Staffing firms face complex challenges which can be further complicated by ever-changing ACA requirements, minimal benefit administration expertise, high turnover of trained staff, a lack of IT resources to manage file feeds and uploads.
Is the burden of employee turnover, ACA compliance, and the challenge to attract and retain talent impacting your bottom line?
EmployerAdvantage offers solutions to the toughest challenges faced by staffing agencies. We provide automated ACA benefits administration, onboarding, and compliance – at no cost to you.
Challenge 1: Administrative Complexity Leads to Risk
Staffing firms face complex challenges which can be further complicated by ever-changing ACA requirements, minimal benefit administration expertise, high turnover of trained staff, a lack of IT resources to manage file feeds and uploads.
As a result, staffing firms may fail to terminate employees from coverage in a timely manner, which exposes them to claim liabilities.
Challenge 2: Compliance
To be ACA-compliant, employers must be able to prove they’ve offered coverage to 95% of eligible employees. Unfortunately, most current systems depend on manual processes and paper.
Many staffing employees are not up to date on ACA requirements, ERISA, and other HR requirements. In fact, many staffing employees don’t fully understand their role, the role of the employee, or the role of the insurer. This puts staffing firms and the owners’ personal assets at risk.
With a 5% margin of error, this is a huge risk.
Challenge 3: Cost
Staffing firms typically have thin profit margins and work in highly competitive niche markets. Managing cost is extremely important. Many staffing firms have realized the ACA can be a profit center. They want to protect and improve their revenue. Changes to the ACA present a threat to this opportunity.
An unintentional expense staffing firms face results from their reluctance to add permanent staff to help manage the ACA. As a result, staffing agencies bear the risk of missed employee premiums and medical claims, especially for those enrolled in an MVP plan. In addition, claims for spouses enrolled in an MVP plan pose an especially large and unmanaged risk.
Challenge 4: Talent Acquisition and Retention
The greatest challenge the staffing industry faces is talent acquisition. Staffing firms may not realize the role that employee benefits, communication of those benefits, and the value of a positive work culture play in attracting/retaining talent.
Benefits are a key factor in finding quality candidates and retaining talented employees. This value proposition must be communicated to candidates and employees alike. Data shows the onboarding process is critical to employee engagement and the quality of the employee/employer relationship.
Staffing firms have added employee benefits without realizing they are employee benefits. The staffing firms’ perspective is they added these products to be ACA compliant and they need to be compliant at the lowest cost possible. The issue is much larger than that.
The 4 major concerns when talking to staffing firms about the ACA are administration, compliance, cost, and talent acquisition. All of these challenges create unnecessary risk. EmployerAdvantage turns risk into opportunity.
