The drastic drop in oil prices hit many Houston companies pretty hard. An oilfield supply company had cut 125 employees to just under 100 people. They had cut administrative staff to the bone. They were searching for savings but still had to manage and operate the business with a skeleton crew. Their remaining employees were understandably a bit frightened and needed reassurance. They were also vital to operating the newly scaled back business.
Within a few weeks we were able to complete an HR outsourcing transaction for them. Once the new PEO was in place and running smoothly the employees were relieved and back at work. They were happy with the better benefits from the PEO and the owner saved more than a quarter of a million dollars.
Competition Leads to Savings
A manufacturing company recently contacted us to help them with get lower health premiums without cutting benefits. Their agent had emailed them about their whopping 27% increase. That was on top of 20% the year before. They had a few very sick employees hit in the same 2 years. Of course the agent advised increasing deductibles and moving to a more restricted network. They were considering asking employees to pay more of the premium. The owner believed that it might spark a mass move of his best trained employees straight to the competition.
We helped them to select several PEO bidders that fit their business. Three bidders resulted in two qualified offers with a slightly richer health plan and reduced premiums. The PEO offered flexible plan choices that actually worked better for employees. The employer was glad to see upgrade options for his managers.
Our competitive process also uncovered a dramatic savings in the company’s workers compensation premiums. This not only lowered the cost of coverage but the client now gets regular safety inspections by a PEO safety manager.
They we not really sure about PEO when they contacted us but needless to say, they are big fans now. They have a turn key HR department on demand, better benefits and saving $125K per year.
Better Coverage and Prices with PEO
An investment advisory firm with 25 employees was getting killed by premiums. A couple of older employees had some major health episodes and their health plan was feeling the pressure. The premiums for the group had skyrocketed more than 40% in two years. They contacted us to see if PEO might offer some relief.
We were able to make a few adjustments before going to underwriting with several PEOs. We had several great offers from vendors willing to aggressively price better coverage. Both the employer and the employees ended up saving on premiums and were happy with the better Aetna coverage.