The economy has been on the upswing lately. Employment figures are up and organizations are fiercely competing to hire top talent. Even with all of that good news in the work sector, a recent article appearing on the Benefits Pro website, the National Association of Professional Employer Organizations (NAPEO) indicates that PEO’s are experiencing growth that is 14 times the growth of the U.S. economy.
Some 307 million worksite employees (WSE’s) within PEO’s account for $176 billion in annual revenue. In their most recent report, NAPEO estimates that the 907 PEO’s in the US are showing employment figures that are greater than the combined number of workers hired for Amazon, Google, Apple, IBM, FedEx, Starbucks, AT&T, Wells Fargo, and Walmart’s U.S. operations combined.
The reason for such exponential growth in this industry that services mostly small and medium-sized businesses are that PEO’s can offer payroll services, employee benefits, HR worker’s compensation, regulatory compliance assistance, and risk management that they might not otherwise be able to have on their own. A PEO can offer clients one-stop shopping and an opportunity to help their clients toward greater profitability because much of the employee specific tasks are managed by the PEO.
Figures also indicate that companies that utilize the services of a PEO report greater productivity and greater employee satisfaction. They have lower turnover rates and are able to stay in business longer than those companies that may keep the services that a PEO offers in-house.