PEO Transition Case Study
See how a company with 450 employees transitioned from a PEO to HR Outsourcing.
HR Outsourcing Case Study: PEO Transition to an HRO
A Data Acquisition company with 450 employees in 18 states had been in a large PEO for the last 10 years. Though they thought they were receiving the overall value they needed, the PEO was unwilling to give them an exact breakdown of what they were being charged. They rated this PEO’s customer service as good and liked the “all-in-one” bill, but could not identify whether or not the true value was there.
Thought criteria that went into reviewing the Corban Solution
Specific expertise for employer law in multiple states
- HR (Compliance, Overall HR issues, etc.)
- Benefits Administration (Multiple carriers, bill reconciliation, enrollment in 18 states, questions that need to be answered by employees)
- Payroll (They were currently doing most of the work to get the data to the PEO and entering it online themselves and it was becoming way too time consuming)
Technology
- A definite need for one technology platform that all of the employees can access all over the US and the expertise to run it efficiently for all of their locations.
- A technology platform that allowed them access to all of their own data, so they could run their own reports 24/7.
Staffing
- They do not want to hire any additional staff.
Solution
The CEO provided all of the information from the PEO they were currently utilizing and Corban conducted an in-depth analysis as to what their exact costs were (Workers Comp, Benefits, Cobra, Payroll, HR, Benefits Administration, Technology, SUTA, FUTA, FICA).
Corban OneSource brought in an HR, Payroll and Benefits Administration technology (web based for all locations) and supported the technology with the right people that already knew how to maximize the technology.
Our Employee Care Center solution was implemented for all their employees in the 18 states to get their questions answered quickly.
An HR Manager was assigned to start benchmarking the PEO’s compliance as it relates to policies and procedures, employee manuals and all areas relating to HR.
Corban OneSource took over the payroll administration, so they did not have to hire any additional resources.
Results
The Company is now able to scale both up and down during peak times without incurring fixed costs.
They now know exactly what their costs are for each aspect of their business relating to HR (Workers Comp, Benefits, SUTA, FUTA, etc.), which allows them to budget and control their costs more accurately.
Their health benefits are now customized for their company and not a PEO that has to take into consideration hundreds of other companies. They are now able to take advantage of government programs like Workers’ Tax Credits for protected classes of workers that should add a minimum of $25,000 to their bottom line.
They have regained access to their own corporate data to run the necessary reports when they choose and are using Corban’s advanced technology platform to track a significant amount of different aspects of their business they couldn’t before, given the PEO technology was designed for companies that have an average of 20 employees.
The company has contained their costs and is focusing on running their business.
Overall Hard Cost Savings in Year One:
$252,500.00 (does not include any soft costs or the potential Tax Credit savings of $25,000)
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