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The InfluencersCover Story for Oct. 99The PEO industry would not be where it is today without many committed people. By Yvonne Koulouthros Much has changed since the PEO industry began as a novel notion some 20 years ago. And in that timespan, numerous people have contributed their skills to making the industry a forceful presence. To be sure, much work lies ahead. But the groundwork is done, the foundation is laid. And this wouldn't be the case were it not for some key, influential individuals who have substantially impacted the PEO industry. The people who initiated and implemented this industry are confident, aggressive, courageous, take-charge types with conviction, who have added some of their own vision and creativity and have become the PEO industry's champions. These leaders have inspired others and offered example after example to prove that the PEO concept, even in its earliest and darkest hours, even when it wobbled and sometimes veered off in the wrong direction, was worth fighting for and pursuing. In this first-ever compilation, we recognize these "influencers"-the innovators, educators, legislators, defenders, trainers, and entrepreneurs. These individuals have all been instrumental in ultimately changing the way PEOs operate; indeed, PEOs are increasingly seeing themselves as providers of HR services and not just payroll companies. We must also point out that this listing cannot, naturally, include every noteworthy person in the PEO industry. Furthermore, a few individuals whom we contacted were not available for inclusion in this issue (stay tuned): Administaff's Richard Rawson and Paul Savardi, NAPEO's Milan Yaeger, and The Alcott Group's Lou Basso; we believe, nonetheless, that these individuals have been just as influential as the others featured here. And some others, such as those on The ProEmp Journal's masthead, were added after much deliberation. In the end, those we chose were based on our understanding and perception of the industry, as well as on discussions with a range of people who know and work in the industry. Our criteria were that the selected had done at least two of the following: shaped legislation, contributed to the education of not only people in the industry but outside of it as well, developed the PEO model and certain industry standards, implemented and shared training programs, and established PEO management skills. We believe that this impressive (though not all-inclusive) group of individuals, because of their work in the PEO industry's early history, will also be among those who set the course for PEOs in the future-in addition to many others, we know. For although PEOs are here to stay, there's still much more work to be done: universal corporate awareness, more benign legislation, greater understanding and support from the vendor community, more positive attention from the media…. The 19 here are listed by the number of years they've spent in the industry, from most to least, but we're the first to admit that quantity is not the same as quality-a distinction we believe too subjective to apply to a list's order. All these individuals have essentially contributed the best of their own strengths to help make the PEO industry what it is today, a fabulous achievement in itself, given its relatively short lifespan so far. We hope you enjoy our exclusive report, on those who have made… all the difference.
Gordon Brown As one of the early visionaries who's been linked with the PEO industry for over 20 years, Gordy used his experience as an insurance broker and an established business owner to start probably the first PEO, Sherman Oaks, California-based Your Staff, Inc., in 1979. Gordy served as the majority owner, president, and CEO until 1994, when he directed the sale of Your Staff to a public company, Kelly Services. At the time of sale, it was a $100-million PEO operating in three states. From the moment he entered the PEO industry, Gordy diligently submerged himself by laying out the guidelines for a successful beginning. In the words of Lou Basso, president of Farmingdale, New York-based The Alcott Group, Gordy is "a true believer and great spokesman for the industry-probably the one person who made NAPEO what it is today, for he used his own personal time to promote the industry." It wasn't easy, though. The progression of the PEO industry was not always steadfast or encouraged by "outsiders" as a legitimate organization, and due to a lack of responsible and ethical behavior from several staffing-type companies in the 1980s, a turbulent and controversial period arose, Gordy recalls. In addition, the IRS was questioning the value of the industry because those companies abused the "payroll system" by not paying for such things as workers' compensation fees or taxes; essentially, this created a contention that anyone in the business could be audited at any given time-a controversy that still plagues the PEO industry to this day. But as a strong advocate of the industry, Gordy dutifully and persistently represented NAPEO before the IRS, federal legislators, and state and federal unemployment agencies on all PEO-related issues, licensing in particular. Bringing financial integrity to the PEO business was something that Gordy felt especially motivated to do. "I have always taken pride in the level of commitment by the 'forefathers' of this industry," he says. "And furthermore, I feel especially proud to be a part of that early leadership that has brought this industry into the forefront of the business world. PEOs must become recognized as a legitimate business in order to stand the test of time." One of the original founders of NAPEO (formally known as NSLA), Gordy was the association's president twice, and he also served as the president, vice president, and chairman of its government affairs committee for over 10 years. In addition, he was elected to the NAPEO Hall of Fame in 1989, was nominated as the "Entrepreneur of the Year" by Ernst & Young and Inc. Magazine in 1990, and received the CSLP Award in 1992. These days, when not at home in Woodland Hills, California, Gordy spends the majority of his professional time consulting to help others "make their dreams come true"-in keeping with his dedicated work ethic. When Lou Basso, for example, first worked in New York City, there were only one or two PEOs, "known as leasing firms in those days," he recalls. "I needed help… so Gordy flew all the way in from California to address a small New York state chapter and helped to solidify us on a national level." Gordy believes that spreading his knowledge allows him to give back to an industry that has given him so much. That's not to say that he's all work and no play, though, for selling his PEO has enabled Gordy to enjoy traveling to beautiful, exotic places, where he can fish and golf and be with his family (wife Karen, son Christopher, and daughter Tracy)-in other words, have a deservedly darn good life.
