BUILDING BETTER RETIREMENT OUTCOMES: BEST PRACTICES FOR PEOS SUPPORTING CLIENT PLANS

Chris Chaney Chris Chaney on June 20, 2025

More businesses are offering retirement plans—not just because they have to, but because employees expect it. For PEOs, that shift creates a clear opportunity: to help clients go beyond basic compliance and build retirement solutions that serve both their teams and their business goals.

State-sponsored programs have pushed this issue into the spotlight. But the real conversation for PEOs is about value—how to help clients offer plans that employees understand, use, and appreciate. Plans that improve financial outcomes and support long-term workforce stability.

So how do you get there? This article explores practical ways PEOs can lead on retirement strategy and bring meaningful value to clients and their teams.

WHAT’S CHANGING AND WHY IT MATTERS NOW

More than 30 states have either launched or proposed retirement savings programs. Most follow an auto-IRA model: employers that don’t offer a plan must facilitate employee payroll deductions into a state-managed Roth IRA.

These programs are simple by design. But simplicity has trade-offs. Employers can’t contribute, investment options are limited, and administrative support varies widely. That leaves room for PEOs to offer alternatives that better fit client goals.

As a PEO, you likely already manage payroll, benefits, and compliance for clients across multiple jurisdictions. You’re well-positioned to fold retirement support into the broader HR ecosystem—and help clients make smarter decisions about plan design, communication, and execution.

FROM OBLIGATION TO OPPORTUNITY

State mandates can feel like one more box to check. But for PEOs, they’re also a chance to lead smarter conversations about long-term financial wellness. When a client gets a state notice about mandatory retirement enrollment, the instinct is often reactive: What do we have to do? But what if the conversation shifted to: What’s best for your employees?

Here’s where PEOs can lean in.

Make plan selection intentional. Whether it’s a simple IRA, a state-facilitated plan, or a PEO-sponsored 401(k), your clients need support understanding what each option offers—and what it doesn’t. Match the plan to their workforce size, budget, and goals.

Simplify the employee experience. Employees don’t enroll in plans they don’t understand. Make it easy. Provide ready-to-use content and tools that explain how contributions work, why it matters, and how to get started—even if it’s just $10 per paycheck.

Align payroll and systems. Retirement plan effectiveness lives or dies in the details. Payroll deductions must be timely. Contribution limits must be tracked. Plan data must stay clean. PEOs are uniquely equipped to make sure those details don’t get lost.

FIVE BEST PRACTICES FOR PEOS TO SUPPORT RETIREMENT SUCCESS

PEOs are doing more than just managing risk. You’re helping your clients build workplaces where people feel valued and supported. These five practices can move that forward.

1. Know your clients’ footprint. State mandates vary. Keep a clear, current map of which clients are in which states and whether they’re subject to participation. Even if a client offers a plan, documentation may still be required to claim exemption.

2. Help clients compare options. State plans aren’t inherently bad—they’re just limited. For a growing client, the lack of employer matching or limited investment flexibility may become a pain point. Be ready to explain how a PEO 401(k), MEP, or pooled plan stacks up in terms of cost, control, and employee experience.

3. Build for engagement, not just enrollment. Auto-enrollment continues to drive higher participation across retirement plans. According to Vanguard’s How America Saves 2024, 61% of plans offered automatic enrollment in 2024—including nearly 80% of plans with 1,000 or more participants. For PEOs managing retirement plans that span multiple worksite employers, this trend offers a strong benchmark for plan design decisions.

Participation is a strong start—but long-term engagement takes more than a default setting. Employees who feel confident about saving—and understand how their plan works—are more likely to contribute consistently. PEOs can support this by making retirement education a standard part of onboarding, offering financial wellness tools, and helping clients foster a culture of long-term saving.

4. Track performance and trends. Use data to assess participation, average contribution rates, and opt-out patterns across client groups. Tracking can help identify where employees are engaged vs. where they’re opting out, where deferral rates are strong enough to support long-term savings, and where automatic enrollment or escalation might need adjustment. Overall, identifying patterns can highlight where extra support or plan design tweaks might help.

5. Remain flexible as the landscape shifts. Legislation will continue to evolve. Programs will expand. Some states will form tech-sharing partnerships, while others may explore alternative plan designs beyond the standard auto-IRA model, such as pooled or group retirement plans that allow multiple employers to participate.

