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  • What is a Human Capital Management (HCM) System? 

    A HCM system is an integrated suite of tools that helps organizations manage their workforce more efficiently. It combines core human resources (HR) functions such as payroll, benefits administration, time tracking, and compliance management with strategic tools for talent acquisition and performance management. By centralizing employee data and automating processes, an HCM system enables businesses to make data-driven decisions and focus on growth. 

    However, as technology and workplace needs evolve, many businesses still depend on outdated HR systems that can’t keep up. While these older systems may appear to “get the job done,” the truth is that they cost much more than most business owners realize. 

    The Hidden Financial Costs 

    Increased labor and error expenses 

    Older systems often require heavy manual input, from data entry to reporting. This not only consumes valuable staff time but also increases the likelihood of mistakes in payroll, benefits, or compliance reporting. These errors can be expensive to correct and create inefficiencies that add up quickly. 

    Compliance penalties 

    Regulations on data privacy, wages, and employee classification constantly evolve. Outdated systems may not adapt to new laws, risking fines or audits. Non-compliance with regulations such as the Fair Labor Standards Act (FLSA), the Affordable Care Act (ACA), or data protection standards can lead to costly penalties.

    Maintenance costs 

    Outdated HR systems often rely on on-premises hardware or outdated software licenses that need ongoing maintenance, power, and information technology (IT) support. These hidden costs can exceed the cost of a modern, cloud-based solution, especially when considering downtime or lost productivity due to system failures. 

    Operational Setbacks 

    Lost productivity 

    Manual processes slow everything down, from onboarding new hires to approving time-off requests. Employees and HR teams waste hours navigating interfaces, searching for information, or entering data across disconnected systems.  

    Limited insights and poor decision-making 

    When HR, payroll, and benefits data are kept in different systems, analyzing workforce trends and making strategic decisions become challenging. Without access to real-time workforce metrics, leaders may rely on outdated or incomplete information, increasing the risk of poor decision-making. 

    Cybersecurity risks 

    Older HR systems often lack advanced security features and encryption, making them more vulnerable to breaches or ransomware attacks that could expose sensitive employee information. These incidents can be costly for businesses both financially and in terms of reputation. 

    Talent and Culture Impacts 

    Damaged employer brand 

    An outdated HR system impacts internal operations and candidate perception. Long applications, old portals, and slow responses frustrate candidates, who may then prefer more modern, tech-savvy organizations. 

    Lower employee engagement and retention 

    When employees experience repeated frustration with HR systems, such as requesting time off, accessing pay stubs, or enrolling in benefits, it can cause dissatisfaction and increased turnover. The modern workforce expects digital tools that simplify their experience rather than complicate it. 

    Weakened talent strategy 

    Without automation, analytics, or mobile features, businesses miss chances to engage, develop, and retain talent. Outdated technology hinders performance tracking, career development, and recognition, all of which are essential for creating a strong, competitive workforce. 

    Preparing for the Future with GMS 

    As businesses plan for 2026 and beyond, modernizing HR technology is crucial. The right system saves time, reduces risk, and lets teams focus on strategic growth instead of manual tasks. 

    GMS Connect, our all-in-one HR platform, provides business owners with the tools they need to confidently manage their workforce. Featuring payroll, benefits administration, HR compliance, and performance management, all integrated into one secure platform. GMS Connect eliminates the inefficiencies and risks associated with outdated systems. 

    Partnering with Group Management Services (GMS) gives you access to modern technology, expert HR support, and a system built to grow with your business. The expense of maintaining an outdated HR system is high, but the benefits of upgrading with GMS are even greater. Request a demo of GMS Connect today!  

  • As we head into 2026, small businesses continue to navigate a competitive hiring landscape. Talent is in high demand, and larger companies often have the resources to offer higher salaries, more benefits, and stronger name recognition. But that doesn’t mean small businesses are at a disadvantage.  

    With the right strategy, small businesses can stand out, attract top candidates, and create workplaces where employees want to stay. Understanding hiring trends, offering a strong employee experience, and partnering with a professional employer organization (PEO) like Group Management Services (GMS) can make all the difference. 

    Understanding the 2026 Talent Landscape 

    Hiring in 2026 continues to evolve as employees want more flexibility, meaningful work, and better benefits. Several trends are influencing how candidates choose employers. 

    1. Artificial intelligence (AI) is increasingly used for sourcing, screening, and onboarding, making hiring faster and more data-driven. 
      1. Skills-based hiring is replacing traditional degree requirements as employers prioritize proven abilities and adaptability. 
      1. Candidates are finding jobs through social media, professional networks, and personal recommendations instead of just job boards. 
      1. Employer reputation and employee experience are major factors in how candidates compare job offers. 
      1. Remote and hybrid work options are widely expected, and talent competition is no longer limited by location. 

      For small businesses, this means the playing field is larger and more competitive. To stand out, you need more than a job description. You need a clear mission, flexible work options, and benefits that make employees feel valued. 