T. Joe Willey T. Joe entered Berkeley College in 1964. Four years later, he emerged with a Ph.D. in neurophysiology and landed a teaching and research stint at Loma Linda Medical School. With a joint appointment at the Brain Research Institute at UCLA, he taught medical and dental students for 18 years, while researching on brain activities that published 42 scientific articles on his findings. In addition, he spent one year in a post-doc fellowship with Sir John Eccles, a Nobel Prize winner in medicine at State University of New York (SUNY) in Buffalo. Considering himself the adventurous type, he decided to take a leave of absence from teaching at the university and face a new challenge. In 1982, he stumbled onto "staff leasing" and began to develop a company called Staffing Network, a "pension advantage personnel company," he says. After the tax advantage was diminished in the Tax Reform Act of 1986, T. Joe changed the name of his company to Staffing Services and went into what was called "generic leasing" at the time. "I was one who stood up at the fall meeting in San Francisco and urged the then-NSLA to change the name of the association and take the lemons handed us by the Congress and make a new lemonade, that we had a future in co-employment," recalls T. Joe. By 1984, he was one of the founding members of the new trade association called NSLA. Elected to the board of directors at its first meeting, he wrote the rough draft of its code of ethics and developed educational materials from the onset, serving on the board for about six years. Around 1990, he was elected to the NSLA Hall of Fame and became the first president of the West Coast Chapter of NSLA, which at the time included the states of California, Oregon, Washington, Arizona, and Nevada. This led to T. Joe assisting in putting together the California chapter, which later became known as CAPEO, when the chapters began to develop state by state. T. Joe regards his early work on PEOs' legal relationships, especially moving the industry into "co-employment thinking," as his most important intellectual contribution because, back then, staffing leasing companies were "sole employers," he says. He remembers that after many hours of study at University of Oklahoma Law School, he decided that "we were inaccurate in our understanding of the legal relationship. I have been criticized for this direction, but I believe in the end I was accurate because of my 1986 writings on the subject." "T. Joe should not only be recognized as a great friend and supporter of the PEO business," says Gordy Brown, a fellow forerunner and presently an occasional PEO consultant, "but acknowledged as its greatest teacher! I consider it an honor to have him as a friend." Probably the biggest direct contribution to the growth of the PEO industry was T. Joe's 1986 creation of a software package called PayPlus. Originally created to run Staffing Services, other companies in the industry soon became aware of it and wanted to have a copy. He was the major force behind the company releasing this technology to others. PayPlus currently has more software installs than all its competitors. High-ranking PEO executives such as Carlos Saladrigas, CEO of Miami-based ADP Total-Source, have conveyed to him, on several occasions, that if it were not for PayPlus, their PEOs would not be where they are today. Presently, due to the program's significant growth, roughly 600,000 worksite employees are receiving their checks through PayPlus. It was the first to attempt to fully integrate the complete processing of a worksite employee and produce a stand-alone invoice, setting the standard in payroll software. Eventually, PayPlus was sold to Zurich Payroll Solutions. T. Joe also believes that his workshops have helped shaped the PEO industry, by attracting many into the business. Since he formed The Aegis Group, T. Joe has consulted more than 3,000 people. Of course, not all have entered the business because of his workshops and/or consulting, but many have. In addition, T. Joe believes that his books, 13 in all, have contributed to the industry's growth. His first one, The Business of Employee Leasing, was published under four different printings and sold very well. The second edition of this book came out in March of 1993, and it also is selling well. His books on PEO marketing and agreements, as well as a client guidebook and an employee handbook, have also influenced the industry. From 1987 to 1996, T. Joe's news-letter, "The Aegis Connection," also kept people updated on the changing world of employee leasing. He also contributed to NSLA's then- magazine, almost always writing an article for each issue. To date, he has written more than 50 articles over the years for magazines and journals, enabling the public to better understand the PEO industry. What does this veritable "grandfather of the industry" foresee for the future? He would like to seek a better way to secure the PEO business financially and to market it more successfully. He would also like to continue exploring ways for small "mom and pop" operations to enter and enjoy the same financial rewards that he and others in the PEO industry have experienced over the years. T. Joe is also writing a new book and plans to rewrite several others that currently are in print, to bring them into modern usage. And he wants to improve and enhance the workshops that he will offer. As one who has dedicated much of his life to an industry he essentially founded-and without any sign of stopping in the near future-does T. Joe ever allow himself to slow down and… do whatever? Well, T. Joe relays, he has recently rebuilt a '56 Chevy-a two-door BelAire-with 26 coats of paint, a new leather interior, and a sound system that "makes you want to drive around the block and head to Chicago just to listen to the sound." And he especially enjoys alpine climbing; in fact, he recently returned from the Matterhorn in Switzerland (see the accompanying photo), where he helped his two sons enjoy the same experience he had when he initially climbed the peak 33 years ago. He also collects mint Canadian stamps, loves to read biographies, and enjoys fishing, travelling, and exploring. Above all, he's most fond of spending time with his wife, Barbara (they reside in Colton), and his children (Bruce, Mark, and Christina)-his most important hobby, he says, now that they are grown and he can mentor them!
Fran Morrissey Fran unquestionably practices what she preaches. Byron McCurdy, president of a division of Worthington, Ohio-based TEAM America attests to this, commending Fran for her "integrity and the ethics that she has taught the industry." For one, Fran has been deeply immersed in NAPEO activities. In 1986, when NAPEO's predecessor organization, the NSLA, had its second annual meeting in San Francisco, she was asked to head up the association's new standards committee. Fran was the organization's first standards chairperson, and she spent several years guiding this committee. From 1986 on, she has been NAPEO's president and served on its board of directors, as well as on its education and government affairs committees. She was also one of the first board members of IAPEO and is well-known outside of the PEO industry, having been recognized this year by Working Women magazine as one of the top 500 women business owners in America. It was back in 1983 that Morrissey read an article about employee leasing in Inc. magazine. "I knew instantly that I had to be involved in such a business," she says. Prior to that time, she worked alongside her husband, John, in an accounting and tax practice that also sometimes offered human resource consulting to small client companies. The leasing firm that Fran, John, and a few other associates formed subsequently was one of the first 25 employee leasing firms in the nation. Within two years, the associates left the firm to the Morrisseys, and Fran has been the president and CEO of Staff Management ever since. Her husband serves as vice president while directing his own accounting firm, John Morrissey Accounting. The ability to visualize a bright future for employee leasing in its new form as PEOs, combined with a talent for bringing experienced professionals into the organization, have been key factors in Staff Management's success. "When you launch a small business, such as a PEO," Fran observes, "you've got to be ready to wear many hats and get involved in every function of the organization. But, you also have to be willing to add qualified help immediately, or your progress bogs down. This means you may have to invest in new people at a time when you don't have a lot of money and when such an investment seems highly risky. But you've got to take the plunge. All of our management personnel are well-educated professionals with degrees in human resource management." As one of the PEO industry's pioneers, Fran feels that the strongest challenges to the industry's survival have already been met. "There have been many times when our industry has been on the brink of disaster, but we were able to pull back, regroup, and take a new direction." Morrissey's solid confidence in the future of PEOs could help restore faith in even the most skeptic of PEO-industry observers. "I've watched the industry come full circle-from heavy initial involvement in HR services, to a period when these services were being de-emphasized because some PEOs decided that HR shouldn't be part of the PEO package, and now back to a time when HR is in once again," Fran says. The business world is moving faster than ever before. This means that PEOs must constantly evaluate their mix of services, sometimes adding new ones, and at other times eliminating services to streamline their businesses. Being receptive to change is vital because the PEO client's business is changing all the time. She and John live also in Rockford. Whenever they can, they're out playing golf and spending lots of time with their two children, John (who joined Staff Management just last year) and Mary Beth, and their five grandchildren.
