AllCaps Case Study: HRIS Contract Renegotiation

Client: Meridian Technologies, Inc. (Tech startup, 150 employees)
Vendor: TalentCore HRIS Solutions* (*name changed for confidentiality)
Contract Type: HRIS SaaS Renewal
Original Annual Value: $40,000/year ($267/employee/year)
Contract Term: 2 years, expiring January 31, 2026
Case Study Period: October 2025 - December 2025

Executive Summary

Meridian Technologies successfully renegotiated their HRIS contract through AllCaps' guided negotiation system, achieving a 12.5% cost reduction ($5,000/year savings) while securing improved terms including a renewal uplift cap, termination for convenience rights, and enhanced SLA commitments. The 36-day process combined AI-assisted strategy development with human-led negotiation execution, resulting in $10,000 in total 2-year savings and stronger contractual protections.

Key Outcomes:

Annual Contract Value: $35,000 (down from $40,000)
Per-employee cost: $233/year (down from $267/year, now at market median)
2-year term with 5% annual uplift cap
TFC with 20% declining buyout secured
Enhanced SLA: 99.5% uptime commitment with credits
Total savings: $10,000 over contract term

Background & Context

The Client

Meridian Technologies is a 150-person B2B SaaS company that implemented TalentCore in January 2024 for core HR functions including payroll, benefits administration, time tracking, and performance management. The company had grown from 100 employees at contract signing to 150 employees, with plans to reach 180 employees by end of 2026.

The Challenge

In October 2025, Meridian's finance team flagged the upcoming TalentCore renewal:

TalentCore's renewal quote: $45,600/year (+14% increase)
Budget constraint: Maximum 5% increase acceptable ($42,000)
Gap: $3,600 annual overage vs. budget
Market research indicated TalentCore pricing was at high end of comparable platforms

The Decision

Rather than accept the vendor's terms or conduct a time-intensive RFP process, Meridian engaged AllCaps to manage the contract negotiation using their structured negotiation system.

STAGE 0: Contract Management & Renewal Alert

Timeline: Day -90 to Day 0 (August 1 - October 31, 2025)
Status: active → approaching_renewal
Owner: AllCaps System (Automated)

Day -90 (August 1, 2025)

AllCaps system automatically flagged TalentCore contract as approaching renewal (expiring January 31, 2026).

System Alert Email to Client:

To: finance@meridiantech.com
From: AllCaps Renewal Tracker <alerts@allcaps.ai>
Subject: Contract Renewal Alert: TalentCore HRIS (Expires Jan 31, 2026)

Hi Meridian team,

Your TalentCore HRIS contract is approaching renewal in 90 days.

Contract Details:
- Vendor: TalentCore HRIS Solutions
- Current Annual Value: $40,000
- Expiration Date: January 31, 2026
- Employees Covered: 150
- Auto-renewal: Yes (60-day notice required)

Recommended Action: Begin renewal evaluation by November 1 to allow sufficient negotiation time.

View contract details: [Link to dashboard]
Initialize renewal: [Button]

Questions? Contact your AllCaps account manager.

Day -60 to Day -1 (September 1 - October 30)

Meridian team reviewed contract details
Received TalentCore renewal quote on October 15: $45,600/year
Finance flagged budget concern
CFO approved renewal negotiation via AllCaps on October 30

STAGE 1: Renewal Initialization

Timeline: Day 1 (October 31, 2025)
Status: renewal_initiated
Owner: Client (Sarah Kim, VP Finance)

Day 1 - Morning (October 31, 2025)

Action: Sarah Kim (VP Finance) logged into AllCaps dashboard and clicked "Initialize Renewal" for TalentCore contract.

System Prompt:

Renewal Initialization: TalentCore HRIS

Please confirm the following information:

1. Do you want to renew this contract?
   ☑ Yes, proceed with negotiation
   ☐ No, plan to terminate
   ☐ Undecided, evaluate alternatives first

2. Current employee count: [150] (was 100 at contract start)
3. Projected employee count in 12 months: [180]
4. Budget for renewal: [$42,000] (max 5% increase)
5. Has vendor provided renewal quote?
   ☑ Yes → Upload quote: [TalentCore_Renewal_Quote_2026.pdf]
6. Any major pain points with current vendor?
   [Text box: "Pricing is at high end. Support response times have been slow (4-6 hours for non-urgent issues). Missing some advanced reporting features we need."]

