1. Customize This Template!
Insert your state agency’s logo
Change the master slide to your state agency’s PowerPoint template
Tailor the color scheme to match your state agency’s color scheme
Add or delete slides
Edit slides to include your state specific program information
Insert staff contact information

2. SHORT-TIME COMPENSATION
A Viable Layoff Aversion Strategy for Employers
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State logo here

3. What Is Short-Time Compensation?
Short-time compensation, also known as worksharing or shared work, preserves jobs and an employer’s trained workforce during declines in regular business activity by reducing hours of work for an entire group of affected employees rather than laying off some employees while others continue to work full-time.
STC cushions the adverse effect of the reduction in business activity and keeps employees on-the-job for when business demand increases.  

4. Here’s How it Works
Rather than being laid off, eligible employees work a reduced number of hours in the work week and receive a portion of their weekly unemployment compensation (UC) payment based on the percentage of the reduction in hours.

5. Here’s How STC Compares to a Layoff
Pat Smith normally works 40-hours per week & earns $600 in regular pay. Under the STC program, Pat’s hours are reduced by 1 day of work per week- from 5 days to 4 days (20% reduction). How does this compare to a total layoff for Pat?
[Note: Example provided for illustration purposes. State can revise numbers to reflect salary and UC payment typical for workers in the state]
100% Layoff
Unemployment Compensation
20% Work Reduction
Short-Time Compensation
Total weekly UC payment $300
4 days regular pay (80% of $600) $480
+ Weekly STC payment $60
_____________________________
Total weekly income: $540
(Versus $600 at 40 hours for regular, full-time work)

6. Why Should Employers Choose STC?

7. STC Helps Employers Temporarily reduces amount of wages payable
Keeps work teams in-place and skilled workers on the payroll
Maintain product/service quality levels with skilled workers

8. STC Keeps Workforce in Place
Preserves skilled employees
Prevents an employer from having to re-invent recruitment strategies when new business needs appear
Alleviates the costs associated with hiring, re-hiring and training new employees when business picks up

9. STC Helps Employees Employee maintains health and retirement benefits
Employees spared the hardships associated with total unemployment
Supports employee morale

10. Assistance is Available
State STC staff are available to help you launch and maintain your program

11. In Conclusion…
STC protects an employer’s greatest asset – employees! When business is down, employers keep their workforce intact and employees on-the-job and ready for when business demand increases.

12. Want to Learn More? Staff Contact: Telephone: E-mail: Website:
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