LEADING THE CONVERSATION

How a business approaches retirement benefits can say more than any policy or perk—it shows what kind of relationship they want with their team. For many small and midsize employers, offering a plan communicates that they care about long-term employee security. PEOs are in a prime position to make that promise real.

By staying informed, aligning the right plan to the right client, and providing practical support, you help clients deliver on their commitments to employees.

At the same time, you reinforce the value of the PEO model. Your ability to manage complexity, provide strategic guidance, and create integrated solutions sets you apart in a crowded HR services market.

A LOOK AT WHAT’S AHEAD

State mandates may be growing, and federal momentum is building—but at the heart of it all is a simple truth: people need real opportunities to build financial security. Access is a start, but it’s not the finish line. What matters most is making saving feel doable, dependable, and built to last.

This is where PEOs can lead with purpose—helping clients not only meet new requirements but build retirement programs that last. The future of work depends on financial security. And that future starts now.

THE VOLUNTARY BENEFITS PEOS NEED TO STAY COMPETITIVE AND GROW REVENUE

Chris Chaney Chris Chaney on June 20, 2025

The market for PEOs is more competitive than ever, as numerous providers offer similar services and benefits while attempting to differentiate themselves.

Currently, focusing on employee engagement is key to helping clients build strong and motivated teams. According to Gallup’s 2025 State of the Global Workplace report, global employee engagement has dropped for only the second time since 2009—a clear signal that PEOs must rethink how they support their clients’ teams.

PEOs are uniquely positioned to help clients win at employee engagement by offering benefits that are not only attractive to employees but also deliver measurable business value.

In August 2024, we surveyed over 300 employees across several industries and generations, spanning Gen Z to Baby Boomers, for our report on the most in-demand voluntary benefits and perks. The survey respondents comprise a mix of hourly and salaried employees, representing remote, hybrid, and in-person workers from every region in the United States. This article highlights key findings from that research and explores today’s most sought-after voluntary benefits—and how they solve problems and create ROI for PEOs and their clients alike.

VOLUNTARY BENEFITS: MORE THAN JUST OFFICE PERKS

Voluntary or fringe benefits go beyond the basics of healthcare, dental, and 401(k) plans. They are customizable, cost-efficient options that offer employees flexibility, enhance their quality of life, and build loyalty. For some employees, a benefits package is a more significant deciding factor than compensation when accepting a job offer.

91% of surveyed employees said that benefits are important or very important in their decision to accept a job. 47.4% of employees said they would consider taking a pay cut at a new job for better benefits.

For PEOs, these benefits are a powerful way to differentiate service offerings, meet the needs of diverse client sets, and attract and retain new clients in a competitive market.

1. PAID TIME OFF (PTO) AND FLEXIBLE WORK ARRANGEMENTS

Your clients are probably struggling with employee burnout and retention, given the global drop in employee engagement. According to our research, PTO and hybrid/remote work options were the top two most valued voluntary benefits, each chosen by 25.4% of the surveyed employees.

PTO and flexible work arrangements directly support work-life balance. For PEO clients, enabling better time-off policies or location flexibility can lead to higher morale and reduced burnout—factors that decrease turnover and absenteeism. Start small if needed—even seasonal flexibility, such as “Summer Fridays,” can go a long way toward helping employees achieve a work-life balance.

For PEOs, creating ready-to-launch flexible work policies for clients can position your services as a powerful asset in the war for talent.

2. MENTAL HEALTH SUPPORT

A drop in employee engagement can be attributed to many factors, but poor mental health continues to impact productivity. The Gallup 2022 Well-Being Index found that missed work due to unplanned mental health leave cost the economy $47.6 billion.

With 85% of surveyed employees rating mental health benefits important, it’s clear that offerings like mental health days, mindfulness apps, and company-wide wellness initiatives would support the workforce—while also positively impacting company profitability.

Mental health support can look different based on different clients, but PEOs can offer: free or subsidized access to mindfulness apps like Calm or Headspace, training for managers to spot the signs of burnout and anxiety in their teams, and increased access to or financial support for therapy and counselling sessions.

Promoting mental wellness isn’t just good for employees—it fosters a more resilient and focused workforce, ultimately leading to improved performance. PEOs who champion mental wellness will not only build stronger client relationships—they’ll create workplaces where employees can thrive, innovate, and stay longer.

3. GYM MEMBERSHIPS AND WELLNESS BENEFITS

Wellness-related benefits are in high demand among today’s employees, who are increasingly concerned about their holistic well-being. Businesses that demonstrate care will stand out.

