About NAPEO
NAPEO stands for the National Association of Professional Employer Organizations. It is a trade association for professional employer organizations (PEOs) in the United States. PEOs provide a range of HR services to small and mid-sized businesses, including payroll processing, benefits administration, workers’ compensation insurance, and regulatory compliance.
NAPEO serves as a voice for the PEO industry, representing its members before state and federal legislators, regulators, and the media. The organization advocates for policies that promote the growth and success of PEOs and their clients. It also provides education and networking opportunities for its members, as well as research and data on the PEO industry.
Company History – NAPEO
NAPEO was founded in 1984 as the National Association of Alternative Business Strategies (NAABS), with a mission to promote the use of alternative business strategies, such as PEOs, to help small and mid-sized businesses compete in the marketplace. In 1985, the organization changed its name to the National Association of Professional Employer Organizations (NAPEO), to better reflect its focus on the PEO industry.
Over the years, NAPEO has grown to become the leading trade association for the PEO industry, with over 250 member companies representing more than 175,000 small and mid-sized businesses across the United States. The organization has also expanded its scope to include advocacy, education, research, and networking initiatives to support the growth and success of its members.
In 2019, NAPEO celebrated its 35th anniversary as an organization, marking three decades of service to the PEO industry and its clients. The organization continues to evolve and adapt to changing market conditions, technological advances, and regulatory developments to ensure that its members remain at the forefront of the HR outsourcing industry.
NAPEO products and services
NAPEO offers a range of products and services to its members, including:
- Advocacy: NAPEO advocates for the PEO industry at the state and federal levels, promoting legislation that supports PEOs and their clients.
- Education and Training: NAPEO provides educational resources and training programs to help PEOs stay up-to-date with the latest trends and best practices in the industry.
- Networking Opportunities: NAPEO hosts events and conferences that provide opportunities for PEOs to connect with other industry professionals and exchange ideas.
- Research and Publications: NAPEO conducts research on the PEO industry and publishes reports and white papers on topics such as PEO market trends, regulatory compliance, and industry benchmarks.
- Accreditation: NAPEO offers a voluntary accreditation program that recognizes PEOs that meet certain industry standards for financial stability, ethical business practices, and operational excellence.
Benefits of using NAPEO PEO services
There are several benefits of using a professional employer organization (PEO) that is a member of NAPEO, including:
- Access to HR expertise: PEOs that are members of NAPEO have access to a wealth of resources and expertise in the HR outsourcing industry. This allows them to provide their clients with high-quality HR services and support.
- Cost savings: PEOs can help their clients save money by handling HR functions such as payroll administration, employee benefits, and workers’ compensation insurance. This allows businesses to focus on their core competencies and improve their bottom line.
- Compliance assistance: PEOs can help businesses stay compliant with federal, state, and local employment laws and regulations. This can help businesses avoid costly fines and legal issues.
- Employee benefits: PEOs can offer access to a wider range of employee benefits, such as health insurance, retirement plans, and employee assistance programs, that may not be available to small and mid-sized businesses on their own.
- Improved employee relations: By outsourcing HR functions to a PEO, businesses can free up time and resources to focus on improving employee relations and enhancing the overall workplace culture.
NAPEO PEO Services- Competitive advantages
NAPEO member PEOs offer several competitive advantages for businesses, including:
- Expertise: NAPEO member PEOs have a wealth of expertise in HR outsourcing, allowing them to provide businesses with high-quality HR services and support.
- Cost savings: PEOs can help businesses save money by handling HR functions such as payroll administration, employee benefits, and workers’ compensation insurance. This allows businesses to focus on their core competencies and improve their bottom line.
- Scalability: PEOs can help businesses scale their HR functions as they grow, providing access to resources and expertise that might not be available to them otherwise.
- Compliance assistance: PEOs can help businesses stay compliant with federal, state, and local employment laws and regulations. This can help businesses avoid costly fines and legal issues.
- Employee benefits: PEOs can offer access to a wider range of employee benefits, such as health insurance, retirement plans, and employee assistance programs, that may not be available to small and mid-sized businesses on their own.
- Technology: NAPEO member PEOs can provide businesses with access to the latest HR technology, allowing them to streamline their HR processes and improve their overall operations.
- Risk management: PEOs can help businesses manage risks associated with HR functions, such as workers’ compensation claims and employment disputes.
NAPEO PEO- Alternatives
While NAPEO member PEOs can provide many benefits to businesses, there are several alternatives to consider:
- In-house HR: Some businesses may choose to handle their HR functions in-house, either by hiring an internal HR team or designating an existing employee to handle HR responsibilities. This option can provide greater control and customization, but may require more resources and expertise than some businesses have.
- Outsourcing to a non-PEO HR provider: Businesses may choose to outsource their HR functions to a provider that is not a PEO. This can provide more flexibility in terms of which HR services to use, but may not offer the same level of expertise and cost savings as a PEO.
- Co-employment: Co-employment arrangements allow businesses to share HR responsibilities with another company, such as a staffing firm. This can provide some benefits of PEOs, such as access to benefits and compliance assistance, but may not offer the same level of customization and control.
- DIY HR: Some businesses may choose to handle their HR functions on their own, without the assistance of a PEO or other provider. This option can provide complete control and customization, but requires a significant investment of time, resources, and expertise.
NAPEO Frequently Asked Questions
What do NAPEO member PEOs do?
NAPEO member PEOs provide a range of HR outsourcing services, including payroll administration, employee benefits, workers’ compensation insurance, and compliance assistance. They help businesses manage their HR functions more efficiently and effectively.
How do I become a NAPEO member?
To become a NAPEO member, a company must meet certain eligibility criteria and apply for membership. Membership is open to companies that provide HR outsourcing services as their primary business.
What are the benefits of NAPEO membership?
NAPEO membership provides access to a range of resources, including industry research, networking opportunities, and educational programs. Members also benefit from the organization’s advocacy efforts on behalf of the PEO industry.
What is the difference between a PEO and an HR outsourcing provider?
While both PEOs and HR outsourcing providers offer HR outsourcing services, PEOs take on a co-employment relationship with their clients, meaning that they share certain employer responsibilities with the client. This allows PEOs to provide a wider range of services and benefits than HR outsourcing providers.