NAPEO Presentation: The PEO Industry Footprint in 2018
After many hours and much hard work, the folks at NAPEO, with their research partners at McBassi & Company, have completed a detailed analysis of the PEO industry footprint as of 2018. Because there is no government entity which tracks data specific to PEO, NAPEO takes it upon itself to gather and maintain this data for the benefit of all every few years. I recently had the pleasure of attending a webinar during which they reviewed and discussed their findings published in their latest white paper titled An Economic Analysis: The PEO Industry Footprint in 2018. Much of the results of this research effort are very exciting for the PEO industry and are summarized below.
Key Points:
- Total PEO WSEs (Work Site Employees) is greater than the collective total employment of many of the largest and most successful companies in the US
- Despite this impressive statistic, still only 12.1% of all WSEs employed by a small business (firms with 10-99 employees) are currently using a PEO
- This leaves room for significant continued growth in the PEO sector in the coming months and years
- Despite this impressive statistic, still only 12.1% of all WSEs employed by a small business (firms with 10-99 employees) are currently using a PEO
- Rate of growth of PEO WSEs is significantly higher than growth rate of employment in US economy as a whole
Additional details:
- It is estimated that there were 907 PEOs operating in the US in at the end of 2017
- This includes 175,000 PEO clients, and
- Approximately 3.7 Million WSE (Work Site Employees)
- This employee count is equal to the combined employee count of some of the largest and most notable companies in America
- Total estimated payroll paid in 2017 for these employees was approximately $176 Billion
- Growth rate of the PEO industry was approximately 14 times higher than the growth rate in employment in the US economy overall in 2017
- That being said, only 12.1% of small businesses in the PEO “Sweet Spot” are current PEO clients
- PEO “Sweet Spot” is defined as companies with 10-99 employees
- 2017 PEO industry growth rate correspond to a sustained rate of the industry doubling every 9-10 years
- Below is a list of PEOs counts by state at the end of 2017
You can review a copy of the complete power point from with webinar as well as a copy of the published white paper by clicking on the following links:The PEO Industry Footprint in 2018 - Power Point2018-white-paper-finalTo view a recording of the webinar, follow the below instructions:
- Follow this link to view the webinar:
- Select Playback
Many good questions were asked during the presentation, so the video is well worth the watch (runs about 45 minutes).We extend a sincere Thank You to NAPEO for all the great work they do to advocate for and substantiate our industry on behalf of all PEOs.
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