Staffing Case Study

Challenge: A product manufacturer had always wanted to offer medical benefits to his regular employees, primarily the key employees who had helped him establish and grow his company. The company had grown to a point to where a large portion of the regular employee base were made up of entry level production positions and the turnover within those positions was significant. As such, the company could never achieve the 75% participation level needed to obtain a medical policy for the company.

This issue made it difficult to recruit and retain the best people within the industry. Since benefits were not offered as a part of the hiring package, the company had a difficult time competing for top candidates with the industry for the experience desired.

Solution: Leverage Workforce Outsourcing’s Client Payroll Services program. By transferring the low pay/high turnover production positions onto the Workforce staffing payroll, the client company’s regular employee base became smaller. Those who remained on the client’s payroll were the key production personnel and clerical employees. At that point, it was easy to obtain the 75% participation requirement needed to acquire a competitive medical insurance policy.

By establishing a strategic “Staffing” relationship with Workforce Outsourcing, the company was able to realize the following results:

• Obtain a comprehensive health and medical plan for their "Regular Employees."
• Retain the top employees preventing the major competition from recruiting them away.
• Attract top candidates for key open positions since the full compensation package was much more comprehensive. The company was now able to compete with the much larger major companies within the industry.
• Productivity increased since turnover within the higher performing regular employee base was significantly reduced.
• Unemployment costs dropped resulting in the company’s SUTA rate dropping to a nominal rate.