Consider offerings such as:

  • Subsidized gym and fitness club memberships. These are the top benefit that our survey respondents wish they had access to. 20% of surveyed employees chose gym memberships as one of their top wish-list benefits.
  • On-site or virtual classes. These can help employees build time for mental and physical health and fitness into their workdays.
  • Wellness stipends. These can be used for employees’ wellness expenses of choice.
  • Company-wide fitness challenges. Include rewards for participation and engagement.

Subsidizing or offering benefits that support employees’ physical and mental well-being shows a company’s commitment to holistic employee well-being. For PEOs, this could also lower long-term healthcare costs and promote higher engagement and productivity, which, in turn, improves client loyalty.

4. FINANCIAL WELLNESS TOOLS

In ZayZoon’s State of Employee Financial Wellness report, over half of employees reported daily financial stress. The stress is primarily coming from the pressure to cover necessities—73% of respondents stated that covering bills, rent, and groceries is their primary financial stressor.

Financial stress doesn’t clock out when employees clock in for work—it stays with them and impacts productivity and engagement. 43% of employees say financial stress impacts their focus at work. PEOs can offer financial wellness benefits that support employees’ short and long-term financial goals

In our survey, financial wellness benefits ranked as the fourth most valuable benefit for today’s employees.

Here is what financial wellness benefits can look like.

Financial education programs: Provide employees with the necessary skills and coaching to navigate tricky topics like budgeting and saving, student loan payments, retirement planning, and more.

Earned wage access (EWA): Allows employees to access already-earned wages ahead of payday, privately and without needing to involve a manager. 63% of workplaces report increased productivity after offering EWA, and 74% of employees said that having EWA available to them has improved their overall financial well-being and level of stress.

Bundled perks and discounts: Offering access to savings on everyday expenses, such as groceries, gas, or medications, helps employees access essential items with ease.

By helping companies invest in their employees’ financial health, PEOs can stand out to clients as forward-thinking and creative, especially as many of these benefits, like earned wage access, come at no cost to business owners.

5. REWARDS AND RECOGNITION

Recognition programs can be an important part of workplace engagement, with Gallup finding that employees who receive recognition are 5x as likely to be engaged at work.

Recognition, such as peer-to-peer platforms, service anniversary awards, employee awards, or even personalized thank-yous from leadership, increases employee engagement and satisfaction.

In order to create a lasting impact, recognition needs to be baked into an organization’s everyday culture. PEOs can foster this culture by providing businesses with the tools and support necessary to integrate recognition into work life.

By offering benefits that make recognition frequent and embedding it into existing workflows, PEOs can offer a low-cost, high-impact solution that is proven to increase employee engagement and foster loyalty and enthusiasm across the board.

STRATEGIC TAKEAWAYS FOR PEOS

  • Differentiation through benefits: Offering high-demand voluntary benefits and perks helps PEOs stand out as customizable and relevant in a crowded marketplace.
  • Retention and recruitment: Businesses that leverage these benefits report higher employee satisfaction and lower turnover.
  • Cost efficiency: Many voluntary benefits are low-cost or no-cost, compared to the financial impact of turnover and disengagement.

The modern workforce is evolving, and benefit expectations are evolving with it. The usual health, dental, and 401(k) are no longer enough to attract, motivate, and engage top talent.

For PEOs looking to stay competitive and drive results in a time of employee disengagement, voluntary benefits are more than employee perks. They’re strategic investments in talent and profitability.

By adopting the top voluntary benefits and perks and keeping their offerings agile, PEOs can solidify their role as indispensable partners in business success.

THE RISE OF REAL-TIME PAYROLL: WHAT PEOS NEED TO KNOW ABOUT INSTANT WAGE ACCESS

Chris Chaney Chris Chaney on June 20, 2025

In today’s competitive labor market, PEOs are increasingly asked to help client companies do more than run payroll—they’re being asked to help attract and retain talent, especially in high-turnover industries. One of the most urgent trends shaping this conversation: real-time payroll.

As workers expect faster access to their earnings, the traditional two-week pay cycle feels increasingly outdated. Employers, particularly those in industries like healthcare, hospitality, and staffing, are under pressure to offer earned wage access (EWA) and same-day pay options. Large payroll platforms have already taken steps in this direction, and PEOs will need to consider how they can respond—not in theory, but in infrastructure.

