Anecdotally, over many years of dealing with several payroll providers I've seen average net savings of 15 to 20% from PEOs with companies who have at least 10 people and more when the number of employees increases. Of course, they make it up by charging more for payroll processing but overall, companies save substantially. Sometimes, for even companies with just 10-12 employees the difference in health insurance costs is as high as 30%. In 2021, TriNet had about 360,000 employees spread over 16,300 clients, an average of 21 employees per client - where its sheer size ensures economies of scale and bargaining power, which it passes on to its clients. Strengths and Competitive Advantages Cheaper Health Insuranceīecause TriNet is the employer of record for all its clients, it is able to procure health insurance at much cheaper rates than a small or a medium sized company. TriNet ( NYSE: TNET) is one of the largest players in this space with competitors such as Insperity ( NSP ), and the PEO arms of ADP ( ADP ), and Paychex ( PAYX ). Payroll and health insurance customer support for even small and medium size businesses at a reasonable cost. ![]() Compliance and implementation of federal and state government incentives and credit, which have dominated the payroll landscape since COVID 19.ĭ. Compliance with state laws across various states because of work from home.Ĭ. Cheaper and wider choices of health insurance, which it gets for its clients because of it sheer size and bargaining power.ī. Its biggest distinctive competencies and product differentiators are:Ī. ![]() Jason Koerner/Getty Images Entertainment What is a PEO?Ī Professional Employer Organization (P.E.O.) is a Human Capital Management company that provides health and other insurance, payroll processing and human resources management under its own umbrella to several companies.
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