The PEO Industry Footprint is Growing in Florida and Michigan
The PEO industry is growing – there is certainly no doubt about that. Consider that a few short years ago, a large percentage of even the most informed small to medium sized business owners had no idea what a Professional Employer Organization (PEO) was, and certainly had not considered working with one. That’s changed, in a big way: Changes in the marketplace, uncertainty surrounding health care, increases in Workers’ Compensation costs and other factors have given PEOs greater visibility, and a more central role in safeguarding the success of growing businesses.
A recent study conducted by McBassi & Company estimates the PEO industry’s gross annual revenues at between $136 and $156 billion. The study further cites between 156,000 and 180,000 PEO client companies, and somewhere between 2.7 and 3.4 million employees receiving services from PEOs. Obviously, none of these are small numbers, and virtually every current and emergent trend would indicate that they are likely to continue to rapidly grow in the near-term future.
While the industry’s overall national growth is impressive in and of itself, the study includes another remarkable, little-noticed fact: Two of the states leading the nation in the numbers of PEOs who call them home aren’t necessarily the country’s biggest (although they could perhaps be considered the most forward-looking). Both Florida and Michigan boast impressive numbers of resident PEOs, with Florida leading the pack at 107 – beating out much more populous states, including New York and California. Meanwhile, Michigan’s PEO census nearly equals New York’s at the low estimate (47 vs. 49) and handily beats it at the high-end estimate (59). Michigan is similarly neck-in-neck with population- and business-dense California.
To us, that means several things:
- Businesses in states with economies hit hardest by the 2008 economic downturn, as both Michigan and Florida were, have found that PEOs offer both competitive and survivability advantages that they can’t afford to ignore.
- States forced by adverse market conditions to adopt new approaches to business are leading the way in demonstrating the efficiencies and economies of scale that PEOs make possible.
- States where PEOs prosper, and where by extension the increased operational efficiencies PEOs have to offer are more easily leveraged by small to mid-sized businesses, will play a strong hand in reshaping the HR landscape in the coming years as the PEO/HR outsourcing model is further proven in practice and gains in prominence.
We have to say that these are developments we’ve seen coming, and have had a hand in helping to make happen. Trion maintains a strong presence in both Michigan and Florida – the consequence of our early recognition of these states’ potential as powerful centers of activity with high growth prospects. We also were quick to recognize that these states’ unique business climates and unique business needs lend themselves particularly well to serving as environments where a truly professional, efficient PEO could effectively serve its clients, and prosper in doing so.
The PEO business is growing ever stronger in the mitten and sunshine states, and Trion is pleased to be helping to lead the charge.
Trion Solutions is a NAPEO Member
To Trion Solutions’ clients, it’s no secret that our company is constantly striving to improve itself. We have the same mania for optimizing efficiency, cost savings and company performance within our walls as we do for our client companies. What can we say? Trying to do things a little bit better—better than the other guy, better than we did yesterday—is in our DNA: A big part of Trion Solutions’ identity and operating methodology are grounded in the concept of continuous improvement.
That’s for a pretty good reason: When it comes down to it, business improvement is the main “product” we have to sell. Naturally, it makes sense to start with our own company.
In our experience, it’s paid off well:
Trion Solutions has grown consistently, becoming one of the nation’s most stable, successful, and highly reputed human resource services companies.
As such, it seems only appropriate that we formalize our quality and service commitment in a clear, unequivocal way. While we are accustomed to acting independently, and have had great success through doing so, we make it a point to pursue memberships and certifications from the organizations that are doing the most to advance the integrity of our industry and the quality of our services.
The National Association of Professional Employer Organizations (or NAPEO) is the largest national organization devoted to PEOs and human resources services companies such as Trion. In recent years, NAPEO has emerged as “the voice of the PEO industry,” advancing public knowledge about PEOs, supporting public policies that make sense for PEO companies and workers, helping to establish industry best practices, and supporting the integrity of the industry.
Nearly 1,000 PEOs currently operate across the United States; as is the case in most industries, quality, stability, and integrity can vary greatly from one company to the next. NAPEO’s Code of Ethics helps to ensure that reputable PEOs adhere to common baseline ethical standards with regard to the services they provide and the treatment of their employees. NAPEO supports ethics, good corporate conduct, best practices, and expertise amongst participants. This helps assure prospective PEO clients that the company they’re considering working with will truly work on their behalf, and will conduct its activities honorably and professionally.
NAPEO’s standards align closely with those of Trion Solutions. We have built our business on a foundation of professionalism, integrity, and expertise, and we applaud all efforts to improve our industry and the results we are able to achieve for our clients. That’s why we are glad – and proud – to be a NAPEO member.
Within our own sphere of influence—in our own company, and in the companies of our clients—we are working hard every day to achieve many of the same goals NAPEO is striving for: A better PEO industry that delivers better results for PEO clients.
NAPEO serves a vital role within the human resources ecosystem and within the PEO industry. As an active and engaged NAPEO member organization, Trion is doing its part to advance NAPEO’s quality agenda, creating a winning outcome for all concerned: Integrity, sound business practices, and industry stability are good for our industry and our clients—and ultimately, they’re good for the economy and for the country as well.