Hiring AdvantageBenefit Perspectives from ESC

Candidates Expect Healthcare -Now What?

The Key to Retention: Value

Recruiting in the“New Normal”

Special Report:Promoting Benefitsto Attract ClientsBuilt-in Advantages that Grow Business

Dear Valued Clients,

We would like to take this opportunity to thank you for your partnership with Essential StaffCARE.

The world is a different place than it was just a few short months ago. The staffing industry went from

searching for candidates to fill an abundance of open positions, to furloughs, pivots and a struggle to

keep client rosters intact. It is difficult to predict the immediate future, but we believe that a return to

normalcy will happen sooner rather than later. In fact, with the uncertainty businesses face, staffing

companies may stand to benefit, as employers proceed with caution in rehiring workers.

Our company was started over 15 years ago and was built with you in mind. We are the leaders in

providing group health benefits to the staffing industry and we reached that goal by understanding

your business, delivering healthcare plans that fit your business model and addressing the needs of

your employees.

Benefits have become the expectation, not merely an afterthought for hourly-wage employees in

America. The pandemic has only served to bolster those attitudes. More than ever, employees are

relying on their employer to provide for the health and well being of themselves and their families.

That’s why we believe it is extremely important for ESC healthcare benefits to be emphatically offered

to all candidates during on-boarding, and current employees during open enrollment. It may be only a

small part of the work you do as a staffing company, but it will result in exponential return in the form

of recruiting and retention power in the hearts and minds of your workers.

Most importantly, we want you to know that we are here for you, to provide support and to answer

questions as we move through this crisis together. We hope you find the articles in this digest insightful

to understanding how benefits help both employers and employees while creating a recurring cycle

of health, positive attitude, morale, loyalty, retention, and value.

We wish you all the best!

Sincerely,The Essential StaffCARE Team

Table of ContentsWorkers Want Benefits

The Financial Realities of Working Americans

Attracting and Keeping Your Best Employees

Understanding the Paradox of Choice

Everyone Benefits with a Healthcare Plan

Protect Yourself with the Safety Net Strategy

Benefits 101: The Basics of Strategic Planning

ESC Clients and Partners Share Their Thoughts

Everyone’s Asking - COVID-19 FAQs

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Study after study has shown employees want healthcare benefits from their employer. In fact, CareerBuilder research reports 87% of employees cite healthcare benefits as the most important component of a job offer after wage. Other studies have proven the connection between healthcare benefits and employee loyalty, positive attitude, increased morale, lower absenteeism, and overall job performance.

Healthcare benefits have long been an important, desired benefit and recent events with the COVID-19 pandemic have only made them more important. In just a few short months, employees who expect

their employers to provide for their health and well being has shot up to over 80% — that’s 4 out of 5 candidates arriving in your office with a preconception that healthcare will be available for themselves and families.

Employers who are able to meet this expectation are winning the hiring battle. Those who don’t emphasize medical benefits are watching prospects leave for the competition. That’s why it is so important to promote healthcare benefits to all candidates and employees. It’s an expectation that is easily met with ESC healthcare products, and will result in recruiting and retention efficiency.

of employees cite healthcare benefits as the most

important component of a job offer after wage

workersWANT

benef ts87

“Our enrollment tripled after switching to ESC. Offering true

health insurance and prescription drug coverage stood out as real

benefits to our associates.”- Melanie J., ESC Client

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A 2019 GoBankingRate.com survey found that 69% of Americans have less than $1,000 in savings, with 44% of Americans having $0 in savings. Startling statistics that were recently confirmed by a report released by CareerBuilder in which 78% of respondents working full-time reported themselves as living “paycheck to paycheck” with 56% of them reporting less than $100 per month left for savings.

Combine those statistics with eHealth’s November 2019 report that states “the average annual deductible for individual

plans is $4,578” and it is easy to see why workers are eager to find employers offering benefits.