7. Key stakeholders for this renewal:
   - Finance: sarah.kim@meridiantech.com ✓
   - HR: jennifer.lee@meridiantech.com ✓
   - Legal: michael.torres@meridiantech.com ✓
   - IT: david.chen@meridiantech.com ✓

[Initialize Renewal] [Cancel]

Sarah's Input:

Confirmed renewal intent
Current headcount: 150 employees
Projected: 180 employees (20% growth)
Budget ceiling: $42,000/year (5% increase max)
Vendor quote: $45,600/year (14% increase) - uploaded PDF
Pain points: "Pricing high, slow support for non-P1 issues, reporting gaps"
Stakeholders identified

System Response:

Renewal Initialized Successfully

Negotiation ID: NEG-2025-TALENTCORE-001
Status: Strategy preparation assigned to AllCaps team

Next Steps:
✓ Contract and renewal quote received
✓ AllCaps analyst assigned (Jessica Martinez)
→ Strategy development: Expected completion Nov 4
→ You'll be notified when strategy is ready for review

Estimated timeline: 30-35 days to contract execution
Target completion: Early December 2025

Day 1 - Afternoon

Internal AllCaps Assignment:

Negotiation assigned to Jessica Martinez (AllCaps Senior Analyst)
Task created: "Prepare negotiation strategy for Meridian/TalentCore renewal"
Due date: November 4 (3 business days)

STAGE 2: Strategy Preparation

Timeline: Day 1-3 (October 31 - November 4, 2025)
Status: strategy_in_progress → strategy_draft_ready
Owner: AllCaps Team (Jessica Martinez)

Day 1-3 (Oct 31 - Nov 4): Analysis & Strategy Development

Jessica Martinez (AllCaps analyst) conducted multi-dimensional analysis using AI chat:

Analysis Summary:

1. Bargaining Power Assessment:

Supplier Concentration: 7/10 (Strong alternatives exist: BambooHR, Namely, Rippling, Gusto)
Switching Cost: 5/10 (Moderate - 6-8 week implementation, data migration manageable)
Buyer Volume Impact: 2/10 (150-seat customer, minimal revenue impact to TalentCore)
Product Criticality: 6/10 (Important but not mission-critical; alternatives viable)
Time Pressure: 6/10 (90 days to expiration - adequate time)
Price Sensitivity: 7/10 (Budget constrained, CFO approval required for overages)
Relative Bargaining Power: +0.8 (Slight buyer advantage)

2. Should-Cost Analysis:

Current pricing: $267/employee/year
Market median (BambooHR, Namely, Gusto): $220-240/employee/year
TalentCore quote: $304/employee/year (14% increase)
Assessment: Current pricing is 11-21% above market median; proposed increase is unjustified
Target pricing: $230-240/employee/year ($34,500-36,000 annual)

3. Strategic Value to Vendor:

Growth account (50% headcount increase since signing)
Tech sector vertical (desirable reference)
Low churn risk (good relationship, no major issues)
Score: 6/10 (Moderate strategic value - vendor incentivized to retain)

4. Market Dynamics:

HRIS market is highly competitive (10+ strong players)
Recent funding: TalentCore raised Series B ($30M) in June 2025 (moderate pressure to grow revenue)
Pricing trend: Industry flat to slight decline (2-3% annually) due to competition
Score: 7/10 (Buyer-favorable market)

5. Relationship History:

SLA compliance: 8/10 (Platform stable, 99.7% uptime)
Support quality: 6/10 (Adequate but slow response on non-urgent tickets)
Roadmap delivery: 7/10 (Most features delivered, some delays)
Commercial integrity: 7/10 (No surprise fees, transparent pricing)
Trust Index: 7.0/10 (Good relationship, worth preserving)

Synthesis:

