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
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.
SOURCE National Association of Professional Employer Organizations (NAPEO)