How Professional Employer Organizations (PEOs) Are Supporting Employees and Businesses

Tami Tillery (00:00)

Well, Gene, and as cliché as it may sound, you know, your employees are your number one asset. You know, they're going to directly impact your bottom line. And so it's critical that we really take care of them. Right. And especially with society as it is today, mental health is the number one issue. And so, we want to make sure that we just give them what it is that they need, you know, to be successful for our business. 

Announcer (00:27)

Welcome to Paychex THRIVE, a Business Podcast where you'll hear timely insights to help navigate marketplace dynamics and propel your business forward. Here's your host, Gene Marks. 

Gene Marks (00:42)

Hey, everybody, it's Gene Marks. And welcome back to another episode of the Paychex THRIVE Podcast. Thank you so much for joining. Today we are going to talk about PEOs, professional employer organizations. We're going to find out what they are, and we have some very, very specific questions to ask our guest, because she is an expert in PEOs. Her name is Tami Tillery. Tami is the Senior Manager of PEO at Paychex. So, first of all, Tami, thank you very much for joining. I guess you're, are you calling in from Rochester? Is that where you are? 

Tami Tillery (01:14)

Actually, no, I'm actually in Dallas. 

Gene Marks (01:16)

No kidding. I was just in Dallas earlier this week. Tami, I'm sorry. I don't think there's any Wegmans in Dallas. You're going to have to. 

Tami Tillery (01:22)

There's not, there's no Publix, there's no Wegmans, but we do have H-E-B, so that's always a good thing. 

Gene Marks (01:28)

Yeah. All right. There is that. And also, plenty of good barbecue down in Texas as well. So, there are so trade-offs that you have. So, Tami, let's talk PEOs. First of all, let's insult our audience. And have you explained to all of us what a PEO is? Go ahead. 

Tami Tillery (01:46)

Absolutely, Gene. So let's keep it simple. Right? A PEO is an all-in-one HR solution that's going to help make it easier for you to manage employee benefits, HR, payroll, and that all dreaded compliance. So really, it's a one-stop shop for all of your needs as a business owner, so you can really focus on what's important to you, which is running your business. 

Gene Marks (02:06)

So, when you work with a PEO and paychecks does provide these services, it is the PEO becomes, I guess, a joint employer. So, like, your employees are their employees and also your employees at the same time. Is that right? 

Tami Tillery (02:19)

It is. So, what we call it, we call it a co-employer relationship. Now, guess what? What? That means, though, is, is that you as the employer, the onsite or work site employer, you're still responsible for all of the hiring, the firing, your rules, stuff like that. What we really take on is the back office administrative responsibility so that you can focus on running your business. So the HR, the benefits, the retirement services, payroll, compliance, we help you manage all of that behind the scenes. 

Gene Marks (02:48)

That's fantastic. You know, PEOs have been around for a while, and back in the day, there was always sort of a thing because the PEO would issue the paycheck and it would have the name of the PEO on the paycheck. And employees would be like, who are these people? And what about my employees? But nowadays, because of ACH and all payroll is done online, it's not even really noticed. It's not a thing anymore. And employers have the same, we don't lose any rights or control over our employees. I have clients that use PEOs, but they still got paycheck protection money. They still get all the tax deductions as an employer, right? 

Tami Tillery (03:22)

Absolutely. And think about it like this. To your point, you're still responsible for the day-to-day operations, the day-to-day rules. We really help take on some of that liability and administrative burden. So, we have the ability to go out to market and shop Fortune 500-style benefits that typically wouldn't be available to small and mid-sized companies. So, we're able to bring a very robust solution to your employees while taking all that administrative burden off of you and help you stay in compliance with ACA and with all of the other rules and regulations that are out there. 

