Technology Takes PEOs from Communications and Management to Infrastructure and Data Protection
Many things PEOs do are intangible. Much of their value proposition depends on the flow of data in from clients and employees and the services delivered as a result of that data. If ever there were a type of business ideally suited to technology, PEO is it.
PEOs continue to advance in service, efficiency, and sophistication, and to a large extent, advancing technology helps fuel that. Social media’s growth into a part of everyday life brings business opportunities, as PEOs learn to apply marketing principles and strategies to this new communications channel. Because PEO services also involve the exchange of employment, HR, compliance, and business information, social media can be an effective tool there as well.
For years, NAPEO has been a leader in providing programs to educate members about cyber data breaches, an inevitability in today’s environment. Based on Symantec’s Internet Security Threat Report 2013,1 the industry has a legitimate reason to be concerned: there was a 42 percent increase in targeted attacks in 2012, and 31 percent of all targeted attacks were aimed at businesses with fewer than 250 employees, a path of least resistance for cyber criminals and typical clients of PEOs.
As with most technical projects, the topic of blending technology platforms is so broad and encompassing that it is hard to address it sufficiently without an in-depth discussion of the people involved. In-house employees and their leaders are so very critical to a successful integration of multiple payroll systems that it literally cannot be accomplished without an acceptance and blending of two cultures. To be sure, the acquiring culture will be dominant. However, both sets of teams (the acquired and the acquirers) have to work together to enable a successful transition. Therefore, the first order of business in this project should be assembling the proper team to work together.
Social media has revolutionized the way employers and employees communicate, with more than 340 million “tweets”[1] sent out each day and 700 Facebook status updates per second.[2] This social communication whirlwind has created problems for PEOs. Increasingly, legislatures across the United States are passing social media password protection laws in response to employers requiring, or requesting, employees to provide social media passwords as a condition of employment.
Employers share the concern that the cost of complying with the Patient Protection and Affordable Care Act (PPACA) will be prohibitively high and penalties will be excessive. PEOs have long been valued by clients for their ability to leverage technology and bring affordable solutions to market. The new question for PEOs is: Is it worthwhile to invest in the tools needed to provide PPACA compliance services?
Technology is changing the way we live, work, and conduct business. We are more connected than ever thanks to the Internet, mobile devices, and cloud-based applications.
With only a handful of states remaining in session, it is both timely and appropriate to review the legislation that has become law this year. New laws affecting the PEO industry were passed and signed into law in Arizona, Hawaii, Indiana, Maine, and Texas.
Jay Keegan is a passionate guy. He’s just naturally enthusiastic. So much so that in the second year of his MBA program, he jumped right into a project to research and review a nascent industry.
Here’s a quick roundup of what’s going on at NAPEO this month.
Q. A client wants to dismiss an employee who has taken Family and Medical Leave Act (FMLA) leave for a back injury. She has Facebook photos of the employee at a local carnival on several of the rides taken after her supposed injury. Can those be used as evidence of FMLA fraud?
NAPEO has long dedicated itself to providing valuable and timely education, tools, and resources to its members. We are passionate about working together to elevate and grow the PEO industry.
In a competitive global economy, the United States has many clear advantages. We’ve got abundant energy resources, vast agricultural lands, vibrant capital markets, the world’s top labs and universities, a sophisticated and well-developed infrastructure system, and an entrepreneurial culture that drives innovation and advancement—and that’s just naming a few.
Last month, I wrote, “it is highly unlikely that Congress will move legislation to correct or delay the implementation of the PPACA.”