MESSAGE FROM OUR CEO’S DESK

I recently got back from the TroopHR retreat in Arizona, the final stop of a whirlwind 10-day work trip that started with the Wendy Road Retreat in Charleston and continued with client meetings in San Francisco before ending in Arizona.

During the Troop retreat, I went to a breakout session led by Melanie Naranjo, CPO at Ethena, where she talked about something that every leader has felt at some point in their career: a “cycle of stress” that traps then drags us down. This is especially true for people leaders. 

Melanie and others in the room talked about how HR stress is rarely caused by new problems and can usually be attributed to repeating ineffective patterns. We carry the weight of risks leadership ignores. We watch employees get harmed, and we feel a personal responsibility to fix it, despite having zero formal authority.

HR often has 100% of the responsibility but 10% of the authority. Living in that gap makes people leaders feel like enforcers instead of partners, leading to resentment and the inevitable burnout.

Melanie’s breakout session was a total perspective shift. Here are four lessons I brought back to help us level-up our approach:

1. Stop being the only one with the answers.

   As HR leaders, we often show up to meetings with a long list of ideas and solutions we’re genuinely excited about. Because of that, hearing a "no" from leadership can feel like a total defeat. Melanie encouraged us to stop solving in a vacuum. Instead, start asking questions that force leadership to share the mental load:

• "What’s your plan for this risk?"

• "What would need to be true for you to change your mind?"

• "It feels like we’re not on the same page. What does success look like to you?”

2. Focus on what’s in your control.

   At People Function, we teach leaders to maintain their focus and balance by categorizing their stressors then directing their energy toward the areas where they have direct agency and influence (and to stop grinding at the third bucket!). Ask yourself, what do I:

• Control: What can I directly decide?

• Influence: What can I shape through data and relationships?

• Acknowledge: What’s frustrating me but sits entirely outside of my power?

Name the issue, recognize the impact, and release it. You can’t keep setting yourself on fire to keep a company warm.

3. Trade perfection for momentum.

   HR leaders tend to overbuild because we feel scrutinized. But the truth is, leadership doesn’t care about how polished our processes look. What they care about are the outcomes, i.e. retention and revenue. 

   
   Shift your focus to working toward results. Ship the simplest useful version, call it "Phase 1,” and iterate based on feedback. A tool or process that helps people now beats a perfect manual that arrives six months too late. (AI makes it even easier and quicker to ship your MVP!)

   
   

4. Know when to leave.

   They say the definition of insanity is doing the same thing over and over while hoping for a different result. A few years ago, I coached a leader at an extremely toxic company where we had previously worked together. She was pouring all her energy into trying to get the leadership to evolve, even though she knew (and I knew) they weren't going anywhere and had no intention of changing. I suggested she stop the uphill battle.

   
   HR professionals are natural fixers, but we often fall into the trap of trying to repair environments that are fundamentally broken, and it’s an exhausting pursuit. Sometimes, the most strategic move you can make is accepting that an organization just isn't aligned with your values. Protecting your well-being is more important than trying to shift a culture that doesn't want to change.

The takeaway: We can’t trade our well-being for a company that refuses to evolve. If you're stuck in a stress loop, stop replaying the same un-winnable conversation. For your sake, you need to change either the questions you're asking or the room you're sitting in.

Best of luck out there!! And major shoutout to Melanie for being someone I constantly learn from. <3

ASK THE EXPERTS 🧠

Our experts are ready to answer your most common HR and compensation questions.

Question: For fast-growing companies, what compliance gaps do we often see first? How can we catch it before it becomes a problem?

Rapid growth is exciting, but it often outpaces infrastructure. In our experience helping partners scale, these are common HR risks and the proactive steps you can take to mitigate them. (Psst.. We can help!)

1. Misclassification (FLSA Status)

• The Gap: Startups often default to classifying all employees as salaried (exempt) to simplify payroll.

• The Risk: If an employee’s duties or salary level don't meet DOL criteria, they are legally non-exempt. This can lead to lawsuits and mandatory back pay for all overtime worked.

• The Fix: Conduct a classification audit. Verify that every exempt role passes the specific duties test required by law.

2. Compensation Discrepancies

• The Gap: Determining pay based on a candidate’s ask or salary history rather than fixed pay bands.

• The Risk: Pay equity gaps. Statistics show that women and people of color are less likely to negotiate aggressively, leading to similar roles having vastly different pay, which creates a high risk for discrimination claims.

• The Fix: Establish consistent pay bands. Run a regular analysis on titles, gender, and ethnicity to ensure pay parity across the organization.

3. Lack of Performance Documentation

• The Gap: Managing performance through informal chats rather than documented reviews.

