MESSAGE FROM OUR CEO’S DESK

I truly cannot believe I’m about to say this… but this week’s newsletter is about soccer. 

On February 17, during a Champions League match between Real Madrid and Benfica, we saw a case study in institutional failure that mirrors the corporate world so perfectly it hurts. Our Recruiting Practice Lead, Lindsay, and my husband are both MASSIVE Arsenal fans (COYG), so they keep me updated on all things soccer. They told me about what happened in this game and my jaw was on the ground. 

The Setup

Real Madrid’s Vinícius Júnior, an Afro-Brazilian forward, scores a goal. He celebrates. If you’ve ever watched a game, you know that everyone celebrates. Yet, Vinícius is handed a yellow card for it. Then, as play resets, Benfica player Gianluca Prestianni pulls his shirt over his mouth to hide his lips from the cameras and says something to Júnior.

Prestianni reportedly called him a “monkey” five times to his face, within earshot of his teammate Kylian Mbappé (who is of Cameroonian and Algerian descent), as well as some Benfica players.

Júnior did exactly what we tell employees to do - he went straight to the authority figure. The refs triggered the “racism protocol,” stopping play for 11 minutes. But because there was no clear evidence (thanks to Prestianni hiding his face behind his jersey and his teammates staying silent), the game restarted without any immediate punishment. Real Madrid went on to win 1-0, with Júnior’s goal as the only point scored.

The Kicker

Benfica’s institutional response was a masterclass in dodging accountability. Days later, when UEFA issued a one-game suspension, Benfica didn't just disagree, their manager was indignant. He effectively said, “Our guy was wrongfully accused… where’s the evidence?”

Instead of protecting their own Black players, they:

• DENIED: The manager publicly backed his player. The teammates who were close enough to hear the slur stayed silent.

• CALCULATED: The logic was transparent: “He’s a starter. We need him to win. Admitting this happened is a distraction we can't afford.”

• SKIRTED VALUES: They pointed to their 1960s legend, Eusébio, who was Afro-Portuguese, and pulled the ever-familiar “HEY! We can’t be racist! Look at how much we love Eusébio!”

The Corporate Parallel

We’ve all seen this play out in the office. A high-performer is accused of misconduct, and leadership immediately does the “Benfica Math.” They look at the revenue that person brings in, the culture they represent, and the lack of a smoking gun, then choose to minimize.

But as leaders, it’s important to know that in those moments, the question isn't actually, “What happened?” The question is, “What kind of organization are we?”

Do we treat the allegation as credible and act, even if it costs us a star player? Or do we hide behind the lack of perfect proof to protect our bottom line? My colleague often says she doesn’t believe social justice and capitalism can fully coexist in the same organization. When the two conflict, the company often chooses what benefits them, measured in dollars, revenue, or wins, not justice.

The Signal

When you publicly defend the accused without a real inquiry, or frame a racial slur as an overreaction, you’re sending a loud, clear signal to your marginalized employees that their safety is negotiable.

At People Function, we believe values can never be compromised - and honestly, compromising them will eventually hit your bottom line. We saw what happened when SHRM stripped the “E” from DEIB last year - it was a signal to corporate leaders that they didn't have to be “uncomfortable” anymore. Subsequently, SHRM was slapped with a major discrimination lawsuit that ultimately resulted in an $11.5 million settlement. I wouldn’t be surprised if we start to see Benfica’s lack of values play out on the pitch (they're already slipping in the title race as we speak).

The Takeaway: Whether you’re a coach in Lisbon or a CEO in New York, if you aren't willing to lose a star performer or a major client to uphold your values, those values are just marketing. And eventually, a lack of values will sink you.

Stay gritty!!

ASK THE EXPERTS 🧠

Over the next few issues of PFunc Pulse, we’ll tackle the most common compensation and review cycle questions with expert insights from our team.

Question: Should companies conduct cost of living adjustments during review cycles?

Something important to remember is that companies generally don’t pay based on the Cost of Living. While that may feel counterintuitive, the reality is that basing pay on individual financial needs makes standardized compensation nearly impossible to manage. Because every employee’s personal expenses are different, indexing pay to living costs would create a pay equity nightmare.

To maintain fairness and scalability, we focus on the Cost of Labor, which is what the market currently demands for a specific skill set. This ensures compensation remains competitive within the market while upholding the integrity of our pay equity standards.

Looking at this year, as we’ve been saying over the past few issues, disciplined, strategic spending is the name of the game. Here’s what the benchmark reports advise:

• 3.5% Average Increase: According to Mercer’s 2026 Compensation Planning Report,  most U.S. companies are budgeting for this total salary increase in 2026.

• The COLA Shift: Payscale reports that only 26% of organizations plan to use a formal inflation-based increase (COLA) this year.

