The rise in unemployment tax is giving companies around the country a reason not to boost hiring. Having a significant rise on taxes such as this forces companies to dish out to their laid off works instead of focusing on their currently employed or creating jobs and hiring more people. “More than 30 states have had to borrow billions from a federal fund to cover unemployment benefits for their jobless residents in recent years.”
Those billions of dollars are doing nothing for our economy, employer are getting slammed with taxes and employees are fighting for their jobs everyday, if they have one at all. Plus, this is only the first of two tax spikes employers are being challenged with, on both the state and federal level.
The president of Strategic Services on Unemployment & Workers' Compensation tells the nation that, "unemployment taxes, which were a relatively low bottom-line cost in 2008, are now becoming a significant cost," Holmes said. "It discourages companies from electing to hire new employees."
So what does this mean? Well for a lot of people it means the continuation of losing jobs, and for recruiters its just tough to watch. Knowing and having a hiring process that works and could decrease unemployment by giving people the right jobs and having them stick. A conscious hiring process is so key to retaining top talent. Not just creating jobs but putting the right people in the right roles ensuring long term career paths is what puts companies in a better position to have less laid off workers.
By engaging in a Conscious Hiring process you hone in on the key elements it takes to produce consistent results in your sales organization and you learn to identify the core behaviors, values and competencies needed to achieve those results reliably over time.
Some states however are trying to spare their employers; California for example borrowed its $303.3 million interest payment from a disability insurance fund. "We did not want to increase the tax burden on job creators," said Ben Johnson, spokesman for Ohio's Department of Job and Family Services. With the state, employers and recruiters all working together it can maximize the workforce, and ensure lower unemployment and higher employee retention.