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  • The H-1B visa program has long been a topic of discussion and scrutiny due to concerns regarding misuse and fraud. In response to these concerns, the U.S. Citizenship and Immigration Services (USCIS) has announced a significant change to the H-1B visa registration selection process. This change, scheduled for publication on February 2, 2024, aims to prioritize the workers named in the registrations, aiming to reduce the possibility of misuse and fraud.

    The Current Process

    Under the current process, the number of registrations submitted by employers on behalf of an individual directly impacts the individual’s chances of being selected in the H-1B visa lottery. This has led to certain practices that raise concerns about the integrity of the selection process, such as the submission of multiple registrations for the same worker to increase the chances of selection.

    The New Proposal

    Under the new proposal, each unique individual who has registration submitted on their behalf will be entered into the selection process once, regardless of the number of registrations submitted for them. This significant change is designed to improve the chances of legitimate registrations being selected and eliminate the practice of submitting multiple registrations for the same worker to increase their likelihood of selection.

    Additional Requirements

    Starting with the fiscal year 2025 registration period (March 6-22, 2024), USCIS will require visa beneficiaries to provide valid passport or travel document information with the registration. Each beneficiary must be registered under only one passport or travel document. This additional requirement is aimed at further enhancing the integrity of the registration process.

    Addressing Fraud And Misuse

    USCIS Director Ur Jaddou emphasized the agency’s commitment to bolstering integrity and curbing potential fraud while improving and streamlining application processes. The proposed improvements are expected to make H-1B selections more equitable for petitioners and beneficiaries.

    The move to shift the focus of the selection process reflects USCIS’s response to concerns about potential abuse of the H-1B lottery system. Reports of ineligible registrations submitted by multiple employers conspiring together have raised red flags about the integrity of the process. USCIS revealed that several dozen technology companies colluded to submit registrations for the same 96,000 workers, totaling 408,891 entries, in an attempt to increase their odds of selection in the H-1B lottery.

    Future Changes

    The change to the registration selection process is a pivotal part of the proposed rule overhauling the H-1B visa program. USCIS is still reviewing the bulk of the H-1B modernization proposed rule and intends to publish a separate final rule to address the remainder of the provisions in the proposal.

    The Assistance Of A PEO

    These changes are poised to impact the fairness and transparency of the H-1B visa lottery system, ultimately benefiting both employers and visa beneficiaries. Considering these changes, GMS is here to help small businesses with the H-1B visa registration selection process. GMS, a professional employer organization (PEO), offers invaluable support by providing guidance on compliance with evolving immigration regulations, streamlining the visa application process, and ensuring adherence to the new requirements set forth by USCIS. By leveraging the services of GMS, business owners can navigate the intricacies of the H-1B visa program with confidence, knowing they have a knowledgeable partner by their side. Contact our HR experts today.

  • In the bustling world of small businesses, where every decision counts and every action shape the company’s identity, core values serve as guiding stars, illuminating the path to success. But how do small business owners move beyond simple words on paper and root these values in their organization? Continue reading to learn how to go from articulating to implementing, exploring how core values can transcend and become the driving force behind every decision and interaction.

    Defining Core Values

    Core values are the deeply ingrained principles that guide a company’s actions; they serve as its cultural cornerstones. They encapsulate the beliefs, principles, and philosophies that define a company’s culture and identity. For small business owners, defining core values is not simply a box to check but a foundational step in shaping the company’s principles and direction.

    When considering core values for your business, choosing those that reflect the company’s identity, culture, and aspirations is essential. The following is a list of essential core values to consider:

    • Integrity: Upholding honesty, transparency, and ethical behavior in all business dealings.
    • Customer centricity: Prioritizing customer satisfaction and delivering exceptional experiences.
    • Teamwork and collaboration: Fostering a culture of collaboration, mutual respect, and shared goals among employees.
    • Innovation: Encouraging creativity, adaptability, and a willingness to embrace change to drive innovation.
    • Respect: Valuing diversity, treating everyone with dignity, and maintaining a respectful work environment.
    • Adaptability: Being flexible and responsive to changing market conditions, customer needs, and industry trends.
    • Inclusivity: Creating an inclusive environment where diverse perspectives are welcomed, respected, and valued.
    • Sustainability: Committing to sustainable practices and minimizing environmental impact in business operations.
    • Innovation: Encouraging a culture of creativity, experimentation, and forward-thinking to drive growth and differentiation.

    Small business owners must lead by example, living out the core values they proclaim and rooting them into all aspects of the business.

    Nurturing A Value-Driven Culture

    In small businesses, culture doesn’t happen by chance; it’s a deliberate creation nurtured by every interaction, decision, and celebration. Fostering a values-driven culture requires intentional efforts, from hiring practices and onboarding to performance evaluation and recognition. Aligning these practices with core values reinforces their significance and empowers employees to embody the company’s culture.

    Integration Into Daily Life

    Core values should fill every aspect of business operations, from the big strategic decisions to the smallest day-to-day interactions. Small business owners can weave their values into operational frameworks and decision-making processes. By embedding values into daily practices, businesses ensure that every action reflects their principles and contributes to their vision.