Gene Marks (03:55)

You know, you talk about compliance. You know, I speak to a lot of industry associations throughout the year. And part of my presentation, I do talk about workplace stuff, and I go through, you know, a lot of the regulations that have happened, particularly this year, changes in worker classifications and overtime rules and new rules from the EEOC and, you know, things like that. It's a lot for an employer. And I say to my audience, you know, who are business owners, "Like, guys you got to talk to like a PEO," because they take those 

Tami Tillery (04:22)

headaches away, you know, so much so. And, you know, when you think about all of the different services that we provide, of course, payroll, that's a give me. But the benefits. And when we talk about the benefits, you know, of course it's your, you know, your standard things that you think of, medical, dental, vision, but it's also so much more than that. And we're really able to reach out to those generational differences that employees have to really meet their needs where they're at. So we take a lot of, you know, the ACA compliance and the state, you know, mandates that are out there and all of the filings that you have to do. I mean, there's just so much that as an employer, you have to be worried about when it comes to having employees, just in general. And so, we really help streamline that and make it a turnkey operation. 

Gene Marks (05:05)

The way I look at it is like, you know, Paychex, you know, you know, you get payroll services from Paychex. Fine, they process your payroll, but you want to go to the next level and really have HR involvement. That's when you involve yourself as a PEO. 

Tami Tillery (05:19)

Well, think about all the different people you'd have to hire, Gene. Right. You'd have to hire a compliance person, a payroll person, an HR person, a benefits person, a tax person. And we really provide that as a one-stop solution. So being able to have those dedicated resources available to you to help guide you through the process and do a lot of that legwork for you definitely has value within it. 

Gene Marks (05:40)

Okay. You recently did a webinar about all the services that Paychex does. Tell us a little bit about that. 

Tami Tillery (05:48)

So recently we did a webinar for proven techniques for building a happy, healthier team, and that was conducted September 2024. And these questions that we're going to be covering today were directly from that. So, I highly encourage that if you weren't able to attend that specific webinar, please do so. The link can be found in the show notes below. 

Gene Marks (06:08)

Good. Okay, well, that's great. So, yeah, you mentioned these questions. So, one of the reasons why I wanted to talk to you is that lots of questions did come up. We've chosen six really good ones, and I thought we can use this podcast as an opportunity to go through these questions with you and have you respond to the answers. And you've had them in advance, so you've had some time to prepare. Thank goodness. I don't want to sit there and hit you over the head. Here's a curveball for you. Let's get into it. So, on the recent webinar that you did, the first question, how do you educate managers and directors on navigating mental health issues among their teams? 

Tami Tillery (06:45)

Gene, to me, this is so important. I don't know if you know this or not, but one in five people suffer from mental illness, and it's so crucial for leaders to be aware of an individual's emotional wellbeing. Now, I say that, but I also want to preface it by saying leaders should not act as a therapist. Right. Instead, what we would encourage you to do is hold conversations to show your support and guide employees to those resources when needed. My biggest thing, and this speaks volumes with me on a daily basis, you know, always remember that listening is more powerful than speaking. Right. Proactive listening. Show empathy. How do you do that? You do that by being attentive, by asking thoughtful questions, by validating their feelings, by mirroring, just being aware of their overall body language. So, you really want to put aside any personal biases that you have and don't try to solve their problem, but instead relate to them and try to understand where they're coming from. Lead by examples and prioritize your own self-care. I can't tell you how big that is. Lead by example and prioritize your own self-care. And then know where to go for resources. I mean, here at Paychex, we focus on employee holistic wellbeing with a strong, strong focus on mental health. We have resources available through our EAP health advocacy and different training modules, but utilize those resources available to you. 

Gene Marks (08:08)

You know, it's funny, mental health. I mean, I'm 59 years old, okay? So, I come from that generation where people just didn't talk about that kind of stuff. 

Tami Tillery (08:16)

Exactly. 

Gene Marks (08:17)

And it's changed. And listen. I mean, the average business owner, people that listen to this podcast. No, because I've said this statistic a million times. But the average age of the us small business owner is over 55. So, they're in my generation. And we have to understand as business owners that we have four generations in the workplace, the Boomers, the Gen Xers, the Millennials, Gen Z, they're going to ask about these questions and we need to respond to them, correct? 

Tami Tillery (08:43)

No, absolutely. And you brought up a key point, those generational differences. Right? Every generation wants something different. You know, it may be when we're thinking about the generations that you have working for you, they all find value in different things. So, it's imperative that you target those things to ensure that your employees are feeling valued and cared for. And this may come in a multitude of different options. Right. But definitely be aware of who you're employing so that you can meet their needs, where they're at and where they want to be. 

