Understanding the Sales Team’s Role In Effective Underwriting

In the early days of the PEO industry, a PEO salesperson only had to submit a census of employee and payroll data, workers’ compensation codes and health plan participation to get a proposal/pricing. There was no underwriting or scrutiny of the prospect’s information, no credit check, no comparisons. Consequently, due to a failure to manage risk, some PEOs went out of business or lost their workers’ compensation insurance or health insurance plans. The PEO industry’s reputation took a hit in some markets.

• SALES & MARKETING

Workers’ Comp Reserves: Finding the Right Number

While walking one day, I ran into a neighbor doing yard work. We hadn’t spoken much before, but upon striking up conversation I soon learned of his love of woodworking. His excitement led him to take me on a tour of his basement, where I saw all manner of intricate saws and Depression-era tools, along with beautiful pieces of furniture. The neighbor was giddy as he showed what was clearly one of the great joys in his life. Similarly, as an actuary, “finding the right number” is one my great joys. Best yet, this topic is applicable to all industries and coverages. So, how does an actuary find the right number?

• RISK

A NEW FOCUS ON ‘RETURN TO WORK’

“I just can’t find the workers we need,” is an intensifying concern we hear every day from nearly every client. While the staffing function previously stayed in the middle-management court, it now has the appreciably driving attention of our clients’ most senior executives. In 2022, every employee counts.

• HR & BENEFITS

Quick Hits

The latest industry news and farewell to long-time PEO Insider editor Stephanie Oetjen.

SOMETHING’S GOT TO GIVE

Even prior to the pandemic and surging inflation, PEOs are being asked to do more with less. Shortages in the available workforce, delays in virtually all supply chains, and increasing prices are crushing profits and putting significant pressure on management just to keep their businesses alive. What’s the solution?

SUPREME COURT’S WORKPLACE DECISIONS WILL KEEP PEOS ON THEIR TOES FOR THE REST OF 2022

The Supreme Court of the United States (SCOTUS) has certainly received much attention in recent weeks, but PEOs need to keep their eyes on the highest court in the land for an altogether different reason: The decisions we have already seen—and soon expect to see—from SCOTUS in 2022 will alter the landscape of workplace law. We’ve seen two big workplace law decisions already this year, we expect another one in the next month, and the court just accepted review of another case we will most likely see decided around the end of the year.

• LEGAL & LEGISLATIVE

WORKPLACE VIOLENCE: HELPING CLIENTS CREATE A CULTURE OF CIVILITY

While workplace violence incidents may not have dominated the news cycle during COVID, incidents of workplace violence have increased over the past three years. According to one recent survey conducted by a major insurance carrier, 34 percent of small and mid-sized businesses experienced at least one employee threat or violent incident. This article examines some of the fundamental causes of workplace violence and the unique value PEOs can bring to their clients in addressing workplace violence and workplace culture issues.

• RISK

CYBERSECURITY FOR PEOS

With the recent rise of cybercrimes, PEOs, like many businesses, must now recognize that data security in cyberspace and in their own systems is of the utmost importance for the safety of not only themselves but also for their clients.

• CYBERSECURITY & TECHNOLOGY

LONG-TERM LEAD NURTURING

The prospecting your team does today often doesn’t result in closed business for several weeks or months. How do you keep a prospect engaged for an extended sales cycle? How do you keep your qualified leads from going into a “black hole?”    Longer sales cycles and shortened attention spans are often deal-breakers, but lead nurturing gives you an advantage when it comes to converting prospects and building trust. 

• SALES & MARKETING

NAPEO FEDERAL GOVERNMENT AFFAIRS

Since 2018, NAPEO has found itself caught up in a series of federal legislative and regulatory issues.

• LEGAL & LEGISLATIVE

PEO 2.0

Cognition: The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses. Digital disruption has transformed the way businesses operate. Consider this: The world’s largest retailer has no physical stores, the world’s largest hotelier owns no hotels, and the world’s largest taxi company owns no cabs. Amazon, Airbnb, and Uber have all disrupted their respective industries. Looking back, the level of disruption resulting from the recent wave of digital transformation is truly astounding. 

PEO INDEX REFLECTS UNIQUE ECONOMIC ENVIRONMENT

Looking at this month’s PEO Index, it appears at first glance that gross domestic product (GDP) is taking off and the PEO Index is lagging. However, the unique employment environment of today belies first impressions. 

• SALES & MARKETING

PEO News

Acquisitions, Philanthropy, Anniversaries, Expansions, Awards

WHAT HAVE BEEN THE GREATEST CHALLENGES IN STARTING UP YOUR PEO?

Decent launched in Austin, Texas, last year. Our team comes from the world of...

