Because the Staffing Industry is such a competitive one, it is critical for owners of staffing firms to be as efficient and effective at controlling their administrative costs (which are a primary component of client markup rates) so that they can be as profitable as possible.  Unemployment Insurance (UI) costs represent a significant part of the administrative burden for staffing firms so it is an important cost to control.  There are many components involved in an effective UI Cost Control program - the one discussed in this blog involves ensuring that you understand how the UI system works.

Efficient UI claims management can lead to a competitive advantage for them over other staffing firms (or a competitive disadvantage if they don’t do a good job in this area).  As mentioned above one key component to controlling UI costs is having a strong understanding of how unemployment works in the states in which you operate.  Without this knowledge, you are at the mercy of the system and are not likely to be effective in managing these costs.

• Talk to an expert – there are consultants throughout the industry with knowledge of how UI works in multiple states and would be a great resource.  Visit us on the web at www.unemploymenttracker.com to find out more.
• Go to training – many of the experts mentioned in the last bullet schedule regular web or onsite training sessions on many UI-related topics.  Also, some states also offer basic UI training for employers.
• Attend industry conferences - often at a staffing industry conference, there are sessions about cost control, risk management, or other areas that may improve your knowledge of unemployment insurance laws or processes.  Attending these can be very beneficial.
• Trial and error – learn through your wins and losses on protests.  This can often be a painful way to learn but make sure that you do learn from them so you are not doomed to repeat the same mistakes.

There are many areas of your operations that affect your bottom line, one of the most important ones is UI cost management.  Take the time to learn how the UI laws and processes in your state work - the benefits to your bottom line can be significant and long lasting.  For more information, visit us on the web at www.unemploymenttracker.com.