Facts about the PEO world
Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.
Approximately 250,000 small and mid-sized businesses and 2.5 million people are part of PEO arrangements.
PEOs provide access to health care for as many as 4 to 6million people.
The average size of a small businessclient of a NAPEO member is 20 employees.
According to one business study, 40 percent of small businessesin PEO relationships upgrade their total employee benefit offerings as a result of the PEO relationship.
While only 27 percent of small businesses overall offer employee retirement plans (according to the NFIB), approximately 95 percent of NAPEO’s members offered retirement plans to their small business work site employees. Virtually all of those offered some level of matching contributions.
To date, 40 states have adopted some form of PEO legislation and PEOs operate in all 50 states.
Actuarial data shows that PEOs aggressively manage workers’ compensation risks and reduce the basic costs of workers’ compensation by as much as 25 percent for small business enterprises