Economic uncertainty and rising healthcare costs are now the top concerns for business leaders, according to a 2026 survey from the National Association of Professional Employer Organizations (NAPEO).
As those pressures increase, more companies are expressing interest in PEOs to stabilize costs and offload administrative risk. In fact, 87% of non-PEO users say they’re considering one, the survey found. For many employers, that means figuring out how to make an HR-PEO partnership work.
The reality is, PEOs are no longer limited to one-off or situational use – they’ve become an established option for mid-sized employers. More than 230,000 U.S. businesses now use PEOs, representing about 15% of employers with 10 to 499 employees, according to a separate NAPEO study.
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As more companies adopt PEOs, the question has become less about whether to use one and more about how HR and PEO teams can work together.
We talked to Justin Mincks from BestFit PEO Solutions for his perspective on HR-PEO partnerships. He shared what works, what fails and what helps partnerships stick.
Why an HR-PEO Partnership Delivers Stronger Results
“Companies tend to see the strongest results when they combine internal HR with a PEO in situations where they have some HR capability but lack depth across all...
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