Key Takeaways
- Partnering with staffing agencies that offer comprehensive benefits gives companies a competitive edge in the freelance market. It demonstrates a commitment to freelancers' well-being, which can enhance morale, loyalty, and productivity.
- Offering attractive benefits can entice freelancers who may have previously dismissed contract work. This expands the potential talent pool, increasing the likelihood of finding skilled professionals suited to specific business needs.
- Benefits are a critical factor in freelancer retention. Access to benefits can help freelancers focus on their work without worrying about future employment, thereby protecting workflow, productivity, and ROI.
When you engage freelancers through a staffing agency, it's easy to assume benefits are handled. You might think freelancers get coverage through a partner or resourcefully piece together their own plans. And staffing agencies often tout the benefits they offer freelancers—it's part of what you're paying for as a client, right?
However, the reality is many staffing agencies don't offer quality benefits. This leaves freelancers in a tough spot, as securing coverage independently can be challenging and expensive. In fact, almost half of U.S. contract workers say it's hard to get health insurance as a freelancer, and their need for benefits goes beyond just health care. Research shows that 67% of contractors view the lack of retirement plans and other benefits as a major drawback of freelance work.
Even though freelancers might not always have access to these benefits, they still deeply value them. According to a recent survey of U.S. employees, more than 80% believe an employer's benefits package influences whether or not they accept a job offer.
This is where your company can make a real difference. By partnering with a staffing agency that invests in freelancer benefits, you gain a competitive edge in attracting and retaining top talent. You demonstrate a commitment to the well-being of your extended workforce, which boosts morale and loyalty. Ultimately, access to benefits leads to happier, more secure freelancers who deliver higher-quality work and increased productivity.
How benefits help attract talent
Even when partnering with a staffing agency, securing top freelance talent remains competitive. Freelancers are evaluating multiple opportunities, just like traditional employees. By partnering with an agency that goes above and beyond on benefits, you're ensuring your freelance roles stand out from the competition and appeal to top-tier candidates.
Offering competitive benefits also broadens your potential talent pool. Freelancers who might have previously dismissed contract work due to the lack of benefits are more likely to reconsider when they see a comprehensive package offered. This opens doors to a wider range of skilled professionals, increasing your chances of finding the perfect fit for your needs.
Featuring benefits in job postings helps broaden your talent pool, capturing the attention of entirely new groups of candidates.
Why benefits aid in retention
Onboarding a new freelancer only to have them leave soon after can disrupt your workflow and hurt your bottom line. Research shows many workers accept freelance positions but can easily be drawn back to full-time, permanent jobs.
In fact, nearly two-thirds report preferring steady, full-time employment. Over half also say they would take a temporary position as a means to find permanent work or to support themselves while seeking a stable position. This suggests that many freelance workers start new roles with one foot out the door.
Additionally, 42% of freelancers say that access to benefits, like health care and life insurance, would be a strong incentive to return to traditional employment. By addressing freelancers' challenges around benefits, you can help them stay focused, worry less about future positions, and be more engaged in their work—ultimately protecting productivity and ROI.
When you solve freelancers' challenges around benefits, you allow them to be present in their work, focused, and less worried about landing their next position.
How benefits promote diversity, equity, and inclusion
Many companies prioritize diversity recruiting, but not offering benefits can unintentionally work against these efforts. Without benefits, you may exclude entire groups of candidates. For example, a single parent may need family health and dental coverage, a dependent care flexible spending account, and flexible work options to balance work and family obligations. A candidate with disabilities may rely on a medical plan with in-network and out-of-network coverage and a health care flexible spending account for their ongoing needs.
More than half (53%) of surveyed gig workers say that freelancing has hurt their access to retirement and savings plans, like 401(k)s and other retirement options. This may deter older generations, who are often focused on retirement planning.
Offering benefits can also attract candidates who prioritize wellness and might otherwise pass on contract roles. Millennials, known as the “wellness generation,” place a high value on health and well-being—and they're also the largest working generation.
Supporting freelancer well-being
A recent MetLife study, Maximizing Employee Care: Opportunities for Enhancing Care Delivery Across the Employee Experience, uncovered a gap between how employers and employees view workplace care. While 88% of employers believe they show care for their employees, only 60% of employees agree.
This study highlights that many organizations create positive experiences around milestones like onboarding, work anniversaries, and promotions, as well as significant life events like having a child. However, they often overlook less common but deeply challenging situations, such as caring for an ill family member or going through a divorce. These situations greatly influence employees' sense of feeling cared for.
Even though freelancers aren't traditional employees, giving them access to resources and support for unexpected life events can help them feel valued and appreciated at work. For example, guaranteed paid sick leave can help freelancers care for themselves and their families, supplemental insurance plans can ease the financial burden that often comes with sudden illness or injury, and robust mental health benefits can help folks cope with difficult times.
When employers provide resources for freelancers facing personal challenges, like caring for a child with a chronic health condition, they help them feel supported and valued.
Understanding the benefits offered by your staffing agency partners
So, how can you be sure your staffing agency is truly prioritizing the needs of its freelancers? Don't just assume. Ask the right questions to ensure your staffing agency partner aligns with your values and commitment to freelancer well-being. Here are a few key questions to get you started:
- What specific benefits do you offer to your freelancers? Go beyond just health insurance. Inquire about retirement plans, paid sick time, flexible spending accounts, mental health support, and other benefit options.
- What are the eligibility criteria for freelancers to access these benefits? Dig into any requirements related to hours worked or assignment length.
- How do you communicate benefits information to freelancers? Ensure the agency has a clear and accessible process for onboarding freelancers and explaining their benefits options.
- What is your process for handling freelancer questions and concerns about benefits? Look for an agency with responsive and dedicated support for freelancers.
- How do you measure freelancer satisfaction with the benefits offered? A good agency will actively seek feedback and strive for continuous improvement.
By asking these questions and engaging in open dialogue with potential staffing agency partners, you can make informed decisions that support your freelance workforce and contribute to a thriving business.
Ready to offer your freelancers the benefits they deserve? Discover how Aquent provides comprehensive benefits packages to attract and retain top freelance talent. Partner with Aquent today and ensure your freelancers are supported, happy, and productive!
