Case Studies

“Driving” Costs Down

Company: Logistics Company
 Location: North Carolina (Operating in 10 states)
Operations: Transports garden products to new residential building locations
Employees: 118 employees

This company experienced rapid, unprecedented growth within a single year, with frequent employee fluctuations due to the scope of their business. Their top priorities were that they needed to have the tools in place to scale, they wanted Time & Attendance with GPS tracking to make sure that the drivers were not being paid while doing nothing on location, competitive benefit options within budget, and a workers’ comp policy that covered all current states of operation and future states while not breaking the bank.

Without a PEO:

  • Workers’ Comp costs $650,000 with audits included
  • Compliance risks began to appear due to multi-state growth
  • Competitive benefits were non-existent; Best employee-only plan offered was a $8,000 deductible for $689.19
  • Human Resources was handled by CFO and Payroll Specialist
  • No Time & Attendance in place due to cost
  • Quick growth but not enough support

With a PEO:

  • Workers’ Comp premium decreased by 40% to $390,000 with no audits
  • Shared Compliance risk making it a focus for PEO to be proactive
  • Fortune-500 benefit plans; Best employee-only plan has a $4,000 deductible offered at $358.00
  • Human Resources team included to assist with running payroll, open enrollment, compliance, recruiting, etc.; Lightened CFOs responsibilities
  • Able to acquire Time & Attendance due to cost reduction
  • Unlimited available HR personnel for scalability support

TOTAL COST SAVINGS:
$297,455