The Work Opportunity Tax Credit delivers big value for high-volume employers
Staffing firms are problem solvers. They constantly seek innovative ways to deliver top-quality candidates to their clients. That’s why top staffing firms increasingly embrace the Work Opportunity Tax Credit (WOTC)–because WOTC helps them stay ahead of the curve in multiple ways.
Here are five of the biggest reasons WOTC is a game-changer for staffing firms.
1. Expands talent pools
WOTC incentivizes the hiring of disadvantaged applicants. For that reason, employers seeking to hire WOTC-eligible employees may recruit from often-overlooked sources. Although staffing firms tasked with finding WOTC employees may need to think outside the box a bit, over 20% of Americans are eligible for WOTC, and recruiting these applicants may be easier than you think.
2. Encourages retention
WOTC rewards employers not only for hiring disadvantaged job-seekers, but also for retaining them. What’s more is that research shows that WOTC workers are more likely than their peers to stay in the position for which they’re hired, and are less likely than their peers to leave a job in their first year of employment. Thanks to these facts, with WOTC, staffing firms can promise their clients new hires who stick around longer.
3. Streamlines processes
Because WOTC employees must be screened for eligibility before or on the day on which a job offer is made, seamless candidate screening practices are paramount. As a result, when staffing firms include WOTC in their hiring and recruiting processes, it can incentivize them to integrate cutting-edge software. This, in turn, streamlines internal processes, optimizes candidate matching, and delivers higher levels of efficiency and accuracy.
4. Strengthens workforces
When staffing firms deliver WOTC-eligible employees to their clients, they help build stronger workforces. Research has shown that WOTC workers:
- Perform better than or equal to their peers
- Earn as much over time as their peers
- Progress through career ranks at the same pace as non-WOTC employees
- Are just as likely as non-WOTC employees to move to another job following their WOTC-eligible job (rather than unemployment)
Additionally, WOTC workers tend to come from diverse backgrounds, and bring diverse experiences to workforces. As a result, adding WOTC employees to any workforce can benefit DEI initiatives, and improve workplace cultures in a myriad of ways–including driving innovation and growth, according to Harvard Business Review.
5. Provides peace of mind
As a federal employment tax credit program, WOTC is good-intentioned, but can be complicated. Adhering to reporting and documentation requirements involves a learning curve, but also creates high standards for work processes. Staffing firms who work with us enjoy the benefit of knowing that tax professionals well-versed in the nuances of WOTC have their back, and that they are optimizing the potential of WOTC at every step.
Level up with WOTC
WOTC can be transformative for staffing firms and their clients. Embracing WOTC isn’t just a financial decision—it’s a strategic move that propels staffing firms into a future where innovation and success go hand in hand.
Staffing firms who trust Arvo to deliver WOTC tools and solutions choose a winning partnership. Learn how we tripled a staffing firm’s WOTC credit here.
It takes less than 30 seconds to schedule a call with one of our WOTC professionals.