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Reduce your unemployment
claims costs by 40% or more

UC Alternative drives down your unemployment claim costs, reduces your UI tax rate, and takes the administrative burden off your shoulders.

REDUCE COSTS
A CFO’s Guide to Reducing Unemployment Costs Through Performance-Based Pricing
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Discover how performance-based pricing can transform your unemployment claims management and drive significant savings.
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The surging cost of unemployment is a problem healthcare HR and finance leaders can’t afford to ignore.
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Reimagine how low your unemployment claims costs could be

With regulations evolving and operating expenses rising, it’s never been more challenging to manage your unemployment claims efficiently and keep claims costs down. You can’t afford to spend more time or money on claims than necessary—and with UC Alternative as your partner, you’ll save on both fronts.

UC Alternative brings the insight, expertise, and knowledge of unemployment law to help you achieve significant claims savings. We uncover your true unemployment costs, including the cost of each type of claim lost by location. Then we apply our proven processes and deep expertise to reduce those expenses, appeal invalid claims successfully, and help you achieve the lowest possible UI tax rate—often far below the average rate for your industry, in your state. For companies with a sizable workforce, reducing the UI tax rate can translate to millions of dollars in savings.

Our clients see their unemployment costs drop by 40% or more, resulting in many clients reaching their minimum UI tax rate. We deliver these exceptional results by approaching each claim as a winnable opportunity, focusing on two critical measures: the cost of claims lost (by type), and your UI tax rate. Our process wins more claims upfront, reducing the need for appeals and saving your team valuable time. And we deliver insightful reports that reveal how your claims costs compare to peer companies in your industry, by state, so you know where and how you can improve to reap more savings.

Get to Know UC Alternative
– OUR BELIEFS –

Pay for claims results, not claims volume

Many providers charge a flat fee per claim processed, creating no incentive to improve your success percentage or reduce your UI tax rate.

UC Alternative is different: We’re compensated to outperform.

Our unique performance-based fee structure ensures we have a strong incentive to accurately forecast how much we can reduce your claims costs and your UI tax rate, then apply the most effective strategies to realize those improvements and drive unmatched savings to the bottom line. We take ownership of the process and handle your unemployment claims with a specific goal in mind: to help you win the claim, so you can achieve a better claim experience rating and ultimately a lower UI tax rate, aiming to reduce it to below your industry’s average, by state.

To achieve better performance, UC Alternative takes a proven approach to driving down your UI tax rate to the lowest rate possible for each of your locations. Our unemployment tax specialists will:

Compare what your UI tax rates are now

vs what they could be, on a state-by-state basis

Establish UI tax rate

savings goals that help you evaluate program performance

Help you take advantage

of making voluntary contributions

Analyze and recommend

joint accounts where allowed

Identify and report

on fraudulent unemployment claims and help you secure timely reversals

Verify new tax

rates for correctness

Identify the hidden

value of tax rates in cases of mergers, acquisitions, or reorganizations

You’ll always know how your UI tax rate is trending and how your unemployment claims program is performing overall, through our easy-to-use portal. The portal gives you access to data dashboards that make it easy to track how your UI tax rate is declining, how it compares to industry averages, and all the savings generated by your tax rate reduction. You can also track and monitor unemployment claims activity and savings realized across the enterprise and by location, for full visibility into your program’s performance.

Because we’re incentivized to deliver better results, you can be sure we’ll be persistent and tenacious to win more claims on your behalf and optimize your UI tax rate. We also analyze and track how that rate is trending and continually look for ways to drive it down further.

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– SAVINGS –

Start reaping unemployment savings like these

$4.8 Million

Cumulative tax savings achieved by driving down UI tax rate from 1.7% to 0.5% in three years for a company with 9,000 employees.

$4.2 Million

Cumulative tax savings achieved by reducing UI tax rate from 1.8% to 0.1% in three years for a company with 6,000 employees.

$900,000

Cumulative savings achieved by reducing unemployment claim costs over four years for a company with 4,100 employees.

– LET US REPRESENT YOU –

Spend less time managing claims by shifting the burden to us

We know that most HR departments are struggling to handle more work with leaner staffs. By taking on the administrative work for you and leveraging our highly streamlined processes, we can handle a high volume of unemployment claims promptly, efficiently, and in full compliance. And because we help you establish the most efficient internal processes around unemployment claims, you’ll find it much faster and easier to collect and submit the required separation information and keep the process moving effortlessly.

