NAICS Code 561330-01 - Employment Service-Employee Leasing

Marketing Level - NAICS 8-Digit

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NAICS Code 561330-01 Description (8-Digit)

Employment Service-Employee Leasing is a type of professional employer organization (PEO) that provides human resources services to client companies. This industry involves a contractual agreement between the PEO and the client company, where the PEO becomes the employer of record for the client's employees. The PEO then leases the employees back to the client company to perform their regular job duties. This arrangement allows the client company to outsource many of their HR functions, such as payroll, benefits administration, and workers' compensation insurance, to the PEO.

Parent Code - Official US Census

Official 6‑digit NAICS codes serve as the parent classification used for government registrations and documentation. The marketing-level 8‑digit codes act as child extensions of these official classifications, providing refined segmentation for more precise targeting and detailed niche insights. Related industries are listed under the parent code, offering a broader context of the industry environment. For further details on the official classification for this industry, please visit the U.S. Census Bureau NAICS Code 561330 page

Tools

Tools commonly used in the Employment Service-Employee Leasing industry for day-to-day tasks and operations.

  • HR management software
  • Payroll processing software
  • Time and attendance tracking software
  • Benefits administration software
  • Applicant tracking system
  • Performance management software
  • Compliance tracking software
  • Employee self-service portal
  • Onboarding software
  • Background check software

Industry Examples of Employment Service-Employee Leasing

Common products and services typical of NAICS Code 561330-01, illustrating the main business activities and contributions to the market.

  • Employee leasing services
  • HR outsourcing
  • Payroll services
  • Benefits administration
  • Workers' compensation insurance
  • Risk management services
  • Compliance consulting
  • Talent acquisition services
  • Onboarding services
  • HR consulting

History

A concise historical narrative of NAICS Code 561330-01 covering global milestones and recent developments within the United States.

  • The "Employment Service-Employee Leasing" industry has a long history dating back to the early 1900s when companies began to outsource their human resources functions. In the 1940s, the industry saw significant growth due to the labor shortage caused by World War II. The first employee leasing company was established in the 1960s, and the industry continued to grow throughout the 1970s and 1980s. In recent years, the industry has seen a shift towards more specialized services, such as payroll and benefits administration, as well as increased competition from online job boards and recruiting platforms. In the United States, the "Employment Service-Employee Leasing" industry has experienced significant growth in recent years due to the rise of the gig economy and the increasing demand for flexible work arrangements. The industry has also benefited from the trend towards outsourcing non-core business functions, such as human resources and payroll. In 2019, the industry generated over $170 billion in revenue and employed over 3 million people. However, the industry has faced challenges in the form of increased regulation and scrutiny from government agencies, as well as competition from online job platforms and other staffing firms.