      How Small Businesses Can Compete 

      Create a strong employee value proposition 

      Candidates want to know what makes your business a meaningful place to work. Highlight opportunities for growth, impactful work, supportive leadership, and flexible work-life balance. A clear and genuine message helps candidates connect with your company on a personal level. 

      Use flexibility as an advantage 

      Small businesses can often make decisions faster than larger organizations. Offer hybrid schedules when possible, encourage employee contributions, and give them room to grow into new responsibilities. This freedom is something many employees seek but may not find at larger corporations. 

      Improve benefits and growth opportunities 

      Even with limited budgets, employees still expect solid health care plans, retirement options, mental health support, and learning opportunities. Providing mentorship, training, and clear career paths shows employees that your business invests in their future. 

      Strengthen hiring and retention systems 

      Professional recruiting practices matter. Use applicant-tracking tools, streamline your interview process, respond quickly to candidates, and ensure new hires feel welcome from day one. A positive candidate and employee experience helps reduce turnover and builds a strong reputation. 

      The Role of a PEO in Competing for Talent 

      A PEO gives small businesses the power to offer the benefits and human resources (HR) support usually reserved for large companies. Here is how a PEO helps: 

      Access to high-quality benefits 

      A PEO groups many small businesses together, allowing them to offer health insurance, retirement plans, life and disability coverage, and employee perks at competitive rates. This helps smaller employers present benefit packages that impress candidates.

      Less administrative pressure  

      Payroll tax filing, workers’ compensation, benefits administration, and HR compliance take time away from business growth and hiring efforts. A PEO handles those responsibilities so owners and managers can focus on strengthening their workplace and building strong teams. 

      Support for recruiting and HR technology 

      Many PEOs offer tools for posting jobs, tracking applicants, and managing onboarding. This gives small businesses a more professional and streamlined hiring process and improved access to qualified candidates. 

      Confidence to grow and scale 

      When compliance benefits and HR systems are handled by a PEO, owners can hire faster, expand into new locations, and confidently take on new opportunities. Ambitious employees are more likely to join a company that is ready to grow. 

      How GMS Helps Businesses Win Top Talent 

      Small businesses do not need to fall behind in the competition for talent. By embracing new hiring trends, being intentional about company culture, and partnering with a PEO like GMS, small businesses can offer strong benefits, meaningful work, and long-term growth.  

      Ready to elevate your hiring strategy and attract top talent in 2026? Contact us today! 

    1. Keeping employees safe isn’t a one-time initiative. It’s an ongoing responsibility that evolves with the seasons. From icy sidewalks in winter to heat exposure in summer, every time of year brings unique workplace hazards and compliance deadlines to manage. 

      For business owners, staying ahead of these risks while handling daily operations can be challenging. That’s where Group Management Services (GMS) comes in. As a professional employer organization (PEO), we help protect your team and your business throughout the year with proactive safety programs, Occupational Safety and Health Administration (OSHA) compliance support, and continuous employee training. Our goal is to make sure your company remains safe, compliant, and productive, no matter the season. 

      Safety Risks Change Every Season 

      Each season presents its own safety challenges, and staying compliant requires awareness and preparation. 

      Spring: As operations ramp up and new projects begin, many businesses bring on seasonal or temporary workers. GMS provides safety onboarding programs and tailored training to ensure every new team member understands workplace procedures and hazard awareness. 

      Summer: Rising temperatures increase the risk of heat-related illnesses and outdoor work hazards. GMS provides heat safety training, risk assessments, and guidance to help you comply with OSHA’s Heat Illness Prevention standards. We also help manage travel safety protocols during this busy season. 

      Fall: This is the perfect time for safety audits and preparation for the winter months ahead. GMS helps conduct risk assessments, update your safety policies, and schedule refresher trainings to ensure your workplace remains safe as conditions change. 

      Winter: Cold weather often leads to slippery surfaces, increasing the risk of slips, trips, and falls. Businesses must also ensure OSHA recordkeeping requirements are filed by March 2. GMS helps you prevent injuries through seasonal safety plans, walkway maintenance strategies, and compliance management. 

      With GMS’ support, your business stays proactive instead of reactive. We help you prevent accidents, stay compliant with safety regulations, and protect your employees year-round. 

      Comprehensive Risk Management and Compliance Support 

      Managing safety is more than avoiding accidents. It’s about maintaining compliance and reducing liability exposure. GMS provides expert support to help your business stay current with changing federal, state, and industry-specific regulations. 

      Our services include: 

      1. Workplace safety program development. We create and implement custom safety programs designed for your industry’s unique risks. 
      1. Employee safety training. We provide on-site and virtual training sessions covering topics such as hazard communication, emergency procedures, and equipment safety. 
      1. OSHA compliance and reporting. Our team tracks deadlines and ensures your workplace meets all regulatory standards. 
      1. Risk assessments and loss control. We identify potential hazards and provide recommendations to prevent injuries and improve safety culture. 
      1. Workers’ compensation administration. GMS manages claims, supports investigations, and offers options to improve cash flow and reduce surprises during audits. 

