- Language: English
- 735 Pages
- Published: May 2012
- Region: Global
Professional Employer Organizationsin the US
- Published: February 2014
- Region: North America, United States
- 10 Pages
- First Research
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Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide outsourced human resources (HR) management services to client businesses. Major companies include Automatic Data Processing (ADP), Insperity, and Paychex (all based in the US), as well as Capita and Resource Solutions (both based in the UK).
The US professional employer organization (PEO) industry includes about 4,000 companies with combined annual revenue of about $110 billion.
Unlike other providers of outsourced human resources services, PEOs serve as co-employers of their clients' employees. Personnel staffing agencies, which include temporary help and executive search services as well as PEOs, are covered in a separate industry profile.
Demand is driven by job growth. The profitability of individual companies depends on good marketing and efficient use of information technology. Large companies enjoy economies of scale in marketing and back-office operations. Small companies can compete successfully by specializing in an industry or a job function. The US industry is concentrated: the 50 largest companies generate about 55 percent of industry revenue.
PEOs of all sizes face competition from abroad. India is quickly emerging as a prime destination for HR outsourcing companies, due to the abundance of low-cost, English-speaking labor there.
PRODUCTS, OPERATIONS & TECHNOLOGY
Services provided by PEOs include payroll processing, benefits administration, workers' compensation, unemployment claims management, insurance sourcing, and risk management.
Payroll services involve collecting employee information such as wages, hours worked, deductions, and other compensation-related data, and processing it to generate employee paychecks and tax filings on behalf of... SHOW LESS READ MORE >
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