One of the most common questions I get as an HR consultant is: “Is it time to leave our PEO?” The answer isn’t always simple. PEOs (Professional Employer Organizations) can be helpful in early stages, but as companies grow, the costs and limitations often outweigh the benefits. The real challenge is knowing when unbundling makes sense—and when it doesn’t.

The Project

We recently partnered with a consulting company that wanted to explore whether unbundling from their PEO was the right move. They suspected they were overspending but didn’t have full visibility into the true costs or the impact unbundling might have on headcount and feasibility.

Our Approach

The first step was to build a PEO unbundle roadmap—a structured process that would help leadership evaluate their options. Together, we tracked down every cost associated with their PEO arrangement, including administration fees, benefit markups, compliance support, and hidden charges that often go unnoticed.

Once we had the numbers, we compared them against what it would take to manage HR internally. This included calculating staffing needs, software costs, benefit carrier fees, and compliance responsibilities. By modeling both scenarios side by side, we could show the client not just what they were paying today, but what unbundling would look like in practice.

The Results

What the roadmap revealed was eye-opening. The client finally had clarity on their true costs and a clear picture of what it would take to transition away from their PEO. More importantly, they had a decision-making framework that allowed them to weigh financial savings against operational needs and employee impact.

In this case, unbundling wasn’t just about cutting costs—it was about understanding whether the business was ready to take on HR in a more independent and strategic way. Our roadmap gave them the information they needed to make that call with confidence.

Why It Matters

PEO unbundling is not a one-size-fits-all decision. Some companies are ready to move on, while others may find it’s better to stay with their PEO a bit longer. What matters most is having the data, the roadmap, and the guidance to choose wisely.

At HR Strategy Alliance, we help businesses navigate these pivotal decisions by breaking down the numbers, building the roadmap, and supporting the transition if it’s the right step. Whether you’re in Dallas, Houston, or anywhere in the U.S., we can help you understand your options and design an HR structure that supports your growth.