PEO and PEO Broker Statistics
Professional Employer Organizations (PEOs) and PEO brokers play a significant role in helping businesses manage their HR needs. Here are some key statistics and insights about the PEO industry and the role of PEO brokers:
- Industry Size and Scope:
- As of the end of 2022, there were 523 PEOs in the United States.
- These PEOs employed a total of 4.5 million worksite employees (WSEs), who were paid a total of $308 billion.
- The PEO industry’s 208,000 clients represent 17% of all employers with between 10 and 99 employees (NAPEO) (NAPEO PEO Insider) (NAPEO).
- Growth and Impact:
- The number of employers using PEOs has grown by approximately 40% since 2008, showing a steady increase in adoption.
- PEOs provide services to more than 200,000 small and mid-sized businesses (NAPEO) (NAPEO PEO Insider).
- PEO Broker Advantages:
- PEO brokers help companies save time and resources by leveraging their network and expertise to find the best PEO fit. They handle the comparison and evaluation process, ensuring companies get tailored solutions without spending excessive time on research.
- Brokers often have established relationships with multiple PEOs, enabling them to negotiate better terms and pricing for their clients.
- By outsourcing HR tasks to PEOs, businesses can focus more on their core operations, leading to increased productivity and efficiency (NAPEO) (NAPEO).
These statistics highlight the significant role PEOs and PEO brokers play in supporting small and mid-sized businesses, providing comprehensive HR services, and contributing to business growth and stability.