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Health Care Reform and Workforce Strategy

Health Care Reform and Workforce Strategy

Taking a Holistic View

The challenges stemming from the federal health care reform law (PPACA) and the evolving nature of its provisions are daunting and complex. Employers need to recognize that the law has broader strategic implications than the “play or pay” mandate. Organizations need to evaluate the far-ranging effects to avoid costly or unintended consequences, and meet their business objectives.

While most organizations are affected by the law's 2014 employer mandates, employers will face more complicated workforce challenges if they possess these attributes:

  • Productivity and differential performance materially influence your results
  • Diverse range of seasonal/temporary and part-time workers
  • Large population of low-wage workers
  • Contract employees are material to how your organization delivers or manages its services
  • Low-margin or nonprofit businesses
  • Labor cost represents a significant portion of overall costs
  • In an industry such as retail, customer service, health care, hospitality, and low-margin or low-skill manufacturing

Furthermore, a company’s approach to the health care reform law will have a significant impact on its business, including both financial performance and human capital. Here’s the good news: Towers Watson can help employers evaluate the workforce implications and consider the strategic issues your company needs to address today.

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