      When you partner with GMS, you gain access to a team of experienced underwriters, loss control specialists, and claims managers who are dedicated to protecting your people and your business. 

      A Safer Workplace Builds a Stronger Team 

      Workplace safety not only prevents injuries but also promotes trust, morale, and retention. When employees know their well-being is a top priority, they feel more confident and engaged. 

      GMS helps foster a positive culture by implementing programs that prioritize employee safety. Our proactive approach reduces workplace injuries and creates a better environment for everyone on your team. Whether you’re managing office staff, field employees, or both, GMS gives you the tools and resources to keep your team safe, healthy, and motivated in every season. 

      Partner with GMS to Simplify Compliance 

      From OSHA deadlines to seasonal safety risks, there’s a lot to keep track of. You don’t have to do it alone. Let GMS handle the complexities of workplace safety so you can focus on growing your business and supporting your team. 

      Contact GMS today and keep your workplace safe, compliant, and protected all year long. 

    2. Running a small business requires managing multiple responsibilities simultaneously. Beyond sales, operations, and customer service, small business owners often find themselves acting as the human resources (HR) department as well. While it may not be your primary focus, understanding core HR principles can make a significant difference in how effectively your business attracts, manages, and retains talent. 

      The following HR skills are essential for establishing a strong foundation and fostering a positive workplace culture as your business expands. 

      Effective Communication 

      Clear and consistent communication is essential for successful leadership. Whether you’re writing job descriptions, explaining policies, conducting performance reviews, or addressing workplace concerns, it’s important to communicate with transparency and respect. Strong communication builds trust and aligns everyone across your organization. 

      Talent Acquisition and Hiring 

      Recruiting and selecting the right employees is one of the most vital HR functions. A deliberate hiring process ensures that new team members not only have the necessary skills but also align with your company’s mission and values. Implementing structured hiring practices helps reduce turnover and foster a strong, dependable team. 

      Onboarding and Offboarding 

      The employee experience begins and ends with HR processes. A well-designed onboarding program helps new hires feel welcomed, informed, and confident in their roles, which boosts engagement and productivity. Similarly, professional and compliant offboarding practices protect your company’s reputation and provide valuable insights through exit interviews and the collection of feedback. 

      Legal Compliance and Payroll Accuracy 

      Compliance is one of the most complex areas of HR. Small business owners must stay informed about labor laws, wage regulations, benefits administration, and tax reporting. Mistakes in payroll or compliance can lead to costly penalties and employee dissatisfaction. Establishing reliable systems and keeping policies up to date are essential for managing these risks. 

      Conflict Resolution and Employee Relations 

      Workplace conflict is inevitable, but how it is managed determines its effect on team morale and productivity. Developing skills in mediation and problem-solving helps you address issues objectively and steer employees toward fair and effective outcomes. Staying professional and empathetic during these situations builds trust and maintains a positive workplace environment. 

      Process Management and Organization 

      Effective HR management relies on consistent processes and organization. From tracking employee records and certifications to maintaining performance review schedules, structured systems ensure accuracy and efficiency. Establishing clear workflows and documentation supports compliance and helps your HR operations grow as your business expands. 

      Employee Engagement and Wellbeing 

      Your employees are your most valuable asset. Supporting their physical, mental, and emotional well-being is crucial for maintaining motivation and reducing turnover. Developing programs that promote wellness, recognition, and career growth demonstrates that your organization values its people, leading to increased engagement and retention. 

      Emotional Intelligence and Leadership 

      Emotional intelligence is an essential skill for any leader. The ability to understand and respond to the needs and emotions of others helps foster a respectful and supportive workplace culture. Showing empathy and fairness builds credibility and encourages open communication among employees. 

      Partnering with GMS for HR Outsourcing 

      Managing all of these HR responsibilities while also running a business can be overwhelming. Staying compliant, maintaining accurate payroll, managing employee relations, and keeping up with new regulations require time, expertise, and attention to detail.

      Group Management Services (GMS) offers a comprehensive HR back office solution for your business. We handle the administrative and compliance burdens associated with HR management, allowing you to focus on growing your business. Our team ensures your job descriptions are compliant, onboarding programs are seamless, and employee management systems are efficient and effective. 

      With GMS, you gain the expertise of an experienced HR team without the expense of building one in-house. We help you remain compliant, manage your employees, and maintain a healthy workplace culture, allowing you to concentrate on driving your business forward. 

    3. As the year comes to a close, many business owners and managers are preparing for year-end performance reviews, one of the most important and sometimes most dreaded tasks on the human resources (HR) calendar. 

