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Among the many challenges facing small business owners is balancing staffing needs during unpredictable economic cycles. When work slowdowns occur and the need for layoffs seems imminent, employers may have another option: a work share program.
These state-based programs minimize hardships for employees and give companies flexibility, so they don’t have to resort to layoffs during temporary downturns.
With a workshare arrangement, employers reduce employees’ hours instead of letting them go.
👉 Example: Rather than laying off 20% of your staff, you might reduce all employees’ hours by 20%. Workers take home fewer hours of pay, but the state provides partial unemployment benefits to cover lost wages.
This approach benefits both sides:
Employers retain trained staff, adjust as business conditions shift, and recover faster when demand rebounds.
Employees keep their jobs, benefits, and greater financial stability.
Both Kansas and Missouri offer shared work programs. Employers can apply if they meet certain requirements, such as:
Employers submit an application to the state’s Department of Labor outlining the proposed reduction in hours and the employees covered. Once approved, workers in the program receive prorated unemployment benefits in addition to their reduced wages.
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A shared work program can be a smart option in the following situations:
Workshare programs offer significant advantages for employers, including:
Small businesses can adjust staffing levels to match temporary dips in demand without making permanent cuts.
Companies keep valuable employees in place, avoiding the disruption and expense of hiring and training new employees when business picks up again.
Employees appreciate that the company has sought an alternative to layoffs. Knowing that the employer has their best interests at heart increases employee engagement and reduces turnover.
Payroll expenses decrease while, for workers, unemployment benefits help cover reduced hours, easing financial pressure.
In most states, programs are relatively straightforward to apply for and manage, especially as compared to the cost and disruption of layoffs.
When business improves, the company already has an experienced workforce in place and can ramp up quickly.
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Kansas and Missouri aren’t alone. More than half of U.S. states – including neighbors like Nebraska and Oklahoma – offer shared work programs. While requirements differ, the goal is the same: to give businesses and employees a safety net during temporary downturns.
Since 1988, Axcet HR Solutions has been a trusted resource for small business owners, providing the full suite of outsourced HR services. Our certified HR experts develop practical strategies — from policies to staffing solutions — that safeguard operations and support employees.
Work share programs are just one example of the tools we help employers put into practice. By combining expert guidance with strategic use of technology, Axcet ensures your business can adapt to challenges, protect your workforce and prepare for stronger recovery.
👉 Talk to an HR Expert Today >>
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