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Professional Services Firm Saves $1.1M With MBO’s Unique Engagement Solution
75
Talent reclassified
97%
Retention rate
$1.1M
Saved in 6 months
Challenge
Talent Loss Due to Limited Flexibility
A professional services firm had worked with independent professionals for several years but struggled to retain top talent due to the engagement options they offered. Those not classified as fully self-employed could only be engaged as W-2 employees, rather than 1099 contractors.
As W-2 employees, these professionals were frustrated by limited flexibility and the fact that they missed out on tax advantages typically available to independent workers. Engaging as a 1099 contractor wasn’t a viable option, as many were unwilling or unable to invest the time or money necessary to become fully self-employed. This path also involved added requirements, including extra verifications and insurance coverage for compliance, as well as more administrative tasks during onboarding.
These challenges created friction and put strain on the firm’s relationships with the valued talent working with them.
Solution
Choice Meets Compliance
MBO Partners offered the firm a more flexible option to work with independent talent through Business Services—an engagement solution unique to the industry that allows professionals to work as contractors without being payrolled employees or fully qualifying as 1099 vendors.
MBO started by analyzing the client's independent workforce and identified 75 professionals who could immediately transition to the Business Services option.
Key Updates Implemented:
- Reclassified 75 independent professionals from W-2 payrolled employees to independent contractors under MBO’s Business Services option. This provided talent with a more flexible, preferred work structure while giving the client greater control over workforce planning and resourcing and significantly reduced contractor spend.
- Reduced the administrative requirements associated with non–W-2 engagement. These independent professionals were able to meet insurance obligations under MBO’s umbrella coverage, which helped maintain compliance and lower misclassification risk.
- Streamlined onboarding helped professionals start work faster, with fewer administrative burdens and ongoing white-glove support throughout the process.
GATE
Results
Retention and Cost Savings
The new program created benefits for independent professionals and gave the client clear, measurable results.
- Successfully transitioned 75 professionals from EOR payroll to Business Services for the client which provided much needed flexibility
- Delivered $1.1 million in cost savings in 6 months, along with time and resource savings through smarter workforce planning and improved productivity
- Increased retention to an impressive 97%, up from just 41%—driven by increased talent satisfaction, a simplified onboarding experience, and MBO’s ongoing support throughout the engagement
What used to be a frustrating experience for talent and the client is now more flexible, efficient and cost-effective. Independent professionals can get to work faster and focus on their performance, while the client has a clearer way forward to achieving their key business goals.
MBO offered exceptional support and insight throughout the onboarding process. They provided clear guidance, were highly responsive, communicated effectively, and made everything seamless. I was fortunate to work with them, and the outcome of our collaboration was outstanding!
-Nick Summers, independent professional working with the client
The MBO Difference
MBO connects you with high-value talent across a variety of in-demand roles, supported by data-driven insights and streamlined hiring processes. We provide independent professionals the flexibility they need while helping companies achieve faster growth, cost savings, and stronger business partnerships.
Ready to build your workforce for the future? Explore our AOR solution or reach out to our team to get started.
Industry
Professional Services
Number of employees
227,000
Company revenue
$29.2 Billion
Areas served
147 Countries
75
Talent reclassified
97%
Retention rate
$1.1M
Saved in 6 months
Holly Kehrer
Vice President, Enterprise Solutions
Holly manages client relationships and program growth for a portfolio of accounts. Her years of experience in human capital management and workforce solutions give her the expertise to help clients build sustainable program strategies that align technology, services, and solutions with critical business initiatives-all while increasing visibility and mitigating risk.
