How a 1,500-Employee Firm Saved $3M and Consolidated 10 HR Vendors into One

A national company with 1,500 employees across 30 states was struggling with a fragmented HR technology stack and multiple vendors, making reporting impossible and acquisitions difficult. The new Chief Human Resources Officer (CHRO) was tasked with modernizing their HR operations. By partnering with PairPEO, the company transitioned to a single Professional Employer Organization (PEO) solution. This strategic move consolidated 10 vendors into one, automated key HR functions, and delivered a total cost savings of $3 million, proving that PEOs are a powerful solution for large, complex organizations.

• Company: A national private equity–backed eye care operator and practice consolidator with frequent M&A activity
• Industry: Diversified Operations
• Size: 1,500 employees
• Footprint: Operating in 30 states

Quick Facts:

• Savings: $3M in total cost reduction
• Vendor Consolidation: From 10 HR vendors down to 1
• Initial State: Self-insured medical policy, 3 disconnected HR platforms

PairPEO was introduced to the new CHRO, who had been brought in as a change agent to overhaul the company’s HR infrastructure. She inherited a deeply fragmented system with significant challenges:

• Fragmented Technology: The company used three different HR tech platforms for various functions, none of which were integrated. This lack of connection made cross-platform reporting and gaining meaningful HR insights an impossibility.
• Complex M&A Activity: The business model involved consistently buying and selling business units. Without a unified system, managing employee data and transitions during these transactions was a manual, error-prone nightmare.
• Vendor Overload: Managing 10 different HR vendors for payroll, benefits, compliance, and other services created significant administrative burden and inefficiencies.

The CHRO needed a solution that could unify technology, streamline operations, and provide clear, actionable data to support strategic business decisions.

PairPEO introduced the PEO model as a path to achieve the client’s goals. The process was not just about finding a provider but about building a strategic framework for a successful transition.

1. Vendor Consolidation: The PEO industry offered a clear avenue to consolidate all 10 vendors into a single, strategic relationship. This move immediately eliminated administrative complexity and streamlined communication.
2. Automation of Tactical HR: By moving to a unified PEO platform, the company could automate many tactical HR tasks. This freed up the internal HR team from functions that were difficult to staff for, allowing them to focus on more strategic initiatives.
3. Economic Validation: PairPEO’s process allowed the client to validate the economic outcomes before committing internal resources. We demonstrated that the transition would result in significant savings, confirming a target of approximately 30% reduction on medical premiums and total savings over $1M.

This thoughtful approach ensured that the project moved forward only after the financial benefits were clear and compelling to the bottom line.

The transition to a PEO delivered transformative results, fundamentally changing how the company managed its human resources.

• $3 Million in Total Cost Savings: The consolidation and move from a self-insured plan to the PEO’s master plan resulted in a staggering $3M in savings.
• Radical Simplification: The company reduced its HR vendor count from 10 to just one, creating a single point of contact and accountability.
• Unified and Actionable Data: With one integrated platform, the HR team could finally generate accurate reports, gain valuable insights, and seamlessly manage employee data during M&A activities.

“We were drowning in complexity with disconnected systems and too many vendors. PairPEO showed us a clear path forward. Their process not only validated the massive savings but gave us the confidence to make a change that completely modernized our HR function.”
— CHRO, National Firm

This case study powerfully refutes the common myth that PEOs are only for small businesses—a narrative often pushed by incumbent brokers. For large organizations, the path to a PEO requires a more thoughtful and strategic approach, but the potential rewards are immense. When an organization’s expenses are significant, the savings scale accordingly, often exceeding $1 million.

PairPEO’s advisory process enables large companies to explore this powerful solution without disrupting internal operations, validating the financial impact first to ensure a transition is not just a change, but a strategic victory.