Week of Feb 06, 2023 – Latest happenings in EOR PEO
It was an action-packed news week.
A PEO is acquired. EOR acceptance continues to grow as indicated by the annual NAPEO story. The EOR market maturity is also reflected in how Globalization Partners has grown its annual revenues for 2022. PrismHR takes a collaborative approach to keep improving its EOR HR software.
EORs come together for GEIO
This news piece came in through a sponsored post on TechCrunch. But, we felt it had weight enough.
The global employment market is riding high on the model of ‘labor without borders.’ It has spawned this new business category called Employer of Record (EOR). With the aim to nourish this category, GEIO has come up. According to the press release, GEIO is a first-of-its-kind, international nonprofit consortium that aims to mature, elevate, and expand the ecosystem of global employment service providers. Leading EORs – G-P, Papaya Global, Velocity Global, and Safeguard Global – have come together to form this non-profit EOR consortium.
G-P EOR hits $300 Million ARR
Yahoo reported that G-P EOR reported stellar revenue numbers for 2002. No wonder customer demand continues to be robust for EOR and PEO firms. EOR industry growth continues across the spectrum. Large established companies like ADP have posted above-average growth. Even new entrants with newer business models like Deel have reported strong numbers and raised new rounds of capital to grow faster.
Here is the news we picked up.
On the back of a strong financial performance, G-P announced that Nicole Sahin is joining back again as CEO.
PEO Industry awareness up 44%: NAPEO
NAPEO’s annual PEO survey is out. It is great news across the board on many data points. The survey covered over 500 business owners and decision-makers running companies with at least 10 full-time employees and half a million dollars in revenue.
According to PR Newswire,
“PEOs provide payroll, benefits, and other HR services to hundreds of thousands of primarily small and mid-size businesses employing 4 million people. Through a PEO, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. More than 15 percent of all employers with 10 to 99 employees partner with a PEO.”
NAPEO Annual PEO Survey
NAPEO first started doing this survey in 2018. PEO industry prospects have only grown since then. We recommend you study all the data points contained in the news article below. If you have a copy of the report to share, please send it our way.
Here is the news we picked up.
PrismHR collaborates with PEOs for product growth
PrismHR took a bold step to integrate PEO feedback into its HR software product development roadmap. It constituted a Product Advisory Board involving PEO customers and internal team members. Members include twenty-three customer companies, and internal team members from business functions such as product marketing, customer success, cybersecurity, product management, and UX teams. The board will meet quarterly to proactively address the ever-changing PEO needs of small businesses.
Here is the news we picked up.
PrimsHR offers comprehensive HR Software for PEO, EOR, HRO, and ASO. The PEO industry did well in 2022. Deel’s financial performance is a testament to this growth. Research reports across the media expect the PEO and EOR industry to grow through this decade till 2030 continuously. PrismHR’s product advisory board initiative places it at the forefront of product innovation. The EORPEO.com view is that PrismHR should begin a PLG (product-led growth) initiative and dovetail it with the product advisory board.
PEO broker PEO Exchange acquired by Alkeme
In a very interesting development in the EOR PEO space, Alkeme acquired PEO Exchange. It is the first kind of M&A transaction in the HR outsourcing space. What makes the transaction one of a kind is the insurance sectoral focus. PEO Exchange offers PEO services to participants in the insurance distribution chain, especially Insurance Agents.
Here is the news we picked up.
This transaction holds promise to catalyze similar transactions across sectors e.g. financial services, technology, and saas.
