Is Unemployment Costing Me an Arm and a Leg?Tina Samuels
Wondering if the source of your small business troubles is your unemployment costs? Are you diving in deep and don't know where to start cutting costs? There are ways to make sure that you are doing all you can to limit the amount of money that is going toward unemployment compensation. Before It Gets to Unemployment There are a couple of ways to save money before a worker even gets to the unemployment stage of the game. One of these is through a probation period and the other is through temp service. • Probation Periods - By using a series of probationary periods in your company, you can get rid of problem employees before having to terminate them. A standard 90 day agreement can let you test out the employee without having to go through a possible unemployment claim if you need to stop their employment. This can cut down on costs, especially if you see a high turnover within three months of hiring someone; • Temporary Service Arrangements - By using temporary help to fill in areas that are not long term assignments (help with big projects, work for a short-term project, etc.), you are also keeping down unemployment costs. Instead of hiring someone with the thought of only keeping them for three to six months, offer the job to a temp employee. They'll get the job done and move on to another assignment without need of unemployment. After It is At the Unemployment Stage There are still ways to keep your costs down when appealing unemployment cases. Some of the easiest solutions are: • Don't fight the claims where there was a lack of work or an inability issue, those typically do not work out to your advantage. • Always fight the claims where the employee was in clear violation of policy. Keep all the paperwork you'll need to prove this and have it ready. These claims should be easy to win and save you money. • Also fight claims where the employee left for another job or such, as these should never be paid out. Some companies will challenge all cases, which doesn't bode well for the business and may have them seen as a bit of a hardballer to the unemployment office. Some will not challenge any, which leads to money spent unnecessarily. A fine line in the middle is where your company should fall. Unemployment compensation doesn't have to put a stranglehold on your business. By carefully monitoring your costs, you can easily be able to tell where you can tighten up and limit overspending. It is even easier to adhere to the two tips given to help save you costs by not even having the claims being brought to your attention. So, what have your company’s experiences been with unemployment? |
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