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The areas where PEOs can deliver significant value to their clients can be divided into three broad categories: improving client's ability to attract, motivate, and retain employees; enabling clients to focus on their core businesses while PEOs handle all HR matters; and lowering HR-related expenditures.

PEOs produce benefits for their clients by providing them with a broad array of cost-effective HR offerings. As a result, PEO clients are able to provide their employees with a better value proposition, and employees respond in kind by helping their employers grow their businesses.

This report, highlighting the effects that partnering with professional employer organizations (PEOs) has on small and mid-sized businesses and their employees, is the fifth in NAPEO’s series of white papers designed to help the general public and the small and mid-sized business community better understand the economic impact and value of the PEO industry.

Healthcare, taxes, and regulation - exactly the issues that PEOs help clients address - are consistently reported as the top concerns of small businesses.

Anecdotally, evidence points to a growing PEO industry driven by a rebounding small business sector, an increase in the use of outsourcing by small businesses, and the rise of complicated employment regulations such as the Affordable Care Act (ACA).

This study examines employee turnover and business survival rates for businesses using PEOs and compares them to national data available from the U.S. Bureau of Labor Statistics (BLS).

This study explores the evidence to determine how PEO clients are faring relative to other companies in the economy.