Why 99.5% of Rippling PEO customers stay with Rippling year over year

Published

Dec 20, 2024

Every PEO re-prices benefits risk every year, and every year, the market forces benefits rates higher. Customers often look to save money by switching and taking a short-term deal with another provider, driving up turnover in the PEO industry. 

So it's remarkable that Rippling retained more than 99.5% of its PEO customers during the fall 2024 renewal season. I want to share how this was possible—not just because we're proud, but because it could be useful for anyone considering a PEO.

Customers stay with Rippling because we grow with them, offer transparent and predictable renewal rates, and have better tech. Turns out, you don’t have to choose between the expertise that comes with a full service HR department, modern technology, and quality care. 

Breaking up (with a PEO) is hard to do

Most PEOs lose 10% of their customers every year. As renewals come up, reasons for leaving vary, from skyrocketing benefits rates to headcount growth that outgrew the PEO. 

But as common as it is for companies to outgrow PEOs, it’s difficult for them to actually leave a PEO. The switch is often long and burdensome, requiring organizations to rip out the HR software the PEO implemented in order to replace it with something that stands on its own.

Three reasons customers stay with Rippling

There are three key reasons why 99.5% of Rippling PEO customers stay with Rippling:

Rippling grows with your company

Rippling is the only provider that lets you move on or off the PEO without needing to rip and replace your HRIS.

In other words, we allow you to switch between services as your business needs change. With the click of a button, you can transition on or off Rippling PEO—and all your HR, payroll, and employee data stays intact.

For example, let’s say your business grows to the point where it makes more sense to shop for your own large group health plans instead of accessing plans through a PEO. You can easily flip a switch to turn off the PEO and just use Rippling to automate compliance—or even just unplug the PEO health plan and plug in your own benefits.

Or one day you may decide it’s time to bring compliance in-house, so you transition seamlessly to Rippling’s HR management software. Your HR, payroll, and employee data will still be stored in your account. Your employees will have the same logins, and they’ll continue using Rippling the same way they have been.

Rippling is the only PEO that makes it easy to transition on and off based on your business needs. No other PEO offers a standalone HR platform. If you ever outgrow any other PEO, you’ll spend months setting up an entirely new HR system—from payroll, to integrations, to compliance, and more.

Rippling offers transparent, predictable renewal rates

After wages, benefits are the second highest employee-related cost—and they’re continuing to rise every year. Many businesses turn to PEOs to access higher quality, more affordable employee benefits at scale. But PEOs often offer attractive benefits rates in the first year to get businesses in the door—and then unexpectedly jack up renewal rates, leaving orgs with a choice between bloated benefits costs or finding a new PEO.

But as employer-sponsored health insurance costs rise an average of 9% nationally in 2025, Rippling PEO has delivered renewal rate increases below the national average for the vast majority of customers for four consecutive years—7.5% or less. We pride ourselves on offering renewal rates that are transparent and fair—no sweetheart rates for the first year and no bait-and-switch in the second year. Just a reliable PEO you can stay with instead of having to shop for a new one every one to two years.

Rippling’s technology is natively built

Unlike the many PEOs built on clunky, outdated software, Rippling’s technology is natively built from the ground up, unifying all your employee data into a single source of truth. 

By syncing all of your HR, IT, and finance data across a single, unified platform, Rippling allows you to streamline and automate important administrative tasks across the entire employee lifecycle—from recruiting to payroll, benefits administration, headcount planning, learning management, and more. Rippling removes barriers between key HR functions—event-triggered workflows mean you no longer need to navigate between multiple platforms to complete important tasks. Plus, automated compliance alerts keep you up to date of important regulatory changes. 

For example, let’s say an employee moves to a new state. When their address is updated in Rippling, much of the HR work required happens automatically:

  • If they need updated compensation to comply with minimum wage laws in their new state, you’ll get an alert.
  • They’ll be enrolled in new benefits plans, if needed.
  • They’ll have their payroll tax withholding updated automatically, with accounts created in their new state and taxes automatically withheld and filed with the proper state and local tax authorities.
  • They’ll automatically be enrolled in any new state-required employee training programs.

Without all that time-consuming work on your HR team’s plate, they can focus on the work that matters, becoming real, strategic partners in your organization.

Become one of the 99.5% of customers who stay with Rippling

Your benefits prices are guaranteed to change, but your benefits software doesn’t have to.

Rippling is the only PEO you need—from inception to IPO. 99.5% of our customers stay with us because we’re delivering on our goal to help companies like yours grow faster, stay compliant, and focus on what matters: your product and your growth.

This blog is based on information available to Rippling as of December 19, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

last edited: December 20, 2024

Author

Matt MacInnis

Chief Operating Officer

Matt MacInnis is Chief Operating Officer at Rippling where he oversees business operations. He was previously co-founder and CEO of Inkling, a mobile learning platform that raised over $100 million in funding before being acquired in 2018. Before Inkling, Matt spent eight years at Apple, growing the use of its products in education and the sciences. He holds an Electrical and Computer Engineering degree from Harvard, and lives in San Francisco with his husband and kids.