      When done right, performance reviews can do more than assess past results. They can boost engagement, strengthen company culture, and set the tone for growth in the year ahead. But when they’re rushed or unclear, they can leave employees disengaged and managers frustrated. 

      Continue reading to learn how to make your year-end performance reviews more efficient and impactful for both your team and your business. 

      1. Start With Clear Goals  

      Before you begin the review process, revisit the goals and expectations you set at the beginning of the year. Were they measurable? Realistic? Still aligned with your company’s priorities? 

      Managers should assess both individual and organizational performance to ensure reviews focus on results, development, and contribution to the company’s mission. 

      If you haven’t documented goals throughout the year, now is the time to establish a more structured approach for next year. Setting clear, trackable objectives from the start makes year-end evaluations far more effective. 

      2. Gather Data Throughout the Year 

      Effective reviews rely on evidence, not memory. Pull together data from across the year, such as project outcomes, client feedback, attendance, sales metrics, and peer input. 

      Encourage managers to consistently track performance, rather than waiting until the end of the year. Whether it’s through weekly check-ins, one-on-one meetings, or monthly touchpoints, choose what works best for your team. Doing so ensures fairness and helps identify patterns and opportunities for coaching long before the year-end meeting. 

      HR software or performance tracking tools, such as GMS Connect, can make this process far more manageable by centralizing employee data and documentation. 

      3. Focus on Two-Way Communication 

      Performance reviews shouldn’t feel like a lecture. Create space for open, two-way dialogue. Encourage employees to share their own reflections on what they’re proud of, where they’ve faced challenges, and what support they need to grow. 

      This not only builds trust but also helps managers uncover valuable insights into team dynamics, training needs, and potential leadership development. 

      Consider asking open-ended questions such as: 

      1. What accomplishments are you most proud of this year? 
      2. What obstacles stood in your way? 
      3. What skills or projects do you want to explore next year? 

      4. Balance Accountability  

      Recognizing achievements while addressing areas for improvement is key to a meaningful performance review. Feedback should be framed as an opportunity for growth, not as criticism. 

      For example, instead of saying, “You didn’t meet deadlines,” try, “Let’s explore what caused delays and how we can set you up for success next quarter.” 

      The key to a strong review is balancing accountability for results with support for professional development. 

      5. Set Clear Next Steps 

      Every performance review should end with actionable next steps. Define goals for the coming year, identify any training needs, and clarify how success will be measured. 

      This creates alignment between the employee’s growth and the company’s strategic objectives. It also ensures both parties leave the conversation with clarity and motivation for the following year. 

      6. Support Managers With the Right Tools  

      Even experienced managers can struggle to conduct consistent, unbiased reviews. Providing training and templates, or partnering with an HR expert, can help create a fair and standardized process across your organization. 

      Performance management is not just about once-a-year conversations. It is an ongoing commitment to employee development, engagement, and retention. 

      Simplify Year-End Reviews With GMS 

      At Group Management Services (GMS), we help business owners take the stress out of HR management, including performance reviews. Our employee performance management services provide structure and support for conducting effective evaluations, developing employees, and maintaining compliance. 

      GMS supports your performance review process from beginning to end by helping you set clear goals, monitor progress, coach employees, and maintain thorough documentation. This structured approach drives performance, enhances engagement, and ensures alignment with your company’s mission. 

      You don’t have to manage employees and compliance alone. Partner with GMS to streamline your HR operations so you can focus on growing your business with confidence. 

    4. Seasonal workers play a crucial role in helping businesses handle spikes in demand during busy times of the year, especially the holiday season. From retail stores and restaurants to warehouses and hospitality, seasonal employees ensure operations run smoothly when customer volume is at its peak.  

      While seasonal employment may be temporary, effectively managing these workers is key to maximizing productivity, ensuring compliance, and creating a positive employee experience. Here are some best practices for hiring and managing seasonal employees this holiday season. 

      What Is a Seasonal Job? 

      A seasonal job refers to temporary employment during specific times of the year when businesses experience increased demand. These roles typically last for a few weeks or months and are tied to predictable events such as holiday shopping, summer jobs, winter tourism, or peak dining seasons. 

      Seasonal jobs are temporary by design, following predictable cycles based on calendar events or industry trends. Many offer flexibility in scheduling, which makes them attractive to students, retirees, or individuals looking for supplemental income. Seasonal positions can be found across industries such as retail, hospitality, agriculture, tourism, event planning, and more. 

      Tips for Managing Seasonal Employees 

      Start with a Clear Hiring Process 

      A strong seasonal hiring strategy sets the tone for success. Job postings should clearly state that the role is temporary and define the length of employment. Employers should also consider using “at-will” employment agreements, which provide flexibility while ensuring compliance with applicable laws. 

      It is equally important to classify workers correctly. Seasonal employees are generally considered W-2 employees rather than independent contractors. Misclassification can lead to compliance issues and penalties. 

