Key Takeaways
- Freelancers often struggle to access quality benefits, so it's important to choose a staffing agency that provides comprehensive packages.
- Quick eligibility for health benefits and flexibility in maintaining them is key to freelancer satisfaction and continuity of care.
- A staffing agency that offers additional benefits like dental insurance, FSAs, and retirement plans can make your freelance opportunities more attractive and competitive.
Do you offer benefits to freelancers? It's a question you might ask when talking to a potential staffing agency. And while it's important, it only scratches the surface of what you really need to know about benefits.
Many of us have experienced firsthand that not all benefits packages are created equal. You might have medical coverage but still face thousands in out-of-pocket costs because of a high deductible.
For freelancers, access to quality benefits can be even harder to come by. Nearly half of contract workers report struggling to get health insurance. That's why the real question isn't just, Do you offer benefits? Instead, it should be followed by:
What do those benefits include?
When you start digging deeper, here are seven questions to ask employment agency representatives to fully understand their benefits packages.
1. How quickly do freelancers become eligible for health insurance?
When discussing health coverage with a prospective agency, be sure to ask about the time frames for freelancers to become eligible for benefits. Some agencies require contractors to work for several months or meet a specific number of weekly hours before qualifying.
Quick access to medical benefits is important for continuity of care, especially for freelancers managing ongoing medical issues or treatments. Lower weekly hour requirements can also be critical, as many freelancers juggle multiple contracts. For example, a freelancer might balance two 20-hour-per-week roles.
While some talent agencies require 30 or 40 weekly hours to maintain benefits, Aquent requires only 20, recognizing the need for flexibility. This approach supports freelancers in achieving work-life balance, allowing them to spend more time with family, explore other interests, or pursue passion projects without sacrificing access to benefits.
Quick access to medical benefits is critical for freelancers, especially those juggling multiple contracts.
2. What are the sick leave policies in place for freelancers?
Without paid sick leave, freelancers may push through work while feeling unwell, leading to fatigue and reduced focus. Paid sick leave allows your contractors to rest, recover, and return to work at full capacity.
This benefit also helps freelancers care for a sick child or family member without the added stress of having to choose between work and family responsibilities.
When discussing benefits with your agency partner, ask about sick leave options and confirm they comply with local and state regulations. Many companies only provide sick leave where required by law, but Aquent goes beyond compliance by offering this benefit even in locations where it's not mandated. Ensure your partner meets or exceeds standards to support freelancer well-being.
3. What type of health insurance plans are available to freelancers?
Many freelancers know the frustration of having health benefits but still struggling to afford care. When evaluating an agency partner, look for plans that go beyond basic preventive care. While preventive benefits are important, what happens when a freelancer needs follow-up treatment or specialist visits?
Quality health insurance should cover a wide range of services to meet diverse health needs. Ask if the plans meet or exceed the minimum value standard, typically equivalent to a bronze-level plan under the Affordable Care Act. Aquent offers two platinum-level plans and one gold-level plan, providing even greater coverage options for freelancers.
Pay close attention to details such as deductibles and out-of-pocket costs. High deductibles can pose significant barriers to care—for instance, a $5,000 deductible means steep up-front costs. Attention to these details helps freelancers avoid a situation where they avoid or delay care because they can't afford it.
Paying attention to details like deductibles and out-of-pocket costs helps freelancers avoid delaying care due to affordability concerns.
4. What flexible spending account options are offered?
Flexible spending accounts (FSAs) provide freelancers with tax advantages while helping them manage a variety of qualifying expenses. Common options include health care FSAs for medical costs, dependent care FSAs for childcare expenses, and transit FSAs for commuting costs.
These accounts allow freelancers to set aside pre-tax dollars for eligible expenses, saving money throughout the year. For instance, a health care FSA covers out-of-pocket costs like co-payments, deductibles, and prescription and over-the-counter medications. Meanwhile, a dependent care FSA can help with daycare, preschool, and summer camp expenses. Additionally, a transit FSA is an important benefit, offering parking and transit benefits for commuters. Ideally, a great benefits package will include all three.
5. What retirement plan options are available to freelancers?
When evaluating agency partners, ask if they offer a 401(k) plan and how quickly freelancers can enroll. Be sure to inquire about employer matching contributions and vesting schedules.
Some agencies provide immediate vesting, while others use a tiered schedule. For example, a contractor might need to wait three years to be fully vested—less than ideal for freelancers with shorter assignments. A 100% vesting schedule from the start is a major benefit for freelancers, particularly those in temporary roles.
Additionally, find out how soon freelancers can start contributing to the plan. Can they enroll immediately, or is there a waiting period? At Aquent, freelancers can begin contributing as early as the month after their hire date, with no minimum-hour requirements to qualify and with access to employer matching.
A 100% vesting schedule from the start is a major benefit for freelancers, especially those in shorter-term roles.
6. How does the onboarding process work for freelancers?
How benefits are communicated and understood by freelancers directly impacts their perceived value. Your staffing agency should make it simple for contractors to understand their benefits packages and feel confident in the process.
Ask agencies how they communicate benefits and ensure the process is easy for freelancers to manage. A user-friendly platform paired with clear instructions can significantly enhance a freelancer's experience and satisfaction with their benefits.
A strong onboarding process should include an initial overview of available benefits, followed by timely reminders and detailed guidance as freelancers become eligible for specific programs.
7. What additional benefits should we consider?
Health care insurance, paid sick leave, FSAs, and retirement plans are all important parts of a comprehensive benefits package. However, additional offerings can significantly improve the package's value for freelancers.
Ask about dental insurance options and coverage limits. Does the plan provide a $500, $1,000, or $2,000 limit? Does it include orthodontia? Dental care is expensive, so understanding these details is critical to evaluating a plan's true value for freelancers.
Inquire about financial wellness programs, such as financial coaching or educational resources, to help freelancers manage their finances. Additionally, explore employee assistance programs that offer support, such as emotional support, legal advice, or assistance after a disaster or crisis, to help freelancers facing personal challenges.
Benefits' positive impact on freelancer retention and satisfaction
When considering staffing agencies to help you attract top talent, make sure they're doing everything they can to appeal to your ideal candidate.
Asking deeper questions about staffing agency employee benefits and what an agency offers can give you an edge when a candidate is deciding between your opportunity and a similar one with lower-quality benefits.
Are you curious about how benefits help you engage top talent? Check out our recent article that breaks down the impact they make.
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