Born in California in the early 1970s, the PEO industry today generates some $51 billion in gross revenues annually. Harvard Business Review called PEOs "the fastest growing business service in the United States during the 1990s." U.S. Department of Labor Statistics predicts that by the year 2020, more than half of America's workforce will be employed by PEOs.
"The industry is growing at between 16-18 percent a year based on revenues," says Milan P. Yager, executive vice president of the National Association of Professional Employer Organizations (NAPEO). There are approximately 1,000 PEOs nationwide, with Florida the clear leader.
"Seven to eight percent of the Florida workplace is co-employed, probably double that of the next closest state," says Paul Hughes, CIC, CEO of Risk Transfer Holdings, Inc., in Orlando, which represents over 30 PEOs nationwide.
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