Taking the Next Steps

Severance packages are outdated. While many companies continue to rely on these traditional methods to manage layoffs, they often fall short in providing long-term benefits for both the employer and the employee. Enter Supplemental Unemployment Benefits (SUB), a modern solution that’s changing the game.

Introduction: Building a Strong Workforce

Earlier this week, the International Longshoremen's Association (ILA) officially launched one of the largest U.S. port shutdowns in nearly 50 years, threatening to disrupt key sectors of the economy. As dockworkers strike over pay and job security, companies across the transportation, warehousing, retail, and construction industries are bracing for significant operational slowdowns. These disruptions may force many businesses to furlough or lay off workers as their supply chains potentially grind to a halt.

In light of these challenges, implementing a Supplemental Unemployment Benefit (SUB) Plan could offer companies a strategic and cost-effective way to maintain the income of their employees without incurring the cash flow burden of traditional retention-pay, salary continuation or severance.

A Supplemental Unemployment Benefit (SUB) Plan is a company-sponsored program that provides financial support to employees who are temporarily furloughed or laid off. Under a SUB Plan, employees file for state unemployment benefits, and the company supplements their income to bring it up to their pre-displacement wage. This allows workers to maintain their income without the company shouldering the full cost of wages during downtime. Additionally, SUB payments are exempt from payroll taxes (for both the employer and employee), making this a more tax-efficient way for companies to provide financial assistance to furloughed workers.

Introduction: Building a Strong Workforce
As business leaders, we understand that our success hinges not just on the business model, but on the people who drive our vision forward. A dedicated and skilled workforce is the backbone of any thriving organization. Retaining this talent is crucial, particularly in industries prone to high turnover and operational fluctuations.

The Hidden Costs of Employee Turnover
Studies consistently highlight that the cost of losing an employee ranges from several thousand dollars to twice the employee's annual salary. This underscores the critical importance of retaining key talent, a responsibility that often rests with HR professionals. The challenge is particularly pronounced in sectors like trade, construction, retail, customer service, and hospitality, where high turnover and business cycle volatility are common.

The Dilemma of Downtime
Operational downtime presents a significant challenge. HR management must decide whether to:

Introduction

As we approach the end of the year, human resources (HR) professionals find themselves in the familiar position of planning for the year ahead. It is a critical juncture. It marks the perfect time to review and recalibrate HR policies and programs to ensure they are not only competitive and aligned with employee and organization goals, but also compliant with evolving regulations and strategically positioned to attract, retain, and support employees. 

The manufacturing industry is no stranger to disruptions. From equipment maintenance and plant retooling to unexpected weather events, temporary shutdowns are an inherent part of the business. However, these disruptions often come with a significant cost, not just in terms of production losses, but also the financial strain they impose on employees who are put on unemployment. This is where Supplemental Unemployment Benefits (SUB) plans step in, offering manufacturing companies an efficient way to weather the storm and maintain their workforce's financial stability.

In the dynamic landscape of the manufacturing industry, disruptions are inevitable. Whether it's plant retooling, adverse weather conditions, or unexpected market shifts, manufacturing companies often find themselves facing temporary shutdowns. These shutdowns not only impact production but also affect the livelihoods of employees who are put on unemployment during these periods. Enter Supplemental Unemployment Benefits (SUB) plans, a strategic solution that can revolutionize how manufacturing companies navigate these challenges.

In today's ever-changing job market, where economic uncertainties and unforeseen circumstances can disrupt employment stability, having a safety net in place for employees is more crucial than ever. Supplemental Unemployment Benefits (SUB) plans have emerged as a powerful tool for both employers and employees to navigate these challenging times. In this blog post, we will explore the significance of supplemental unemployment benefits and how they can provide a lifeline of support during periods of job loss.