PEO veterans will often repeat a familiar industry origin story: in the late 1980s and early 1990s businesses turned to PEOs as a solution for lower workers’ compensation costs. There was no talk of talent acquisition, DEI training, mental health benefits, or any of the other many components to the services and benefits PEOs now provide. In the old days, businesses typically partnered with a PEO to save on costs.
And that’s exactly why Thad Steele first encountered PEOs.
As we all know, the year is 2023, and as PEO risk managers it is important that we embrace the title of a Bob Dylan classic: “The Times They Are A-Changin'.”
Given the myriad of changing issues facing the PEO risk manager, a detailed point-by-point examination of the evolving issues would be too lengthy to illuminate within the pages of this article. That being said, this article will focus on two emerging and evolving issues that the PEO risk manager should embrace: dynamic risk analysis and next generation risk department staffing.
Key performance indicator dashboards instantly produce either awe or fear when brought up in conversation, and for good reason. They can be seen as straightforward, objective models that can do no wrong. Or, they can be seen as confusing, subjective, instruments rife with errors. While you have likely seen examples of many different types of dashboards (the good, the bad, and the ugly) it begs the question: what should a dashboard be in its most ideal form? More specifically, what is the most ideal dashboard for a PEO risk management professional?
PEOs are in a unique situation of being the major—and sometimes only—source of HR services and expertise for many businesses that have varying levels of interest and time to put towards these issues. It’s a bit like being an online lecturer at a major university for undeclared freshman. Several may stay after to graciously thank you for the revelations, though you may hear some snoring. Communicating with clients in ways they understand the seriousness of some issues is hard.
To protect their organizations, PEO risk managers need to expand their thinking and competencies to identify and address emerging risk exposures that threaten the reputation and operational ability of their PEOs. The PEO business and threat environment will continue to change. PEO risk managers will be challenged to continue to effectively identify and mitigate risks while adding organizational value.
It's no secret that small business owners have an overflowing list of responsibilities on their plates. Whether they are in the early stages of starting a business or have been operating for years, the stressors impacting small business owners often make it challenging for them to see beyond day-to-day tasks and short-term goals.
Small to medium size companies rely on PEOs to effectively manage critical back-office functions of their businesses such as payroll, employment taxes, employee benefits, human resource functions, and workers compensation insurance. As a co-employer, PEOs specialize in the most efficient and effective means of supporting their clients by leveraging not only economies of scale, but a firm understanding of the ins and outs of workers compensation and risk management. Just like their PEO partners, carriers also have a positive incentive to improve the viability and efficiency of insureds workers’ compensation programs.
When it comes to signing up new employer groups in your PEO’s health insurance pool, collecting questionnaires has always been a sticking point. Today’s clients are like any other consumers; they demand seamless and nearly instant purchase experiences.
The COVID-19 pandemic caused workplace safety to be viewed through a lens of magnified importance, but as the world regains a sense of normalcy three years later, many employers have placed it on the back burner. However, now is not the time for complacency in California, particularly considering Cal/OSHA’s vacillating view of PEOs.
By utilizing the most current and credible information available, Insurance Trends provides quarterly feedback and insights on the insurance industry and its impact on the PEO community. It provides current analysis and futuristic expectations on the terms and conditions that should be anticipated for property and casualty lines of business insurance that impact a PEO and its client companies.
March Madness is not just about the tournament’s path to a National Championship, it is about the perseverance and grit of the players, sometimes playing from behind and seen as the underdog. It doesn’t matter if you come in as a top seed. Every. Game. Matters. While we celebrate, and remember the game winning shot, it is the entire game that results in the win! The madness of March was not just in basketball; NAPEO ran each play with precision. I am proud of our many most valued players and plays of the game.
As you likely know by now, last month I informed the board of my plans to depart NAPEO when my current contract expires at the end of this year. It’s been a good run. I’ve been here 12 years, the longest I’ve been anywhere, if you don’t count Butler, NJ. As I told the board, I have fuel in the tank, I just don’t have a full tank, and this job requires a full tank. It takes someone with all the energy this job requires. And every organization needs to be refreshed every so often. We’re no exception. I’ll stay in the industry in one way or another, keep my hand in things. We’ll see what that looks like. I don’t intend to pack my life in cotton, to paraphrase Steinbeck.