A new report seems to have 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. The research released by Equifax Workforce Solutions reveals employees hired through the Work Opportunity Tax Credit Program match peers in terms of career longevity and success.
“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 at Equifax. “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 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’s 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 its proprietary customer data, Equifax 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
For more information on Equifax’s research, you can download their white paper on the topic here: http://workforce.equifax.com/WOTCdualvalue.