Insight /

17 PEO Statistics for HR teams in 2023

In the U.S., several professional employer organizations (PEOs) provide payroll, benefits, and other HR services to hundreds of thousands of mainly small and mid-sized businesses employing 4 million people. PEOs assist organizations in increasing productivity and profitability. The following are the most recent PEO statistics: 

  • PEOs serve 173,000 small and medium-sized companies that employ 4 million people. (Napeo) 
  • In 2020, companies paid $216 billion to 4 million worksite employees. (Napeo) 
  • The overall number of employees represented by the PEO industry is about the same as the total number of employees represented by Walmart (the United States only), Amazon, Kroger, and Home Depot combined. (Napeo) 
  • The 173,000 clients of the PEO industry account for 15.3% of all firms with 10 to 99 workers. (Napeo) 
  • The number of WSEs working in the PEO sector increased at a compound annual rate of 7.6% between 2008 and 2020. This is 7% greater than the economy’s total compounded yearly growth rate for the same period. (Napeo) 
  • PEO market projects exponential growth from 2021 to 2025, which indicates that the PEO industry has a profitable long-term outlook. (Anythingresearch, 2021) 
  • The federal government spent $27,819,033 on Professional Employer Organizations in 2020. (PEO). (Anythingresearch, 2021) 
  • The United States granted 92 contracts to 34 businesses, with an average contract value of $818,207. (Anythingresearch, 2021) 
  • PEOs’ 3.7 million worksite employees earned a total of $176 billion in 2019. (360peo, 2019) 
  • The size range of typical PEO customers is from 10 to 99 employees. (360peo, 2019) 
  • PEO employees account for 15% of all employment by private sector firms, with 10 to 99 workers and 2.4% of civilian jobs in the United States. (360peo, 2019) 
  • The number of worksite personnel working in the PEO business increased at a compound annual rate of 8.3 % between 2008 and 2017. This is about 14 times the compounded annual growth rate of employment in the economy during the same period. (360peo, 2019) 
  • Over the last 15 years, employment at SMBs who use PEOs has risen between 7% and 9% faster than small to midsize enterprises overall. (Genesis HR, 2021) 
  • PEOs help small businesses develop 7 to 9% faster and are 50% less likely to fail. (Genesis HR, 2021) 
  • In the U.S., there are between 708 and 980 PEO’s currently operating and providing services. (Napeo) 
  • PEO’s are providing services to between 156,000 and 180,000 small and midsize businesses. (Napeo) 
  • According to economist Laurie Bassi’s research, firms that utilize a PEO have 40% better revenue growth, 14-16% lower turnover rates, and are 50% less likely to go out of business than enterprises that do not employ a PEO. (Napeo) 
  • International PEO is increasingly being used to quickly employ staff overseas and in new territories. (


These latest PEO statistics show how they provide considerable benefits, particularly for a small company that may lack the depth of HR knowledge or system capabilities 

Share on linkedin
Share on facebook
Share on twitter
— Written by the <br>Shortlister Editorial Team

— Written by the
Shortlister Editorial Team


Professional Employer Organization (PEO) Companies

Browse and compare 1000’s vetted vendors.