Topic Risk Management,

Why Should Your Business Outsource Unemployment Claims?

Why Should Your Business Outsource Unemployment Claims?

Unemployment claims can be costly. Claims increase the unemployment insurance you pay. This tax increase lasts for years beyond the original unemployment claim, leaving a trail of financial burden to your company.

You and your employees, even if you have in-house HR employees, may not be equipped to handle these complex claims in an efficient manner. You also simply may not have the time. Outsourcing HR can increase your employee efficiency and lower your expenses. By letting trained HR experts handle your unemployment claims, your business can see both a time and financial benefit.


One of the most common ways former employees successfully win an unemployment-related lawsuit is by showing a business failed to comply with hiring, firing, or discipline guidelines. Employment law compliance is a confusing and intricate area of business. By partnering with an HR outsourcing company, you gain access to experts who can advise you on the proper hiring, firing, and discipline practices that can keep your business compliant and avoid costly mistakes.

Are you making these common hr compliance mistakes?

Cost Savings

Every unemployment claim you receive needs to be taken seriously. But that does not mean that all claims are valid. Your HR outsourcing partner can help determine which claims are valid and which are unwarranted. They can also help you respond to the unemployment claims accordingly, reducing the number of approved claims, which keeps your tax rate low.

Not only does this save your company money by keeping unemployment insurance costs down, but it also frees up time for your internal team. By shifting the unemployment claim work to an HR outsourcing partner, your internal team can focus on your core business needs and revenue-generating activities. This makes your internal team more effective and efficient by shifting complex HR needs to the experts.

A trusted HR outsourcing partner will also regularly audit unemployment claims. Going through an internal audit can bring to light any unemployment claims where your business might be overpaying or, worse yet, ineligible claims on which your business might be paying. This audit process can help keep company assets by shedding illegitimate unemployment claims and further keeping your rates low.

Guidance on Hearings

Many unemployment claims end up going to a hearing. An unemployment claims administrator may need to speak with the parties and gather additional information before deciding whether the claim is valid. This can intimidate employees who may have to attend the hearing, even if it is just over the phone.

When you partner with an HR outsourcing provider, the HR experts they employ will help your internal team prepare for the unemployment claim hearing and make sure all documentation has been provided. Your HR outsourcing partner will guide you and your employees through the hearing, ensuring that you have properly prepared for the questions you might be asked. Preparation is key to ensuring you answer accurately and honestly.

Outsourcing Unemployment Claims Saves You Time and Money

The right outsourced HR partner can help your company overcome these challenges while still maintaining a positive ROI. Not all HR outsourcing providers are created equal. You need to choose a provider that aligns with your business goals and helps you achieve them in a cost-effective manner. 

Unemployment claims trip up many small businesses every day and they end up paying for it, both in lost time and money. Having an outsourced HR partner you can rely on to respond to these claims, ensure your business is only paying legitimate claims, and help you and your employees prepare for any hearings can be invaluable. 

How the Right HR Outsourcing Partner Brings you Closer to Your Dreams

Jason Randall

Jason Randall

Jason L. Randall is the CEO of The Questco Companies. He regularly speaks on topics related to strategy, growth, and organizational performance.