In October 2008, an equity research and trading firm engaged ACS to facilitate its transition out of a professional employer organization (PEO), which had bundled payroll, benefits, and compliance services. The firm sought greater control, transparency, and cost efficiency in managing its employee benefits. With ACS’s strategic guidance, the client successfully exited the PEO on January 1, 2009, and implemented a more cost-effective and customized benefits program for its 100+ employees across the U.S.

Delivering Cost Savings & Increased Control

By re-establishing an independent benefits structure, the client realized significant financial advantages, including:

• 20% savings on medical and dental benefits through direct carrier negotiations.
• 15% reduction in workers’ compensation costs via targeted risk management strategies.
• Elimination of hidden administrative fees, restoring cost transparency and financial oversight.
  

The shift allowed the firm to negotiate each aspect of its benefits package separately, securing more favorable terms while enhancing plan flexibility. Employees gained access to a comprehensive selection of top-tier benefits, including medical, dental, vision, short- and long-term disability, and life insurance.

Enhancing Employee Experience & Retirement Growth

Recognizing the importance of a smooth transition, ACS provided robust employee support through group seminars and one-on-one education sessions. These initiatives helped employees understand their new benefits options and maximize their coverage choices.

In addition to core benefits, ACS supported the firm in optimizing its retirement program. The company’s defined contribution 401(k) plan, initially valued at $2 million, grew to $5 million by December 2016, driven by investment performance and increased employee participation. Through ongoing fiduciary support, plan education, and strategic enhancements, ACS helped the firm cultivate a strong retirement savings culture among employees.

Ongoing Strategic Partnership

ACS continues to serve as a trusted advisor, ensuring the firm’s benefits and risk management strategies evolve alongside its business needs. By prioritizing cost efficiency, employee engagement, and long-term financial stability, ACS has helped the firm strengthen its competitive positioning while maintaining a competitive benefits offering.

This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience.