Why 70% of Growing SMBs Switch to a PEO Before 150 Employees

Why Most Growing US SMBs Adopt a PEO Before Reaching 150 Employees in 2025

12/17/20251 min read

Scaling from 50 to 150 employees often exposes HR weaknesses. Smart leaders switch to a PEO early to avoid chaos.

Extend IQ Global supports this critical growth phase with comprehensive solutions.

Triggers for PEO Adoption

  • Rising benefits costs outpace revenue

  • Multi-state hiring complicates compliance

  • Internal HR can’t keep up with volume

Benefits of Early Partnership

  • Immediate access to better benefits and lower costs

  • Freed-up leadership time for revenue focus

  • Reduced risk during rapid expansion

Data Point Companies using PEOs grow 7-9% faster than peers (NAPEO study). Make your growth smoother. Explore PEO options at ExtendIQGlobal.com.