    Open Communication And Trust

    Transparent communication is the lifeblood of a values-driven organization. Small business owners should foster open dialogue, inviting feedback, and fostering constructive conversations around core values. Transparent communication builds trust, resolves conflicts, and empowers employees to uphold the company’s values, even in challenging situations.

    Embracing Change And Growth

    As small businesses evolve, so do their core values. Embracing change and remaining adaptable allows businesses to develop their values alongside their growth. Small business owners should regularly revisit and reassess their core values, ensuring they remain relevant and reflective of the organization’s journey and aspirations.

    The Assistance Of A PEO

    When integrating core values into your business culture, professional employer organizations (PEOs) serve as a strategic partner. A PEO like GMS provides expertise and support to ensure your values fill every aspect of your organization seamlessly. From recruitment and training to day-to-day HR functions, a PEO enables businesses to establish cultures rooted in integrity, collaboration, and excellence. By partnering with GMS, businesses uphold their core values and gain the freedom to concentrate on strategic growth initiatives while leaving HR complexities in our hands. Contact us today!

  • In today’s job market, employees have high expectations for employers beyond benefits and compensation packages. In addition to competitive compensation, employees desire a workplace that values and respects them and prioritizes a positive culture. Employees are quick to switch jobs if they encounter a negative or toxic work environment. To attract and retain top talent, it’s vital that, as a business owner, you understand what employees are seeking to address any issues preemptively.

    Employees seek out companies whose actions align with their communicated values. In other words, if you say work-life balance is essential, but the level of work assigned requires regular overtime, or you preach education as a company pillar but rarely offer training or pay for external certifications, your values and actions are misaligned. Employees will take this to heart, which can negatively affect morale, productivity, and more.

    Strong Company Cultures

    Company culture may seem abstract however, there are tangible ways it impacts your business. Company culture is a work environment’s shared values, attitudes, behaviors, and standards. It describes not only your staff’s experiences but also how customers experience your brand.

    Positive cultures tend to include:

    • Clear and open communication. Between employees, across departments, and with management – open and non-ambiguous communication is a critical factor for a healthy culture. Managers should offer plenty of opportunities for their team to provide feedback and be readily accessible to help guide employees and provide clarity when needed.
    • Professional development opportunities. In addition to open communication, companies with positive company culture offer employees the opportunity to grow professionally. Access to training, education stipends, mentorship programs, and other resources can help employees to succeed. In addition, communicate a defined process to the team that explains how employees can get promoted or receive a raise.
    • Collaboration mindset. Positive cultures allow plenty of opportunities for teams to collaborate. Although rewarding individual contributions is essential, a positive work culture fosters a deep sense of belonging through consistent collaboration with peers and across departments. Individuals who feel supported and part of a team often experience more job satisfaction, which boosts productivity and retention.
    • Defined purpose and core values. Core values should be purpose-driven and align with long-term company goals. For example, environmentally conscious companies may aim to become carbon neutral by a specific date – their decisions and actions on a small and larger scale are then all informed by this value. Positive cultures have a clearly defined purpose and core values are easily accessible to employees.
    • Intentional focus on boosting morale. Positive work cultures aren’t built overnight. There is a careful strategy behind them. Leadership plays a critical role in building and maintaining a positive culture, from hiring staff that aligns with company values to creating opportunities for team bonding and implementing recognition and reward programs.
    • Employee recognition. Recognizing the achievements of individuals and departments is essential to a healthy work environment — monetary rewards, public recognition during meetings, a social media post, bonus days off, etc. Positive cultures value acknowledging the efforts of the team regularly.

    Negative Company Cultures

    Even if your company has one or several characteristics of a positive culture, your business might still struggle with culture. Generally, you can identify the health of your work environment by looking at employee engagement, productivity, turnover, and absenteeism. Ensure you look at historical data to identify abnormal spikes and patterns. Suppose a specific team or role has a perpetual turnover or struggles with productivity. In that case, it might be time to carefully examine the team manager, offer additional leadership training, or restructure the role.

    Another way you can assess your work culture is by how often your team stays late, skips lunch breaks, or works on the weekends. When staff consistently work overtime, they likely have too much on their plate and need additional resources to accomplish their tasks. When overtime becomes a pattern, employees can suffer from burnout and increased health issues, which can ultimately affect your bottom line.

    Furthermore, conducting surveys and feedback sessions can offer valuable insights. These should include questions about job satisfaction, relationships with managers, and perceptions regarding the company’s values. When employees leave your organization, ensure exit interviews are part of your off-boarding process. While regular feedback sessions with current employees are helpful, individuals who are leaving may feel able to offer more honest answers.

    Align Your Actions And Values

    Creating a positive culture takes work. You need to establish your values and create a clear implementation plan. Ensure you include your team in decisions affecting their day-to-day and implement their ideas when possible.

    In addition, make sure your leadership team is embodying your values. If collaboration is something you value and there’s a lot of unhealthy competition within a particular department – investigate where that is coming from. Train your managers regularly so they don’t inadvertently promote behaviors misaligned with your values and know how to interrupt them as they arise.

