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Unintended Consequences of the CARES Act

This week, we are sharing a recent article in Human Resource Executive that explores the unintended consequences HR and TA staff may be facing as a result of the CARES Act. Featuring Tim Sweeney, VP of Business Development at Orion Talent, the article looks at the possibility that the $600 federal weekly unemployment benefit created a lack of urgency for people to work.

Sweeney believes that earning less than $45,000 a year was the breakeven point at which workers made more money staying home, making recruiting difficult for roles with salaries below that threshold. With some companies turning to higher hourly wages, signing and retention bonuses, and even increasing the number of recruiters, the boomerang effect of the provision is obvious. It expired in July, but there are other possible unemployment benefits in the pipeline that could have similar effects.

Explore How the CARES Act May Affect Your Business

Read “How employers are recruiting in the age of the CARES Act” to fully explore how the ongoing CARES Act provisions may be affecting your business. And then visit Orion Talent to see how our talent solutions can help you overcome any obstacles you may be facing.

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