WRITING SIMPLOY’S NEXT CHAPTER

When Jay King told his leadership team to read Gino Wickman’s Traction he knew Wickman’s business operating philosophy would change his company. But he likely did not anticipate it would set in motion what he admits has always been his dream: seeing his son, Carson King, succeed him as CEO.

In January, Carson will do just that.

Traction tells the story of a business adopting Wickman’s Entrepreneurial Operating System or EOS. Six components of a business feed into the EOS model: vision, people, data, issues, process and traction. To put simply, if a business aligns the first five components, then the business experiences traction or the forward movement towards goals and success.

Driven by an ambitious goal to reach 10,000 worksite employees (WSEs), the Simploy team embraces the EOS model to create manageable, incremental goals all leading towards the main milestone. Each step builds upon itself and progress and success are carefully measured along the way.

Jay King has led St. Louis, Missouri-based Simploy for 20 years, but 2025 marks the beginning of a new chapter in the company’s history. The forthcoming leadership transition has been intentional and thoughtful, all part of a process to accelerate Simploy’s growth and drive to reach new milestones.

The leadership transition will propel the company forward, but the legacy that Jay King built remains the foundation.

EARLY DAYS

In 1998, Jay King started a staffing company which first gave him insight into the world of HR. He had workers in several states and quickly realized the HR burden was too much to handle on his own.

“In 2000, I learned about PEOs from a radio commercial,” Jay recalls, “I called the company and we had an initial meeting that went really well. I thought the price they quoted me was a good deal and was ready to move ahead.”

His wife and business partner Sharon thought they should first explore alternatives, however. That’s when Jay learned—through the Yellow Pages no less—about the Varsity Group, a small PEO based near St. Louis.

David Avakian led the Varsity Group and responded to Jay’s inquiry by meeting him personally. The high-touch service made a lasting impression and would ultimately change Jay’s life. Jay’s staffing company signed on with the Varsity Group for PEO services, and Jay and David soon became personal friends.

A few years later, an unexpected phone call set off a fury of activity.

“David called me on April 13, 2004, and said he was going out of business, but my account would be transferred to another PEO based in Florida,” Jay says.

Jay had known about some business issues David was dealing with, but did not foresee the business shutting its doors. He tried to be a good friend and help David process and evaluate all his options.

“I asked if another company were to buy his PEO and operate the business if that would help save his company,” Jay explains.

David thought this would be a feasible solution. So, Jay asked if he could buy the PEO.

“He took a long pause and, with no confidence at all, said yes,” Jay laughs.

With a renewed sense of hope and optimism, Jay and David got to work coming to an agreement for Jay to buy the Varsity Group. Data and financial reports flew back and forth, and Jay tried to perform as much due diligence as possible. He noticed the business was cash flow positive, so he felt some level of comfort despite the many unknowns about operating a PEO.

Within a few days, a new PEO division had been created and the entity was registered in the necessary jurisdictions. Client accounts were moved over with new agreements, and somehow, miraculously, Jay ran his first payroll on April 28, just 12 days after the deal closed!

The accelerated and chaotic timetable was tough, but financing and insurance coverage quickly became hurdles, too. Any entrepreneur knows how difficult it can be to secure enough funding to purchase or start a business. There’s a reason why the word means risk taker in French.

“I knew the deal made sense, but I had to come up with a lot of money. I learned quickly that banks don’t lend on cash flow, so I borrowed heavily against my 401(k), signed up for credit cards for cash advances, and took out an SBA loan,” Jay says.

When the insurance company Jay’s staffing company used found out he had entered the PEO business, the company non-renewed all his lines of insurance. Luckily, Jay managed to connect with a broker who understood PEOs. Assurance helped Jay secure business lines of insurance, while Jennifer Robinson worked a miracle to secure a workers’ compensation policy that was underwritten, bound and in effect in 15 days.

Despite those challenges, Jay benefited from acquiring an established book of business with loyal clients. The company’s sound infrastructure meant Jay did not need to set up operating and software systems, nor did he have to hire and train a staff.

“To this day, I don’t know how we did it,” Jay says, “it was a miracle.”

FROM VARSITY GROUP TO SIMPLOY

Not long after acquiring the Varsity Group, the team decided to re-brand the new company as Simploy. Jay continued to focus on his staffing business while running the PEO. The economic downturn and recession in 2008 crippled the construction industry which decimated the staffing company as the company did a lot of business in that industry. This forced Jay to turn his full attention to the PEO business. He learned more about the intricacies of the industry and began networking with other operators. The business began to grow as new clients came on board.

Simploy has always prided itself on offering a high-touch level of service to its clients. Crossing the 1,000 WSE threshold signified a milestone and recognition of the company’s successful approach and philosophy. The 2,000 WSE milestone followed, and growth really accelerated.

