Marketing Your PEO

Our new research finds that, relative to comparable non-clients, PEO clients are more likely to fare better on each of the key dimensions examined: they grow faster, they have lower rates of employee turnover, and the are more resilient.

PEO clients enjoy a better chance of survival, higher growth rates, lower employee turnover, higher employee satisfaction, and they fared better than other businesses in the challenging economy during the first year of the pandemic.

Almost two-thirds of all PEO clients have between 10 and 49 employees. Almost half of all PEO clients are in Professional Services, Manufacturing, or Construction. Small- and medium sized PEOs tend to have a smaller average client size than larger PEOs.

This white paper explores the effect that PEOs have had on business outcomes for their clients over the course of the pandemic to date, building on findings in the 2020 NAPEO white paper that undertook a short-term analysis of PEO impacts during the initial months of the pandemic.

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.

A professional employer organization (PEO) provides comprehensive HR solutions to small businesses. Payroll, benefits, HR, tax administration, risk management, and regulatory compliance assistance are some of the many services PEOs provide to businesses across the country. PEOs are an important conduit of information for and about the small business community.

By partnering with a PEO, your constituent employers are able to focus on increasing productivity, offering superior products and services, and running a successful business.

Self-service point and click HR platforms can’t give you the customized, personal assistance you need to successfully administer and manage human resources. A PEO can.

Businesses that use a PEO are approximately 50 percent less likely to fail (permanently go “out of business”) from one year to the next when compared to similar companies in the population as a whole.

NAPEO looked to answer three key questions to help elevate the familiarity and understanding of the Professional Employer Organization (PEO) industry: 1) Why do PEOs have the customers they have? 2) Why aren’t more businesses using PEOs? and 3) What can NAPEO do to increase PEO market share?