Carrie Aaron Nearly 20 years ago, Carrie began her business life selling accident insurance to owners and managers of small businesses. It was while she was traveling in Texas that, through a friend, she met Terry Hampton, the owner of a food brokerage business who was a client of an employee leasing firm called OmniStaff. She discovered that Hampton and some of the OmniStaff executives were about to launch their own employee leasing firm (EmStaff) and so, in 1983, she joined them. Carrie's prior experience selling insurance to small companies fit well with her new role as a seller of PEO services. Carrie sold for EmStaff and then for Staff Works until 1989, when she moved to Chicago and joined CEBCOR (Consolidated Employee Benefits Corporation) and switched over to customer-service work. "In six months, I learned more about the leasing business than I did in the previous six years," she recalls. From customer service, she moved into sales management and sales training, and by the time she left CEBCOR, she was its national sales manager for the northern half of the U.S. and also its national training director. In 1994, Carrie was hired by an independent insurance agency to sell P&C coverage and also to serve as an independent PEO sales representative for that agency. Around this time, she also gave birth to her daughter, Casey Ann. Now a single mother, Carrie is never not on the go, between spending time with Casey-they both like horseback riding, playing with their birds at their home in Raleigh, and attending outdoor concerts-and growing PEO Network, Inc., which she launched in 1995 as a contract sales organization representing many PEOs. "The more I got to know individual PEOs, the more I became aware of how much assistance they needed," Carrie remembers. In PEO Network's first year, 80 percent of Carrie's compensation was in sales commissions and 20 percent was from consulting fees. By the next year, her earnings were split 50-50 between sales and consulting fees; in her third year, her revenues shifted to 90 percent consulting income. Probably Carrie's biggest impact on the many clients has been conducting assessments of PEOs "that their management couldn't do because it was so tied up with daily business activities." To supplement her efforts, Carrie has introduced video-based training programs, seminars, and additional consultants. "Carrie Aaron and her team are knowledgeable and experienced PEO professionals. Their products and services-PEO Sales Mastery Training CourseTM, PEO Sales Selection ModuleTM, "Top Gun," and PEOimPACT-were key to shaping our market focus, sales and business development approaches, and building our infrastructure," says John R. Smith, president and CEO of Atlanta-based Barton Employment Outsourcing. "Carrie and her team worked hard to understand our team and needs. As a result, their contributions helped build our strategies, plans, and execution. Barton's launch and growth would not be as successful without their excellent and valuable support." "Every PEO," Carrie says, "comes to a benchmark event when it reaches 2,000, 5,000, and 10,000 worksite employees. It's at these benchmark points that I'm called in to give PEO manager's comprehensive, objective assessments of where the company stands in terms of its sales, marketing, services, client base, and overall performance. Then I provide a series of recommendations on what the PEO must do to reach the next level of performance." One of the major challenges facing PEO Network now and for some time to come is to educate and mentor start-up PEOs. So Carrie has introduced a new division called PEOimPACT to assist these newcomers in getting their feet wet in PEO services, without getting in over their heads and drowning. "All PEO start-ups seem to have a similar set of problems stemming from either a very poor decision made early on or from dangers they weren't aware of at the time of launch," she says. "All are usually operating at a level of unconscious incompetence, which means that they don't know what they don't know-and what they don't know can harm them."
Carlos Saladrigas Carlos entered the PEO business with a strong sense that health-care benefits could become one of the cardinal services offered by a PEO. Prior to founding Vincam in 1984, he had spent two years running an health maintenance organization. Earlier in his career, he spent four years in public accounting with Peat Marwich and Arthur Young. Later, he joined PepsiCo as CFO of a major subsidiary and was involved in internal auditing and corporate planning. Not only has Carlos left his imprint on the PEO industry as an individual, but Vincam itself has as well. "Vincam led the industry," he explains, "in becoming the first to launch an IPO, thereby educating investment bankers and others in the investment community on the merits of the PEO industry." In March of this year, Vincam merged with ADP TotalSource, taking on the latter name and now representing 80,000 worksite employees in 3,000 client companies. Carlos now presides as CEO of the new company. As an entrepreneur, Carlos has always been aware of the need to support the development of the industry with as much time, effort, and concern as he does the growth of his own company. "Early in our history at Vincam, I was spending over 50 percent of my time on industry issues, in lobbying and carrying the message from coast to coast," he recalls. "I was instrumental, along with other industry leaders, in, educating many legislators on the benefits of, and issues in our industry, including NCCI, NAJA, ICESA, and others." Carlos has also served as president of NAPEO and FAPEO, and he headed government affairs activities for NAPEO for several years. He had a hand in creating IAPEO and was its director for some years. In addition, he was the first chairperson of the Florida Board of Employee Leasing Companies. "Carlos has done more to form, develop, mature, legitimize, and lead our industry than any other individual in our history," says Kirk A. Scoggins, president of the PEO group at Tampa, Florida-based TeamStaff, Inc. "I am convinced that much of the opportunity that exists today and much of the wealth that has been created throughout the country can be attributed to Carlos' vision and industry leadership. For over a decade I have watched him work tirelessly with legislators, regulators, policy-makers, capitol markets, and other industry leaders to craft solution after solution to the endless challenges that have threatened the viability of our industry. "That said," continues Kirk, "Carlos has also been at the heart of more heated debates and caused more arguments among his peers than anyone in our industry history. Many times I have watched him throw an off-the-wall idea or strategy on the table, everyone else in the room thinking he must be crazy, then spend hours pacing the room, red-faced, flailing his arms around like a madman arguing his position. That's Carlos: He never gives up, he is usually right, and he usually wins. I would hate to think where our industry might be today had it not been for him. Seldom have I seen one man earn so much respect amongst his peers and competitors. It is his intellect, wit, dedication, integrity, and passion that have earned him that respect as well as his success." Cited by Carlos as a major challenge to the industry, both now and in the immediate future, is "the need to work hard for passage of [favorable] federal legislation that will make it much easier for PEOs to deal with major issues affecting them in the various states. We need a greater degree of uniformity in the way many competitors approach the numerous complex legal/regulatory issues facing the industry." A key goal for his PEO this year has been to "solidify our position of leadership in the industry, by leveraging ADP's extensive geographic presence and client base and by enhancing our service level to our clients," Carlos says. "Currently, the key challenge with our company lies in effectively integrating Vincam and TotalSource to reap the enormous synergies and opportunities afforded to us by this merger." You can bet that these lofty, yet achievable, goals-at least for Carlos-will keep him well-occupied. But when he shuts his office door, Carlos and his wife, Olga, relax with their daughter, Elisa, and three sons, Carlos Jr., Louis, and Jorge. His family especially enjoys boating and fishing together near their home in Miami.
