How an 80-Employee Company Saved $486k by Rethinking Their PEO Renewal

A growing 80-employee company headquartered in Charleston was experiencing diminishing returns from its long-term PEO provider of four years. Faced with rising costs, declining service quality, and outdated technology, the CFO sought a better solution. PairPEO conducted a comprehensive RFP with 11 PEOs, which led to the selection of a new partner with a modern HRIS platform. The transition resulted in a remarkable annual savings of $486,000 in benefits and administrative fees, while simultaneously reducing employee healthcare costs.

• Company: A growing firm with a distributed workforce.
• Industry: Professional Services
• Size: 80 employees
• Footprint: Headquarters in Charleston, S.C., with remote employees in 4 states.

Quick Facts:

• Savings: $486,000 annually
• RFP Scope: 11 competing PEOs
• Initial State: Stuck with an incumbent PEO for 4 years, facing price creep and poor service.

After four years with the same PEO, the client’s CFO felt the relationship was no longer providing value. The initial benefits had been eroded by several key issues:

• Price Creep: Annual renewals and administrative fees had steadily increased to a point where the investment felt unjustified.
• Degraded Service: The level of hands-on HR support the company once received had noticeably declined, leaving their team feeling underserved.
• Antiquated Technology: The PEO’s HRIS platform had not kept pace with modern technology, feeling clunky and outdated for their growing, tech-savvy team.

The CFO was skeptical about running a full RFP process but reached out to PairPEO to test the waters. His goal was simple: save the company money and, if possible, reduce the cost of health insurance for his employees.

From the first call, the PairPEO model resonated. After explaining our process of running a competitive market analysis on their behalf, the CFO’s response was, “this is magical.” We immediately initiated a full RFP, engaging 11 different PEOs to compete for the client’s business.

1. Comprehensive Market Analysis: We leveraged our market expertise to create a competitive bidding environment. While every PEO claimed their underwriters were being “aggressive,” the data clearly identified two standout options.
2. Focus on Top Contenders: Both leading PEOs initially proposed savings greater than $400,000. This allowed the client to focus their time and energy only on the most viable, high-value partners.
3. In-Depth Vetting: The client met with both PEOs and conducted thorough demos of their respective HRIS platforms to ensure the technology met their needs for a modern, user-friendly experience.
4. Final Negotiation: With two highly competitive offers on the table, PairPEO helped negotiate a final, best-and-final offer, securing an additional $86,000 in savings for the client.

This structured, data-driven process gave the client maximum leverage and complete transparency, ensuring they made a decision based on both quality and price.

By switching partners through the PairPEO process, the company completely reversed the trend of diminishing returns and achieved outstanding results.

• $486,000 in Annual Savings: The new PEO partnership, beginning in 2026, delivered nearly half a million dollars back to the company’s bottom line.
• Upgraded Technology: The client transitioned to a modern, high-tech HRIS platform that provided a better user experience for both administrators and employees.
• Improved Employee Benefits: A portion of the savings was passed on to employees through lower health insurance costs, boosting morale and aiding retention.

“We felt stuck with our old PEO, paying more for less each year. PairPEO’s process was a revelation. They brought multiple, high-impact offers to the table and helped us secure savings we never thought possible. It truly felt magical.”
— CFO, Charleston-based Firm

It is easy for businesses to remain with their incumbent PEO out of convenience, even when service degrades and costs rise. This case study demonstrates the immense value of testing the market. A competitive RFP process not only reveals significant savings opportunities but also ensures your company has access to the best technology and service available. Loyalty is valuable, but it should never come at the cost of your bottom line or employee satisfaction.