An industry that seemed to have problems because of State regulations and co-employment litigation has continued to persevere and gain momentum on the backs of the industries largest players.
ADP grew revenue nearly 27% between 2004 and 2005, the fastest rate in the industry. Large PEOs are gaining competitive advantage because of:
- Economies of Scale
- Well diversified employee skills pools which diffuses workers' compensation risk
- Technology advances leading to increased efficiency and automation
- Up-selling payroll service only clients
The top 5 PEOs (by revenue) are: - ADP TotalSource of Miami, FL. $6.97 billion. The company had 5,700 clients and 139,000 worksite employees. Gross PEO revenue grew 26.9% from 2004 to 2005.
- Administaff Inc. of Kingwood, TX. $6.63 billion. The company has 5,000 clients and 94,000 worksite employees. Gross PEO revenue grew 23.4% from 2004 to 2005.
- Gevity HR Inc. of Bradenton, FL. $4.77 billion. The company had 8,200 clients and 136,600 worksite employees. Gross PEO revenue grew 10.8% from 2004 to 2005.
- Paychex Business Solutions of Rochester, N.Y. $2.48 billion. The company had 3,300 clients and 59,000 worksite employees. Gross PEO revenue grew 8.6% from 2004 to 2005.
- TriNet Group Inc. of San Leandro, CA. $1.67 billion. The company had 1,100 clients and 16,600 worksite employees. Gross PEO revenue grew 20.6% from 2004 to 2005.
Source Information:
Staffing Industry Analysts Ranks Top 25 PEOs. [Staffing Industry Analysts]
Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing
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