New Economic Analysis Shows PEO Job Growth 16 Times Higher Than Rest of US Economy Since 2013

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ALEXANDRIE, Virginia, May 13, 2021 / PRNewswire / – Job growth in the Professional Employers’ Organizations (PEO) sector has been 16 times the growth rate of the U.S. economy as a whole since 2013, and total employment represented by the PEO industry is the same as the combined number of employees for Walmart (US only), Amazon, Kroger and Home Depot, according to a new study released last week by the National Association of Professional Employer Organizations (NAPEO).

The study, carried out by renowned economists Laurie Bassi and Dan McMurrer by McBassi and Company, is the ninth in a series. Previous studies by Bassi and McMurrer have shown that companies with PEO agreements grow 7-9% faster, have 10-14% lower employee turnover rates, and have significantly higher company survival rates. higher than companies that do not use PEOs. Their other research has shown higher revenue growth, increased profitability, and greater employee satisfaction for companies that use a PEO.

The new report also provides definitive new measures of the current size, scope and footprint of the PEO industry, using an updated methodology. Data through the end of 2020 shows:

  • There are 487 PEOs in United States.
  • PEOs employ 4 million site workers (WSEs).
  • Annual salaries in the PEO industry are $ 216 billion.
  • 173,000 companies are associated with a PEO.

“The numbers in this study bolster the dynamism and growth of the PEO industry. More and more companies are realizing the true value proposition of using a PEO, especially during the pandemic, when PEOs have proven invaluable in helping their clients overcome the challenges of the PPP loan process, COVID legislation, remote working and return-to-office protocols, ”said NAPEO President and CEO Pat cleary.

PEOs provide HR, payroll, benefits, workers’ compensation and regulatory compliance support to small and medium-sized businesses. By providing these services, PEOs help businesses improve productivity, increase profitability, and focus on their core business. Through PEOs, employees of small businesses have access to employee benefits such as 401 (k) plans; health, dental, life and other insurance; care of dependents; and other benefits typically provided by large companies. A copy of the full study is available here.

About NAPEO
The National Association of Professional Employers’ Organizations (NAPEO) is the voice of the PEO industryMT. NAPEO’s 250 PEO members provide payroll, benefits, workers compensation, regulatory compliance assistance and other HR services to over 173,000 small and medium-sized businesses employing 4 million people . Our members represent over 90 percent of $ 254 billion In income. Another 250 companies that provide services to PEOs are associate members of NAPEO. For more information, please visit www.napeo.org.

SOURCE National Association of Professional Employers’ Organizations (NAPEO)

Related links

http://www.napeo.org

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