With more than half of Americans holding less than $1000 in savings while their healthcare plan deductibles are in the thousands, workers find themselves one illness or injury away from financial ruin. The right employer-sponsored benefits plans are more important than ever, to bridge the gap and provide a safety net for workers who simply can’t afford a setback. 78%

69%

56%Have less than $100 in monthly discretionary income

Have less than $1,000 in savings

Live “paycheck to paycheck”

source: CareerBuilder.com

source: GoBankingRate.com

source: CareerBuilder.com

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As a staffing management professional, you know that employees are the lifeblood of your business. Manpower is your core deliverable, so it is critical that you keep a steady supply of labor resources both working on assignment, and available for new opportunities.Temporary employees, however, can be unpredictable. They can unexpectedly quit their assignment, choose another job with another organization, or simply unavailable when they are called upon. Competition to hire and keep quality workers is fierce and the challenge to manage turnover can be frustrating and unrewarding. Refilling an existing position after an employee departs does not generate incremental revenue, yet it costs a staffing firm time, effort, and overhead.

Therefore, employers are always looking for methods to entice workers to accept an assignment and remain on the job for as long as possible. For ESC clients, a powerful retention tool is already at their fingertips. A key indicator of employee interest, attitude, and longevity is the availability of affordable, effective healthcare benefits. In the most comprehensive study of its kind, an analysis of over a half million hourly-wage employees revealed those enrolled in ESC Indemnity plans stayed with their employer 47% longer, reducing turnover significantly. Increased employee retention saves employers time and money. Offering ESC benefits are a simple way to improve efficiency, attract candidates, and increase retention of your best employees.

“One of my top competitors “One of my top competitors in town started offering in town started offering

ESC benefits so they could ESC benefits so they could compete with me.” compete with me.” Steve M., ESC Client

AttractingKeepingBest Employees

Those enrolled in ESC indemnity plans stayed

with their employer 47% longer on average

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The Paradox of Choice is a theory developed by Professor Barry Schwartz, PhD., demonstrating the human psychology of making decisions. According to the theory, as the number of options grow, the ability to decide shrinks. Professor Schwartz argues that we are all indoctrinated to believe that more choice is always better because more options means there is a better chance that the ‘perfect’ choice exists. In practice, however, an overabundance of choice renders people bewildered and unable to choose. This is called “analysis paralysis” and it has been discovered in everything from buying a car to choosing salad dressing, and even choosing what to wear out of the closet. The Paradox of Choice is not limited to household products and everyday decisions, it extends to benefit selection as well. In a comparative case study between two medium-

sized staffing companies, enrollment rates perfectly illustrate the concept of analysis paralysis. Company A’s workers are overwhelmed by choices and as a result, their selections are spread thin and benefit participation overall decreases. Company B offers an optimal mix of effective and valuable benefits, enabling employees to use their money wisely, which increases enrollment and participation. Low plan participation hurts everyone: employees forgo the election of valuable, usable benefits, and employers miss out on the retention benefits that accompany employee enrollment in an employer-sponsored plan. By offering too many choices, employers are actually fueling the high-turnover situation they are trying to avoid. ESC’s Fixed Indemnity is proven to keep employees on the job 47% longer when they enroll.

UNDERSTANDING THE

Paradox of Choice

C

IDENTITY

TH

E FT

INSURAN

CE

TRANSIT

BEN

EF

IT

F I N A N C I A L

OMMUTE R INSURANCE

extremely low

excellent

Enr

ollm

ent

Rat

e

INDEMNITY

OTHER OFFERINGS

COMPANY A

26 Benefit Choices

COMPANY B

6 Benefit Choices

50%

25%

0%

37%enrollment

2.3%enrollment

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Everyone Benefits

with a

Healthcare Plan

“As a business developer it’s important to have all tools in your bag and ESC has been one of the

most utilized tools that we use to build business.”

– Mark, ESC Client

Refilling vacated positions is an unavoidable reality for every staffing company, but your time is much better spent on tasks other than tending to a revolving door of temporary workers.

When the duration that the average temporary worker stays with your staffing company is increased, the number of times you must refill positions automatically decreases. This not only reduces the number of unbillable hours lost refilling vacated positions, it also increases the amount of staff time available for developing new business and filling other positions.