Rex Eley "By creating a meaningful program of self-regulation and financial assurance, PEOs can become a more accepted and respected industry, achieving a much greater level of market penetration, just as the banking, security broker-dealer, and insurance industries have achieved nationwide," Rex says. "No challenges… just opportunities." This perspective syncs well with what appear to be Rex's mantras: Face your fears, believe in what you do, always maintain a sense of "ethical and moral standards," and you will prevail. Rex's career in the PEO industry began after 17 years as a consultant, two of which he was a university professor. In 1982, he started an employee benefits and insurance marketing company, which he operated for two years before reading about employee leasing in a magazine. This led him in 1984 to contract with a company called PeopleLease, which he found to sell employee leasing services. In 1996, with his feet wet, he became a consultant to Sunmark, a Little Rock, Arkansas-based PEO-when it had only one client. He later joined the company as a co-owner and vice president of sales and marketing. In 1989, Rex became its president, a position he held until he sold Sunmark to Express Personnel Services in 1995. Rex became focused on PEO industry's legal and regulatory needs. He also helped pinpoint what PEOs need to do on an operational, day-to-day legal basis to be co-employer under common law. He was a co-leader in the industry's work with NAIC and NCCI, which allowed PEOs to continue to sponsor workers' compensation plans after occurrences of fraud by fly-by-night companies in the late 1980s and early 1990s. This initiated efforts that led to Arkansas becoming the first state to enact licensing legislation in June 1991. Also during his NAPEO presidency, he created the NAPEO dues structure that stands to this day, resulting in the funding necessary to properly staff and develop the educational programming that has helped to transform NAPEO, over the past few years, into a well-established association. During his term as NAPEO president, the association changed the name of the industry from employee or staff leasing to professional employer organizations. In addition, Rex has been instrumental in helping to establish and promote important ethical, operational, and financial standards in the industry through his contributions in both NAPEO and IAPEO. In the words of Britt Landrum, Jr., president of Pensacola, Florida-based AmStaff Human Resources, Inc., "Rex is an outstanding leader, one that has helped to build a fine industry. The industry is extremely fortunate to have someone of his caliber at the helm." Today, Rex's sole mission is for IAPEO to lead the establishment of a meaningful "PEO Guaranty Program" that provides financial assurance to clients, employees, and taxing authorities in a manner similar to what FDIC, SIPC, and the state insurance guaranty associations provide for clients in their respective industries. On the home front in Little Rock, Rex and his wife, Belinda, have three children, Greg, Chris, and Bayly. They enjoy spending time with them and their two grandchildren, Labrador retriever, and Bichon Frise. Rex also loves to hunt, fish, and ski. Then there are always his affinities for stock trading, gardening, promoting cancer awareness…. A full life, that's for sure!
Dell Wood "The PEO industry is constantly under regulatory scrutiny," Dell says. "At the heart of every legal regulatory issue is the question of 'Who is the employer?' The employment relationship we establish with our worksite employees is the glue that holds everything together. "The secret to our success is our ability to function as a large single employer for many businesses and thousands of employees," Dell continues. "This is why federal legislation is so important. It can clear up some of the gray areas and ensure our ability to sponsor employee benefit plans. We have an opportunity to dramatically improve the way employment is handled in this country, but not without risk. If we want to be treated as an employer when it benefits us, we must also be willing to comply with laws that govern employers. If we could do what we do without any risk, that would be nice… but I don't see it happening. There is simply too much room for abuse." After graduating from Southeastern Oklahoma State University in 1964 with a degree in Speech Communications, Dell began a 15-year career in the broadcasting industry. He spent five of those years in Oklahoma City, where he was a radio news broadcaster. After several years in the sales end of the business, Dell spent the last four years of his broadcasting career managing two radio stations for Gaylord Broadcasting in Albuquerque, New Mexico. In 1977, Dell decided to return to southeastern Oklahoma and one of his favorite places, Lake Texoma. A career change was in order because the area "was not exactly a major radio market," Dell says, so he began to operate a construction and development company. He then became aware of "employee leasing" from an uncle in the insurance business. "Everything about the concept appealed to me," he recalls. Dell worked for a local leasing company for two and a half years, and then, in 1988, he formed his own company, Durant, Oklahoma-based Staff One Inc. Headquartered in a small college town (population 13,000), Staff One is one of the true PEO "family models" in the industry today: Dell's wife, Sandy, serves on the board of directors; his daughter, Christi, was the first to join Staff One and serves as a customer service representative; his son Brian, who has been vice president of sales and marketing for the last two years, joined the company eight years ago; and his son Kyle, currently a sales representative, came on board in 1993. One of Dell's goals for his PEO is to create more opportunities both for his family and his employees, whom he feels "make it happen." He also wishes to attract quality clients, grow to 10,000 worksite employees, and remain privately held. Another major issue facing the PEO industry, Dell feels, is the need to "prove to the health insurance carriers that we can successfully manage our health plans. There are fewer and fewer carriers who will write a PEO. We have brought the problem on ourselves by failing to keep participation levels up, therefore subjecting our plans to adverse selection." You can be sure Dell will continue to be on the forefront, vocalizing his concerns about these issues so crucial to the PEO industry. "In the decade or so that I've known Dell, his commitment to overcome adverse actions by the Department of Insurance and other regulatory issues has helped to achieve legitimacy for PEOs," relays Rex Eley, a founding director and the chairman of the IAPEO. "In return, the industry respects him and his contributions, and has elected him twice to the board of NAPEO for two non-consecutive terms. Furthermore, he is also well-noted in the industry for being dedicated to doing things right." Relaxing is something else Dell has the good fortune to do right. The main reason he moved back to Oklahoma from Albuquerque was his love of boating and Lake Texoma (near his home in Durant). In his eyes, there's nothing better than unwinding on his 41-foot Chris Craft cruiser with his wife, children, and five grandchildren. Who could argue?
Michael Miller Responsible for writing most of Florida's laws governing employee leasing and PEOs, Mike is deeply involved with regulators and the Florida state legislature, explaining to them exactly what the PEO industry is and what it isn't. "In the current session of the Florida legislature, we've worked hard to come up with the appropriate tort-reform language that will insulate PEOs from lawsuits that don't really involve the actions of PEOs," he says. "Through the years, since 1986, we've been able to develop a wonderful relationship with all the Florida governors and with the legislatures. For example, in 1987, we were able to pass legislation that recognizes the PEO for unemployment purposes. In 1991, we were instrumental in passing legislation that licenses the PEO industry under the Florida Department of Business and Professional Regulation." "Mike has been a true champion of the PEO cause for more than 14 years. He is a living example of a man who walks softly and carries a big stick," says Kirk A. Scoggins, president of the PEO group at Tampa, Florida-based TeamStaff, Inc. "His unique knowledge of the PEO industry has allowed him to guide us through many minefields; from early days in the '80s when we faced the UI crisis, the workers compensation exclusive remedy statute, and the sales tax on services threat in Florida, Mike was the one behind the scenes and often on the front line fighting for our survival. These early successes paved the way for our industry to survive and grow. Mike was also at the helm when we drafted and passed the first real licensing statute in Florida in '92 and through numerous other challenges with various state and federal regulatory and legislative nightmares, and through our most recent successes with the changes to the tort reform laws in '99. "Mike has helped rescue our industry (sometimes almost single-handedly) time and time again," Kirk continues. "We have much to thank him for. Even in the face of tremendous personal tragedy and pain over the past few years, Mike has always worked tirelessly and unselfishly to protect and defend our industry. Mike is much to humble to ever talk of his many contributions to the industry but many of us who were with him through those years remember well what he accomplished. Whenever our company faces a significant issue or problem, Mike is always the first number I dial." Mike is clearly not a one-state activist, though. "Florida's PEOs have been so well received by the state's governmental agencies-and this has been so beneficial to FAPEO members-that we're preparing to spend time and effort to see how we, in Florida, can assist PEOs in other states with their relationships with state agencies and regulators," he says, "so that more PEOs may advance to the point that we're at now in Florida." He describes PEOs as in the midst of "introducing new and specialized services to these larger companies. Some of the most exciting of these," he says, "are in the area of human-resource services. I think you'll see more PEOs offering sophisticated mediation services and alternative dispute-resolution procedures." The most pressing issue on Mike's calendar now "is to continue to assert convince regulators that PEOs are truly employers, and not in the business of selling insurance-and furthermore, that, as employers, we will not be intruding upon the duties that are mandated by law to be controlled by our client companies." Mike obviously can light some well-meaning fires. He can also take his home state's heat: An avid tennis player, he plays regularly with a group of local physicians in Tampa, where he resides with his wife, Barbara. (They have two college-aged children, Jeffrey and Amy. ) The rest of Mike's free time is often spent volunteering for the Marrow Foundation and the National Childhood Cancer Foundation, two charities that he strongly supports. And one can only imagine how devoted he is to these organizations, given his dedication to the PEO industry alone.
