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  • Small business owners have the opportunity to evaluate their processes and find ways to enhance efficiency and productivity. While reflecting on your operations, you may realize that payroll management demands more attention than you initially thought. Let’s face it: you didn’t start your business to become an expert in payroll and spend countless hours on processing. Whether in construction, manufacturing, health care, plumbing, or any other industry, payroll is likely the last task you want to spend your precious time on. You started your business for a reason, driven by passion or a need you identified, and running payroll probably wasn’t part of that vision.

    Fortunately, outsourcing your payroll processes can be the solution you’ve been looking for. You might be unfamiliar with what outsourcing entails, or perhaps you’ve been bombarded by outsourcing companies claiming to be your payroll saviors. It may seem too good to be true, but we’re here to share the truth! Continue reading to explore the benefits of outsourcing your payroll and how it can save you countless hours.

    What Is Payroll Outsourcing?

    Let’s start with the basics: what is payroll outsourcing? Payroll outsourcing is the practice of delegating payroll-related tasks to a third-party service provider such as a professional employer organization (PEO). Instead of handling payroll in-house, businesses can entrust this crucial responsibility to experts specializing in payroll management. These outsourcing companies have the knowledge, resources, and technology to efficiently handle payroll processes such as:

    • Wage calculation
    • Tax deductions
    • Issuing payment to employees
    • And more!

    Outsourcing your payroll processes allows business owners to free up valuable time, enabling them to focus on their core operations and strategic goals. In addition, payroll outsourcing ensures compliance with ever-changing tax regulations and reduces the risk of errors or discrepancies. It offers a seamless and streamlined solution that eliminates the hassle and complexity associated with managing payroll internally.

    Now, let’s explore the five signs your business needs to outsource payroll.

    1. You Don’t Have Enough Time

    Handling payroll in-house can be a time-consuming and complex task. Small business owners often find themselves dedicating countless hours to managing payroll, which takes away valuable time from other critical business functions. According to The Business Journals, a survey found small business owners spend 5 hours or more each pay period or 21 days each year managing payroll. When you outsource your payroll, business owners can free up this time and allocate it towards activities that directly contribute to their business growth.

    In addition, outsourcing payroll eliminates the need to hire and train specialized staff, invest in payroll software, and constantly update systems to comply with changing regulations. These costs can quickly add up for small businesses. Instead, by opting for payroll outsourcing, business owners can redirect these resources towards areas that help their business thrive, such as product development, customer service, or marketing efforts.

    2. You Struggle Keeping Up With Regulatory Demands

    Payroll management requires a deep understanding of complex tax laws and regulations. Mistakes in payroll calculations or non-compliance with legal requirements can lead to severe consequences, including penalties, fines, and damage to the business’s reputation. By outsourcing payroll to experts who specialize in this field, small business owners can ensure accurate and timely payment of wages, taxes, and benefits. 40% of small businesses pay an average of $845 annually in IRS penalties because of mismanaged payroll processes.

    On the bright side, payroll outsourcing providers stay up-to-date with the latest regulatory changes, ensuring that businesses remain compliant at all times. They have the knowledge and expertise to handle tax filings, deductions, and reporting requirements, minimizing the risk of errors or oversights. This accuracy saves businesses from potential financial losses and provides peace of mind.

    3. You Need Security And Confidentiality

    Data security is a critical concern for businesses, regardless of their size. Payroll outsourcing providers invest heavily in robust data security measures to protect sensitive employee information. To safeguard data from unauthorized access, breaches, and identity theft, they utilize the following:

    • State-of-the-art technology
    • Secure servers
    • Encryption protocols

    By outsourcing payroll, small business owners can benefit from the expertise and resources of these providers, ensuring their payroll data is handled with confidentiality. This allows business owners to focus on their core activities, knowing that their employees’ personal and financial information is secure.

    4. Your Business Is Growing

    As businesses grow and evolve, the complexity of payroll management increases. Outsourcing payroll offers scalability and flexibility, allowing small business owners to adapt to changing needs without disruptions. Whether adding new employees, accommodating seasonal variations, or expanding into new markets, outsourcing providers can quickly scale their services to meet the requirements.

    Outsourcing providers have the infrastructure and resources to handle payroll for businesses of all sizes. They’re equipped to manage payroll across multiple locations, handle different pay structures, and integrate with various HR systems. This flexibility ensures that payroll processes remain seamless and efficient, regardless of fluctuations in the business landscape.

