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Where Technology is Taking PEOs, and Vice Versa

The PEO industry and technology have both had amazing journeys of development and innovation over the last three and a half decades. Much PEO progress is directly tied to technological advancements. As the PEO industry matured and grew, technology became more and more a part of the PEO operation. Today, technology is not only essential for PEO internal workings, but has also become an important benefit for clients and worksite employees.

This feature provides a picture of where technology stands with the industry right now. The PEO’s technological framework is the foundation that serves as the company’s infrastructure, supporting all of the software and applications that allow the PEO to run. To make the most of their technology, PEOs should stay up-to-date with patches, software updates, and hardware refreshes and upgrades.

Technology roadmapping helps the PEO execute on its strategic goals. It creates a path from your human capital management system to the products and services needed to serve clients, as well as your “secret sauce,” which makes your PEO unique.

While Software as a Service (SaaS) has been around for a while, the technology continues to evolve and spinoffs frequently emerge. This complicates the questions of when to migrate from on-premises to SaaS, how it fits your organization, what investments are needed, how to make the transition, and how security is handled.

Nothing exemplifies the joint journey of the PEO industry and the technology industry like this month’s PEO innovator. This PEO started in the early 1980s and grew and developed along with technology. The company embraced the various iterations of “cutting-edge” technology, took novel approaches to problems, leveraged innovation, and came out in an unexpected, but good, place.

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Benefits Check-Up

A competitive benefits package that attracts top talent and inspires loyalty doesn’t have to be exclusive to Fortune 100 companies and Silicon Valley startups. Sure, weeks of paid parental leave and free college tuition make for splashy headlines, but what employees care about most is having a wide array of benefits choices to help address their unique needs.

Information Technology

How to Survive a Data Breach

A PEO is a virtual treasure chest of personally identifiable information (PII). One errant email attachment or one stolen laptop can force a PEO into a fight to save its reputation. For example, take these two possible scenarios: Scenario Number 1. The client of a PEO requests a report that includes employee Social Security numbers (SSNs) and bank account numbers. It is the end of a long day. The payroll specialist creates the report, addresses the email, and hits send. Worst of all...

Start-up Guide

Starting a PEO: First, Understand the Ups and Downs

Thinking of starting a PEO? Some might tell you to think twice about it, but my advice is to carefully consider the challenges ahead and get ready for the thrill ride of your life.


The Inside Word

Is it Time to Grow the Tent?

I have been insured by USAA since 1971, when I turned 16 and bought my first car, a used 1966 Mustang with a standard transmission, straight six-cylinder engine, cherry bomb muffler, and an eight-track tape player, the latter two items added by me! My dad, the Colonel, had been a member since the ‘50s. I became a member of USAA in my own right in 1980, when...

NAPEO Notebook

Music, Thinking Through Unintended Consequences, and Market Research Patrick J. Cleary

This has been a busy travel month for me, lots going on. It’s not all been work—I managed one fun trip to Muscle Shoals, Alabama, for the Alabama Music Hall of Fame Gala with Lyons HR CEO Bill Lyons. All work and no play, you know… But the rest of the trips have found me in St. Pete, Cincinnati and Houston, Palo Alto, Tallahassee, and soon, Austin.

Up Front

NAPEO Branding/Marketing Project on Schedule Kerry Carruthers

It’s been more than two months since we updated you in this space about NAPEO’s ongoing branding research and marketing effort to grow the industry and drive new business to our members, and so much has happened since then. The research portion of the project is almost complete, and the folks from Povaddo, the firm we chose to spearhead the project, will soon begin compiling their report on the research findings and their conclusions. We cannot wait to find out everything they have learned!

Statehouse Update

Taxing Issues Daniel Harris

It is often said no man’s life, liberty, or property is safe while the legislature is in session. And budget proposals from a state can be one of the most fear-inducing processes a state will tackle in a given year. A state’s attempt to produce a budget can put most businesses on the proverbial chopping block as states look for new ways to increase budget revenue.

Capitol Comment

Tax Reform Thom Stohler

The tax reform bill recently signed by President Trump creates a new income tax deduction for certain types of business owners. Specifically, this new deduction allows taxpayers to deduct, solely for federal income tax purposes, the “combined qualified business income amount” from a pass-through entity in an amount up to 20 percent of the taxpayer’s taxable income, after the deduction of any net capital gain.

Legal Q&A

Cybersecurity, Tax Law Developments Farrah L. Fielder, Esq.

Q. What is NAPEO doing in regard to member awareness of cybersecurity risks? Will we ever see best practices for PEOs in this area? A. The NAPEO Cybersecurity Task Force, a cross section of professionals with expertise in insurance, law, technology, and the business environment of PEOs, meets weekly to discuss ways to help PEOs guard against and respond to cybersecurity breaches. As an initial step, the task force created a ...

PEO Index

PEO Index Weakens Slightly John Slavic

The PEO Employment Index indicates a slight weakening in the last few months. This is likely attributed to labor constraints and shifts in the small business sectors.

PEO Spotlight

The TLC Companies: Rod Jordan Chris Chaney

In 2001, Rod Jordan, then wrapping up a new start-up assignment, saw a newspaper ad for a general counsel with an HR background, posted by Minneapolis-based The TLC Companies (TLC). Because of his background in HR and legal affairs with Jostens, Inc., Jordan thought he might be a good fit for the position. Then he learned that TLC called itself a PEO. Jordan had not heard that term before, but nonetheless he was not deterred.

The Big Picture

Rebuild Now: Infrastructure’s Time Has Come Thomas J. Donohue

With tax reform finally signed into law, it’s time for Washington to tackle the next big item on America’s to-do list: the large-scale modernization of our infrastructure. The American business community is a major stakeholder in this debate. Businesses of all sizes rely on infrastructure to ship products, transport workers, power stores and offices, communicate with the world, and so much more. But America’s infrastructure has fallen behind today—and it’s holding our economy back.


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