INVESTING FOR THE FUTURE

NAPEO CEO Casey Clark and I recently sent out an email announcing that the NAPEO Board of Directors unanimously approved a 2.5% annual inflationary increase to PEO member dues for a five-year period, beginning in 2027.

We didn’t take this decision lightly.

I have owned and operated Syndeo Outsourcing, a Wichita, Kansas-based PEO for a lot longer than I have been the Chair of NAPEO’s board, so I know firsthand the impact even this small adjustment can have. But I’ve also seen how essential our association is to the future of our industry, and this small inflationary adjustment is the most equitable way to ensure that NAPEO can continue to be our leading advocate.

Because NAPEO staff has been successful in maximizing resources and managing costs, you may not be aware that association revenue has been declining for the past several years. This is due to three main factors: economic inflation, industry consolidation and an outdated dues structure that isn’t reflective of our industry today.

We’ve made significant programmatic cuts over the last two years but have had to budget for operational deficits in order to continue to support and advance the best interests of the PEO industry. To help identify solutions to the shortfall, we hired Big Red M, a firm that specializes in working with associations to evaluate and optimize revenue. After conducting a thorough analysis, the company presented several different options for the board’s consideration. Ultimately, we decided that addressing the impact of inflation would be a fair and effective approach.

This inflationary adjustment will adequately fund the association for the next several years and allow us to continue to deliver significant, measurable value that supports the growth and success of our industry and your business. We’ll immediately put your investment to work to strengthen our position in Washington and in the states, deepen understanding of the key role PEOs play in supporting small and mid-size businesses, shape a stronger, clearer industry narrative and enhance member education and engagement.

I’m excited about the work NAPEO is doing on our behalf and energized by our recent successes. Your continued support and engagement are both critical and appreciated.