    5. You Need Access To Expert Support

    Payroll outsourcing providers not only handle routine payroll tasks but also provide expert support and advice. Their team of professionals specializes in payroll management and stays updated with industry trends, regulations, and best practices. This expertise is invaluable for small business owners who may not have dedicated payroll staff or the time to stay informed about the ever-changing payroll landscape.

    When business owners outsource their payroll, they gain access to a team of experts who can address any payroll-related queries, provide guidance on compliance, and assist with complex issues such as tax filings, benefits administration, and regulatory requirements. This support ensures that small business owners can make informed decisions, minimize potential risks, and maximize efficiency in their payroll processes.

    Meet Group Management Services (GMS)

    Long story short, if you’re a small business owner, consider partnering with a PEO. If you want to free up your time for the first time in who knows how long, you’ve come to the right place. I get it; it seems too good to be true, but it is the truth. Say goodbye to restless nights wondering about the what-ifs and what could’ve been. We’re here to bring your dreams to life.

    By entrusting payroll-related tasks to experienced professionals like GMS, businesses can save time, resources, and energy that can be redirected toward their core operations and strategic goals. Not to mention, we ensure compliance with complex tax regulations, minimize the risk of errors or discrepancies, and provide a seamless and streamlined payroll management solution. Stop thinking about it and get a quote from us today. You’re one click away from a brighter future!

  • In the fast-paced and ever-evolving world of small businesses, attracting and retaining talented individuals is paramount to success. While competitive compensation and benefits are significant, employees also seek opportunities for personal and professional growth. This is where employee career pathing comes into play. Career pathing, a strategic approach to mapping out an employee’s journey within an organization, holds immense significance, particularly for small businesses. Continue reading to explore the benefits of employee career pathing and its transformative impact on small businesses.

    Understanding Career Pathing

    Career pathing is the process of aligning opportunities for employee career growth with organizational talent priorities. It involves creating a roadmap that outlines the various positions, skills, and experiences an employee can pursue to advance their career. By providing clear direction and growth opportunities, career pathing empowers individuals to envision their future within the company and take proactive steps to achieve their goals. It goes beyond the traditional hierarchical structure and encourages employees to explore lateral moves, cross-functional collaborations, and skill development, ultimately fostering a culture of continuous learning and advancement.

    Enhanced Employee Engagement And Retention

    Career pathing plays a pivotal role in enhancing employee engagement and retention. When employees clearly understand their future growth opportunities within the organization, they’re more likely to be motivated and committed to their work. Small businesses that invest in career pathing show their employees that they are valued and have a future within the company. This fosters loyalty and reduces turnover rates, saving businesses time and money in recruiting and training new employees.

    Increased Productivity And Performance

    When employees have a clear career path, they’re more likely to be focused and motivated to achieve their goals. As a result, their productivity and performance levels increase. By aligning individual aspirations with organizational objectives, small businesses can harness the full potential of their employees. Career pathing provides employees with a roadmap to develop the skills and knowledge necessary to excel in their roles, resulting in improved overall performance.

    Development Of Specialized Skills

    Small businesses often operate with limited resources and rely on a close-knit team to drive success. Employee career pathing allows businesses to identify and nurture specialized skills within their workforce. By providing employees with opportunities for training and development, small businesses can build a highly skilled team that is capable of adapting to changing market demands. This not only benefits the organization but also empowers employees to expand their skill sets on new challenges.

    Succession Planning

    Succession planning is the process of identifying the critical positions within your organization and developing action plans for individuals to assume those positions. It’s critical for the long-term sustainability of any business, especially small businesses that heavily rely on key individuals. Career pathing enables small businesses to identify and groom potential leaders within their existing talent pool. By identifying high-potential employees early on and providing them with the necessary resources and opportunities, businesses can ensure a smooth transition of leadership when the need arises.

    Positive Company Culture

    Employee career pathing contributes to the development of a positive company culture. When employees feel supported in their professional growth, they are more likely to feel valued and satisfied with their work. This creates a positive work environment that promotes collaboration, innovation, and overall employee well-being. A strong company culture not only attracts top talent but also improves employee morale and overall job satisfaction.

    Partnering With A PEO For Effective Career Pathing Strategies

    By implementing career pathing strategies, business owners can create a motivated and engaged workforce, leading to increased productivity, employee satisfaction, and retention. However, implementing career pathing can be a daunting task for small business owners who may lack the resources and expertise to develop and execute a comprehensive plan. Fortunately, a professional employer organization (PEO) like GMS is here to help.