Michael Miller "Mike developed the first of the best managed and most profitable PEOs in the history of the industry," says Rex Eley, a founding director and the chairman of Little Rock, Arkansas-based IAPEO. Mike's contributions to the PEO industry are also notable through his NAPEO involvement as the founder, the past president, director, and first treasurer of the New England Chapter. A CPES, Mike also served as NAPEO's treasurer for three years and as its chairperson, as well as a member of several committees; he is also a founding director of IAPEO and its first chairman. "Mike's tight-fisted approach to helping our association survive also helped him build one of the most profitable PEO operations I am aware of," says Kirk A. Scoggins, president of the PEO group at Tampa, Florida-based TeamStaff, Inc. "His knack for making money when few others seemed to be able to positioned him to take advantage of the opportunity as few others have done. As a PEO operator, Mike is the best I have seen." In his 13 years associated with PEOs, Mike believes that he attained his greatest achievements to the PEO industry while serving as chairman of NAPEO. "I brought the values of a large company to a smaller company, which enabled it to be the forefront of the industry. Therefore, the views of both the large and the small companies are balanced, so that they can be heard equally in the industry," Mike says. "The PEO industry has seen an evolution, with large players and companies purchasing smaller companies. It is ready to evolve around the concept of a larger company buying smaller businesses." These days, Mike is one of the most difficult people to locate, having withdrawn from the PEO spotlight (many of our calls were unreturned). He is experiencing his life beyond Vincam, coaching youths in sports, raising and racing his 13 thoroughbreds, and traveling around with his family (he has two college-aged children, sources say). Wherever he is, though, it practically goes without saying that he has left his indelible mark on the PEO industry.
Howard Levy Howard has truly been one of the few vendors in the PEO industry to virtually become a name-brand product himself. With an objective to make the PEO business easier and cleaner to conduct, Howard has become well-known and respected for his dedication, low-key projection (despite his influence), and sense of humor ("my whole existence is to sell"). Although he has become one of the leading figures in the stance for workers' compensation in the industry, as senior vice president of AON Risk Services in New York City, Howard started his working years with a much different client base. He was first a teacher for a private school, teaching such subjects as English and American studies, for five years. As an insurance agent since 1980, Howard has become notable for the design, marketing strategy, and implementation of programs for both individual clients and for the PEO industry as a whole. In 1987, as senior vice president with a top 25 national broker, he quickly perfected his trade and became an expert in the staffing industry with particular emphasis on PEOs. He has represented NAPEO with such regulatory groups as NAIC, NCCI, and ISO. He has helped to draft the insurance language in certain states' licensing and registration of the PEO industry, and he served as the chair of the Associated Members Council of NAPEO. As a NAPEO board member these days, he also currently belongs to the association's education committee. "Howard, along with just a handful of people, believed in the viability and opportunities from the beginning and fought long and hard for its survival," says Milan Yager, the executive director of Alexandria, Virginia-based. NAPEO. "He believed in its potential when not many others did. He realized the vendor/industry connection and how important it was for the survival of this industry." Howard's uncanny ability to design insurance products keenly tailored to the needs of the PEO industry has been heralded as indisputable. These needs include workers' compensation, solutions for covering insurance issues, employment practices, and general liability. Vendors to the PEO industry, Howard believes, have matured to a point whereby the provider has many more products to offer PEOs. Ever the team player, Howard hopes that AON Risk Services ultimately becomes recognized as the PEO industry's absolute leader of vision and service nationwide. This, of course, would go hand in hand with the direct result of finalizing the relationships with regulators, both state and federal, so that no additional roadblocks prevent vendors from providing their services. When Howard isn't tied up with knocking down these obstacles, he relaxes by writing poetry at home in New York City ("I'm a poet by trade," he says), golfing, swimming, and going on bike trips with his family (comprised of his wife, Susan, and two sons, Sam and Nathaniel).
Debbie Evans Blough An 11-year veteran in the PEO industry, Debbie largely contributed to its development of accounting standards, financial reporting guidelines, financial ratio surveys, and minimum accreditation standard. She has also developed and implemented industry-wide certification through testing for CPES, as well as expanded and refined NAPEO's "PEO University" certification. "Debbie has been a long and steady crusader in raising the level of education and training of the PEO industry," says Milan Yager, the executive director of Alexandria, Virginia-based NAPEO. "She is one of the few who can take credit for the development and implementation of the PEO University. She has unselfishly given her own time and leadership towards creating a better educated industry without looking for notoriety or credit." Debbie's earlier teaching career has clearly served the PEO industry well. She has said that without the proper education, it will face even more obstacles that question the importance of a PEO's existence to the business community. Debbie strongly believes that the industry must educate people on a state level, so that they will become aware of the vast services PEOs can offer them for their businesses and their employees' needs. A "very professional, dependable, hard worker" (in the words of IAPEO's Rex Eley), Debbie is striving to attain federal legislation that recognizes tax and benefit purposes, and to conduct the same federal and state regulations in all states to ensure consistency. She also envisions a much-needed financial ratio survey that would enable business owners and people in the financial markets to compare the PEO industry norm. "They exist in other industries," she says. "Why not PEOs?" Debbie contends that the future of the PEO industry ultimately rests with federal and state issues, and the need for PEOs to incorporate them into day-to-day decision making. She also believes that PEOs need to give their clients and worksite employees more human resource services, particularly via the Internet, but without losing their "personal side." A NAPEO board member for the past four years, Debbie founded the association's accounting practices committee and presently serves both as secretary for NAPEO's executive committee of the board of directors and chair of its education/certification committee. "She is not only the heart of NAPEO, but one of its leaders for the next millennium," proclaims Lou Basso, president of Farmingdale, New York-based The Alcott Group. Also a CPA and a CPES, Debbie currently serves on the IAPEO Industry Advisory Council as well. When she isn't at work, she's catching up on quality time with her daughter, Britton, at their Little Rock home. And perhaps reading a novel. Oh, and she's also taking up bridge again. After all, the best teachers… are always learning.
