Client Background

As a provider of ASO services, are you delivering solutions that your clients really need? Do you have the systems and processes in place to deliver customer service levels that your clients deserve? These are just some of the questions facing our client, a national services company that provides its customers with ASO payroll and tax services, benefits administration, workers' compensation solutions and HR services.

Our client’s insurance programs are delivered through traditional or pay-as-you-go payment plans as well as payroll, PEO, staffing, and ASO solutions.  They use the latest technology to enhance their human service. However, our client faced the following challenges:

• They purchased a client base that was not on the same system
• Their target market was more interested in transactional HR services
• Their cost to serve was too high for their target market
• They needed to focus more investment on sales and marketing  

The Approach & Business Solution

Through careful evaluation, Cognet HRO assessed that the company lacked process documentation and baseline measurement, two key areas vital to its success. Another challenge our client faced was that payroll was not their core competency. Rather, their business model was built around service and creative insurance solutions. And finally, based on the technology they were using, Cognet HRO determined that the cost and time to process was just too high for the perceived value.

Our client agreed to baseline volume and effort hours required for the job. In addition, they transferred portions of their process over to Cognet HRO including time entry/import, processing and tax preparation. Cognet also helped implement a CRM system to ensure that both parties are always on top of any customer issue, but that all phone or person-to-person contact is always handled by our client. In the end, it’s all about customer service. Cognet HRO’s goal was to make sure our client put their best face forward while we supported them from behind the scenes.

The Results & Key Learnings

In just two months, our client started enjoying significant cost savings. They were able to avoid new hires and even reduced unnecessary headcount by streamlining their processes. Cognet HRO was able to save them over 50 percent on cost of the payroll process and within year one, they increased their bottom line as a result. Then at six months, they took those predictable savings and hired an additional sales person to drive more revenue.

In addition to streamlining their processes, increasing business efficiencies and putting more dollars toward their bottom line, our clients took away the following from Cognet HRO:

• To deliver world-class customer service, the client handles customer interaction; Cognet is the silent partner that makes that possible
• Integrating internal employees takes time and is a process of trust
• Lower cost to serve is passed on to pricing of new clients to grow top line