Feeling Powered Up by NAPEO 2024? We Sure Are

We’re back from Orlando, Florida, and feeling energized following this year’s NAPEO Conference.

We hope you are, too. After all, it’s tech innovation that plays a huge part in not only powering up innovation in the Orlando area, but also Professional Employer Organizations (PEOs) and their clients as well. And there was a lot of that on full display at NAPEO.

Just compare the early days of “Audio-Animatronics” vs. today’s precise movements for, say, Louis the Gator in Disney World’s new Tiana Bayou Adventure ride. The same holds true for PEOs—the tech keeps getting better and better.

With new PrismHR tech on display at our bigger-than-ever booth, PrismHR helped power up this year’s NAPEO Conference & Marketplace like never before.

So let’s dive into it by plugging in some key stats.

Checking the Data

True to form: This year’s National Association of Professional Employer Organizations white paper, titled PEO Clients: Faster Growing, More Resilient, should help power you up.

This is the fix: Released at the conference, the white paper uses anonymous data provided by PrismHR’s clients and other providers and compares it with public data from government sources such as the Paycheck Protection Program and U.S. Bureau of Labor Statistics. The NAPEO report was authored by Dr. Laurie Bassi, CEO of McBassi & Co.—an independent firm that provides customized analysis and research—and Dan McMurrer, chief analyst.

The report found several key areas that should pique PEOs’ interest.

• Power-Up Stat No. 1: PEO Clients See More Growth
  • PEO clients saw more than double the growth between January 2023 and January 2024. PEO clients saw 4.3% growth vs. 1.6% overall employer growth rate for comparable organizations not using PEOs.
     
    “The higher growth rate among PEO clients likely reflects their increased capacity to focus on strategic business matters while the PEO provides all of the employee-related services.” 
    —NAPEO’s 2024 white paper
     

• Power-Up Stat No. 2: PEO Clients See Less Turnover
  • PEO clients saw about 12% less turnover (or 7 percentage points) than comparable companies (50.4% vs. 57.6%).
     
    “The observed results likely reflect PEO clients being more attractive employers than nonclients, including offering, on average, a wider range of employee benefits.” 
    —NAPEO’s 2024 white paper
     

• Power-Up Stat No. 3: PEO Clients See More Resilience.
  • Non-PEO clients are 50% more likely to go out of business than PEO clients. The average going-out-of-business percentage for PEO clients was under 5% (4.98%) vs. 7.5% for similar businesses not using PEOs.
     
  • Broken down by industry, the PEO client advantage held. The Construction, Retail and Finance & Insurance industries all saw a 4.8 percentage point advantage for PEO clients. Of the 11 other industries examined, the advantage went to PEO clients across the board with Manufacturing seeing the smallest difference with only a 0.3 percentage point advantage for PEO clients over businesses in this industry not using PEOs.
     
    “Reflecting their higher growth rates and more stable employee workforces, it is not surprising that PEO clients also consistently demonstrate more resilience—the ability to survive and thrive, even during difficult economic circumstances—relative to comparable companies not using a PEO.” 
    —NAPEO’s 2024 white paper

None of this should surprise you. As PEOs, you see how much you power up your clients each and every day.

Fun Energy Energizes

What’s a conference without fun? Not this one! There was lots of fun to be had at NAPEO 2024. Here’s a quick recap to power things up:

Sunday: Of course, people come to NAPEO to be energized by the sessions and the fun! PrismHR brought the fun from the start by co-sponsoring a Sunday night party with our good friends at Ameritas. Our female colleagues also spent time mingling with our friends at the Women in NAPEO (WIN) get-together on Sunday as well. I guess you can say we were “WIN-ing?” That’s what we call #winning!

Monday: There was a “Shark” in the NAPEO waters! We were proud to co-sponsor a keynote from “Shark Tank’s” Daymond John with our friends at Slavic401k. John had a dynamic presentation that offered heady advice on business success, including how leadership teams don’t always do the best job of listening to the “heartbeat” of the company, meaning the employees. The good news is those employees are staying longer at companies working with PEOs, so PEO clients appear to be listening.

John also offered this astute observation that there’s nothing new in the business world. On that point, he said he was once asked, “What about emojis?” Nah, he said, Egyptians had hieroglyphics thousands of years earlier.

In the evening, PrismHR was dishing out tasty margaritas at the booth as part of the Opening Marketplace Reception.

Tuesday: It was time to power up at the PrismHR booth. We were serving hot and cold coffee beverages at the booth to keep attendees properly caffeinated. We were also giving away power items to light up attendees’ selfies and reflections.

And, piggybacking off the aforementioned data, PEOs know that being able to provide HR services to their clients requires state-of-the-art technology to help them run their businesses. So PrismHR had its new tech offerings on full display.

Experts were on hand to discuss:

• HCM, the new self-service tool that Professional Employer Organizations (PEOs) have waited for. Clients familiar with the PrismHR platform will be able to easily move to HCM when they’re ready to graduate from the PEO model.

• Report Center puts the power of data in your hands and your clients’ with unprecedented speed and custom report capabilities to get you and your clients information quickly and easily to make better business decisions.

• Workforce Management offers integrated Time & Attendance capabilities to help ensure your clients’ worksite employees are paid quickly, appropriately and correctly.

We also took some time to have fun at the NAPEO party on Tuesday night! Ya gotta do what ya gotta do when there’s a selfie station!

This was just the tip of the iceberg. There’s a lot more in store for 2025. We’ll help power up next year’s NAPEO conference in Austin, Texas, too.

If you’re interested in learning more, no need to wait till the next NAPEO conference. Reach out to your Customer Success Manager anytime if you have any questions or email csm@prismhr.com. They always bring the energy!