Upcoming legislation – what it means to your business

health care reformUnder the Affordable Care Act, businesses that employ at least 50 full-time workers — or the equivalent, including part-time workers — must offer health insurance to staffers who work at least 30 hours a week. While the so-called employer mandate to offer health coverage doesn’t take effect until Jan. 1, 2014, many employers plan to bring on more part-time workers next year, trim the hours of full-time employees or curtail hiring because of the new health care law, human resource firms say.

What does this mean to your business? One solution around the 50-employee threshold plan is to add more part-time workers or contract workers. Many will hire more temporary workers, whom they won’t have to cover. Incorporating contingent workers does not have to be limited to just small businesses but, can and should be, implemented at the corporate level for maximum results.  Besides the benefits for the small business to avoid costly health care insurance and avoid federal fines, here are some other benefits to contract workers:

  1. Cost flexibility: Not only can organizations derive a cost savings from adjusting staff sizes up and down based on business requirements, but they are also able to control the wages paid for particular tasks by using contingent talent on a project or timeframe basis.
  2. Speedy implementation: Talent needs can change on a dime. New technology or      new competitors can expose talent gaps in any organization. Employing a contingent talent strategy enables a company to access the right talent to meet specific skill or competitive challenges quickly, without incurring  longer-term costs or disrupting the organization. “Virtual talent” is much easier to find than it was even a few years ago, and can be brought onboard rapidly.
  3. A boost to innovation: Contingent talent brings in new knowledge and fresh ideas based on experiences outside of the company or even the industry. Companies that have programs or processes in place to facilitate knowledge and expertise transfer from contingent workers to full-time workers capture that knowledge on a permanent basis. If contingent workers’ roles involve moving across the organization, they can also share best practices across organizational boundaries more easily than do internal employees.

Contract workers can greatly add to your business by providing temporary solutions without adding to the overhead.  Contingent workers can add to an organization’s intellectual capacity and provide instant expertise as needed. Contingent workers bring unique experiences, fresh thinking, and new approaches to problem-solving. Today, the growing contract workforce provides opportunities for talent-hungry businesses and corporations.

addONE Marketing Solutions delivers experienced,  marketing staffing solutions to fit any size project or budget.  Filling marketing staffing gaps or providing affordable marketing solutions makes addONE marketing “the smartest addition you will ever make.” Atlanta-based and woman owned since 1998.Visit add1marketing.com for more information.

10 Comments

  1. gerald gillis on February 7, 2013 at 12:00 pm

    Nice to get some clarity on this portion of the new law without having to search through 2,000+ pages. Thanks for posting.

    • natalie on February 7, 2013 at 3:56 pm

      Glad to help you weed through the mounds of paperwork. Thanks for your comments Gerald!

  2. successnotsabotage on February 7, 2013 at 12:11 pm

    Loved the way that you showed strategically how to turn this into a plus for corporations. Another good reason too to launch a business and serve organizations in a contract capacity. I am forwarding this one to a couple HR friends.

    • natalie on February 7, 2013 at 3:58 pm

      Thanks for your comments. Contigent workers can really benefit companies – both large and small – and the contractor stays pretty happy as well. Appreciate the forward and comment!

  3. Mickey on February 7, 2013 at 12:59 pm

    We love contractors too! This is just one more reason to like using them.

    However, if the contract worker is putting more than 30 hours/week does that count toward this total? Or is that only for regular employees?

    • natalie on February 7, 2013 at 4:01 pm

      Good question, Mickey. A contractor is a contractor no matter how many hours they put in. You could have 50+ contractors working for you but since they are not a full time employee with a W-2 under your company, you would not be required to provide health insurance.

  4. Carel Bekker on February 7, 2013 at 6:13 pm

    Hi Natalie, thank you for sharing this. Here is another resource that may be useful for your readers:
    http://www.rothwell-international.com/ — offers benefits/payroll for freelancers (disclosure: I’m an advisor to this company).

    We are heading into a very interesting time with ACA.

    • natalie on February 11, 2013 at 3:05 pm

      Thanks Carel for the link. As in all things, more information is more powerful decision making. Appreciate the comment!

  5. Tim Villegas (@think_inclusive) on February 7, 2013 at 8:45 pm

    Thanks for the information. I have not yet needed any contractors but I believe virtual assistants will likely be in my future if my blog gets rolling. Looking forward to more of your posts.

    • natalie on February 11, 2013 at 3:07 pm

      Thanks for reading and commenting Tim.

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