Working as an extension of your team, we obtain power of attorney to represent your organization with each state in which you operate and keep current on changing state-specific regulations to maintain compliance. Our systems diligently track outstanding claims to ensure our team stays on top of open items, and our claims analysts make timely contact to gather separation information whenever we receive a new notice, assuring we meet crucial deadlines.

From carefully reviewing claim notices, to confirming all information is complete and all supporting documentation provided, to formulating a winning response that leverages our expertise and submitting it electronically through the State Information Data Exchange System (SIDES), UC Alternative does everything it takes to craft a strong case, win more claims upfront, and reduce appeals. We even set you up for success long before a claim is filed, encouraging all your locations to consult with us before discharging an employee to ensure they follow required procedures. And in the event that you need to appeal, our highly effective appeal process blueprint ensures your witnesses are fully prepared to defend the case.

Employee files for unemployment with the state

State issues claim notice to UC Alternative electronically through SIDES

UC Alternative requests separation information from your company

You submit information and documentation through our secure, easy-to-use portal, and we review it for completeness

UC Alternative obtains more details on any terminations with cause to ensure you’ve selected the proper reason and formulates a winning response and submits it through SIDES

State issues a ruling on the claim

UC Alternative recommends whether to appeal the decision

UC Alternative prepares and files an appeal with the state

UC Alternative thoroughly prepares your witnesses to make successful hearing arguments

If needed, UC Alternative recommends whether to proceed to the board of appeals

– GET TO KNOW UC ALTERNATIVE –

Experience exceptional service, every step of the way

As your trusted partner, UC Alternative is just as committed to your financial and operational success as you. Our knowledgeable, responsive professionals demonstrate that commitment every day by delivering the exceptional service experience your business deserves.

UC Alternative navigates the complexities of the claims process on your behalf, customizing our program and your target savings goal to achieve the best outcomes and make the greatest business impact. We tailor our proprietary guidance questions to the specific circumstances of each separation case and train your staff to follow the policies and procedures that help us process your claims accurately and timely.

You’ll always have a wealth of actionable insights at your fingertips, thanks to the data dashboards on our portal. Along with valuable data about your UI tax rate trends and claims activity, our dashboards provide data on your quarterly benefit charges, annual benefit charge trends, number of claims won/pending/lost, and hearing win rate. We even review your benefit charge statements for accuracy, ensuring you don’t pay erroneous charges and coordinating reversals if needed. And to help you combat unemployment claims fraud, we identify and report on fraudulent claims, then help you secure timely reversals.

If you have questions about your program or need help, our highly knowledgeable and responsive support team is just a call or email away.

– CUSTOMER PORTAL –
Claims Activity
The portal dashboard presents a detailed breakdown of unemployment claims and claimants across different years, categorizing them into pending, won, and lost cases, accompanied by a visual representation of claim outcomes. The distinguishing feature of this dashboard lies in its focus on results rather than just process efficiency. Referred to as “Results Oriented,” the UI system dashboard tracks unique claims data to provide insights into the performance of clients’ unemployment programs, identifying areas for improvement and showcasing achieved savings. The service philosophy underscores the belief that all unemployment costs can be managed and controlled through proper consultation, monitoring, and compliance.
– CUSTOMER PORTAL –
UI Tax Rate Analysis
The portal provides a historical overview of Unemployment Insurance tax rates, juxtaposing it with the inception of the partnership with UC Alternative. This platform facilitates ongoing monitoring of tax rates, offering comparisons to industry benchmarks for evaluation. UC Alternative distinguishes itself through its approach to unemployment claims and tax management, conducting annual analyses of clients’ tax rates and strategizing to achieve the most competitive rates within their respective industries and states. Their mission focuses on assisting clients in winning more unemployment claims while realizing substantial tax savings.
– CUSTOMER PORTAL –
UI Tax Rate Analysis
The portal provides a historical overview of Unemployment Insurance tax rates, juxtaposing it with the inception of the partnership with UC Alternative. This platform facilitates ongoing monitoring of tax rates, offering comparisons to industry benchmarks for evaluation. UC Alternative distinguishes itself through its approach to unemployment claims and tax management, conducting annual analyses of clients’ tax rates and strategizing to achieve the most competitive rates within their respective industries and states. Their mission focuses on assisting clients in winning more unemployment claims while realizing substantial tax savings.
– WORK WITH US –

Your unemployment service FAQs answered

What does an outsourced unemployment claims management program involve?

