PEO vs Broker: How Perigon Wealth Management Saved $48,557 Annually

Executive Summary

When Perigon Wealth Management found themselves paying excessive fees for a one-size-fits-all PEO solution, they partnered with EVCO to explore alternatives. The result? A 26% reduction in annual benefit costs ($48,557 savings), significantly improved healthcare coverage, and a streamlined digital benefits experience—all with more flexibility and better service.

This case study demonstrates how mid-sized businesses that have outgrown the PEO model can achieve substantial savings while gaining access to premium benefits and advanced HR technology.

Understanding the PEO Challenge

A Professional Employer Organization (PEO) can be an attractive solution for startups and small businesses seeking to outsource their HR functions. However, as organizations grow, the limitations become more apparent:

• High Monthly Fees: PEOs typically charge 2-3% of total payroll as administrative fees
• One-Size-Fits-All Approach: Limited ability to customize benefits packages
• Inflexible Technology: Difficulty integrating with preferred payroll or HR systems
• Cost Inefficiency: Organizations often outgrow the PEO model as they expand

Many businesses reach a turning point where the convenience of a PEO no longer justifies the premium costs and limitations.

Client Profile: Perigon Wealth Management

Perigon Wealth Management initially chose a PEO because they believed it would be easier and less expensive to have a single provider handling benefits, payroll, and HR services. Like many growing businesses, they discovered that the PEO model became increasingly cost-prohibitive as they expanded.

The Challenge: Rising Costs, Limited Options

"We were with a PEO because we thought it was easier and less expensive to have a PEO run our benefits, payroll, and HR Services."

— Arthur Ambarik, CEO of Perigon Wealth Management

However, as the company grew to 16 employees, they faced several challenges:

• Escalating monthly PEO fees that reached unsustainable levels
• Limited benefit options that didn't meet all employee needs
• Inflexible technology that created inefficiencies
• Paper-based processes requiring manual intervention

The EVCO Solution: Custom Fit Benefits and Technology

When EVCO approached Perigon Wealth Management, we conducted a comprehensive analysis of their current benefit structure, costs, and administrative processes. Our approach differed significantly from the traditional PEO model.

1. Custom Benefit Package Design

Rather than offering a standard package, EVCO designed a tailored solution specifically for Perigon Wealth Management:

• Premium Medical Coverage: Upgraded from Anthem/Kaiser Gold to Platinum tier coverage
• Enhanced Dental, Vision, and Life: Increased maximum coverage from $1,500 to $2,000
• Improved Network Access: Broader provider networks for all employees

2. Technology Integration

EVCO partnered with Paylocity to deliver an integrated HR and benefits experience:

• Paperless Enrollment: Complete digital enrollment process
• Seamless Data Flow: Integration between benefits and payroll systems
• Employee Self-Service: User-friendly portal for benefits management

3. Cost Optimization

Our benefits experts leveraged market knowledge and carrier relationships to negotiate:

• Lower Premium Rates: Better coverage at reduced rates
• Reduced Administrative Fees: 80% decrease in service fees ($21,120 to $4,107)
• Elimination of PEO Markup: Direct access to insurance carriers without middleman fees

Results: Substantial Savings with Enhanced Benefits