Concerned employers may put a hold on hiring because of delayed ACA policies.
The Affordable Care Act has been a highly discussed topic among small business owners since the employer mandate provision has been delayed for one year. The delay has made many business owners uncertain about the effects that the mandate will have on their company. Employing the help of an HR consulting service is one way to manage this complicated policy change.
Another option many employers have considered which would be beneficial for employees, is to begin self-insured plans. However, self-funded healthcare can be risky for small businesses. Instead, many companies believe they will have to reduce their hiring rate or cut employees hours, in order to avoid the hefty fines that the mandate will inflict.
Mary Ellen Biery discussed a survey conducted by Sageworks that revealed this information in her article in Forbes. Sageworks got their figures from accountants working with private companies and found that 66 percent believe the Act will have negative impacts on their hiring process in the coming year.
Chairman Brian Hamilton stated that "Private businesses are trying to map out their hiring and investment plans for the next twelve months, and a last-minute delay like this will increase the likelihood that companies remain on the fence about hiring."
Manpower is one of the biggest expenses of a business and the new healthcare requirements could increase this price. Instead of taking a risk on an option like self-funded healthcare, employers are more likely to take conservative precautions, especially since there are so many uncertainties in regards to the act.
No matter what your feelings and actions are in response to the employer mandate delay, it is certain that in 2015 many company policies will have to undergo some sort of change. HR software solutions can help your human resource department determine the best plan of action for your company.