Learning how to manage your unemployment costs is one step on the path to becoming an effective business leader. Companies that drop the ball in this regard could find themselves paying more money each year, especially with a higher state tax rate.

Thankfully, you have a number of effective options to control these expenses if this situation sounds familiar. The first step is with the hiring process, and a workforce full of quality employees will result in a lower turnover rate and fewer unemployment claims. The problem arises with the termination of employees without just cause. These layoffs will continue to drive up unemployment expenses for several years after that staff member is gone.

Identify the problem areas
Higher unemployment insurance costs could come about due to several reasons, but the biggest one is mismanagement of employees and a high number of terminations.

Jay Goltz, small-business owner and contributor to The New York Times, wrote that his unemployment rate was once at its peak, and not because of a poor economy. Instead, he explained that he was hiring the wrong type of people, and was then forced to terminate them. As a result, they all became eligible for benefits. He turned that trend around by placing an emphasis on hiring, the main problem area at the time for his business.

Find the right people
In order to mitigate high unemployment costs, you should place an emphasis on finding the right staff members. This stops the problem from ever forming in the first place, keeping you out of the highest possible tax bracket.

David Blaine, a California-based employment lawyer, told The New York Times that hiring perfect employees is the first step on the path to managing unemployment costs. However, there is some leeway if the wrong candidate is chosen. Some states prevent unemployment benefits from being paid if the worker is terminated within the first 30 days. So, it is smart for you to decide quickly whether or not the person is a good fit for your company.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
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(800) 207-6926

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