The offerings for HR solutions from a human resources outsourcing company (HRO) are so varied that it's often difficult to determine the individual costs. In general, you pay either a fixed dollar amount per employee each month, or a percentage of their individual monthly salaries.

With the fixed fee structure, HR solutions will cost $20 to $200 per employee per month. The exact pricing varies on the functions you need from the HRO and the size of your organization. You may receive a volume discount on the per employee rate as the number of employees increases. If you're charged a percentage of individual employee salary for your HR solutions, expect to pay an HRO about 2% to 10% of each employee's annual salary.

Some HRO providers offer specific human resources management solutions on an a la carte basis. You can expect to pay a few thousand dollars for developing and placing recruitment advertisements. An audit of your current HR solutions, such as company policies and employee handbooks, can cost $200 to $500. Background checks, drug screenings, and psychological evaluations for potential employees will run $25 to $50 per person.

HR solutions contracts
The typical length of a contract for HR solutions is one year, but most contracts have a 60-day "out clause". If you don't like the work an HRO provider is doing during the first 60 days, you can cancel the contract without penalty.

Also, make sure you factor employee raises when finalizing your contract. Since many HRO providers take a percentage of an employee's salary, they may receive increased fees when that employee's compensation goes up. If you hire an HRO provider, make sure the percentage is based on the employee's compensation at the time you signed the contract.

Now that you have an idea of what human resources management solutions will cost, start your search with a free BuyerZone HR Outsourcing request for quotes. You'll be in touch with as many as six different HRO solutions providers who will provide the services to manage aspects of your company benefits.