Over the past few years, small businesses have been making a comeback that has initiated an increased need for Professional Employment Organizations (PEOs). As a result, the PEO industry has grown.
PEO Industry Overview
Precise numbers are difficult to calculate because the U.S. Bureau of Labor Statistics and Hoovers provide conflicting definitions of what constitutes a PEO. However, the National Association of Professional Organizations (NAPEO) estimates the current PEO industry size to be between $136 and $156 billion in gross revenues. Additionally, NAPEO approximates that the PEO industry serves 156,000 to 180,000 companies, which adds up to about 3.4 million workers that gain benefits from a PEO.
These numbers indicate that the PEO industry has grown significantly since the concept was introduced about 30 years ago. NAPEO found that in each of the last 30 years, the industry has added about 100,000 work site employees or in other words 6,000 new clients every year.
PEOs provide human resource (HR) services typically for small to mid-size organizations. StaffScapes, a reputable PEO company in the Denver area provides many essential HR solutions for companies, including:
- Employee Recruitment and Retention Support
- Benefits Plan Design, Administration and ACA Compliance
- Employer Risk Management
For a detailed list of the specific HR services that StaffScapes can provide, click here.
What’s in it for you?
Giving companies the ability to outsource their HR duties will free up business owners so they can focus on their core operations, strategies, and revenue-generating activities.
Also, high growth for the industry can translate into high growth for clients. As evident, NAPEO reported that since 2010, employment growth among PEO clients has been 9% higher than small businesses that take on their HR related tasks. Even more impressive, businesses that use a PEO employ a 4% higher growth rate than the overall U.S. economy.
In essence, by partnering with a PEO, you will improve your work environment by making it more efficient, compliant, and safer.
Want to partner with a PEO today? Connect with StaffScapes, to get started.