We are very excited to bring to you this month’s Executive Profile. John Harman is the CEO and Founder of Integra Insurance Solutions, a consulting firm working exclusively with PEOs. Harman launched the company in 2016 with a mission of being a concierge client-centric firm. His work spans those who wish to outsource their complete benefit offering to those just needing expertise in a certain area.

Harman, while launching Integra as a startup firm, is a veteran to PEO, spending a decade in the industry, including almost six years as the President and CEO of Compass Consulting Group, Inc.

A spirited fan of his Alma Mater, Virginia Tech, he wanted to build a firm that met the needs of his clients and employees alike. He created the firm believing that meeting the needs of both, would equate to success for all.

Whyman:

Thank you so much for agreeing to this interview.

Harman:

Thank you for asking.

Whyman:

So, since you are approaching PEO from the insurance side of the house, how do you see healthcare and the PEO business model evolving? Any impact you see from the political landscape?

Harman:

The PEO industry has been greatly impacted by the volitality of the healthcare systems since the introduction of the ACA. Initially, the PEO industry benefited because the ACA led to uncertainty in the market place. Many small business’ were confused as to their obligations under ACA and PEO’s were well positioned to help guide them with advise and tools to keep them compliant.

In addition, many PEO’s with master health plans were better able to attract small employers because of the large group nature of their programs. Since they were able to underwrite, healthy groups could gain a better rate from a PEO than they could the community rated pool in the open market. Today, under the Trump administration, there is the potential for more PEOs to enter the market with Master health plans.

Trump has proposed to open up small group association plans which naturally leads into PEO large group plans as well. If this moves forward, more carriers could see PEO as a great distribution channel and partner. While this will be a positive, the increased competion from association plans will require that a PEO deliver more on their value propostion and deliver other services. As with most things, those who find a way to embrace the change will capitalize.

Whyman:

Speaking of that, you must work with a lot of different types of PEOs? How has your experiences differed?

Harman:

We have worked with all types of PEO’s from start up’s to some of the largest and oldest PEO’s in the market. Our delivery model is somewhat unique in the marketplace for what we do. We don’t have a standard package of services that we bundle for every PEO. We offer more of an ala carte menu of services that are designed to help a PEO fill the gap in their in house expertise.

We take time to get to know our clients and where their core competencies lie. If we identify a gap in their knowledge, we work with them to provide consulting services or technology platforms that fill the gap and improve their overall program. Our goals is to be a valued partner that is seen as an extention of the PEO’s senior team.

Whyman:

Almost like the PEO itself, interesting. To provide such ala carte services, how important is human capital and having the right people on the bus?

Harman:

It is critical. First you have to determine what are the seats you are trying to fill. Each seat requires a different person and if you don’t have the right person, the others on your team will recognize it and that leads to culture problems. In most companies, the people and the culture are the company. Making the right hires and having them in the correct role will almost always lead to success.

Whyman:

I could not agree more, I have seen it go right and than terribly wrong. So you launched Integra Insurance Solutions about a year ago, what are three things that you really enjoy about this position?

Harman:

I appreciate the ability to build a business that is truly based on helping our clients achieve their goals. Everyone at Integra understands that if we help our clients achieve their goals, we will not only achieve our corporate goals but our individual goals as well. I want every employee of Integra to balance their live with both personal and professional goals. We won’t loose sight of what matters to us, family and our clients.

Whyman:

Sounds very similar to what McHenry aspires. What about companies looking to make an acquisition? Do you have any words of advice?

Harman:

Make sure that the cultures of both organizations are aligned. Too many times, what looks like a great business opportunity is derailed because the cultures are too different. Don’t ever underestimate how important the culture of an organization is or how long it takes to change it.

Whyman:

Totally, it should be a due diligence item, culture match making.

Harman:

Absolutely.

Whyman:

Before you take off, I would love to ask you a more personal question…anything on your bucket list?

Harman:

I would very much like to visit the great pyramids of Egypt. I marvel at how they were able to construct such massive and architecturally amazing buildings with purely manual labor. The ability of people to dream up things and then build them has always been impressive to me.

Whyman:

So impressive, almost surreal. I hope you make it.

Harman:

Thank you, me too.

Whyman:

Mr. Harman, thank you so much.

Harman:

Call me John, and your welcome.