THE PEO C-SUITE: ASSEMBLING THE RIGHT ROLES AND PLANNING FOR LEADERSHIP TRANSITIONS

Executive roles have evolved to encompass emerging needs, largely led by the influx of technology and subsequent compliance measures affecting the workplace. The PEO industry itself has already undergone dramatic changes, which means a traditional C-suite model may not be best suited for all PEOs.

Though the core leadership roles of CEO, COO, CFO, and the like are still significant, it’s important to make room for specialized positions that consider data security, AI implementation, and other modern-day demands.

Regardless of which titles make it to the top of your leadership team, the goal is for the C-suite to align with business objectives to ultimately deliver better service and build stronger relationships with clients.

STRUCTURING THE C-SUITE FOR GROWTH

A PEO’s size is a significant factor in developing an effective C-suite. Smaller PEOs may combine roles and responsibilities to conserve budget and optimize resources, while larger organizations may expand their C-suite to involve a greater number of executives at the top of the leadership chart.

However, PEO size isn’t the only consideration, as varying client needs and challenges, as well as the ability to tailor services, can help determine which structure will work best.

From finance to operations and marketing to compliance, each C-suite role has distinct responsibilities to collaboratively work toward one shared vision. To create and maintain a strong leadership structure, it’s valuable to routinely re-evaluate roles and responsibilities and confirm the right people are in the right positions.

EXTENDING THE CORE LEADERSHIP ROLES TO INCLUDE PEO RESPONSIBILITIES

Though there is familiarity with the chief-level positions which make up most companies, there are certain inclusions that differentiate them when part of a PEO.

Chief Executive Officer (CEO): As the key leader in executing a company’s overall vision, a PEO’s CEO must also have in-depth insight into industry compliance and workforce trends to pivot strategy as needed to continually meet business and client demands.

Chief Operating Officer (COO): The COO is the executor of a PEO’s day-to-day operations, ensuring the successful delivery of client services and measuring impact to inform scalability.

Chief Financial Officer (CFO): Manages the financial strategy, budgeting, and risk while also overseeing payroll structures, compliance with tax regulations, and company profitability.

Chief Human Resources Officer (CHRO) or Chief People Officer (CPO): Aligns the PEO’s internal HR strategy with its client services, focusing on talent acquisition, retention, and workplace culture both within the PEO and the businesses it works with.

Chief Technology Officer (CTO) or Chief Information Officer (CIO): Oversees the development and design of which technology solutions are most applicable to enhance experiences, both internally and for clients.

Chief Marketing Officer (CMO): The CMO is responsible for positioning the PEO as a trusted HR partner through strategic lead-gen and client retention efforts.

 

SPECIALIZED ROLES TO ELEVATE PEO OFFERINGS

With multiple generations making up the workforce, the availability of in-person, remote, and hybrid options, and a slew of other industry trends in the mix, assigning full-time roles focused on mitigating risk and maximizing client engagement is a valuable way PEOs can add to their C-suite.

Chief Compliance Officer (CCO): A CCO upholds adherence to local, state, and federal regulations and collaborates with other executives when operational changes are required as a result.

Chief Client Success Officer (CCSO): Manages client satisfaction with a proactive approach to potential challenges to deliver optimal value and secure high retention.

Chief Revenue Officer (CRO): Integrates sales, marketing, and client success efforts to drive revenue growth and prepare PEOs to expand their footprint.

EMERGING ROLES SECURING A SPOT IN THE MODERN WORKPLACE

It’s no secret AI is now a prolific part of the workplace. Knowing how to best utilize automation and translate data is among the C-level responsibilities more PEOs will require in the near future.

Chief AI Officer (CAIO): Manages the integration of AI tools while streamlining their efficiency and navigating ethical considerations.

Chief Data Officer (CDO): Leverages the entirety of a PEO’s data to drive decisions while ensuring the strictest privacy and security standards are met.

Chief Information Security Officer (CISO): Mitigates data breaches by creating comprehensive cybersecurity policies which protect sensitive client and company information.

KNOWING WHO TO TURN TO IN TIMES OF TRANSITION

This collective of executive roles is interconnected by individual skills, strengths, and responsibilities to create a carefully curated C-suite. Yet, many leadership teams are unprepared when one or more positions are left vacant.

PEOs aren’t immune to workforce turnover trends. According to a Mercer study, 5.4% of organization heads and executives and 7.6% of management voluntarily left their roles between 2023 and 2024—reinforcing why identifying potential successors and developing contingency plans is key.

Additionally, with more C-suite executives retiring, and an increased percentage expected in the coming years, it’s in a PEO’s best interest to make sure the next generation of leadership is prepared. This type of action plan starts with:

Assessing Current Leadership Needs. To maintain a strong leadership team, regularly review the roles and responsibilities of each C-suite executive and confirm they are equipped with the key competencies, skills, and experience needed for each role. Implementing performance reviews, 360-degree feedback, and leadership assessments can guide capabilities and identify gaps.

Outlining Operational Processes. Clear, consistent documentation is a critical part of maximizing operational effectiveness and productivity when there are transitions. Maintaining accurate, companywide protocols supports the uninterrupted delivery of PEO services even when there is a change in leadership on the executive level.

Creating A Leadership Development Program. Designing a structured program that includes mentoring, coaching, and training tailored to high-potential employees can set the search for successors in motion.

Leadership development should incorporate both technical and soft skills, such as communication, decision-making, and strategic thinking, as well as rotational assignments or cross-functional projects to broaden candidates’ experience.

PAVING AN ADAPTABLE LEADERSHIP PATH

Tailoring a C-suite structure for growth requires thoughtful alignment with a PEO’s specific goals. Whether it involves adding, combining, or altering executive roles and responsibilities, it should also leave room for flexibility to adapt to inevitable changes.

Establish a clear plan for your company’s leaders so they can continue providing excellent client service and delivering a competitive edge, no matter which direction the industry heads next.