HRnomics

 The manager says to me…

"I’m not going to fire that guy because then I’ll have to pay unemployment.”

What? How much $$ is a bad employee costing you everyday? I’ve heard this before and it’s more emotional than logical. Are good customers and good co-workers leaving because you refuse to deal with this guy? And your hang up is unemployment?

All right, let’s do a little math here. When I searched “unemployment rate,” a pdf popped up for the year 2008. The rates varied from 0 to 10.96% depending on your experience rating and what state your in. 30 states had maximum rates below 7%. 35 states had maximum wages subject to tax below $15,000. The worst combination I could come up with was in my own home state of Minnesota at $2782.

If I said to you that for $2782 you could get rid of your worst employee, would you even hesitate? Granted, if you’re WalMart and you go through hundreds of thousands of employees every year-maybe? But come on!

Bottom Line:

Don’t let paying unemployment keep you from dealing with problem employees.