    GMS Resources

    Your employees are your biggest assets, and investing in creating a strong work culture, ensuring your team is engaged, valued, and supported will positively impact your business in the long run. Partnering with a professional employer organization (PEO) like GMS can allow your small business to offer competitive benefits so you can attract and retain top talent. Beyond benefits, GMS can also help you assess your company’s HR practices.

    Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in the following:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Inefficiencies in your HR processes can lead to unforeseen costs that weigh heavily on a small business. PEOs like GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability.

    Let us help you maintain or improve your competitive advantage. Connect with an HR expert today!

  • As concerns pile up, employee morale can quickly go downhill. The challenge of losing valuable employees becomes particularly daunting in today’s competitive job market, where it takes an average of 24 days to fill a position.

    While hiring managers look for replacements, the remaining team members may find themselves taking on extra work. This additional workload can make staff feel overwhelmed and resentful, exacerbating existing issues within your organization – causing more team members to leave. The domino effect is real and immediate, so you must act quickly before the topple becomes unstoppable. Because staffing is such a pressing concern, hiring decisions often become rushed, leading to hiring mistakes that inadvertently undermine retention efforts.

    While some turnover is expected, careful planning leveraging people analytics can help avoid its normalization. However, if you’re experiencing perpetual turnover, it might be time to examine your company culture. Attracting and retaining talent requires finding underlying issues and creating a strategy to address them.

    What Causes Employee Turnover? 

    Employee turnover happens for various reasons, often interrelated, and understanding these can help your organization develop strategies to retain talent. Key causes include the following:

    • Low pay and inadequate benefits. According to the Pew Research Center, 63% of employees cited low pay as a leading factor in seeking alternative employment.
    • Lack of professional advancement opportunities. Employees often aspire to grow their skills and advance their careers. If they perceive a lack of opportunity to grow within your organization, they are more likely to look for one that will.
    • Negative company culture. Another common reason for high turnover is a toxic or unsupportive company culture. This includes issues such as a lack of diversity and inclusion, poor work-life balance, and poor management practices.
    • Lack of professional respect. Employees want to feel valued and respected for their contributions. Lack of respect can manifest in several ways, including not listening to employee feedback, ignoring achievements, or generally undervaluing an employee’s role in your organization.

    If your your organization is experieicning high emploee turnover, fixing every issue overnight is impossible. It will require careful planning and time to fully address the root causes. 

    Addressing High Employee Turnover

    High turnover can create a stressful environment for your entire team, and while you can’t simply flip a switch to fix everything, addressing the root issues as quickly as possible is essential to avoid long-lasting detrimental impacts.

    First, it’s vital that you take an honest look at your company. One way to do this is through utilizing exit interviews. Exit interviews should be a routine part of off-boarding, where you can gather insights. From an employee’s first to last day, the company’s core values should guide their experience. The exit interview is no exception.

    It’s never easy to hear criticisms and concerns, but you’ll never get to the root of problems without asking questions and then listening. This isn’t the time to defend your company. Departing employees need to feel heard. Use this time to probe into factors that made them want to leave. If candid feedback is the goal, then direct managers shouldn’t conduct interviews. Nobody wants to burn bridges, so hiring a reputable third party is considered the best practice.

    In addition, you can start to address issues through:

    Taking action

    Once key concerns are uncovered and exposed, act immediately. It’s easy to get distracted and not follow through. To offset that tendency, create a team responsible for moving things forward and implementing changes.

    This team can analyze gathered data and market intelligence to create an employee retention plan. If there’s a manager with high levels of turnover, use feedback to coach them. Any new changes instituted show current and former employees that you genuinely care. If left forgotten or unfinished, that sends a clear message as well.

    Hire strategically

    After identifying and addressing areas of improvement, take a look at your hiring process. Employee retention is about hiring the right person. Skills are typically a top consideration when speaking with candidates, but you must also assess how they will fit with your company culture. A skilled new hire needs to experience a sense of belonging to consider it a long-term fit.

    There are a couple of strategies to aid this process. First, ask behavioral interview questions to gauge how they respond to common company scenarios. Then, give them a tour and introduce them to various employees. This is helpful for both of you. You can observe how they interact, and they can get a sense of the workplace culture and if it suits them.

    Compensate adequately (beyond salary)

    While happy hours and team outings are absolutely appreciated (and an essential part of building a culture), they don’t pay the bills. Research the market value and typical benefits for critical roles in your region. If you want to compete for top talent, you must offer a competitive benefits package that reinforces your company’s value. Packages include salary, paid time off (PTO), vacation time, sick days, benefits, etc.

    Look beyond money

    As the saying goes, money doesn’t solve everything. Millennials rank giving back as a top priority. That translates into taking jobs where they make a difference with society’s more significant issues. Is community involvement a core value or a PR opportunity? For candidates who care, they’ll know the difference.

    The following are more win-win strategies you can incorporate:

    • Recognition motivates employees and makes them feel respected
    • Understanding aspirations and providing a career path keeps them inspired
    • Flexible work schedules show trust and reinforce the value of work/life balance 

    Ultimately, you want to craft an atmosphere that supports happy, productive employees. Collaborating with experts who understand HR best practices can be beneficial Working with a professional employer organization (PEO), specifically GMS, allows business owners to outsource all or part of their HR to help build these cultures and programs to retain employees.

