In late 2017, PrismHR surveyed HR service provider professionals about key business issues and trends. The results indicate that HR service providers, including Professional Employer Organizations (PEOs) and Administrative Service Organizations (ASOs), continue to grow and help streamline the HR functions for small and medium-sized businesses (SMBs). Below are some key industry trends to watch and you can download the complete Trends Report here.
HR service providers reported 22% average growth for 2017
32% of HRO executives anticipate at least 26% growth in 2018
58% of HRO executives reported over 95% customer retention
A key component to growth is retaining your current customer base. It appears PEOs and ASOs are doing just that with 58% of HR service provider executives reporting over 95% retention rate for 2017 and only 5% of HRO executives reported less than 86% customer retention. This is a very strong indication that small and medium-sized businesses need and value the HR services and technology their PEO/ASO is providing.
Download the 2018 Human Resource Outsourcing (HRO) Trends Report to learn more of the latest trends and insights in the HR outsourcing industry, including trends in HR services, market trends, technology trends, growth trends, and how this data compares historically.