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What is HR Outsourcing, anyway?

For small and midsized businesses, administrative tasks can be a serious drain on time and resources. Human resource outsourcing can deliver a big advantage. You may be surprised to learn just how many tasks HR outsourcing can take off your plate.

You don't have to handle it all on your own

Taxes. Payroll. Changing legislation. Hiring. Benefits. Worker safety. Get these right, and business hums along smoothly. Get them wrong, and you could face costly penalties, or time-consuming litigation. Maybe you have an in-house HR team that’s struggling to keep up, or your company doesn’t yet have a dedicated HR leader. With ADP HR outsourcing, you and your team, gain a true partner to help you face HR challenges.

Our HR advisors do not push a one-size-fits-all solution. They are invested in your success and get to know your business personally. We provide robust guidance and intuitive technology, all personalized to meet the needs of your business and employees. The result? Better managed HR that drives efficiency, compliance and growth.

What is HR Outsourcing, anyway?

It's when an employer trusts an experienced and vetted partner like ADP to handle some or all of their HR functions.

ADP HR outsourcing acts as an extension of your team, connecting your business with dedicated, credentialed experts. HR advisors have a wealth of knowledge and can help with a variety of functions. Our advisors have seen and done it all, from tactical solutions like payroll and benefits to more strategic planning around growth, turnover, or diversity programs.

ADP offers two types of HR Outsourcing to match the needs of small and midsized businesses:

ADP TotalSource®

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ADP TotalSource, our PEO solution, is an all-in-one partner to help manage your HR, benefits, payroll, and risk and compliance. Backed by dedicated support and advanced technology, this co-employment solution can help you save time and protect your business so you can move forward with confidence.

ADP® Comprehensive Services

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ADP Comprehensive Services offers the flexibility for you to choose one, some, or all areas across HR, talent, benefits administration, and payroll. Backed by award-winning technology and dedicated specialists, we work with your HR team to deliver best practices and support.

Why do companies outsource HR with ADP?

Businesses contract third parties all the time and they may not think of that as traditional outsourcing. Yet, hiring an accountant for bookkeeping, securing a lawyer for legal advice, or working with a marketing agency for branding are all technically outsourcing.

With ADP HR outsourcing, you get an always-on ally. You're not charged by the hour. You're not charged by project. You get an all-inclusive partner that helps you drive efficiencies in the administrative aspects of HR, payroll and benefits.

HR veterans with deep expertise

Beyond that, you'll be equipped with a go-to expert for all things related to employment: regulations, pay and payroll tax, benefits, worker safety, diversity and inclusion, hiring, turnover, expansion, employee relations, policies and so much more.

Compared with the additional costs of hiring more staff, outsourcing HR can be cost-effective and improve profitability.

Is a PEO HR Outsourcing?

Yes, a professional employer organization (PEO) partners with a business to share certain employer responsibilities, also known as co-employment. This is a form of HR outsourcing. Working with a PEO is easier than ever — you get a one-stop-partner that can cover all of your HR needs.

Some examples of tasks a PEO would partner with a business to take on include:


Payroll Administration and Taxes

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Benefits Procurement and Administration

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Talent Management and Strategies

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Worker Safety

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Workers' Compensation and Claims

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Compliance and HR Administration

In today’s litigious environment, it’s important for companies to be protected, especially small businesses. With a co-employment agreement, risk is shared to help insulate your business and guide your response to employee relations issues.

As the largest PEO in the United States, ADP TotalSource offers unparalleled expertise in all areas of HR.

More on HR Outsourcing

ADP’s approach to HR Outsourcing

When you partner with ADP, you get so much more than a one-stop solution. You gain a dedicated advisor with deep industry knowledge who is invested in your success.