How Employee Retention Directly Impacts WOTC Credit Value
Most employers know the Work Opportunity Tax Credit (WOTC) rewards them for hiring from target groups. But what many overlook is that the true value of WOTC is tied to retention. Employees who stay longer don’t just contribute more to your workforce—they unlock significantly larger tax credits.
The Data: $400 vs. $2,400
Rockerbox analyzed recent WOTC results across multiple states and industries. The findings are clear:
* New hires who work only the minimum number of hours generate an average credit of $400.
* New hires who reach 400+ hours generate an average credit of $2,400.
That’s a 6X increase in value per employee simply by moving them from “short-term” to “retained.”
Why This Matters for Employers
Retention is more than a staffing metric—it’s a cash flow driver. Every additional employee who stays past the 400-hour mark adds thousands of dollars in tax credits, improving your company’s ability to reinvest in growth, training, and recruitment.
For example:
* A home care agency with 100 caregivers crossing the 400-hour threshold could unlock $240,000 in WOTC credits.
* The same agency with high turnover and only minimum-threshold workers might capture less than $40,000.
How to Move More Hires Into the 400+ Hour Bucket
At Rockerbox, we’ve seen that the difference comes down to screening, onboarding, and retention practices:
* Screening: Ensure all new hires are screened for WOTC eligibility at onboarding.
* Onboarding: Create processes that set new employees up for success from day one.
* Retention: Invest in the first 90 days—mentorship, flexible scheduling, and small engagement wins make a big difference.
The Rockerbox Advantage
Rockerbox doesn’t just capture WOTC credits. We help employers optimize them by tracking screening rates, employee hours, and retention benchmarks. Our integrated systems (with platforms like AxisCare, Bullhorn, UKG, UKG Pro, CareSmartz, CareerPlug, or StaffedUp) make it easy for managers to see how retention impacts cash flow in real time.
Bottom line:
Retention = Bigger Credits = Better Cash Flow.