June 26, 2013, 11:09am EDT | Business First of Louisville
Malone Solutions clients are reluctant to hire permanent workers because they don’t know how strong the economic recovery will be and because of the uncertainties involved in which employees will need health insurance coverage under the Patient Protection and Affordable Care Act.
Although the Patient Protection and Affordable Care Act is not fully implemented yet, it already is benefitting at least one local business — staffing agency Malone Solutions.
Companies’ reluctance to hire permanent workers because of the unknowns involved in the implementation of the act has prompted a boom in revenue at Louisville-based Malone Solutions, said the company’s financial consultant, Brad Knight.
Last year, the company grew from $48 million to $78 million in revenue, he said in an interview, and this year he expects it to top $100 million. “We’re getting a lot of inquiries and talking to a lot of people,” he said.
The company employs more than 3,000 temporary workers in 20 states, Knight said. Most of the temps work in the auto industry.
The employers for which Malone provides temps are reluctant to hire permanent workers because they don’t know how strong the economic recovery will be, he said, but also because of the uncertainties involved in which employees will need health insurance coverage under the terms of the act.
“In the fact of the unknowns, they are increasing their contingent work force,” he said. “It’s a lot easier for our customers to put the burden of those unknowns on us than to make a long-term commitment to employees.”