Compare PEO costs vs managing HR in-house for your staffing & temp agencies business. Calculate real ROI including hidden savings from reduced turnover, compliance protection, and group purchasing power.
Staffing & Temp Agencies Industry Benchmarks
Avg Salary
$42,000/yr
Avg WC Rate
$4.5/100 payroll
Avg Turnover
80%
Typical PEO Fee
$160 PEPM
HR Complexity
Very High
Compliance Risk
High
1
Your Business
Tell us about your staffing & temp agencies business so we can estimate PEO costs using industry-specific benchmarks.
Average salary: $42,000/year
2
Current HR Costs
Enter your current HR-related costs. We'll compare your total in-house spend to what a PEO arrangement would cost for a staffing & temp agencies business.
10h
3
PEO Model
Configure the PEO arrangement to see how it compares to your current in-house costs.
$160
Built on Real Industry Data -- Not Guesswork
This tool uses verified benchmarks from leading industry sources, calibrated to 2026 market conditions.
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NAPEO Industry Data
National Association of Professional Employer Organizations -- the authoritative source for PEO cost and performance benchmarks
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BLS Employment Data
Bureau of Labor Statistics salary, turnover, and HR staffing benchmarks across 20+ industry sectors
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SHRM HR Benchmarks
Society for Human Resource Management cost-per-hire, HR ratios, and compliance cost surveys
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NCCI Workers' Comp
National Council on Compensation Insurance class codes, rate data, and experience modification factors
Calculation Methodology
Current Cost Calculation: We sum all direct HR costs (staff compensation, payroll processing, workers' comp, health benefits, compliance, EPLI, recruiting) plus the opportunity cost of owner time spent on HR activities (valued at $75/hour).
PEO Cost Calculation: PEO admin fee x employees x 12 months, plus adjusted health benefits cost (reduced by 13% through PEO group purchasing), plus adjusted workers' comp (reduced by 28% through PEO pooled programs).
Hidden Savings: We calculate additional PEO value from: (1) Turnover reduction -- PEO clients average 10-14% lower turnover (NAPEO data), valued at the industry-specific replacement cost; (2) Compliance penalty avoidance -- estimated at $3,500/year average for the staffing & temp agencies industry; (3) EPLI coverage value -- typically $3,000-$8,000/year when purchased separately.
Limitations: Actual PEO costs vary by provider, location, and specific services included. This calculator provides estimates based on industry averages. Request actual PEO quotes for accurate pricing.
Want Actual PEO Quotes for Your Staffing & Temp Agencies Business?
Get 3-5 competitive PEO proposals tailored to your staffing & temp agencies company -- reviewed by a PEO specialist.
Why Staffing & Temp Agencies Businesses Use PEOs
Staffing agencies face the highest HR complexity of any industry due to the volume of employee onboarding/offboarding, multi-state operations, and joint employer liability concerns. PEOs provide critical infrastructure to manage this complexity at scale.
Workers' compensation is a major cost driver at $4.50 per $100 of payroll, amplified by the diverse job assignments and worksite risks that temporary employees face. PEOs reduce WC costs by 28% through pooled programs and provide worksite safety assessments.
Joint employer liability is a constant concern -- staffing agencies share employment responsibilities with client companies, creating complex risk allocation. PEOs add another layer to this relationship but can actually reduce risk through professional HR infrastructure and EPLI coverage.
ACA compliance is exceptionally complex for staffing agencies due to the variable-hour nature of temporary assignments. Tracking measurement periods, determining eligibility, and managing offers of coverage across thousands of temporary employees requires sophisticated systems that PEOs provide.
Staffing firms manage large, fluid workforces and the co-employment and compliance questions that come with them. A PEO can take on payroll, benefits, workers compensation, and HR compliance, though staffing firms should weigh how PEO co-employment interacts with their own client co-employment arrangements.
PEOs price as a percentage of payroll or a flat per-employee-per-month fee. This calculator estimates the cost against your headcount and payroll so you can compare it to handling these functions across a constantly changing roster in-house.