Recommended Posture: Assertive with collaborative framing
Primary Objective: Reduce to $35,000-36,000/year (12-15% reduction from quote)
Secondary Objectives: Cap annual uplifts at 5%, add TFC clause, improve support SLA
Leverage Points: Market pricing data, competitive alternatives, growth trajectory
BATNA: Switch to BambooHR at $35,000/year + $8,000 migration cost
Strategy: Lead with market data and competitive pressure; emphasize growth potential for partnership discount

Day 3 (November 4) - Strategy Input to System

Jessica input final strategy into AllCaps system:

Strategy Summary:

Strategy Objectives: • Reduce annual contract value to $35,000-36,000 (12-15% reduction from vendor's $45,600 quote, aligning with market median of $230-240/employee/year) • Secure contractual protections including 5% annual uplift cap, termination for convenience with 20% buyout, and enhanced support SLA commitments • Preserve partnership while addressing support quality gaps and establishing clear performance expectations

Next Steps: • Send non-renewal notice immediately to preserve optionality (60-day requirement) • Obtain competing quotes from BambooHR and Gusto to establish credible BATNA • Draft initial position email citing market pricing benchmarks and growth commitment • Schedule internal stakeholder alignment on walkaway threshold and term priorities

Key Focus Areas: • Market positioning: TalentCore's quote of $304/employee is 26% above market median - emphasize competitive pricing research • Growth leverage: 50% headcount growth since signing (100→150) with 20% more projected (→180) represents expansion opportunity for vendor • Support improvement: Current 4-6 hour response times for non-urgent issues need contractual SLA targets (2-hour response for all tickets)

Supporting Analysis:

Current pricing: $267/employee vs. market median $230-240/employee (11-16% premium)
Vendor quote: $304/employee (28-32% above market)
Target: $233-240/employee ($35,000-36,000 annually)
BATNA: BambooHR at $233/employee ($35K annual) + $8K migration
2-year TCO comparison: TalentCore at target ($72K) vs. BambooHR ($78K including migration)

System Update:

Status Updated: strategy_draft_ready
Task Created: "Review negotiation strategy" → Assigned to sarah.kim@meridiantech.com
Strategy Assistant Chat: Enabled
Due: November 6, 2025

STAGE 3: Strategy Review & Finalization

Timeline: Day 4-5 (November 5-6, 2025)
Status: strategy_review → strategy_approved
Owner: Client (Sarah Kim, VP Finance)

Day 4 (November 5) - Client Strategy Review

Email Notification to Sarah:

To: sarah.kim@meridiantech.com
From: AllCaps Platform <notifications@allcaps.ai>
Subject: TalentCore Negotiation Strategy Ready for Review

Hi Sarah,

Your negotiation strategy for TalentCore HRIS renewal is ready for review.

Strategy Highlights:
• Target savings: $9,600-10,600/year (vs. vendor quote)
• Recommended approach: Assertive with competitive benchmarking
• Timeline: 25-30 days to close

Action Required: Review and approve strategy via Strategy Assistant

[Chat with Strategy Assistant] [View Full Analysis]

Questions? Reply to this email or contact Jessica Martinez (jessica@allcaps.ai)

Day 4-5 (November 5-6) - Strategy Assistant Chat Transcript

Strategy Assistant Chat Interface:

Strategy Assistant (Nov 5, 10:15 AM): Hi Sarah! I've analyzed your contract, TalentCore's renewal proposal, and market conditions to create a negotiation strategy. Here's what I recommend:

Strategy Objectives • Reduce annual contract value to $35,000-36,000 (12-15% reduction from vendor's $45,600 quote, aligning with market median of $230-240/employee/year) • Secure contractual protections including 5% annual uplift cap, termination for convenience with 20% buyout, and enhanced support SLA commitments
• Preserve partnership while addressing support quality gaps and establishing clear performance expectations

Next Steps • Send non-renewal notice immediately to preserve optionality (60-day requirement) • Obtain competing quotes from BambooHR and Gusto to establish credible BATNA • Draft initial position email citing market pricing benchmarks and growth commitment • Schedule internal stakeholder alignment on walkaway threshold and term priorities

Key Focus Areas • Market positioning: TalentCore's quote of $304/employee is 26% above market median - emphasize competitive pricing research • Growth leverage: 50% headcount growth since signing (100→150) with 20% more projected (→180) represents expansion opportunity for vendor • Support improvement: Current 4-6 hour response times for non-urgent issues need contractual SLA targets (2-hour response for all tickets)

What questions do you have about this approach?

