Since its inception in 2010, the Affordable Care Act (ACA) continues to drive increasing costs for individuals, families and small/medium businesses. Timothy Jost of Washington and Harold Pollack of the University of Chicago both acknowledge, “The ACA undertook from the beginning an ambitious reform agenda, but some of its approaches have turned out to be ineffective, poorly targeted, or not ambitious enough to address deeply rooted problems.”  While excessive health care spending and middle-class taxation ensue, business owners are faced with challenges never seen before. Current mandates to increase minimum wage adds “salt to the wound;” stack on FMLA, benefits, payroll taxes, worker’s comp, and general expenses… the once, seemingly, lush economic landscape that entrepreneurs set out in is quickly unveiled as grim, dry and barren.
Companies considering hiring their 50th employee might just think twice. The moment that happens, the company must provide all employees with health care benefits, FMLA and SEFRA… or pay the hefty $2000 per employee penalty. It’s unlikely that that one new employee will bring in enough revenue to cover his, or her salary and insurance for everyone… So, what’s an employer to do?
One option is to simply stop at 49 and many economists’ suspect that is what companies will do. This creates a plethora of problems, all resulting in stunting business growth. Owners are then forced into a tango with bad options including hiring freezes, reducing hours, eliminating staff, and overloading employees with additional responsibilities; the list goes on. Technology and automation are great, but not all positions can be replaced with an algorithm, or robotic arm. Those aren’t usually cheap either.
Many large businesses and corporations have resorted to outsourcing. Traditional outsourcing typically involves substandard environments, insufficient management, high turnover, poor data security, unfair contracts, low quality and high seat requirements which places the option out of reach for small to medium business owners. Online freelance platforms work well for single, miscellaneous jobs, but are too unreliable and expensive to replace the quality and level of work you would get from an in-house employee. This is especially true if you have to invest time and training in the freelancer to learn your specific processes and procedures.
The program we developed at StaffBoom addresses the above concerns around outsourcing. If you’re business is in jeopardy due to the threat of ACA, if you’re interested in expanding, or perhaps both, contact us today to find out how we can specifically help you.
 Timothy Stoltzfus Jost and Harold Pollack, “Key Proposals to Strengthen the Affordable Care Act,” Century Foundation Issue Brief, December 15, 2015, Key Proposals to Strengthen the Affordable Care Act (accessed March 10, 2016). In their 47-page brief, the professors make 19 policy recommendations to improve the law, largely by expanding government regulation and spending.