Employment Screening Helps to Minimize State Unemployment Insurance Rate

A recent daily tip posted by BusinessWeek focuses on our rising unemployment rate and what employers can do to minimize the negative effects it has on their businesses.

Some numbers:

- Since December 2007, the U.S. economy has lost 6.7 million jobs.

- In 2010, employers face a projected increase in unemployment insurance tax payments that ranges from 2.5% to 600%.

The article points out that good employment practices are key to effectively controlling these rates. Some practices include:

1. Having the proper pre-employment screening, training, and supervision in place so you can hire and retain the right employees for your business. High turnover contributes to higher unemployment insurance rates.
2. Making sure you accurately manage unemployment claims made by your former employees. Following established procedures along with accurate record-keeping will help you avoid unnecessary claims activity.
3. Always be on the lookout for fraud. Experts estimate that as much as 10% of all costs in the unemployment insurance system are attributable to fraud. Illegitimate claims from employees who are not entitled to collect unemployment insurance drive rates higher.

For the complete article click here.

This entry was posted on Friday, February 26th, 2010 at 8:54 am and is filed under XC Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.