Investing in Employees or Cutting Corners: The New Wave of Hiring After Obamacare

Business hiring strategies will be changing in the wake of health care reform. Forever 21 has come under scrutiny for reducing the number of hours on full-time non management positions to 29.5 hours per week. The time cut will prevent employees from receiving medical and ancillary plans effective August 31st. Forever 21 has vehemently denied this course of action was due to the Affordable Care Act – more commonly referred to as Obamacare – and rather because of projected store sales. Although the truth is nebulous, this maneuver will be more common as the October 1st deadline for providing health insurance nears.

Jeffrey R. Ungvary, President of Strategic Wellness & Insurance Management Services, Inc. (SWIM), states “If businesses want to attract and retain the brightest and most sought after employees, they’ll include coverage in hiring offers.”

Ungvary, who specializes in group benefits and is well-versed with the new changes in health care, believes there will be an influx of employees seeking employers offering lucrative plans. Albeit, these positions are for workers with highly specialized skills, but if companies’ want to invest in their employees and reduce turn-around, they’ll start investing in their hires.

“It’s imperative for businesses to understand what makes the most sense. At SWIM, we encourage our clients to undergo a means test and analyze their current structure,” said Ungvary.

The Health Insurance Marketplace launches October 1st and every state will have subsidized coverage. Most provisions will not take effect until January 1, 2014. For more information on Health Care Reform, visit https://www.healthcare.gov/.