Professional Employer Organizations Report Summary

SIC Codes: 7363
NAICS Codes: 561330

Chapters Include

  • Industry Overview
  • Quarterly Industry Update
  • Business Challenges
  • Trends and Opportunities
  • Call Preparation Questions
  • Financial Information
  • Industry Forecast
  • Website and Media Links
  • Glossary of Acronyms

Professional Employer Organizations Industry Overview

Excerpt from Professional Employer Organizations Report

Companies in this industry provide outsourced human resources (HR) management services to client businesses. Major companies include Automatic Data Processing (ADP), Insperity, and Paychex, all of which are based in the US.

Competitive Landscape

Demand is driven by corporate spending and job growth. The profitability of individual companies depends on good marketing and efficient use of information technology. Large companies enjoy economies of scale in marketing and back-office operations. Small companies can compete successfully by specializing in an industry or a job function. The US industry is concentrated: the 50 largest companies generate more than 70% of industry revenue.

Products, Operations & Technology

Services provided by PEOs include payroll processing, benefits administration, workers' compensation, unemployment claims management, insurance sourcing, recruitment/job placement, performance reviews and evaluations, and risk management.

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