Best Benefits at Staffing Firms
August 26, 2019 | Jake Smith, Vice President of Employer Solutions (Central)
People don’t typically associate the phrase “contract worker” with “full-time benefits,” but we do here at Winston. It’s a point of pride for us to offer benefits for all employees, across all industries — including contract workers.
Contract workers fall into a different tax category than regular employees, so benefits have to be configured differently. We help staffing firms strike the perfect balance between provision and portability. High turnover typically prevents staffing firms from offering benefits, since it can complicate administrative activities surrounding termination and hiring practices, but it isn’t impossible.
Here’s how we tailor benefits to meet the needs of all contract employees.
Voluntary Plans Are Key
Not all of your contract workers have to get benefits, but each should be given the option. Contract workers, like any other employees, should have the chance to opt in or out of health coverage. HR teams shouldn’t shy away from offering highly sought after voluntary plans like accident, critical illness and hospital indemnity coverage.
Staffing firms may hesitate to offer benefits because of projected high turnover. Voluntary plans take the financial burden off of the employer and offer employees affordable coverage they wouldn’t be able to access on their own. Furthermore, the addition of a benefits plan puts your firm at a distinct advantage from a retention standpoint.
Turnover rates are typically a staffing firm’s biggest obstacle when selecting benefits coverage. Because your turnover rates are likely above average, it’s critical to select coverage that is portable. This means the contract worker can retain their coverage in the event of severance from the firm. In this instance, the former worker will bear the burden of the cost and will be able to pay the carrier directly thereafter.
This is the best option when offering benefits for contract workers. It can reduce turnover headaches for you, and contract workers get access to coverage they may not otherwise have. We call that a win-win.
Start with Communication
If contract workers know that you offer competitive benefits programs, it will go a long way in helping you recruit the best performers. Let people know that benefits are available across the entire span of their career with your firm — and even beyond that.
Communicate to your existing workers which benefits they qualify for and how they can take advantage of them. We do our part to ease enrollment headaches with our rules-based and eligibility-driven technology. Our intuitive user interface shows employees, contract workers and temps only the specific plans and content that are applicable to them. This makes communicating benefits easier and more effective than ever before.
Disclaimer: This content is strictly informational and should not be used as specific advice on insurance products, legal, accounting, and/or tax related matters. Insureds should always contact the appropriate licensed professional for their insurance, legal, accounting, or tax needs.