The staffing industry sits in a zone of compliance scrutiny, compressed margins, and an increasingly competitive talent market. Yet one of the most overlooked levers affecting both profit and the employee experience is something far less flashy than AI or automation: how benefits are packaged and delivered.
For years, staffing firms have relied on benefit structures where employees must enroll in a Fixed Indemnity Medical plan before they can access any additional benefits such as dental, vision, life, or disability. Even more limiting, the coverage tier selected for the indemnity plan must be identical across all add-on benefits (Employee, Employee + Child, Employee + Spouse, or Family).
This isn’t marketed as a bundle — but functionally, it behaves like one. And it creates two major issues.
1. Bundled benefit structures limit worker choice
Employees often end up paying for coverage they neither want nor use. In staffing, a temporary or contract worker may be defaulted into an expensive tier simply because every add-on must match the tier of the Fixed Indemnity plan.
During a recent webinar, several attendees shared that their workers feel forced into coverage rather than choosing what fits their reality.
A structural flaw that instantly prices out 40% of your workforce
Roughly 40% of workers who walk into a staffing firm are already insured elsewhere — through Medicaid, a spouse’s plan, or another household medical arrangement. Those workers may only want a stand-alone benefit such as dental, vision, life, or even an option like FreeRX.com.
The enrollment structure requires:
- Step 1: Enroll in the Fixed Indemnity Medical plan
- Step 2: Choose a coverage tier (Employee, Employee + Child, Employee + Spouse, Family)
- Step 3: Any optional benefits must adopt the identical tier as the Fixed Indemnity selection
This means:
- A worker who only needs dental for one child is forced into Employee + Child Fixed Indemnity Medical, even if they do not want or need medical coverage at all.
- A worker who only wants vision for one dependent must buy full-tier indemnity first, and then the vision tier must match it.
The result? Nearly half of your potential benefits population is eliminated at enrollment — not because they aren’t interested, but because the structure gives them no affordable entry point.
This isn’t a participation problem. It’s a design problem — and the design is the issue.
2. Bundled benefit structures inflate cost without increasing value
Once benefits are locked together by tier, employers lose visibility into which components workers actually use or value. In staffing — where assignment lengths, pay rates, and turnover shift daily — this rigid structure rarely matches workforce needs.
Because every plan must match the Fixed Indemnity tier, weekly deductions escalate quickly. This lowers perceived value, increases the likelihood that workers decline benefits altogether, and often pushes them toward assignments with firms offering simpler, more flexible options.
Why unbundled plans outperform bundled structures in staffing environments
Unbundled plans take a fundamentally different approach:
- Employees choose only what they want.
- Nothing is forced.
- Nothing is tied.
- Nothing is required to match a medical tier.
Staffing firms eliminate the cost creep of bundled tiers and offer benefits built around real workforce demand.
This mirrors real workforce behavior:
- Some choose only preventive care.
- Some prioritize low-cost access to primary or urgent care.
- Some want prescription savings or a stand-alone dental plan.
- Others want a mix — but not a prepackaged bundle tied to a medical plan.
As discussed in the recent webinar, unbundling creates real control, real transparency, and real value — all through 100% employee payroll deduction, with no employer contribution required.
Unbundled structures offer a level of choice and predictability that bundled systems simply cannot match.
Why Benefits in a Card was built differently
Benefits in a Card (BIC) was built exclusively for the staffing industry.
- Not adjacent to it.
- Not adapted for it.
- Built for staffing from day one.
Staffing firms face complexities no other sector navigates:
- Week-to-week hour fluctuations
- High turnover
- Multi-state compliance requirements
- Wide variations in pay rates
- A workforce with urgent—not elective—care needs
Our benefits model was designed specifically for these realities.
Two pillars differentiate BIC
- True unbundling designed for staffing workers
Employees select their desired coverage without being forced into a bundle. They aren’t upsold. They aren’t auto-enrolled. Every dollar aligns with their real needs and budget.
This is the “true freedom of choice” model highlighted during our StaffingHub webinar — workers pick only what fits their reality, nothing more.
- Pricing models built around staffing margins
Because BIC does not repackage retail medical plans or tie benefits together by tier, our structure remains lean, transparent, and predictable.
This results in:
- Lower weekly deductions
- Higher perceived value
- Stronger participation and retention
- More predictable affordability calculations
What we see every day
A recent prospective client saw immediately how restrictive their tier-locked model had been. Employees were overpaying — and many weren’t enrolling at all — because every additional benefit was tied to the same Fixed Indemnity tier.
The pricing gap caught the employer off guard, but it clearly highlighted how much unnecessary cost they had been carrying. Those inflated rates were a product of the carrier’s tier-based pricing structure — cost with no corresponding value.
Unbundling significantly reduces that impact.
Prioritizing transparency: The 30-day notice
One of the clearest indicators of a benefits partner’s alignment with staffing firms is the simplicity of their contract terms.
At BIC, our agreements are straightforward: If you choose to leave, you give a 30-day notice. That’s it.
We always encourage staffing firms to review their existing benefits contract. If a provider requires long notice periods or restrictive termination clauses, it’s usually a sign their model is built to protect their profit — not your operational flexibility.
Market dynamics: What staffing executives should prioritize
As staffing leaders evaluate benefit strategies for 2025 and beyond, these questions matter most:
- Does the plan offer benefits workers can actually use at their wage level?
- Is the plan flexible enough across different pay rates and job types?
- Can employees select only what they want — or is it tied to a forced structure?
- Does the provider network reflect where staffing employees actually seek care?
- Does the benefits partner understand staffing’s operational reality?
The bottom line
Many staffing workers struggle to afford tier-locked benefit structures marketed as “bundles.” Your firm doesn’t benefit from inflated premiums that strain margins or limit participation.
Unbundled benefit structures offer a more aligned, modern, and workforce-appropriate approach for staffing firms.
These are the most common results staffing firms cite when adopting unbundled structures:
- Higher participation
- Stronger retention
- Lower employer cost
- More predictable affordability outcomes
- Higher profit per placement
Interested in what a true unbundled model would look like for your workforce?
We’d love to walk you through it. Reach out to us anytime. [email protected] | [email protected] | www.benefitsinacard.com