CHANGING EXPECTATIONS, TANGIBLE PRESSURE

The desire for faster pay isn’t just a convenience, it’s often a necessity. According to recent data from the Federal Reserve, a significant portion of U.S. adults would struggle to cover a small emergency expense. Many turn to short-term credit or payday loans to bridge the gap between work and payday.

Offering real-time or early wage access provides employees with greater control over their finances and can significantly reduce financial stress. Many employers see it as a loyalty-building tool: workers who know they can get paid quickly are more likely to stay longer and show up consistently.

This shift is why real-time payroll is gaining momentum—not just as a trend, but as a competitive necessity for employers and a potential differentiator for the PEOs that support them.

THE TECHNOLOGY THAT MAKES IT POSSIBLE

Real-time payroll is powered by two key innovations in U.S. banking: the RTP® network, run by The Clearing House, and FedNow®, the instant payment rail launched by the Federal Reserve in 2023. These systems allow funds to move between institutions within seconds, 24/7/365—including nights, weekends, and holidays.

The number of participating financial institutions is growing rapidly, enabling broader access to real-time payments across the workforce. However, this new capability requires more than just access to fast rails—it also demands new processes for liquidity, payroll logic, and settlement timing.

PEOs considering real-time payroll will need to plan carefully, or they risk building a system that adds complexity without delivering value.

WHAT PEOS SHOULD CONSIDER

Offering real-time pay involves more than just flipping a switch. While the benefits are clear, the implementation requires careful planning across multiple dimensions.

Funding Models. Real-time payments must be pre-funded. PEOs need a reliable mechanism to ensure payroll liquidity is available before initiating payments. Many experienced providers now offer wire-based pre-funding, where employers send funds ahead of payroll and reserve-based funding, where a retainer balance is maintained and auto-replenished once it dips below a defined threshold. The reserve-based funding approach reduces disruption while providing the reliability required for 24/7 wage disbursement.

Employee Eligibility. Not all employees can currently receive instant payments. Eligibility is based on whether an employee’s bank or credit union participates in RTP® or FedNow®. To manage this efficiently, some modern platforms include routing number intelligence that can automatically identify eligible employees and route others through fallback methods like Same-Day or Next-Day ACH. This logic ensures consistent, compliant pay delivery—without asking payroll teams to manually sort transactions.

Integration and Simplicity. Many PEOs hesitate to implement real-time pay due to concerns about complex file formats or workflow changes. But newer solutions allow PEOs to continue using their standard NACHA file, removing the need to build or support new file structures. For PEOs with proprietary software, API-based options allow for secure integration without overhauling the tech stack.

Working with a partner that prioritizes compatibility can significantly reduce rollout time and cost.

STRATEGIC ADVANTAGES FOR PEOS

Beyond employee satisfaction, real-time payroll offers measurable benefits for PEOs:

  • Client Retention and Differentiation: Offering real-time pay helps PEOs stand out, especially in industries facing labor shortages.
  • New Revenue Opportunities: Some PEOs bundle instant pay as a value-added service or premium feature.
  • Operational Efficiency: When employees have access to earnings in real time, support calls and payroll inquiries often decline—reducing administrative burden for client HR teams.

In other words, real-time pay can move the needle both financially and operationally.

PROCEED STRATEGICALLY—BUT DON’T WAIT TOO LONG

Real-time payroll is becoming a competitive standard. But jumping in without a clear roadmap can create unintended consequences. PEOs should look for partners who not only provide access to RTP® and FedNow®, but who also understand the funding workflows, eligibility logic, security controls, and compliance requirements specific to the PEO model.

Whether through a native payroll integration or a platform overlay, it’s critical to choose a solution that minimizes disruption, uses existing file formats where possible, and scales with your client base.

The era of waiting for payday is ending. Real-time payroll is more than a feature—it’s becoming an expectation, especially in industries that rely on flexibility and speed to compete for workers.

For PEOs, now is the time to explore the infrastructure, processes, and partnerships needed to support this shift. Those who plan early and execute with the right tools will not only meet client expectations—but exceed them.

THE HIRING COMPLIANCE TIGHTROPE

Chris Chaney Chris Chaney on May 9, 2025

States like California, Colorado, Illinois, and Washington have implemented strict pay transparency laws, with penalties for non-compliance reaching thousands of dollars per violation.

IS DEI LEGALLY DEAD?

