Are you losing money on your plans?
September, 8th, 2019
Are monthly plans actually costing you more than they should?
At face value, paying monthly might sound like a better option than weekly. After all, it’s one payment versus four or five.
For example, compare car insurance. Typically, if you pay more of your premium at one time versus multiple payments, your cost actually drops. However, this model does not hold true in temp staffing. Why? Because of the high-turnover nature of the industry.
What do monthly plans mean for temp staffing?
When it comes to aggregating plans, weekly payroll deducted plans are the ideal option for the temp staffing industry because they better match the typical lifecycle of a temp staffing relationship. For example, an employee may be on assignment for a few months or a couple weeks, but leave on week two of the month. Here are some questions to consider:
- Who picks up the extra cost if an employee leaves before the end of the month? Pay careful attention to the details of any monthly plans you may have. Who picks up that remaining cost if an employee leaves before the end of the month? Is it you the employer? Is it the employee? Does your provider have a policy in place for this scenario?
- Does your plan require a separate payment method? While it may sound tempting to push the responsibility of payment directly to your employees each month versus weekly payroll deduction, you’re actually doing a disservice to both them and you. Setting up these extra barriers discourages participation, increases your exposure to penalties, and can ultimately incur unnecessary costs to you or your employees.
- Is your provider properly equipped to aggregate your plan? If your provider does not offer weekly payroll deductions for their plans (particularly the MEC), it could be a symptom that they are not equipped to aggregate the plans on a weekly basis. Whatever the case may be—don’t be left holding the bill for something that is your provider’s responsibility.
Start saving with weekly plans.
Since 1992, Benefits in a Card has been serving the temp staffing industry, and we boast a legacy of compassionate service to our clients and their employees. Part of that legacy is helping you develop a benefits strategy that is both affordable and one that works for YOU.
Are your plans costing too much? Are there hidden savings that you can take advantage of? Do you want to increase your plan participation? Contact us to find out how you can implement a winning benefits strategy.