At 2 pm today, Governor DeWine will announce his plan for restarting Ohio’s economy (currently expected to begin on May 2). One huge issue, however, is how businesses can incent their employees to return to work if unemployment is paying them more than you will.
Including the CARES Act’s $600 unemployment bonus that expires on July 31, an employee earning maximum unemployment benefits from the State of Ohio earns $1,247 per week, the equivalent of an hourly rate of $31.17 or a yearly salary of nearly $65,000. My guess is that most of your employees do not earn this much. It’s one of the worst unintended consequences of the CARES Act—employees are making more money unemployed than they did employed.
Thus, how do you incent your employees to come off unemployment and return to work, either because you are reopening or you need to end their furlough? You can either use the stick or the carrot.