Likewise, benefits can streamline the recruiting and hiring process as well. Candidates are looking for benefits, so providing valuable, effective healthcare can be the deciding factor in attracting a prospect to your assignment. The less time spent searching for candidates, the more efficient your operation will be.

All of this translates directly into higher gross profit.

When you retain your temporary workers longer, your clients gain the advantage of keeping seasoned employees. This provides your client with better job performance, increasing their satisfaction.

Employees Will:• Be more likely to reach the 90 day temp-to-permanent conversion mark

• Spend less time training

• Have lower unplanned absenteeism

• Show improved productivity and morale

• Be less likely to quit since it means losing their benefits

Essential StaffCARE was designed to provide temporary workers with usable healthcare benefits at an affordable rate. Temporary workers enrolled in Essential StaffCARE enjoy first-dollar benefits with no co-pays or deductible, helping them avoid costly emergency room visits and placing care for things like common colds within reach.

As health-related absences decline, morale improves. Healthy employees are shown to have a better attitude and improved work ethic. In the process, a bond of deeper appreciation and loyalty develops between the temporary worker and your staffing company.

How You Benefit

How Your Clients Benefit

How Your Employees Benefit

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If a new hire had not been offered an opportunity to enroll in an insurance plan that others were offered, and later suffers a medical calamity,

it could result in potential claims of discrimination against the employer.

The recommended ESC process is to offer benef its on-site at the time of job application.

Adherence to this process protects employers by ensuring that every candidate, and subsequent new

hire, receives an offer and elects or declines coverage.

ESC’s best practice of mandating that all job applicants elect or decline coverage at time of on-boarding protects the employer

from eligibil ity errors and potential discrimination claims - this is our “Safety Net” Strategy, and it has saved our clients mill ions of dollars

when defending against tax notices, penalties, and legal action.

Protecting Yourself

Safety Net

with the

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“With Essential StaffCARE, I do not have to worry. With all the changes in

healthcare going on, I can count on the expertise and quality service that comes

with the Essential StaffCARE plans.”

John B., ESC Client

Discover Solutions That Will:

The onset and continued spread of the Coronavirus (COVID-19) is causing employers to take a closer look at their

insurance protocols and many of them are asking the same questions. Our helpful video tutorial provides a step-by-step guide explaining

how the right benefits package can address the most common and fundamental issues staffing companies face today.

Cut Costs

MinimizeTax

Exposure

Attract & Retain

Employees

www.essentialstaffcare.com/common-questions

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Sometimes when a company delivers a terrific product along

with great service it can be easy to take them for granted and assume that anyone can do the same thing. That’s

what we thought a few years ago when we switched from Essential StaffCARE to a lower cost provider. We could not have been more wrong! The difference was apparent from the very beginning, and the lack of efficiency and support

ended up costing more than the savings we were chasing. We came back to ESC

and recommend them to any staffing company looking for a great partner

in benefits administration.

Susan Larkin | Vice President | Allied Personnel Services

I am one of the largest employers by a Woman Owned Business in Delaware and have been in business for nearly 30 years.

Without the insurance offered by Essential StaffCARE, I would be out of business due the Affordable Healthcare Act! My employees

say the insurance is excellent and I have not had one complaint about coverage in all the years with Essential StaffCARE.

Melissa Joseph, CPC | President | Delmarva Temporary Staffing

Just wanted to let you know that we really appreciate working with you all. ESC makes this whole process so effortless

from our end. Everything seems to work like clockwork. The open enrollments are so easy too. We have been with you guys 3 of the last 4 years. We moved to another company the second year and you could tell it was not their core business.

We couldn’t wait to move back underneath ESC. You all really this down and we appreciate it!

Colleen Leeman | President | Sterling Personnel

As a long-time ASA corporate partner, Essential StaffCARE enjoys the highest level of industry

recognition, support, and visibility the association can confer. In the new health insurance environment, in which employees no longer have to

maintain health coverage, ESC continues its leadership by not only offering a range of plan options that satisfy the ACA employer mandate, but also by offering plans that appeal to the temporary employees who do not want or need full ACA coverage. ESC has been an invaluable technical resource to

the association and industry on all of the complex insurance issues.

