Employer IQ: How to Find Your HR Blind Spots with this Free Tool

Alison Stevens (00:00)

I'm answering these questions as the business owner, and I can see, wow, I don't have my I-9s shored up right now. And that's a really important thing that I should really be addressing. I don't have a performance review system. I don't have job descriptions. I don't have a handbook. I don't have a, you know, a succession plan or a basic way to train and develop my employees. And, you know, then it's like, whoa, okay, I think I do need to do consider this. Right? And so that's where, you know, our HR Business Partners, again, acting as that trusted advisor, can help you get started, create that plan. And it's also a great benchmarking tool, right? So it's like, okay, here's that snapshot of here's where I am right now, but then where can I be three months, six months a year from now? And then, you know, nothing's better than hearing from our clients that say, wow, right? Here's how far I've come, and Paychex has been able to help me along the way.

Announcer (00:54)

Welcome to THRIVE, a Paychex Business Podcast, your blueprint for navigating everything from people to policies to profits. And now your host, Gene Marks.

Gene Marks: (01:06)

Hey, everybody, it's Gene Marks. And welcome back to another episode of the Paychex THRIVE Podcast. Thank you so much for joining me today. I'm talking with Alison Stevens or Ali, who is the senior director of HR Solutions, as well as Michael Majors, who is a VP and GM of HR Solutions, both at Paychex. And the reason why we're having this conversation today is because Paychex is rolling out a new platform, a new product this fall called Employer IQ. I actually got a chance to play with it. I'm still playing with it. I love this platform as well. We're going to dig into what it does, but I just want to tell you guys that are watching is that depending on the size of the business that you run or regardless of the size of the business that you're running, this platform is really designed to help you identify areas where you can improve your HR. And, you know, when I go around the country and I talk to business groups and people in different industries, I mean, you know, you ask, you know, people that are running businesses what their number one problem is, and at least among the one and two problems, is attracting and retaining good talent. And the only way you can do that is by having a good operation of HR. And we don't know what the answers are and how to address those issues and Employer IQ will help us do that. So, Michael, let me first start with you. Okay. I mean I just kind of given some of the benefits, but talk to us a little bit about what this platform does.

Michael Majors (02:27)

Yeah, no, I appreciate the question, Gene, and it's great to be back on the podcast. What the tool is, it's just a simple, elegant diagnostic tool that helps employers assess the health of their HR operations. And we did that across five categories to help them. Workforce management, employee engagement, their training and development, employee data and record keeping, which is really important, as well as compliance. And it's essentially delivers them insights based upon what they put into it. So, it's customized for them so that it can help them benchmark themselves against other companies and identify gaps that they may have.

Gene Marks (03:10)

Got it. Makes complete sense. So, first of all, just, you know, to make this as simple as possible, it's a platform, it's a website. So as a business owner or somebody in the HR area, if I want to be, I mean, I go to the website itself, I log in and I start answering questions about my HR operations. Is that, am I describing that so far?

Michael Majors (03:33)

Yeah, that's correct. And it walks you through it. And it's essentially a gamified experience because we wanted to make it fun. There's badges, there's checkpoints so that people are engaged while they're going through the questions and doing this self-assessment. And as they go through it'll surface videos or make actionable recommendations tailored to their current state of HR maturity for their company.

Gene Marks (03:57)

Wow, that is great. And is this a free service or is this a paid thing? Like who, who has access to this?

Michael Majors (04:03)

No. When the team was thinking about like how to get more businesses help in this area, they decided the tool needed to be absolutely free. So there's no charge for somebody to go through it. You don't have to talk to somebody at Paychex. You could literally go to this website and go through this experience and do this self-assessment on your own schedule.

Gene Marks (04:23)

That is amazing. So when we talk about the target audience that we're looking at, is this business owners or HR people or is there any size of business that you're sort of targeting here? Who would you like to see using this platform?

Michael Majors (04:36)

Yeah, I think it's really targeted to small to medium-sized business owners, but also can be used by HR leaders, even operations managers. Anyone at a company who's looking to improve their HR practices but doesn't know exactly where to start based on where they're at today.

Gene Marks (04:53)

All right, that's great. Ali, I mean, why launch this? I mean, what's the purpose of this tool?