The internal team grew, too, from the original three-person team Jay inherited to more than 20 now. The team is a tight-knit group that’s committed to the company’s vision and long-term success. It’s a blend of industry veterans with deep knowledge and newer members. Of course, one of those newer members is Carson King, who joined the company full time a few years ago after graduating college, however, he’s been around the business his whole life.

“I can remember being 6 or 7 and my dad would pay me a dime to take out the office trash,” Carson recalls.

That may not be the most formative experience and training for a CEO, but it represents a broader point: he’s been involved with every facet of the company from summer jobs during high school to working while in college and now on the leadership team.

“It’s really endeared him [Carson] to the staff,” Jay says, “they’ve seen him always willing to help and work his way up.”

That said, even though Carson had spent a great deal of time around the company growing up, joining the business full-time was no sure thing. It was always a possibility—and something Jay wished would happen—but not set in stone.

“I golfed in college, and there was a point where I wanted to see if a career in professional golf was possible,” Carson says.

Ultimately, he decided to join Simploy. He enjoys the challenge and opportunities the PEO industry brings and has made it a point to work in many different areas to set a good foundation.

From payroll, to onboarding to even risk management, Carson has been involved.

PROJECT 10K

Simploy’s implementation of EOS two years ago sparked a business growth and transformation drive that hopefully culminates in reaching 10,000 WSEs. Internally, this goal is known as Project 10K.

The team relies on the EOS framework to simplify and clarify this vision. Leaders are aligned with the rest of the workforce and an emphasis is placed on accountability and measuring results. EOS replaces the traditional corporate organization chart with an accountability chart. There are no titles, just roles and responsibilities. The visionary sits on the top, bearing ultimate responsibility for articulating vision, forging relationships and developing goals. The integrator sits just below the visionary with responsibility for developing and executing the steps and processes to achieve the vision.

“It’s powerful in its simplicity and practicality,” Carson explains, “growth has accelerated since we’ve implemented it.”

“Things are better than they have ever been,” Jay adds.

That said, growth for growth’s sake is not part of the plan. The Simploy team remains proud of and committed to offering the high level of quality service their clients have come to expect.

“We can’t just offer standard solutions, we have to understand each client’s challenges and goals to tailor our services,” Carson explains, “That sets us apart a bit and it’s a legacy from the culture Jay built.”

Growing and scaling without losing a company’s core identity and culture is no easy task, but one the Simploy team is committed to. If anything, they see growth as a chance to elevate their level of service and increase their impact on the community.

The team is especially proud of the company’s net promoter score that consistently ranks around 90, near the top for all PEOs in the country. It’s a reflection of the service quality Simploy provides and how integral their clients see Simploy’s resources and expertise to their success.

“The best clients are the ones who truly want a partner,” Carson says, “we see our team as an extension of their teams.”

Everything seems to be moving in the right direction. The St. Louis area has grown quite a bit in recent years, offering new channels and opportunities for growth. 2023 was a record sales year for Simploy, and 2024 is on track to be so again.

This success is thanks in large part to the incredible team of professionals at Simploy. The St. Louis Business Journal awarded the 2023 Best Place to Work Award to Simploy, an achievement Jay and Carson are very proud of. Office culture is no longer an afterthought for employers. Creating a positive, enjoyable workplace matters to employees and contributes to increased engagement and ultimately higher client satisfaction.

“Our core values of proactive positivity, radical collaboration, dependability and a relentless drive to excel shape all we do. We have a team first mindset that informs how we work and approach opportunities to enrich the lives of those we serve,” Carson says.

“You learn quickly that your employees keep you in business, a lot of issues go away when you have that mindset,” Jay adds.

This increased focus on office culture stems from broader trends reshaping the workforce as younger generations make up a greater share of workers. Flexibility, transparency and purpose-driven careers are desired traits. Expectations from employers have changed among employees with calls for remote work options and enhanced benefits. PEOs have a role to play in helping clients adapt to this new world of work.

In some ways, the PEO industry is a microcosm for the entire workforce. Many PEO founders and veterans have—or soon will—exit the industry. New and younger PEO operators are entering their roles with new ideas, perspectives and experiences. This is certainly true at Simploy as the team prepares for the final stages of the leadership transition.

That said, it’s clear Carson and his team have a solid foundation and 20-year legacy to stand on. He’s prepared for the leadership role by learning as much as possible through trainings, leadership development courses and networking with fellow PEO operators.

It’s also clear that Jay has total and complete confidence this is the right decision. As he reflects back on his career, he’s appreciative and grateful for Simploy’s success and how it’s allowed him to support his family and his employees.

“I enjoyed having a good business that allowed me to treat it as a lifestyle business, but the team certainly does not have a lifestyle business mentality,” Jay says, “They’re leaving me in the dust. The next chapter is theirs to write.”

“There’s really nothing I’ve ever done that’s more rewarding than to have Carson take over something that’s been so integral to our lives,” Jay adds.