Obamacare to Benefit Contract Employees and Staffing Firms

The Affordable Care Act (ACA, or, informally, “Obamacare”) has ramifications for businesses that will be far-reaching. The ACA will require organizations that employ more than 50 full-time workers to provide health insurance to employees at an affordable rate. If they don’t, these companies will face IRS fines.

The law will likely drive up business costs and reduce profit margins. Thus, many business owners are already cringing.

However, regulatory procedures, like all forces, produce a byproduct. Economists predict that Obamacare will spark a reduced full-time workforce. Some positions may become part-time, to avoid mandatory healthcare costs. One result? Temp and staffing agencies, and the employees who use them, could stand to benefit.

The ACA’s impact will not be unilateral. Large businesses won’t be able to compartmentalize. Medium and small businesses will be the ones grappling with the law’s restrictions.

The American workforce may become like that of many European countries: a large base of temporary employees. These employees will work month-to-month contracts. They will receive few benefits and a smaller base pay.

Only time can provide a full picture of the ACA’s economic impact. With a cut-off rate of 50 full-time employees, the law will affect the very top giants like Google and Apple—as well as small, regional businesses.

The benefit will clearly be for staffing firms. Staffing and placement agencies will do well by turning this climate into a growth opportunity.

If you are a placement agency, begin ramping up your recruitment and marketing efforts. Make your promotional materials and website capture the best benefits of working for your firm. Go after the best and brightest employees.

If you are a job candidate or potentially going to become a part-time contract employee, look for the staffing agencies that have a track record of success. You will be able to choose the firm with the best benefits. Don’t be lured by new, unproven staffing agencies popping up. Go with a winner, and your career will thrive.

 

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