Staffing
Welcome to week 2 of our industries series. This week, we are discussing staffing agencies. At Evolved Benefits, we provide tremendous help and resources to the companies themselves and the employee benefits advisors that serve them.
At Evolved Benefits, we are the inside sales arm for SBMA, which stands for Staffing Benefits and Administration. SBMA is built on staffing companies first and foremost; we found that it is one industry that's been heavily underserved. This is because most Employee Benefits advisors focus on major medical. They look for groups that can get a lot of participation and have more employees enrolling in the major medical wellness staffing companies. Usually, there's a core group of the office staff that they can put on a major medical plan, but everybody else hasn't figured out how to solve and Evolve Benefits with SBMA have done a great job at providing a solution there.
So now, let's talk about some current statistics in the staffing industry. Right now, there are around 3 million employees per week that are employed by staffing industries across the boards in different industries. There are also 16 million employees staffed throughout the year on an annual basis in America as temporary employees. So what happens with a lot of these companies is they don't understand that they're prey to the employer mandate, which is Penalty A and Penalty B. They're subject to ACA filing reporting, and many of them don't realize that they're out of compliance. Secondly, many of them are looking for a way to be more competitive, especially if they're in a concentrated area with more staffing companies. They need some edge to make them more competitive for their clients.
So, for instance, I drove up to Bakersfield a couple of months ago accompanied by an employee benefits advisor. We sat down with a staffing company, and they had probably one of the greatest problems a staffing company could have. They grew very quickly, and they were about to make a second location a little further up north. Sitting down with them and making a little discovery, we found out that they were out of compliance. Then we talked about the type of health benefits that we can provide, our minimum essential coverage plan coupled with some limited medical plans, and some other worksite benefits that marry up very well and make it affordable for these folks to access quality health care. So the first order of business was getting on the phone with our HCA accounting partner to solve the compliance issue. And then we turned around and enrolled every single one of these folks on one of our plans that they chose the base plan. The feedback I got from the staffing company owners during that first meeting was something that I always say just because I understand how this works, but it means so much more when you see a company say this because the light bulb goes off in their head.
They say, "Hey, you know what? We don't want to offer your minimum central coverage plan. We want to provide your dental, vision, and limited medical plan. We want to go to our clients and say, hey, you know if you send your employees through us, we're going to pay for a health plan, right out of the gate. These folks will have some health coverage. And in the state of California, for instance, the individual mandate is being enforced. So they helped these employees beat the penalty that they would be having for not having health insurance, but they also provided them a better dollar spend for those dollars instead of paying the penalty to the Franchise Tax Board.
So for all you Employee Benefits advisors out there, Evolved Benefits does very well with staffing companies. And if you haven't looked into this industry, give me a call. Let's set up a meeting to discuss certain talk tracks. I've got plenty of case studies from SAP and companies I've been involved in. And of course, I look forward to talking to all of you very soon.