If you’ve found yourself wondering whether your PEO costs are too high, you’re not alone. For many growing companies, the once-attractive promise of bundled HR services through a Professional Employer Organization (PEO) starts to lose its shine as your business scales. What was once a convenient solution can become a costly, inflexible arrangement that no longer fits your evolving needs.
At EmphasisHR, we specialize in helping growth-oriented companies make the shift away from PEOs, without losing HR support. In fact, we work exclusively with the Paylocity platform, leveraging its robust capabilities to provide flexible, cost-efficient HR solutions that grow with your business.
Let’s explore the real cost of staying with a PEO, the hidden fees many businesses don’t see coming, and how transitioning to EmphasisHR can help you save.
Why Are PEO Costs So High?
PEOs often charge businesses using a percentage of payroll model, typically ranging from 3% to 12% of total wages. On the surface, this seems simple and predictable. But as your headcount grows and salaries increase, so does your PEO bill. This model means you’re not paying for services rendered, you’re paying a tax on growth.
Here’s where the real costs start to stack up:
- Bundled services you don’t use
PEOs offer an “all-in-one” approach, but many companies don’t use all the features they’re paying for. Whether it’s redundant benefits administration, underutilized compliance tools, or outdated training programs, you’re often stuck paying for unnecessary services. - Lack of transparency
It’s common for businesses to not fully understand what they’re being charged for. Hidden administrative fees, markups on health insurance, and indirect costs like limited control over hiring policies or payroll timing add up quickly. - Limited customization
As your business grows, so do your needs. But PEOs aren’t built for flexibility. Whether it’s tailoring benefits or integrating new tech systems, a one-size-fits-all approach can restrict your ability to scale effectively.
The Paylocity Advantage with EmphasisHR
EmphasisHR is not a PEO. We are a strategic HR outsourcing partner that works exclusively with businesses already on, or moving to, the Paylocity platform.
Why Paylocity? Because it’s one of the most powerful, user-friendly, and scalable HRIS systems on the market, and we know how to maximize it.
When you partner with EmphasisHR, you get:
- Full-service HR support (payroll, compliance, benefits, talent management)
- Customized solutions tailored to your company’s growth stage and industry
- Complete transparency in pricing, no hidden fees or percentage-based costs
- Paylocity platform optimization from experts who live and breathe the system
By moving away from the percentage-based PEO model, our clients often reduce HR costs by 20-40%, depending on their size and previous provider.
Cost Comparison: PEO vs EmphasisHR
| Cost Category | PEO (Avg.) | EmphasisHR + Paylocity |
|---|---|---|
| Pricing Model | % of payroll (3–12%) | Flat, transparent monthly fee |
| Health Insurance Markup | Common (5–15% markup) | None |
| Service Flexibility | Limited | High (customizable services) |
| HRIS Technology | Proprietary (often outdated) | Paylocity (modern, integrated) |
| Transparency & Reporting | Low | High |
Is It Time to Make the Switch?
Here’s how to know if your PEO costs are too high:
- You’ve grown beyond 30 employees
- Your monthly PEO bill has crept up but your services haven’t changed
- You feel locked into a rigid system
- You want more visibility and control over HR functions
EmphasisHR exists to support companies just like yours. Our clients leave their PEO, leverage Paylocity, and gain back control, savings, and peace of mind.
We say: “Let us do the work.”
Schedule a Free Consultation Today
Is your PEO holding your business back, and costing you more than it should? Let’s talk.
Schedule a free consultation with an EmphasisHR Paylocity expert and find out how much you could save by making the switch.