When you outsource unemployment claims management, the vendor becomes your partner and takes ownership of this function as an extension of your team. A best-in-class vendor identifies the true cost of your unemployment claims, then develops a strategy for winning more claims upfront and on appeal, which reduces your unemployment insurance (UI) tax rate.

The vendor helps you craft a winning case by reviewing your claim notice response for completeness and accuracy, ensures your documentation is sufficient, and submits responses through the State Information Data Exchange System (SIDES). A world-class vendor also works proactively on your behalf to keep current on unemployment regulations in the states you operate in, tracks outstanding claims, ensures timely responses to avoid penalties, and provides consultative services to reduce your claims-related costs.

Why is outsourced unemployment claims management on the rise?

Two trends are encouraging employers to outsource unemployment claims management:

• Rising costs for labor, materials/supplies, insurance, and technology create a strong incentive to reduce unemployment claims costs, including UI taxes. In order to reduce UI taxes, a claims process has to be catered to the statutory definitions of misconduct and other qualifying or disqualifying factors that vary state to state. If a company does not have dedicated resources solely focused on unemployment, it is difficult to design a process that optimizes UI tax rates.

• As a strategic partner to the leadership team, HR functions have their hands full recruiting and retaining top talent, onboarding and training employees, developing succession plans, navigating the hybrid work environment, supporting employee wellness, and integrating AI into their operations. Outsourcing unemployment claims management frees their time to focus on these strategic priorities instead of transactional work.

Are there specific scenarios that indicate our organization could benefit from outsourcing unemployment claims management?

The following are four common signs that outsourcing this function would greatly benefit your business:

• Your claims are increasing because your employee base is rising (whether organically or through M&A) and the volume has become too difficult to handle in-house.

• Your HR team doesn’t have the availability or capacity to manage unemployment claims effectively. Perhaps the team is lean due to attrition, or their workload is filled with other initiatives that take priority.

• Your HR team is spending too much time on low-value but necessary claims transactions, distracting them from strategic, high-value work—like attracting, retaining, and engaging the workforce you need to succeed.

• You’ve been found insufficient in your timeliness or adequacy of responses or have paid penalties for compliance issues, such as failing to file timely claim responses or running afoul of the Unemployment Insurance Integrity Act.

How much money could we save by outsourcing unemployment claims management?

Every organization’s experience is unique, but on average the employers that outsource unemployment claims management to UC Alternative save 40% or more on unemployment claims-related costs. These savings result from winning more claims upfront and on appeal and reducing the business’s UI tax rate, ideally below the industry average in the states where you do business.

For example, an employer with 9,000 employees saved $4.2 million by driving down their UI tax rate from 1.7% to 0.5% over a three-year period, as a result of working with UC Alternative. An organization with 4,100 employees saved $900,000 over a four-year period by reducing its unemployment claim costs through our outsourced claims management services.

In addition to reducing our costs, what other advantages could we gain by outsourcing unemployment claims management?

Choosing a vendor that takes ownership for the necessary, yet labor-intensive and transactional task of managing unemployment claims frees your staff from the time-consuming administrative burden. In turn, you and your team will have more time and bandwidth to focus on strategic, high-value tasks.
Outsourcing claims management also helps you avoid the costs of adding staff dedicated for this function even as your organization grows —and provides the constant oversight necessary to stay compliant with ever-changing, state-specific unemployment laws and regulations.

How can outsourcing unemployment claims management support our other HR priorities?

Most HR teams are stretched thin by competing priorities, including the challenges of attracting, developing and retaining talent in a tight labor market, keeping the workforce engaged even when working remotely, integrating AI into HR practices, and maintaining a healthy culture. Outsourcing unemployment claims management allows your HR team to focus on these strategic and valuable initiatives on behalf of your current workforce, as opposed to spending time transacting claims on behalf of your former employees. Additionally, the complex nature of unemployment claims management, specifically across multiple states requires dedicated staffing in order to optimize tax performance, and a third-party administrator will often be more cost-effective than an internal staffing solution.

