Anyone who has transitioned from a Professional Employer Organization (PEO) to a company-managed HR benefits platform will tell you that it can be a difficult undertaking, impacting business operations, employee experience, and financial costs. Despite the potential challenges, in the Spring of 2022, CAPTEK Softgel, the leading softgel contract manufacturer in the vitamins, minerals, and supplements industry, did just that.

Lupe Rodriguez, VP of Human Resources at CAPTEK and her team, were looking to offer nearly 700 employees improved HR services and resources, as well as reduce the company’s overall spending, by the Fall of 2022. They had two primary goals:

1. Create measurable impact on organizational values: revenue, bench strength and employee satisfaction.
2. Focus on directly leading, developing, and aligning with CAPTEK’s human capital strategy.

Engaging a business partner

On May 1, the project launched, and Lupe partnered with Sequoia to support the onboarding of new benefit plans, a 401k record keeper, and workers compensation insurance.

“Strategically, our goal was to minimize any disruption to our employee’s medical providers, so we worked with Sequoia to offer comparable plans and coverage with access to their same doctors,” explained Lupe. “Sequoia supported our renewal negotiations by evaluating different benefit plan designs, employee and employer cost contribution models, and service levels of various insurance companies.”

Sequoia has the perfect combination of technology and people guidance. From compliance to benefits to financial care, Sequoia has exactly what I’m looking for in a partner.

A successful transition

Working together with Sequoia, CAPTEK was able to hit the goal of transitioning off the PEO in under five months. The results were better than expected.

Not only did the transition remove manual paper processes and streamline systems across HRIS, workers comp, benefits implementation, and more, but the company also saw significant cost-savings in the first year.

After careful negotiation of 15-month contracts with health insurance carriers, CAPTEK was able to provide employees with competitive contribution structures while also saving over $537,000 across their new medical, dental, vision, life and disability program when compared to their PEO renewal.

To ensure employees got the most out of CAPTEK’s new offerings, Sequoia hosted multiple open enrollment events for CAPTEK’s 24-hour facilities in both English and Spanish to answer questions and help employees choose which option was the best for them. By the end, the percentage of employees participating in medical insurance increased by 20%.

“Employees are thrilled at the fact that they now receive enhanced resources and direct and immediate assistance with all of their HR concerns,” said Lupe.

“The experience of moving away from a PEO was a first for me, and I could not have done it without our Sequoia team. The level of knowledge and support that we have received from Sequoia is unparalleled.”

Moving forward

Now having the transition behind them, Lupe and her team are looking to maximize the resources they have through Sequoia.

“We are in the process of rolling out Sequoia’s platform to employees so our people have one dedicated place where they can see their information, access ID cards, and better understand the offerings available to them,” explained Lupe. “I am really excited to share this amazing tool with our employees.”

Working through large projects while also managing day-to-day responsibilities can be daunting for any HR team. However, Lupe says they are now well equipped to tackle new obstacles head on.

“Sequoia has the perfect combination of technology and people guidance. From compliance to benefits to financial care, Sequoia has exactly what I’m looking for in a partner. They’re an extension of our lean team that I never take for granted.”