New Research Reveals Employees Hired through Work Opportunity Tax Credit Program to Match Peers in Terms of Career Longevity and Success
ST. LOUIS (October 3, 2016) – Equifax Workforce Solutions, a leader in human resource, analytics and verification services, and a business unit of Equifax Inc. (NYSE:EFX), today announced details of its latest research, which found that employees eligible for the Work Opportunity Tax Credit (WOTC) are less likely to leave their jobs, and are just as reliable and career-focused as their peers.
“Most employers are familiar with the WOTC program and the value it delivers by way of reduced tax liabilities to offset the cost of hiring. However, our new research uncovers an added benefit – that employees hired through the program represent less of a flight risk and are likely to stay in their jobs longer than their non-WOTC hired colleagues,” said Angela Lockman, vice president, Product Management of Equifax Workforce Solutions. “These findings show the significant value of the program, not only providing employers with increased income through tax credits, but also gaining access to high-quality, productive and engaged workers eager to achieve success.”
Since its introduction in 1996, WOTC has offered tax breaks to businesses that hire workers deemed by the Department of Labor (DOL) to have significant barriers to employment, such as veterans, disabled workers, individuals on temporary financial assistance and residents of certain geographic zones. Despite the benefits, employers often conduct a risk-benefit analysis around whether the savings are worth the potential need for additional training for those individuals.
Equifax Workforce Solutions’ findings are likely to dispel much of the hesitance some employers may have about screening for WOTC eligibility among their candidates. When combined with the recent long-term renewal of the program, ensuring it remains in effect through the end of 2019, and the addition of a new category for the long-term unemployed, more employers are expected to participate in the program to gain maximum tax savings and benefit from these high-quality workers.
According to an analysis of proprietary data from The Work Number, the company’s flagship verification service, Equifax Workforce Solutions found that WOTC-eligible employees are shown to:
- Stay in their jobs for the same amount of time or longer as non-WOTC hires
- Be less likely to leave their job in the first year, resulting in diminished flight risk
- Progress through the ranks at the same pace as traditionally hired co-workers
- Earn as much throughout their careers as their peers
Even more significant, the Compliance Center solution from Equifax Workforce Solutions helps employers turn the challenging process of screening candidates for WOTC eligibility into a streamlined, integrated solution alongside the Form I-9 employment eligibility verification process.
“Equifax Workforce Solutions continually seeks ways to drive efficiency for our clients to help them get greatest return on investment and maximum value from our offerings,” said Erik Trusler, senior vice president of Marketing for Equifax Workforce Solutions. “As our latest research shows the added value of the WOTC program, employers have much to gain when hiring individuals from the DOL’s protected classes.”
Additional findings from Equifax Workforce Solutions research into the value of the WOTC program can be found in the white paper, “Dual Value of the Work Opportunity Tax Credit: Reduce Turnover While Increasing Income,” available for complimentary download at: http://workforce.equifax.com/WOTCdualvalue.
To learn more about HRchitect and how we can help your organization and your Human Capital Management (HCM) technology needs, please request a consultation. As the leader in HCM Systems strategic consulting, we offer end-to-end HR technology consulting services focused around strategic planning, evaluation and selection, change management, implementation, project management and ongoing support of HCM systems of all types including Talent Acquisition, Talent Management, Learning Management, Workforce Management, Benefits, Core HR/Payroll, and more. Over the past two decades, working on thousands of successful engagements for clients of all sizes and industries across the globe, our knowledge of best practices continues to expand and our experience is vast and unsurpassed. We have expertise around all major HCM systems including Benefitfocus, WorkForce Software, Ultimate Software, Oracle, Taleo, SAP, SuccessFactors, Saba, IBM Kenexa, and more. HRchitect is a name you can trust for all of your organization’s HCM technology-related consulting needs.
Press releases posted on HCM Tech Vendor News are provided to HRchitect by the technology vendors and posted by HRchitect as a service to our readers.