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ADP Celebrates National PEO Week with Insights on Benefits Trends

ROSELAND, N.J., May 19, 2025 – ADP, one of the largest Professional Employer Organizations (PEO) in the country, celebrates National PEO week, which is from May 18th- May 24th 2025.

A PEO provides a range of human resources services to small businesses, including payroll, tax filing, benefits, workers’ compensation and workplace safety, in addition to HR administration and guidance, by establishing and maintaining a co-employment relationship with the employees at a small business.

ADP surveyed more than 30,000 workers employed by organizations who use ADP TotalSource as their PEO. Here are some of the top findings from the Employee Benefit Survey.

One of the most common benefits of a PEO relationship is providing medical and other benefits to employees. 78% of employees feel valued due to the medical benefits provided by their employer, and 82% feel valued due to other, non-medical benefits provided.

When it comes to benefits, the importance of 401(k) plans is on the rise. For the first time, employees rank being offered a 401(k) just as important as being offered dental insurance (62% ranked each in their top 3 benefits). Only medical ranked higher (94%), and vision insurance (30%) was next after dental and 401(k) plans.

At the same time, employees, especially younger employees, are making more cost-conscious choices for benefits. From 2018 to 2024, employees have shifted towards low deductible/higher premium plans, from 47% to 53%. Gen Z chose them 58% of the time.

ADP was ranked the #1 PEO by Forbes, and Business.com said “ADP is our top recommendation for businesses seeking a PEO or HRO service that can excel as a benefits administrator”.

For more information on ADP TotalSource and PEOs, visit ADP.com/TotalSource.

About ADP(NASDAQ: ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com

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