As we mentioned in an earlier blog post, the growth of the PEO industry is significantly larger than that of the rest of the U.S. economy. An article at the 2 Staffing.com website affirms the figures from a study released by the National Association of Professional Employer Organizations (NAPEO) at its annual conference in Phoenix. The study shows that among the PEO organizations around the country gained some 174,545 new clients in 2017.
So, what does this mean for the small and medium-sized businesses that are the target market for PEO firms? The report shows that 12.1 percent of all employment by private sector employers that have 10 to 99 employees is now done through PEO’s. This definitely gives PEO’s and the people they employ plenty to celebrate.
According to NAPEO President and CEO Pat Cleary, the numbers from the study affirm that continued outlook is very positive. “Given the significant value proposition we offer to small and mid-size businesses: Faster growth, higher profitability, and happier employees.”
The NAPEO studies affirm that the 907 PEO firms in the U.S. currently account for 2.4% of employment within the civilian or domestic sector in the U.S. between 2008 and 2017. The overall growth for PEO’s during that period was at the astounding compounded annual rate of 8.3%.