According to a few new reports, most American workers cannot support themselves financially to feel comfortable. It’s no secret that most Americans are struggling to make ends meet. Statistics on the issue vary, but some reports say that as many as 60% of people are financially insecure. Inflation, unemployment, and economic decline all play a part in this problem, but low wages are likely the biggest culprit. Indeed, the minimum wage has been stagnant for over a decade, and employers have little incentive to pay more than they have to. What does this mean for staffing agencies?
Workers Cannot Support Themselves: How to Fix the Issue
Staffing agencies must strategize new ways to meet their staff members’ needs and ensure that workers have the resources they need to survive.
Boost Wages
Raising wages is the most apparent solution to workers’ financial struggles. Studies show that when pay goes up, so does their quality of life. It’s unfortunately true, though, that many staffing agencies don’t have space in the budget to raise wages across the board. Rather than offering a uniformly higher salary, agencies may consider offering graduated raises to staff members who have spent a lot of time with the agency. It incentivizes worker loyalty and reduces the strain on the budget that an immediate raise would impose.
Offer Bonuses
Another way to pad paychecks is by offering bonuses to workers. These bonuses can be performance-based to motivate staff members to meet and exceed expectations. A bonus for consistent attendance, for example, will likely reduce call-outs. Similarly, a bonus for employees who receive positive feedback will motivate workers to excel while on the job. When establishing a program like this, clear criteria should be identified and communicated to all employees, so they know how to earn their bonus.
Provide Benefits
Benefits such as health insurance can also massively relieve financial stress for staff members. It is especially true for employees of staffing agencies who may have sporadic paychecks. If a medical emergency were to occur, the financial stress might worsen because of a lack of insurance. Agencies that employ full-time, permanent employees should consider offering health benefits
as a way to alleviate monetary stress.
Improve Conditions
Low wages and a lack of insurance aren’t the only problems contributing to financial insecurity. Job hopping due to dissatisfaction may compromise workers’ ability to support themselves. To address this, agencies should work to improve working conditions. Poor working conditions — especially unsafe conditions — are a significant liability. Staffing professional liability insurance often does not cover these issues. But what does professional liability insurance cover? Liability coverage for staffing firms typically covers risks that emerge throughout the hiring process. Agencies must be careful to protect workers by maintaining legal hiring practices, ensuring safe working conditions, and offering fair wages.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.