Retention Danger Zone: Why the First 90 Days Can Cost You Thousands in Lost Credits

When it comes to hiring, most employers focus on getting candidates through the door. But what happens after that first day on the job? For companies leveraging hiring tax credits—especially the Work Opportunity Tax Credit (WOTC)—the most critical period isn't the interview or the onboarding paperwork.

It’s the first 90 days. And it’s where businesses are quietly losing out on thousands of dollars in potential tax credits.

The Hidden Cost of Early Turnover

The Work Opportunity Tax Credit rewards businesses for hiring individuals from targeted groups who face barriers to employment. But here’s what many employers overlook:

You don’t earn the full WOTC benefit unless the employee stays on the job for a minimum number of hours—typically 120 or 400, depending on the credit category.

If an eligible employee quits or is let go before that threshold, your business may lose out on hundreds—or even thousands—of dollars per hire. Multiply that across dozens of new hires, and the cost of early attrition quickly adds up.

Why the First 90 Days Matter

This initial window is often referred to as the "retention danger zone"—a period where employees are most likely to churn due to:

• Poor onboarding experiences

• Lack of connection or communication

• Mismatch in job expectations

• Inadequate support or training

Beyond the operational impact, early turnover also puts your tax credit eligibility at risk, erasing the financial benefits you were counting on from those new hires.

How Canary Helps You Stay Out of the Danger Zone

At Canary Hiring Technologies, we combine automated WOTC tracking with real-time retention analytics to help you:

✅ Identify which hires qualify for credits
✅ Track retention thresholds and milestones
✅ Flag early turnover risk
✅ Optimize hiring and onboarding processes to improve stay rates

By making smart, data-driven decisions during the first 90 days, our platform helps you not only reduce costly turnover—but also secure every dollar of tax credit your business is entitled to.

Turn Retention Into ROI

Hiring tax credits like WOTC are meant to reward employers for creating stable, long-term job opportunities. But if your workforce doesn’t stick around, you’re essentially leaving money on the table.

Want to make sure you’re capturing every dollar and building a stronger team in the process?

📩 Let’s talk.
Learn how Canary can help you retain more employees, reduce risk, and maximize tax credit value—starting day one.