Born in California in the early 1970s, the PEO industry today generates some $51 billion in gross revenues annually. Harvard Business Review called PEOs "the fastest growing business service in the United States during the 1990s." U.S. Department of Labor Statistics predicts that by the year 2020, more than half of America's workforce will be employed by PEOs.
"The industry is growing at between 16-18 percent a year based on revenues," says Milan P. Yager, executive vice president of the National Association of Professional Employer Organizations (NAPEO). There are approximately 1,000 PEOs nationwide, with Florida the clear leader.
"Seven to eight percent of the Florida workplace is co-employed, probably double that of the next closest state," says Paul Hughes, CIC, CEO of Risk Transfer Holdings, Inc., in Orlando, which represents over 30 PEOs nationwide.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
