Employer Challenges


“We were attempting to navigate the waters of the ever-evolving Affordable Health Care Act. My company, Human Technologies, Inc., went from offering comprehensive medical to about 300 employees to being required to provide it to over 2,000 each month. As we waded our way through this process for the first year, gaining lessons learned and new methods, we knew we needed some additional assistance. This team made the entire transition process seamless. Our internal timeframe was frenzied, frustrating, and challenging. However, each step of the way showed us what a fantastic partnership we could have with them. Our group was more easily able to maintain auto-enrollment through the BenefitElect system. This process allowed us to ensure compliance with the rapidly changing laws while allowing our employees to have a healthcare plan when they forgot to sign up for themselves. We went from paper forms for every employee who started (over 10,000!) to online and over the phone elections. Our internal team went from looking at individually completed documents to completely customized reporting that we could pull at any given time. The difference was phenomenal. We have not looked back, and we don’t want to. We appreciate the automation of the system, coupled with the personal touch they provide. We have developed a fantastic partnership with this company. We are excited to see what innovative solutions they will come up with next.”

Megan Hoover, Team Lead, Compensation and Benefits, Human Technologies, Inc.

Auto-Enroll has been a great program for our organization. It has saved us from the ACA penalty and kept us compliant with the regulations set forth by the ACA. It can be difficult to prove to that you complied with the numerous regulations under the ACA, with auto-enrolling employees, we have ensured that we stay compliant and prevent any possible negative repercussions. Auto-enroll is a great tool and our providers and BenefitElect make it extremely easy to navigate. The process is simplistic and takes up almost no time on our end to accomplish. BenefitElect has created an extremely helpful management process for auto-enroll. I am truly glad we have BenefitElect as our benefit administrator to help us navigate the auto-enroll process for all of our employees.

Americo Teran, Assistant Manager of HR, Forge Industrial Staffing

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.

Find out how you can get the Advantage

Chris Lonergan
(541) 323-1211