Survey Says: PEO is the Way to Go

Maybe you’ve heard of a PEO before, but not sure what a PEO is? Perhaps you sat through a PEO pitch once? Whether you’ve chosen to partner with a PEO or not, the latest data is in to help you make future decisions.

Spoiler: The survey exhibited that companies partnered with a PEO continue to fare significantly better financially and operationally than those which do not.

The National Association of Professional Employer Organizations (NAPEO) conducted its annual survey of 500 small and mid-size business owners and executives in December 2021. The market research data revealed four significant areas where partnering with a PEO is beneficial for a company.

1.    Growth

PEO clients are significantly more likely than non-PEO clients to report their business grew in 2021 (64% vs. 45%). PEO clients are also significantly more bullish about growth in 2022 than non-PEO clients (81% vs. 68%).

2.    Revenue/Workforce

PEO clients have an elevated outlook on revenue (87% vs. 75%) and profitability (81% vs. 70%), and significantly higher expectations for number of employees (71% vs. 41%) for 2022 compared to non-PEO clients.

3.    Challenges

Decision-makers report that material shortages related to supply chain issues and worker shortages are the most challenging aspects of running a business today. PEOs either directly or indirectly assist with each of the top eight challenges identified by the survey.

4.    Burdens

When asked what the greatest burdens are in owning and operating a business, decision-makers flagged insurance benefits, HR technology, and compliance issues as the top problems in 2021. Though these are commonly reported concerns over the years, the degree to which HR technology burdens businesses has increased.

Referring to the Challenges above, PEOs have long been involved in enhancing workplace safety, and have been at the forefront of providing guidance on covid protocols and compliance throughout the pandemic. With the majority of the Burdens and Challenges transferred to the PEO, you can see in the numbers how business leaders have more time and energy to focus on driving growth and revenue, and maintaining a strong workforce.

If you’re interested in outsourcing your challenges and falling back in love with your business, contact us to learn more about how we can help.

Source: NAPEO Market Research Tracking Survey Report, conducted by Povaddo in December 2021 (report access exclusive to NAPEO Members)