Alison Stevens (04:59)

That's an awesome question, Gene. And we had so much fun brainstorming about Employer IQ, and we thought, okay, what does it really mean to be a great place to work? Right. So much has changed over the past years. When you past few years, when you think about the new workplace and really, how are employees making those selections of where will their next employer be. So, you know, we really wanted to create this tool to help employers see, well, how do I stack up as that great place to work? We knew it was time to take a creative approach. And, you know, we designed a digital experience, as Michael said, right. This elegant digital experience that's easy to use, kind of takes you through it logically to be able to kind of see where you're thriving, see where you have opportunities, and very quickly see, you know, okay, how do I, how do I look with my HR operations? How strong? Where are my strengths? Where are my opportunities? Really, the best part about it is we wanted to be able to then give employers the chance to connect to Paychex. You can choose to talk to someone at Paychex. You can access some really great resources that you can then double-click into some of the topics you see in the tool, and learn more, and walk away with some insights just by spending a few minutes in the Employer IQ.

Gene Marks (06:21)

It's 100% true. I also see this platform as, like, you know, as somebody, I mean, I have 10 employees in my company. I don't know what I don't know. You know, and HR is, it's such a specified expertise that it's really tough to, you know, make sure that not only we're in compliance with certain things, but that we're like, operating as a, as a class one company. You know what I mean? And I guess this kind of gives us the prompts to do just that. Let me, let me throw a curveball at you. Can you think of a couple of questions that the platform asks that, you know, that employers would be interested in answering? Like, you know, give me some examples.

Alison Stevens (07:02)

Yeah, it's funny. I was thinking about the tool and I was thinking about, okay, what if I'm a startup, right? So, I'm a startup business and things are working and things are moving, and I'm ready to hire my first few employees. So I think it's, in that example, really useful for a startup business owner to get into the tool and then have those prompts of, hey, do you have policies in place? Do you have a plan for managing performance and setting goals for your employees? Because those are the questions you might get asked in an interview process. So when you're ready to bring on those employees, you want to be able to not only be able to answer the questions so you can attract that talent and then keep them there by, you know, having a good succession plan for leaders. And you know, of course compliance. Right? It's the standard requirement, both state and federal. But it goes, we really wanted to take it beyond just the compliance element and really ensure we were giving, unlocking the ability to start a conversation with a business to be sure they understood all of the components where they need to really be focused to ensure their HR operations are strong and they have a plan, a plan forward.

Gene Marks (08:15)

So perfect example, you mentioned like performance reviews. So you know, you, you know, the question gets us, do you have a performance review system in place? And I'm assuming there's other questions. Does it include this or does it include that or you know, whatever. Does this platform give advice or is it just asking the questions? It's just like identifying, you know the areas where we need to improve or is it actually...

Alison Stevens (08:37)

It's a self-review, right. So, it gives you the opportunity as the employer to rate yourself.

Gene Marks: (08:41)

Right.

Alison Stevens (08:42)

And then gives you a sense of okay, well where, you know, how am I doing as an overall employer? And then it gives you the opportunity to connect into Paychex. So, you know, we've used the tool with both existing clients and you know, businesses that are not clients of Paychex. And even some of our clients, you know, we've been able to have our HR Business Partners as their, the employer's trusted advisor, still by using the tool, unlock some opportunities for where they need to potentially focus next. Whether it's oh my gosh, we realized we didn't have a succession plan. We need to really focus on that because it's taking us so long to bring senior talent into our organization, as an example.

Gene Marks (09:23)

And there's no requirement to use Paychex for any of these services. Right? I mean, you know, and you know, ideally, I mean that would be something that you would want to do or you know, or the Paychex would like you to do. But it's really just a tool to make sure that we can identify the areas that we have to improve in our business for HR. Michael, I mean, back to you. So this is rolling out this fall. I don't know if you have any specific dates or timelines. Right now, but tell us how this rollout is going to happen? How you plan on getting the word out to your community about it? How can we start using it?

Michael Majors (09:56)

Yeah, well, we've already started rolling it out. Kind of what I would call like a soft rollout. As Allison mentioned, you know, we tested it on some existing clients. Both clients that used us maybe for just one service like payroll, along with other clients that maybe use us for more HR services or some other benefits packages. And we got some really great responses, you know, and that helped us evolve the tool a little bit before. We wanted to make a big splash out there in the world. But, you know, when we think about target audiences for it, I would say prospects that are evaluating HR service providers. We feel like that's a great way to get a really high-value interaction without having to talk to anybody and just think about, like, what's important to you as you're thinking about what services you may need if you're in the marketplace. We also think our channel partners could be a key outlet for using this. So, it gives them a great way to credibly introduce Paychex to their network with a quick value-add, just by sending them a link, an introduction, and allowing them the chance to do this. And then maybe the most interesting use case that we came up with was just our internal teams at Paychex using it across sales service, our marketing function, it's helping all of them better understand customer needs so that they can have better interaction and follow up when they do engage with them. So, we are going to, like, start with the targeted outreach to our sales and service teams. We think that's a great way to broadly expand the use of it because we have so many interactions every single day, both with existing customers and prospects. But as we bring in new customers, maybe while we're onboarding them, current customers in the account reviews we do, or when we're having additional conversations about people that are looking to add services. It's a great way to get a conversation started maybe at a bigger level than just, hey, you know, do you need a 401(k) or what other benefits might make sense for you? Our marketing team is going to also really do a great job, which they always do, on amplifying it through social and paid media and other tactics. And I think, you know, by the time we get to the end of September, we'll be, you know, launching this at HR Tech and in some other media. So we'll, we'll be getting the word out strongly by the end of the month.

