First, most PEO providers do not offer transparent pricing. Pricing is subjective to your business and often negotiable.  Sure, pricing quotes made specifically for your business may give the illusion that you’ll get better value for money. But in reality, you might never know what the fair price is. That said, figuring out whether the PEO is overpriced or offers a fair deal is difficult.  Speaking of pricing, some PEOs offer their services in bundles, meaning that you may end up paying for services that you do not need. Second, working with a PEO requires you to sign a contract for a predetermined period. If you wish to exit the partnership mid-contract, you’ll be subject to termination fees.  Third, there’s control. Since you’ll have a co-employment relationship with your PEO, you’ll need to adhere to its guidelines and policies. This leads to restricted control over your HR activities and potentially dilutes your company culture.