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Employers Realizing the Benefits of Temporary Staff in a Nation with Obamacare

It’s safe to say that the majority of Americans are familiar with Obamacare (known formally as the Patient Protection and Affordable Care Act or PPACA), although many are more familiar with the name than with the legislation details.

The element of PPACA that most concerns the nation’s business owners and the staffing industry is the 2014 provision that requires business owners employing at least 50 full-time workers (those who work at least 30 hours per week) to offer health insurance or pay hefty noncompliance fines.  To avoid the expenses inherent in offering health insurance, some businesses have already announced that they plan to cap hiring at 49 workers or even cut workers’ hours to below 30 hours per week.

Many of these companies plan to make up for lost work hours with part-time or full-time temporary workers because the employer mandate clause does not apply to temporary employees.  Another benefit for companies looking to utilize temporary employees is the staffing company must shoulder responsibility for providing health benefits to their W-2 employees.

With these factors in mind, R.A. Cohen Consulting conducted a January 2013 survey aimed at the staffing industry’s thoughts surrounding PPACA.  According to published survey results, 50% of staffing industry companies expect future earnings to increase, and another 32.8% predict profits to remain the same.  In addition, of the staffing industry clients who have spoken to staffing companies regarding future hiring plans, 28.1% said that they plan to increase temporary and contract staff usage due to Obamacare.

Overall, as more and more companies realize the benefits of utilizing temporary staffing, the staffing industry will see an increase in demand due to Obamacare.

About Roth Staffing Companies, L.P.

Roth Staffing Companies is the only large staffing company to receive all of the industry’s most prestigious honors in one year including Staffing Industry Analysts’ “Best Staffing Firms to Work For” and “Best Staffing Firms to Temp/Contract For”, Inavero’s “Best of Staffing® – Client” and “Best of Staffing® – Talent”, and the highest award presented by the American Staffing Association’s VOICE Awards. Roth Staffing remains the only staffing firm ever ranked #1 on the Inc. 500 list of fastest-growing, privately-owned companies.

Roth Staffing is a family of full-service business lines providing temporary, temporary-to-hire, and direct hire placements from more than 100 branch offices and dozens of on-premise locations in 21 states and the District of Columbia: Ultimate Staffing Services specializes in staffing for administrative, clerical, customer service and manufacturing & production positions; Ledgent Finance & Accounting specializes in professional staffing services including the placement of finance and accounting professionals; Ledgent Technology & Engineering specializes in technology and engineering placements; Adams & Martin Group specializes in legal staffing, project management and attorney search; and One Squared Managed Solutions manages MSP and VMS solutions for large contingent workforce programs.

Please visit our website at www.rothstaffing.com for more information or call (714) 939-8600.

 

Resources: R.A. Cohen Consulting