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Professional Employer Organization Services


The Professional Employer Organization Services procurement report contains data and analysis of current and future trends when buying goods and services. ProcurementIQ’s in-depth procurement research is always presented in a logical and consistent format for easy reference throughout a company. The Professional Employer Organization Services Procurement Research Report contains growth forecasts for a three-year outlook period and supplier profit benchmarks so your company can make the right purchasing decision.
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 2018, PEO prices have increased an estimated 0.2 percentage points to reach 4.3% of gross payroll. Price growth has primarily stemmed from higher demand during the past three years, while the prevalence of substitute services and intense market competition have tempered price growth and stabilized price trends. As a result, price volatility has been low in the three years to.

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, which help cut management costs and reduce the complexity of providing support services to employees. Many types of companies use PEOs to outsource employee management responsibilities, including manufacturers, wholesale trade operators, finance and insurance firms and construction companies. PEOs form a coemployment relationship with their clients wherein 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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