Critical Factors
When You Are Considering Hiring Back Employees
Workforce Productivity: It’s likely - based on having to reduce your workforce due to economic downturn - you are closer to where your permanent workforce total should always be...even when workload peaks. The number one drain on profitability in business is paying workers for non-productive time, hiring on and holding on to non-core employee’s even when work slows, in-between projects, etc.
Impact on Your Unemployment Costs (SUTA) / New Legislation: Every time you hire back or hire on a non-permanent employee, it negatively impacts your SUTA rates/costs for up to three years. While the cost to extend unemployment benefits from 26 weeks to 39 weeks is currently paid for by the U.S. Government, if continued, that will likely be supplemented by employers. Federal unemployment accounts are rapidly depleting because of emergency unemployment compensation program outlays and Congress is already talking about the need to increase the FUTA tax base and/or rates. In addition, business owners are likely to share in the burden to bail out states whose unemployment offers are running out. Finally, the democratic administration have presented numerous ideas to be paid for under Unemployment Insurance including family leave situations, new “wage insurance” proposals and extensions of the present system to administer new health care mandates.
Action: Don't add to your unemployment burden that's already growing. Be certain you hire back each employee knowing you can keep them productively working for the long-haul vs. short-term spurts. Consult with your accountant for your states specific SUTA guidelines and calculations. Using variable skilled craftsmen for short-term projects can end up saving you tens of thousands
Workers’ Compensation Exposure and Costs: Did you know that all our employees are covered under our workers' comp insurance? The more full-time employees you have on your payroll the higher your risk or w/c exposure. And, in economic downturns, volume and severity of claims as well as fraudulent claims increase as disability wages are more attractive than unemployment wages.
Action: Minimize your workers’ compensation exposure by supplementing your core employees with our employees.
HR & Administrative Costs: It costs a great deal to hire and retain good people. Even with a surplus of employees available in today’s marketplace; the cost to advertise, reference check, interview, background check, sort through dozens of candidates can become cost intensive. Once hired, costs related to payroll andHR administration are our responsibility.
Some of the nation's most notable Businesses and Contractors have acknowledged these “hidden costs,” which you can’t afford to overlook now. In fact, companies who are focusing on these factors are already realizing reduced labor-related costs and are better positioned to achieve dramatic profit growth as the economy rebounds.
Workforce Productivity: It’s likely - based on having to reduce your workforce due to economic downturn - you are closer to where your permanent workforce total should always be...even when workload peaks. The number one drain on profitability in business is paying workers for non-productive time, hiring on and holding on to non-core employee’s even when work slows, in-between projects, etc.
Impact on Your Unemployment Costs (SUTA) / New Legislation: Every time you hire back or hire on a non-permanent employee, it negatively impacts your SUTA rates/costs for up to three years. While the cost to extend unemployment benefits from 26 weeks to 39 weeks is currently paid for by the U.S. Government, if continued, that will likely be supplemented by employers. Federal unemployment accounts are rapidly depleting because of emergency unemployment compensation program outlays and Congress is already talking about the need to increase the FUTA tax base and/or rates. In addition, business owners are likely to share in the burden to bail out states whose unemployment offers are running out. Finally, the democratic administration have presented numerous ideas to be paid for under Unemployment Insurance including family leave situations, new “wage insurance” proposals and extensions of the present system to administer new health care mandates.
Action: Don't add to your unemployment burden that's already growing. Be certain you hire back each employee knowing you can keep them productively working for the long-haul vs. short-term spurts. Consult with your accountant for your states specific SUTA guidelines and calculations. Using variable skilled craftsmen for short-term projects can end up saving you tens of thousands
Workers’ Compensation Exposure and Costs: Did you know that all our employees are covered under our workers' comp insurance? The more full-time employees you have on your payroll the higher your risk or w/c exposure. And, in economic downturns, volume and severity of claims as well as fraudulent claims increase as disability wages are more attractive than unemployment wages.
Action: Minimize your workers’ compensation exposure by supplementing your core employees with our employees.
HR & Administrative Costs: It costs a great deal to hire and retain good people. Even with a surplus of employees available in today’s marketplace; the cost to advertise, reference check, interview, background check, sort through dozens of candidates can become cost intensive. Once hired, costs related to payroll andHR administration are our responsibility.
Some of the nation's most notable Businesses and Contractors have acknowledged these “hidden costs,” which you can’t afford to overlook now. In fact, companies who are focusing on these factors are already realizing reduced labor-related costs and are better positioned to achieve dramatic profit growth as the economy rebounds.