      Provide Comprehensive Onboarding and Training 

      Seasonal employees often face steep learning curves with little time to adjust. A structured onboarding program helps them succeed by covering company policies, customer service expectations, and compliance standards. Training should also include opportunities for cross-training, allowing employees to assist in multiple areas as needed. 

      Offer Competitive Pay and Incentives 

      During the holiday rush, seasonal workers have many employment options. To attract and retain top talent, businesses should offer competitive hourly wages that align with industry standards and the local cost of living. Employers should be transparent about overtime opportunities and pay policies. 

      Performance-based incentives, such as bonuses for meeting sales or productivity goals, can boost motivation. Seasonal premiums or sign-on bonuses may also encourage employees to commit to the entire busy period.

      Prioritize Flexibility in Scheduling 

      Many seasonal workers value flexible schedules just as much as fair pay. Whenever possible, employers should offer shifts that accommodate students, parents, or individuals with other commitments. Predictable scheduling practices can also reduce last-minute call-offs and improve morale. 

      Keep Communication Open 

      Even if their employment is short-term, seasonal employees should feel included and informed. Regular check-ins are an effective way to provide feedback, address questions, and acknowledge achievements. Clear communication about expectations, scheduling, and performance goals helps reduce confusion and keeps employees engaged. 

      The Importance of Compliance and Labor Laws 

      Compliance is one of the most critical aspects of managing seasonal employees. Employers must follow federal, state, and local laws regarding wages, overtime, scheduling, and workplace safety. Failing to comply can lead to costly fines, lawsuits, and damage to a company’s reputation. 

      Businesses should pay close attention to: 

      1. Wage and hour laws: Ensure seasonal employees receive at least minimum wage and proper overtime pay. 
      2. Workplace safety regulations: Seasonal workers are entitled to the same safety protections as full-time staff. 
      3. Employee classification: Seasonal workers are usually employees, not independent contractors. 
      4. Recordkeeping requirements: Employers must maintain accurate time and payroll records for all staff. 

      In addition to legal compliance, it is important to foster a workplace culture that promotes fairness and inclusivity. Seasonal workers should feel respected and valued regardless of their short tenure. This not only reduces turnover but also increases the likelihood that employees will return for future seasons. 

      Plan Ahead for Retention and Future Seasons 

      Even though seasonal workers may only stay for a few months, investing in their experience can pay off long-term. Recognizing contributions with thank-you notes, small perks, or employee discounts can make them feel appreciated. Collecting feedback at the end of the season also provides valuable insights into improving the hiring and training process for the next busy cycle. 

      Retaining strong seasonal workers year after year reduces hiring costs and ensures businesses have experienced staff ready to step in when demand rises again. 

      How GMS Can Help 

      Managing seasonal employees during the holidays can feel overwhelming, especially when you are also balancing the needs of your full-time workforce. That is where Group Management Services (GMS) can help. 

      As a professional employer organization (PEO), GMS works with businesses to: 

      1. Simplify seasonal hiring and onboarding 
      2. Stay compliant with labor laws 
      3. Offer competitive benefits and perks to attract talent 
      4. Manage payroll and payroll tax management

      Seasonal employees are essential to your success during the busiest time of year. With the right strategies, you can build a seasonal workforce that boosts productivity, strengthens customer service, and keeps your business running smoothly. 

      Contact GMS today to learn how we can streamline your seasonal hiring and employee management this holiday season. 

    5. In small businesses, every decision matters, especially when it comes to human resources (HR). Too often, HR is reactive, responding to problems only after they arise. However, when HR is proactive, it becomes a strategic advantage, driving better compliance, a stronger culture, improved retention, and lower costs. For small and midsize businesses, making that shift isn’t always easy. That’s where a professional employer organization (PEO) comes in. With the right PEO partner, HR becomes less about putting out fires and more about building a strong foundation for growth. 

      What Is Reactive HR? 

      Reactive HR refers to managing issues after they arise. For example, hiring happens only when a vacancy becomes urgent. Performance issues are handled only when they escalate. Compliance problems are addressed only when an audit is already underway. This approach often means constantly responding to crises with little room for long-term planning. The result is a greater risk of mistakes with labor law compliance, lower employee morale, higher turnover, and unexpected costs that could have been avoided. 

      What Is Proactive HR? 

      Proactive HR involves planning ahead and responding to problems as they arise, rather than simply reacting to them. It’s about building systems, processes, and a workplace culture that prevents issues before they happen. This approach aligns HR strategy with business goals from the start. 

      For example, companies that take a proactive stance forecast hiring needs, invest in leadership development, regularly review compensation to stay competitive, and stay ahead of employment law changes.  

      This approach helps businesses avoid costly surprises, reduce legal risks, retain more talent, and build a reputation as a great place to work. Proactive HR creates stability, improves morale, and lays the foundation for long-term growth. 