Martin Babinec Prior to founding TriNet, Martin was a human resources "generalist" with the Navy Exchanges, an international retailing organization that operates base-exchange outlets for the Department of the Navy. Eventually, he realized that large corporations were downsizing and shifting workers from large to small companies. He recognized the urgent need of these smaller corporations for assistance in managing their employees while remaining competitive in their core businesses. And human resources topped the list of things in which they needed help. So building on this realization, Martin left navy Exchanges and started TriNet at a time when the concept of outsourcing human resources was far from mainstream. But his PEO has successfully navigated the wave of outsourcing demand to be ranked on Inc. magazine's list of the top 500 fastest growing, privately held companies in the U.S. for four consecutive years. And with a seamlessly integrated infrastructure of outsourced business processes that helps small and large high-tech companies succeed, TriNet's services today are Web-enabled and scalable to support clients throughout their life cycle. TriNet operates two innovative core businesses: One is Venture Employer Services; the other is Enterprise Employer Services. Venture ES is for small companies and offers personalized HR services that handle the day-to-day activities of payroll, benefits administration, and compliance. For larger companies, Enterprise ES is a unique tool for senior-level HR executives, CFOs, and CIOs. This integrated system automates many of the administrative activities within an organization. Ahead of his time, visionary Martin has continued to focus his PEO on a niche market. At first, he says, "targeting emerging high-tech clients kept TriNet from developing its clientbase as fast as other PEOs." In fact, according to the May 20, 1996 issue of Silicon Valley Entrepreneur magazine, "in 1990, Martin Babinec reached the lowest point of his life. His business was failing. Work and personal expenses had climbed to $250,000.... 'Not only had I spent every dime I had,' he says, 'I was totally leveraged.'" But Martin, a self-described optimist, quickly developed into an excellent marketing and sales executive. He wrote and implemented his own niche marketing program and, until 1994, was TriNet's only salesperson. His commitment to a vision has not only allowed him to build a leading PEO, but has also provided him with the incentive to serve as a two-time NAPEO board member, to co-found NAPEO's California chapter, and to make TriNet one of the first IAPEO-accredited PEOs. TriNet was also the first PEO to implement Internet-based transactions for services to employees and to achieve the highest revenue per serviced employee in the PEO industry. To be sure, Martin is a leading advocate of doing business on the Internet, and he believes the greatest challenge facing PEOs is to freely accept and adapt to new technology. "The industry must embrace the concept of being an Internet-based provider of employee services," he says. "PEO executives must also keep their eyes and ears trained on the changing needs and desires of their clients-and to accept the premise that they may have to go beyond a 'shared employee relationship' with their clients." Martin knows that you have to make an effort to cultivate relationships both professional and personal. He enjoys relaxing at home in San Leandro with his wife, Krista, and their children, Andrea, Elaine, and Jared. And whenever time permits (one wonders if ever!), Martin volunteers as a management consultant to non-profit organizations and speaks at domestic and international conferences on topics ranging from entrepreneurship to human resources and high-technology trends.
Mark Moore Mark, an honor graduate of the United States Air Force Academy with a degree in economics and financial management, served as an Air Force pilot upon graduation, flying F-4 and F-16 aircrafts. During those eight years that he toured with the Air Force, he became a member of numerous international committees, and was involved in systems development, operational readiness, and flight operations. This training undeniably prepared him for the rigors of the business world. In this realm, he first worked as an investment broker with Kidder Peabody, where he held the position of assistant vice president. After leaving the firm in 1989, he become president and CEO of Payroll Transfers, Inc., a private corporation he co-founded. It grew into one of the largest companies in the industry and was named in 1994 and 1995 as one of Inc. 500's "Fastest Growing Companies in America." When he finally left Payroll Transfers, eight years later, it had grown to over 250 internal employees and an annual revenue in excess of $400 million. He still retains partial ownership, though controlling interest in the company was sold to Wall Street investment groups in 1996. Currently part-owner of more than seven different businesses, Mark quintessentially defines "entrepreneur." These businesses include a temporary staffing firm with an annual revenue of $25 million dollars and a real estate company that owns an office building property. Mark spent his early NAPEO days successfully teaching various seminars based on sales techniques and strategies, on both the state and national levels. "Mark is a very intelligent presenter; he never speaks without a purpose at the NAPEO functions. He has a very keen insight," says Debbie Evans Blough, vice president of operations and CFO of Little Rock, Arkansas-based Express Human Resources. Since his beginning with NAPEO, he has been involved in the formulations of PEO (then employee leasing) legislation. Mark was particularly very active in gaining the right for licensing in the state of Florida. In addition, he represented the PEO industry in discussions with the IRS concerning the importance of legislation addressing employee leasing and the need for 401(k) plans. About to become a first vice president of NAPEO, Mark has also been the past president of FAPEO. Mark's dream for the PEO industry is for national and state recognition as well as response to adverse legislation. "PEOs need to place added focus on the industry's customer service area, and to more clearly define those relationships with our client companies and employees," he emphasizes, "in order to excel and enjoy the financial rewards of those accomplishments." If Mark's past track record is any indication of his future potential, then his wish should come true. As Steve Rosenthal, co-president of Woodbridge, New Jersey-based EPIX, says, "Mark is a true visionary, an entrepreneur in every way-he sees that dreams actually do come through for the industry." Mark's leadership skills are a testament to that. They even find their way into his downtime: When he's not with his family (wife Patti, daughter Lauren, and son Mike) at home in Tampa, he loves playing almost any sport that involves the great outdoors; his absolute favorite pastime is coaching baseball.
Robert Barrow Ten years ago, Robert (Bob) Barrow started putting together workers' comp programs. From 1992 to 1994, he worked as a risk manager and salesman, dedicating 100 percent to the PEO industry. Then in 1994, he founded his own agency for PEOs, today named the Barrow Group, LLC, in Lilburn, Georgia (30 miles outside of Atlanta). With his sales and property, life, and casualty insurance backgrounds as a strong foundation, Bob quickly build his new business. Bob created the first workers' comp program for PEOs with less than $1 million in premiums. He then developed the Fireman's Fund Program, which helped both PEOs and their competitors. And though competitors naturally tried to copy his programs, Bob decided to not keep his expertise to himself: He became one of the first vocal vendors, promoting the PEO industry and educating others about it, by giving speeches, writing articles, sponsoring seminars, and participating in NAPEO chapter meetings. "Bob is phenomenal-extremely professional with a great level of service and knowledge, and he's one of the greatest resources regarding workers' compensation in the industry," proclaims HRA's Fried. Indeed, always thinking of ways to better his services for his customers, Bob would like to continue designing and developing two or three more health insurance programs in order to fit the needs of all employees. And his professional future, he believes, would not be complete without continuously educating PEOs owners, salespeople, and risk managers on all matters related to workers' compensation and health programs. Bob is probably the most knowledgeable insurance broker that deals with our industry," says David Starkey, president of Nashville, Tennessee-based Modern Employer Services, Inc. "He pioneered the captive market for PEOs. I have utilized Bob's services since 1994, and I can attest to the fact that Bob delivers what he promises. I depend on Bob's expertise to keep current with developments with affect my insurance needs. He is the first to call me." When Bob's not busy keeping his clients informed, he likes to kick back with his family, especially his two boys (John is in high school, and Jeff is in college) and his wife, Eileen, who is also Barrow Group's special projects coordinator. Other than that, playing a good game or two of tennis and listening to all kinds music (he was a music major in college) at his home in Duluth, Georgia round out his all-time favorite pursuits.
