Business Strength & Stability with a PEO | LandrumHR Blog

Business Strength & Stability with a PEO

by LandrumHR, on October 11, 2021
A recent National Association of Professional Employer Organizations (NAPEO) study has shown that businesses who had the backup of a professional employer organization (PEO) fared far better throughout the pandemic.
This new research highlights how PEOs helped clients survive and thrive throughout the pandemic. Data was analyzed from early 2020 through July 2021 in three broad categories: business operations, changes in employment, and success in accessing major government support programs. The study found that, relative to comparable small businesses, PEO clients were:
- 58% less likely to have permanently closed
- 32% less likely to have seen a negative overall effect on business
- 82% more likely to have business operations back to normal (or better)
- 81% higher employment growth rate over the last six months
- 71% more likely to have received PPP loans in 2021
- 18% more likely to have had their 2020 PPP loans forgiven
Ultimately, businesses were less likely to close when partnered with a PEO during the pandemic.

So, what’s behind the numbers?

PEOs offer clients…
  • Peace of mind and protection through the co-employment relationship: With so many other things to deal with during the pandemic, PEO clients don’t have to worry about compliance. On-call human resources and legal experts provide the latest guidance for understanding, applying, and complying with the mountain of ever-changing state and federal legislation, such as major government support programs like the Payroll Protection Program (PPP) loans and the Employee Retention Tax Credit (ERTC). This expertise gives businesses extra time to think through implementation of compliance considerations as well as more time to develop strategic and creative ways to survive and thrive. This results in better outcomes that allow companies to grow more rapidly and expect better future growth.
  • HRIS infrastructure: Most PEO clients have access to a scalable HRIS infrastructure that helps business owners and their employees easily transition between office work and remote work. An HRIS also allows for easy and efficient onboarding, reporting and overall end user experience for the employees and their managers.
  • Expertise: Not only do PEOs offer guidance on how to stay compliant, but they also provide advice and best practices on how to be successful. Because PEO firms work with hundreds of clients across multiple geographies and industries, they have insight into what is working and what is not. PEO clients really get to benefit from this knowledge.
  • Resources: Attracting and retaining talent continues to be a struggle through the pandemic and PEOs can offer a very attractive benefits package that helps maximize the current labor pool.
You can read NAPEO’s full study here:
With great systems and great people, LandrumHR offers a full suite of HR solutions. LandrumHR provides comprehensive PEO services including payroll, timekeeping, compliance, risk management, HR expertise, employee benefits and more.


As a second-generation, family-owned company, in business for more than 50 years, LandrumHR is proud to be a dedicated HR partner to support local business needs. Our breadth of services allows us to create innovative HR strategies that makes the business of people easier. Our integrated HR solutions are provided by our people, our one-on-one relationships, and technology. Our mission is to work together to enrich lives by building personal relationships that are centered around trust.

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