Professional Employer Organizations: Keeping Turnover Low and Survival High

In the report, “Professional Employer Organizations (PEO): Fueling Small Business Growth,” a comprehensive analysis of existing economic data showed that small businesses in PEO arrangements have higher growth rates than other small businesses, and small business executives who use PEOs are better able to focus their attention on the core business.

In further exploring the impact of PEOs and their potential to help small businesses better meet the challenges of today’s demanding economic conditions, this follow-up study examines employee turnover and business survival rates for businesses using PEOs and compares them to national data available from the U.S. Bureau of Labor Statistics (BLS).

Applying a variety of different data specifications, the study consistently found that PEO clients have lower employee turnover rates and lower rates of business failure than comparable national averages, after controlling for factors such as industry, size, and state of location.

Learn more about the PEO model, please contact 1.800.447.3237.

Keywords:
Health Care Reform
,
Compliance
Roles:
Research for Human Resources Professionals