What Others Are Saying About the PEO Industry

Media coverage of professional employer organizations has been extensive during the past few years. The media has reported that the exponential growth of professional employer services is "demand driven" by small to medium sized businesses. The professional employer services industry meets critical operational needs of businesses by providing much needed human resource services and employee benefits.

Here's what the media is saying – in their own words:

"It isn't biotechnology, and it has nothing to do with the Internet. . .but the staffing industry is emerging more clearly than ever as a hot entrepreneurial field." -- Roger Ricklefs, The Wall Street Journal, "Worker Staffing Becomes a Hot Entrepreneurial Field," 6/4/97.

"Why will so many go to work for PEO companies? Simply, it's because many small-company owners are tired of being distracted with human resources headaches such as workers' compensation, family and medical leave laws, and discrimination lawsuits." Del Jones, USA Today, "Leasing Workers Eases Load for Small Companies," 5/20/97.

"Many medical practices today have found that employee leasing can be an effective strategy to combat the spiraling costs of having a professional and clerical support staff. It can offer financial and administrative benefits to medical practices, which in turn, can increase staff loyalty and reduce turnover . . .Many physicians will find that the personnel services of an employee leasing company provides will give them more time to address the efficiency of their practices and the quality of care they provide for patients." -- Tony L. Sullivan, Journal of Medical Practice Management, "Employee Leasing: A Strategy to Reduce Staff Administration, Maintain Benefits, and Reduce Employee Liability Exposure," 8/96.

"Analysts believe that with total payroll dollars of about $18 billion nationwide, employee leasing has tapped barely 2% of its potential market. They expect the industry to increase revenues and earnings by 30% a year for up to the next 10 years." -- David Medina, Crain's New York Business, "Employee Leasing Firms' New Lease on Life," 6/9/97.

"Many employers are finding that PEO relationships work well and meet their goals for saving money and increasing efficiency." -- Jennifer Laabs, Personnel Journal, "PEOs Make HR Easier with Staff Leasing," 12/96.

"We see employee leasing as providing benefits to employers at lower costs." Small Business Administration

"We also recognize that employees of a legitimate employee leasing company have access to better benefits packages, delivered economically." Internal Revenue Service

Source: www.napeo.org

" More than ever before, CPA's are advising their bottom-line-conscious employers to use outsourcing to cut costs and improve efficiency. Once confined to production related areas, outsourcing has grown to encompass a broad range of operations. Human resource and payroll have gradually begun to be outsourced"

Source: Bruce Katz, Journal of Accountancy, "What a PEO can do for you", 7/99