CUSTOMER USE CASE

How a Large Construction Company Stopped Paying for Employees Who Had Already Left

Paylocity HR licenses at $30–35/month per user. Dozens of ghost accounts.
One audit, $57,000+ recovered annually - offsetting 40% of the ObserveID platform cost from day one.

140+
ghost Paylocity licenses discovered on first audit
$57,400
recovered in annual SaaS spend
40%
of ObserveID cost offset by savings alone
Day 1
time to first cost recovery
THE SITUATION

A 1,200 person construction company, high turnover and no license governance.

This large construction company relied on Paylocity for HR management and payroll across a workforce of over 1,200 employees including a significant number of field workers, subcontractors, and project-based staff with high seasonal turnover. Paylocity licenses were provisioned on hire at $30–35 per user per month, but deprovisioning was entirely manual and consistently fell through the cracks during offboarding.

⚠️ When ObserveID ran its first entitlement audit, it discovered 140+ active Paylocity licenses assigned to former employees - many of whom had left the organization 6 to 18 months prior. The total monthly waste was $4,780/month. Annualized, that's $57,360 in SaaS spend serving no one - and no one in IT or Finance had any visibility into it.

THE COST REALITY

$57,000+ a year, billed, unused and unnoticed.

The math is straightforward - but the scale is what surprises most organizations.

PERIOD GHOST USERS LICENSE COST/USER TOTAL WASTE
Monthly (before ObserveID) 140 ghost users $34/user/mo $4,760/month
Quarterly 140 ghost users $34/user/mo $14,280/quarter
Annual 140 ghost users $34/user/mo $57,120/year
After ObserveID 0 ghost users Governed $0 waste - fully recovered
ROOT CAUSE

High turnover, manual offboarding is a billing leak that compounds every month.

👔

Employee or Contractor Joins

Paylocity license provisioned manually by HR ,recorded in a spreadsheet, no automated trigger.

🏃‍♂️

Project Ends or Employee Leaves

With high field-worker turnover, offboarding checklists focus on site access and payroll cutoff. SaaS applications like Paylocity are routinely missed or deprioritized.

💸

License Stays Active - Billing Continues

The account remains active and the invoice keeps coming. No alert is triggered and months pass by and sometimes over a year but no one notices.

🔍

ObserveID Entitlement Audit

ObserveID's discovery engine maps every active Paylocity license against live HR records. 140+ orphaned accounts flagged within hours of the first scan.

Automated Remediation - Ongoing Governance

Ghost licenses revoked immediately. Going forward, every offboarding event in the HR system triggers automatic Paylocity deprovisioning with no manual step.

BEFORE VS. AFTER OBSERVEID

The difference governance makes.

❌ BEFORE OBSERVEID
  • Manual offboarding - SaaS apps missed
  • No cross-system license visibility
  • 140+ ghost accounts billing monthly
  • $57K+ in annual wasted spend
  • Finance had no SaaS spend accuracy
  • IT reactive - discovered issues by accident
✅ AFTER OBSERVEID
  • Automated deprovisioning on every exit
  • Real-time entitlement visibility
  • Zero orphaned Paylocity licenses
  • $57K+ recovered in year one
  • Finance has accurate, real-time SaaS data
  • IT governance is proactive and policy-driven
THE BIGGER PICTURE

It's not just Paylocity. It's every SaaS application you manage.

The Paylocity discovery was the starting point - not the finish line. ObserveID's entitlement governance extends across your entire SaaS portfolio. Whether it is Google Workspace, Salesforce, ServiceNow, Workday, or any other application connected to your identity stack, ObserveID ensures that every license is governed, every entitlement is justified, and every exit triggers an automatic reclaim.

For this construction company, the Paylocity savings alone offset 40% of their annual ObserveID subscription cost - before accounting for savings across any other application in their environment. The platform paid for itself before the first quarter was out.

Do you have ghost licenses hiding in your SaaS stack?

Most organizations don't know until they look. ObserveID's entitlement audit gives you a complete picture of every active license across every application - and the governance engine to ensure it never happens again.

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