Professional Employer Organizations — Average Employee Salary
The average employee in the professional employer organizations industry earns $72,075 per year ($34.65/hour), according to Bureau of Labor Statistics QCEW data.
What Do Professional Employer Organizations Workers Earn?
At $72,075/year (equivalent to $34.65/hour for a full-time worker), professional employer organizations wages are near the national average of ~$65,000.
The typical professional employer organizations business employs 21 people. These are larger operations where staffing represents a major cost center and management complexity.
Wages as a Percentage of Revenue
For the average professional employer organizations business generating $120.6M/year with 21 employees at $72,075 each, total payroll represents roughly 1.3% of revenue. Labor costs are relatively low compared to revenue — other costs (materials, equipment, overhead) dominate.
What This Means for Business Owners
If you're starting or running a professional employer organizationsbusiness, here's what the wage data means for your bottom line:
- Per-employee cost: Budget approximately $93,698/year per employee (salary + ~30% for benefits, taxes, and insurance).
- Typical team size: 21 employees = ~$1,513,575/year in base payroll.
- Hourly equivalent: $34.65/hour base — factor this into pricing and project estimates.
- Revenue needed: With average revenue of $120.6M/business, you need strong utilization rates to maintain healthy margins after payroll.
See how these wages compare to total revenue and profit margins.
View full Professional Employer Organizations revenue benchmarks →Frequently Asked Questions
- How much do professional employer organizations employees make?
- The average professional employer organizations employee earns $72,075 per year, which is equivalent to $34.65/hour for a full-time worker (2,080 hours/year). This is above the national average of approximately $65,000.
- How many people work in the professional employer organizations industry?
- The professional employer organizations industry employs 449,947 workers across 20,986 establishments in the United States. The average business in this industry has approximately 21 employees.
Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW 2023).