PEO Transition
Definition: An inflection point for a growing company that is ready to stand on it’s own, leaving behind outsourced employment, to take control of their HR functions, tailor their employee benefits, and improve their culture.
Revenues: $1M to $20M
Employees: Generally 10 to 50
Common challenges: Managing the process of changing from a bundled PEO solution to a customized, independent structure for benefits, HR and payroll.
Case Study
Company: All System Broadband, Inc.
Industry: Information Technology
Founded: 2005
Locations: HQ in Livermore, CA, with office in Raleigh, NC
Employees: 50+
Mindshare Client Since: 2010
Website: www.allsystemsbroadband.com
Business
Based in Livermore, All Systems Broadband produces connectivity products for the evolving voice, video and data industries. ASB solutions enable America’s largest networks to run faster, smarter and more profitably.
Challenge
As the company experienced strong growth, they came to understand that they needed more hands-on HR and customized benefits – something they couldn’t get from their PEO. They needed in-house HR management to lead resource planning, recruiting and hiring, performance management, culture development, and HR administration. Additionally, satisfaction levels from employees regarding their health benefits was low.
Solution
Working closely with their management team, we helped to evaluate the advantages of exiting their PEO structure, and then managed the transition from soup to nuts. We identified significant savings in administration and worker’s compensation costs, and then brought in a recruiter to find and hire a permanent HR manager. We implemented new, customized health benefits for employees in CA and NC to drive higher satisfaction levels. And we assisted in the setup of new Worker’s Comp and EPLI insurance.
Outcomes
- Hiring of a permanent HR manager
- Accelerated growth and improved company culture.
- Enhanced the value for each employee, while maintaining benefits costs.