June 26, 2013

COST OF LABOR ON THE RISE, ARE YOU PREPARED?

FLOOR READY SERVICES IS PREPARED AND WE ARE HERE TO HELP YOU MAINTAIN YOUR MARGINS IF NOT INCREASE THEM

With the closely approaching implementation of the Affordable Health Care Act staffing agencies may be passing on the cost to you, by increasing their hourly rates to cover the cost impact to their bottom line. We here at Floor Ready Services are fully ready for the new changes taking place. We only employ a full-time labor force, our overhead is low and our costs are lower than what you might already be paying for labor. Once Floor Ready Services quotes a price, we never increase it no matter what’s happening in the economy.

Now, staffing agencies will first need to decide if they will only offer part time employment of under 30 hours per week or even offer medical benefits to their employees at all. Or opt out and pay the penalty of $2000, per employee over 50 minus the first 30 employees. This will require their employees to enter into the state exchanges or pay the personal penalty of $95 the first year, which will increase yearly. Reports have stated if the exchange pricing is greater than $25.00 a week these type off workers will not purchase this option because they are living pay check to pay check already.

Insurance underwriters will find it difficult to provide corporate policies at an affordable rate due to the nature of “short term” employment assignments. With the elimination for pre-existing conditions, temporary staffing agencies could be hit with hiring an individual with a “pre-existing” condition they were unaware of. Then shortly after starting work, they require a major medical procedure or are diagnosed with cancer, the agency will then need to foot the bill. Some insurance groups are falsely leading these types of companies to “self-insured” policy providers. This will mean the insurance company will process the paperwork but the agency will be fully responsible for the financial risk of each employees health.

No matter what route they take their cost of doing business has greatly increased without even considering the cost of adding additional personnel to handle the administrative tracking and reporting to meet Federal requirements. So, if you are currently utilizing in-house temps or outsourcing to a company that uses temporary employees be prepared to see your hourly rates increase. Thereby increasing your cost of goods sold. Will you then pass that increase along to your customers? Will you or your customers be able to take this hit to the already tightening revenue stream?

Let Floor Ready Services handle your processing labor needs for you. There will be no more wondering what the ultimate cost will be to your bottom line. Let us fix those costs for you TODAY!