Strategies for Reducing Unemployment Claims

HR Resource
December 14, 2012 — 2,745 views  
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If your business winds up with a lot of unemployment claims, your unemployment insurance rates are guaranteed to go up. Contesting unemployment claims—and avoiding them altogether—requires that a business or company make an effort to train employees well in addition to having clear documentation regarding any employee misconduct. If a business contests an unemployment claim, the burden of proving just cause for firing the employee falls on the business. Even if the employee you fired cursed out customers, stole from you and set your business on fire, if you don't have any documented proof of what this person did to cause her firing, you won't be able to prove your case.

Document Everything

In the event of an employee discharge for misconduct, the best items for your company to possess are written documents with specific details of any events for which you reprimanded the employee. Ideally, both a manager and the employee should sign the document as well. For example, if you have an employee who consistently comes to work late, begin documenting the issue right away. Detail as much information as possible, including whether or not any other employees were involved. Write down how late the employee arrived and how it impacted the business as a whole as well as any specific customers or co-workers that were involved.

Make Good Hiring Decisions

An old business adage goes, “Hire slowly, fire quickly.” In essence, this quote really means, “Don't make bad hiring decisions, and if you find out an employee's harming your business, fire them right away.” Hiring people who truly fit your business prevents you from having to fire people who haven't necessarily done anything heinous but who simply don't fit well or don't provide the level of quality you desire. In those cases, if an employee files an unemployment claim against you, the unemployment office will award the claim to the ex-employee.

Train Your Staff Well

Having a training program that lets employees know what's expected of them and teaches them how to perform their jobs adequately will help you cut down on unemployment claims. The more your employees know about how to fulfill the requirements of their jobs, the more likely they are to perform to expectations. If an employee seems to be struggling with a particular area, have a supervisor or team leader work individually with that employee to bring him up to the level of performance you desire rather than firing him for a reason that doesn't involve misconduct.


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