In late 2012, when the federal government was preparing to implement the Patient Protection and Affordable Care Act (a.k.a. the ACA or Obamacare), many employers — and staffing companies in particular — expressed concern about how the new law would affect them. At the time, I urged them to follow the famous advice of the author Douglas Adams: “Don’t panic.” I also predicted that staffing firms’ up-front costs of ACA implementation would be far outweighed by their long-term gains from the program. Nine months later I doubled down on that stance and also pointed out that the ACA would draw higher-caliber candidates into the job pool.
And now, as we roll into the second half of the ACA’s inaugural year, I’ve been proven right. With eight million people (and counting!) signing up for health insurance thanks to the ACA, it’s safe to say that the program is a resounding success — for both the newly insured and the staffing industry. The country is finally escaping the clutches of the Great Recession (and about to slam the door on its face!), and hiring numbers are up across the board.
Normally, all of this would create a very rosy picture for staffing firms. More hiring leads to a better bottom line for us, right? In this case, it gets even better: not only do we have more positions to fill, we also have better candidates to place in them.
PREMIUM CONTENT: Summary of the Final ACA Regulations
Think about it: now that they no longer have to prioritize healthcare benefits when job hunting, highly skilled workers are increasingly receptive to the idea of signing up for temporary work assignments. And now that they’re no longer at a competitive disadvantage (among workers) if they don’t offer healthcare benefits, staffing agencies look more appealing to top talent. Those firms are seeing higher retention rates, too, because their employees won’t necessarily leave for the first permanent job-with-benefits that comes along.
What does this mean for you? In a nutshell: Use the ACA to your advantage in your marketing and recruitment efforts. When you recruit highly skilled candidates, remind them that health insurance coverage no longer has to be the deciding factor (or even one of the primary factors) for which job to take. Without issues of employee-provided health insurance getting in the way, staffing firms and top talent can build new — and better — relationships.
When your success depends on filling open positions with top talent and making your clients happy, you must use everything in your professional toolkit. So consider the ACA your newest ratchet set!
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