PEO Engagement Drives Business Success and Growth Rates

PEO Engagement Significantly Boosts Business Growth

In an era where businesses strive for stability and success, new data highlights a remarkable trend among small and mid-size companies engaging with Professional Employer Organizations (PEOs). Recent findings reveal that these businesses not only experience a growth rate more than double that of their peers but also enjoy significantly lower employee turnover rates and a markedly reduced likelihood of business failure.

The Impact of PEO Engagement

According to research commissioned by an industry-leading organization, businesses that partner with a PEO show resilience and adaptability. This type of collaboration benefits approximately 200,000 businesses, which provide employment for around 4.5 million individuals. With a solid infrastructure of payroll, employee benefits, and HR services provided by PEOs, businesses can navigate challenges more effectively.

Key Statistics from Recent Research

The comprehensive study comparing PEO clients to non-clients over several months has produced noteworthy results:

• PEO clients exhibit a growth rate that is over 200 percent higher.
• Employee turnover among these businesses is 12 percent lower.
• These businesses are 50 percent less likely to shutter operations.
• Overall, PEO clients showcase stronger survival capabilities during economically challenging periods.

CEO Insights on the Value of PEO

A leading voice in the PEO sector noted that firms that utilize these services are better equipped for sustained growth. By outsourcing administrative tasks to PEOs, business owners can concentrate on core activities while their employees benefit from enhanced work environments and benefits. This dynamic not only fosters employee retention but also fuels overall business success.

Previous Findings Reinforced

This white paper marks the 13th installment in a series of analyses exploring the benefits of PEOs. Previous studies illustrated that PEOs facilitate access to superior employee benefits at more manageable costs, which in turn leads to heightened revenue growth, increased profitability, and elevated employee satisfaction.

About the National Association of Professional Employer Organizations

The National Association of Professional Employer Organizations (NAPEO) stands as a key representative for the PEO industry. With over 200 PEO members dedicated to providing essential services like payroll and compliance assistance, NAPEO plays a pivotal role in supporting small and mid-sized businesses across the nation. Their members contribute significantly to the industry’s financial landscape, accounting for a large share of its revenue.

Frequently Asked Questions

What is a PEO?

A Professional Employer Organization (PEO) provides payroll, benefits, and HR services to businesses, allowing them to focus on growth and employee engagement.

How does engaging with a PEO benefit a business?

Businesses that partner with PEOs typically experience higher growth rates, lower employee turnover, and greater overall stability.

Why is employee turnover lower among PEO clients?

PEOs create better working environments and provide attractive benefits that encourage employees to stay with their employers longer.

Can any business work with a PEO?

Generally, small to mid-sized businesses benefit the most from PEO partnerships; however, larger organizations can also engage with PEOs for specific solutions.

What services do PEOs typically offer?

PEOs often provide payroll processing, employee benefits, workers' compensation, and compliance assistance, among other HR functions.

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