PPP loan requirements? Production not meeting demand? If you’re struggling to bring employees back, this is a must read.

What would you do with an extra $600/week? Would you add a new weekend sports car to the garage? Maybe a new set of golf clubs? That condo on the beach you have been eyeing?

To blue collar and white collar employees alike, especially in a retail, hospitality, industrial, or administrative position, the extra $600 simply means you do not have to go back to work any time soon. As a part of the CARES Act, those claiming unemployment receive an additional $600/week on top of their normal state benefit. Many people in this situation receive more with the enhanced unemployment benefit than when they were actually working. They have gotten very comfortable staying home on a pay raise. As an employer, if you are attempting to reopen or recover your business as COVID restrictions lessen, it is going to be harder than many realize to recoup staff.

Many businesses desperately need people to come back to work, especially those mentioned above. Those businesses closed for months. Even though restrictions for non-essential businesses have reduced, many struggle to rehire staff in order to reopen. Other essential businesses that limped along with reduced staff are not able to ramp up to meet recovering demand of their product or service.

If you have identifiable former employees currently collecting unemployment, you can offer them work and coordinate with the unemployment office to stop the benefit, essentially forcing them to return. If this approach does not cover your labor needs, and you need to recruit additional labor, you might think it is going to be easy with 30 million unemployed people. The problem is very few of those people are actively seeking work because they are living comfortably on unemployment. As if this challenge was not enough, many people cannot go back to work even if they want to because of limitations on childcare, and health risks to themselves and their immediate family.

When will this change?

The CARES Act provides this enhanced unemployment benefit through July 31, 2020. Realistically, people who were collecting this benefit will not begin actively seeking work for another 1-3 weeks after the benefit runs out. Tack on the recruiting and onboarding process and you will not actually have a person fresh off unemployment until late August or even October…and then there is training. Most clients we work with cannot wait that long to restart their business.

Why all the doom and gloom?

We hope this information helps you make proactive decisions to restart or ramp up your business. All of us could make better decisions if we could see the future. With nearly 30 years in the employment business, we still have not perfected our crystal ball but we can certainly identify trends and make predictions based off experience. We can recruit too. This is an opportunity to get ahead of the curve in restarting your business. Do you have a PPP loan and need to increase head count to satisfy requirements? Our placements count toward that. Now, more than ever, we are experiencing fierce competition for employees. Do not spin your tires trying to recoup staff when you can rely on a professional recruiting partner to do that job. We can eliminate that burden and allow you to focus on other critical pieces of your business in the challenging months ahead.

Employers: Call Vertex Resource Group at 630.377.1001. Vertex is a premier recruiting firm placing employees in direct hire and contract positions nation wide.