Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 26

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 26
---
 providers, a failure by one or more of our service providers could cause a substantial disruption in our business while we seek alternative providers. Transitioning to substitute third-party providers could also lead to increased costs. Furthermore, we require that our partners comply with all relevant laws and regulations, including those encompassing anti-corruption, labor conditions, employment practices, safety and health standards, and environmental compliance. Although we have established policies and procedures to oversee these partnerships, the nature of these relationships inherently limits our direct control over their business operations. This limitation can potentially elevate our exposure to financial, legal, reputational, and operational risks. 

 If we are unable to attract, motivate, and retain key personnel and other qualified employees, our business and results of operations could be negatively impacted.

We operate in a rapidly changing technological landscape that demands a diverse set of skills and intellectual capital. To remain competitive and achieve growth, we must recruit, develop, motivate, and retain individuals who possess the necessary expertise across our organization. Additionally, we must cultivate our personnel to support succession plans that ensure continuity despite the inherent unpredictability of human capital.

Competition for employees is intense. We have introduced various human capital initiatives, such as employee wellness programs, employee resource groups, and an updated performance management process, to make our company an attractive workplace. However, with the increasing acceptance of remote work, maintaining and enhancing our corporate culture has become more challenging, as has managing the flexible working arrangements employees may seek. Our work environment might not meet the needs or expectations of our employees or could be perceived as less favorable compared to other companies' policies, which could hinder our ability to hire and retain qualified personnel.

We cannot guarantee that key personnel, including our executive officers, will remain with the company, or that replacing key employees will not lead to increased labor costs. The inability to retain or attract key personnel could have a significant adverse impact on our business, financial condition, and results of operations.

Rising prices and reduced availability of materials and services have negatively impacted, and may continue to negatively impact, our operating results.

We face risks related to the cost and availability of essential materials such as paper, plastics, ink, promotional items, merchant services point-of-sale equipment, and other raw materials, as well as various third-party services, including delivery and data provider services. Additionally, card networks like Visa® and Mastercard® periodically increase the fees they charge processors. Recent inflationary pressures have led to cost increases for some of the materials and services we use. If inflation continues into fiscal 2025