PEOs provide payroll, employeebenefits, HR, workers' compensation, and risk management servicesto small and mid-sized businesses that might otherwise not offercertain benefits to their employees. (Photo: Shutterstock)
If there's one segment of the economy that's experiencingexplosive growth, it's professional employer organizations. In fact, according to theNational Association of Professional Employer Organizations, suchcompanies—which provide payroll, benefits and other HR services to client companies—are seeingemployment growth that is 14 times higher than the growth rate inthe U.S. economy overall.
The report highlights a new study by economistsLaurie Bassi and Dan McMurrer of McBassi and Associates, whichfinds that there are 907 PEOs in the U.S. Those PEOS employ 3.7million worksite employees (WSEs). Annual wages in the PEO industrytotal $176 billion, and 175,000 businesses partner with a PEO.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
