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.
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.