How will the Affordable Care Act Impact the Use of Temporary Employees?

February 7th, 2014

In January 2014, the Affordable Care Act was implemented and it has caused quite a stir within companies of all sizes. The biggest impact was felt within the smaller ones with employee counts around 50+. The legislature mandates that every company with more than 50 employees working full-time will need to offer health insurance or pay a penalty. This means those staff members working more than 30 hours a week will need to be covered with insurance or have their hours reduced to avoid penalties and fees. Due to the idea that most staffing agencies place temporary employees, companies have started to capitalize on the idea of maximizing this type of employment option to save money and avoid the hassle of providing benefits to their full-time team members.

Benefits of the ACA to Temp Employees
The negative impact of the ACA can be felt throughout companies for many of the full-time employees who may have their hours cut-back or they may even be without a job before too long. Uncertainty has become the hurdle these companies have to overcome as the future of their companies is unknown; how will they grow without being forced to increase their healthcare budgets or pay the fines? This is where the use of temporary employees comes into play as these employees can become vital team members and maintain the business momentum without the hassles.

Temp Employees are not Under-Qualified Employees
Most temporary employees understand they are not going to receive benefits such as healthcare, stock options, or even a guaranteed number of weekly hours and they are okay with that fact. Maybe all they need is up to 30 hours a week and they have their own personal health insurance so they make the perfect candidate for any company struggling with the new ACA legislature. In the long-term, each company will benefit from having a dedicated temporary team member, even as a temporary employee. The common misconception of hiring a new team member from a staffing agency is that they may not be as qualified or devoted as someone who is full-time but that is not usually the case. Many of these employees are highly qualified but struggling to find work after a personal move, a company lay-off, or even after a career change but would be an asset to any company.

Increased Hirings
The ACA has increased the hiring of employees from staffing agencies as the company can fill the vacancy without changing their healthcare budgets or being forced to pay penalties. In turn, many of these temporary employees will work the maximum hour allotment and that will allow them to contribute positively to their local economy. The ideal situation for most team members would be a steady 40+ hour work week complete with benefits but with the passing of the ACA, the employment world has changed. Smart staffing and contingent work force companies will capitalize on this and provide highly qualified employees to their clients.

Looking for work in  San Antonio? Pinnacle Workforce provides workforce solutions to healthcare organizations across San Antonio and the surrounding areas. If you have any questions on how our team can positively impact yours, contact us today!

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