    GMS Can Help

    GMS has advised companies for more than 20 years on how to evolve to meet growth and talent goals. GMS’ HR Account Managers specialize in crafting well-defined job descriptions, ensuring you attract candidates who genuinely fit the role. They excel in creating efficient and streamlined hiring processes, saving you valuable time and resources while finding top talent.

    PEOs like GMS, understand the importance of cultural fit and can guide you in aligning candidates with your company’s values and culture. When it comes to onboarding, GMS offers structured, effective processes to ensure new employees seamlessly transition into their roles, thereby reducing the risk of disengagement or early turnover.

    Let us help improve your turnover rates and help your business retain employees to create efficiency and longevity. Contact us today to learn more about how GMS can help your business.

  • California employers, unless exempt, are required to exhibit their annual summary of work-related injuries and illnesses visibly at every worksite from February 1, 2024, through April 30, 2024. This requirement ensures that employers are informed about the safety landscape of their workplace, promoting transparency and accountability.

    The Cal/OSHA’s Form 300A is the cornerstone for this mandatory posting. Employers can access guidance on completing both the log (Form 300) and the annual summary (Form 300A) on Cal/OSHA’s Recordkeeping Overview page, facilitating compliance with the regulations.

    Recording Requirements For Work-Related Incidents

    Cal/OSHA dictates that employers must record work-related fatalities, injuries, and illnesses according to specific criteria. An incident must result in one of the following to be considered recordable:

    • Death 
    • Days away from work 
    • Restricted wrok or transfer to another job
    • Medical treatment beyond first aid
    • Loss of consciousness
    • A significant injury or illness diagnosed by a physician or other licensed health care professional 

    Inclusion Of COVID-19 Incidents

    While the COVID-19 emergency in California has ended for workplace health and safety requirements, any work-related COVID-19 fatality or illness meeting the criteria must be diligently recorded on the employer’s Form 300, 300A, and 301, or equivalent form.

    Electronic Submission Requirement For Covered Employers

    Certain employers are obligated to electronically submit Form 300A data annually to Cal/OSHA by March 2, 2024, if they meet specific criteria:

    Employers who fall within these categories can refer to Appendix H for a comprehensive list of covered industries and obtain information on electronic submission through the federal OSHA’s Injury Tracking Application website.

    What Next?

    By adhering to these regulations, employers demonstrate their commitment to maintaining a safe and healthy work environment, fostering trust and well-being among their workforces. However, this can be challenging as a small business owner wearing multiple hats simultaneously. However, we’re here to tell you there’s a solution – partnering with a professional employer organization (PEO) like GMS. This partnership allows business owners to leverage the expertise and resources of a dedicated team to ensure seamless compliance with regulations, including the accurate completion and submission of required forms, while also accessing tailored guidance on workplace safety best practices. Embracing GMS’ support streamlines administrative burdens and empowers business owners to prioritize their core operations, knowing that their workforce’s well-being and regulatory obligations are being managed properly. Contact our HR experts today to learn more. 

  • As a business owner, employee turnover is a common occurrence. Employees move on for a variety of reasons, some personal, such as moving out of state, and others professional, such as a career change or a new opportunity. When current employees leave your organization, though it may be stressful news at first, you have an excellent opportunity to gain insight into your company and culture. Exit interviews and exit surveys can help you understand areas for improvement.

    Even if you have the best relationship with your team, as leadership, there are likely elements within your processes, policies, or culture that your employees dislike but have yet to voice their concerns about. Exit interviews are your window-in. When done correctly, they’ll give you honest and in-depth responses that can help address aspects affecting employee satisfaction and retention.

    Because you can’t always predict when team members will leave your company, it’s vital to have an exit interview or survey established and integrated into your offboarding process. This ensures you aren’t caught off guard and have the tools ready to capture invaluable information.

    What Is An Exit Interview?

    Like a job interview, an exit interview or exit survey is a series of questions you ask departing employees. These questions should include their reasons for leaving and their perceptions of company culture and leadership. In addition, inquire about salary and benefit expectations to understand what it takes to retain or attract top talent.

    Generally, exit interviews and surveys should take 30 minutes to an hour, depending on how many questions you include. An HR representative or a member of senior leadership should be present during interviews to hear answers first-hand. Take thorough notes during interviews, so your team can evaluate the answers afterward.

    In addition, store all the information collected in exit interviews and surveys in a clearly defined and easy-to-access place. Keep the stored information confidential and remove anything that would identify a former employee. This ensures you can refer to past interviews and identify patterns over time.

    Questions To Ask

    While general questions are helpful, it’s essential to carefully assess your business and the specific insights that would be the most beneficial. For example, if you aren’t aware of how your staff feels about leadership or benefits, tailor most of your questions around those areas.

    We’ve gathered a list of questions to help you get started:

    Why did you start looking for alternative employment?
    Starting with an open-ended question allows you to get directly to the root of why an employee is choosing to leave. Their answer can help direct your other questions. For example, if their answer is because of a lack of professional development, you can delve into more questions about what development opportunities would be beneficial in the future.