WHY NOW IS THE TIME FOR PEOS

Scholars, leaders, and researchers often speak about how widespread catastrophes or crises can lead to re-evalutions, new perspectives, and dramatic changes that affect various areas of society. COVID is a prime example that certainly fits into this scenario. For business leaders, it illuminated the importance of a sophisticated human resources department. It drove home the need to focus on people and develop a robust people strategy for business success. 

Employee Retention Tax Credits

The Employee Retention Tax Credit (ERTC) was designed to give relief to employers that retained their employees, whether working or not, by paying them throughout COVID. Initially, employers could get $5,000 total per employee for the whole year of 2020. The parameters changed in 2021, giving employers the opportunity to claim $7,000 per employee, per quarter, for the first three quarters of 2021. While this is a great idea in theory, the mechanics of administering it are very burdensome for PEOs. 

• LEGAL & LEGISLATIVE
• PAYROLL

NAPEO’s 2022 PEO Capitol Summit

Laws and regulations that impact PEOs change every day, and NAPEO’s PEO Capitol Summit is the only event focused specifically and exclusively on compliance and emerging legal issues for PEOs. Attendees will benefit from the opportunity to gather in the nation’s capital with PEO owners, senior managers, legal advisors, and HR professionals for valuable policy discussions, legal analysis, and lobbying opportunities. Highlights of the conference include industry expert discussions of PEO industry hot topics that deliver practical information on applying legal concepts to your management decisions and day-to-day operations, a chance to ask the experts your burning questions, and the opportunity to hear from leading lawmakers and policy gurus. 

NEWS AND STATISTICS

THE IMPACT OF COVID ON HOURLY WORKERS The COVID pandemic has had a big impact on hourly wage workers in America. The United Way of the National Capital Area recently surveyed more than 1,000 American workers about how they felt about working during the pandemic and how they feel about their wages. Some companies have increased their wages, but others have struggled to keep staff. 

Recent Developments in Cybersecurity

As hackers continue to target critical infrastructure sectors, attempt to steal personal data, threaten to release such data, and collect ransom, the need for more regulation and corporate diligence could not be more necessary.

• CYBERSECURITY & TECHNOLOGY

Remember the Alamo

Nearly 200 years ago, a fiercely determined band of Texas soldiers in San Antonio prepared for imminent attack from the Mexican army. As they fortified their defensive positions, urgent calls for reinforcements were dispatched. Unfortunately, their pleas were not heeded in time to stop General Santa Anna’s forces from laying siege to the Alamo and killing all her defenders. The Battle of the Alamo is central to the founding history of Texas, which declared its independence from Mexico on March 2, 1836, a mere four days before Santa Anna’s forces attacked. 

• PEO PROFILES

Sharpening Your Sales Team’s Business Acumen

The PEO sale is a complex sale. To be successful at selling PEO, salespeople should have a real-world understanding of human resources practices, from hiring to retiring and all the drama in between. They should be knowledgeable about: • Employment regulations; • Workers’ compensation and regulations; • Risk management; • Employee benefits, administration, and regulations; • Payroll, payroll forms, payroll taxes, and regulations; • Time and attendance systems; and  • HR technology. 

• SALES & MARKETING

The CSA in a Multi-State Environment

As the industry has grown over the years, PEOs have evolved naturally in the direction of multi-state operations. This has always been true, but the pace or scope of this effect accelerated with the rise of remote work during the pandemic.  The PEO client service agreement (CSA) is a challenging document. The complexities and ambiguities of the PEO arrangement require a lengthy contract to reasonably address the risks and to protect the PEO. These challenges are magnified by the need to address state-by-state issues. 

• LEGAL & LEGISLATIVE
• RISK

The Mysterious WC Carve-Out Arrangement

The term “carve-out” is commonly used in the industry, but how it works may not be quite as clear. For those who are not familiar with the term, it describes an arrangement in which the onsite client secures its own direct workers’ compensation coverage for its workforce. Because that client has contracted to be in a PEO arrangement, the co-employees performing services for that client are covered under the client’s own workers’ compensation insurance policy, not the PEO’s policy. Typically, that coverage is sufficient and no other problems arise. 

• RISK

A Scaling Roadmap for Your PEO

All PEOs start somewhere and create systems that work for them. Eventually, if the goal is to grow, scalable systems and operations need to be in place to sustain the PEO’s growth, along with the right people who can manage and execute these operations. Scaling can create many benefits for the PEO: ongoing client satisfaction, a great employee experience for team members, hitting growth targets, and ensuring profitability over the long-term. This is hard work, and it’s not for the faint of heart. Therefore, I hope to put together a practical guide to give you a roadmap for scalability.

• FINANCE & OPERATIONS