From Struggling to Streamlined.
How a Wine Investment Company Saved Time and $20K+ by Moving from a PEO to Fractional HR Support
By partnering with us, this company gained tailored HR solutions that drove efficiency, saved significant costs, and paved the way for long-term growth.
Our hands-on approach and HR expertise help guide our clients toward HR proficiency, driving growth and saving them thousands in the process.
A Quick Look
$20,000+
Saved $20,000+ by moving to fractional Support from PEO
60%
Decreased Admin Time by, freeing up time for business strategy
40 hours
Sved 40 hours a month, freeing up time to focus on culture
A little background info
The wine investment company initially chose to partner with a Professional Employer Organization (PEO) because their HR team was stretched thin.
With only one HR manager responsible for managing equipment, payroll, and benefits, they needed a simple, one-stop-shop solution to handle their HR needs efficiently. The PEO promised comprehensive HR support, offering access to low-cost, first-class benefits and a single platform to manage payroll, benefits, and equipment. The hope was that this would streamline their processes and alleviate the burden on their HR manager.
Customer Service Failures
Support from the PEO became unreliable and inconsistent. Emails went unanswered or were forwarded to multiple people before a resolution could be reached.
Sky Rocking Costs
The cost of the PEO service, particularly for benefits, escalated significantly. Hidden fees that were not disclosed in the sales process began to add up.
Admin Overload!
Despite the PEO’s promise of simplicity, the administrative burden on the company's leadership continued to grow. Even simple tasks took a lot of red tape to navigate.
Not Actually Full Service
The PEO refused to give advice on critical HR issues such as harassment, employee relations and employee engagement. The list of things the PEO would actually advise on or support was fairly small. The company was forced to seek additional HR support they originally thought the PEO would cover.
The Reality of PEO’s
During the first year, the company was happy with the outcomes provided by the PEO.
After that initial year, however, the promises began to fade and the model started to fail. The HR manager went on maternity leave and ultimately decided not to return, leaving a significant gap in their HR capabilities. Leadership realized that the PEO did not offer the full suite of HR services that had been promised.
Beginning in year two, the costs to administer benefits—and other hidden fees—began to skyrocket, making it clear that the PEO model was no longer sustainable for the organization.
What we did
At Acacia, we took a comprehensive approach to transition the wine investment company off the PEO by thoroughly evaluating their HR processes.
We identified key gaps and inefficiencies that were hindering their growth and sourced in-house, cost-effective solutions to replace what the PEO had been handling.
We migrated them from the PEO into their own systems, working with the company’s existing infrastructure and providing customized solutions that fit their needs. This included optimizing payroll, benefits, and workers' comp processes to be more efficient and cost-effective.
The best part? We wrapped up the entire transition in just 30 days—ensuring minimal disruption to their day-to-day operations and delivering a seamless shift to a more personalized, in-house solution.
Payroll
We transitioned the company onto a more employee-centric platform that not only streamlined payroll processes but also delivered a comprehensive HR solution.
This platform allowed both employees and the HR team to manage payroll, onboarding, performance management, employee surveys, and more.
The shift reduced complexity, enhanced the user experience, and made HR administration more efficient.
Benefits
We connected the company with a highly qualified benefits broker who helped them save significantly on health, workers’ comp, and even business-related insurance and benefits.
By re-evaluating their coverage options and negotiating better rates, we saved the company $20,000 annually—without sacrificing the quality of their benefits offerings.
This strategic move ensured their team received the best possible coverage at a fraction of the cost.
Tech Upgrade
Rather than overhauling their entire HR tech stack, we optimized the tools they were already familiar with and comfortable using.
By evaluating their current systems and eliminating unnecessary add-ons, we significantly reduced costs while ensuring the remaining technology was perfectly aligned with their business needs.
This upgrade streamlined their operations and improved overall efficiency, supporting the company’s growth without added complexity.
Fractional Support
Through this transition, we saved the company enough money to cover a full year of our services—and still have savings to spare.
This allowed for a more comprehensive HR solution that reduced the company’s administrative burden and ensured HR processes were aligned with business goals.
The Results
Partnering with Acacia completely transformed the Wine Investment Company’s HR operations. The company saw a 60% reduction in administrative workload, giving the HR team more time to focus on employee engagement and retention strategies. This shift enabled them to:
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Devote more time to developing initiatives that enhanced employee satisfaction and fostered long-term retention.
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Reinvest saved hours into driving core business functions and fueling strategic growth, allowing the company to scale effectively without sacrificing HR quality.
Saved Thousands
By eliminating inefficiencies in their HR processes and transitioning to a more cost-effective benefits package, we helped the Wine Investment Company save over $20,000 annually on benefits alone and more in the overall HR investment.
Decreased Admin time
Through streamlining outdated HR practices, we reduced administrative time by 60%. This freed up the HR team to focus on higher-value activities, such as refining business strategy and enhancing employee engagement, ultimately improving the company’s ability to scale.
Saved 40 hours a Month
By moving to our fractional HR support model, the company saved the equivalent of 40 hours per month. This shift enabled them to access comprehensive HR expertise for less than the cost of a full-time hire, all while maintaining operational efficiency.
Employee Enagagment
With more time dedicated to the employee experience, the company saw an 82% increase in employee engagement. Pay practices became more transparent. Important information employees needed was more easily accessible. HR was able to focus more on employee needs rather than administrative burdens. All of this led to increased overall satisfaction.
Take a Look
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The Solution
When the HR manager at the wine investment company left, they were faced with the urgent need for a more tailored HR solution.
Up until then, they had been paying a premium for a PEO that promised cost savings and all-in-one HR services—but fell short in key areas.
It became clear that the company needed a more personalized, solution-driven approach. They were overcharged for the PEO’s services—especially when it came to benefits—and were not receiving the level of white-glove service they expected.
But the tipping point came when their benefit renewals arrived with a shocking 100% cost increase. That was the wake-up call: time to leave the PEO behind.
What most don’t realize is that PEOs often don’t provide critical services like workplace discrimination resolution or cultural strategy. These gaps were causing the company to miss out on proactive HR support that could drive growth and maintain employee satisfaction.
By switching to fractional HR support, they gained a fully customized approach that fit both their needs and budget—while addressing the deeper HR gaps the PEO couldn’t fulfill.
While we can’t guarantee these types of savings every time, we’ve helped many clients move from a PEO to their own in-house solutions—and we almost always see some level of cost savings.
Savings usually come from reductions in technology costs, benefits costs, and administrative burden. We recommend that any employer with 15–20 or more employees still using a PEO take the time to evaluate in-house options to ensure the PEO is still the best fit for your needs.
We can help with both the vetting process and the transition, should you ultimately decide to go that route.