IBISWorld’s Procurement Research Reports cover thousands of indirect purchasing lines. Our data and analysis help you strategically engage and negotiate with suppliers and give you the credibility to work with internal stakeholders and executives. IBISWorld’s Professional Employer Organization Services procurement research provides price trends and forecasts, supplier benchmarks and negotiation questions all intended to give your company leverage during the sourcing process.
doneBenchmark Price
doneRFP/RFQ/Negotiation Questions
done3 Year Price Forecast
doneSupply Chain Analysis
doneSupplier Intelligence
doneSample Buyer Decision Scorecard

Professional Employer Organization Services - Recent Price Trend

In the three years to 2017, PEO prices have increased an estimated 0.2 percentage points to reach 4.25% of gross payroll. This price growth has had a slightly negative impact on buyer power. Price growth has primarily stemmed from higher demand over the past three years, while competition in the market and from substitute services has tempered price growth and stabilized price trends. As a...


Professional Employer Organization Services - Total Cost of Ownership

The total cost of ownership for PEO services is low. Although buyers should be aware that they are still responsible for the required employer expenses for insurance, social security, Medicare and other withholding, there are not typically any other hidden fees or services that need to be purchased beyond the services selected. The pricing model offered by PEOs provides buyers with a great deal...


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About this Report

This report is intended to assist buyers of professional employer organization (PEO) services. Companies use PEOs to outsource employee management responsibilities, which helps cut management costs and reduce the complexity of providing support services to employees. PEOs form a coemployment relationship with their clients where the PEO becomes the legal employer of the client’s employees. PEOs manage and administer four main functions: payroll, workers compensation, employee benefits and human resources.

Table of Contents

At a Glance

Executive Summary

Price Environment
 Price Fundamentals
  Benchmark Price
  Pricing Model
 Price Drivers
 Input Cost Drivers
 External Demand Drivers
 Recent Price Trend
 Price Forecast

Product Characteristics
 Product Life Cycle
 Total Cost of Ownership
 Product Specialization
 Related Goods
 Subsitute Goods
 Quality Control
Supply Chain & Vendors
 Supply Chain Dynamics
  Supply Chain Risk
  Geographic Locations
 Competitive Environment
  Market Share Concentration
  Vendor Company Types
 Market Profitability
 Switching Cost

Purchasing Process
 Buying Basics
 Buying Lead Time
  Selection Process
  Buying-Decision Scorecard
 Key RFP Elements

Negotiation Questions

Buyer Power Score Components

Jargon & Glossary

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