Healthcare

What Makes Temp Employees Stay on the Job Longer?

Greta Cline, CFO
Greta Cline
Partner, CFO/COO
October 5, 2017
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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.

HR Insights

5 Ways Health Benefits Help Your Company

Tiffany Moore headshot.
Tiffany Moore
VP, Client Partnerships
December 15, 2016
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Think health care benefits aren’t excruciatingly important? Think again. A Society for Human Resource Management (SHRM) survey found 95 percent of HR professionals ranked health care as one of the top three benefits for employees. This explains why nearly 20 percent of companies have changed their health benefits in order to retain talent.

So why all of this buzz about health care? With rising health care costs and federal coverage mandates, employees are valuing health care benefits now more than ever as an extension of their income. But the value extends to employers, too. Here are the top five reasons health benefits should matter to you.

1. Talent Recruitment

A business is only as good as its employees—which makes hiring quality workers a top-notch priority. With the competitive job market, the best companies are leveraging health benefits to find the best talent. Not only that, companies are also ensuring future employees understand the value of health benefits. According to the SHRM survey, only 14 percent of HR professionals felt their employees were “very knowledgeable” about their health benefits. Yikes. As your company recruits new talent, it’s important to educate—and woo—your future employee with ins and outs of your health benefit plan.

2. Talent Retention

Hopefully you’ve already hired some awesome employees who do great jobs. Now the trick is to keep these talented gems from leaving for greener grass. This Monster survey found employees rank health care plans as the most important benefit offered by employers. So while having more desirable health plan options might cost you money up front, it can also save you hiring time, money, and headaches in the long haul. 

3. Job Satisfaction

We all appreciate feeling valued—in our families, relationships, and at work. When you offer a high-quality health plan to your employees, they will get the message that your company cares. You’ll hopefully end up with employees who are happier at work and more likely to give you their best.

4. Healthier Employees

The cost of health care has risen dramatically over the years, but companies that offer health benefits make care more affordable and more likely to be taken advantage of. Most solid plans include preventative care, cancer screenings, and reduced prescription costs, giving your employees accessible care when they need it most. 

5. More Productivity

Our productivity at work is closely linked to job satisfaction and health. When our employees feel valued in their job, they tend to care more about the quality of their work and being productive. The same goes for health—a healthy employee is more likely to use fewer sick days and get more done. This increased productivity boosts business and can save your company valuable time and money.

Health benefits are continually becoming critical HR tools for many companies. At TGHR, we provide multiple health care plan options to our employees. Let us take care of your company’s staffing needs, and we take care of providing health care benefits to your temps and temp-to-hire employees, giving you less to worry about—and happier, healthier employees at your place of business. Want to know more? Get in touch today!

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