Organizations throughout the country currently face the critical issue of how to implement strategies to protect against costly layoffs in the future. The 2008 recession forced many companies to contribute to the staggering unemployment rate throughout most regions of the United States. Subsequently, these organizations have had to operate using skeleton crews, creating internal discord among those stretched to capacity while former coworkers face time off with a big paycheck. These cutbacks also cost billions of dollars in severance awards.
A comprehensive strategy is necessary to ensure this does not happen again, as neither big companies nor the economy can handle repeated blows. A strategy designed to protect against such costs and losses in the future would require consideration from internal teams including workforce management and finance. A solution to these issues which has proven to be a successful tool in managing current separation benefits and building a plan for those required in the future.
Strategy: Supplemental Unemployment Benefits
Moving forward, the best recovery and ongoing management strategy is one that is clear-cut, easily manageable and addresses severance a business process that is always a part of doing business. A SUB Plan offers a company a huge strategic advantage as it easily addresses the issues of employee morale and company cost.
Example
Rather than severing 100 people and overspending on severance, a company can choose to reduce that number by utilizing a SUB Plan to integrate funding from other sources. They can then use savings to retain more employees and maintain operating efficiencies. A strategically outsourced SUB Plan will reduce the administrative burdens involved with designing the necessary separation benefits program while a vendor's infrastructure offers regulatory guidance to ensure ongoing adherence to often changing unemployment law.
Many organizations would benefit from reexamining seperation benefits packages. All too often, this is left unexamined until after billions of dollars are unneccessarily spent. To learn more about the benefits of SUB plans, visit our overview page.
Get the TSI SUB Plan Overview
Download the TSI program overview now to learn more about how TSI can help your organization successfully implement a Supplemental Unemployment Benefits Plan.
