Message from our CEO’s Desk

I cannot tear myself away from news podcasts. I find myself completely consumed with trying to figure out what is going on with tariffs, the looming trade war, the volatility of financial and crypto markets, and all of the downstream impacts on companies, startups, the job market, and the economy overall. I don’t know about you… but my head is spinning.

Economic uncertainty doesn’t just test a company’s resilience - it tests our creativity. While there’s no one-size-fits-all answer to how to survive this chapter, I’ve found that the most sustainable strategies are rooted in both operational efficiency and a deep investment in people. Here are some things I have been telling companies to consider or to put into effect in order to ride this wave of economic uncertainty:

1. Implement a geo-based pay structure - If all of your employees’ pay is benchmarked to a top tier city, consider implementing geographic-based pay differentials, i.e. paying .8x salaries for employees located in second tier cities. Hiring in lower cost-of-living regions can offer meaningful savings without compromising talent.

2. Reconsider office needs - I encourage companies to get creative here. What if we built intentional “remote-hubs”— clusters of teammates in key markets that allow for local connection, in-person collaboration, and culture-building without returning to a costly HQ? Here at People Function we pay ~$1,200 per month for our team to be in-person at WeWork once per week. I believe models like these could shape the next era of remote work. 

3. Manager development - Now is the time to hold on to your top performers, ensure they see a clear path at your organization, and are in it for the long-haul. Top performers leaving during a turbulent economic time can throw your organization into even more uncertainty. People don’t leave companies—they leave managers. Let’s equip our leaders to coach, support, and truly empower their teams. 

4. Skill-building and job enrichment - Utilize the skills of your top performers and charge them with helping to make your business more resilient to market changes, more agile, and prepared. This might mean tasking them with implementing AI into your business processes, or exploring a new potential sales vertical. When employees grow, so does the business. 

5. Mission clarity - Honesty, vulnerability, and admitting when you don’t know how something is going to pan out builds trust and psychological safety. The more clearly we communicate our purpose and goals, the more meaning and alignment our teams feel in their day-to-day work. The more you recognize the uncharted territory your business may be in, the more employees feel like they’re with you in the trenches. 

As leaders, our job is not to fear uncertainty, but to lead through it with steadiness, strategy, and heart. We don’t have to have all the answers. But we do have the opportunity to ask better questions, experiment boldly, and create workplaces that don’t just survive these moment, but come out stronger on the other side. 

Let’s keep going, together.

Emma

PFunc AMA

Question:

How can HR teams adapt ERGs (Employee Resource Groups) and affinity group programming in light of the new EEOC and DOJ guidance?

Answer:

ERGs exist for a reason — to support marginalized groups of people. That mission should never change. However, it’s important for ERGs not to be exclusionary — this is what can open companies up to lawsuits for having “discriminatory” resources that are for some but not others. For ERGs to survive they need to be inclusive. As you make ERGs more inclusive, make sure you don’t lose their initial purpose — supporting people who need community and are the minority in your company.

At a time when federal guidance is shifting, it's even more crucial that we, as HR leaders, double down on our commitment to equity while thoughtfully adapting our practices. Here are a few strategies we are leaning into:

1. Refocus on Purpose, Not Exclusivity. Position ERGs as spaces organized around shared experiences rather than identity gates. For example, a Black Employee Network can focus on advocating for, celebrating, and addressing the needs of Black employees, while also welcoming allies who are committed to learning, supporting, and advancing racial equity. Allies should enter these spaces in a spirit of support and solidarity, not takeover.

2. Prioritize Psychological Safety. Participation must never come at the cost of safety. Allies and members alike must understand that the role of an ERG is to amplify and prioritize the voices of those who have been historically marginalized. Set clear norms around listening, learning, and humility.

3. Embrace Transparency. Employees may have questions about how these changes affect them. Get ahead of it by communicating proactively about any updates to ERG structure or programming. Reaffirm your organization’s ongoing commitment to creating a workplace where everyone feels a sense of belonging.

4. Embed Accountability into Your DEI Strategy. Recognize that ERGs are not standalone programs. They are part of a broader organizational commitment to equity. Review how your policies, benefits, and leadership practices foster an inclusive environment for the communities your ERGs represent. Ask: Are you truly empowering them beyond their group meetings?

5. Keep Listening, Learning & Evolving. Solicit regular feedback from your ERG members and broader employee base. Stay rooted in your values, remain flexible in your tactics, and stay humble enough to course-correct when needed. Work with legal counsel or compliance experts to stay up-to-date on evolving interpretations of the guidance, and build flexibility into your programs so they can grow and adjust as needed.

Creating safe and affirming spaces for marginalized employees is more important than ever. It requires intentionality, education, and a willingness to adapt without losing sight of the why.

If you’d like to workshop ideas or exchange strategies for adapting your ERG programs while keeping your core values intact, we’d love to connect. We’re all learning and evolving together.

If you have HR-related questions that you’d like to see featured in our “Ask the Experts” section, please submit them here. You may see your question in our next edition! 

