NAPEO
December 2019/January 2020
THIS MONTH'S FOCUS: The Different Sides of HR
THREE TOOLS FOR HANDLING COMPLIANCE RISK
Gone are the days of the personnel manager, as the field of human resources has evolved and developed. HR executives have made their way into the boardrooms of large companies as HR directors, vice presidents, and even chief people officers. While small and mid-size companies don’t always have the luxury of internal HR expertise, they do have PEOs. A big part of the HR equation, though, is handling risk, which protects the client, the employees, and the PEO.
BY RICHARD A. HOOKER, ESQ. AND TIFFANY K. SNOW, ESQ.
December 2019/January 2020CONTENTS
FEATURED
BRINGING THE FULL HR PACKAGE TO BLUE-COLLAR INDUSTRIES
It’s been a pretty good run so far—26 years owning and operating a PEO. We are still learning and growing and going. I absolutely love this industry and everything about it, even the icky stuff! My “why” hasn’t changed since the day we began back in 1993. As a young, ambitious sales rep providing temporary laborers to contractors, I quickly learned that contractors were outsourcing their labor forces and hiring temps because it was cheaper to do so due to astronomical workers’ comp rates. Either because of mismanaged claims that led to high experience mods or due to their high-hazard class codes being surcharged—whatever the reason—I found it crazy and ludicrous that the solution was to hire temporary employees because it was cheaper.
BY MICHELLE WIGHTMAN
December 2019/January 2020DEVELOPING TRENDS IN A MULTI-GENERATIONAL WORKFORCE
It is not difficult to find articles about emerging HR Trends for 2020. Also plentiful are resources about managing a multi-generational workforce. But what happens when these two intersect? Should employers with multi-generational workforces look toward implementing policies and procedures around these new trends differently, or is there a one-size-fits-all approach? While HR professionals may think they are doing the “right” thing by having heightened focus or sensitivity toward a certain generation in an effort to prevent or avoid conflict, that approach could have a negative impact on the workforce or company culture. On the other hand, there may be times when implementation and communication should be mindful of generational differences.
BY KELLEE J. CUETO, ESQ.
December 2019/January 2020JOURNEY OF A CLIENT: FROM DISENGAGED TO ENGAGED EMPLOYEES
Recently, one of our clients approached us about needing help to resolve several employee-retention challenges they were having. They were experiencing high employee turnover rates (38 percent), and an inefficient, broken selection process. They were throwing a lot of money and manpower at off-the-shelf training for managers and their teams, but still experienced the same results. Exit interview data was very negative, specifically related to manager interactions and the onboarding experience. I shared that we previously engaged a talent strategy consultant to help us with other clients facing the same challenges and that they should consider the same.
BY ORLANDO VILLALONGA
December 2019/January 2020JURISDICTIONAL CHALLENGES OF CHANGING STATE LAWS
As PEOs, the bedrock of our business is solving challenges so clients can focus on increasing profitability and business growth. We know the value PEOs bring clients as experts in human resources, payroll, benefits, and risk. But how do we reduce legal risks for clients—without increasing our own—with the rapid changes in employment laws and regulations?
BY KIM FREEMAN
December 2019/January 2020LAYING THE GROUNDWORK FOR STRATEGIC HR EARLY
Like with many other PEOs, our clients partner with us for help with fundamental HR needs such as payroll, benefits, and compliance. But, from the onset of the relationship, we guide the conversation to the subject of strategic HR initiatives. And rightfully so, as it is the surest way to engage employees and align them to the goals of the business. Companies need to start this planning sooner rather than later, but at what point in their growth? Depending on the reporting structure, this can mean as soon as they have 10, five, or even two people. PEOs are well-suited to help lay the groundwork for these plans.
BY MICHAEL POLYDORIS
December 2019/January 2020SAFETY IMPLICATIONS FOR EMPLOYERS: CANNABIS REALLY IS COMPLICATED
The ongoing decriminalization of cannabis, not just for medical but also for recreational purposes, is changing our country’s safety conversation. A majority of Americans now live in states that allow either medical or recreational use. While the public has come to support easing legal restrictions on marijuana, most recognize that this substance carries genuine risks that employers and public health officials must tackle.
