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What Types of Companies use PEOs?

4 min read

From tech startups to large construction firms, any business can benefit from a PEO. Whether needing new recruiting strategies, better employee benefits packages, or a more comprehensive payroll system, businesses of all sizes and industries find value in a PEO’s HR solutions. 

At, we help businesses across all industries unlock their true potential. With an expansive network of industry-leading PEO providers, our team is dedicated to helping you find the perfect PEO for your organization. If you’re interested in taking your business to new heights but aren’t sure if a PEO is right for you, allow us to do what we do. Read below to learn about the types of companies using PEOs. 

What size companies use PEOs?

Whether you have five employees or 50, a little extra administrative help never hurts. A PEO is a huge asset for any business, but it can be particularly helpful for small to mid-sized companies looking to find their footing. Read below for a breakdown of how different-sized companies benefit from a PEO’s HR solutions. 

3-5 Employees

PEOs are common among startups with few employees. While these small companies work to establish a brand and perfect their product, their PEO takes care of benefits, federal regulations, payroll, and other HR foundations. As a result, these newer businesses can focus all of their efforts on raising money, reinvesting, and promoting growth. 

20-75 Employees

More established companies with 20-75 employees are the ideal PEO clients. With an established business model, team dynamic, and revenue stream, mid-sized companies enjoy the full benefits of a PEO’s comprehensive HR package without worrying about the growing pains of enlisting a co-employer. 

75-200 Employees

Companies with 75-200 employees might debate whether a PEO makes financial sense for their business. Because companies of this size typically have internal HR departments, they must decide whether a PEO’s additional HR expertise is worth the investment. In most cases, internal HR teams and PEOs complement one another, combining their strategic and administrative efforts to elevate your business. If your company has the means to do so, hiring a PEO could be what you need to take your business to the next level. 

200+ Employees

Well-established companies with over 200 employees rarely outsource PEOs. Taking existing resources and tax advantages into account, companies of this size generally don’t need PEOs to organize HR tasks and drive significant business growth. Generally, companies of this size utilize administrative service organizations or human capital management for HR solutions. 

Which industries use PEOs? 

From real estate agencies to construction firms, any business can potentially benefit from outsourcing to a PEO. However, certain industries can especially benefit from a PEO’s services due to their scope of work. The following industries are prevalent PEO clients: 

Professional, Scientific, and Technical Services

Over 20% of PEO clients are from the professional, scientific, and technical service industry. Representing a broad range of professions, this industry contains accounting firms, advertising/marketing agencies, law firms, science laboratories/organizations, and more. 


Manufacturing makes up 13% of PEO clients nationwide. Because it’s a high-risk field, manufacturing requires comprehensive worker’s compensation and healthcare policies. This way, manufacturing employees have a safety net in case of work-related injuries or illnesses. 


Like manufacturing, construction is also a high-risk field. Making up 12% of all PEO clients nationwide, the construction industry requires the comprehensive HR solutions a PEO provides. 

Health Care and Social Assistance

Making up 11% of all PEO clients, the healthcare and social assistance industry dramatically benefits from PEO services, especially compliance. Because the healthcare industry faces increasingly stringent regulations, these businesses could use extra HR expertise to ensure they follow guidelines correctly. 

Real Estate

As a top-growing industry, real estate businesses can use PEOs to maximize their full potential. Making 6% of all PEO clients nationwide, it’s common for real estate companies to outsource PEOs for top-performing employee recruitment and retention strategies.   

Simplify Your Business with 

At, we make it easier to find the perfect PEO provider for your business. With access to some of the largest PEOs in the country, our agents provide high-performing options that will unlock your business’s true potential. If you’re ready to take your business to new heights, connect with our team today to shop PEO quotes and receive competitive pricing within 24-72 hours! 

Ready to take your business to the next level?

Contact us today to learn more about how we can help you achieve your goals.

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