Blog · HR Outsourcing · Basics

What Does HR Outsourcing Include?

By Anthony Moretti, VP of SalesPublished: July 12, 2026
An HR team reviewing employee documents in a bright modern office

HR outsourcing means handing the day-to-day work of running HR, not just the paperwork, to a team of certified professionals. It covers the handbook, the compliance calendar, the leave requests, the onboarding paperwork, and the manager questions that used to land on whoever in the office happened to know the most about HR. Here is what is actually included, and what is not.

What's Covered

What's Not Included

HR outsourcing is not payroll processing. BEG runs those as separate services on the same isolved platform, so a company can pair HR outsourcing with managed payroll or use either one alone. It is also not benefits brokerage: BEG managed benefits handles enrollment and plan administration, while the client keeps their existing broker for advice and plan placement.

Most importantly, HR outsourcing is not a PEO. There is no co-employment and no change to who is the employer of record. A PEO takes over as a co-employer and often requires the client to move onto the PEO's benefits and workers' comp policies. HR outsourcing leaves the client as the sole employer and works inside their existing structure. For a factual, primary-source look at how PEOs actually operate, see the National Association of Professional Employer Organizations.

FunctionIncluded in HR Outsourcing
Employee handbookYes, built and maintained
Compliance monitoringYes
Leave administrationYes
New hire paperworkYes
Manager coachingYes
Recruiting and direct hire supportYes
Payroll processingSeparate service, same isolved platform
Benefits brokerageNo, client keeps their existing broker
Co-employmentNo, not a PEO

Why Companies Outsource This Instead of Hiring

An in-house HR manager typically runs $60,000 to $100,000 a year in salary alone, before benefits, before ramp time, and before the risk that one generalist cannot cover every compliance area equally well. HR outsourcing replaces that single hire with a full team of certified HR professionals, covering the handbook, the compliance calendar, and the hiring paperwork for a fraction of the cost of the in-house alternative.

This matters most for companies without a dedicated HR department, or with one person wearing every hat. The gap usually shows up during a real event, a leave request, an EEOC inquiry, or a state law change, and that is a costly moment to discover the coverage was thin. HR outsourcing, powered by isolved, closes that gap before it opens.

Reference points on federal requirements that any handbook or compliance program has to reflect are available directly from the U.S. Department of Labor, Wage and Hour Division.

Your HR Function, Fully Covered

Certified HR professionals handle the handbook, compliance, leave, and hiring paperwork for a fraction of a $60K-$100K in-house hire.

Frequently Asked Questions

What does HR outsourcing actually include?

Handbook build and maintenance, compliance monitoring, leave-of-absence administration, new hire paperwork, manager coaching, and recruiting or direct hire support, delivered by certified HR professionals. Powered by isolved.

Does HR outsourcing include payroll?

Not automatically. HR outsourcing and BEG managed payroll are separate services that run on the same isolved platform, so companies can pair them or use HR outsourcing on its own.

Is HR outsourcing the same as a PEO?

No. There is no co-employment and no employer-of-record change with HR outsourcing. Your company stays the employer; certified HR professionals support your team. For a factual explanation of how PEOs work, see the National Association of Professional Employer Organizations.

Does HR outsourcing include recruiting?

Yes, talent acquisition and direct hire support are part of the service. This is separate from BEG job placement, which is milestone-based recruiting for open roles.

What size company typically uses HR outsourcing?

Most clients are growing companies without a dedicated HR department, or with one generalist stretched across every compliance area. HR outsourcing gives them a full function instead of one person guessing.

Anthony Moretti, VP of Sales

Anthony leads HR outsourcing strategy at Business Executive Group, a national HR outsourcing firm serving employers across every state. BEG HR outsourcing is powered by isolved, with certified HR professionals handling compliance, handbooks, leave administration, and hiring paperwork.