HRO meaning: what human resources outsourcing covers

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

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HRO stands for human resources outsourcing: hiring an outside provider to run some or all of your HR work, such as payroll, benefits administration, compliance and hiring. The main forms are a PEO, an ASO, an employer of record and payroll software with HR help. Only a certified PEO takes on federal employment tax liability for the wages it pays (26 USC 3511).

HRO (human resources outsourcing): contracting an outside provider to perform HR functions such as payroll, benefits administration, compliance and recruiting for your business.

See Justworks pricing on Justworks’s site

Types of HRO and who stays the employer

HR outsourcing models
ModelWho is the employerPublished price
PEOShared with you (co-employment)$79 to $125 per employee a month (Justworks, Remote, Deel)
ASOYouQuote only in our research
Employer of recordProvider, in the worker's country$99 to $699 per employee a month
Payroll software with HR toolsYouGusto Premium $180 + $22 per person
RPO (recruiting only)YouNot in our research

Sources: Justworks, Remote, Deel, Gusto, Native Teams and Oyster pricing pages, checked Oct 16 and 18, 2026.

Details on each: ASO meaning, certified PEO, RPO and the full HR outsourcing guide.

Example: HRO fees for 10 employees

Monthly fee for 10 employees earning $60,000 each
OptionPer month
OnPay with Bundled HR ($49 + $6, plus $71 + $1 per worker)$190
Gusto Premium ($180 + $22 per person)$400
Justworks PEO Basic ($79 per employee)$790
Justworks PEO Plus ($124 per employee)$1,240
Deel US PEO ($125 per employee)$1,250
Percent-of-payroll PEO, 2% to 12% of $600,000$1,000 to $6,000

Sources: vendor pricing pages; ADP "What is the cost of a PEO" (updated Jul 14, 2026) for the 2% to 12% range. Checked Oct 16, 2026. Fees only: taxes, health premiums and workers' comp are extra.

Insurance benefits (life, health and disability) cost private employers with 1 to 49 workers $2.35 per hour worked (BLS, June 2026), about $407 a month on a 2,080-hour year (our calculation), more than any per-employee fee above. Totals with premiums are in our PEO cost breakdown.

HRO vs BPO and choosing a provider

HRO is the HR slice of business process outsourcing (BPO); payroll outsourcing is a slice of HRO. Among PEOs, our scores put Justworks first (67), then TriNet (50), ADP TotalSource (44) and Engage PEO (41); Paychex PEO scores 34 and Insperity 33. Scores weigh price transparency, contract terms and documented complaints. See the full PEO ranking.

Before you sign, get the renewal cap, exit fees and post-exit access to W-2s and payroll records in writing. Deel's 2026 PEO promotion, for example, requires a two-year term with full list price owed on early exit.

Frequently asked questions

What does HRO stand for?
HRO stands for human resources outsourcing: paying an outside provider to handle HR work such as payroll, benefits, compliance or recruiting.
What are HRO services?
Common HRO services are payroll and tax filing, benefits administration, workers' comp administration, HR compliance and handbooks, and recruiting. A PEO bundles most of these; an ASO or payroll provider covers fewer.
What is the difference between HRO and BPO?
BPO (business process outsourcing) covers any business function, from customer support to accounting. HRO is the part of BPO that handles HR work.
How much does HR outsourcing cost?
PEOs with published prices charge $79 to $125 per employee a month (Justworks, Remote, Deel; checked October 16, 2026). ADP puts the industry range at 2% to 12% of payroll or about $40 to $160 per employee a month. Payroll software with HR tools costs $190 to $400 a month for 10 people.
Is a PEO the same as an HRO?
A PEO is one kind of HRO. It goes further than most by becoming your co-employer, paying staff under its tax ID and offering its own benefit plans.
Sources (13)
  1. Justworks: Justworks pricing (checked Oct 16, 2026)
  2. Remote: Remote pricing (checked Oct 16, 2026)
  3. Deel: Deel pricing (checked Oct 16, 2026)
  4. Gusto: Gusto pricing (checked Oct 16, 2026)
  5. OnPay: OnPay pricing (checked Oct 16, 2026)
  6. ADP: PEO: what is the cost of a PEO? (updated Jul 14, 2026; checked Oct 16, 2026)
  7. Pebl: Pebl EOR pricing (checked Oct 16, 2026)
  8. Oyster: Oyster pricing (checked Oct 16, 2026)
  9. IRS: Certified professional employer organization (page last reviewed Jul 15, 2026; checked Oct 16, 2026)
  10. Cornell LII (statute text): 26 USC 3511 (checked Oct 16, 2026)
  11. Payoneer Workforce Management (Skuad): Pricing (checked Oct 16, 2026)
  12. U.S. Bureau of Labor Statistics: Employer Costs for Employee Compensation, June 2026, Table 6 (establishment size) (released Sep 9, 2026; checked Oct 18, 2026)
  13. Native Teams: Pricing (checked Oct 18, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.