How do you set goals for our outsourced unemployment claims management program?

We do an analysis of your current and historical UI tax rates and compare them to the best performing companies for your industry and the states you operate. Then we use that data to establish multi-year objectives for lowering your UI tax rate, with the ultimate goal of reducing it below the industry average, and to its lowest possible rate, in each state where you do business. These goals become the yardstick for measuring our success.

How can you reduce our UI tax rate? Isn’t that just an uncontrollable cost of doing business?

That’s a common misconception. The truth is there is a very controllable portion of your UI tax rate. The tax rate set by the states often look at the benefit charges (claims won) that are attributable to your company over a 3 year period to establish the tax rate for each upcoming year. The tax rate is applied to a wage base, or the first set amount – established by the state – that each employee earns. Though every state varies, typically your organization’s tax rate that gets applied to the wage base is based on:

• Unemployment claims filed against your company (both the number and claims amount)

• Your taxable payroll

• Your UI taxes paid

• Total benefits charged to your UI account, also known as claims paid out to former or current employees who listed you as the most recent or base period employer

By helping you win more claims upfront and on appeal, we drive down your UI tax rate over time and directly impact three of these factors (all but your taxable payroll).

How should we measure the success of our outsourced unemployment claims management program?

You should measure the success of your program based on the business outcome the vendor delivers—not the number of transactions they process. A best-in-class vendor will quantify the cost savings directly attributable to your outsourced program, through metrics such as the number of claims won upfront, the number of claims won on appeal, and the reduction in your unemployment (UI) tax rate over time, which collectively saves your company considerably on taxes. An experienced vendor will help your organization achieve the lowest possible UI tax rate, ideally below the average for your industry in the states where you employ workers. In many instances, the tax savings will be a significantly higher dollar amount than the cost of the outsourcing, not even considering the labor savings of not having to process the claims.

How can we track the progress of our unemployment claims management program?

Your vendor should provide access to data dashboards that make it easy to track claims activity and the savings realized from your program, at the organizational level and by location.
For example, UC Alternative provides dashboards that illustrate how your UI tax rate is trending, how it compares to industry averages, and the savings generated by reducing this rate. Our reports also show your quarterly benefit charges, annual benefit charge trends, the number of claims won/pending/lost, and your hearing win rate. In addition to providing on-demand access to these dashboards, on a monthly or quarterly basis we provide at-a-glance reports that provide a wealth of information about your program.

Do you provide support for claim appeals and hearings?

Filing claim appeals and attending hearings will cost your organization considerable time and money. That’s why UC Alternative takes a proactive approach to managing unemployment claims—helping you avoid these costs and time drains by winning more claims upfront and on appeal. Your dedicated UC Alternative representative reviews lost claims, recommends whether to file an appeal, then helps you file it timely. If the appeal does go to a hearing, we diligently prepare exhibits to submit to the state and the claimant and we prepare your witnesses to testify and offer guidance that puts them at ease.

How do you charge for your outsourced unemployment claims management services?

UC Alternative has multiple pricing models that will allow you to choose what best meets the needs of your organization.

Basic Plan: The basic plan is like a pay-as-you-go plan which is best-suited for smaller employers that see a low volume of claims each year but still needs the support of a Third-Party Administrator. There is an initial set-up fee to establish the Powers of Attorney in the operating states and then a per-claim fee for processing each claim. There will be separate fees for hearing preparation and any hearing representation requested by the client.

Pro Plan: The Pro Plan is a subscription model that will cover a set amount of claims each year that allows for a budget-friendly and forecastable flat monthly fee. This plan waives setup fees and avoids additional fees for hearing preparation. The only fees incurred outside of the monthly subscription would be if the client’s claim volume goes above the set amount or if the client desires representation at hearings.

Pro Performance Plan: The Pro Performance Plan has a discounted monthly subscription rate but directly ties an incentive-based compensation to the business outcomes we deliver. UC Alternative is the only provider that uses a performance-based pricing model. The more claims we help you win, and the more we reduce your unemployment insurance (UI) tax rate, the more you save and the more we get paid. We have such confidence in our ability to deliver exceptional outcomes that we’re willing to put our compensation on the line.