    Did you have a positive relationship with your manager/supervisor?
    Managers play a huge role in job satisfaction. In fact, 69% of people say their managers had the most significant impact on their mental health, which greatly impacts day-to-day productivity and satisfaction. As a leader, you’re likely only hearing from your managers and supervisors; this question allows employees to share any minor and major issues they may not have felt comfortable sharing while still employed.

    What was your relationship with your team like?
    Just like managers, team members play a vital role in day-to-day job satisfaction. Unhealthy or cruel team dynamics can take a significant toll on individuals. Understanding team dynamics can help you create a better work culture.

    Was your role and responsibilities clear from the start?
    As the needs of your company evolve, roles often transform. Asking this question can assist you in identifying areas where increased transparency and clarity with your team might be beneficial.

    Did your responsibilities change since you started? If yes, did you perceive these changes as positive or negative?
    Depending on the employee’s tenure with your company, their role may change significantly. This question will provide insight into whether there are ways you can improve the experience of others at your company on similar paths. Do you need to reevaluate job titles or compensation packages when roles develop? Does your team need more say in these changes, etc.?

    What advice would you give management or your team?
    This question can lead to surprising answers and give you ideas on how to improve the experience of everyone in your company. Although there may be ideas that aren’t realistic to implement, other suggestions can prove invaluable.

    Other questions you can ask include:

    • What was your favorite and least favorite aspect of your job?
    • Would you recommend this company to a friend?
    • Did you feel valued and appreciated during your time here?
    • If you ever flagged an issue to leadership, were you satisfied with the outcome?
    • What are you looking forward to in your new role?
    • Is there anything we didn’t cover you would like to add?

    Next Steps

    The work doesn’t end after you’ve gathered your departing employee’s responses. Have your leadership carefully review each answer. Flag areas that need to be addressed and make a clear plan for implementing changes. Ensure you communicate any developments with your remaining team members and allow them to share ideas or pain points.

    Remember that an exit interview shouldn’t be the only time you gather your team’s input. Regularly check in during one-on-ones, team meetings, or even performance reviews. Regular feedback sessions allow you to get ahead of any issues and address concerns before an employee departs.

    While it is too late to address the concerns of former employees, the changes you implement can have lasting impacts on your business, improving job satisfaction, retention, and recruitment efforts.

    Human Resources Information System

    Partnering with a professional employer organization (PEO) like GMS gives you access to powerful tools such as GMS Connect. GMS Connect is a fully integrated, cloud-based human resources information system (HRIS) that enables your services and drives your efficiencies from anywhere and on any device with internet access. Our software allows world-class payroll, benefits, HR, recruiting, performance management, and more – covering the entire HR spectrum from hire to retire.

    If you’re looking for a secure place to store information, such as exit interviews or survey data, GMS can help. Contact us today and let us help you manage your employee data.

  • Creating a positive company culture is critical for every business. It drives recruitment and retention, increases morale, productivity, and more. Building and maintaining a positive work culture goes beyond management (though they play a significant role

    One way to help foster a positive work culture is by providing opportunities for your team to connect and show appreciation for one another. In the hustle and bustle of daily tasks, and particularly during moments of high stress, irritation can often be a guiding force in interactions. Over time, this can take a toll on professional relationships affecting organizational culture. Integrating peer-to-peer recognition programs is a proactive way to mitigate irritation and build a stronger workforce. These programs encourage staff to interact more thoughtfully, even in stressful circumstances and are crucial in cultivating a more cohesive and engaged team.

    Peer-To-Peer-Recognition Programs

    Peer-to-peer recognition programs allow your team to intentionally acknowledge another employee’s work or talent. They can take on various forms, some public and others more private. Peer recognition programs include:

    • Communication platforms: A designated Slack or Microsoft Teams channel is a great way to help employees share recognition, especially for remote or hybrid workforces. This can be department or company-wide and is a non-verbal way to celebrate peers.
    • LinkedIn endorsements: Remind your team to vouch for a peer’s skills and professional strengths on LinkedIn.
    • Team meeting shoutouts: Leave time during all team or department meetings for peers to offer verbal praise. Alternatively, read out messages from your communication shoutout channels.
    • Award certificates: Provide a small gift certificate, such as a $10-15 coffee voucher, that team members can award their colleagues.
    • Social media shoutout: Allow team members to nominate their peers for a special award – share it on company social media pages, newsletters, and company meetings.
    • Gift package: Similar to a gift certificate, team members can nominate peers for a small gift package. Customize the package to meet the recognized individual’s interests.

    Why Does Peer Recognition Matter?

    Considering how closely teams work together, peer-to-peer recognition matters. They share day-to-day challenges and see the effort that went into a project. Though managerial acknowledgment still carries value, peers have sat together in the trenches, and this deeper understanding of the completed work can equal more meaningful recognition.

    Moreover, these programs can boost employee morale. In times of high stress, maintaining positive team dynamics can be challenging. Peer recognition allows colleagues to regularly provide encouragement and words of support, reinforcing that the team values their contributions.

    In addition, these programs can:

    Reduce employee turnover

    Employees who feel valued and appreciated tend to have greater loyalty to their employer. Peer-to-peer recognition programs foster a feeling of belonging, enhancing job satisfaction and reducing turnover rates.
    Improves team rapport

    Camaraderie and team spirit can’t be manufactured externally; however, these programs offer a platform to nurture them. By acknowledging and celebrating each other’s achievements, such initiatives promote stronger, more positive relationships, thereby enhancing collaboration and communication within the team.

