Navigating a PEO Extraction Amidst Hypergrowth

Transitioning ARC Health from a limiting PEO model to a scalable and cost-effective HR tech stack amid rapid growth.
months to run process
annual software savings
reduction in outsourced support
project manager overseeing all

The Challenge

ARC Health was growing, and it was growing fast. In just two years, the company scaled from 50 employees to 1,000, largely through acquisitions. During this hypergrowth phase, the company was in a Professional Employer Organization (PEO) relationship, but the model had started to show its limitations. The costs were escalating, and it became evident that they needed a more suitable HRIS system, a new benefits broker to design insurance plans, and a managed services company for outsourced HR support.

OutSail's Solution

OutSail tackled the complex challenge by conducting a swift and thorough HRIS selection process, completed in just two months. After shortlisting the right vendors based on ARC Health's unique needs, OutSail provided a detailed Request for Proposal (RFP) to facilitate clear comparisons among the options. Further, OutSail helped design clear agendas for each meeting to maximize stakeholders' time.

Beyond software, OutSail also helped ARC Health transition from their PEO by introducing a benefits broker and an HRIS implementation firm. These partners filled the gaps left behind, ensuring ARC Health had the right support without unnecessary expenses.

Summing Up

ARC Health managed to transition from a limiting PEO model to a scalable and cost-effective HR tech solution that supports their growth. They maintained their outsourced support and designed new insurance plans without disrupting their operations or draining their resources, all thanks to OutSail's strategic guidance.

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