    PEOs provide guidance, tools, and support to help small business owners implement effective career pathing tactics that align with their business goals. Our HR experts can develop a comprehensive career pathing framework that aligns with the business’s goals and objectives. They can provide guidance on identifying key positions, defining career paths, and establishing clear criteria for advancement. In addition, we can help business owners create training and development programs to enhance employees’ skills and competencies, ensuring they’re equipped to progress along their career paths through our learning management system (LMS). Alongside many other resources and guidance we provide, our experts can help track and evaluate employees’ progress, providing feedback and coaching to support their growth through our performance management services. Ultimately, by partnering with a PEO like GMS, business owners gain access to the expertise and resources needed to implement effective career pathing strategies and foster a culture of professional development within their organization. Contact us today to learn more!

  • With 2024 in full swing, employers are starting to plan for employee salary increases this year. While economic concerns have prompted some employers to take a more conservative approach with compensation compared to 2023, the consensus remains positive for employees. Research shows that U.S. employers are expected to provide an average salary increase of four percent in 2024. Although this is slightly lower than the previous year’s increase, it is still significantly higher than salary budgets in recent years.

    Factors Influencing Salary Increase Strategies

    There are two key factors driving employers’ decisions regarding salary increases in 2024. The first is high inflation, which has led to steep prices for essential goods and services such as food, housing, and health care. It now requires $119.27 to buy the same goods and services a family could afford for $100 before the pandemic. Although inflation has decreased minimally since reaching a 40-year high in the summer, workers continue to struggle with the rising cost of living. The second factor is the tight job market, which has increased competition for talent. To attract and retain skilled employees, employers must offer competitive pay to combat the increasing prices.

    The Impact Of Inflation

    Even though inflation has eased somewhat, its effects continue to be felt by employees. A recent survey showed that months of high living costs have pushed employee financial well-being to an all-time low. Workers are burdened with credit card debt, and many find it challenging to save for retirement due to inflation pressures. Employers recognize this and have responded by increasing salary budgets. Surveyed employers cited inflation as the primary reason for the salary increases planned for 2024.

    In addition, voluntary turnover and attrition rates are at 11% overall, indicating the importance of offering competitive compensation packages. However, this survey revealed that fewer organizations report difficulties finding and retaining workers compared to previous years, suggesting a slight improvement in the labor market.

    Employers’ Strategies Beyond Salary Increases

    In addition to salary bumps, employers are adopting various strategies to attract and retain talent. 58% of employers are embracing workplace flexibility, recognizing the importance of work-life balance for employees. Furthermore, 59% of employers are placing a greater emphasis on inclusion, equity, and diversity, acknowledging the need for a diverse and inclusive workforce. In response to these ongoing pressures, organizations are taking the following actions:

    • 50% of respondents have reviewed the compensation of specific employee groups
    • 43% are increasing starting salary ranges
    • 42% are reviewing the compensation of all employees
    • 40% are enhancing the use of retention bonuses or spot awards
    • 36% are increasing training opportunities 

    These efforts reflect a commitment to creating a positive and rewarding working environment in the face of economic challenges.

    In Times Of Uncertainty, Partner With A PEO

    For small business owners, staying informed about salary trends and the challenges employees face in the current economic climate is crucial. By understanding the impact of inflation and the tight labor market, small business owners can make strategic decisions regarding salary increases and employee retention. Or you can partner with a professional employer organization (PEO) with experts to help you every step of the way, including answering questions and concerns about employee compensation and benefits.

    GMS, a certified PEO (CPEO), helps small businesses navigate the complexities of salary planning, ensuring competitive pay for employees while managing costs effectively. In addition, we provide access to resources and tools to support recruitment, compliance with employment regulations, and more. Partner with us so you can focus on what you do best – growing your business. Start the new year off on the right foot and partner with GMS. Get a quote from us today!

  • The Internal Revenue Service (IRS) has recently announced an increase in the mileage rate for 2024. This news relieves many individuals and businesses who rely on this deduction to offset their travel expenses. The new rate, set at 67 cents per mile, is up from the previous rate of 65.5 cents per mile for 2023. This goes into effect beginning January 1st, 2024.

    Diving Deeper Into This Increase

    This increase reflects the rising fuel and vehicle maintenance costs and is intended to help taxpayers who use their personal vehicles for business purposes. It allows them to deduct a certain amount for each mile driven based on the IRS’s approved rate. This deduction can be particularly beneficial for small business owners and employees who often travel extensively as part of their job duties.

