A recent study by the National Association of Professional Employer Organizations (NAPEO) conducted in September 2018 study has found increased revenue growth, profitability and overall customer satisfaction with PEO services.
According to an article appearing on the Biz.com website, economists Laurie Bassi and Dan McMurrer of McBassi and Associates say that the trends show those businesses who utilize the services provided by PEO companies tend to have less employee turnover, grow faster and have shown a higher rate of business survival within their respective industries.
The report, “An Economic Analysis: The PEO Industry Footprint in 2018 put out by NAPEO indicates that some 175,000 businesses in the United States are partnered with one of the 907 PEO firms in the country. These companies are used by small and medium sized businesses to handle at least some of their operations which may include recruiting candidates for open positions, onboarding of candidates, as well as payroll and benefits administration. Collectively, PEO firms employ some 3.7 million WSE’s or worksite employees in the U.S. This is the same rate or a slightly higher number of workers than are currently employed through Apple, Amazon, IBM, Starbucks, FedEx, Wells Fargo, AT&T and Walmart’s US operations combined.
The report also states that the growth rate from 2008 to the present has gone from 4% at the beginning to between 8 and as high as 14% recent years. Industry experts project that this trend shows no sign of slowing and expect that growth