - **HR admin is eating your time:** Managing payroll, benefits, compliance and employee questions is pulling you away from running and growing your business. - **Compliance requirements are too complex:** Employment regulations keep changing, costing you time and worry.  - **Your business is growing faster than HR can keep up:** Your current setup may not be ready for more employees, new states and new requirements.   - **You want your HR team focused on strategy, not administration:** Higher-value strategic priorities are getting pushed aside because your HR team is focused on administrative work. - **Your benefits program isn't where it could be:** You lack the bandwidth to manage a growing benefits program or the buying power to offer competitive plans. ![Badge graphic with inset text reading, Over 3.5 million employees rely on ADP's outsourced HR services](https://marketing-assets.adp.com/api/public/content/9bd1f1df287c479e89871ee8c782e60b?v=c6f12673) ## ADP's HR outsourcing services now support over 3.5 million employees Thanks to the tens of thousands of small and midsized businesses who trust ADP to support your HR, payroll, benefits and workplace safety needs. Let's Talk ADP HRO Solutions ## Which ADP HR outsourcing solution is right for you? ADP offers two HR outsourcing paths for small and midsized businesses. **ADP TotalSource**® is an all-in-one PEO built on a co-employment relationship and designed for businesses seeking a full-service HR partnership, access to large-group benefits and comprehensive HR support. **ADP Comprehensive Services**® is a managed services HRO solution for businesses that want to outsource specific HR, payroll, benefits or talent functions without changing their existing employer structure. ADP TotalSource ### Full-service PEO solution ADP TotalSource is an all-in-one PEO solution that acts as your dedicated HR partner, streamlining payroll, benefits administration and compliance. It combines expert support and advanced technology, so you can stay focused on your business. - Dedicated HR Business Partner assigned to your business with HR guidance backed by ADP's EPLI policy - Access to competitive benefits with benefits administration handled by ADP - Scalable solution built for businesses with 5–1,000+ employees - ADP TotalSource is an IRS-certified and ESAC-accredited PEO Launch Self-Guided Demo ADP Comprehensive Services ### Managed services solution ADP Comprehensive Services gives businesses of all sizes the flexibility to hand off some or all of their HR, payroll, benefits administration and talent functions to experienced ADP professionals, giving your team more freedom to focus on strategy while ADP handles the day-to-day. - Experienced HR, payroll, benefits and talent professionals who get to know your business - Support across HR, payroll & tax administration, benefits administration and talent management - Scalable solution built for businesses with 25–1,000+ employees Launch Self-Guided Demo ![Casual business team engaged in discussion, depicting the decision-making process for businesses debating HR outsourcing](https://marketing-assets.adp.com/api/public/content/593ad9e636be4d82a1bece124925b786?v=354cbfe2) Proven experience ## Why ADP for HR outsourcing? When it comes to HR outsourcing, not all providers are created equal. ADP brings unmatched scale, proven expertise and flexible solutions that grow with your business, so you always have the right support at every stage. - HR outsourcing services supporting over 3.5 million employees, and trusted by more companies than any other provider in the industry - ADP TotalSource is among only 5% of PEOs with both IRS certification and ESAC accreditation - Top recognitions in HR outsourcing, as awarded by industry analysts including Everest Group and NelsonHall - Fully integrated HCM technology with seamless connections to leading vendors, partners and platforms - Unmatched access benchmarking and analytics to help you make better-informed business decisions - Flexible solutions and deep industry expertise, built to scale with your business - Deep experience in every [major industry](/who-we-serve/by-industry) ## Ready to get started? We can help you determine the level of HR outsourcing that can meet your organization's unique needs. Let's Talk ## Who we work with Join the growing community of businesses leveraging ADP's powerful technology, expertise and insights. Slide 1 of 6 - ### KidPik Corp. Retail New York, NY - ### 4Cs of Passaic County, Inc. 25–150 Employees Nonprofit Paterson, NJ - ![Stillwater Insurance Group](/-/media/adp/redesign2018/images/what-we-offer/products/adp-enterprise-hr/stillwater-logo.png?h=228&iar=0&w=420&rev=362dd5352955484cae8abc21afb4666d&hash=B93568BC87EB3719C2B884E06A25D42B) ### Stillwater Insurance Group 50-999 Employees Insurance Jacksonville, FL - ### 4C Foods Corp 50-999 Employees Manufacturing Brooklyn, NY - ![Willdan Group, Inc. logo](/-/media/adp/redesign2018/images/what-we-offer/outsourcing-options/hr-outsourcing/willdanlogo1472x.png?h=76&iar=0&w=294&rev=675d3af5b35e4ae192162a0bfbc884e1&hash=95F9D275F844E3061ECB4FDBC7218206) ### Willdan Group, Inc. 50-999 Employees Professional and Technical Services Anaheim, CA - ### Grand Street Medical Associates 