Gene Marks (09:14)

All right, let's go to the next question. Let's talk about some techniques other than benefits to be that we can be used for happier employees. Obviously, people think like, oh, well, having somebody employed here is we just give them health insurance or retirement benefits, and that's going to make them happier. But obviously, there are other things that companies can be doing to create a good and a happy workplace, right? 

Tami Tillery (09:37)

Absolutely, sir. There are definitely other things that they can be doing. And I really think of three key points when I talk about this, you know, promote work-life balance. I know that's a lot easier said than done, right? But think about it. Get creative. Is there an option for a hybrid work schedule? Maybe a three-day weekend once a month? Maybe you have a pet-friendly office, do a virtual lunch and learn, encourage breaks. I mean, there's so many different ways that you can promote work-life balance. So that's number one. Number two, you want to make sure that you're consistently and effectively communicating with your team members. All right. Refrain from only speaking about work. And I know we are being pulled in a million different directions, and I get that. And we have things that were due yesterday. But when you're speaking to your employees on a regular cadence, make sure you're also inquiring about other things that are important to them. Their family, their interests. Build that strong relationship. And I'd say last but definitely not least, lead by example. Set boundaries and show them firsthand how you prioritize self-care so that when you are at work, you can be your best and give your all. 

Gene Marks (10:46)

All right, Tami, so another question that came up on one of your webinars was about monitoring mental and physical wellbeing. What does that mean? 

Tami Tillery (10:56)

You know, you really want to know where your employees stand on any given day. What we would strongly suggest is that you conduct regular one-on-ones, randomly check in with your team. I personally send my team a chat every day just to check in and get a pulse on how they're feeling. You know, is there anything I can help them with? Are there any obstacles that I can remove from them? So, make sure that you're randomly checking in as well as consistently checking in, and also when you can be on camera, be on camera. I'm a big proponent of that. I think that by monitoring body language with folks, you can really tell what kind of day they're having and what kind of mindset that they're in so that you can support them where they're at and hopefully help get them to a better place. Another suggestion that I want to throw out there is maybe you want to send out some surveys, anonymous surveys, and have your team provide feedback. The one caveat, though, that I would speak to that is if you're going to do any type of survey transaction, make sure that you're communicating what you're actually doing with it, with that feedback. So don't just do a survey and then not follow up with it. Make sure folks know what was viable, what you can actually take action on, and the positive impacts that that feedback has. 

Gene Marks (12:07)

It's funny, Tami, is I'm hearing your answers to these questions. This is about mental health. It's about monitoring your employees. It's about creating a nice, good workplace. And you're talking about communicating with your employees well and connecting in with them and spending the time with them. And a lot of us as business owners, we forget that we get so wrapped up in our day-to-day tasks. We run around, we shut the door to our offices, we run in, we run out, we're on the phones with customers or suppliers, but we're ignoring our employees that are there. And I just think that this just serves as a real reminder for all of you guys that are watching and listening to this right now, and me included, we need to do better to be present with our employees. They want to be heard and they want to connect with us. There is one of the biggest advantages of running a small business, I think, is that you can really have relationship with people, really make them feel like they are part of something. And, you know, it's not just to benefit the business, but your employees themselves. They want to connect with you. They want to be part of what's going on, you know? And so, your points are so well taken about it's not just mental health, it's not just the right workplace. It's just about being a good human and interacting well with other humans in your office, you know? 

Tami Tillery (13:25)

Well, Gene, and as cliché as it may sound, you know, your employees are your number one asset. You know, they're going to directly impact your bottom line. And so, it's critical that we really take care of them. Right. And especially with society as it is today, mental health is the number one issue. And so, we want to make sure that we just give them what it is that they need, you know, to be successful for our business. 

Gene Marks (13:49)

All right, another good point. And this is a great question that was asked because it's, it's a critical question and it's about educating your employees. The question is, how can employers announce new wellbeing benefits that are available to employees? How do you communicate this stuff to your people, Tami? 