      Proactive vs Reactive HR In Practice 

      The difference between proactive and reactive HR becomes clear when you look at everyday workplace situations. 

      1. In hiring, reactive businesses scramble to fill roles only after someone leaves. Proactive businesses anticipate staffing needs and build a pipeline of potential candidates. 
      1. When it comes to compensation and benefits, reactive employers typically make changes only after complaints or turnover occur. Proactive employers regularly benchmark pay and review benefits to stay competitive. 
      1. Compliance follows a similar pattern. Reactive employers update policies only after audits or legal issues arise. Proactive employers routinely review handbooks and stay ahead of changing regulations. 
      1. Training and development also show the contrast. Reactive employers offer training only when employee performance drops. Proactive employers invest in ongoing learning and leadership development. 
      1. Even company culture reflects this divide. Reactive HR responds to low morale after turnover spikes. Proactive HR continuously gathers feedback and works to strengthen engagement. 

      Why Businesses Should Lean Into Proactive HR 

      Small and midsize businesses face unique challenges when HR is reactive. With limited staff and resources, even minor missteps can have major consequences. A compliance error might lead to costly penalties. Unfilled roles or unexpected turnover can slow growth. And low morale can drive turnover that small businesses simply can’t afford. 

      Taking a proactive approach helps prevent these issues before they escalate. By anticipating needs and planning ahead, small businesses can reduce turnover and training costs, avoid compliance risks, and attract stronger talent. It also positions them to scale more smoothly when new opportunities arise. 

      How A PEO Helps You Be Proactive 

      A PEO is a valuable partner for small businesses that want to shift from reacting to planning ahead. PEOs provide access to HR specialists and compliance experts who monitor labor law, tax law, and workplace safety requirements. This reduces the risk of being caught off guard by unexpected changes in regulations. 

      PEOs also deliver the tools and infrastructure that make proactive HR possible, including HR technology platforms, employee handbooks, and performance management systems. They offer access to competitive benefits packages by leveraging their buying power, which allows small businesses to attract and retain talent more effectively. Additionally, PEOs offer training resources to help employees develop skills and prepare for leadership roles. 

      Most importantly, PEOs help mitigate risk through policy reviews, audits, and proactive planning, ensuring businesses are prepared rather than left scrambling when issues arise. 

      Why Outsource HR To GMS 

      For small and midsize businesses, proactive HR can feel like an overwhelming goal without the right support. Outsourcing to a PEO like Group Management Services (GMS) allows you to achieve proactive HR management without building an in-house department.  

      The price of reacting to problems after they happen is often much higher than planning ahead. Partnering with a PEO allows small businesses to focus on their core mission while ensuring that HR management is strategic, compliant, and growth-oriented. Be proactive and schedule a chat with us today! 

    6. Nonprofits are driven by purpose, whether it’s feeding the hungry, protecting the environment, or advocating for change. As demand increases and budgets tighten, many organizations struggle to keep up with administrative tasks like payroll, compliance, and benefits management. Professional employer organizations (PEOs) are stepping in as strategic partners, transforming how nonprofits operate, grow, and stay focused on their mission. 

      Managing Limited Resources 

      Funding continues to be one of the most significant challenges for nonprofits. With charitable giving slowing and inflation putting pressure on budgets, organizations are expected to deliver more impact with fewer resources. At the same time, a decline in volunteer participation has placed additional responsibilities on already stretched staff. PEOs offer a practical solution by helping nonprofits maximize their limited resources. By streamlining administrative tasks such as payroll, benefits, and compliance, a PEO reduces overhead costs and frees up time and budget to focus on mission-driven programs and services.  

      Addressing Administrative Overload 

      Running a nonprofit means wearing many hats. From fundraising and delivering programs to coordinating volunteers and managing day-to-day operations, the workload is nonstop. With small teams and limited time, handling complex human resources (HR) tasks, such as onboarding, payroll, benefits, and compliance, can quickly become overwhelming. That’s where a PEO can make a big difference. By partnering with HR experts, nonprofits can hand off these time-consuming responsibilities and focus more on their mission.  

      Offering Benefits That Support Recruitment, Retention, and Well-Being 

      Recruiting and retaining staff is another ongoing challenge. Nonprofits often cannot compete with the private sector on salary alone, but benefits can make a critical difference. PEOs enable even small organizations to offer comprehensive benefits packages that include health, dental, vision, and retirement plans. These offerings increase competitiveness in the job market and improve employee morale. 

      In addition to traditional benefits, PEOs also provide access to wellness programs and employee support resources that help combat burnout. This is especially important in nonprofits, where staff are often stretched thin and deeply invested in their work. Supporting well-being helps maintain energy and engagement, which in turn strengthens the organization’s ability to deliver on its mission. 

