Scaling a High-Growth PEO with Intelligent Benefits Reconciliation Automation
Resourcing Edge is a Professional Employer Organization (PEO) providing human capital management solutions for over 20 years. Serving thousands of small businesses across the United States, Resourcing Edge provides benefits to over 100,000 employees enabling their employers a comparable benefits offering to some of the largest enterprises in the world by pooling these benefits under one PEO platform.
As one of the nation’s fastest growing PEOs, Resourcing Edge was scaling rapidly through both organic growth and acquisitions. Behind that growth sat a massive operational challenge, millions of dollars in annual benefits reconciliation exposure caused by fragmented systems, manual workflows, and increasingly complex billing processes.
Their growth strategy was paying off, yet this issue was eating into their profitability. And they were ramping up their acquisition strategy to acquire other PEOs, which was starting to make the issue worse.
Billing Reconciliation Data Challenges
Resourcing Edge processes millions of dollars in benefits annually across its client base. Those benefits are administered through hundreds of different plan types, with billing and invoicing with many providers in every format imaginable – EDI transactions, PDF files, Excel spreadsheets, and many more.
That alone would be complicated enough, yet the real problem comes from employee movement. With employees on the platform changing jobs throughout the year, most of these happen at different times during the month (not the 1st or 30th, which would make it much simpler). This created a significant billing reconciliation data challenge representing hundreds of issues monthly to be manually reconciled.
The result was delayed error detection leading to non-recoverable losses in the business, along with a very task-saturated, reactive workforce reactively trying to recover these losses.
Slow Integration Complexities
In addition, the firm was growing by acquiring multiple PEOs with a need to integrate platforms quickly and seamlessly. This added complexity was slowing down the growth plan due to the need to integrate multiple systems including Human Resource Information Systems (HRIS), Enterprise Resource Planning (ERP) systems, Customer Relationship Management (CRM) systems and others.
Their people were working very hard to integrate platforms with limited tooling to automate the process and do so with consistency every time. In fact, it was not happening consistently, which led to further issues.
Resourcing Edge’s leadership knew they couldn’t hire their way out of these issues. They needed a platform to handle the complexity at scale, catch discrepancies faster, and reduce the write-offs they were experiencing.
Digital Data Hub™ for Scalable Growth
When the leadership team connected with Cooperative Computing, they knew they needed a scalable platform for growth. Their internal Information Technology (IT) team was doing the best they could, yet the software solutions they had tried could not resolve the issues.
Cooperative Computing’s Digital Data Hub was brought in to ingest the carrier invoices (every format), normalize the data, and apply intelligent reconciliation logic to identify discrepancies as they occur rather than after the money is already out the door. This enabled them to automate the process and resolve the issues in advance versus having human talent spend thousands of hours monthly in reactive mode manually doing so.
In addition, Digital Data Hub™ feeds a Unified Decision Workspace that provides finance and operations leaders with real-time visibility into reconciliation status across carriers, clients, and employees. Teams can immediately identify unresolved discrepancies, prioritize exposure, and accelerate recovery actions without relying on spreadsheets or disconnected systems.
This matters even more given the acquisition trajectory. Every new PEO that Resourcing Edge absorbs brings in new carrier relationships and new billing formats. The Digital Data Hub is designed to scale with that growth, so the reconciliation problem doesn’t double just because the business does.
What Resourcing Edge Gained
By leveraging Cooperative Computing’s Digital Data Hub, Resourcing Edge gained the following.
- Reduced Write-Offs: They reduced millions of dollars in write-offs and significant labor-intensive processing being invested in exception handling.
- Faster Discrepancy Detection: Rather than discovering overpayments weeks or months after they happen, the Digital Data Hub is designed to flag issues in real-time, giving the team a more proactive approach and a higher probability of recovery.
- Scalability for Acquisitions: With multiple acquisitions expected every year moving forward, the Digital Data Hub™ sets them up for success with speed and accuracy in their integration strategy. And it helps them do so without throwing people at more problems.
- Hyper-Automation: The Digital Data Hub automates the intake, normalization, and matching work which consumed thousands of hours of reactive people time monthly to provide them connected systems communicating in real-time.
In summary, the Digital Data Hub allowed Resourcing Edge to continue growing revenue while operating more efficiently with data-driven decisions. In doing so, they can scale faster with their digital enablement strategy.
If your organization is looking to grow into the automated economy, connect with one of our Digital Enablement consultants to learn more about how the Digital Data Hub may be your platform for the future.