Chris Chaney Chris Chaney on May 9, 2025

While it may be premature to sign DEI’s death certificate, winds have clearly shifted. Fundamentally the law has not; discrimination based on protected class status was already illegal, being all-welcoming remains legal (if sometimes unpopular).

PARTNERS IN WELL-BEING: HOW PEOS CAN HELP SUPPORT WORKSITE EMPLOYEE WELLNESS

Chris Chaney Chris Chaney on April 9, 2025

Benefits management in today’s rapidly evolving landscape can be challenging. In fact, according to Guardian’s recent report, The Power of PEO Partnerships, 63% of businesses with less than 50 worksite employees strongly agree that managing benefits has become more complex.

Yet this space is also ripe with opportunity. Especially as worksite employees nationwide often struggle with their mental, physical, and financial health, PEOs have the chance to help make a real difference for employers and their workforce—supporting healthy, engaged, and productive employees.

Here’s how to get started.

WHY WELL-BEING MATTERS

Serving as effective strategic partners and supporting a culture of wellness starts with understanding the well-being challenges facing today’s worksite employees.

According to Guardian’s latest Mind, Body, and Wallet® report, just one in three full-time working Americans said they’re doing well. In particular, self-reported financial wellness is significantly lower than in the past. Compounding concern is the reality that mental, physical, and financial health don’t exist in silos but rather affect one another.

For PEOs, knowing the primary concerns facing worksite employees and how the mind, body, and wallet intersect can be foundational. All efforts to support employee well-being should stem from this understanding.

THE ROLE OF WORKPLACE BENEFITS

With an understanding of the state of employee well-being today, PEOs should then consider the role that benefit offerings have in meeting these needs. Many will find that when the right benefits are offered, they’ll see corresponding improvement in recruitment, retention, engagement, and overall business success.

Of course, traditional benefits such as life, disability, vision, and dental insurance are essential offerings. Making them available to worksite employees can directly impact employee wellness, and they are key elements of any PEO’s benefit offerings. Yet, given the interconnected and evolving well-being needs of today’s worksite employees, PEOs may also need to go a step further.

For instance, financial protection products like supplemental health insurance can go a long way towards addressing wallet-related stressors for worksite employees. According to Guardian research, just over half of workers believe their health insurance would be enough to help cover any major medical event that may occur. To fill this gap, supplemental health insurance offerings such as accident, critical illness, hospital indemnity, or cancer insurance can help provide a benefit payment directly to employees when they need it most. Plus, some supplemental health policies also offer a wellness reimbursement simply for completing a covered wellness screening or procedure.

Then there are the millions of worksite employees who may also have caregiving responsibilities. These caregivers aren’t just becoming a larger portion of the worksite employee population; they’re having to spend more time on care-related responsibilities—up from 9 to 26 hours a week since 2020.

Whether trying to manage a doctor’s appointment for an aging parent with complex medical needs or sourcing backup childcare for younger children, these caregiving responsibilities may lead to decreased productivity, lower employee engagement, and an increased likelihood of a worksite employee needing to take a leave of absence from work.

While there are a variety of HR policies that can be implemented to help support caregivers, employee benefits have a role to play, too. In fact, some carriers have begun to include caregiver support services—including a caregiving concierge, peer support network, or digital planning tools—within employer-provided insurance policies. Their impact is clear; data suggests that when employees use these services, 90% reported being more engaged and less stressed at work, 66% missed fewer meetings, and 33% were able to avoid taking a leave of absence from work.

DRIVING ENGAGEMENT

Once PEOs are confident that they are offering the right benefits to help meet evolving well-being needs, the next step is making sure worksite employees engage with their wellness benefits.

With more than half of employers saying they would be interested in a single platform through which all wellness-related benefits could be made available, it’s clear that access and simplicity are essential. Many carriers are working to answer this call, and PEOs should engage their carriers to find out what digital hubs or resources are available.

While technology is a powerful tool at a PEO’s disposal, don’t overlook the impact of in-person engagement. Whether a reminder of wellness benefits perks tied to key awareness months or sharing testimonials from colleagues on how they were impacted from their wellness benefits, ongoing benefits education and engagement is critical. When benefits are top-of-mind, they are more likely to be used.

MEETING THE MOMENT

As worksite employees continue to face well-being challenges, PEOs can play a key role on their wellness journey, especially when working alongside partners who can bring to bear a carefully curated and integrated ecosystem of mind, body, and wallet solutions.

