Rather than laying off employees entirely, Oregon employers have another option that can retain talented and valued employees and have a lower impact on their business, including their Oregon state unemployment tax assessment (SUTA) rate. This option is called Work Share.
When a lay off occurs, employees typically have the ability to claim unemployment insurance (UI) benefits. Work Share, on the other hand, supplements lost wages with partial UI benefits and keeps existing employees in the same jobs working at a reduced workweek (e.g. 20-40% reduction in total hours).
Work Share has several advantages to an outright lay off, including:
Sustained Productivity
Since the work force remains intact, the level of productivity remains at optimal levels. The employees participating in Work Share keep their same positions, only at reduced hours.
Reduced Training Costs
Going through regular layoffs means that when economic conditions improve, employers will hire new employees or hire back former employees. Participation in the Work Share program removes the need to train new employees for positions in the company, thus reducing the costs of training. Having a fully trained staff also means that employers have the ability to expand the business when conditions improve.
Staff Retention
Layoffs can be tough on the culture of a business. Layoffs have emotional repercussions that ripple out from the former employee to the managers having those tough conversations and out to colleagues throughout the organization. Emotions for all parties range from fear to depression to anger and suspicion. Every reasonable effort should be made to maintain talented and qualified employees and prevent the entire organization from experiencing this level of upheaval. In a situation where an employer needs to reduce work hours by 25%, they can reduce employee hours by the same percentage through Work Share rather than going through a layoff of 25% of the work force.
Consider this unique and valuable program if your organization is experiencing a slowdown in business or considering a round of layoffs or a reduction in force.
For more information on how to apply for Work Share, contact the Oregon Employment Department or contact a Xenium Human Resource Business Partner at 503-612-1555.