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Procurement Market Intelligence Report

Professional Employer Organization Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Professional Employer Organization Services?

What is the average price of Professional Employer Organization Services?

This procurement report includes pricing information to help you purchase Professional Employer Organization Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Professional Employer Organization Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Professional Employer Organization Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Professional Employer Organization Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Professional Employer Organization Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration is low, with the top four companies comprising less than 30.0% of the total market in terms of revenue. There are about 2,900 PEOs in the United States. Despite the presence of a few large players that generate high revenue, the market is highly fragmented and primarily... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?


Do you provide payroll or payment stubs for our employees?

How do you prepare audited financial statements?

What steps do you take to ensure that you are compliant with state and federal regulations?

How do you manage the payment of taxes?

Do you offer employee tax assistance? Are there additional fees associated with this service?

Customer Service

What is your client renewal or repeat business rate?

How do you evaluate customer satisfaction and how frequently?

Would we have a dedicated account manager to handle our inquiries, or will we use a general support line?

Do you auto-renew contracts? How much notice do you require for contract termination?

Do you have an online portal where we can keep track of employee progress?

Amid widespread health concerns, what contingency plans are in place to mitigate the risk to your clients and employees?


Are you a member of any relevant associations? What are they, and what support do you get from them?

How much experience do you have working with clients in my industry?

How much experience do you have working with clients in my state?

For how many years have you been in business?

When working with clients similar to me in the past, what challenges did you face and how did you overcome them?

Are you experiencing fluctuations in demand as a result of the coronavirus pandemic? What measures are you taking to handle changes in demand?

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Key elements for every RFP

What should my RFP include?

Project Budget

If one exists, buyers should specify their budget for PEO services and related products and services.

Buyers can reference the Benchmark Price and Total Cost of Ownership sections of this report for assistance in creating a budget.

Selection Criteria

Buyers should evaluate potential vendors based on their ability to fulfill the buyer’s requirements and expectations outlined in the RFP.

Buyers should evaluate potential vendors based on the quality of the overall proposal, the quality of the proposed approach and the general PEO strategy.

Buyers should evaluate potential vendors based on their experience in carrying out related projects and qualifications of the staff assigned to this project.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should outline the tentative schedule and process for the RFP and project.

Buyers need to include the date when proposals are due and when the award will be announced.

Buyers should outline the terms of the contract and cancelation policy.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk is low for PEO service providers. Suppliers rely on few critical inputs that can disturb the delivery of services. Suppliers mainly rely on upstream insurance and payroll service providers, IT consultants and computer and software providers to offer their services. These services and inputs are widely accessible... Subscribe to learn more.