Staffing Industry Unemployment Management Best Practices
taxes can be a major expense for the staffing industry, not only because of the various
challenges such as branch turnover or a dispersed population but also because unemployment
rates are based on the collective experience of all branches within a state. As
a result, one ineffective branch can negatively impact all branches in that state.
But within any organization, costs related to unemployment can still be controlled.
2009, TALX conducted a comprehensive survey seeking feedback from our client partners
within the staffing industry. Highlighted
below are 5 best practices used in the staffing industry that can help you manage
costs associated with unemployment compensation.
Practice #1: Choosing the right candidate- Onboarding
onboarding adds qualified applicants to your candidate pool to be placed with clients.
In this stage it’s important to conduct and use tools such as formal assessments,
job interviews, background checks, and also implement procedures to review your organization’s
policies. As it relates to controlling
unemployment taxes, the onboarding stage should serve several purposes:
get qualified job candidates
policies and procedures to obtain signatures of acknowledgement from the candidate
the candidate’s job requirements and help set reasonable requirements for pay, hours,
Practice #2: Management and Practices of Policy/Procedures
employee handbook should provide essential information regarding workplace rules and
operations. Below are important policies and procedures that all employees should
receive and acknowledge with a signature. Acknowledgements
should be retained as documentation of their acceptance and understanding.
the appropriate channels for reporting absence or being tardy.
Your company’s procedures to line up new work when an assignment is coming to a close
or after it has ended.
Quit Procedures: Company
expectations regarding notification of a voluntary resignation.
Practice #3: Job Requirements and Candidate Placement
candidates with client job assignments that are a good “fit” are important because
when the client’s and candidate’s expectations and requirements are met, you have
offered a valid job. You should always:
relevant job requirements and help the candidate to have realistic expectations (hours,
pay, work conditions, etc.)
the candidate sign off on the agreed upon job requirements
validity of an assignment is pivotal in a state agency’s decision to award or deny
unemployment benefits after a candidate’s refusal of a suitable job offer.
Practice #4: Assignment Management & Monitoring
it is software driven or a manual process, it is beneficial to have a system to select
and place qualified candidates, track when an assignment is ending for future and
continuing placement, and to monitor the workplace relationship between the temporary
employee and the client.
addition, it is also helpful to prioritize the assignment of candidates first to their
qualifications, then to whether they are collecting unemployment benefits, and finally
go to those candidates whose earnings meet or exceed the taxable wage base in your
Practice #5: Documenting for Separations, Job Refusals and Availability Issues
order to provide the best response to a claim received from the state, you must have
effective documentation. If you fail to provide the details and documents (signed
acknowledgement of policies, written warnings, etc.), you are not effectively providing
the state with proper information to make an informed decision. It
is also important to provide the state with specific documentation related to refusals
of suitable work offers and restrictions on a person’s availability for work.
survey results are clear. High
performing staffing organizations use effective candidate and employee management
programs, as well as implement key processes and procedures from the hiring phase
to the separation phase.
This weblog is sponsored by TALX.
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