Cylinder Health, a digital health company specializing in digestive and gut health, faced significant challenges in transitioning from a Professional Employer Organization (PEO) to a more tailored benefits solution. As a B2B2C company, Cylinder Health’s mission is to make digestive health accessible to everyone, recognizing its integral connection to overall wellbeing. Lia Seth, Director of People at Cylinder Health, partnered with Sequoia to navigate this complex transition, ensuring compliance, enhancing employee benefits, and maintaining a strong company culture.

Challenges

Cylinder Health’s transition from a PEO was driven by the need to establish legally distinct entities due to corporate practice of medicine laws. This required moving member-facing employees to a sister entity, which was not feasible under a single PEO agreement. Additionally, the company aimed to improve its benefits offerings to meet the diverse needs of its employees, including those with children, elderly parents, and chronic conditions.

Sequoia’s Solution

Sequoia played a pivotal role in guiding Cylinder Health through the transition off the PEO. Sequoia provided step-by-step support, ensuring compliance and addressing the complexities of setting up separate entities. Lia described the Sequoia team as proactive, communicating with the PEO and providing detailed guidance on priorities and timelines.

“I really don’t think we would have gotten through that transition without Sequoia’s support,” Lia added. “They’ve been absolutely phenomenal at making a process that, frankly, felt overwhelming. They really gave us the step-by-step guidance.”

In terms of benefits, Sequoia introduced Cylinder Health to the right partners, helping craft benefit plans that catered to the diverse needs of their workforce. They advised on offerings beyond medical coverage, focusing on what mattered most to employees. This included maintaining continuity with popular mental health services like Spring Health and integrating Rightway for concierge support, which alleviated administrative burdens on the HR team.

I call Sequoia my secret weapon,” Lia said. “Sequoia guides us on what to do, and I know that I can trust them.

Employee Experience

Though the first open enrollment post-transition initially felt daunting, Lia said the process was smooth thanks to Sequoia’s assistance in employee communications. Sequoia’s interactive presentations engaged employees, ensuring they understood the importance of taking action during enrollment. The employee advocate team also provided direct support, freeing up Cylinder Health’s HR team to focus on other projects.

Lia explained, “We’re a small team with limited resources. Being able to tell employees, ‘Hey, if you have questions on these plans, you can email Sequoia directly for support,’ took so much of the work off our plate.”

Staying Ahead with Sequoia

In order to stay ahead of benefits trends, Cylinder Health relies on Sequoia’s benchmarking surveys and industry insights. Using data and experience, Lia and her success team at Sequoia partner together to create tailored offerings that meet the needs of the company at its current stage and size. This partnership ensures Cylinder Health remains competitive in attracting and retaining top talent.

“I call Sequoia my secret weapon,” Lia said. “Sequoia guides us on what to do, and I know that I can trust them.”

The Impact

Through tech-enabled advisory services, unified solutions, and a powerful platform, Sequoia helped Cylinder Health reduce costs, save time, minimize risk, and enhance its ability to attract top talent. With this partnership, Cylinder Health is better positioned to achieve their goals while fostering a culture of transparency and employee wellbeing.