MOVING THE CHAINS

If you watched any playoff football this season (college or pro), you saw a landscape where the margins for success were thinner and the stakes were higher. The winning teams adapted in real time. Even the most established programs had to evolve. After a big win coaches repeated a familiar refrain: “We’re proud, but we’re not finished.” And that’s kind of how we’re approaching this new season for NAPEO and the PEO industry – we’ve had a lot of success, but we’ve got a lot more in us!

We’ve spent the first few weeks of the year wrapping up membership renewals, diving head-first into new state legislative sessions, picking up where we left off with Congress, launching new research and putting a bow on a successful 2025 from an operational standpoint. I’m grateful for all that you, as active and engaged members, have done and continue to do in support of our shared purpose. We continue to make great progress on all four strategic plan pillars. The groundwork has been laid to make meaningful progress in these core areas, especially to secure a favorable policy environment for PEOs and to drive a compelling industry narrative.

Define and Drive a Compelling Industry Narrative

The results of NAPEO’s latest PEO awareness survey show that PEO awareness is now 68% among business decision makers. As awareness of PEOs continues to spread, the opportunity—and challenge—is to demonstrate the value of partnering with a PEO among business owners and policymakers. To do this, we are activating our most comprehensive strategic communications plan ever that will position NAPEO as a leading advocate for small businesses in Washington. The plan targets policymakers so they understand that PEOs help the backbone of the American economy thrive. We know that PEOs help small businesses grow faster, weather adversity and take care of their employees. It’s time Washington understood this, too. Pro-PEO policies don’t just benefit a few hundred PEOs; they benefit hundreds of thousands of small businesses.

Secure a Favorable Policy Environment for PEO Success

Our top federal priority remains advancing H.R. 3223. More House co-sponsors continue to support the bill and, importantly, we’ve had encouraging conversations with several democratic senate offices about joining Sen. Todd Young (R-IN) as a lead sponsor of the Senate companion bill. The federal government affairs committee convened in DC a few weeks ago and mapped out additional key priorities for the coming year, all of which focus on protecting the PEO model and supporting your small business clients.

NAPEO PAC will continue building important relationships with legislators who shape policy that impacts PEOs. To underscore how important these relationships are, we’ve already held one event this year for PEO champion Rep. Nathaniel Moran (R-TX). Thank you to everyone who contributed to the event. There will be many more opportunities to support NAPEO PAC and bipartisan lawmakers who will support PEO industry growth, and I hope you will consider doing so.

Across the states we’re staying busy, too. In Massachusetts, our healthcare bill continues to move forward; we remain optimistic the bill will soon become law. Passing a PEO model act bill in California and Georgia remain top priorities, and we are building on the momentum earned last year.

Elevate NAPEO as the Definitive PEO Industry Resource and Convener

Soon, the board of directors and industry leadership will convene for our annual strategic retreat, and we’re amping up to host a new CEO retreat later this spring before welcoming the industry back to Washington for PEO Capitol Summit. Each of these events provides a venue for industry leaders to network and learn from one another. This type of collaboration strengthens our industry immeasurably.

Strengthen Organizational Sustainability to Deepen Member Value

It’s no coincidence that all of the progress noted above led to a tremendous membership renewal period. We’re committed to using your resources wisely to build the association our industry needs. That includes significant internal systems and process improvements so we can continue to deliver exceptional member service while accelerating our access and influence all across the country.

A core strength of our membership is the commitment we all share to grow and strengthen the industry as a whole—not just your own companies.

As the playoffs showed, championships are not won alone. They’re won by teams; people who share the load, trust the plan, pivot as needed and, most importantly, show up for each other.

We have the strongest NAPEO team ever on the field. And we’re all focused on delivering a strong return on your investment. Let’s keep moving the chains.