50-999 Employees Health Care Kingston, NY Previous slideNext slide ## What clients say about ADP's HR outsourcing - ![Mike Wagner, VP of a professional services firm, finds that managing compliance for employees in different states is much easier and less time-consuming with ADP](https://marketing-assets.adp.com/api/public/content/60e86015a2db42798df422de8defbffd?v=37e3c79b) ### Growing and scaling with ADP TotalSource > “Tax compliance is very, very difficult. When you have employees in different states than your home state, it makes it exponentially more difficult. It’s nothing short of impossible without the partnership of ADP TotalSource.” Watch Video[Read Case Study](/resources/what-others-say/testimonials/h/how-a-small-quality-logo) Name Mike Wagner Title Vice President Company Quality Logo Products Industry Professional Services Employees 100 - ![Kylie Sandberg, Director of Operations, touts ADP's recruitment and talent acquisition services and appreciates hiring more qualified candidates thanks to HRO ](https://marketing-assets.adp.com/api/public/content/647d2bb823be4e17996a8537bcbd500e?v=18069cc1) ### Transforming HR, payroll, benefits and talent management > “ADP has helped us build job descriptions and train our managers to be more accountable, and that has helped us save significant amounts of direct and indirect employee expenses. Now, we get qualified applicants, and I don’t waste my time anymore.” [Read Case Study](/resources/what-others-say/testimonials/c/changing-the-game-genesis-gaming) Name Kylie Sandberg Title Director of Operations Company Genesis Gaming Solutions, Inc. Industry Professional Services Employees 50–99 - ![Cory Christensen, a senior director of HR and professional development, loves that ADP makes it easier to focus on company growth and scalability with outstanding guidance](https://marketing-assets.adp.com/api/public/content/472da63ef7b8407aae783035a97f65f1?v=0883f347) ### Optimizing a strategic approach to HR > “As we explore growth, we know that whatever happens, we’ll be able to tackle it confidently because we have sound guidance from ADP. The assurance that ADP Comprehensive Services brings to Maverick is worth its weight in gold.” Watch Video[Read Case Study](/resources/what-others-say/testimonials/s/strategic-approach-maverick-solutions) Name Cory Christensen Title Sr. Director of HR & Professional Development Company Maverick Solutions Industry Professional Services Employees 63 - ![Dean Friders, Chief Solutions Officer at a healthcare company, appreciates ADP's top-notch customer service and expert support](https://marketing-assets.adp.com/api/public/content/91e454bed0e741458ee46cf4530e550f?v=96638334) ### Scaling HR and benefits with ADP TotalSource > “After a sustained run of poor customer service with our prior payroll provider, we made the decision to move to ADP. It was a complex lift under tight deadlines, but it has been executed exceptionally well.” [Read Case Study](/resources/what-others-say/testimonials/e/exceptional-execution-work-health-solutions) Name Dean Friders Title Chief Solutions Officer Company Work Health Solutions Industry Healthcare Employees 120 - ![Jeffrey Taraboulos, managing partner at a midsize FinServ company, finds the advanced HR technology of ADP frees up significant time that can be spent on clients](https://marketing-assets.adp.com/api/public/content/05dfd961bce24edaba93d740b5fe04ea?v=3bbd17e8) ### HR technology as a platform for growth > “The more ADP technology we add, the more time we’re able to spend with our clients. I foresee us working with ADP as we continue growing even more over the next couple of years and in the future.” [Read Case Study](/resources/what-others-say/testimonials/s/scaling-success-ksdt-co) Name Jeffrey Taraboulos Title Managing Partner Company KSDT & Co., CPA Industry Financial Services Employees 250+ - ![Jessica McCarthy, healthcare company chief of staff, appreciates how easy HRO with ADP has made the day-to-day by taking payroll off her plate](https://marketing-assets.adp.com/api/public/content/9b5fa1e873e94162a721f88ff1c3cca7?v=8a6c533d) ### Trading attrition for retention through pay accuracy > “Our partnership with ADP has made everybody’s life so much easier — no one talks about payroll anymore, and that tells me everything I need to know.” [Read Case Study](/resources/what-others-say/testimonials/t/trading-attrition-for-retention) Name Jessica McCarthy Title Chief of Staff Company GrandCare Health Services Industry Healthcare Employees 150 - ![Thomas Gentile, corporate controller for a large law practice, loves that using HR outsourcing by ADP frees up time allowing for focus on more strategic goals](https://marketing-assets.adp.com/api/public/content/d325dbe615d046c4b950963a606c59e2?v=bb19003c) ### More compliance, fewer manual tasks > “Our team can now focus on more critical areas that can help drive towards \[our\] larger goals knowing ADP has them covered.” Watch Video[Read Case Study](/resources/what-others-say/testimonials/f/fewer-manual-tasks-fragomen-del-rey-bernsen-loewy) Name Thomas Gentile Title Worldwide Corporate Controller Company Fragomen, Del Rey, Bernsen & Loewy, LLP Industry Immigration Law Employees 6,000 ## Awards and recognition - ### Multi-Process