Most construction companies can agree that employee retention is essential to a successful business. In fact, 80% of contractors in the United States are looking for or trying to retain current employees, according to the Association of General Contractors.
High turnover rates make it difficult to bid projects and plan for future work, and hiring, background checks, and onboarding are costly and time-consuming.
Offering supplemental unemployment benefits (SUB) to your team is one of the best ways to drive employee retention. Providing a steady stream of income to your workers while they’re laid off, on top of the state unemployment benefits they might qualify for, gives them money when they need it most. This fosters a sense of company loyalty and keeps employees committed to you when work temporarily dries up.
Benefits of Supplemental Unemployment for Workers
In an uncertain time, especially for contractors who deal largely in government work, one of the largest benefits you can provide your team is supplemental unemployment benefits.
There are a number of ways your employees will benefit from SUB. For instance:
- SUB works in conjunction with your state’s unemployment insurance (workers can receive both payments, and SUB doesn’t reduce state payments)
- 65% saved on every dollar (since SUB payments are not subject to FICA taxes)
- More effective for workers when budgeting, because it evenly allocates their income over 12 months; this helps quality of life to remain the same
Benefits of Supplemental Unemployment to the Employer
SUB isn’t just great for workers. It benefits business owners in the construction space, too.
- SUB reduces expenses related to employee turnover
- It allows for a less stressful work environment for your entire team
- SUB is just one more benefit you can offer to your employees to set your company apart
- Best of all, it allows you to bid more competitively, since you’ve reduced your labor costs by way of labor burden savings. The more jobs you win thanks to competitive bids, the more you can hire, and the busier you can keep your staff. This yields better employee retention, and the cycle continues.
How to Offer Supplemental Unemployment Benefits
Most of your competitors in the construction space are not offering supplemental unemployment to their workers. Trying to set up a SUB plan may seem overwhelming, but a trusted partner like DirectAdvisors can help you to institute and maintain such an offering.
We aren’t just any fiduciary or prevailing wage and fringe benefit advisor. We are experienced, place an emphasis on strict compliance, and offer impeccable attention to detail and great customer service.
Have more questions about the best supplemental unemployment insurance for your company? Read more here, download our white paper, or contact us today!