Cheap HR Outsourcing – How Affordable is Human Resource Outsourcing Pricing in 2018?

For as little as $95/month per employee, HR outsourcing is not an exceptionally expensive proposition, especially when you consider the value that you can obtain from such a service.

Hiring an outsourced HR firm to take care of your internal human resources issues can actually end up being an incredible bargain, because you will save significant amounts of money when you compare the outsourcing fees to what it would cost you to handle the same issues internally.

You can find a low-cost HR firm to outsource your duties to by looking for a company that allows you to structure your billing to fit the size and needs of your organization. The exact services that the company offers will play a large role in how much your contract ends up costing you. Factors that could affect your pricing include:

  • The level of any management personnel the HR firm is recruiting for
  • The amount of screening and background checks performed on new hires
  • The training options they offer employees
  • The payroll services that may or may not be included with your service
  • The tax reporting features offered


HR Outsourcing Cheapest RatesThis is just a sampling of the types of features which might cause HR outsourcing in certain situations to not be as economical as some more stripped down packages. There are companies that specialize in providing these services to small businesses however, which means that there are very low-priced options available for people that only have a small group of employees to manage. Enterprise options, on the other hand, may not be as affordable, but typically include a much wider range of services.

What is HR Outsourcing?

What is HR Outsourcing

Some may ask, what is HR outsourcing and can I benefit from it? HR outsourcing firms provide you with all the services that you would typically get from an in-house HR department on a freelance or contract basis. Instead of having to pay employees to manage your human resources internally at all times, you only pay for the services that you need.

This is a particularly good model for small businesses. Until companies reach a certain size, it often doesn’t make financial sense to hire a full-time HR professional or department, which means that human resource issues either get overlooked or dumped in the laps of managers whose specialties really lie elsewhere.

The types of services you can find at a low-cost HR outsourcing firm include:

  • Hiring and recruitment
  • Creating, implementing and updating training programs for your staff
  • Payroll services
  • Tax reporting
  • Employee mediation
  • Employee terminations

There are also different models that you can use when looking for a cheap HR outsourcing option. In some cases, you can hire a company to perform regular duties for you, usually putting them on a regular monthly contract to take care of tasks such as your payroll administration.

In the other model, you can hire a company to perform a single task for you. For example, if you need a key position in your company filled, you might contact an affordable HR outsourcing firm to conduct the search process in order to provide you with a list of suitable candidates. Then, once you’ve selected your new hire, they can complete the hiring process by taking care of all the required administrative details required when a new team member comes aboard.

What to Look for in Low Cost Human Resource Outsourcing?

Knowing what key features to look for in an affordable HR outsourcing firm depends on how you want to primarily utilize their services. If you only need one of the following, concentrate on the key factors mentioned.

National Average Charges From Suppliers:

  • Small companies invest $60 – $100 per employee per month for payroll and benefits administration.
  • National average $185 – $210 per month for small business payroll, risk management, and HR technology.
  • Medium sized business may pay $2,500 – $3,400 for basic HR services that cover regulatory compliance, payroll, taxes, and HR management.

If using multiple services, then evaluate your potential choices based on all of these criteria.

What To Look for in Low Cost HR OutsourcingHiring: Ask the company how extensive a search they conduct. For entry level positions this is less important, but for management, you want a company to cast a wide net to find the most qualified candidates. Also, be sure to ask what kind of screening and background checks they conduct on potential employees. Extensive screening can help stop a problem hire from ever becoming an issue.

Payroll: If you’re using an HR outsourcing firm to handle payroll, ask what type of automation they have in place to handle the process? Is there easy to use software that you can use to make payroll requests each pay period? Do they handle all the taxation requirements or not?

Training: As far as training is concerned, an HR outsourcing firm should either have access to large libraries of training tools, or be experts at creating custom training. Either option can work, but be sure to understand what types of training options they can offer your employees, and at what costs. An inexpensive HR outsourcing firm can suddenly become quite costly if they create large custom training programs for every training module they conduct, rather than relying on standardized materials.

Bargain HR Outsourcing Companies with Discounted Prices

These firms are just a sampling of the many great inexpensive options that exist for bargain HR Outsourcing firms. When working with them, you can be assured of getting good value for your dollar.

Best Value Per Dollar Invested:

Our team reviewed 30 HR Outsourcing companies across the US and found two companies that really stood out offering the best service for your money. In this review we looked at employee payroll and tax filing solutions, risk management, as well as benefit and health administration. While we suggest getting at least 4 quotes to compare, here are 2 the best HR Outsourcing service companies you should consider in your search for a value based solution:

Find The Cheapest Human Resources Outsourcing CompanyOasis LogoOasis Outsourcing: Oasis is a large company that offers outsourcing specialized by industry. So, for example, if you work in the banking field, they have specialized HR professionals to assist with your human resource needs. Similarly, they offer services specialized for engineering firms, IT, and restaurants, among others.

Insperity LogoInsperity: Insperity specializes in working with small and mid-sized clients. They can work with clients with as few as 5 employees, allowing them to offer very affordable services to help small business owners run their operations smoothly.

Keep Your Staff Satisfied

Ultimately, a strong HR staff helps to keep your team operating as smoothly as possible. When things like benefits packages, payroll and training are all administered in a professional and accessible fashion, your team is going to be happy to be a part of your organization.

When business owners don’t take the time to focus on human resources, problems often arise which can cause dissent and distrust within an organization. Not having the resources to staff an internal HR department is certainly no excuse, as there are any number of inexpensive HR outsourcing firms available to help with all your HR needs.

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