By taking time to understand what matters to worksite employees, offering the right benefits, and supporting engagement efforts, PEOs can help make a difference.

Get started today.

AI MUST-HAVES FOR PEOS: ELEVATING HEALTH BENEFITS & STRENGTHENING CLIENT RELATIONSHIPS

Chris Chaney Chris Chaney on April 9, 2025

PEOs have helped businesses manage HR, payroll, compliance, benefits, and more for decades. As healthcare costs soar and employee expectations evolve, traditional PEO models are being tested … to their breaking point.

As these market pressures mount, it’s no surprise that many organizations, including many PEOs, are looking to artificial intelligence to maximize return on client investments.

AI and machine learning models aren’t just back-office automation tools anymore. They’re competitive differentiators in how PEOs deliver value, client support, and workforce insights.

This is our new reality: PEOs that integrate AI into core client operations like employee support, compliance, and benefits administration will thrive.

Those that don’t will undoubtedly struggle to keep up.

HOW AI STRENGTHENS THE PEO-CLIENT RELATIONSHIP

AI is such a tired-out buzzword that it now feels like a four-letter word. However, these models have massive untapped business efficiency and growth potential, particularly when maintaining client relationships and reducing churn risk. PEO leaders can deliver meaningful value in the long run by optimizing core operations for AI on behalf of clients.

AI-POWERED HEALTH BENEFITS NAVIGATION: A GAME-CHANGER FOR PEOS

For many PEOs, benefits administration is a significant cost center. However, benefits are also a key selling point for clients. Despite this tension, benefits remain a strategic priority for PEOs that bears real fruit for client growth.

Working with PEO partners and leading organizations in the benefits and health insurance industry, I’ve seen firsthand how artificial intelligence enhances the benefits experience.

Real-time, 24/7 answers to employee benefits questions like, “Is my MRI covered,” and “How much have I paid toward my deductible?” Helping employees select best-fit health plans during open enrollment. Boosting in-network provider utilization lowers claims costs for clients and their employees. These are just a few ways AI is transforming the employee benefits landscape.

I’ve seen one of my PEO partners use AI-powered benefits guidance to normalize premiums across their client base. I’d say that’s a win-win for both the client and the PEO.

AI-DRIVEN COST CONTAINMENT: HELPING CLIENTS REDUCE EXPENSES

Health benefits are one of PEO and their clients’ most significant cost drivers. Artificial intelligence promises real financial return on investment by steering employees toward cost-effective healthcare options.

Using AI for cost containment can take a few forms, but the most common methods I’ve seen are:

  • Aggregated and de-identified claims data can be used to offer real-time cost transparency for procedures so employees can make informed choices.
  • Identifying potential use of unnecessary ER visits and steering employees toward more affordable telehealth or urgent care options.
  • Tracking benefits utilization trends to help PEOs optimize their plan designs across their client base during renewals.

AI even has the power to prevent wasteful healthcare spending by guiding employees through personalized plan selection processes. These processes empower employees to make informed plan choices by analyzing their usage patterns and recommending the most cost-effective options first. Employees get the coverage they need without paying for what they won’t use.

AI IN COMPLIANCE AND RISK MANAGEMENT: A PEO DIFFERENTIATOR

Keeping up with evolving healthcare regulations is a burden for businesses, yet another reason they turn to PEOs. AI can also support PEOs as they strengthen compliance by automatically flagging policy updates that impact clients.

One of the most significant areas of confusion and change regarding compliance is the health benefits space, especially as shifting fiduciary responsibilities lurk in the shadows. AI can help PEOs and their clients understand their current operations and act as a support system when scanning benefits data for compliance risks.

While AI can’t ensure adherence to ACA, COBRA, HIPAA, and other regulations outright, it can act as a secondary layer of protection — a net ready to help you catch risks before they fall through the cracks.

ENHANCING EMPLOYEE EXPERIENCES: AI-POWERED BENEFITS ENGAGEMENT

Today’s workforce expects consumer-grade, high-tech experiences in more and more areas of life, including benefits and healthcare delivery.

Artificial intelligence can support this vision of an enhanced employee experience by providing hyper-personalized benefits insights and navigation based on utilization history. By automating healthcare and benefits recommendations, PEOs can help their clients encourage preventive care and reduce long-term healthcare costs.