• Stable Projections: WorldatWork data confirms that while inflation is still a factor, the pressure for emergency pay bumps has subsided as voluntary turnover rates normalize.

With all of this in mind, we advise you target your 3.5% budget where it actually moves the needle:

• We said it in Issue #26, but it bears repeating: Reward high-impact players who are driving results.

• Close Market Gaps: Use current data to see if specific roles (like People Ops!) have surged in market value.

• Total Rewards: Payscale's report (p. 94) encourages leaning into “unconventional” perks, including 4-day workweeks, student loan repayment, and mental health or wellness benefits since these often go further than a small, taxable bump.

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

THE BRIEFING 🗞️

HR NEWS TO KNOW

The latest HR headlines and stories, curated with our perspective.

The U.S. gender pay gap more than doubles over a career, widening from 12% at entry to 25% after 30 years as men’s wages climb while women’s earnings typically plateau in their late 30s, Glassdoor reported.

• ↪️ PFunc’s Perspective: It’s not a coincidence that women’s earnings plateau around the time that women tend to take parental leave. In order to retain high performing women and build an equitable workforce, it’s important to have inclusive leave policies and support mothers’ return to office. Auditing your promotions processes to ensure fairness and equity is also key to closing the gap.

Another HR story we think you might like:

• HR Dive: Two of Trump's anti-DEI orders stand–for now

WHAT’S HAPPENING IN AI

Here’s the latest AI news to know and why it’s important to HR.

By 2030, nearly 50% of current HR activities could be automated or AI-performed, per Gartner’s latest report, creating a critical moment for CHROs to bridge the gap between AI experimentation and true strategic impact.

• ↪️ PFunc’s Perspective: Emma has been constantly saying this lately: An HR leaders’ value over the near- and long-term sits almost entirely in their ability to become a true partner to the business. HR’s value is not the activities that we do, but the value we can create for the rest of the organization. AI will never replace the high-trust, human-to-human guidance that defines a career, but it will certainly handle the boring stuff we don’t want to do anyway. Bring on 2030!

35% of HR leaders and 30% of executives are prioritizing a structural reset for 2026 that merges HR and IT into a single, AI-driven outcomes engine.

• ↪️ PFunc’s Perspective: Your workforce strategy is your technology strategy. We’re not just deploying tools; we’re merging human intuition with AI-driven outcomes to eliminate time wasters. But don’t be lazy with it and just automate the old model: build a new one where HR and Tech act as a single, seamless engine.

COMPLIANCE CHECK

Stay ahead of HR compliance as these latest updates take effect.

• New York (effective 3/18/26) - Private sector businesses with at least 10 employees must now provide retirement benefits. Depending on company size, deadlines are March 18, May 15, and July 15. 

• Ohio (effective 3/19/26) - All nonresidential construction contractors, subcontractors, and labor brokers are now required to E-Verify new hires. 

• Federal (effective 4/15/26) - All employers and group health plan sponsors must file Form 8928 to self-report compliance failures in their health plan administration.

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 the newest open roles and one from our all-star recruiting team.

• Cocoon, Engineering Manager - This early-career engineering role merges technical expertise with high-impact people skills.

• Redoxblox, People Operations Generalist - High-impact opening for a People Ops veteran in San Diego.

• Small Door Veterinary, Member Experience Coordinator - Drive a seamless membership-first veterinary experience in this NYC-based support role.

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.

RECOMMENDED RESOURCE💡

Check out this resource for HR leaders, CEOs, and founders like you, vetted and recommended by us!

Ashby - We’ve seen a lot of ATS platforms, but after working with the team at Ashby, we’re officially fans. It’s an all-in-one, AI-powered powerhouse that consolidates your sourcing, scheduling, and reporting into one clean flow. Reach out to streamline your hiring stack ASAP.

WHERE TO NEXT?

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

MARCH

• Transform 2026 Conference (Wynn Las Vegas)—March 23-25

  • Join the waitlist to attend the Wizard of Oz at The Sphere event, in collaboration with Justworks.

  • Let us know if you’ll be at the conference, we want you at our events! 🤩

APRIL

• Community Moves 2026 (New York City)–April 9

  • Emma will join the “Don’t Forget the Human Touch: Culture, Community, and Creating in the Age of AI” panel at Justworks’ one-day conference for small business leaders.
    

• Startup Leadership Salon (Fabrik NYC)—April 16 from 6 to 8 p.m.

  • Lindsay Glogower, PFunc’s Recruiting Practice Lead, will break down the strategy on who and how to hire.

CHRONICALLY ONLINE📱

Think you’ve heard it all? Emma and Leiya tackle an “insane” but shockingly common question from social media that every HR pro has likely faced at least once in their career.

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 ensures your profile is shared with recruiters 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, 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. 🫢)