Christina Harris Her accolades include numerous legislative initiatives, at both the federal and state levels over the past years, and she has worked on such issues as licensing, workers' compensation, unemployment, and taxes. Furthermore, by working diligently with NAPEO's outside lawyers, she has helped to develop the outline that became the basis for the "Rufus Wolff" paper that discusses the employment relationship in the PEO context. Currently, she is working on the passage of a licensing bill in the commonwealth of Pennsylvania. Christina had an early start towards a promising future. Not only was she an honor student throughout law school, but she was a recipient of the Robert F. Krinock for the "Outstanding Senior Award" and the director of chair for the budget and finance committee on the student bar association. She worked in commercial real estate as a loan workout specialist for a banking firm, while putting herself through law school and graduate law school. She received her law degree in real property and finance law. At final count, she has three degrees: a B.A., a J.D., and a L.L.M. Christina can also practice law in the state of Florida. Her role with NAPEO was considerable and constantly growing, with her leadership involvement beginning in 1993. The influence and credibility that Christina brought to the industry was very instrumental in establishing the framework from which the NAPEO's legal advisory committee works from today. With no intention of decreasing her efforts, Christina aims to continue pushing for a federal PEO bill and for fair PEO employment statutes. "Christina Harris is a delight to work with and for. They're truly aren't enough positive adjectives to describe her but… energetic, devoted, intelligent, analytical, fair, …and forward-thinking come easily to mind. The PEO industry should consider itself privileged to have the advocate it enjoys in Christina Harris," enthuses Sharon Quinn Dixon, attorney shareholder for Miami-based Stearns Weaver Miller Weissler Alhadelff & Sitterson, P.A. Christina has also taught the legal aspects of the PEO industry for over three years at the PEO University and is dean for the new PEO University Workshop on Licensing and Contracts. Other such executive responsibilities extend from past president and first chair of the Legal Advisory Council to her current position on the board of directors and sub-committees for unemployment insurance at NAPEO. Christina has also served as NAPEO's chief delegate on employment law to its government affairs committees, as president of the FAPEO, as the judge advocate for CAPEO, as president of MAAPE, and as a speaker at many of these associations' conferences. Her spare time seems to be just that-spare-but she finds the energy to be very active in her own community of Sarasota as well. Christina serves on the board of directors of her condominium complex, assisting with the Manasota 88 (an activist organization that concentrates on environmental issues in Bradenton and Sarasota) in its efforts to block a Florida power company's application to burn a fuel that would adversely effect Florida's environment.... If there's time left over, you'll find her playing with her two nephews, bicycling around, touring some wineries, walking on a beach-even settling in a comfy chair to read some fiction. But then you'd be one of the rare few to catch Christina sitting down!
Cecilia Renn Since then, Cece has contributed her impressive background to help serve on numerous industry boards and committees. She is FAPEO's vice president (1998-2000), co-chair of GAPEO's legislative committee, on COPEO's board of directors, and chair of NAPEO's workers' compensation committee. Now, she proudly stands firm with the advocates in the industry who have helped to bring PEOs to the forefront of the business community. "I have had the opportunity to work with Cece on legislative, regulatory, state, and national association issues for almost five years. Her understanding of issues and her ability to craft language and open lines of communication with these various groups is a great asset to our industry. We all owe Cece a debt of gratitude," says Joe Blubaugh, CEO of Columbia, South Carolina-based Paradyme Corp. An alumnus of the Kennedy School of Government at Harvard University, Cece received her law degree from the University of Miami in 1987. She began practicing law in the commercial litigation department for Miami-based Steel Hector & Davis. In 1991, she was appointed general counsel to the Florida Department of Labor & Employment Securities, where she was involved in workers' compensation, working as a chief technical advisor to then-Governor Lawton Chiles on such matters and insurance-related issues. This relationship led to her authoring the legislation for the governor that formed the cornerstone of the Florida Workers' Compensation Reform Act of 1993, adding political experience to her growing list of expertise. She was one of 36 people nationwide to receive the prestigious Toll Fellowship from the Council of State Governments. In 1994, Cece resigned from the Department of Labor to accept the positions of vice president and general counsel to the Associate Industries of Florida Service Corp. After one year, she left to open a government regulatory practice that represented a diverse client base, including Vincam, the Florida Workers' Compensation Oversight Board, and the Florida Film & Entertainment Commission. Further industry involvement included serving as an instructor for the adjuster board certification program sponsored by the Association of Workers' Compensation Claims Professionals and as a member of the Employer Advisory Group to the Florida Division of Workers' Compensation. Since joining Vincam three years ago as their in-house counsel in Tallahassee, Florida, she has authored various articles on the PEO industry. In March of 1999, she maintained her work involvement with Vincam after it merged with ADP TotalSource. Cece is one of the industry's most knowledgeable people in regards to its legislative and regulatory framework," says Carlos Saladrigas, CEO of ADP TotalSource. "She is also a highly effective lobbyist and spokesperson. The industry owes her a great debt of gratitude for all that she has accomplished." When not penning PEO literature or litigating issues for the industry, Cece, a Tallahassee resident, finds time to spend with her significant other, John, and to hike, indulge in photography, and listen to some good tunes.