BY LORRAINE M. MARTIN
December 2019/January 2020THE SEA CHANGE IN INDEPENDENT CONTRACTOR LAW: WHAT IT MEANS FOR YOU
California Governor Gavin Newsome recently signed into law Assembly Bill 5, which adopts the “ABC test” for determining employer-employee status under the California Labor Code. The ABC test makes it more difficult to treat a service provider as an independent contractor (IC), significantly expanding liability for IC misclassification.
BY JOHN M. POLSON, ESQ.
December 2019/January 2020TRACKS
Human resources and compliance are PEO core values. When I meet with a potential client, I first learn about why the business owner agreed to a meeting with a PEO. Not too long ago, the primary topic that drove the meeting was employee benefits. Today, human resources and compliance are equal drivers. The role of human resources has evolved from “hire and fire” to a critical part of a company’s culture. One of the main reasons for low employee retention is poor HR policies.
BY ANDREW LUBASH
December 2019/January 2020Holiday Party Etiquette, Spreading Cheer, Communicator of the Year
• While holiday parties are meant to be fun, things can go awry if you don’t comport yourself professionally. Luckily, there is no shortage of advice from the experts. • A few years ago, when NAPEO member Steve Bentley’s hair and beard turned white, children and adults alike started whispering in his ear, saying, “I’ve been good all year” and “Hi, Santa.” • NAPEO Board Member Charlie Vance was named “CEO Communicator of the Year” recently by the Cincinnati chapter of the Public Relations Society of America.
BY
December 2019/January 2020HOW TO SET UP COMPLIANT RETIREMENT PLAN GOVERNANCE
A cornerstone of effective retirement plan governance is identifying the individuals who will serve as fiduciaries with oversight responsibility for the plan. Effective plan governance is key to controlling risk such as fiduciary, litigation, and compliance risk. This article will address how to properly establish a fiduciary committee (often referred to as a “retirement plan committee” or “investment committee”) in a way that limits the liability exposure of a PEO’s governing body, senior management, and others who are not involved in plan-related activities, as well as steps a PEO can take to protect the committee.
BY ROGER J. ROVELL, J.D., LLM
December 2019/January 2020As I write this, we’ve all just returned from the NAPEO Board of Directors meeting. You may recall that our November board meeting is always in our chair’s home town. That took us to Honolulu last year (Barron Guss) and to New York City this year with Andy Lubash.
BY PAT CLEARY
December 2019/January 2020PAYROLL & ACCOUNTING: A VITAL CONNECTION
In the PEO world, most of us would agree that the accounting function is a bit atypical when compared to a traditional business model. PEO accounting departments many times take on a more substantial role in supporting clients; members of the accounting team tend to be more client-facing than in other industries. For that reason, it is extremely helpful, if not essential, that the accounting department has a strong connection with the payroll team to optimize the client experience and facilitate timely and accurate issue resolution.
BY WENDY KATZ
December 2019/January 2020PEO PULSE SURVEY Q3
NAPEO’s Pulse Survey for the third quarter of 2019 shows that profits are less robust, and most PEOs expect modest worksite employee (WSE) growth for 2020.
BY
December 2019/January 2020POSITIVE EFFECTS OF THE OCTOBER PUSH
Yes, we know it’s December already, but here at NAPEO we’re still basking in the glow of the October Push, our month-long effort to help “move the needle” on industry awareness and visibility. The premise was simple: If we all commit to marketing for the month—in other words, if everyone does something—we will make a difference and we will raise the profile of our industry.
BY KERRY CARRUTHERS
December 2019/January 2020REFLECTIONS ON A CAREER OF COLLABORATION, GROWTH, & LEADERSHIP
Midge Seltzer is the co-founder of NAPEO member Engage PEO. On July 31, 2019, she stepped down from her day-to-day role at Engage and will remain in a consultant role for a year as she transitions to retirement. For two decades, she has served NAPEO and the industry in a variety of roles, including chairing several NAPEO committees and serving as chair of NAPEO’s Board of Directors.
BY CHRIS CHANEY
December 2019/January 2020THE EEOC & THE EEO-1: WHAT YOU NEED TO KNOW
You may have read more about the Equal Employment Opportunity Commission (EEOC) in the last year than you had in the five years before that. One big reason: The filing of a “new” Form EEO-1, which for the first time required all private-sector employers with 100 or more employees to submit detailed information about their employees’ compensation and hours worked, sorted by race, ethnicity, gender, and job category.
BY JAMES A. PARETTI, JR., ESQ.
December 2019/January 2020