Pooled Employer Plans as a Strategic Differentiator, with Saalex Corporation
Saalex, a U.S.-based government contractor, understands the value of employee benefits in attracting and retaining top talent. After a complete review of benefits, they were interested in the cost savings, administrative efficiencies and added benefits of a pooled employer program.
Key Takeaways
-
Retirement benefits are a key driver of retention and attraction efforts, but employers acting as plan sponsors can spend significant time and resources managing defined contribution plans.
-
The economies of scale of a pooled employer plan allowed Saalex to offer best in class benefits, despite being a smaller company.
-
Communicating with employees about the scope and advantages of a benefit program is important to getting buy-in.
Saalex, a middle-market aerospace and defense contractor, had completed a large acquisition in 2024. CEO and Chairman Travis Mack knew it was the right time to conduct a comprehensive review of the firm’s employee benefits, with the goal of finding opportunities to enhance benefits and save costs for the growing organization. The complexities of growth, including multiple providers and increased administrative burden, were limiting the organization’s ability to offer the kind of benefits they needed.
“My goal as a leader is always trying to enhance what we provide to the point where we are best in the industry,” said Mack. “We strategically review our benefits, identify opportunities for enhancements while maintaining cost effectiveness.”
Following the benefits review, Mack was particularly interested in how a pooled employer plan (PEP) could reduce costly 401(k) fees for employees, as well as free up resources required from Saalex to manage the retirement plan. Mack understood that the path to the best possible total rewards package was through cost savings, efficiency and good governance.
Why PEPs are Emerging as a Popular Retirement Solution
PEPs have emerged as a popular retirement solution since they were launched in 2021. In just four years since inception, PEPs had more than $10 billion in assets and over 24,000 participating employers, according to a report by Cerulli Associates.
$6B
The Aon PEP surpassed $6 billion in live and committed assets, 140 employers and 100,000 eligible employees in 2025.
Source: Aon internal data
Turning to the Aon PEP as a solution, Saalex was able to reduce fees by $331,000 per year — a 59% cost reduction. The new arrangement also established a more robust 401(k) platform to help employees accumulate wealth and improve their retirement futures.
An unexpected further benefit has been the reduced administrative burden on the HR team at Saalex, which has allowed them to focus on higher impact, more strategic matters. No HR team wants to be bogged down by administrative hassles. This came at an important time for Saalex’s HR and finance teams to focus time and energy on M&A and rapid growth.
Organizations in the Aon PEP saw an 11.4% increase in participation rates after 12 months and a 5.2% average increase in savings rates for participants after 24 months, according to an Aon analysis.
The Importance of Employee Communication
When transitioning to a new provider or a new system, it’s important to get buy-in from employees. For Saalex, that meant communicating why the firm was moving to a PEP — including how it would benefit employees and the organization. This was crucial to ensuring their support for the change.
Mack’s goal remains the same: Enhance the benefits they provide their workers to the point where they can not only compete for top talent, but also be considered best in class. “Having a robust benefits package is truly a competitive advantage, because we are competing with other organizations to offer the best for our workforce,” said Mack. “It’s important for retention and it’s important for recruiting.”
General Disclaimer
This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.
Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.
Aon's Better Being Podcast
Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.
Aon Insights Series Asia
Expert Views on Today's Risk Capital and Human Capital Issues
Aon Insights Series Pacific
Expert Views on Today's Risk Capital and Human Capital Issues
Aon Insights Series UK
Expert Views on Today's Risk Capital and Human Capital Issues
Client Trends 2025
Better Decisions Across Interconnected Risk and People Issues.
Construction and Infrastructure
The construction industry is under pressure from interconnected risks and notable macroeconomic developments. Learn how your organization can benefit from construction insurance and risk management.
Cyber Resilience
Our Cyber Resilience collection gives you access to Aon’s latest insights on the evolving landscape of cyber threats and risk mitigation measures. Reach out to our experts to discuss how to make the right decisions to strengthen your organization’s cyber resilience.
