COVID Labor Shortages: Here Comes the Cavalry! – Employment and HR

United States: COVID Labor Shortages: Here Comes the Cavalry!

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Like most businesses, you probably urgently need qualified and motivated employees. One often overlooked source is transitioning military and veterans. These men and women are truly special because they understand commitment, teamwork and dedication, they come from all walks of life and are a diverse labor pool, especially when it comes to race, sexual orientation and gender to name a few categories. . Veterans tend to have high retention rates (eg, lower turnover) and bring considerable leadership qualities to the workforce.

In addition to the non-monetary benefits, there are also substantial monetary benefits associated with hiring transitioning military and veterans. Here are summaries of some programs that may be of interest to you:

1. DoD SkillBridge Program. The United States Department of Defense runs an internship program that allows current military personnel of any rank who are in their last 180 days of military service to work for a civilian company. The US DoD pays the service member’s salary and benefits while the service member participates in SkillBridge. You pay nothing! The only requirements are that the “internship” must include an interview and offer a high probability of continued employment. Click here for more information.

2. Military recruiters. To facilitate an employer’s ability to attract the types of applicants who might be a good fit for your company, nonprofits work with the Department of Labor to help companies attract veterans. For example, the HireMilitary organization helps attract specialized types of employees (eg, cybersecurity, IT). Another non-profit organization, Hiring Our Heroes, focuses primarily on placing entry-level candidates.

3. Apprenticeship program. Another potential opportunity for employers is to register and be approved for an apprenticeship program recognized by VA and the Department of Labor. Once approved, an employee can use their GI Bill benefits. This program results in a nationally recognized degree and may make it easier for the company to attract others interested in the skilled trades.

4. Special Employer Incentive Program (SEI). Administered by the Department of Labor and VA, this program provides employers who hire veterans with service-related disabilities who are approved for vocational rehabilitation and employment services reimbursement of up to 50 percent of the veteran’s salary. veteran for 6 months to offset training costs. . see here for more.

5. Work Opportunity Tax Credit. The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire veterans and individuals from other eligible target groups who experience significant barriers to employment. Veterans who are qualified include the following:

  • Veterans with a family member receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps). This family member must participate in the program for at least three months during the veteran’s first year of employment.
  • Veterans who have been unemployed for at least four weeks but less than six months during the one-year period prior to their date of hire.
  • Veterans who have been unemployed for at least six months during the one-year period prior to their date of hire.
  • A disabled veteran entitled to compensation for a service-related disability who is hired no more than one year after being discharged or released from active duty.
  • A disabled veteran entitled to compensation for a service-related disability who is unemployed for at least six months during the one-year period prior to his date of hire.
  • Veterans who fall into more than one category could give employers more tax breaks.

The WOTC can reduce an employer’s federal income tax by up to $9,600 per veteran hired. This is the maximum tax credit if the veteran has service-related disabilities and is hired within one year of discharge from the military. A similar credit is available to employers who hire a disabled veteran who received unemployment compensation for more than six months. There is no limit to the number of eligible employees a business can hire and receive credits. For example, the employer can hire ten veterans with service-related disabilities who have been unemployed for at least six months and receive credits of almost $100,000.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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