PEO Revenues

NAPEO estimates the PEO industry grew a very robust $5 billion in 2008, to $68 billion in gross revenues. (The industry defines gross revenues as the total of its clients’ payrolls and the fees PEOs charge them for taking on their human-resource activities.) Small- and medium-sized businesses outsource to PEOs everything from administering the payroll and paying employment related taxes, to risk management, recruiting, providing health benefits, and securing workers’ compensation coverage. About 700 PEOs are operating in 50 states. The industry’s gross revenue has grown as PEOs attract more diverse, fast-growth clients and the typical salary of the worksite employees increases. PEOs’ expanded human resources services and employee benefits provide a high value and efficient outsourcing option for businesses from many different industries. These statistics are brought to you by NAPEO, the National Association of Professional Employers Organizations.