NATIONAL ASSOCIATION OF PROFESSIONAL EMPLOYER ORGANIZATIONS

Laurie Bassi and Dan McMurrer

McBassi & Company

Key Findings

Professional employer organizations (PEOs) provide a broad array of HR offerings and expertise in employee management to primarily small and mid-size businesses. These solutions enable PEO clients to focus on growing their businesses while also giving employees access to a variety of benefits not typically available to employees of smaller companies.

Research in our previous white papers has consistently found a variety of positive results for PEO clients relative to other businesses, and this paper provides updated analyses in three key areas.

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 they are more resilient. These are the marks of stable, robust businesses that remain better-positioned for long-term success.

RELATIVE TO COMPARABLE NON-USERS, BUSINESSES THAT USE A PEO

• Have a growth rate that is more than 2 times higher
• Have an employee turnover rate that is 12 percent lower
• Are 50 percent less likely to go out of business

Each of these findings updates and refines results from earlier NAPEO white papers.