Gene Marks (12:19)

So you know, where I'm seeing this, where I can really see a need for this as well, both of you guys, is, you know, there's this. There's this tipping point among businesses as they grow. And I get a question, a lot is like, when do we actually need an HR person in this business? You know, and it is a, you know, no, there's no rule of thumb. Usually I'm like, I don't know, you get to, like, 30, 40, 50 employees. You know, that's generally when, you know, I also feel like once you hire your first HR person for a business, you're turning into, like, a real business. You know, you've got employee issues. But it just seems like Employer IQ is like, one of those tests, like, if you're a business owner and you're thinking to yourself, should I hire an HR person or not? I think if you run through Employer IQ, you probably come to, like, you know, you will come to a realization that, like, wow, I'm, like, answering no to a lot of these questions. Like, I have a need here. Does that make sense?

Alison Stevens (13:12)

It does, right? Because the tool prompts you throughout every step of the way to really give yourself that, like, okay, wow. I'm answering these questions as the business owner, and I can see, wow, I don't have my I-9s shored up right now. And that's a really important thing that I should really be addressing. I don't, you know, have a performance review system. I don't have job descriptions. I don't have a handbook. I don't have a, you know, a succession plan or a basic way to train and develop my employees. And, you know, then it's like, whoa, okay, I think I do need to consider this. Right. And so that's where, you know, our HR Business Partners, again, acting as that trusted advisor, can help you get started, create that plan. And it's also a great benchmarking tool. Right? So it's like, okay, here's that snapshot of here's where I am right now.

Gene Marks (14:01)

Sí.

Alison Stevens (14:02)

But then where can I be three months, six months, a year from now? And then, you know, nothing's better than hearing from our clients to say, wow, right, here's how far I've come and Paychex has been able to help me along the way.

Gene Marks (14:15)

That's great. That is great. How long does it take to go through this?

Alison Stevens (14:18)

Five minutes.

Gene Marks (14:19)

That's it?

Alison Stevens (14:20)

Sí.

Gene Marks (14:20)

Wow. Okay. Took me longer. That's because I'm not that bright. It's just, you know, I have to think about things and read them more than one time. But. Okay, yeah. So five minutes, maybe 10 minutes is the max.

Alison Stevens (14:30)

Maybe. Yes. If you really, you know, need to take a moment to really think about.

Gene Marks: (00:14:33)

Right, right.

Alison Stevens (14:34)

What, you're being more thoughtful.

Gene Marks (14:36)

Not much of a test. Not much.

Michael Majors (14:37)

Yeah. Alison's an overachiever because she knows all the answers. So, it's really quick for her.

Gene Marks (14:43)

It's much faster. I can tell that already. Michael, so we're talking about rolling it out, obviously, this fall. This is a version 1.0, and this is like your, you know, your product. Have you given thought and can you share with me, you know, what do you think version 2.0 or 3.0 looks like? What's the vision for this tool over the next two, three, five years? How do you think people will be using it?

Michael Majors (15:09)

Yeah, I think I go back to, like, what we originally were intending to do. I mean, bottom line with Paychex is we want to help businesses succeed, and we realized it was incredibly difficult to figure out and self-assess with everything that's available on the entire marketplace today, like, where you're at in that HR maturity model. And I think the other thing with a lot of businesses, you know, and as we were developing the tool, is it can be really uncomfortable to tell somebody else that you don't know these things. Right. If you're having a live conversation with somebody and they're asking you, like, do you have an employee handbook? Do you have all the legally required documents to hire or terminate an employee? You know, have you benchmarked your benefits against other companies? And if they're answering, no, no, no, that's not a conversation that they may really want to have with somebody. So, these things tend to, like, sustain themselves because people are afraid to talk to somebody else and essentially be like, I don't know anything. You know, help me out here. So the tool really opens that up because they can take it in their own privacy. You know, they get the answers, they get the advice. It helps them understand where they're at, and it might enable and empower them to then have a conversation, you know, that's helpful. So, as we think about future phases of the tool, we probably want to expand the benchmarking capabilities into other areas. You know, we had the five key areas here to start. We didn't want to make it overwhelming, but we'll probably make it a little bit more of a journey so those in a more complicated situation might be able to get some more bespoke insights, you know, for their situation, too. We're also thinking about Integrating it with some survey tools that they could use, and even maybe taking it to the next level about incorporating it into employer recognition programs. So, it'd give us a chance to recognize businesses that have a high Employer IQ score and really separate themselves from other businesses in the marketplace. So there's a lot of ideas on the table, but the teams, you know, right now committed to making sure we have a great rollout of the tool initially, get it out into the marketplace, and then the feedback from our customers and prospects and people that just use it, that even aren't Paychex clients will probably also help inform where we take it.

