Industry Size & Scope

230,000+ Small and mid-sized businesses partner with a PEO
5.4 million+ People employed through PEO arrangements nationwide
14% Of all employers with 20-499 employees use a PEO
7.2% Long-term average annual growth rate since 2008

Impact On Client Business

2x Faster growth for businesses that use a PEO vs. comparable businesses
12% Lower employee turnover among PEO clients
50% Lower likelihood of going out of business for PEO clients
27% Return on investment for businesses using a PEO, through cost savings alone
16% Additional increase in profitability for PEO users vs. comparable non-PEO firms
52% vs. 23%

Share of 10–49 employee businesses with a retirement plan: PEO users vs. non-users

2025-2026 Business Climate (NAPEO Small Business Survey)

80% vs. 67% Share of PEO users vs. non-users reporting business growth in 2025
83% vs. 75% Share of PEO users vs. non-users expecting growth in 2026

Sourcing Notes:

  • PEO Industry Footprint: 2026, research by economists Laurie Bassi and Dan McMurrer, cited via NAPEO FAQs and Industry Research & Data (September 2026)
  • Growth, turnover, survival, ROI and retirement figures: research by economists Laurie Bassi and Dan McMurrer, cited via NAPEO FAQs and Industry Research & Data.

  • 2025–2026 growth and outlook figures: NAPEO 2025 Annual Tracking Survey, released February 2026.