According to a new survey compiled by the National Association of Professional Employer Organizations (NAPEO), indicators show that industry executives are optimistic about the potential of strong growth in 2017. The survey shows that some 99 percent indicating they expect an increase in worksite employees this year, and 38 percent indicating that they expect a significant increase.
In a survey conducted in the quarter just following the November election of 2016, PEO revenues, gross profits, operating income, and average the number of worksite employees were shown to have increased. This is an increase over the figures for the same time quarter of 2015.
According to NAPEO President and CEO, Pat Cleary, “The results of this survey reinforce what we have thought all along: It’s a good time to be in the PEO industry.” He further indicated that small business owners are realizing the value provided in terms of Human Resource management through a PEO. “We expect that to strengthen with the IRS’s new PEO certification program and the ongoing improvement of the economy.” Cleary said.
The survey was taken by 71 PEO executives each having on average 20 worksite employees per client. The questions posed in the survey that were covered were topics such as:
- Revenue increases for 3rd quarter 2016 as compared to 3rd quarter of 2015.
- The wages for each worksite employee and the increases over those of the previous years.
- Any increases in the number of worksite employees for the year
- Gross profit for the 3rd quarter increased somewhat over the 2016 calendar year as opposed to the same period in 2015.
- Any increases in operating expenses.
- Any increases in the number of clients.
- Any changes in the number of workers’ compensation claims reported in 2016 as compared to 2015.
Each change after an election cycle can fill some with either a sense of apprehension or hope for new business growth. No matter what happens in Washington, it can affect your business in the way how things are organized are done within your organization.
At NetPEO, our network of companies can help your organization make the most of your current human resource talent and get you the right people you need today as well as help you in planning for the future. We offer Employee Leasing services as well as HR outsourcing. Contact us today and find out how we can help you and your company with guaranteed results.