      Mitigating Risk with Compliance and Safety Expertise 

      Nonprofits must navigate a complex maze of regulations, ranging from wage and overtime laws to grant-specific reporting requirements and rules governing the classification of volunteers. Staying compliant with evolving legislation is challenging, and mistakes can be costly. PEOs provide compliance expertise that helps organizations avoid penalties, protect their resources, and maintain credibility with boards, donors, and the communities they serve. 

      Simplifying Payroll and HR Processes 

      Payroll, taxes, benefits enrollment, and HR paperwork all take time away from advancing the mission. A PEO streamlines these processes, serving as your back office by providing accurate payroll, efficient benefits administration, and responsive HR support. This enables nonprofit leaders to dedicate more time to cultivating relationships with donors, engaging with the community, and expanding their programs. 

      Enabling Strategic HR Management 

      Nonprofit teams often react to HR issues as they arise rather than planning proactively. PEO services enable the transition from short-term problem-solving to long-term workforce planning. From performance management tools to employee development resources, PEOs help nonprofits strengthen their teams, enhance their culture, and develop strategies that support sustainability and growth. 

      Why Nonprofits Should Consider Partnering with GMS 

      Whether your nonprofit supports education, health, social services, the environment, or community development, Group Management Services (GMS) understands the unique challenges of mission-driven organizations. We deliver flexible PEO solutions tailored to the nonprofit sector, providing expert HR management, access to high-quality benefits, compliance support, and reliable payroll services. 

      When operations run smoothly and risks are managed proactively, nonprofits are positioned to grow stronger, serve more effectively, and sustain their vision with confidence. Schedule a 15-minute chat with us to learn how we can support your nonprofit! 

    7. Paid time off (PTO) is one of the most valued benefits an employer can provide. Employees rely on it to recharge, spend time with their families, or attend to personal matters. However, from the employer’s perspective, PTO can quickly become a challenge to manage. Overlapping requests, unclear policies, and manual tracking systems can lead to frustration, scheduling gaps, or even compliance issues. By implementing the right structure, small businesses can effectively manage PTO while supporting employee satisfaction and ensuring business continuity. Continue reading for tips on simplifying PTO management:  

      Establish Clear Policies 

      The foundation of effective PTO management starts with a well-defined policy. When employees understand how much time they are eligible to take, how PTO accrues, and the process for requesting time off, it creates transparency and reduces confusion. Your policy should outline everything from blackout periods to approval procedures and whether unused time rolls over into the following year. A clear policy not only helps employees plan but also gives managers a framework for making consistent decisions. 

      Encourage Advance Planning 

      Last-minute PTO requests can create significant operational challenges, particularly for small businesses with limited staff. Encouraging employees to submit requests well in advance helps managers plan workloads, delegate responsibilities, and ensure coverage for critical tasks. While unexpected situations will always arise, setting an expectation for advance notice helps prevent disruptions and reduces the stress of scrambling to fill staffing gaps. 

      Standardize the Request Process 

      Consistency is key when it comes to managing time off. Without a standardized request process, it’s easy for requests to get lost in email chains or forgotten in conversations. Establishing a formal method, whether through an online system or a dedicated human resource (HR) platform, ensures that every request is documented and easily tracked. A streamlined process also makes it easier for managers to review overlapping requests and make fair, timely decisions. 

      Provide Transparency Around Scheduling 

      When employees can see who has already scheduled time off, they are more likely to make thoughtful requests that minimize overlap. A shared PTO calendar is a simple yet effective tool for improving visibility and coordination. Transparency in scheduling not only reduces conflicts but also builds trust among employees, as everyone understands how decisions are being made. 

      Plan for Coverage 

      One of the biggest concerns managers face with PTO is ensuring that key responsibilities don’t slip through the cracks while someone is away. Proactive planning is essential, especially for employees in client-facing or highly specialized roles. Assigning backup contacts, cross-training staff, and documenting ongoing projects can keep operations running smoothly. With the right preparation, PTO becomes a seamless part of business rather than a disruption. 

      Maintain Fairness and Flexibility 

      Not every request can be approved, particularly around popular times of the year. That’s why it’s important to have a fair approval system in place. Whether you follow a first-come, first-served model, prioritize seniority, or rotate approvals, employees will feel more comfortable if they know the rules are applied consistently and fairly. At the same time, maintaining some flexibility, such as offering alternative dates or allowing remote work options during busy seasons, can help balance business needs with employee satisfaction. 

      Use Technology to Track PTO 

      Manually tracking PTO through spreadsheets or paper forms may be effective for very small businesses, but as teams grow, this approach becomes increasingly risky and inefficient. Modern HR technology streamlines the process by automatically tracking accruals, balances, and approvals in real-time. With the right system in place, managers can instantly see who is off, identify potential conflicts, and maintain accurate records for compliance purposes. Employees also benefit from being able to check their PTO balances and request time off without guesswork or delays. 