Tami Tillery (14:07)

Well, it goes back to that keyword that we were just speaking about, communication. Right? Transparency. So, you know, if you're already conducting meetings, whether it be team meetings or company meetings or one-on-ones. Definitely announce it during those opportunities, but also think outside the box. What about an email campaign out to your employees? What about a specific newsletter? Maybe you want to do a wellbeing newsletter and get that out to your folks to let them know the resources and show that the company cares. Posters, I mean, the sky's the limit here in how you announce it. Just make sure that you're aware of who your audience is and how they're going to best receive that information and digest it. 

Gene Marks (14:50)

So, Tami, you bring up such a good point about communicating to you, to your employees and educating them. And we're talking about creating a happy workplace. We're talking about providing good mental health benefits and getting engaged with your employees. But I got to tell you, I speak to so many different business owners across all different industries about the benefits they provide. And one of the key things that they don't do is they don't educate their employees about their benefits. I don't know if you feel the same way, but it's like you go to a typical company and they got multiple health insurance plans, and like, the assumption is that everybody's like an expert at health insurance and it's complicated. And employees need to know what plan is best for them. Yeah, they need to know what retirement plan is best, what mental health benefits might be good for them as well. And I have some clients that invest in that. They have their benefits. People come out quarterly and speak to their employees and give them education as to all the benefits, because the smarter that the employees are, that your employees are in making these choices, the better choice that they'll make, the happier that they will be, and frankly, you'll probably get the better affordability of the benefits, better return on investment of the benefits that you're investing in. So your point about communicating could not be more well taken. 

Tami Tillery (16:11)

No, I definitely agree with that wholeheartedly. And one of the things I think of that comes to mind when I hear you speak about that is the average employee nowadays wants to be offered 24 different benefits to feel valued and cared for by their company. Now, that's just being offered. That doesn't mean they're going to enroll in everything. And that doesn't necessarily mean medical, dental, vision, life. What it means is they want to be offered different things. Maybe that's paid time off, maybe it's a flexible work schedule, maybe it is those other types of products, maybe it is the mental health resources, but they want to be offered all of these different things, and that's great. But to your point, you have to educate and you have to recirculate the information periodically to make sure that folks don't lose sight of all of the great benefits that you as the employer are offering to them because even though they may not need it today, they may need it tomorrow or in the future. So, I definitely like that, you know, conversation about having the different opportunities, making sure that they know what's available to them, circulating it on a regular cadence of and a reminder every now and then is always a good thing because there's just so much to be known out there. 

Gene Marks (17:25)

Agreed. Tami, what is an EAP? 

Tami Tillery (17:30)

An EAP is an employee assistance program. So it's going to offer a variety of different resources to an employee. Now, it's very different than your traditional, say, medical insurance because what this is is typically a free service. It's confidential and it's tailored directly to these employees. And it's going to offer with pretty much everything that you could imagine it can assist you with. So, one of the things that I think about specifically is it helps with, you know, work-life balance like we've talked about. It's going to help with financial issues, legal issues. It'll help you with, you know, counseling services for family and marital issues or substance abuse, you know, research that you may need to have done. It's all of these different things. It can even go as far as to do childcare and elder care referrals. Generally they're provided by your employer free of cost or as part of your benefits package. Want to keep in mind that these are confidential and designed with the employee in mind so you don't have to worry about information being shared with an employer or anything like that. And I like to give some specific examples to the EAP when I talk about to really bring life to it and kind of share all of the different components that it offers. So, I've personally used it for, you know, counseling services and things like that. But I've also used it for some fun stuff. I've used it for when I'm wanting to plan that vacation and I just don't have time to do all the research. But I know kind of ideally where I want to go and I know about what my budget is and I have a time frame in mind, but I need someone to do the legwork for me so they can do that. I had a situation with a client of mine where her childcare just up and closed and she was a working parent, a single parent, and needed to be able to have her child in a daycare-type facility. So, she was panicking. She had very little notice. She only had a couple of days. She was able to call the employee assistance program directly, tell them what her requirements were. They went out, did the research, came back to her and said, look, here's some accredited locations available to you. Here's the pricing. And she was able to get her child re-enrolled very quickly. I also like the story of one time where I had an employee assistance program that I was personally using. I needed to find a very specific gift for a holiday, and of course, I procrastinated, Gene. I waited till December 23, go out and start looking for this specific item and could not find it. Okay. The closest place to me was 150 miles away on December 23. I wasn't about to travel, so I ended up calling the EAP in desperation and said, look, if I don't find this, I'm going to be the worst person in the world. They're never going to forgive me. They wanted this one thing. How can I make it happen? They did the research for me and found it at a store 12 miles from my house. It was not on their website, but they had it, and they held it with my name on it. So, it's all of these different things, right, that an EAP can do? Yes, it can help with the big stuff, wills, legal issues, work life balance, but it can also help with some of the fun stuff, too. 

