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COMPANY INFORMATION
Industry: Financial Services Company
Size: 30 Employees
Insurance: Open market medical and worker’s compensation
HCM Vendor: ADP RUN for payroll
SITUATION:
Client was facing 28% renewal on medical insurance, marking the second straight year with a significant increase. Additionally, they were expecting to add another 15-20 employees over the next 8 -12 months with no signs of slowing down after that.
CHALLENGE:
Medical insurance increases were becoming unsustainable and the client didn’t want to compromise on a weaker plan just to lower premiums. Also, the rapid growth of the company was stretching an already thin finance and HR team. Their current payroll vendor was unable to provide any additional support and important compliance check points and strategic initiatives were being missed due to the hectic growth.
SOLUTION:
At first glance, a PEO seemed to be the best fit because of their ability to access stronger employee benefits under the PEO’s umbrella. After a thorough client analysis, it was determined that the need for a more scalable infrastructure, not insurance, would be the primary driving factor in identifying which strategy and vendor made the most sense. An extensive research effort was underway to test this theory.
RESULT:
After interviewing 12 potential partner vendors, it was narrowed to three final options: TriNet, Oasis, or an open market ASO model. An ASO provides the infrastructure support of a PEO without a co-employment arrangement.
After the client viewed each vendor’s technology and met their support teams, a decision was made to move forward with TriNet, a PEO. TriNet was able to offer the best support model to help the client’s ambitious growth goals and the best medical insurance package.
