Switching & Exits
Renewal Season: The 6-Week Window That Decides Your Next 12 Months
TL;DR
- •Most PEO renewals are negotiated 60–90 days before the effective date.
- •The leverage is in having a credible alternative quote ready, not in arguing about the renewal letter.
- •Renewal is the cleanest moment to switch — the plan year reset removes most operational friction.
Renewal season is the highest-leverage moment in the PEO relationship. It is also the moment most clients miss because the leverage window opens before the renewal letter arrives.
The six-week renewal calendar
- T-90 days: Request a preliminary renewal indication and current census report from the PEO
- T-75 days: Begin a market check — at least two alternative quotes from credible vendors
- T-60 days: Receive formal renewal letter; compare line-by-line against alternatives
- T-45 days: Negotiate or initiate transition planning
- T-30 days: Decision point — renew, switch, or go standalone
- T-0: Effective date
Where the leverage actually lives
Leverage comes from a credible, executable alternative — not from rhetoric. A PEO that knows you have a real second quote will sharpen its renewal terms. A PEO that knows you don't will not.
Why renewal is the cleanest switch moment
Plan-year alignment removes the medical-coverage gap risk. 401(k) plan year rollover is cleaner. Workers comp policies generally renew on the same cycle. If you are going to switch, the renewal date is the date.
Frequently asked questions
How much should renewal pricing change year to year?
Single-digit percentage increases are typical when claims experience is stable. Double-digit jumps require a written explanation.
Can we re-quote without leaving?
Yes. A market check is standard procurement hygiene, not a hostile act.
Related reading
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