Gene Marks (20:49)

I mean, this sounds like a concierge at a hotel you're calling on for any and all. 

Tami Tillery (20:56)

It really is. It's like an all-in-one. It's like, what do you need help with? They've got you. 

Gene Marks (21:01)

It's hilarious. So, is EAP, is this a service that's provided by Paychex? 

Tami Tillery (21:08)

It definitely is. Yes, sir, it is. It’s a product available on our PEO platform. It's also, you know, it's available for employees both full-time and part-time. So, we want to make sure that everyone has access to this resource. 

Gene Marks (21:22)

So, my understanding is, without getting into, like, fees or costs, but, you know, depending on what I sign up for with Paychex's PEO services, EAP may or may not be a part of that. And if it is a part of that, I basically have, like I said, a concierge for my employees that they can call to, I guess, make dinner reservations, babysit their kids, set up their next vacation to Mexico. 

Tami Tillery (21:47)

Speaking of dinner reservations, Gene. Yeah. I want to tell you about a dinner reservation real quick. I do not cook. Okay. I am not the cook in my family. I do not. I do not act like I am, but there was one night that my husband unexpectedly messaged me and said, hey, we have a dinner party that we need to host. I was freaking out, okay? Needed to get my house clean, needed to cook, needed to do all these things. I called the EAP and said, look, here's my dilemma. What can we do? They immediately got me in contact with a catering service that was going to be able to come to my house and set up and do everything. And they were able to find me a cleaning service that could do a same-day appointment. So, there's definitely opportunity to be had. And let me just say that my hair was saved that day. It did not turn gray or fall out. I was able to get all of that accomplished, and we did that dinner party without a hitch. 

Gene Marks (22:42)

So, I’ve got to tell you, I've never heard of such a service before. That is absolutely amazing. Is this, like, a unique thing to Paychex's PEO services, or is EAP, has that been a thing? 

Tami Tillery (22:59)

EAP has been a thing, most definitely. And it's one of those benefits, again, that I don't think gets spoken about enough. And so, it really is an education. Typically, it's included. But because you're so focused on the big-ticket items like medical, dental, vision, life, all of these things, sometimes this kind of gets pushed to the side. And so, it's nice to bring it back and say, hey, here's a benefit for you. And what, what better way than with mental health, right? You see, an employee is stressed. They're spread thin. They need some support. You know, maybe they don't have family and friends that are directly around them to be able to provide that support. And it takes a village, right? Here's their village at the end of the phone. Okay. That can help support them. 

Gene Marks (23:42)

Oh, my God. That is hilarious. All right, well, that is great stuff. Anything else you want to say about PEO services before we wrap things up? This has been extremely educational. 

Tami Tillery (23:51)

No, I mean, definitely. I appreciate you having me today. And I would say that anybody that is interested in learning more about a PEO should definitely give us a call. Like I said, we are a one-stop solution when it comes to all of those things that we discussed today and so much more. So definitely, if we could be of any assistance now or in the future, feel free to reach out. 

Gene Marks (24:11)

Thank you very much, guys. You've just been listening to or watching Tami Tillery. She's a Senior Manager of PEO (professional employer organization) at Paychex. Tami, thank you so much for joining. That was a lot of fun. You have been watching and listening to the Paychex THRIVE Podcast. My name is Gene Marks. Thank you so much for your time. If you'd like to sign up for our Paychex newsletter, you can get tips and advice and help for running your business, as well as get links to prior episodes of this podcast. You can sign up at paychex.com/thrive. My name is Gene Marks, again, thank you so much for joining. We'll see you again next time. Take care. Do you have a topic or a guest that you would like to hear on 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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