Let’s say you’re running a company in Pennsylvania or New Jersey and you’re facing a temporary shortfall in orders or services, or there’s an economic downturn. You don’t have enough work for your existing employees but you don’t want to let them go. Laying off these workers means you could lose them forever, which can be particularly painful if those workers are skilled in their jobs and have experience. It’s also costly to find and train new workers. It’s bad for morale.
By sharing the costs of keeping these workers employed, the employees still have their income and — just as important — their benefits, like health insurance and retirement. Employers can retain their workers and their skills. The state avoids having to use taxpayer dollars to pay for full unemployment costs. Everyone wins.“Our company is very unique,” she said.
“An employee can work part-time for another employer while in our shared-work plan and they don’t need to make disclosures about the money they earn separately,” said Dickinson. “Their shared-work benefits would not be affected by having another job, but employees must be able to work during the normal work hours of the shared-work employer.
“Thanks to the program we did not have to conduct layoffs to employees and they were able to keep their medical benefits, and the employees were able to collect unemployment pay for the hours not worked,” said Smith. “Once production picked up again, we didn’t have to worry about finding and hiring new employees so there were no delays in production with having to train new employees.
“Morale is a huge issue,” Dickinson said. “It not only affects those who are laid off but their coworkers too. This program is really helpful to keep your team working together in a way rather than coldly cutting off some people while you keep only the people you need.”
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