Over the past five years, the Professional Employer Organizations industry has experienced strong growth as it recovers from the depths of the recession and widespread unemployment that caused industry revenue to shrink. However, as corporate profit rebounded in 2010, businesses began to increase investment in larger workforces and use outsourced professionals to handle human resources. In the coming years, the industry is expected to experience consistent growth as the number of businesses and employees in the United States gradually increases. Furthermore, the ability of PEOs to offer a broader range of services and benefits, such as retirement plans, is expected to make the outsourcing of administrative tasks more prevalent.
This industry provides HR management and administration services through a coemployment relationship. Professional employer organizations (PEOs) are responsible for employee administration and serve as the legal employer while employees work for the client on site. PEOs pay wages and associated employment costs in exchange for a fee, which covers the expenses, plus a margin for services, including payroll, tax remittance and benefits administration.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.