The employee experience goes beyond the general employee experience, diving into the specific needs of employee subpopulations. For example, AI can help clients surface point solutions, ancillary services, and mental health resources to the employees who would most benefit from their usage. An employee with chronic back pain may not know about an MSK point solution offering, so by routinely surfacing this option in the healthcare navigation experience, PEOs can increase the utilization of healthcare spending across the benefits ecosystem.

PEOs are crucial to high-quality employee experiences. I’ve seen the highest-performing PEOs win higher employee satisfaction and retention through better benefits engagement, making this a strategic value-add.

AI BENEFITS ADMINISTRATION IN ACTION

AI hasn’t just reduced administrative burden. AI has deepened PEO–client relationships by making health benefits more transparent, cost-effective, and employee-friendly.

One of my largest PEO partners has been able to streamline benefits management across its entire book of business using platforms powered by artificial intelligence, balancing cost containment and improving user experiences. AI translates into real-time savings for client success, call center, and account management teams for this PEO.

EMERGING AI TRENDS PEOS CAN’T IGNORE

Mental health support is in high demand among employees. Healthee’s recent research report reported that mental health was the most-searched care category among users last year, accounting for 8.61% of all searches.

AI-driven mental health solutions and instant-access telehealth solutions can help address this growing need with 24/7 anonymous support, reducing long-term disability claims and improving productivity.

AI AS THE FUTURE OF PEO GROWTH

AI is not replacing PEO functionalities or HR professionals. AI is here and ready to enhance the ability to deliver more innovative health benefit experiences and a better client offering.

PEOs that embed AI into health benefits will strengthen client relationships, reduce claims costs, and enhance employee engagement. Strategic implementation is key — aligning AI solutions with client needs and workforce expectations.

For PEOs, the question is no longer: “Should we implement AI?” It’s: “How fast can we deploy AI to deepen our client relationships?”

The next generation of PEO success will be defined by who uses AI best, and the time to start is now.

PREPARING FOR 2025: KEY HR TRENDS IMPACTING PEOS

Chris Chaney Chris Chaney on March 7, 2025

The ability to adapt and innovate will set forward-thinking organizations apart. By staying ahead of these trends, PEOs can position themselves as indispensable partners in creating workplaces where employees feel valued, engaged, and motivated to succeed.

DEVELOPING A TRAINING PLAN FOR HR COMPLIANCE

Chris Chaney Chris Chaney on January 31, 2025

An effective HR compliance training plan is essential for any organization committed to fostering a safe, fair, and legally compliant workplace. With ever-evolving federal and state regulations, businesses face the constant challenge of staying up to date while ensuring their workforce is properly trained on key compliance issues.

HR compliance isn’t just about meeting legal requirements—it’s an opportunity to engage employees, foster trust, and build a thriving workplace culture. For professional employer organizations (PEOs), delivering engaging and effective HR compliance training can set the tone for their clients’ organizational success. When done right, compliance training becomes a tool for empowerment, connection, and shared responsibility.

WHY ENGAGING HR COMPLIANCE TRAINING MATTERS

Think of HR compliance training as a strong foundation for a building—without it, the entire structure is at risk. Businesses that fail to prioritize it expose themselves to costly lawsuits, reputational damage, and even regulatory penalties.

While it can sometimes be seen as a dry necessity, HR compliance training has the potential to drive meaningful engagement. It helps employees:

  • Understand their roles: Clear expectations create confidence and clarity.
  • Feel valued: Training reflects an organization’s commitment to their well-being and professional growth.
  • Contribute to culture: Engaged employees actively support a fair, inclusive, and compliant workplace.

A 2023 survey by the Society for Human Resource Management (SHRM) revealed that 81% of HR professionals identified maintaining employee morale and engagement as a top priority for their organizations. Compliance training that engages employees also helps build trust, boosts morale, and strengthens workplace relationships.

KEY AREAS OF HR COMPLIANCE TRAINING

Sexual Harassment Prevention

Preventing sexual harassment is about more than following regulations—it’s about creating a safe and respectful workplace. Engaging employees in this effort requires more than a traditional lecture format.

Engagement strategies:

  • Use real-world scenarios and role-playing exercises to illustrate concepts.
  • Incorporate interactive elements like polls or group discussions.
  • Offer clear and relatable examples of acceptable and unacceptable behaviors.

Training objectives include: Define sexual harassment and legal standards, explain how everyone plays a role in creating a safe workplace, and Emphasize the importance of immediate reporting and support mechanisms.

