Kustom HR Case Study

Industry:

PEO Broker/HR Consulting

Challenge:

Due to continued growth and success, Kustom HR, a New Jersey-based PEO broker and fractional HR company was facing operational bottlenecks when providing clients with critical data needed to make a well-informed PEO choice. The internal process of gathering proposals, managing underwriting teams, and creating comparison documents consumed valuable time that could also have been spent serving clients. A previous partnership with a general agency provided some relief but introduced new problems, like faulty analytics and data gaps that if not corrected, could compromise Kustom HR’s reputation. Fred Karamanol, CEO and founder of Kustom HR, therefore needed a solution that would streamline operations without sacrificing accuracy or client service quality.

Results:

Within 60 days of partnering with BestFit PEO Solutions, Kustom HR closed four deals and experienced transformative operational improvements. The partnership delivered faster turnaround times, improved compensation from PEO providers, and enhanced accuracy in client proposals. BestFit's customized online broker portal enabled 24/7 submission capabilities and real-time status tracking for Kustom HR. Meanwhile the BestFit team's thoroughness, accuracy and rapid responsiveness freed up Kustom HR to focus on their primary mission, providing exceptional HR services to clients.

Key Product:

Professional Employer Organization Consulting and General Agent Services

“I believe they are the very first value-added PEO general agent in the marketplace today. Everyone else is just moving numbers on a spreadsheet. Most other firms come out of the benefits side of things and are not as familiar with PEOs."

Fred Karamanol, CEO and Founder, Kustom HR

About Kustom HR:

Kustom HR is a dynamic fractional HR company, offering tailored human resources solutions to small and medium-sized businesses. Specializing in outsourced HR services, they provide expert support in areas like compliance, employee relations, recruitment, and strategic HR planning, allowing businesses to scale efficiently without the overhead of a full-time HR department.    

The Challenge:

As Kustom HR's PEO broker and fractional HR practice grew, so did demand for their consulting and vendor management services. Approximately 80% of their clients ultimately opt for PEO arrangements, which require extensive research, proposal gathering, and analysis to identify and initiate those partnerships. Initially, Fred handled all of the work associated with this service himself. 

"When I started the business, I was doing this all internally - all the legwork, gathering all the data, the back and forth with the underwriting teams. I spent a significant amount of time administering and doing that work, then writing the comparison document for the client," Fred explained.

A partnership with another general agency provided temporary relief but introduced a more serious problem: faulty analytics with significant gaps. "If we are going to be the subject matter experts, we have to make sure the data is right," Fred explained. 

The situation became critical enough that Fred considered bringing all vendor management work back in-house, despite the significant operational burden this would create.  

The Solution:      

Approximately six months before engaging with BestFit, Fred began exploring options to solve his vendor management challenge. Discussions with BestFit PEO Solutions revealed a better and fundamentally different approach to general agency services. Unlike other firms that simply "move numbers on a spreadsheet," BestFit offered what Fred describes as the first true "value added PEO GA in the marketplace." The BestFit team's deep expertise with PEO operations aligned perfectly with Kustom HR's need for accurate, comprehensive analysis.  

The Result

The partnership has transformed Kustom HR's vendor management operations. Within just 60 days of joining the BestFit PEO Network, Kustom HR closed four deals, demonstrating both the efficiency gains and the improved quality of proposals. The new arrangement delivers multiple benefits, including 24/7 online support, rapid responsiveness from BestFit PEO’s team, and accurate PEO proposals in half the time it would take Kustom HR to do it alone.

Fred's perspective on the PEO marketplace provides important context for these results. He notes that moving to a PEO can be an excellent decision, but only "when information is properly disclosed and negotiated.” He explains that most people focus on the top three PEO options with the largest marketing budgets, and that proposals from PEO representatives often frame outcomes in ways that obscure actual fees and services.  With BestFit handling the complex backend work accurately, efficiently, and transparently, Kustom HR can now focus on what they do best: providing strategic guidance and ensuring clients make informed decisions on their specialized HR needs.

“I believe [BestFit PEO Solutions] are the very first value added PEO GA in the marketplace today. Everyone else is just moving numbers on a spreadsheet.”

Fred Karamanol, CEO and Founder, Kustom HR