In 2010, the Affordable Care Act or ACA went into effect across the USA to provide employees with health care insurance coverage options. As part of an initiative to boost the health and wellness of the average American, so far the ACA has enrolled millions of hard working people into qualified health care plans. Yet, there are some concerns that the ACA may be having a negative effect on the job market as employers look for ways to cut costs by reducing workforce numbers.
How the ACA Affects Hiring Trends in the USA
One concern is that the ACA has resulted in fewer employers hiring temp and full time workers because of the new requirement to provide health care coverage for all full timers (for employers with 100 or more employees). A trend that is happening across the nation is employers who are offering more part time assignments to avoid having to pay already astronomical health insurance premiums. While there have been a few workforce studies indicating a slight dip in the number of full time hires for last year, this fear is unwarranted at this time.
ACA Good for Full Time Temps or Not?
It has been widely debated whether or not the ACA gives employers the incentive to cut work hours below the 30-hour per week threshold that constitutes full time work hours. This includes full time temps who regularly receive health care benefits through the staffing agencies they work for. The real problem is when a temp is working at full time status is then offered perm placement at a lower hourly rate to avoid providing them with continued health care coverage. Both employers and staffing agencies need to tread carefully when it comes to ACA guidelines in order to avoid any potential issues like this that may come up.
More Employers Hiring Temp to Perm Employees in 2014
A surprising benefit that has come out of the ACA mandates is that more employers turned to temporary workforce options than ever before. According to a survey conducted by CareerBuilder, a leading career search portal, nearly 42 percent of US employers plan to hire temp workers in 2014. This is as compared to 40 percent of employers in the year before. Additionally, 54 percent of employers anticipate hiring the same if not more temps and full time workers than previously. 40 percent of the companies polled in the survey stated that they planned on transitioning their temp workforce into permanent full time roles in 2014.
We are hopeful that the ACA will continue to only offer good things to the American workforce, including the growing temp market. Hiring through a temp agency can provide your company with a cost effective method of staffing without the worry of meeting ACA mandates. Consider that you may want to talk with one of our experts at Advance Staffing Solutions, a Detroit Michigan staffing agency leader.