The Real Cost of DIY HR for US Startups And Why PEO Wins
Extend IQ Global: The Hidden Cost of DIY HR for Growing US Startups in 2026
12/16/20251 min read
Many founders believe keeping HR in-house saves money. Reality: DIY HR often costs far more than expected in dollars, time, and risk.
ExtendIQ Global helps startups scale compliantly with flexible PEO and HR Outsourcing solutions.
True Costs of DIY HR
Founder/HR manager time: $80,000–$150,000 annual opportunity cost
Software stack: Payroll + benefits admin + ATS = $20,000–$50,000/year
Compliance errors: Average penalty $14,000 per incident
Poor benefits = higher turnover (costing 1.5–2x salary per departure)
PEO ROI for Startups Typical first-year savings: $40,000–$100,000 through better benefits rates, eliminated software fees, and reduced risk.
When to Make the Switch:
10+ employees
Multi-state operations
Raising Series A/B (investors love clean HR)
Founders who partner early with ExtendIQ Global focus on product and growth — not paperwork. Get your free HR cost analysis at ExtendIQGlobal.com.