Why is performance-based pricing more advantageous for our company than volume-based pricing?

A performance-based pricing model ensures your organization pays for business results, not transactional activity. It creates a strategic partnership where UC Alternative will be engaging with HR teams to not just process claims but also provide real-time feedback on policies, termination processes, documentation, and other elements that directly impact the success of winning unemployment claims and reducing benefit charges. It naturally motivates the vendor to win more claims and reduce your UI tax rate to the lowest possible by taking a strategic, proactive approach to claims management and viewing every claim as a winnable opportunity. This model shifts accountability for achieving better unemployment claims outcomes to the vendor and transfers some of the risk to their organization, since their revenue is at risk if they don’t deliver long-term, sustainable results.

But perhaps the greatest advantage of a performance-based pricing model is that it generates better outcomes and higher savings by reducing claims-related costs up to 40% or more. When you win, we win.

How does performance-based pricing generate better program outcomes?

For larger employers or for employers with higher tax rates, this pricing approach gives the vendor a strong financial incentive to take ownership of unemployment claims management and deliver better results, as measured by more claims won and a lower unemployment insurance (UI) tax rate. Performance-based pricing also shifts the vendor’s mindset: When a vendor is compensated for results, they view every claim as potentially winnable. With more skin in the game, they’re highly motivated to apply proven strategies and best practices to optimize your program outcomes.

What criteria should we use to select an outsourced unemployment claims management vendor?

Through our research and discussions with leading companies, we know most look for a partner that specializes in unemployment claims management, as opposed to a company that provides a wide variety of services. The vendor should have deep knowledge of unemployment laws and regulations and stay abreast of any changes, along with extensive experience managing claims and a long history of generating significant cost savings. They should take full ownership and provide complete oversight of the claims management function, offloading the burden of compliance and administrative work from your internal team. Having a vendor who is familiar with the unique challenges of the jurisdiction(s) you operate in as well as your industry practices allows for a tailored approach to win more claims, not just process them.

You should also assess the vendor’s commitment to client service, ensuring it’s always responsive and delivered by highly qualified support staff. And ask if they provide easy-to-use, transparent reporting that enables you to monitor your program and keep track of your savings.

Finally, look for evidence that you’re talking with a qualified, reputable vendor. For example, UC Alternative has been helping leading organizations reduce their unemployment-related costs for 30+ years and has been a recognized award-winning integrated partner of the National Association of State Workforce Associations (NASWA).

What will our unemployment claims management implementation involve?

If you choose UC Alternative as your claims management partner, you’ll find it fast and easy to get started with our service. A dedicated implementation expert will start your program quickly and with minimal effort on your team’s part, by leveraging our 30+ years of experience and deep knowledge of payroll and HRIS applications.

Soon after you sign an agreement, we conduct a kickoff meeting to discuss what we need, such as the type of employee data and the powers of attorney (POAs) for each state in which you employ workers. By week 2, we aim to have all POAs signed and submitted to the corresponding states. Concurrently, your team prepares the data files we need to manage your claims. While payroll files are ideal, we can get your program underway using employee records if needed. Assuming there are no hold-ups with receiving the necessary files, we can get your company onboarded and begin receiving your unemployment claims within a few weeks of signing the agreement. The exact timeline can vary based on the size and complexity of your organization, state timelines, and your ability to remove / turn off Powers of Attorney with any current vendor.

What will our organization’s responsibilities be if we sign on with UC Alternative?

Partnering with UC Alternative means gaining a dedicated team that takes ownership of your unemployment claims management. There are a few key responsibilities your organization will need to fulfill to ensure a smooth and effective process:

• Provide payroll data on a consistent and timely basis, aligned with your pay periods, so we can accurately track claims and manage your UI tax rate.

• Respond to separation information requests promptly, ensuring we have the details needed to build a strong case and minimize claim losses.

• Share any supporting documentation required to defend claims, such as termination records and policy acknowledgments.

• Participate in hearings, when necessary, with our team guiding you through preparation to maximize success.

• Forward any state communications related to unemployment that you may have received directly so we can follow up to close any gaps in the state connections.

By meeting these responsibilities, your organization enables us to proactively manage claims, reduce costs, and drive down your UI tax rate—while relieving your internal team of administrative burdens. Our process is designed to be seamless and efficient, ensuring minimal effort on your part while delivering maximum results.