Sarah Kim (Nov 5, 10:32 AM): This looks solid. A few questions:

Is $35K realistic? That's a pretty aggressive ask from their $45.6K quote
Do we really need to send a non-renewal notice? Won't that create tension?
What if they refuse to budge?

Strategy Assistant (Nov 5, 10:35 AM): Great questions! Let me address each:

1. Is $35K realistic? Yes, for these reasons:

Market data shows TalentCore is pricing 26% above median competitors
Your current $40K is already 11-16% premium to market
You have credible alternatives (BambooHR confirmed pricing at $35K)
You're a growth account (50% headcount increase) - they want to retain you
Target of $35K = $233/employee (market median), fully defensible

Our analysis shows 85% confidence they'll accept $35-36K given competitive pressure and your growth trajectory.

2. Non-renewal notice strategy This is standard best practice and actually reduces tension by:

Preserving optionality (you can still renew, but have freedom to exit)
Signaling seriousness (not a bluff - you're genuinely evaluating alternatives)
Meeting contractual requirements (60-day notice mandated)
Creating negotiation leverage (vendor knows you're not locked in)

We'll frame it professionally: "Sending notice per contract terms while we evaluate renewal options."

3. What if they refuse to budge? You have a strong BATNA (Best Alternative):

BambooHR implementation: 6-8 weeks, $8K migration cost
Year 1 total cost: $43K (BambooHR $35K + $8K migration)
Year 2+ savings: $10,600/year vs. TalentCore quote
2-year TCO: BambooHR $78K vs. TalentCore $91K (quote) = $13K savings

But we don't expect refusal. TalentCore has strong incentive to negotiate given:

Competitive market
Your growth trajectory
Cost of acquiring new customers vs. retaining existing
Our proposal is fair (market-rate pricing, not below-market)

Would you like me to adjust anything in the strategy?

Sarah Kim (Nov 5, 10:42 AM): No, this makes sense. One more thing - what about the support SLA? Will they actually commit to 2-hour response times?

Strategy Assistant (Nov 5, 10:45 AM): Good catch. The 2-hour response target for ALL tickets might be aggressive. Let me refine:

Proposed SLA Structure:

P1 (Critical/Down): 30-minute response, 4-hour resolution target
P2 (Major issue): 2-hour response, next-business-day resolution
P3 (Minor issue): 4-hour response (improvement from current 4-6 hours)
Platform uptime: 99.5% monthly with tiered service credits

This is market-standard for mid-market HRIS vendors and addresses your concern about slow support without being unrealistic.

For context: Your current contract has no SLA commitments beyond "commercially reasonable efforts." Getting any contractual SLA is an improvement.

Should I update the strategy with this refined SLA language?

Sarah Kim (Nov 5, 10:48 AM): Yes, that's better. Update it. And I want to confirm - AllCaps will handle the actual negotiation emails and calls? I just need to approve the final terms before we sign?

Strategy Assistant (Nov 5, 10:50 AM): Exactly right. Here's the workflow:

AllCaps handles:

All vendor communications (emails, calls)
Negotiation tactics and positioning
Competitive research and benchmarking
Tracking vendor responses and gaps

You handle:

Final terms approval (before legal review)
Any executive escalation if needed (unlikely)
Internal stakeholder coordination
Contract signature

You'll get regular updates (every 3-5 days) and can see all communications in real-time via your dashboard. If you ever want to jump in, just let us know.

I'll update the SLA language and mark this strategy as approved. Sound good?

Sarah Kim (Nov 5, 10:52 AM): Perfect. Approved. Let's do it.

Strategy Assistant (Nov 5, 10:53 AM): Excellent! Strategy approved and locked.

Jessica Martinez (your AllCaps analyst) will begin playbook generation today and initiate negotiation by November 8.

Next notification: Playbook will be ready for your reference by end of day November 6.

Timeline:

Nov 8: Initial outreach to TalentCore
Nov 20-25: Target for terms convergence
Dec 5-10: Legal review and execution

I'll keep you posted on progress. Good luck! 🎯