SlideShare a Scribd company logo
1 of 11
ESC Updates and State
of the Industry
Presented by: Alan Gilbert
Carrot vs. Stick
DOL: All-Time-High Job Vacancies
6.7MJob openings in United States
January 2018
No Relief in Sight
8.2M
Projected Worker
Shortage by 2027
6.3
Million
2018
8.2
Million
2027
A Baby Boomer Retires
9Every Seconds
April
Unemployment
Rate
3.9%
Lowest since dot
com bubble in 2000
The New York Times
April 5, 2018
Worker Shortage Forcing Restaurants to Get
Creative
Restaurants that can’t increase wages are
• Reimbursing Culinary-School Tuition
• Recruiting Newly-Released Prisoners
• Offering Tequila-Tasting Seminars
• Fast-tracking Promotions
The Washington Post
April 30, 2018
The rise of the blue-collar signing bonus — now up
to $25,000
• BNSF Railway offering $25,000 signing bonus for
electricians, boilermakers and pipefitters
• Blue-collar industries such as construction and security
are giving extra cash to new hires
Wall Street Journal
April 16, 2018
Facing Historic Labor Shortages, Companies Snap
Up Teenagers
Companies are pursuing teenagers more aggressively
• At a Cincinnati high-school machining-skills competition,
27 companies showed up to search for talent
• One Cincinnati high-school junior with machining skills
fielded 13 job offers
Workers Want Benefits
Most Desired Perks – Source: Inavergo & career builder.com
87%
of temps say medical benefits
are their most desired perk
when looking for a position.
Employers Leveraging Fixed Indemnity
ASA Central Live Discussion – How is your company competitive when
unemployment rates are low?
• We do 95% light industrial work … we have been offering benefits to our
contract staff for almost 5 years and have found we are very competitive with
larger/nationwide firms.
• [We offer] insurance through Essential StaffCARE (medical, prescription
dental, vision, STD, Life.)
• We have been pleased with the results. We have had employees bring us
new clients because employee wanted to stay on our payroll [for the benefits].
Retention Data Analyzed
Essential StaffCARE Client Data:
Employees enrolled in the ESC indemnity plan stayed with the temp company
3.6 weeks (47%) longer than those NOT enrolled in ESC
When employees have health coverage, they tend to stay with their
employer longer. This results in fewer resources dedicated to recruiting,
increased efficiency and bottom line savings.
Recruit + Retain = Revenue

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The Works 2018 - Industry Track - Sponsor: Essential StaffCARE

  • 1. ESC Updates and State of the Industry Presented by: Alan Gilbert
  • 3. DOL: All-Time-High Job Vacancies 6.7MJob openings in United States January 2018
  • 4. No Relief in Sight 8.2M Projected Worker Shortage by 2027 6.3 Million 2018 8.2 Million 2027 A Baby Boomer Retires 9Every Seconds April Unemployment Rate 3.9% Lowest since dot com bubble in 2000
  • 5. The New York Times April 5, 2018 Worker Shortage Forcing Restaurants to Get Creative Restaurants that can’t increase wages are • Reimbursing Culinary-School Tuition • Recruiting Newly-Released Prisoners • Offering Tequila-Tasting Seminars • Fast-tracking Promotions
  • 6. The Washington Post April 30, 2018 The rise of the blue-collar signing bonus — now up to $25,000 • BNSF Railway offering $25,000 signing bonus for electricians, boilermakers and pipefitters • Blue-collar industries such as construction and security are giving extra cash to new hires
  • 7. Wall Street Journal April 16, 2018 Facing Historic Labor Shortages, Companies Snap Up Teenagers Companies are pursuing teenagers more aggressively • At a Cincinnati high-school machining-skills competition, 27 companies showed up to search for talent • One Cincinnati high-school junior with machining skills fielded 13 job offers
  • 8. Workers Want Benefits Most Desired Perks – Source: Inavergo & career builder.com 87% of temps say medical benefits are their most desired perk when looking for a position.
  • 9. Employers Leveraging Fixed Indemnity ASA Central Live Discussion – How is your company competitive when unemployment rates are low? • We do 95% light industrial work … we have been offering benefits to our contract staff for almost 5 years and have found we are very competitive with larger/nationwide firms. • [We offer] insurance through Essential StaffCARE (medical, prescription dental, vision, STD, Life.) • We have been pleased with the results. We have had employees bring us new clients because employee wanted to stay on our payroll [for the benefits].
  • 10. Retention Data Analyzed Essential StaffCARE Client Data: Employees enrolled in the ESC indemnity plan stayed with the temp company 3.6 weeks (47%) longer than those NOT enrolled in ESC When employees have health coverage, they tend to stay with their employer longer. This results in fewer resources dedicated to recruiting, increased efficiency and bottom line savings.
  • 11. Recruit + Retain = Revenue