Annual revenue growth doubles for firms that use PEOs. Photo: Shutterstock

Small businesses that use the services of a professional employer organization not only see better annual revenue growth, but are also more likely to see an improvement in profitability. 

That’s according to a study released by the National Association of Professional Employer Organizations and conducted by economists Laurie Bassi and Dan McMurrer of McBassi and Associates, which finds that annual revenue growth doubles for firms that use PEOs, as opposed to comparable firms that do not use them. In addition, companies that use a PEO are 16 percent more likely to report an increase in profitability. 

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