Global Professional Employer Organization (PEO) Market

Global Professional Employer Organization (PEO) Market

Global Professional Employer Organization (PEO) Market By Type (ASO, Full Service PEO), By End User (Small Businesses, Medium Businesses, Large Businesses), And By Geography – Covid-19 Impact Analysis, Post Covid Analysis, Opportunities, Trends And Forecast From 2022 to 2033

The global Professional Employer Organization (PEO) market was valued at USD 65.63 Billion in 2022 and is anticipated to grow at a CAGR of 10.23% from 2023-2033. This growth is attributed to several macro and microeconomic factors such as

Increasing problems with employee turnover

The main catalyst driving the growth of the PEO industry is the increasing need for businesses to comply with labor regulations that have been progressively tightening in recent years. Enterprises, especially larger ones with high employee turnover rates, face supplementary expenditures such as training expenses for new staff to qualify for benefits. To address this, companies like Picture Frame that provide payroll and employee benefits services can aid employers in reducing their costs associated with employee benefits administration and improving their oversight of benefits, leading to better retention rates and lower turnover. As businesses become more cognizant of the necessity of decreasing administrative expenses, retaining top talent, and minimizing turnover rates, the PEO market is projected to expand in the future, offering more efficient and cost-effective options for standard employee benefits packages.

Further several factors restraining the market growth include

Maintaining Oversight of Vital Processes

As companies adopt more flexible staffing models, they may forfeit control over crucial processes such as HR management, tax processing, and payroll management. Relying on third-party vendors for essential business functions can result in significant delays in time-sensitive operations like payroll if the vendor's service is disrupted unexpectedly. Control is a vital factor in decision-making, especially when it comes to the employer-employee relationship. By engaging a professional employer organization (PEO), a company surrenders complete control over its workforce, delegating employee management to a service provider. This concession may restrict the company's ability to interact with its employees compared to a firm that directly employs its workforce. This scenario is particularly true in modern companies, where human resource outsourcing (HRO) providers must have employees available to take on new tasks and satisfy customer demands. The loss of oversight over critical processes and personnel could impede the growth of the professional employer organization market as these providers may lack the capacity to handle an increasing volume of inputs and outputs.

Collaborations and Alliances in the Professional Employer Organization (PEO) market are expected to generate higher avenues during the forecast period.

In the wake of the COVID-19 pandemic, supply chain disruptions have led to supply shortages or lower demand in the Professional Employer Organization (PEO) market. The pandemic has caused a decline in new orders and a corresponding decrease in production.

This section will analyze how COVID-19 has impacted supply chains, leading to shortages and lower demand for Professional Employer Organization (PEO).

Key Insight in the report:

Our report covers extensive competitive intelligence which includes the following data points:

Business Overview
Business Segment Data
Financial Data
Product Segment Analysis and Specification
Recent Development and Company Strategy Analysis
SWOT Analysis

Professional Employer Organization (PEO) Market Segmentation:

Type
ASO
Full-Service PEO
End User
Small Businesses
Medium Businesses
Large Businesses

Region/ Countries Covered:

North America
US
Canada
Mexico
Europe
UK
Germany
France
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Rest of Asia Pacific
Rest of the World
South America
Middle East & Africa

Key Players Analyzed in the Report:

Paychex Inc
Insperity
Automatic Data Processing Inc
TriNet Group, Inc
Infiniti HR
Justworks, Inc
Global PEO Services
Infostride
Total Leasing Company
Co Advantage
FrankCrum
Premier Employers Services Inc
Xcel HR
Abel HR
1 source business solutions

Target Audience

Manufacturers
Suppliers and traders
Government, associations, and industrial bodies
Investors and trade experts
Consulting Firms or Individual Consultants
Anyone interested in understanding the industry dynamics of the Professional Employer Organization (PEO) market