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For hire: As the labor market improves, demand for PEO services will increase



Abstract

Professional Employer Organizations in the US

Steady growth in the number of small- to medium-sized businesses (SMBs) has been the key driver of industry performance during the past five years. In addition, improving macroeconomic conditions have also spurred industry growth, with the number of businesses increasing and resulting in more job opportunities for Americans. The Professional Employer Organizations (PEO) industry is expected to experience consistent growth over the next five years, as small- to medium-sized businesses continue to outsource administrative duties to PEO service providers. However, industry operators will continue to face mounting competition from external industries, many of which provide similar services to business clients, albeit on a smaller scale.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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Table Of Contents

Professional Employer Organizations in the US - Industry Market Research Report

TABLE OF CONTENTS

ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources

INDUSTRY AT A GLANCE

INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

PRODUCTS and MARKETS
Supply Chain
Products and Services
Demand Determinants
Major Markets
International Trade
Business Locations

COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization

MAJOR COMPANIES

OPERATING CONDITIONS
Capital Intensity
Technology and Systems
Revenue Volatility
Regulation and Policy
Industry Assistance

KEY STATISTICS
Industry Data
Annual Change
Key Ratios

JARGON and GLOSSARY



MAJOR COMPANIES

ADP LLC

Insperity Inc.

TriNet Group Inc.

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