The outsourced human resources industry remains vital to the organizational structure of tens of thousands of businesses in Kansas and across the United States.
A new study by New York-based McBassi & Co. finds that upwards of 173,000 businesses nationwide receive HR services through a Professional Employer Organization (PEO) relationship. PEO providers serve an estimated 4 million worksite employees whose wages total $216 billion combined, according to the report, which the National Association of Professional Employer Organizations (NAPEO) commissioned.
The study also finds more than 15 percent of all businesses with 10 to 99 employees work with a PEO. The McBassi study measured the size of the PEO industry as of the end of the 2020 calendar year.
Meanwhile, concerted efforts to raise awareness about and expand the outsourced HR industry are ongoing. McBassi & Co. estimates PEOs had an average annual growth rate of 7.6 percent from 2009 to 2020 and managed to hold steady throughout the COVID-19 pandemic. Comparatively, overall U.S. employment fell by 6 percent in 2020.
Wichita-based Syndeo is among the nearly 500 PEO organizations nationwide. As a PEO, Syndeo provides its clients with comprehensive services in human resources, employee benefits administration, payroll and risk management. Outsourcing those functions frees businesses from focusing on transactional human resource matters and allows them to focus on their core, revenue-generating mission. Syndeo also offers an Administrative Services Origination (ASO) arrangement through which businesses keep their own employee benefits plans.
Previous NAPEO research shows businesses that utilize a PEO have higher revenue growth, are more profitable and have lower employee turnover along with higher employee satisfaction.
LEARN MORE: HR Outsourcing: PEO vs. ASO
About us: As the Heartland’s leading employer services company, Syndeo partners with local business owners to help them minimize risk, improve efficiency and maximize profitability allowing them the freedom to focus on growth and fulfilling their mission. Syndeo fulfills its mission by taking on all of the HR responsibilities for our clients’ workforce, including employee relations, benefits, risk management and payroll.
~Josh Heck, Marketing Manager, Syndeo