6 Ways To Offset Labor Costs Because Of The ACA

large_2941655917The health insurance exchange and ACA (Affordable Care Act) compliance is upon us as 2014 inches ever closer.  While HR Magazine reported that, at this point, companies are mostly ready to adjust to the new compliance rules, CFOs fear what it will do for labor costs.  In this blog, read about how some companies are planning on offsetting their labor costs as they comply with the ACA.

Many financial executives project that their labor costs will rise with the implementation of the ACA.  With those rising costs, CFOs are getting creative in offsetting labor costs.  Here are some ways they are doing that:

 

  • Increasing the amount employees must contribute towards health care expenses.
  • Raise deductibles with their current health plan offering.
  • Offer a less robust version of their current benefits.
  • Cutting spending
  • Introducing a wellness program
  • Raising prices on products and services

 

One thing that could change labor and health insurance costs is the additional number of dependents and spouses opting in company sponsored health plans.  Companies will have to adjust to that as it happens. 

Looking at the ACA optimistically, it doesn’t appear to be affecting how many companies project their growth in 2014.  Signs that the economy is improving are all around us, from increased home sales to company growth to hiring more employees.  The main thing to keep in mind with the ACA is that plans aren’t expected to dramatically change or impact a company’s overall profit margin in 2014.  This information was gathered from an article for the November 2013 issue in HR Magazine and written by Stephen Miller, CEBS.

After assessing how the ACA is going to change your work force, are you now focused on growing your company?  With growth come hiring employees.  Contact Serenity Staffing today to have us assist you with finding your new employees.  We’ll screen candidates, schedule interviews, and handle all communication with potential employees.  We’ll bring a little serenity to staffing!  Connect with us on Facebook and LinkedIn to stay up-to-date on important trends in the field of HR!