Compare equivalent responsibilities
A provider proposal and an HR job description rarely cover exactly the same work. List onboarding, payroll, benefits, records, manager support, compliance processes and technology before comparing cost. Include implementation and optional fees on the provider side and recruiting, benefits, software and coverage gaps on the internal side.
Consider a blended model
Many companies keep an internal leader who understands the workforce while outsourcing repeatable administration or specialist work. That can preserve culture and decision authority without requiring one employee to master every HR discipline. The right choice depends on workload, risk tolerance and how much direct internal presence managers need.
For related guidance, read HR outsourcing costs and hiring an in-house HR manager.