Gene Marks (17:23)

I love it. You know where else I see another application is the, you know, we talk about having the employer fill this out or the HR manager. It'd be kind of fun to have actual employees at the company also fill out the tool.

Alison Stevens (17:35)

Absolutely.

Gene Marks: (17:36)

It'd be curious to see what they're answering to this question versus what, you know, the owner or the HR manager might be answering. And I bet you would identify, like, some sort of discrepancies as to, you know, you know, what different perceptions that people have as the benefits are being offered, you know.

Alison Stevens (17:53)

Absolutely. It almost serve as its own employee engagement tool.

Gene Marks (17:56)

Sí.

Alison Stevens (17:56)

Right. To really validate, okay, we are on the, you know, we're on the right track. We're on the right priorities that meet and are aligned with the needs of our employees. I think that's really where we wanted to get to. Right. Yes, there are all overarching levels of importance and priorities that every business needs to focus on, but it's also going to allow a business to do what's right for them and right for their employees and build that plan forward.

Gene Marks (18:19)

That's great. And, Michael, your point about benchmarking also is also really important. Like, I could see that being really valuable for my clients if they are, going through and answering questions, it is interesting for them to see how many other people answered yes to this question or offer this benefit. Is it that significant? And also, I'm just throwing this out while I have you, if you have industry data, it's also really helpful as well for the future. You know, because sometimes decisions that are made by a retail employer is different than somebody that's in the distribution business, and different benefits might be different. I can see all of this evolving into some really great stuff. So that's great. All right, so the takeaways are just to make sure I got this right. Right. Free platform, according to Ali, should take like 30 seconds to do. Just kidding. It'll probably take like five to 10 minutes to go through the questions. It will identify needs. Right? You know, of HR that you have so that you can start thinking as to whether or not you need help from an HR firm like Paychex or, you know, something that needs to be addressed internally. And it gives you a really good benchmark as to where your business is so that you are as competitive as possible to try and attract and retain good employees. And all this is free?

Alison Stevens (19:27)

All free.

Gene Marks (19:28)

Great. All right. So Ali, so tell me where do we go to find out more information?

Alison Stevens (19:32)

Well, it's a long one. Are you ready?

Gene Marks (19:34)

I don't know if I am, but okay, let's go for it.

Alison Stevens (19:36)

Remember, five minutes.

Gene Marks (19:37)

Yep.

Alison Stevens: (00:19:38)

You can go to interactive.paychex.com/EmployerIQ.

Gene Marks (19:44)

Interactive.paychex.com/EmployerIQ.

Alison Stevens (19:48)

Correct.

Gene Marks (19:49)

Perfect. And we will also put that in our show notes as well, so you can get that website link directly. Michael, Ali, thank you both. Thank you joining me. I really appreciate it. I really do think this platform is great. I will recommend it to my clients to go through and see. And again, I just have to say it's our biggest issue is attracting and retaining people. And rather than hearing the concerns and complaints about that which I hear from my clients, I would point them to Employer IQ and say, well, if you want to be competitive, you want to start here so you actually know what you should be doing. So, thank you for providing this tool and I hope it evolves.

Michael Majors (20:26)

Thanks for having us on, Gene.

Alison Stevens (20:27)

Appreciate it. Thank you.

Gene Marks (20:29)

Do you have a topic or a guest that you would like to hear on throwing THRIVE? Please let us know. Visit payx.me/ThriveTopics and send us your ideas or matters of interest. Also, if your business is looking to simplify your HR, payroll, benefits, or insurance services, see how Paychex can help. Visit the resource hub at paychex.com/worx. That's W-O-R-X. Paychex can help manage those complexities while you focus on all the ways you want your business to thrive. I'm your host Gene Marks, and thanks for joining us. Till next time, take care.

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