Small to medium-sized businesses know that growth is in the future, and while adding positions and departments can feel like a step in the right direction, the truth is that hiring unnecessary individuals for positions that you don’t need could cost you more in the long run. You may be wondering what we mean here, and if you’re just starting to learn about PEO services, then you’ll see that for the most part, we are talking about your HR administrative services.

These positions are definitely a must, but they don’t have to be in-house. Because you’re going to be using a majority of your budget to afford having the necessary positions to ensure that your product or service is produced at the rate that you need it, having these types of positions is something that would be best to avoid at all costs. In the case that you are not entirely convinced that a PEO service would save you money, then you’ll be surprised to know what the breakdown of your employees is really costing you. Seeing as how we provide the same administrative support that works with these numbers, we have a very straightforward glimpse just to give you an idea.

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Salary or Hourly Wage

Every position that is created is going to need pay. Whether it be hourly or salary, you can guarantee that you will be paying someone to work this position for at least eight hours a day, five days a week. Once you multiply that times the entire span of a year, you wind up with a pretty good chunk of money. Depending on what you are paying your employee, this could range anywhere from $20,000 to $70,000+ a year. If this is a position that you could be outsourcing, you might find that you’re already saving money by doing so, just by comparing it to what the salary of an administrative position would be.



The benefits that your employee will get will include social security, health insurance and any other benefits that you provide them with. Depending on the size of your business, the amount that you pay for health insurance will vary. If you have a larger business, you will be able to pay less than smaller businesses. And unfortunately, if you are a start-up business or a business with 20 or fewer employees, you will have to pay a pretty hefty amount. This could range anywhere from a low of $3000 to $8000 per employee a year. This will all depend on what types of benefits you are providing of course.

Workman’s Compensation

While this isn’t a guaranteed issue, this is one that you do need to be prepared to handle. As a business owner, you need to protect more than just your employees, you need to protect yourself. Being able to have some sort of cushion in your budget should allow for security in the case that one of your employees gets injured and requires your financial assistance with their medical bills.

In the end, an employee to work on your HR department will wind up costing you anywhere from $30,000 to $100,000+ a year. This can be eliminated by simply working with a PEO company like The Medical Link. If you’re interested in more information on how we can help you, reach out to us and we can provide you with a more in-depth glance of how our services can benefit your business.