Pricing Models
PEO (Co-Employment)
You co-employ workers through a PEO who handles payroll, benefits, compliance, and HR admin. Costs 2–10% of gross payroll.
Best for: Small companies wanting Fortune-500-level benefits and full HR compliance without an in-house HR team.
HRO (HR Outsourcing)
Outsource specific HR functions (payroll, benefits admin, compliance) without co-employment. More flexible than PEO.
Best for: Mid-size companies wanting to outsource HR operations while retaining employer-of-record status.
Fractional HR / vHR
Part-time HR Director or CHRO engaged at $2,000–$6,000/month. Handles strategy, compliance, and people issues fractionally.
Best for: Growing companies (30–150 employees) needing senior HR leadership without the $120,000+/year salary.
HR Project Consulting
Fixed-fee HR projects: employee handbook creation ($2,500–$5,000), compensation benchmarking, culture assessments.
Best for: One-time HR deliverables that don't require ongoing support.
Service Tiers
Basic HR Support
$1,500–$4,000/mo
HR administration support for small teams: employee documentation, policy templates, basic compliance guidance.
- Employee handbook creation/updates
- Onboarding/offboarding processes
- HR policy development
- Basic compliance guidance
- HRIS setup and management
Full HR Management
$4,000–$10,000/mo
Comprehensive HR function management: recruiting support, performance management, compensation, and benefits admin.
- Full-cycle recruiting support
- Performance management framework
- Compensation benchmarking
- Benefits administration
- HR metrics and reporting dashboard
Strategic HR
$10,000–$20,000+/mo
Senior HR leadership with organizational design, culture strategy, executive coaching, and HRIS implementation.
- Fractional CHRO leadership
- Organizational design and restructuring
- Culture strategy and engagement programs
- Executive coaching and leadership development
- HRIS selection and implementation oversight
What Drives the Cost?
Employee Count
HR complexity and administrative work scale directly with headcount. PEO services price per employee; HRO typically prices per employee or on a flat retainer.
Compliance Complexity
Multi-state employment, international employees, or highly regulated industries (healthcare, finance) add significant compliance complexity and cost.
Benefits Administration
Comprehensive benefits (health, dental, vision, 401k) administration adds $50–$150/employee/month to HR outsourcing costs.
Recruiting Support
Active hiring programs requiring recruiter support add significantly to HR costs — often priced separately from base HR services.
HRIS Platform
Modern HRIS platforms (Workday, BambooHR, Rippling) cost $6–$20/employee/month but dramatically reduce HR admin labor.
Employee Relations
Complex employee relations situations (PIPs, terminations, investigations) require senior HR expertise at $150–$300/hr.
Rates by Location
| Region | Rate |
|---|---|
| 🇺🇸United States | $100–$250/hr |
| 🇵🇭Philippines | $15–$35/hr |
| 🇮🇳India | $12–$30/hr |
| 🇵🇱Eastern Europe | $25–$60/hr |
| 🇨🇦Canada | $75–$175/hr |
Pricing FAQ
When should a startup hire their first in-house HR person?
The typical trigger is 25–40 employees. Below that, a fractional HR consultant ($2,000–$4,000/month) or PEO service provides better coverage at lower cost than a full-time HR generalist ($60,000–$85,000/year salary + benefits). Above 40 employees, the volume of day-to-day HR work justifies a dedicated person.
What is a PEO and is it right for my company?
A PEO (Professional Employer Organization) co-employs your workers, handling payroll taxes, workers' comp, benefits, and compliance under their master policies. This gives small companies access to Fortune-500-caliber benefits at group rates. The main tradeoff: you share employer-of-record status and pay a per-employee fee (typically $100–$200/employee/month).
How do I handle HR compliance across multiple states?
Multi-state compliance requires tracking each state's minimum wage, leave laws, paid sick time requirements, final paycheck rules, and tax withholding. Using a PEO, EOR (Employer of Record) service, or HRIS with multi-state compliance features dramatically reduces this risk. Non-compliance penalties can exceed $10,000+ per violation.
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