HR outsourcing prices in 2022

HR outsourcing prices in 2022

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Whether a large or small business highly evaluates HR outsourcing services. They aid businesses in organizing and streamlining day-to-day operations.
Moreover, it also helps budding companies save costs, and don’t overspend the budget to set up a dedicated HR department.

According to a study from Deloitte, up to 64% of companies consider cost savings as the main factor motivating them to outsource. Within the following article, we will bring forth a detailing HR outsourcing prices.

HR outsourcing prices

If your company considers outsourcing, the following rates will give you an overview guide costs. However, it’s just a reference. The actual prices may vary depending on your needs and services.

The price paid for HR outsourcing services can be calculated in two ways. Either as a fixed monthly fee (per employee/month), or as a percentage of each employee’s monthly salary.

  • Applying the first method, you will expect to pay from $20 to $200 per employee/month.
  • Using the second method, you will need to pay between 2% and 10% of each employee’s annual salary.

In addition, you can also choose HRO services you want, such as policy and manual auditing (about $250 to $500) and employee screenings (about $25 to $50 per person).

HR outsourcing prices in 2022

Examples of HR outsourcing costs

Small businesses

  • A Philadelphia nonprofit spent about $3,500 on HR services such as compliance, payroll, and HR management.
  • An IT company in Colorado paid about $100/month/person to manage payroll and benefits administration.
  • A financial services company in New York, also paid about $200 a month for payroll, risk management, and HR technology service.

Medium and large businesses

  • A manufacturer in Minnesota spent about $600/year/employee for HR management, technology, and compliance services.
  • An Arizona design agency spent about $60/month/employee for complete HR outsourcing.
  • A healthcare company in St. Louis spent about $80,000 in total outsourcing.

HR outsourcing prices in 2022

Why should you hire HR outsourcing services?

Shifting human resources processes to an HR outsourcing company can have numerous advantages, including:

Save costs

Outsourcing HRs services can reduce the financial burden. By outsourcing, you will cut down extra costs such as workers’ compensation costs, health insurance costs, legal fees, etc.

Have time for other business focuses

One of the second main reasons why businesses prefer to outsource is that they can focus their efforts and time more on their business targets. Business owners will have time for essential activities instead of struggling with monotonous, repetitive administrative tasks. It can be drawing business strategy development, enhancing revenue, etc.

Access to experts

Some aspects of HR functions require a high level of expertise, primarily legal and technical matters. It can be difficult for some businesses with inadequately trained staff.
However, experienced outsourcing services can rest assured that businesses remain on the cutting edge of human resource solutions.

The reference cost of HR outsourcing services is a detailing guide to determine how much businesses may pay.

At Innovature BPO, we are currently providing comprehensive HR outsourcing services with dedicated professionals at an affordable cost.


(2020). Up to 64% of companies consider cost savings as the main factor motivating them to outsource. Deloitte. https://www2.deloitte.com/content/dam/Deloitte/se/Documents/technology/gx-2020-global-outsourcing-survey-how-much-disruption.pdf

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