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    1 Reply Latest reply on Sep 22, 2013 9:20 AM by Moderator Melinda

    How Will Obamacare Affect IT Staffing?

    it_recruiters Adventurer

      As someone who has been in the IT consulting and staffing industry in the U.S. and Europe for over 24 years, I've been asked by many people about my thoughts on how Obamacare will affect the IT staffing industry as well as small businesses.


      The cost of providing healthcare is a huge barrier for small businesses and with the Affordable Health Care Act likely to remain the law, you will see an increasing reluctance for small business owners to hire full-time employees, especially with IT placement. They will be more likely to hire part-workers and restrict their hours to (30 hours or less) in order not to be subject to the health care mandate. This is a trend that will not bode well for business owners or their employees. Small business owners already face many challenges in running a business. The new health care act will add another layer of complexity for many of these businesses. Additionally, due to the length of the new law, experts are still discovering nuances that create uncertainty for business owners in the future. Depending on the business, the company's ability to hire may be greatly affected with the Affordable Health Care Act.

       

      From experience in working with IT staffing agencies, I think that there will continue to be a shortage of skilled IT talent because I don't believe that we will have meaningful immigration reform that will result in visas being stapled to the college diplomas of math, engineering and science students who have come to the U.S. for their degrees. They are unfortunately going back to their countries in record numbers and we are failing to graduate U.S. citizens in sufficient numbers to address the demand.  IT recruiters will have a difficult time finding IT talent. Consequently, firms will have a hard time to hire full-time or contract staff for IT and engineering positions.

       

      How has Obamacare affected your business?