ACA affects hiring decisions for businesses; boosts temp agencies

WICHITA, Kansas — Due, in part, to the Affordable Care Act and its federal mandate requiring businesses with 50 or more employees to provide health insurance to their workers, more companies are reportedly seeking the services of temporary staffing agencies.

Chris Rickerson is the President of Elite Staffing Solutions in Wichita. Rickerson launched the temp agency in September 2013. Since the beginning, Rickerson has seen success.

Elite Staffing Solutions - Website Homepage
Elite Staffing Solutions – Website Homepage

“I’m doing everything from housekeepers and food service, construction, equipment maintenance technicians, [and] welders,” said Rickerson.

In his first full calendar year in operation, in 2014, Rickerson says he did nearly $1.5 million in business. In 2015, Rickerson forecasts he’ll do $3 million in business.

Rickerson credits a lot of his success to several changes in Kansas’ economy, along with more financial demands required of business owners. He tells KSN News that some businesses may want to keep employees on as “temporary” workers so they can avoid, and/or postpone, fees or penalties for health insurance costs.

“Companies want to try an employee out before they commit to hiring them,” said Rickerson. “They may be at that tipping point where they need employees to get the work done, but they don’t want to go over the number that puts them in that criteria of having to be able to provide those benefits.”

Rickerson says he understands companies’ concerns. After all, he experiences things from both sides.

“It’s going to affect me just like it affects everyone else,” said Rickerson.

On average, 130 people work for Rickerson, through Elite Staffing Solutions, on a daily basis. Rickerson is responsible for workers’ compensation insurance, liability insurance, providing drug screening, and payroll.

Along with those responsibilities, until an employer/employee match is made, employees are still technically his responsibility. So too, then, is their health insurance.

For more information about Elite Staffing Solutions, click here. 

The U.S. Department of Health & Human Services announced Wednesday that 96,226 Kansas consumers either selected a plan or were automatically reenrolled in coverage through the Health Insurance Marketplace.

More than 96,000 sign up in Kansas for health care

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