Human Resources Outsourcing 2025 12 years - ![NelsonHall NEAT Leader 2026 Benefits Administration](/-/media/adp/resourcehub/images/analyst-reports/adp-hr-transformation-neat-badge-may-26.png?h=257&iar=0&w=586&rev=a62abc4840b849548e74f2d76c6fcb78&hash=F2ECC2339E902F5E9E9B8C57D6FD3E7D) ### Leader HR Transformation Services 2020 - 2023, 2025-2026 - ![Gold Stevie Winner for HRO Service Culture for Innovation in Customer Service ](/-/media/adp/reskin2022/images/whatweoffer/hr-outsourcing-and-peo/hr-outsourcing/stevie-award-gold-2022.jpg?h=266&iar=0&w=500&rev=3d9f3aa060c143aca059dfbdd278cad5&hash=7402591179AE21D3C2B839AF092D59ED) ### Gold Stevie Winner for HRO Service Culture for Innovation in Customer Service 2025 ## Resources and insights - [ ![What is HRO?](/-/media/adp/resourcehub/rh2/images/insight/hero/hro_586.jpg?h=294&iar=0&w=586&rev=c41705c18abb4f738e6c525c0f4f2924&hash=81664EB8442E1BE3F9C1F78C779BE7ED) Insight ### What is HRO? Read Now ](/resources/articles-and-insights/articles/w/what-is-hro) - [ ![How partnering with an HR tech and service provider can support your business](/-/media/adp/resourcehub/rh2/images/guidebook/thumb/guidebook_partnering_with_hr_tech_thumbnail_293_en.jpg?h=294&iar=0&w=586&rev=4e4b83a07d814cc18d0005884c949171&hash=5993917AD2695D8E5FFF02CD6B4160B4) Guidebook ### How partnering with an HR tech and service provider can support your business Download Now ](/resources/articles-and-insights/articles/h/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.](/-/media/adp/resourcehub/rh2/images/guidebook/thumb/guidebook_take_payroll_hr_off_plate_thumbnail_293_en.jpg?h=294&iar=0&w=586&rev=9dd63e6226c14e7d8c930e81817f3119&hash=CC20485203E2C78C3FF1DB3E1F72DA1A) Guidebook ### Take payroll and HR administration off your plate. And reap the rewards. Download Now ](/resources/articles-and-insights/articles/t/the-business-case-for-outsourcing-hr) ## HR outsourcing FAQs ### What is the difference between HR outsourcing and a PEO? A PEO is a form of HR outsourcing, but it operates through a co-employment model. General HR outsourcing typically involves contracting a provider to manage specific HR functions while your company remains the employer. With a PEO, the provider shares certain employer-related responsibilities, and your company continues to manage day-to-day operations and employee decisions. ### What's the difference between ADP TotalSource and ADP Comprehensive Services? Both solutions help reduce HR burden and flex to fit your business, whether you have an HR team in place or need more hands-on expertise. They’re built for different levels of support. **ADP TotalSource (PEO)** - Enter a co-employment relationship with shared HR responsibility - Get a dedicated team of HR, payroll, benefits, safety and compliance experts - Reduce day-to-day administrative workload across HR, payroll, benefits, compliance and workplace safety - Help streamline HR processes while sharing responsibility for compliance and risk, and offering employees competitive benefits **ADP Comprehensive Services (Managed Services)** - Keep your current employer structure - Choose support where you need it across HR, payroll, benefits and/or talent - Get expert guidance and hands-on help, from fully managing functions like payroll or benefits to supporting more strategic HR and talent initiatives In short: TotalSource is a full-service partnership that shares HR responsibilities and risk, while helping streamline operations across the board. Comprehensive Services gives you flexible options, from fully managing functions like payroll or benefits to providing strategic guidance in areas like HR and talent. ### Can I outsource HR if I already have an HR person? An HRO provider can support your existing staff with technology, administrative relief, guidance and best practices, freeing your team to focus on more strategic priorities instead of day-to-day administration. ### What HR tasks can be outsourced? A wide range of HR tasks can be outsourced, including payroll and tax administration, benefits administration, regulatory compliance, talent management, HR, employee training and development, and workforce policy support. These services can be tailored to fit your specific needs. ### How do I know if my business is ready to outsource HR? Common signs that you may be ready to outsource HR include spending too much time on HR administrative work, struggling to keep pace with changing regulations, growing faster than your HR capacity, operating without dedicated HR staff and/or wanting better benefits without having the resources to manage them in-house. ### How much does HR outsourcing cost? HR outsourcing costs vary by provider and scope of services. HRO providers typically charge based on the number of employees in a business and the specific services needed. PEO costs use two common models, a percentage of payroll or a per-employee monthly fee. ### What is the difference between HR outsourcing and managed services? In practice, the terms are often used interchangeably. However, managed services usually refers to a more defined, ongoing, and accountable outsourcing arrangement. Get started Let's find the perfect solution for your business. 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