Evolving Cultural Trends Call for Workforce Change
Key Takeaways
Carleton McKenna is pleased to share its 2Q24 PEO report following PEOs At a Glance. In this report, Carleton McKenna explores the strategic marketplace, consolidation trends, noteworthy transactions, as well as what the future deal-making landscape may look like for PEO service businesses to help sector participants shape their strategies for the near- to medium-term.
- Increasing Demand: Small and medium-sized businesses are increasingly recognizing the benefits of outsourcing HR and administrative tasks, driving growing demand for PEO services.
- Regulatory Changes: Evolving labor laws and regulations are creating new compliance challenges for PEOs that they need to address.
- Technology Disruption: PEOs are leveraging new software tools and platforms to offer more customized and streamlined services to their clients, automating processes and improving efficiency.
- PEO Consolidation: The industry is consolidating, with larger PEO players acquiring smaller ones to increase market share and expand service offerings.
- Cost Pressures: PEOs are facing rising costs, including healthcare, compliance, and competitive pressures, leading to a greater focus on efficiency and cost optimization.
- Agile Business Models: PEOs are adopting more agile business models, leveraging technology and partnerships to offer flexible and customized services to their clients.
- Focus on Employee Engagement: PEOs are placing a greater emphasis on employee engagement, recognizing that engaged employees are more productive and contribute more to their clients’ bottom lines.
- Expansion of Service Offerings: PEOs are broadening the range of services they offer, such as employee immigration, global recruitment, and international HR support, to provide more comprehensive solutions to their clients.
- Revenue Volatility: The pandemic more than doubled the national unemployment rate, but rising production recovery has brought a jump in revenue.
Carleton McKenna has meaningful experience in the PEO industry, with an interest in cutting edge, tech-enabled businesses and a diverse mix of PEO clientele. To learn more about Carleton McKenna’s wide range of transaction experiences, strategies for growth or exit, and current PEO industry trends, please contact us.