There are many areas of operation where employers can control their Unemployment Insurance (UI) costs by implementing best practices when it comes to hiring. Turnover, poor onboarding practices, and layoffs can all increase your company’s UI costs.  Following the correct hiring and onboarding procedures can improve your UI costs and put more money to the bottom line.

Create well-written job descriptions
The best hiring decisions begin with a thorough job analysis.  To hire the right employees, you must understand the vital duties of the position as well as the KSA’s (knowledge, skills and abilities) needed to be effectiveeffectively perform the job.  Understanding what skills are necessary to effectively be successful in the position, versus your wouldn’t-it-be-nice-to-have list, allows for a well-written job description communicating your expectations.  By having a plan going in with all of your needs identified, you can reduce your recruiting effort by effectively limiting the applicant pool.  

When you have clearly stated expectations and job duties from the outset, it is easier to defend employment decisions made based on those expectations and duties when they are not met.  In some instances, an employer is asked to provide a job description to the state as evidence for an unemployment claim protest.

Implement an effective onboarding processes
Once an employee is hired, a good rule of thumb is to use the first 90 days of employment as an introductory period.  Use this time for the following:  

• welcome and acclimate the new employee to the company,
• provide necessary training and
• evaluate their suitability for the position.

Conducting periodic introductory period reviews, coaching the new employee, documenting performance issues, and providing counseling sessions during this period will also provide necessary evidence to justify employment decisions. Effective employee training usually helps avoid separations from employment, and recording that the training was provided will show that the employer tried to improve the employee’s skillset.  

Your Employee Handbook is often a key to your success

An effective employee handbook and its signed acknowledgement document are critical tools in the onboarding process (and throughout an employee’s time with you). The handbook ensures that employees are informed of policies, procedures, behavioral and attendance expectations in a structured and consistent manner. The acknowledgement form stating that the employee understands and has received a copy of the employee handbook is a key document used in contesting unemployment claims to prove that the employee was aware of the policy they were violating.  You should be certain to update your employee handbook every couple years, at a minimum, to ensure you are up to date with the latest legal requirements.

You made a bad hire – now what do you do?

Even the very best interviewers make a bad decision occasionally.  There are now three choices to be made:

• terminate the employee immediately,
• change the job to better suit the employee or
• invest more time and effort to train and educate the employee.

If you discharge the employee, doing so earlier will reduce the amount of potential Unemployment liability for your company – the length of employment with you is one of the main determining factors in how much you pay the employee in UI benefits.  The longer the employee works, the higher your potential cost.

A little forethought and planning goes a long way when it comes to hiring and unemployment.  Having effective hiring and onboarding processes can have a significant effect on your unemployment costs, and not having them in place can cost you.  For more information, visit us on the web at www.UnemploymentTracker.com