• The Risk: Without a paper trail, terminating an underperforming employee becomes a legal liability. Inconsistent documentation is the smoking gun in most unlawful termination lawsuits.

• The Fix: Standardize performance templates. Ensure managers provide real-time, written feedback so there are no surprises during a separation.

Have an HR- or operations-related question? Submit it here to see it answered in an upcoming issue!

THE HR BRIEFING 🗞️

THE LATEST NEWS TO KNOW

HR headlines and stories, curated with our perspective. 🤝

HubSpot and Vanguard are facing lawsuits that allege they used Performance Improvement Plans (PIPs) as a pretext to fire employees, specifically targeting one individual for taking parental leave and another following an Alzheimer’s diagnosis.

• ↪️ PFunc’s Perspective: These lawsuits are a reminder that performance feedback should be happening consistently. While many companies use PIPs as an "easy" way to manage people out, if performance conversations only ramp up after a an employee makes protected disclosure, then courts will see the PIP as retaliation and discriminatory.

AI has officially knocked DEI and immigration off the top spot for employer anxiety in 2026; over half of HR teams are now using the tech while also bracing for a massive wave of new workplace laws.

• ↪️ PFunc’s Perspective: We're not surprised! AI has the capacity to change everything. HR teams are already spread thin and strapped for resources, and now AI has become a new thing to learn and figure out, while also being an existential crisis that could eliminate many jobs. Our suggestion to leaders is to become adept, and use AI to your advantage. Remember last week’s Star Wars lesson: AI is our co-pilot while we focus on the mission.

A couple of other stories we think you might like:

• Human Resources Director: 24 Americans being monitored for Hantavirus exposure means it's time to revisit your sick leave and health safety protocols.

• Gallup: American workers 55+ are confident in the current job market while those aged 15 to 34 are bracing for impact, marking the widest generational optimism gap in the world.

COMPLIANCE CHECK

Watch out for these HR compliances going into effect (or hitting deadlines) this month.

• California (eff. 5/13/26): Pay data reports are due for companies with 100+ employees. 

• New York (eff. 5/15/26): Companies with 15 to 29 employees must provide retirement benefits as part of the New York State Secure Choice Savings Program.

• Federal (eff. 6/1/26): Employers must ensure they or their partners file the 2025 Prescription Drug Data Collection (RxDC) report with CMS to avoid compliance penalties.

THE OPPORTUNITY EXCHANGE 📈

ROLES ON OUR RADAR

The PFunc job board is packed with open roles across our client companies, making it easier than ever to tap into our network.

This week, we’re highlighting remote job openings.

• Vinyl Equity, Customer Success Lead - Build the customer success function from the ground up at this Chicago-based startup.

• Honeycomb.io, Senior People Business Partner - Partner with GTM leadership to drive org strategy, talent performance, and high-impact people cycles.

• Casca, Director of Customer Support - Architect an AI-first support engine as a founding leader reporting directly to the COO.

See a role you’re interested in? Reply to this email and we’ll try to connect you with the hiring team. Hiring for an open role yourself? Reply to have your job featured in an upcoming PFunc Pulse issue.

WHERE TO NEXT?

Our team is always on the move, popping up at the HR events, conferences, and summits we actually love.

MAY

• Escaping Time Opening Reception (Governor’s Island, New York City) – Saturday, May 16, from 1 to 4 p.m.

  • Support a good cause and say hi to Emma at the 2026 Season Opening Reception of Escaping Time, a free event showcasing artwork and poetry from incarcerated artists.

JUNE

• Block your calendars! We’re announcing June’s PFunc Plays Hooky in NYC in next week’s issue. Stay tuned 👀

CHRONICALLY ONLINE📱

When your social battery hits 0% at the office. 🙃

Join 100,000+ followers across PFunc’s Instagram, TikTok, and LinkedIn, hailed as “one of the best HR accounts online today.” 😉

STAY IN TOUCH 💌

If you’re interested in fractional HR support for your team, reply to this email or contact us to learn more about our offerings, pricing, and how we can support your growing company.

Join the Talent Network here (it’s free!). Whether you’re actively exploring new opportunities or happily employed but open to the right fit, becoming part of our network boosts your profile when roles align with your experience, skills, and career goals.💡

🗣️ Thoughts, feedback, requests? Let us know! 🗣️

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Every Tuesday, The PFunc Pulse delivers the HR news and compliance shifts you actually need to know about, without all the corporate fluff. Emma brings her unfiltered take on the trends keeping CEOs awake at night, served with the gritty, practical wisdom of a founder who’s seen it all. Real talk for better people decisions, week by week. (P.S. Do your work bestie a favor and forward this— friends don't let friends do old school HR. 🫢)