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PEO Industry Statistics

PEO statistics are somewhat staggering. The PEO industry worth is estimated at $30 billion. Although that might sound like a lot already, a report says that with 98 percent of the market untapped, the potential worth is an astounding $1 trillion.

The average annual cost of regulation, paperwork and tax compliance for companies with fewer than 500 employees is about $5,000 per employee. For companies with more than 500 employees, the cost is about $3,400 an employee.

    * Number of Americans co-employed by a PEO: 2.5 million
    * Average number of employees per PEO client: 14
    * Average gross pay per employee: $19,659
    * Annual PEO industry growth rate: 20 percent to 30 percent
    * Number of PEOs in the U.S: 2,000
    * Percent of businesses with fewer than 100 employees in a PEO: 2%
    * Average length of PEO contract: 1 year
    * Number of states that require PEOs to be licensed: 16

The right PEO can also help set up an employee incentive program, which reinforces good, ongoing work ethics. Choose a competent PEO from our directory of professional employer organizations today, and experience the major difference it will make for your business, and overall bottom line.

Sources: National Association of Professional Employer Organizations; 1996 report called "Professional Employer Organizations: Changing the Face of Business," conducted by Raymond James & Associates Inc., an investment firm based in St. Petersburg, Fla.; Small Business Administration

To find more info on the PEO Industry, please visit


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