Temp and Contract Staffing Firms: Are You Ready for the ACA?
The Affordable Care Act (ACA) and its employer mandate will significantly impact many companies’ hiring and headcount plans, and will affect temporary and contract staffing firms in particular. Because large companies (100 or more full-time employees) are on the hook to provide health insurance to these employees next year, temp and contract staffing firms may have to increase their client bill rates to retain their current margins. However, since the employer mandate kicks in for employees who work 30 hours a week (the Act’s definition of “full time”), temp and contract staffing firms are likely to see an upsurge in new business as hiring companies take advantage of the “variable” workers offered by these agencies and “look back periods” to delay having to pay health benefits.
In an interview with Recruiting Daily, Sean Harrington – Bullhorn’s Manager of Back Office Projects – discusses the ACA’s impact on the staffing industry and how contract and temp recruiting firms can comply with its mandates from the vantage point of recruiting software and technological readiness. From the interview: “Few companies understand the implications of this legislation better than Bullhorn, whose recruitment software provides the backbone for the back office at over 5000 staffing firms while serving as the system of record for over 200,000 frontline recruiters.”
Read more: “Comply or Die: The Affordable Care Act for Staffing Firms” – http://recruitingdaily.com/comply-die-affordable-care-act-staffing-firms/