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10/11/2010 01:38 PM

Businesses Hiring New Workers Get Help From State Dept. Of Labor

By: Asa Aarons

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Researchers say one contributing factor to the dismal employment numbers is the high cost of hiring, but now the State Department of Labor is helping businesses bring on new workers without the staggering costs. NY1's Employment reporter filed the following report.

Researchers say one contributing factor to the dismal employment numbers has to do with the high cost of hiring. By the time a company pays an HR staff to advertise for a recruit and screen a candidate, the cost of a new employee is a minimum of $4,000 before the first day of work.

The New York State Department of Labor has announced a way for businesses to bring on new workers without the staggering costs.

"To employers our message is simple -- we'll find your workers and we'll do it for free," says Colleen Gardner of the State Department of Labor.

The DOL is opening its considerably large database to allow targeted searches by employers. With 85,000 resumes on file, the DOL believes information about executive, white collar, blue collar candidates and more can be accessed quickly.

"On the job training costs, it offsets the costs of hiring new people and it saves thousands of dollars for employers," says Gardner.

New York State has invested $6 million dollars into on the job training so far this year.

An on-the-job grant returns up to 30 percent of the newly hired employee's salary until he or she is trained and up to speed. Another 20 percent of pay is covered when long-time unemployed people are hired.

The HIRE Act tax credit is another major incentive. Businesses that take advantage of this can receive a 6.2 percent federal payroll tax cut if they hire workers who have been out of work for 60 days or more.

Businesses who have signed on to working with the DOL give it a thumbs up.

"It's been very effective for us," says Peter Woodward of Sigma Inc. "We're a medical device manufacturer, and utilizing their veteran services and other types of opportunities, they've been invaluable in training us on the opportunities that exist at little or no extra cost.

Business owners who are interested in finding out more should to to the DOL web site at www.labor.ny.gov.