What’s the Real Cost of Being an Employer?

Most business owners underestimate how much it truly costs to employ someone.

Beyond salary, you’re also covering payroll taxes, workers’ compensation, benefits administration, HR support, compliance management, and payroll processing. When you add it all up, the per employee per month (PEPM) cost often ranges between $1,200 and $2,000+, depending on your industry and benefits package.

Now, compare that with the power of a Professional Employer Organization (PEO).

By consolidating these services, a PEO can reduce your total PEPM cost by 20–30%—and that’s just the beginning. You also gain access to higher-quality benefits, better compliance support, and dramatically fewer administrative headaches.

But the biggest value? Strategic reinvestment.

A PEO doesn’t just save you money—it helps you redirect existing spend into areas that move the needle:

1. Stronger recruiting and retention with Fortune 500-level benefits
2. Reduced legal exposure through built-in compliance expertise
3. Streamlined processes with unified payroll and HR systems
4. More time and focus for leadership to invest in growth and culture

And the data backs it up:

1. PEO-supported businesses are 50% less likely to go out of business
2. Experience 10–14% lower turnover
3. Grow 7–9% faster than peers

(Source: NAPEO)

In today’s competitive, talent-driven market, how you manage workforce costs can determine whether you scale—or stall. With a PEO, it’s not just about cutting costs. It’s about spending smarter and growing stronger.

Have you looked at where your people dollars are really going?