    Improves employee well-being

    74% of employees suffering from poor physical and mental health feel they’ve received poor recognition for their efforts. Giving and receiving recognition has been found to increase happiness and well-being. As business owners juggling many responsibilities, it isn’t always easy to offer meaningful recognition on a regular basis. Peer-to-peer programs add to managerial recognition, which can help employees feel more valued and, in turn, help boost their overall health.

    How To Create A Peer Recognition Program

    First, it’s crucial to communicate the program’s purpose to your staff. Next, gather a team to spearhead this initiative. Include members at various levels within your organization to ensure diverse ideas are included. Determine what activities to implement, their frequency, and any parameters needed. In other words, if you create a peer recognition award, decide how often the award will be given (monthly, quarterly, yearly) and what happens if multiple people are nominated.

    Actively involve your employees in the planning process. Even those not directly part of the implementation team should be able to provide feedback and contribute ideas. By including your staff in the planning process and clearly defining its purpose, you can generate more buy-in and excitement from the team.

    Pitfalls To Avoid

    Even the most well-intentioned initiatives can bring on some unintended negative consequences. This is particularly true for recognition programs, where feelings can quickly become negative if not managed carefully. It’s crucial to stay engaged and closely monitor these programs.

    Common issues include biases and favoritism, which can become more apparent. Without safeguards, certain team members might consistently receive acknowledgments and win awards. To prevent this, implement rules such as limiting individuals to winning specific awards only once per quarter or annually. If an individual receives frequent recognition or awards, find alternative ways to appreciate their contributions to give other team members opportunities for peer recognition.

    In addition, it’s essential your team fully understands the parameters of the program. Providing clear examples of meaningful recognition can help guide them in this process. It’s also beneficial to set a clear cadence of recognition through reminders. Encourage your team with weekly or monthly reminders and allocate specific time for staff to write a note of appreciation or nominate a colleague. This structured approach ensures recognition becomes an integrated and routine part of your team’s culture.

    Another common misstep is using peer recognition as a replacement for managerial and leadership recognition. These programs are best when they work in combination with other initiatives driven by leadership. Employees should feel valued and recognized by their managers in addition to the support they receive from their peers. This combined approach ensures that your team receives support from all sides.

    To summarize:

    • Avoid bias and favoritism – create opportunities for everyone to be recognized
    • Provide guidelines and examples of appropriate recognition
    • Send reminders regularly to integrate these programs into your workflow
    • Use these programs in tandem with leadership initiatives

    Employee Training And Recruiting Services With GMS

    Recruiting, hiring, and training staff is time-consuming and costly, especially for small and mid-sized businesses. Between ongoing training and employee recruitment services, finding, hiring, and developing the right people for your organization takes a significant amount of time and effort. Professional employer organizations (PEOs) like GMS give you access to the tools and resources necessary to take on these responsibilities while improving your overall recruiting, hiring, and training efforts.

    Employee training is an effective way to teach new employees and develop existing workers. Even the best employees won’t succeed without the proper training. GMS offers online employee training programs for small and mid-sized businesses targeting your employees’ specific job functions.

    Our online employee training software allows businesses to streamline job training, improve employee performance, and reduce learning costs for learning platforms and in-person training. Our user-friendly online learning management system (LMS) allows workers to access training courses to gain the skills necessary to support your business.

    If you’re looking to implement a new initiative, such as peer recognition, and are looking for ways to educate your team, our LMS could be the tool you’ve been looking for. Contact us today and let us help you build and maintain an engaged workforce.

  • On March 11, 2024, the U.S. Department of Labor’s (DOL) new rule for determining whether an employee is an independent contractor is scheduled to take effect. Health care and trucking industries that are heavily reliant on independent contractors are likely to experience disruptions in the labor supply and an increase in wages. Let’s dive into this to determine the implications this might have for small business owners.

    Understanding The New Rule

    The new rule reinstates an earlier standard that requires companies to collectively consider various economic factors to determine a worker’s classification as a W-2 employee or an independent contractor using a 1099 form. This shift rescinds the 2021 ruling, which placed greater emphasis on two factors:

    • Control over the work 
    • Opportunity for profit or loss

    The totality-of-the-circumstances analysis now incorporates the worker’s skill and initiative, the permanence of the working relationship, the worker’s investment in equipment or materials, and the extent to which the service rendered is integral to the employer’s business.

    Impact On The Health Care Industry

    The implications of the new rule on the health care industry are multifaceted, particularly for nurses and home health aides who commonly work for multiple staffing agencies. The independent contractor status has been a longstanding issue in this sector, and the new rule is expected to prompt staffing agencies and health care facilities to reassess their utilization of the 1099 model. In addition, the shortage of nurses and home health aides adds another layer of implications for this industry. This was caused by the early retirements during the COVID-19 pandemic and the increasing medical needs of Baby Boomers, further intensifying the urgency for employers to address labor classification and retention challenges. Approximately 100,000 registered nurses in the U.S. left the workplace due to the stresses of the COVID-19 pandemic. By 2027, almost 900,000, or almost one-fifth of 4.5 million registered nurses in the U.S., intend to leave the workforce.