Kathleen Hillegas Kathleen passed the bar exam in Arkansas in 1988 and began practicing law as a labor employment law defense attorney. In the early 1990s, she developed a sub-specialty in employee benefits and ERISA law. This gave her considerable exposure to the budding PEO industry, which she entered five years ago, as vice president of legal and general counsel at Little Rock, Arkansas-based Sunmark (later to become Express Human Resources). "I was part of the company's management team and had full participation in overall management activities," she reports. "My key role was in implementing those compliance processes that ensured that all of the obligations assumed by the PEO were carried out in a timely and cost-efficient manner. I was also the guardian who saw that all members of the team not only 'talked the talk' of being an employer, but that they also 'walked the walk' of an employer." Today, working for Administaff in Little Rock (which has over 40,000 worksite employees), Kathleen says that her role is "externally directed and highly varied but it revolves around making the world a safer place for Administaff and for PEOs, in general." "Kathleen is one of the most talented and tenacious people I know," says Christina Harris, the general counsel and senior vice president for Norristown, Pennsylvania-based NovaCare Employee Services, Inc. Yet another contribution Kathleen makes to her company is bringing her benefits expertise to bear on critical PEO benefits compliance and delivery issues. "The PEO industry is so very benefits-driven, there must always be a strong focus on proper delivery of benefits to employees," she notes. There are two major challenges she faces in her work, and both have a profound impact across the entire industry. "The first of these challenges concerns the divisiveness raging throughout the industry," she explains. "So far, PEOs have shown an inability to come to any consensus on whether legislative fixes are needed to solve key problems of perception and regulation, or to reach any agreement on what these fixes should actually be. "This is compounded," Kathleen continues, "by lots of mis-information about the legislative process. People think that it's easy to keep the law-making process and laws themselves simple. For example, amending the federal IRS code is no simple matter. Anyone who thinks so needs to take a '101 primer' on the federal government. This information can lead to misperceptions among industry members about proposed legislative solutions." The second challenge Kathleen has taken on is to find ways to soften the government's collective memory of the employee leasing business-particularly in the minds of state government administrators. "In recent years, the PEO industry has changed its direction, improved the applications of its basic concept, and has put the bad image of employee leasing behind it," she says. "But state legislators aren't keenly aware of all this metamorphosis. Most still look at our industry in the way they did the nascent leasing firms…." A special near-term objective that has Kathleen's attention is to promote an industry strategy for health-care issues. She is currently working on a NAPEO committee that is looking into some of the key issues affecting the ways in which PEOs administer their health care insurance programs. The question to be resolved is how PEOs can administer health insurance in a way that keeps the insurance industry focused on supporting PEOs and improves their interest in doing business with PEOs. Kathleen will be speaking on this vital subject at a workshop session at NAPEO's annual meeting this year in New Orleans. A self-described Chicago Cubs fanatic and exercise nut, Kathleen also likes to golf with her husband, Ward. They live in Little Rock with their young son, Joshua.
Joseph Blubaugh Employer Resources did very well, and just three and a half years later, in 1997, Columbia, South Carolina-based Paradyme Corp. acquired it. Blubaugh became its regional vice president for the Palm Beach Gardens, Florida area, and in 1998, he became its CEO. The company now serves 510 clients employing over 8,500 workers. As with all PEO start-ups, sales is the key to growth. Joe admits that although he was "never detail-oriented enough to be a top salesperson," he does have a strong ability to "communicate a vision." And he's been able to do this consistently with profitable prospects and also with the professionals he needed to bring on board to help manage his company. "At the rate he's going," says Cecilia Renn, vice president of government and regulatory affairs for Miami-based ADP TotalSource, "Joey is destined to be a legend in this industry. He's setting new benchmarks for all of us-not only operating benchmarks, but benchmarks in business ethics, leadership, and personal integrity. He is one of the few people that have really stepped up to the plate in recent years to take on battles that will secure our industry. On top of that, he's one hell of a nice guy." His vision of PEOs as a profit center has left its stamp on the industry. Joe has always made it a priority to convey to other businesses that "PEOs are a great distribution channel for all goods and services," he says. "A PEO is an excellent example of how things get sold. Vendor alliances are true partnerships for profit in the PEO environment." Joe is an advocate of vendor alliances and of making the most of the PEO's distribution capabilities, he warns of the danger lurking in focusing too much attention on the things you want to do, rather than on the thing you have to do. "PEO core services-payroll, human resources and risk management-remain the meat and potatoes of our business," he says. We mustn't permit ourselves to be distracted from the satisfactory delivery of these core services at a price that can support the infrastructure essential to stable, long-term growth and to provide adequate returns to those who invest in our industry." Entrepreneurship is another of Joe's strengths, and it's enabled him to build a strong management team at Paradyme. Here, his prior work in accounting and financial management made it easy for him to identify and work closely with local venture capital firms. This has enabled him to obtain the necessary second-tier financing that is critical in establishing the infrastructure to take his company to new clients and new levels of service. Despite his success, Joe retains an open-minded attitude that has made him one of the most likeable executives in the PEO industry. "We at Paradyme," he says, "firmly believe in the co-employment model, but we also realize that there can be other models guiding PEO/client relationships that can work. There is no operational model best suited to all situations."
Loren Hulber Loren subsequently founded NovaCare Employee Services (NCES), bringing more then 30 years of experience as entrepreneur, innovator, visionary, and leader of nationally known corporations active in the business services and office products industries. Just prior to accepting the top spot at NCES, he was president and CEO of DayTimers, Inc., a leading time-management services company. Loren has demonstrated from the very beginning of his tenure with NovaCare that he knows, inside and out, all the strategies and tactics of corporation building. NCES was a high-growth business right from the start: In just three years, Hulber took it from zero clients to one of the largest PEOs with a national presence, serving clients and worksite employees from coast to coast and from Canada to Mexico. In addition, he's guided NCES through 10 successful acquisitions and through one of the industry's first IPOs. The PEO operates out of offices spread across the nation. His success with NovaCare demonstrates conclusively that the strength most essential to a PEO leader is the ability to develop, formulate, and communicate business strategies, and then to motivate people to reach their peak performance. As important as leadership and team-building skills are, though, Loren believes that they're not enough to maintain a fast growth track. "Strong vendor alliances are one of the three keys to success in this industry," he observes. "Right now, we are building an excellent national alliance with AFLAC, the nation's leading supplemental insurance company carrier. We also have an excellent alliance with Liberty Mutual, our workers' compensation insurance provider. And, we're currently looking to establish other solid alliances with financial services companies and other insurance providers." One of the biggest challenges Loren faces today as CEO is to effectively manage his PEO's growth by building a world-class organizational infrastructure. Another major challenge he cites is "to prepare NovaCare to become a 'dot-com' business. I fervently believe that PEOs will become an Internet-based industry in the way they allow clients and employees to access their services and provide and obtain information. We're launching two new Internet services each quarter of this current fiscal year, which began on July 1st." Loren believes that the PEOs with the highest "SAT" scores will do the best in the future. "S stands for scale, which gives you leverage in purchasing power. A is for alliances," Loren explains. "They give you breadth of services as a distribution channel. T is for technology, which gives you the best service-delivery mechanisms. These provide the easiest ways for clients and employees to access the PEO and gain a wealth of information." But, Loren also cautions that the new millennium won't be all "violets and violins," especially if it doesn't obtain the legislation in Congress that recognizes the PEO's role as a plan sponsor and as an employer of record for tax purposes. "This must be the objective of the legislation drafted that's needed for H.R. 1891 to succeed, and it requires active support from all PEOs," he adds. Another area that needs smoothing out if PEOs are to grow rapidly and profitably, according to Loren, is health insurance. "…PEOs must communicate, more effectively, the good work they are doing, to assist health care insurance providers to deliver benefits more efficiently to PEO clients and worksite employees," he says. "To date, most PEOs have not maintained appropriate level our closing ration has gone from 25% to 75%! I plan on coming back..." Mark Roberts, Staff Leasing References are provided upon request - send an e-mail to Carrie Aaron at peonetwork@aol.com.
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