ALEXANDRIA, Va., Nov. 22, 2019 /PRNewswire/ -- A new survey by the
National Association of Professional Employer Organizations (NAPEO)
shows that the PEO industry continued to grow in the third quarter
of 2019. PEOs provide HR services to small and mid-sized
businesses. Industry executives also expect that that pattern will
continue over the next year, with 85% reporting a likely increase
in the number of worksite employees.
The quarterly survey, conducted in October 2019 by Industry Insights, also showed
that PEO revenues and gross profits increased in the third quarter
of 2019, compared to the third quarter of 2018.
"These results show that the PEO industry is sustaining its
pattern of growth," said NAPEO President & CEO Pat Cleary. "Surveys and studies consistently
show that using a PEO is good for a business and its employees.
PEOs provide a real benefit to businesses by providing HR services
and solutions that they would otherwise be unable to afford."
A total of 40 PEO executives responded to the survey. The
typical responding PEO has 23 worksite employees per client. Survey
respondents indicated the following:
- 3rd quarter revenue increased somewhat when compared
to 3rd quarter 2018
- The annual wage per worksite employee stayed about the same
over prior year
- The average number of worksite employees (WSEs) stayed about
the same over prior year
- Gross profit for the 3rd quarter increased somewhat
over prior year
- Operating income for the 3rd quarter stayed about
the same over prior year
- Number of internal employees stayed about the same
- Number of clients stayed about the same
- Number of workers' comp claims reported to carriers remained
about the same
Complete PEO Pulse Survey results.
About NAPEO
The National Association of
Professional Employer Organizations (NAPEO) is The Voice of the PEO
IndustryTM. NAPEO has some 250 PEO members that provide
payroll, benefits, compliance assistance, and other HR services to
175,000 businesses employing 3.7 million people. An additional 200
companies that provide services to PEOs are associate members of
NAPEO. For more information, please visit
www.napeo.org.
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SOURCE National Association of Professional Employer
Organizations (NAPEO)