NAPEO’s Small Business Snapshot Shows Revenue Jump for PEOs and Increased Employment Growth for Small Businesses in First Quarter of 2020
The National Association of Professional Employer Organizations (NAPEO) released its quarterly Small Business Snapshot showing that employment growth among small businesses in the first quarter of 2020 was at its highest rate since mid-2018, with most of the growth coming from businesses with 20-49 employees. The report also shows that 67 percent of professional employer organizations (PEOs) reported an increase in quarterly revenue compared to first quarter 2019.
HR Technology News: Businesses Consider Cybersecurity as an Afterthought Despite Growth in Attacks, EY Survey Finds
NAPEO’s Small Business Snapshot is a quarterly compilation of data from the Bureau of Labor Statistics, ADP Employment Report, Wells Fargo/Gallup Small Business Index, Paychex Small Business Wage Data, and NAPEO that focuses on providing insight into the current state of the small business sector and the PEO industry. The report is compiled by noted economists Laurie Bassi and Dan McMurrer of McBassi & Company.
“Our economic data indicates that growth and hiring trends in the small business sector remain very strong in businesses with 20-49 employees, which is the exact market traditionally served by PEOs,” said Pat Cleary, NAPEO’s president & CEO. “While we have seen small business optimism dip slightly in the last few months, all of the key indicators point to in a positive direction for both the PEO industry and the businesses to which they provide payroll, benefits, risk management, and HR services.”
There are more than 900 PEOs in the US that provide payroll, benefits, and other HR services to some 175,000 primarily small and mid-size businesses employing 3.7 million people. PEOs help businesses improve productivity, increase profitability, and focus on their core mission. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies.
HR Technology News: Indeed Announces New Solution to Expedite Hiring Process