How will you ensure the security of the data we provide?

If you choose UC Alternative as your claims management vendor, you can be confident in the security of your data. We store data on private servers in commercial Tier 4 data centers, encrypting it at rest and in transit, and conduct regularly scheduled vulnerability tests and penetration tests of our systems. The data centers, along with our operational controls, meet stringent industry standards including ISO/IEC 27001; SOC 1, 2; PCI DSS Level 1; and NIST 800-53.

What level of service and support does UC Alternative provide?

UC Alternative is committed to providing the fast, accurate service and support your business deserves. You’ll work directly with a knowledgeable representative assigned to your account—an experienced professional who is deeply committed to your success and dedicated to providing exceptional service.

Do you provide consultation to help reduce our claims-related costs?

Under our Pro or Pro Performance Plans, UC Alternative offers pre-termination consultation to your local teams to help them follow procedures that mitigate unemployment claims issues. While we don’t provide legal advice, we can advise you on whether the incident you intend to discharge an employee for will be considered valid based on the unemployment laws in your state and your policies. We can also review documentation to determine if it is sufficient to support your case and help your teams avoid missteps in the course of a discharge that could jeopardize an unemployment case. These measures help you win more claims upfront and on appeal, reducing your UI tax rate and claims costs.

Does UC Alternative have claims management experience in multiple states?

If you employ staff in multiple states or plan to expand your operation geographically, it’s vital to work with a vendor that can support your company now and as it grows. UC Alternative works with multi-state employers across the US, so we understand the nuances and complexities of unemployment laws and regulations that vary by state. No matter where you do business today or plan to operate tomorrow, UC Alternative has the expertise to support your business.

Why is UC Alternative the right unemployment claims management partner for our company?

UC Alternative has over three decades of experience helping leading organizations reduce their unemployment-related costs by winning more claims and driving down their UI tax rate. We don’t just process claims; we take a proactive, strategic approach that captures more opportunities to reduce your unemployment-related costs and relieves your HR staff of administrative burdens. Our team applies deep knowledge of unemployment laws and regulations and extensive experience managing these claims to achieve exceptional outcomes.

UC Alternative’s flexible plan or pricing options allow for an employer to get industry-leading support at one of the lowest costs in the market. For larger employers or those with high tax rates our unique, industry-first performance-based fee model ensures we’re rewarded for claim outcomes—not claim volume—giving us a strong incentive to optimize your savings by achieving the lowest possible UI tax rate for your industry in the states where you employ workers. We serve as your trusted partner, deeply committed to your success and dedicated to maximizing your savings through our proven processes, advanced technology, and superior service. Leading organizations tell us our strategic approach and long track record of success give them confidence to outsource their unemployment claims management to UC Alternative.

Does UC Alternative provide other services beyond unemployment claims management?

Yes. UC Alternative also offers employment and wage verification services that free your staff from the never-ending burden of responding to these distracting requests while delivering accurate, timely information. Bundling this service with Unemployment Claims management will also allow the client to receive discounted subscription rates.

We offer employment tax incentive services that help your business capture every hiring tax credit and incentive you qualify for at the federal, state, and local levels. We can help your organization leverage a wide range of hiring tax credits and incentives, including the Work Opportunity Tax Credit (WOTC), Empowerment Zone Credit, Indian Employment Credit, and state and location-based credits.

Employee Tax Incentives

UC Incentives helps you capitalize on every hiring tax credit and incentive you qualify for at the federal, state, and local level, driving significant savings to your bottom line. We apply 30+ years of experience, proven processes, and proprietary technology to ensure you’re capturing every opportunity.

Learn More

Free Your Staff From the Burden of Employment Verifications

UC Alternative’s UC Verify service automates and simplifies employment and income verifications and wage audits, speeding up the process and handling the work for employers.

Learn More
– REVIEWS –

See What Our Clients Have To Say

UC Alternative can help you achieve the equally important goals of driving down unemployment costs and handling claims efficiently.

“I’ve had a tremendous experience with UCA. They work tirelessly to not only deliver against our goals, but do so with excellence across the board. “

HR Shared Services, Director

“From an operational perspective, UC Alternative customized approach meets our needs. They go the extra mile for us. “

HR, Vice President

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