Businesses That Use a PEO Fared Better During the Pandemic

Study finds PEO clients more likely to have business operations back to normal or better.

The National Association of Professional Employer Organizations (NAPEO)'s series of White Papers examine the PEO industry to help business owners better understand the economic impact and value of HR solutions provided by PEOs. 

A follow-up to a September 2020 paper that examined PEO client business outcomes during the early days of the pandemic reveals that PEO clients continued to fare better overall vs. businesses without a PEO. 

Researchers found that PEO clients are:

  • 58% less likely to have permanently closed during the pandemic.
  • 32% less likely to have seen an overall negative effect on business from the pandemic.
  • 82% more likely to have business operations back to normal -or better.

Over the last six months, employment growth was 81 percent better for businesses with a PEO, and success rates related to PPP loan forgiveness were also higher among PEO clients. 

Read the full report: PEO Clients in the COVID-19 Pandemic: Follow-Up Analysis.