The problem: Group health costs that kept climbing
RLO Incorporated does business as Great Clips across 87 salons in four states. Like any hair salon, it competes constantly for stylists, against booth rentals, independent salons, and rival chains, and a strong benefits package is one of the few things that sets an employer apart in that fight.
But for years, the cost of offering that benefit kept climbing. Group health plan renewals rose year after year, eventually topping 40% in a single year. HR Manager Lisa Storm needed a benefit that could help Great Clips compete for talent without becoming a budget risk.
The company first moved off its group plan in 2024 and onto an employee health budget model, administered by another ICHRA vendor. That worked well enough, but every payroll change still had to be entered by hand into the benefits platform each week. When Lisa learned Thatch could connect directly to Great Clips' Paychex payroll system, she made the switch.
The result: Time saved, money saved, and no more brokers needed
Leaving group health wasn't a small decision. It meant giving up something known for something new and different.
💬 “Moving off group health plans was the right call for us. We’re not bracing for whatever the renewal brings anymore,” said Lisa Storm, HR Manager at R.L.O., INC., a Great Clips franchisee. “Thatch has also made us more competitive in a tight market for stylists. Offering benefits that actually fit them is what helps us attract the best people.”
Before the switch, every change — a new hire, a rehire, a cancellation, an update to someone’s zip code or full-time status — had to be entered by hand, every week. With Thatch’s direct integration into Paychex, those changes now sync automatically.
Lisa estimates she's gotten about 90 minutes back every week, time she now puts toward performance management. On top of that, Great Clips doesn't have to pay a broker for using Thatch. Thatch's compliance support covers what a broker used to.
💬 “Thatch’s integration with Paychex has been huge. I used to update everything by hand every week, and now it just syncs. That gives me time back for the rest of my job,” said Lisa. “And whenever I’ve had a question or run into an issue, the Thatch team has been quick to help. I appreciate the people and the support.”