Insperity Case Study: When it Makes Cents to Switch PEOs

After working with hundreds of Administaff/Insperity clients, we decided to write a short case study on one of our recent clients in Minnesota.   

Type of Firm: Technology |Application Development

Location: Not Disclosed

Size: 35 Employees

Years in Business: 4

The Insperity Scenario:

A technology company that experienced rapid growth in its first year of business decided to work with Insperity, one of the largest national PEOs in the US. During the first 3 years of the relationship, Insperity was able to provide the back-end support necessary for the group to expand their employee population by 300%.

In the 4th year of the relationship, HR realized it wasn't using many of the services that Insperity provided. Furthermore, they were going through an audit, and the auditors had a hard time understanding exactly what Insperity was costing the company.

 PEO Spectrum's Solution:

PEO Spectrum began the process with an in-depth discussion regarding the HR services that the company absolutely needed, as well as those that were not necessary. The company's growth goals, geography, employee benefit requirements, and technology requirements were also discussed in this phase.

The next step was a financial audit of the company's bills and invoices from Insperity to identify exactly what the service costs were, and how those dollars were allocated (administrative fees, tax rates, benefits, etc.).

Based on the requirements set by the client, PEO Spectrum produced a Vendor Match Report with 3 recommended PEOs that met the client's requirements. After reviewing with the client, it was decided that PEO Spectrum would obtain quotes from 2 of the leading PEOs. In 3 days the competitive PEO quotes were received, and PEO Spectrum's PEO Comparison was complete for client review.

The Results For The Client: 

PEO 1 Savings Opportunity: $85,000 annually PEO 2 Savings Opportunity: $69,000 annually The company decided to go with PEO 2 based on the PEO's historical background and high level of industry accreditations (all of which are reviewed on the Vendor Match Report). PEO 2 offered nearly all of the services that Insperity once offered, however they allowed the client to pick and choose which specific services they wanted to use, and pay for them on an "as needed" basis. Check out more about Insperity Competitors.