How is the Affordable Care Act Impacting Temporary Staffing?
According to a survey released in October 2013 by PNC Financial Services Group Inc., 78% of the 500 businesses asked said that the Affordable Care Act will not have an impact on hiring plans. For staffing firms, this legislation may mean hiring less independent contractors and more statement-of-work consultants.
One of the biggest concerns among the temporary staffing industry is how to make their benefits package affordable to every employee. For example, some companies can’t see a way to offer a healthcare plan that will be affordable to lower wage workers, such as those earning $8 an hour, which will also be acceptable to higher wage employees, such as engineers making $80,000 per year.
Nondiscrimination rules will prohibit companies from offering richer benefits to higher paid employees. Vice President of strategic solutions for Award Staffing Jerome Gerber says that as a result of this, some staffing firms may be forced to make lower-wage workers 100% temporary.
Many temporary staffing firms feel that there is not enough clarity on the important decisions for their industry surrounding the Affordable Care Act. They know that it’s going to change how they do things, and fear that it is going to add costs one way or another.
The most important factor that your temporary staffing firm clients can share with their candidates is that while the staffing firm is not necessarily required to participate in a healthcare benefits plan (though they will face hefty penalties if they are a medium-large sized business), all workers are required to get insurance. It’s important that your clients as well as their candidates be aware of the changes that are taking place.
World Wide Specialty Programs has always had a singular purpose – to design, develop and provide temporary staffing insurance for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Please contact us today today for more information about our staffing agency insurance solutions at (877) 256-0468.