Key laws: Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA).

Anti-Discrimination Policies

Anti-discrimination training fosters a sense of belonging and inclusion when employees see it as a shared commitment rather than a mandated requirement.

Engagement strategies:

  • Use storytelling to highlight the impact of discrimination and the benefits of inclusion.
  • Facilitate open dialogues to encourage employee participation.
  • Highlight success stories of diverse and inclusive workplaces.

Training objectives include: Identify protected classes under federal and state laws, recognize and prevent discriminatory practices, and promote equity and inclusivity in day-to-day operations.

Key areas to address: Recruitment, promotions, performance reviews, and workplace culture.

Key laws: Civil Rights Act of 1991, Pregnancy Discrimination Act, and Uniformed Services Employment and Reemployment Rights Act (USERRA).

Substance Abuse Awareness

Addressing substance abuse is vital for maintaining a safe and productive work environment. Engaging employees in this area requires sensitivity and support.

Engagement strategies:

  • Provide interactive resources such as self-assessment tools.
  • Highlight available support programs, such as Employee Assistance Programs (EAPs).
  • Use multimedia content to illustrate the impact of substance abuse on individuals and teams.

Training objectives include: recognize signs and symptoms of substance abuse, understand the company’s substance abuse policy, and promote resources for seeking help.

Key laws: Drug-Free Workplace Act (DFWA), Occupational Safety and Health Act (OSHA), and the Family and Medical Leave Act (FMLA).

Wage And Hour Compliance

Ensuring fair compensation is essential for employee trust and satisfaction. Engaging employees in wage and hour compliance training can create transparency and understanding.

Engagement strategies:

  • Create engaging visual aids, such as charts or infographics, to explain wage computations and make the process easier to understand.
  • Conduct Q&A sessions to address common concerns.
  • Incorporate interactive elements to reinforce key concepts.

Training objectives include: clarify employee rights and responsibilities regarding wages, address key wage and hour laws, including the Fair Labor Standards Act (FLSA), and promote transparency in compensation policies.

Best practices to keep in mind: regularly audit payroll practices to ensure accuracy and fairness, maintain clear communication about wage policies and updates, and encourage employees to ask questions and provide feedback on policies.

STEPS TO CREATE ENGAGING COMPLIANCE TRAINING

Transforming compliance training into an engaging experience requires creativity and focus. Here’s how PEOs can make training more impactful:

  1. Tailor training to your audience. Understand the unique needs of your client’s workforce. Customize training content to reflect their industry, workforce demographics, and organizational culture.
  2. Use interactive technology. Leverage tools like Learning Management Systems (LMS) to deliver dynamic and engaging training experiences.
  3. Make it relatable. Use real-world examples and relatable scenarios to connect with employees. Tailor training to address common challenges and experiences within their roles.
  4. Incorporate feedback. Regularly collect feedback from participants to understand what works and what doesn’t. Use this data to continuously refine and improve your training program.
  5. Celebrate the wins. Recognize employees who actively participate in and support compliance initiatives. Celebrate milestones to reinforce the importance of ongoing engagement.

MEASURING THE IMPACT OF ENGAGEMENT

To ensure ongoing improvement, it’s critical to measure the success of your compliance training efforts. PEOs can:

  • Track participation rates: High attendance is a good indicator of interest and buy-in.
  • Assess knowledge retention: Use quizzes and follow-up surveys to test understanding.
  • Gather employee feedback: Identify strengths and areas for improvement through anonymous evaluations.
  • Monitor compliance metrics: Look for reductions in compliance violations or related complaints.

THE ROLE OF ENGAGEMENT IN LONG-TERM COMPLIANCE

Engaging compliance training is not just about ticking a box; it’s about creating a culture of accountability and respect. When employees feel connected to the mission of compliance, they are more likely to: Retain information and apply it in their daily roles; report issues promptly and responsibly; and contribute to a positive and inclusive workplace environment.

For PEOs, developing a robust HR compliance training plan is more than a service offering; it’s a strategic advantage. By proactively addressing compliance risks and fostering a culture of accountability, PEOs can empower their clients to thrive in an increasingly complex regulatory environment.

Investing in comprehensive, ongoing training isn’t just about avoiding penalties—it’s about building a workplace where employees feel valued, respected, and safe. With the right tools and strategies, PEOs can lead the charge in creating compliant, productive, and inclusive workplaces for their clients.

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