SPHR Human Resources

Category - Rewards

A company that wants to reduce the cost of its unemployment insurance should do which of the following?
  1. Aggressively fight unjustified claims for unemployment
  2. Establish an effective performance management program
  3. Terminate employees who violate company policy
  4. All of the above
Explanation
Answer - D - Options A and B are both obviously correct. Although option C may seem counterintuitive to some because many employers are hesitant to terminate employees for policy violations, those terminated for cause are generally not eligible for unemployment insurance.

Key Takeaway: Since retaining an employee who is not contributing to the organization is a poor business decision, maintaining adequate records to demonstrate the reasons for termination provides the tools to fight claims that are unjustified.
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