ICYMI Compliance Tips

Below are the latest HR regulatory and compliance updates published within the last month:

• New Jersey, (eff. 06/01/25) - employers who do business or have employees in NJ must provide pay and benefits details within job postings. Employers must notify employees about promotion opportunities that have been advertised, either internally or externally, before making any promotion decisions. 

• Virginia, (eff. 07/01/25) - the state has expanded their ban on Non-Compete Agreements to include all non-exempt employees.  

• Washington, (eff. 07/27/25) - signed by the Governor on 04/25/2025, the state will expand the use of paid sick leave to employees who need to prepare or participate in any judicial or administrative immigration proceeding involving the employee or their family members.

PFunc Recommended Resources

Check out one of our favorite new companies for the nerds in our lives:

• Friday Deploys - Friday Deploys creates apparel and accessories for work and leisure. They make everyday objects better, not just for function but for the moments of joy they bring to daily life. Whether you wear it or use it, every object is made with quality materials, expert craftsmanship, and attention to detail.

On The PFunc Market

Talent Spotlight

Below are a few fantastic, vetted folks who are actively on the market looking for new roles and consulting opportunities. Please reach out directly to the candidates or reply to this email if you’d like to learn more!

• Ariana Gaillard-Cohen, HR Director - Ariana is an HR professional with over 13 years of experience across the tech, nonprofit, and higher education industries, most recently serving as an HR consulting manager at Justworks. Ariana is open to temp-to-perm HR Director or HR Manager roles.

• Philip Schmid, Strategy & Finance Executive - Phil has a track record of helping founder-led companies grow, restructure, and scale, holding senior roles across consumer, tech, and media. Known for doing his own grunt work and moving fast, Phil is open for temp, contract, or project-based work where clarity, execution, and momentum are needed.

• Narda Malakzad, Product & Brand Strategist - Narda is a founder, pitch strategist, and product person. She has lived every phase of the founder journey and specializes in helping startups tell their story. Narda is open to full-time, part-time and temp-to-perm Director of Product roles.

If you’re on the market for a new role in HR/People Operations, Business Operations, or Leadership & Executive and Executive support roles, and you’d like to be featured in our “Talent Spotlight” section, please submit your information here.

Open Roles in our Network

• Alma, PFunc Client: Senior HRBP, Operations - This role will be a key thought partner to senior leadership, responsible for providing HR leadership and consultation across the Operations team (inclusive of CX and Core Operations teams, spanning both exempt and non-exempt employees). 

• GlossGenius, PFunc Client: People Business Partner - this role will drive people initiatives that align with business objectives and act as a trusted advisor to senior leadership on all people-related matters.

• Inspiren, PFunc Client: Director of Enterprise Growth - this Senior Sales Executive is someone with a firm grasp of the healthcare services industry and the ability to align prospect needs with our platform of patient engagement solutions. The ideal candidate has a proven track record of pursuit management, strategic selling, and a keen ability to develop deep client relationships. 

If you are interested in one of these roles please reply to this email with your resume and apply directly online. If you have an open role at your company that you’d like to highlight in our next newsletter, please reply to this email!

PFunc News

Team Member Spotlight

Darius Morris is a well-rounded HR professional with a strong background in compensation and a passion for leveraging data to drive strategic decisions. As a Compensation Consultant at People Function, Darius comes to us with deep expertise across compensation, benefits, HRIS management, and employee relations. Darius is a Chicago resident, an active real estate investor with a portfolio of rental properties, and a proud parent to Daniel and Naomi.

PFunc Highlights

• Join People Function and Newfront for intimate breakfast in NYC! Building your HR Tech Stack - May 15, 2025, 8:30am - 10:30am EDT: Come for coffee, food and an engaging conversation alongside fellow founders, operators, and leaders navigating the early stage of building their human resources function. As companies transition away from PEOs, a common question arises: what’s next? This off-the-record discussion will explore how scaling teams are approaching their HR tech stack - what tools they’re leveraging, what lessons they’ve learned, and how they’re making strategic decisions when time and resources are limited. Interested in being a part of this experience? Request to RSVP by replying to this newsletter.

Client Corner

We’re excited to have added so many new clients to our roster that span across many industries and stages:

• Backerkit - ​BackerKit is a comprehensive crowdfunding platform that provides creators with tools to launch, manage, and fulfill their projects. By fostering a collaborative community, BackerKit enhances the crowdfunding experience for both creators and backers.

• Gloss Genius - GlossGenius is an all-in-one business management platform designed for beauty and wellness professionals, offering tools for online booking, payments, client management, and marketing.

• Renaissance Philanthropy - Renaissance Philanthropy advises philanthropists, surfaces breakthrough ideas, and incubates ambitious initiatives to drive transformative progress in science, technology, and innovation.

We’re thrilled to be working with their teams!

Stay in Touch!

Are you interested in fractional HR support for your team? Reply to this email or click contact us to learn more about our offerings, pricing, and how we can support your growing company.

Do you have feedback about our content or things you’d like to see us feature in future editions? Submit your thoughts here!

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