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Entrepreneurs are facing a crisis.

No need to remind you the coronavirus health-scare is an unnerving roller-coaster ride for you, your employees and practically everyone you know.

Millions of businesspeople and the unemployed are focused on getting grants, stimulus payments and unemployment benefits.

In the midst of your desperation in dealing with the pandemic, you have a lot of issues to confront in operating your business. That includes health and safety for everyone, telling employees to work at home and either furloughing or laying others off.

In addition, you have to deal with all of this and more while adhering to laws and policies, and maintaining cash flow.

As a result of the pandemic, unemployment contribution rates will significantly increase for the next few years. You need to look ahead – understand that you need to implement strategies to save cash flow.

So take steps now to minimize your unemployment costs:

Know which employees can be transferred

In this coronavirus turmoil, employees with emotional intelligence are a big asset.

If you must lay off employees, you possibly have talented workers with EI that you want to keep working but who wouldn’t be suitable for some roles you need to fill.

So transfer them if you can.


For High Performance Create an Emotionally Intelligent Culture


If you are fortunate enough to create a transfer list, insert the most-valued workers at the top of it.

You might have to give them training for the new roles.

Note: Any workers who refuse a transfer normally cannot qualify for unemployment benefits. That’s because they’d be quitting voluntarily without a good reason.

Intently focus on performance

Make sure your human resources records are up-to-date.

That means accurate documentation with dates and details in performance evaluations, verbal and written warnings, work refusals and mitigating circumstances.


Human Resources: 12 Errors to Avoid in Evaluations


Why? This will bullet-proof your case that you have terminated an employee for just cause.

Avoid constructive terminations or discharges

By definition, a constructive termination occurs when a worker contends having been pressured or who was forced to quit by an abusive employer under unbearable conditions.


Vital Strategies to Avoid EEOC Discrimination Suits


Make sure you have a strongly documented reason when changing an employee’s responsibilities or schedule. If you don’t, you’ll be guilty of the appearance of treating the person badly.

Pay in-full to minimize your unemployment contribution rate

When an employee gives you notice of quitting, either let them work their entire notice period or terminate them right away but be sure to pay them in-full.

In the case of terminating employees, if you tell them to immediately leave, pay them their notice-period compensation.


If it’s Necessary to Fire Employee on FMLA, Here’s How …


If you don’t, your state will likely give them unemployment benefits and your unemployment contribution rate will increase unnecessarily.

Precautions when you start rehiring

Evaluate your hiring experiences. Review your job descriptions – make certain they are accurate on how the employees are expected to perform.


Write Better Job Descriptions to Attract Best Talent – 16 Tips

Human Resources – Bad Hires Are Costly, How to Prevent It


This will ensure successful hires.

Otherwise when employees terminate because they’re not suitable for the position, the state will rule it wasn’t their fault because the situation was beyond their control.

This also means they’ll receive unemployment benefits and will hurt your payroll costs.

From the Coach’s Corner, editor’s picks:

Lives Are Shattered, Tips to Lay off Employees with Grace – Manager: The coronavirus is devastating workers and their families. If you must lay off employees, here’s why and how to do your best to soften the pain. Or you’ll face even more unexpected consequences.

10 Tips on Responding to EEOC Complaints – If your company is hit with an EEOC complaint, here’s what to do.

Smart Money Management – Exempt vs. Non-Exempt – As a business, worth your consideration is whether to employ salaried or hourly workers. There are pros and cons for each. Plus, an informative infographic: Salary Versus Hourly Employees: A Brief Overview.

Guidelines to Meet FLSA Responsibilities for Remote Workers – As an employer, you have a myriad of responsibilities under the Fair Labor Standards Act (FLSA ) for exempt and nonexempt workers who work at home.

For Temp Jobs, App Quickly Connects Employers/JobSeekers – There’s a mobile application, myworkchoice, that’s bringing employers and workers together in as little as one day.

“The three most dreaded words in the English language are ‘negative cash flow’.”

-David Tang


Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.