    Impact On The Trucking Industry

    Similarly, the trucking industry anticipates significant repercussions from the new rule. The classification of truckers as independent contractors, a prevalent practice in the industry, may require a fundamental restructuring of the business model should they be reclassified as employees.

    For trucking companies, the prospect of reclassifying truckers as employees presents logistical and financial complexities. With many drivers renting trucks from the companies they deliver goods for, distinguishing between an independent contractor and employee status becomes critical. The ownership and usage of the vehicle, along with considerations of investment and opportunity for profit or loss, are central to the classification under the new rule.

    Economic Implications

    The potential reclassification of health care and trucking workers has far-reaching economic implications. Notably, the new rule is anticipated to escalate labor costs for companies, which could subsequently be passed on to consumers. In addition, if reclassified as employees, the impact on overtime pay for truckers is poised to become a significant issue given the industry’s long working hours and the entitlement to overtime pay for nonexempt workers. Under the Fair Labor Standards Act (FLSA), nonexempt employees are entitled to overtime pay, but independent contractors are not.

    The Assistance Of A PEO

    Amidst the evolving regulatory landscape and the DOL’s new rule for determining worker classification in industries such as health care and trucking, small business owners can seek support and guidance from a professional employer organization (PEO) like GMS. Partnering with GMS gives small business owners access to expert HR support, risk mitigation, compliance expertise, and talent management services, enabling them to navigate this new rule’s complex implications. In addition, GMS offers payroll and tax filing, benefits administration, compliance support, risk and safety management, and HR services, allowing business owners to focus on their core competencies. If you have a business in one of these industries, partnering with GMS is a crucial resource for you, ultimately offering you peace of mind and strategic support with evolving rules and regulations. We work with many health care and trucking companies to ensure they remain compliant and feel supported during these times of uncertainty. Interested in learning more? Contact us today to learn more.

  • Stepping into adulthood comes with a game-changing moment – hitting the big 26 and waving goodbye to the safety net of your parent’s health insurance. It’s like unlocking a new level of independence but navigating the health care landscape can feel like a rollercoaster ride. This transition isn’t just about paperwork and getting the proper coverage; it’s a real-life journey into adulting. Picture this blog as your guide, unraveling the ins and outs of claiming your own health coverage. It’s going to feel like a breeze when you approach the 26th year of your life.

    Understanding The Transition

    Young adults lose coverage from their parents’ plans because of the Affordable Care Act (ACA), which only requires companies to cover dependents on a parent’s plan until they turn 26. Before the ACA, insurance companies dropped young adults from their parent’s policies after they reached a certain age or stopped attending college. This resulted in many young adults losing their insurance earlier in life. Now, with the ACA, adults 26 years and under can stay on their parent’s plan even if they:

    • Have started or finished school
    • Are no longer a dependent
    • Are married
    • Adopt or have a child
    • Turn down group health insurance through work 

    What this means is that when you turn 26, you’ll need to find alternative coverage to ensure you’re protected in case of illness or injury. Understanding the options available to you is crucial as you embark on this new phase of your life.

    Exploring Your Health Care Options

    It’s essential to understand you have various options when choosing health care options. Let’s take a look at your options:

    Employer-sponsored plans: If employed, your company may offer health insurance benefits. It’s essential to familiarize yourself with the coverage options and enrollment periods provided by your employer.

    Health insurance marketplace: You can explore plans through the Health Insurance Market, where you may be eligible for subsidies based on your income. A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (cash payments) or indirect (tax breaks). It’s typically given to remove some burden and is often considered in the public’s overall interest, given to promote a social good or an economic policy.

    COBRA coverage: You may qualify for the Consolidated Omnibus Budget Reconciliation Act (COBRA) for a temporary extension of your parents’ plan, although it can be costly. This coverage gives workers, and their families who lost their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances, such as voluntary or involuntary job loss.

    Medicaid: Depending on your income, you may qualify for Medicaid, which provides low-cost or free health care coverage. In all states, Medicaid provides coverage for some low-income individuals, families and children, pregnant women, the elderly, and those with disabilities.

    Transitioning off your parents’ health plan can pose several challenges, such as understanding insurance jargon, comparing different plans, and budgeting for health care expenses. It’s normal to feel overwhelmed, but there are resources available to guide you through this process. The following are a few resources available to you:

    Financial Considerations

    • Budgeting for premiums: Evaluate the cost of premiums for different plans and consider how they fit into your monthly budget. For a healthy 26-year-old, the average cost of a marketplace plan is $372 per month.
    • Out-of-pocket expenses: Understand the potential out-of-pocket costs for deductibles, copayments, and coinsurance when comparing plans.
    • Health savings accounts (HSAs): If eligible, consider opening an HSA to save for medical expenses with pre-tax dollars. An HSA is a type of savings account that lets individuals set aside money on a pre-tax basis to pay for qualified medical expenses.

