With unemployment rates still at an all-time low, retaining temporary workers continues to be top of mind for employers and staffing agencies like That’s Good HR.
The current debate regarding the Affordable Care Act (ACA) does not help as benefits are a top reason talent is retained. That’s Good HR offers the required ACA health care plans to all full-time temporary workers, but there is low participation in these plans.
We are committed to our candidates and want to attract the highest caliber employees for our clients. One of the ways we do this is to offer other health insurance options, including a fixed indemnity insurance plan. Indemnity plans offer the freedom for employees to choose their own health care professionals and visit almost any hospital they choose. Employers have been using traditional indemnity plans since the World War II era. Interestingly, before World War II only 10% of employees had health coverage from any source, but by 1955 (10 years after the War) nearly 70% of workers had health insurance, according to The Essentials of Managed Health Care.
We believed that this type of insurance plan could be a better fit and more useful to a temporary employee. This month a study was released that confirmed that this was the right decision. Essential Staff Care, known as ESC, tabulated data from more than half a million temporary staffing employees across the country. The study revealed that temporary employees enrolled in an ESC Indemnity Plan stayed on their assignment 47% longer than employees not enrolled in an indemnity plan. That is good news for That’s Good HR, since this type of plan is the most popular option for our candidates. Another benefit to them? The plan rates – which are paid weekly – have remained unchanged since 2010.
Offering insurance options to our candidates helps attract better and more qualified candidates to fill open positions. The ACA requires us to offer specific plans to maintain compliance, but we also chose to offer the indemnity plan that temporary workers can afford and use. Temporary employees with this health insurance are more likely to recommend their employer to other job seekers and have fewer health related absences, according to the study.
According to the study, more than half of Americans hold less than $1,000 in savings, meaning that one illness or injury could result in significant hardship. Medical benefits rank as the number one job perk that employees are looking for and 69 percent of candidates nationally say they would consider one job over another if the benefits were better. Having the option to enroll in the indemnity insurance helps alleviate financial stress and gives temporary employees an affordable option in addition to the ACA compliant plans that we offer.
Providing this insurance and explaining the options to employees is just one of the many services That’s Good HR provides our clients – saving them time and money. The American Staffing Association states 60% of employers feel overwhelmed with the increased complexity of managing benefits packages and 7 out of 10 employers believe they cannot keep up with the changes. The good news? That’s Good HR isn’t one of them. Give us a call, we’ll take it from here. In your newfound free time, read the full study by ESC.