BestFit Team
PEO Brokers vs PEO Consultants. Are they different?
What is a Professional Employer Organization (PEO)? Does my business need one? We already have a PEO, but not sure if we are getting the most out of...
As leaders, we are constantly looking for ways to accelerate growth while managing costs effectively.
Recent data from the National Association of Professional Employer Organizations (NAPEO) reveals a compelling story about the transformative impact of Professional Employer Organizations (PEOs) on business success.
Here's why PEOs are becoming the secret weapon for growth-focused businesses in 2025...
The Numbers Don't Lie: PEOs Impact on Business Growth
According to the latest NAPEO research, businesses partnering with PEOs are experiencing remarkable advantages:
Growth Rate 📈 4.3% annual growth rate
PEO clients are growing at more than twice the rate of their competitors, with an impressive 4.3% annual growth rate.
ROI Benefits 📉 27.2% average return on investment
Companies see an average return on investment of 27.2% when working with PEOs.
Cost Efficiency 📊 $1,775 savings (annually)
While businesses invest an average of $1,395 per employee, they save approximately $1,775 annually. per employee
Employee Benefits 👩💻 $2,500 average (annually)
PEO client employees earn an average of $2,500 more annually than their counterparts at comparable companies.
Breaking Down the Success Factors
Streamlined HR Management
PEOs take on the burden of administrative tasks, allowing business owners to focus on core growth strategies. This operational efficiency translates directly to improved productivity and profitability.
Risk Management and Compliance
In today's complex regulatory environment, PEOs provide crucial protection and expertise. Companies working with PEOs are 50% less likely to go out of business, demonstrating the value of professional risk management.
Enhanced Employee Experience
With access to better benefits packages and professional HR support, businesses using PEOs report 10-14% lower employee turnover rates. This retention advantage creates significant cost savings and maintains operational continuity.
The Growing PEO Advantage
The PEO industry is experiencing substantial growth, with approximately 208,000 businesses now using PEO services in 2024 – a 20% increase from 2021.– This growth reflects the increasing recognition of PEO value among business leaders.
For businesses considering a PEO partnership, the data presents a compelling case:
- Accelerated Growth: Double the growth rate of non-PEO companies
- Financial Returns: 27% ROI on PEO investment
- Risk Reduction: 50% lower business failure rate
- Employee Satisfaction: Higher compensation and better benefits
PEO partnerships are no longer just an administrative choice – they're a strategic growth decision.
With documented ROI, improved growth rates, and enhanced employee benefits, PEOs are proving to be a crucial partner for businesses aiming to thrive in 2025 and beyond.
Are you ready to accelerate your business growth with proven PEO solutions?
Contact BestFit PEO Solutions today to discover how our expertise can help your business achieve these impressive growth rates and ROI benefits...
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