MEET NAPEO’S 2023-2024 BOARD OF DIRECTORS CHAIR: STEVE POLITIS 

A few weeks ago, more than 1,000 industry members gathered in Orlando for our Annual Conference and Marketplace as we welcomed new association leadership. Steve Politis officially took the reins as NAPEO’s new Board of Directors Chair. The CEO of Alcott HR, Politis brings 25 years of PEO and leadership experience to the role.

Politis has been active in NAPEO since he first joined the industry as a young corporate counsel. He counts many fellow NAPEO members as friends, a common theme in our industry. He’s appreciative of the relationships he’s built with other PEO leaders, and the willingness to help one another despite being competitors. Collaboration and teamwork are important hallmarks of the PEO industry; companies work together to solve problems and tackle challenges.

His parents taught him at an early age to always be part of the solution, not the problem. With that spirit in mind, he’s excited and ready to get to work serving the industry over the next 12 months. He has big ideas and hopes to bring about new initiatives around DEI, leadership, and government affairs.

JOINING THE INDUSTRY

Politis’ PEO career began in the 1990’s when his father met a group of Florida businessmen.

“My father said that he knew some people looking to start a business in New York that was big in Florida,” Politis recalls, “He didn’t understand what it was, but suggested I give them a call because they were looking for a lawyer.”

At the time, Politis worked as a lawyer for a bank involved mostly in real estate. He was hesitant about the new opportunity at first, but eventually had his father introduce him to the businessmen and later took a role with their new business. That business happened to be a PEO (still called employee leasing then). First hired as corporate counsel, Politis would serve in many different roles (general counsel, COO, EVP) at a few different PEOs over the next 25 years, including the last nine at Alcott HR where he currently serves as CEO.

He’s learned quite a bit about leadership during his time in the industry, but many of the most important lessons and values he learned came from his parents. The son of a Greek immigrant, Politis learned about hard work, grit, and resilience in his family’s restaurant businesses.

“We’re Greek, we owned diners,” he laughs.

In the restaurants, he learned how to do each role from busing tables, taking orders, and preparing food. It gave him an appreciation for how important each role is in an organization. In the PEO world, he’s tried to touch everyone’s job so he can understand the challenges and assist in fixing them.

Working in the restaurant business also gave him an understanding about the hardships of running a business. He knows firsthand the obstacles and hurdles small business owners have to overcome and how hard it can be to succeed. It’s a reason why he’s so passionate about the PEO industry.

“I truly believe we do great things for our clients,” he says.

In short, PEOs help many businesses including restaurants like the ones he grew up working in to not only keep the doors open but thrive. PEOs have become trusted business partners to clients. No longer are PEOs simply a solution to workers’ comp or health insurance. Strategic HR and consultative business services are part of the value proposition. The PEO industry has evolved quite a bit since Politis first joined, and he hopes it does not stop.

NEW GOALS FOR AN EVOLVING INDUSTRY

If he could pick one word to describe the outlook for the industry, it’s simple: innovation.

“It’s like the old phrase if you’re not growing, you’re dying,” he says, “We have to innovate to grow.”

The PEO service model and offering has already changed a great deal since the industry’s inception. Politis hopes it will continue to do so, but anticipates many changes in the way PEOs deliver services.

Anyone can write a handbook, and anyone can run payroll. So how do PEOs separate themselves? That’s that central question that should drive industry innovation, he believes. Artificial intelligence (AI) will play a big role. The platforms that already exist are expansive and offer new opportunities.

He understands that many workers may feel apprehensive about AI replacing their jobs. However, he thinks there are many ways that AI could be used to improve job functions or modify job functions.

“If you’re really good at what you do, AI is never going to replace the human element,” he says.

To be sure, Politis is not calling for every PEO to suddenly adopt AI in all facets, but he wants PEOs to be open to the idea and embrace the opportunity it presents. At the very least, he hopes to gather a small group of industry members to explore the topic.

And what about virtual reality? How could PEOs leverage that technology? Politis suggests one possible idea: a virtual safety walk-through of a client worksite. This would allow for a much more efficient process, as the PEO’s safety consultant would not have to spend time traveling to client locations.

Of course, to grow and innovate PEOs need a steady stream of talent flowing into the industry. New people bring new ideas. That’s necessary for growth. On the one hand, Politis hopes to mentor and teach new PEO operators by leveraging the expertise of many of our service partners. His idea calls for associate members of NAPEO to lead instructional sessions beyond the 101 level to help new industry entrants really understand the nuances of the PEO model.

Diversity, equity, and inclusion (DEI) programs and initiatives are also a priority for Politis and hopefully will aid in expanding the industry. It’s an important task to undertake, and he believes that Lee Yarborough’s Women In NAPEO and NextGen program’s serve as good springboards and starting points.

“I believe an even more comprehensive DE&I program will encompass awareness, training, and attract great, diverse talent,” he says.

“This isn’t just about meeting an arbitrary quota; it is about harnessing the power of different thoughts to foster an environment where every voice is heard, and every individual and member can thrive.”

Embracing DE&I programs has become an essential component for industries and businesses hoping to grow, so NAPEO should spearhead efforts to help PEOs understand and implement such programs.

To be sure, one major impediment to growth for all businesses is burdensome regulatory schemes. Indeed, the PEO value proposition has only been strengthened as it becomes tougher for small and mid-size businesses to stay compliant. Unfortunately, PEOs face these same obstacles. That’s why Politis is also focused on a few key government affairs goals. He hopes that our work on the ERTC will finally result in a positive resolution, and would like to see federal recognition of a PEO’s ability to offer single employer large group insurance. He also longs for the day when there is uniformity of PEO regulations across federal and state governments. He recognizes the heavy lift of such a project, but hopes to at least start pushing towards this outcome and motivate future leaders to continue it.

Over the last few years, the PEO industry has engaged heavily with policymakers and broadened the recognition and awareness of PEOs. Politis wants this to continue so that one day all regulators and legislators will be familiar enough with the PEO model to take it into account before legislation or rules are implemented.

On issues like Paycheck Protection Program (PPP) loans and the ERTC, PEOs have led the charge on behalf of small and mid-size businesses. So, Politis wants NAPEO to be the voice of the entire small business community not just PEOs. After all if PEO clients grow, then so will PEOs.

Now comes the hard part: accomplishing all of these goals and priorities. It’s a heavy lift, and Politis recognizes that all members who are in leadership roles do so on a volunteer basis. It’s also one reason that he thinks a committee should explore whether association leadership terms are the appropriate length. Is one year too little time? He’s not putting his thumb on the scale one way or another; there’s arguments on both sides that have merit. However, he at least wants the conversation to take place. Additionally, he hopes to capitalize on the expertise of NAPEO’s longtime states people.

“Often times at Board meetings we go down rabbit holes and think we’ve found something novel that’s really not novel,” Politis says. “These leaders [former Chairs] would be able to share historical knowledge and insight from years past about how these issues were addressed.”

To put it simply, Politis sees his role as bringing together stakeholders to achieve common good for the industry. As a young PEO lawyer in a state unfamiliar with PEOs, he leaned on seasoned operators for advice, guidance, and expertise. He’s learned a lot from others, and now it’s his time to give back. He hopes to inspire others to embrace new ideas and technologies to keep the industry growing. Nothing would make him happier, he says, then if the industry looks very different when he retires.