Question

Managing staffing levels to avoid layoffs due to poor business conditions can help control which type of benefits cost?

a. Health insurance costs
b. Retirement benefits costs
c. Unemployment benefits costs
d. Disability benefits costs

Answer 1

Proactive management of staffing levels can help avoid or minimize layoffs and control unemployment benefits costs, reducing the financial burden on businesses.

Step-by-step explanation:

Managing staffing levels to avoid layoffs due to poor business conditions can help control unemployment benefits costs. When a company lays off employees, these individuals may claim unemployment benefits, which can be a significant expense for employers, particularly those who are self-insured or pay into the unemployment insurance system based on claims. By managing staffing levels proactively, businesses can avoid or minimize the need for layoffs, thereby reducing the costs associated with unemployment benefits.