Employee Wellbeing
Our Employee Wellbeing collection gives you access to the latest insights from Aon's human capital team. You can also reach out to the team at any time for assistance with your employee wellbeing needs.
Environmental, Social and Governance Insights
Explore Aon's latest environmental social and governance (ESG) insights.
Q4 2023 Global Insurance Market Insights
Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages.
Global Risk Management Survey
Better Decisions Across Interconnected Risk and People Issues.
Regional Results
How do the top risks on business leaders’ minds differ by region and how can these risks be mitigated? Explore the regional results to learn more.
Top 10 Global Risks
Trade, technology, weather and workforce stability are the central forces in today’s risk landscape.
Industry Insights
These industry-specific articles explore the top risks, their underlying drivers and the actions leaders are taking to build resilience.
Human Capital Analytics
Our Human Capital Analytics collection gives you access to the latest insights from Aon's human capital team. Contact us to learn how Aon’s analytics capabilities helps organizations make better workforce decisions.
Human Capital Quarterly Insights Briefs
Read our collection of human capital articles that explore in depth hot topics for HR and risk professionals, including using data and analytics to measure total rewards programs, how HR and finance can better partner and the impact AI will have on the workforce.
Insights for HR
Explore our hand-picked insights for human resources professionals.
Workforce
Our Workforce Collection provides access to the latest insights from Aon’s Human Capital team on topics ranging from health and benefits, retirement and talent practices. You can reach out to our team at any time to learn how we can help address emerging workforce challenges.
Mergers and Acquisitions
Our Mergers and Acquisitions (M&A) collection gives you access to the latest insights from Aon's thought leaders to help dealmakers make better decisions. Explore our latest insights and reach out to the team at any time for assistance with transaction challenges and opportunities.
Natural Resources and Energy Transition
The challenges in adopting renewable energy are changing with technological advancements, increasing market competition and numerous financial support mechanisms. Learn how your organization can benefit from our renewables solutions.
Navigating Volatility
How do businesses navigate their way through new forms of volatility and make decisions that protect and grow their organizations?
Parametric Insurance
Our Parametric Insurance Collection provides ways your organization can benefit from this simple, straightforward and fast-paying risk transfer solution. Reach out to learn how we can help you make better decisions to manage your catastrophe exposures and near-term volatility.
Pay Transparency and Equity
Our Pay Transparency and Equity collection gives you access to the latest insights from Aon's human capital team on topics ranging from pay equity to diversity, equity and inclusion. Contact us to learn how we can help your organization address these issues.
Property Risk Management
Forecasters are predicting an extremely active 2024 Atlantic hurricane season. Take measures to build resilience to mitigate risk for hurricane-prone properties.
Technology
Our Technology Collection provides access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities of technology. Reach out to the team to learn how we can help you use technology to make better decisions for the future.
Trade
Our Trade Collection gives you access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities for international business. Reach out to our team to understand how to make better decisions around macro trends and why they matter to businesses.
Transaction Solutions Global Claims Study
Better Decisions Across Interconnected Risk and People Issues.
Weather
With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.
Workforce Resilience
Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.
More Like This
-
Article 4 mins
How to Uncover Hidden Costs in Employee Retirement Plans
Uncovering hidden costs is essential, not just for today’s balance sheet, but for securing the financial future of organizations and their retirees.
-
Article 6 mins
Strategies for Closing the Gender Retirement Pay Gap
Addressing the retirement pay gap issue between men and women starts with first acknowledging it exists. Then companies can conduct further analysis and adjust their benefit plans accordingly.
-
Article 8 mins
How AI, Cost Pressures and Reskilling are Transforming Talent Strategies
AI acceleration, rising healthcare costs and changes to workforce skills are transforming organizations. Our analysis of financial services, life sciences and technology companies provides insights on how to redesign roles, reskill at scale and reimagine talent strategies to stay competitive.