Only 12% of Staffing Employees Enroll in Employer-Provided Benefits: What's the Cost to Clients?

A staggering 88% of staffing employees choose not to participate in employer-provided benefits programs. This low participation rate isn’t just a statistic—it’s a red flag that highlights deeper issues within the staffing industry and poses significant challenges for businesses relying on a temporary or contingent workforce.

Why Aren’t Staffing Employees Enrolling?

Several factors contribute to the low enrollment rate:

• Cost Barriers: For many staffing employees, the cost of enrolling in employer-provided health insurance is simply too high. Premiums, deductibles, copays, and prescription costs can quickly add up, especially on a tight budget. For workers who are already struggling to make ends meet, the financial burden of paying for healthcare often feels like an impossible choice between essential needs.
• Barriers to Use: Even when employees do enroll in benefits, using them can present additional challenges. Many staffing employees don’t have paid time off, which means that taking time off for a doctor’s appointment could result in lost wages. Furthermore, limited network options may require employees to travel further for care, adding additional strain on time and finances. This can lead to a situation where employees avoid using their benefits altogether because they can’t afford the out-of-pocket costs associated with medical care or don’t have the time to seek it out.
• Knowledge Gaps: Another major issue is that many employees simply don’t understand how to fully utilize their benefits. Without proper education on what their benefits cover and how to access them, employees may be unaware of the value their benefits offer or how to navigate the healthcare system effectively. This lack of understanding further discourages participation, leaving employees unprotected and vulnerable.

The Impact on Workforce Stability and Motivation

The low participation rate in benefits programs has significant repercussions for businesses. When employees lack access to affordable, usable healthcare and other essential benefits, it directly impacts their health, financial stability, and overall well-being. This creates a workforce that is less motivated, less productive, and more likely to experience stress and burnout.

Moreover, the absence of a comprehensive benefits package makes it difficult for businesses to retain top talent. Employees who feel unsupported and undervalued are more likely to seek opportunities elsewhere, leading to high turnover rates and constant recruitment challenges. This cycle of turnover not only increases costs but also disrupts operations and reduces overall efficiency.

For businesses, this means that the foundation of a stable, motivated workforce is severely weakened. Without access to quality benefits, employees are less likely to feel engaged or committed to their roles. The lack of security and support can create a disjointed work environment where employees are focused more on survival than on contributing to the success of the company.

What Can Be Done?

Businesses must rethink how their staffing partners approach employee benefits. It’s not enough to simply offer a plan—benefits must be affordable, accessible, and fully integrated into the employee experience. Education on how to utilize benefits is crucial, as is ensuring that the benefits package aligns with the real needs of the workforce.

By addressing these issues, businesses can build a more stable, motivated workforce that is not only healthier but also more engaged and productive. This, in turn, leads to reduced turnover, lower recruitment costs, and a stronger foundation for long-term success.