      How GMS Can Help 

      Group Management Services (GMS) provides small businesses with the tools and expertise to streamline the PTO process and eliminate common headaches. Our all-in-one HR software, GMS Connect, simplifies the process of tracking PTO requests, balances, and approvals. Our timekeeping solutions integrate seamlessly to ensure accuracy, while our team of HR experts can help you design and implement policies that are both compliant and effective. By leveraging GMS’ technology and support, small businesses can transform PTO management from a time-consuming task into a smooth, transparent process. Contact us today to get started! 

    8. An audit can be a daunting experience for any business owner. Government agencies expect your policies, records, and employee practices to align with current laws and regulations. When they don’t, the consequences can include penalties, fines, or even legal disputes. 

      Many human resources (HR) compliance issues aren’t the result of intentional neglect. More often, they happen because businesses are stretched thin and lack the time or resources to keep up with constantly changing requirements. 

      Staying prepared starts with understanding where mistakes most commonly occur and implementing the right processes to prevent them. In this blog, we’ll highlight the most frequent HR missteps and share practical ways to avoid unwanted attention from government regulators. 

      Outdated Employee Policies

      One of the most frequent errors companies make is failing to maintain an up-to-date employee handbook. Too often, businesses create a handbook once and never revisit it. However, laws and regulations around workplace safety, discrimination, wage and hour rules, and leave policies are constantly evolving. This can lead to inconsistent practices, employee confusion, and increased vulnerability during an audit. 

      To stay compliant, businesses should review and update their employee handbook at least annually, or whenever there are significant changes in employment law. Partnering with an HR expert or legal advisor can help ensure your policies reflect current requirements and industry best practices. 

      Lack of Documentation 

      Poor documentation is one of the most common and costly HR mistakes. When businesses fail to keep accurate records of employee performance, disciplinary actions, and terminations, they leave themselves vulnerable to legal challenges. Without a clear paper trail of performance conversations, warnings, and progressive discipline, it becomes difficult to defend against claims of wrongful termination or discrimination. 

      From an auditor’s perspective, missing or incomplete documentation signals that policies may not be applied consistently across the organization. This inconsistency can quickly raise red flags and lead to deeper scrutiny.

      To mitigate risk, businesses should implement a standardized process for documenting employee interactions and ensure that managers are trained to follow it. Consistent, detailed records not only protect the company but also promote fairness and transparency in the workplace. 

      Employee Misclassification 

      Misclassifying employees is a frequent and costly error that can lead to serious compliance issues. Determining whether a worker should be classified as an employee or an independent contractor, or whether they qualify for exempt or non-exempt status, requires careful consideration of federal and state guidelines. 

      Even when mistakes are unintentional, they can result in back pay, wage disputes, tax liabilities, and penalties. These issues often arise when businesses rely on outdated job descriptions or make assumptions without reviewing current labor laws. 

      To avoid these risks, companies should regularly evaluate job roles and responsibilities to ensure proper classification. Working with HR professionals or legal advisors can help confirm that classifications are accurate and compliant with the latest regulations. 

      Poor Recordkeeping Practices 

      Maintaining accurate and secure records is a critical part of HR compliance, yet it remains a common challenge for many businesses. From I-9 forms and payroll records to sensitive employee information, companies are required to follow strict guidelines regarding how long records must be retained and how securely they should be stored. 

      Losing or mishandling these documents can create serious audit risks. It can also expose the business to identity theft concerns or violations of laws such as the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and the Health Insurance Portability and Accountability Act (HIPAA). 

      To stay compliant, businesses should implement a reliable recordkeeping system, ensure secure storage of sensitive information, and regularly review retention policies to align with current legal requirements. 

      Falling Behind on Employment Laws

      One of the most significant risks businesses face is failing to stay current with evolving employment laws. Regulations around minimum wage, overtime, paid leave, and workplace protections are constantly changing at both the federal and state levels. 

      What was compliant last year may no longer meet today’s standards. Without a system in place to monitor and respond to these updates, businesses can quickly fall behind and face penalties, fines, or legal action. 

      To remain compliant, companies should regularly review legislative updates, subscribe to trusted HR or legal resources, and consider working with professionals who specialize in employment law. Staying informed is essential to protecting your business and your employees. 

      GMS Helps You Stay Compliant 

      The good news is that these HR mistakes are preventable. HR compliance does not have to be overwhelming, but it does require a proactive approach. By regularly auditing your HR processes, keeping policies current, and maintaining accurate records, you can significantly reduce your risk of an audit. 

      Partnering with an experienced HR provider like Group Management Services (GMS) makes this process even easier. Our HR professionals conduct thorough HR audits to identify gaps, update your practices, and ensure you are following the latest regulations. We also provide the technology and support you need to manage employee records, streamline compliance tasks, and protect your business from unnecessary risk. 

      Compliance should not be something you only think about after a problem arises. With GMS by your side, you can stay ahead of changing requirements, minimize the chance of costly audits, and focus your time where it matters most: —growing your business. Contact us today to get started!