Wee Ones, LLC

How To Achieve A PEO Cost Reduction On Your Current Plan


Wee Ones worked with a national, publicly traded PEO for 3 years and were satisfied overall with the service during that time. Still, they had questions as to exactly what the PEO was costing them per employee. As the years rolled on in the relationship, they realized many of the services that initially interested them in a PEO, such as recruiting and employee training, were not as valuable or effective as they thought they would be.

When PEO Spectrum began working with them, the client was already getting a quote from a local, much smaller PEO. We helped the client realize the PEO they were looking at lacked several accreditations that were bestowed on their current PEO. These accreditations were in regard to the PEO’s financial stability; a worthy consideration. The smaller PEO also offered a benefit solution that had a history of pricing volatility, which meant the rates they were presenting could sky-rocket the following year. Likely, what seemed a “good deal” today may prove to be a big mistake in the future.


PEO Spectrum quickly identified 3 national PEO competitors that were more aligned with their incumbent PEO from a standpoint of services, accreditation, and long-term pricing stability. The goals were to capitalize on the strengths of their current PEO and find matches that could correct the identified weaknesses in what they already had.

PEO Spectrum created a financial analysis that detailed the 4 core pricing factors of each PEO: administrative fees, benefit costs, workers compensation insurance, and payroll taxes. The average savings across all PEOs was about $1500 per employee, per year. This was a very significant finding.

Wee Ones decided to take a meeting with the leading competitor to better understand their service level, and to take a deeper dive into the employee benefits programs.

During that meeting they realized that although they could enjoy a significant cost savings opportunity by switching PEOs, it would also necessitate a transition from United Healthcare to Aetna, which was not an ideal provider for several key employees.


PEO Spectrum provided its PEO cost reduction services to Wee Ones and helped them to renegotiate a significantly lower rate with their incumbent PEO. Although they didn’t save as much as they would have by switching PEOs, they were able to keep employees happy by not switching their health insurance provider, yet were able to save money for the company overall. This was a ‘win’ for all involved.


Website: www.weeones.com

Type of Firm: Children’s Hair Accessories

Location: Earth City, MO

Employee size: 20-30

Years in business: 37 years


Reduce Current Costs