    In addition, it’s essential to understand the plan coverage:

    • Network providers: Check if your preferred doctors and health care facilities are included in the plan’s network to ensure continuity of care.
    • Prescription drugs: Assess how different plans cover the cost of prescription medications you may currently use or anticipate needing in the future.

    What Next?

    If 26 is just around the corner, you must start thinking about this process. Being able to compare your options allows you to get the best coverage for the best price as opposed to waiting until the last minute and rushing this decision. If your employer offers health insurance, you’re in luck. Your colleagues should be able to offer you advice, and if you’re lucky, your company might have a designated benefits specialist who can walk you through the entire process. If your employer doesn’t offer health insurance, the process will be longer, and you’ll have to make decisions on your own.

    For employers, have you considered partnering with a professional employer organization (PEO) like GMS? As your employees transition to their independent health care coverage, it’s essential you provide them with the tools and resources to make the right choice. When you partner with GMS, we provide access to comprehensive group health plans, leveraging our buying power to offer competitive rates and quality insurance. In addition, our Benefits Account Managers work with you and your employees to guide them through the enrollment process. We will also simplify complex paperwork, ensure compliance with regulations, and get the coverage your employees want and need. Contact our benefits experts today to ensure a seamless process for employees during this transitional period.

  • The Internal Revenue Service (IRS) has recently unveiled a voluntary disclosure program for employers who mistakenly claimed the Employee Retention Credit (ERC). The ERC, a refundable tax credit, was designed to aid businesses that faced hardships due to closures and event cancellations mandated by state and local governments during the pandemic.

    Understanding The Issue

    Despite the noble intent behind the ERC, numerous employers who were ineligible for the credit applied for and received funds. This was partly due to misinformation provided by scammers. As a result, the IRS initiated a disclosure program to rectify these erroneous claims, which is open for participation until March 22nd, 2024.

    Consequences Of Erroneous Claims

    Employers who erroneously claimed the ERC face multiple repercussions, ranging from financial penalties to potential criminal investigations. If the funds have not been received, employers can withdraw their ERC claim, essentially nullifying the claim. Completing the voluntary disclosure paperwork and returning 80% of the total credit is necessary for those who have already received the funds.

    However, failure to rectify these claims may lead to audits by the IRS and subsequent demands for the full refund of the credit, along with interest and potential penalties. In cases of fraud, employers could even face criminal investigations and prosecution for submitting false tax claims to the IRS.

    Eligibility Criteria For The ERC

    To qualify for the ERC, a business must meet one of the following criteria:

    • Sustained a full or partial suspension of operations due to a government order limiting commerce, travel, or group meetings because of COVID-19 during 2020 or the first three quarters of 2021
    • Experienced a significant decline in gross revenue during 2020 or a decrease in gross revenue during the first three quarters of 2021
    • Qualified as a recovery startup business for the third or fourth quarters of 2021

    In addition, certain agencies, such as government agencies and employers that faced supply chain disruptions but did not experience a government-ordered suspension of operations, are not eligible for the credit.

    Challenges And Confusion

    Determining eligibility for the ERC can be challenging for employers, particularly in assessing the significance of revenue downturns or operational slowdowns. The complexity of this criteria has led to confusion among employers, with many unsure if they were rightfully entitled to the credit.

    The situation has been worsened by aggressive marketing tactics employed by some firms, which encouraged businesses to apply for credit even if they were not eligible. Employers were enticed with promises of substantial funds, often at the request of marketers who stood to gain a percentage of the claimed tax credit.

    Recommendations And Guidance

    Given the complexities and potential pitfalls associated with the ERC, it’s crucial for employers to seek guidance from trusted tax advisors. Advisors who do not stand to benefit from the credit can offer unbiased counsel, helping employers navigate eligibility requirements and make informed decisions.

    In light of the IRS’ voluntary disclosure program, employers are urged to take a close look at their ERC submissions and reassess their eligibility with the assistance of legal, accounting, and HR professionals. This presents a limited window of opportunity for employers to rectify any erroneous claims and avoid potential repercussions.

    In addition, it’s essential for employers to be aware that wages reported as payroll costs for the Paycheck Protection Program (PPP) loan forgiveness cannot be used to claim the ERC. The PPP, established by the CARES Act, provides small businesses with funds to pay up to eight weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

    Looking For Assistance?

    The IRS’ new voluntary disclosure program offers employers an opportunity to rectify erroneous ERC claims and avoid potential legal and financial consequences. By seeking expert guidance and carefully reassessing their eligibility, employers can navigate this complex landscape with confidence and integrity. Not sure where to start? GMS, a certified professional employer organization (CPEO), provides business owners with valuable assistance and guidance. The following are several ways GMS can support businesses through this process:

    • Expert guidance on eligibility: GMS can provide expert advice on the eligibility criteria for the ERC, helping businesses assess their qualifications for the credit based on the specific requirements outlined by the IRS.
    • Compliance support: GMS is equipped to ensure that businesses comply with the ERC’s stringent guidelines. They can help employers navigate the complex compliance landscape, minimizing the risk of errors and ensuring adherence to the program’s terms.
    • Strategic advisory services: GMS can offer strategic advisory services, guiding employers on the best course of action regarding their ERC claims and voluntary disclosure.

    Contact our HR experts today to learn more.