Ed Lenz, ASA Senior Counsel

ESC Clients & Partners Share Their Thoughts

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Everyone’s Asking: COVID-19 FAQs

Is testing for COVID-19 covered under the ESC 5500 (Bronze) Major Medical Plan?

Yes: For employees who are insured under the ESC Bronze Major Medical plan, physician’s office visits and lab work related to the diagnosis of the COVID-19 virus will be covered at 100%. No co-pays / co-insurance or deductible will be required.

Is testing for COVID-19 covered under the Fixed Indemnity Medical Plan?

Yes: For employees who are enrolled in the Essential StaffCARE Fixed Indemnity Medical Plan, benefits will be paid for physician’s office visits, testing and lab work related to the diagnosis of the COVID-19 virus. A flat dollar amount will be paid per day based upon the ESC outpatient medical benefit schedule for your specific plan.

Is testing for COVID-19 covered under my self-funded Minimum Essential Coverage (MEC) Plan?

Yes: To comply with the requirements set forth by the Families First Coronavirus Response Act, signed into law March 18, 2020, MEC plans will cover diagnostic testing and related service visit(s) in regard to COVID-19. Treatment of the virus is

not covered under Minimum Essential Coverage Wellness and Preventative Plans. If you have specific questions about coverage and your specific plan please contact ESC Customer Service at: 1-866-798-0803.

Will Short-Term Disability cover work missed due to COVID-19?

Yes: Medically diagnosed illnesses including COVID-19 are covered under the ESC Short-Term Disability benefit. However, employees who self-diagnose or self-quarantine without a medical diagnosis, will not be covered by the ESC STD benefit.Workers who are forced to quarantine because of employer, city, state or federal mandates, but have not tested positive for the COVID-19 virus themselves, will not qualify for the short-term disability benefit. The federal government is contemplating a number of different potential remedies to address the unprecedented financial impact of the COVID-19 pandemic, including expanded unemployment and welfare benefits.

Workers who are temporarily laid off should contact their state unemployment insurance department and monitor potential federal assistance programs that are in development.

Does your administrator have an appropriate business continuity plan?

Yes: As a wholly-owned subsidiary of Blue Cross Blue Shield of South Carolina (BCBS), our administrator, Planned Administrators Inc. (PAI), has a comprehensive emergency response plan in place as well as a business continuity plan that includes a secure, HIPAA-compliant telework protocol to ensure the highest level of customer service and information security.BCBS of SC provides PAI with the highest level of customer service training and data security oversight.

Is your administrator able to manage increased call volumes related to additional claims activity?

Yes: The Essential StaffCARE Customer Service Call Center was designed with the scalability to quickly expand with highly-trained claims specialists to accommodate any anticipated increase in call volume.

Is my employee covered during an absence or time without an assignment?

Yes: The ESC Fixed Indemnity Medical Plan includes a missed premium accommodation of up to six weeks allowing enrolled employees to make up missed premiums directly with our administrator, Planned Administrators, Inc.After six weeks without a premium payroll deduction, the employee’s Essential StaffCARE group coverage will terminate and the employee will receive a COBRA offer letter sent to their home address.The employee will be able to continue ESC coverage under COBRA at no more than 2% above their Essential StaffCARE group policy premium. If the employee returns to work, they can then re-enroll in payroll deducted coverage.

What if an employee’s assignment is suspended or eliminated due to a business shutdown from COVID-19?

If an employee is off assignment and not receiving a paycheck, the missed premium protocol will remain in effect. Employees can make direct payments for up to six weeks of coverage and retain their policy. After six weeks they will be able to continue coverage through enrollment under COBRA if they so elect.

For a Deep Dive into COVID-19 testing as it relates to our Bronze Major Medical, Fixed Indemnity, and MEC health plans,

as well as the ESC Short-Term Disability benefit plan and to review the ESC “missed premium” feature, view a brief video

that is posted on our Coronavirus Advisory Information webpage.

www.essentialstaffcare.com/news/covid-19

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