Unemployment Update – Best Practices for 2015
Transitioning into the second half of 2015 provides employers an opportunity to reflect upon the effectiveness of the processes that they have put in place to manage the cost of unemployment. Through the processing of claims for over 6000 clients, Equifax has identified several best practices to consider in this new era of UI Integrity.
Implement a system to provide all separation details up front
Implementing a consistent protocol for the identification and provision of all relevant separation details to the state remains the most effective strategy for minimizing unemployment costs and maintaining adequate and timely claims response. With UI Integrity legislation mandating the elimination of charge relief for non-compliant response, it’s increasingly important for employers to have access to case history as well as an understanding of what documentation needs to be provided in response to the initial request for information (this will also eliminate the need to spend valuable resources preparing for and attending unnecessary hearings).
Utilize the State Information Data Exchange System (SIDES)
With 46 states now on SIDES (CA is scheduled to go live soon), most employers have the opportunity to reduce lead times for claims response by several days (and eliminate lost documents) through an efficient exchange of claims information with the states. In addition, by combining SIDES with intelligent front-end applications, employers can now efficiently manage claims online through a simple dashboard interface, eliminating administrative burden and ensuring compliance.
Identify opportunities for improvement through performance reporting
A small investment in the analysis of program results can yield significant savings in unemployment cost management. For example, a single location that is not complying with established procedures can lead to a higher state unemployment tax rate. For this reason, employers should implement a robust, interpretable, and accessible system of performance reporting by every level of reporting (location, department, etc.) in their organization.
Integrate predictive analytics and benchmarks into decision making
Through data analysis, employers can quickly gain an understanding of the activities exerting the most influence on their UI programs, allowing them to focus efforts in those areas that have the most direct effect on UI outcomes, tax rates, and compliance. In addition, by benchmarking the results of industry peers (such as protest rates and win rates), employers can identify opportunities for improvement that may not have otherwise been evident.
Deliver consistent and effective employee training
It is critical that HR personnel and any managers involved in the hiring and termination process are provided with training regarding how to most effectively take the required steps for employee review, document cases of misconduct, and respond to requests from state agencies.
For additional information regarding this topic or other proactive unemployment cost management techniques, please contact Pete Krieshok at (314) 214-7325 or via e-mail at email@example.com. You can also visit our corporate blog at http://blog.equifaxworkforce.com
Click here for a PDF version of this bulletin.
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