Turn High Turnover Into Lower UI Costs—Proactively

Executive Snapshot

Headline: Turn High Turnover Into Lower UI Costs—Proactively

Industry: Restaurants

Challenge: High turnover and decentralized store operations drove heavy claim volume, missed deadlines, and a low protest win rate that inflated unemployment costs and consumed HR time.

Solution: Thomas & Company took a proactive, relationship-based approach—auditing UI tax, engaging store leaders early, and managing outreach, escalation, and documentation to improve response quality and timeliness.

Outcomes:

  • $37K+ in UI tax overpayments identified for recovery
  • More complete, on-time claim contests through earlier outreach and 72-hour escalation
  • Reduced HR and store workload by simplifying responses and keeping records continuously updated

“Unemployment insurance is their bread and butter. By taking unnecessary work off our plate, they help us run a more efficient HR function. The ability to trust that the work is being done is huge.”

Senior Manager, Employee Services

Introduction

A national quick-service restaurant (QSR) brand with 285 locations partnered with Thomas & Company (T&C) to modernize its unemployment insurance (UI) cost management process. With annual turnover between 115% and 145%, the organization faced consistently high claim volume—and needed a faster, more reliable way to respond to claims, reduce preventable charges, and free up HR time.

The Challenge

The client was dealing with a double impact: high turnover drove a large volume of UI claims, while a low win rate on protestable claims which increased UI costs. The situation was compounded by a decentralized structure in which each store manager was responsible for supplying claim details—often while running a busy restaurant.

  • Late information requests: the prior vendor typically requested claim details close to the state deadline, leaving little time for stores to respond.
  • Slow responsiveness: responses to client calls and emails could take days.
  • Minimal follow-up: when store-level information didn’t arrive, there was limited persistence and no consistent escalation path.
  • Operational mismatch: store managers viewed requests as low-value paperwork, especially when follow-up was inconsistent and recipients changed over time.
  • Increasing uncontested claims: easily winnable claims often went uncontested, contributing to an escalating failure rate.

The Solutions

T&C implemented a proactive, relationship-based approach designed to improve timeliness, completeness, and quality of claim responses—while reducing the workload on corporate HR and store operations.

  • UI tax audit and recovery: audited three years of UI tax records and identified over $37,000 in credits owed to the client (including funds held in an account in a state where the client had not operated for years).
  • Front-line engagement: contacted store managers to understand the best ways to work with them (including optimal call windows between meal rushes), building credibility and responsiveness at the source of claim details.
  • Earlier, clearer claim outreach: requested claim information 7–10 days before protest deadlines to ensure adequate time for store responses and corporate review.
  • Structured follow-up and escalation: followed up quickly when information was not provided and escalated requests up the corporate chain if unanswered within 72 hours, which also surfaced store leadership changes so future requests went to the right person.
  • Centralized processing and record upkeep: actively reviewed the client’s file feeds, continually updated records, and used this information to substantially complete UI response forms on the client’s behalf.
  • Single point of contact: provided one accountable contact to resolve issues quickly, backed by a staffing model designed for timely same-day responses.

The Results

  • Immediate financial recovery: identified and initiated recovery of more than $37,000 in UI tax overpayments.
  • More contests filed on time: earlier outreach, persistent follow-up, and escalation protocols increased the likelihood that claim information arrived before deadlines.
  • Less administrative burden: by substantially completing claim response forms and maintaining up-to-date records, the engagement reduced the time corporate HR needed to spend chasing store responses and assembling documentation.
  • Improved store participation: respectful, operationally aware communication strengthened cooperation with busy store managers and helped ensure requests reached the correct leader after staffing changes.

The Impact

For high-turnover, multi-location organizations, UI cost management is won or lost in the details: timely outreach, complete documentation, and consistent follow-through with the people closest to the facts. By combining disciplined workflows with strong store-level relationships, the client gained confidence that claim responses were being handled proactively—and that HR could focus on higher-value priorities instead of last-minute claim administration.