NAPEO’S 2024 PEO AWARENESS SURVEY UNVEILED

Since 2018, NAPEO has partnered with market research firm Povaddo to track PEO awareness among business owners and key decision makers. The 2024 survey found that PEO awareness now stands at 67%, a 48% increase since 2018.

KEY FINDINGS

Unaided Awareness of PEOs is reported at 67% among decision makers in 2024, an increase from 2023 (58%) but consistent with previous years’ findings (65% in 2022).

Aided familiarity of PEOs (reported familiarity of PEOs after being presented with a description of PEOs and their offerings) remains constant in 2024 with about four-in-five decision makers saying they are very or somewhat familiar with PEOs after reading about them (78%, +17 points since tracking began in 2018). ​

PEO usage stands at about one-third (33%) of decision makers and those who do not use a PEO report heightened interest. Of those who do not currently use a PEO, almost nine-in-ten (88%) indicate interest in using one in the future. ​

Cost emerges as a major factor when it comes to PEOs. According to PEO users, costs associated with PEOs and savings PEOs bring to their companies are two of the most important factors when it comes to working with PEOs. Cost is also a main reason non-PEO users either report they are not interested in using a PEO or a reason they have declined a proposal. Additionally, decision makers who outsource business functions report saving the company money is a top reason they outsource. ​

Younger decision makers between 25-34 years old have the most traction when it comes to familiarity and current use of PEOs, decision makers who are 35+ are catching up. Aided familiarity with PEOs increased among decision makers over 55 years old (61%, +2 points over the past year) and PEO use has increased among respondents between 35-54 years old (37%, +7 points over the past year) and those over 55 years old (19%, +6 points over the past year). ​

The business climate in 2024 remains positive and decision makers’ outlooks for 2025 is bullish. Seven-in-ten decision makers report their business grew in 2024 (71%) and over four-in-five expect their business to grow over the course of 2025 (83%). In addition, most decision makers believe their gross annual revenue (88%), total profitability at their business (84%) and total number of employees (66%) will increase in the coming year. ​

PEO clients (83%) are significantly more likely than non-PEO clients (65%) to report their business grew in 2024. PEO clients (88%) are also more bullish about the year ahead (2025) compared to non-PEO clients (81%). ​

Employee-related concerns continue to be top of mind for business decision makers. Employee-related issues make up the top 5 most challenging issues decision makers report facing when running their business and are top concerns keeping decision makers up at night.

APPROACH:
Sample: n=502 Business Decision Makers ​
64% business owners​
36% key decision makers​
Data Collection Method: Online ​
Field Dates: Nov 21 – Dec 9, 2024​
Margin of error: ±4.4%