I haven't seen anything that will automatically create a MySite for everyone, you would need to write some custom code that cycles through the profiles and creates sites for the people who meet your criteria.
With that said, you still have the permissions issue. It is the permissions that ultimately decide who can create a site. This is part of the "Personalization services permissions"
You will need to remove the NT Authority\Authenticated Users and specify the users that can have a site (i.e. the staff)
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