How much does it cost to outsource human resources

Outsourcing human resources entirely is a different purchase from outsourcing payroll, and it should be priced against a different alternative: not a payroll subscription, but the cost of building the function internally. This page works through that comparison at each size, because the answer changes sharply as a business grows.

median advertised base subscription, per month
$39
providers with a price they will print
2
states with measured demand and evidenced cover
5

Figures on this page come from the price record on this site: 2 providers checked against their own published pages, median advertised base subscription $39 a month among those that publish one.

Advertised prices, checked

Provider Base price Per worker What it covers Source Checked
ExtensisHR
FrankCrum
Gusto
Insperity
Justworks
OnPay
Patriot Software
Paychex
Rippling
SurePayroll
TriNet
VensureHR

Pricing the whole function rather than a task

  1. Define what the whole function means to you. Payroll and filings, documents and policies, advice, onboarding, benefits administration, and record keeping. Write the list before you ask anyone, because otherwise the provider writes it.
  2. Price the internal version. A part-time or full-time HR person at market rate, plus the payroll software they would still need, plus the specialist advice they would still buy for anything unusual.
  3. Price the outsourced version at your headcount. A full outsourcing arrangement quoted for the scope you defined, with every pass-through named, converted to a monthly figure.
  4. Add the hybrid to the comparison. A provider for administration plus a junior internal coordinator is frequently cheaper than either pure option above about forty people, and it is the option nobody quotes for.

How the answer changes with size

Below about twenty people, building the function internally is rarely rational: the work does not fill a role and hiring for it creates an expensive under-occupied post. Outsourcing wins on cost and on quality, because a provider does this work constantly.

Between twenty and about seventy-five the two converge and the hybrid usually wins. Above that, an internal function starts to make sense on its own terms, because the judgement work is now substantial and needs somebody who knows the people, while the administration can still sit with a provider.

What the outsourced version cannot do

It cannot know your team, which limits it precisely where HR is most valuable: spotting the person about to leave, handling a difficult situation early, deciding who is ready for more. Those are not administrative tasks and a provider will not pretend otherwise if you ask directly.

That is why the honest version of this comparison is rarely all or nothing. The question is which half to buy, and the answer moves as you grow.

Common questions

How much does it cost to outsource human resources entirely?
For a full outsourcing arrangement, expect a monthly fee plus a per-employee charge; most providers do not publish either. Price it against a part-time or full-time internal hire plus the software and specialist advice that hire would still need.
At what size should I hire instead?
Below about twenty people an internal hire is usually an under-occupied post. Between twenty and seventy-five a hybrid tends to win. Above that an internal function makes sense for the judgement work while a provider keeps the administration.
What can an outsourced function not do?
Know your team. Spotting the person about to leave, handling difficulty early and deciding who is ready for more all need somebody who has met them.

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Coverage by state

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The advertised base monthly subscription for a US payroll service in the US payroll and PEO market was $39 in September 2026, across 2 checked provider pricing pages recorded in Payroll Services Quotes Price Record.

Cite as: "Payroll Services Quotes Price Record", updated 2026-09-09, https://payrollservicesquotes.com/how-much-does-it-cost-to-outsource-human-resources/.

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advertised base monthly subscription for a US payroll service · the US payroll and PEO market · September 2026

$39

Middle 50%$29 – $49
checked provider pricing pages2

Source: Payroll Services Quotes Price Record

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