Real Unemployment Results Support Reemployment Strategies
I have previously blogged on the topic that unemployment savings can drive a business
case for using outplacement in many organizations. But recently a couple of
client experiences – two actual TALX Reemployment Services clients – illustrate that
message so strongly, I feel compelled to share. In these two particular cases,
both employers are non-profit/governmental.
For those that may not be aware, most non-profit organizations, and all governmental
agencies, are what are referred to as “reimbursing employers” when it comes to unemployment
benefits. This means that these employers do not pay taxes based on unemployment
experiences like others do. Reimbursers receive monthly or quarterly charge
statements just like other employers receive, but for these are not just statements
– they are invoices. They must pay the state unemployment division back, dollar-for-dollar,
for all benefits paid to their former employees. For this reason, reimbursers
are a great way to illustrate the savings that can be experienced from a strong reemployment
Two employers – one, a county government with fewer than 400 employees, and the other,
a major state university system with over 100,000 employees – recently began using
our reemployment services for their displaced employees. In well under one year,
with only 30 employees served in one case, and over 100 so far in the other, BOTH
employers have experienced a 100% return on investment! The net results varied
from nearly $20K in unemployment benefits avoided for the smaller employer to well
over $100K for the larger of the two. But for both organizations, these are
real, material savings. And of course in both cases, they experienced happier
employee transitions, enhanced public and community relations, and other traditional
outplacement benefits as well.
So there you have it folks. Unemployment cost management can truly drive a business
case for investing in a reemployment strategy!
Product Manager, Unemployment/Reemployment Solutions
This weblog is sponsored by TALX.
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