    In addition to the 67 cents per mile driven for business use, the IRS also announced the standard mileage rate will be:

    These rates apply to electric and hybrid-electric vehicles and gasoline and diesel-powered vehicles. While this increase comes despite a recent decrease in fuel prices, vehicle acquisition costs have risen slightly, while vehicle depreciation has also accelerated. This means that the overall cost of vehicle ownership has also increased.

    What This Means For Small Business Owners

    For small business owners and employees who use their personal vehicles for work purposes, it’s essential to understand the increase in the mileage rate for 2024. The higher mileage rate means that employees can be reimbursed more per mile for their business-related travel. This can benefit both the employees and the business owners, as it helps offset the costs incurred by employees using their personal vehicles for work. Small business owners need to update their reimbursement policies and communicate the new mileage rate to employees to ensure they are appropriately compensated for their business-related travel expenses.

    PEO Support For Small Business Owners

    As the IRS announces the increased mileage rate for 2024, the road ahead for small business owners navigating tax implications appears more straightforward. Leveraging a professional employer organization (PEO) can be the key to unlocking a smoother journey. PEOs like GMS assist business owners in managing their HR tasks and, in this case, provide expert guidance on tax compliance, including maximizing deductions related to mileage expenses. By partnering with GMS, small business owners can confidently steer through these changes, focusing on growth while leaving the complexities of tax regulations in trusted hands. Contact GMS’ HR experts today!

  • In today’s rapidly evolving business landscape, where competition is fierce and technological advancements are reshaping industries, companies face the constant challenge of staying ahead of the curve. To thrive in such an environment, organizations must foster an innovative culture that encourages employees to think and act like entrepreneurs within their existing roles. This approach, known as intrapreneurship, has gained traction as a crucial strategy for driving growth and ensuring long-term success.

    By empowering employees to take risks, explore new ideas, and drive change from within, intrapreneurship can unleash the full potential of a company’s workforce and fuel its competitive advantage. Continue reading to dive deeper into the concept of intrapreneurship and its benefits and learn how companies can integrate it into their HR strategies.

    Defining Intrapreneurship

    Intrapreneurship is a practice allowing an employee to act like an entrepreneur within a company or other organization. Intrapreneurs are self-motivated, proactive, and action-oriented individuals who take the initiative to pursue an innovative product or service. They’re empowered to challenge the status quo, propose new ideas, and execute projects that generate value and drive growth.

    The Benefits Of Intrapreneurship In HR Strategy

    1. Nurturing a culture of innovation 

    Intrapreneurship fosters a culture that encourages employees to think creatively, experiment, and bring forth innovative ideas. By integrating intrapreneurial practices into HR strategy, companies can create an environment where employees feel empowered to take ownership of their work and contribute solutions to business challenges. 

    2. Retaining top talent

    Intrapreneurship offers employees a sense of autonomy and purpose, which can significantly enhance job satisfaction and engagement. Companies can retain top talent and reduce turnover rates by providing opportunities for employees to pursue their own ideas and projects. Intrapreneurship also attracts ambitious individuals who are passionate about making a real impact. 

    3. Driving organizational agility

    In today’s fast-paced business environment, companies need to adapt quickly to changing market dynamics. Intrapreneurship equips organizations with the ability to respond swiftly to emerging trends and capitalize on new opportunities. By empowering employees to take calculated risks and experiment, companies can improve their agility and stay ahead of the competition. 

    4. Fostering continuous learning

    Intrapreneurship encourages a growth mindset by promoting continuous learning and personal development. Employees are encouraged to acquire new skills, seek knowledge, and embrace challenges. By integrating entrepreneurial practices into HR strategy, companies can create a learning culture that fuels innovation and keeps employees engaged. 

    5. Boosting employee engagement and motivation 

    Intrapreneurship allows employees to work on projects they are passionate about, providing a sense of purpose and intrinsic motivation. This increased engagement leads to higher levels of productivity and performance. By incorporating entrepreneurial opportunities into HR strategies, companies can tap into the untapped potential of their workforce. 

    Harnessing HR Expertise And Tools For Intrapreneurship

    Unlocking the potential of intrapreneurship requires more than just a leap of faith – it demands strategic support and expert guidance. That’s where a professional employer organization (PEO) like GMS steps in, transforming how business owners navigate this revolutionary approach. By partnering with GMS, companies gain access to an arsenal of HR expertise, cutting-edge tools, and tailor-made solutions that empower them to cultivate a culture of intrapreneurship.

    From comprehensive employee training programs to streamlined HR processes and invaluable advice on incentivizing and rewarding entrepreneurial endeavors, a PEO is an ally for business owners on their journey toward success. With GMS as your trusted partner, organizations can confidently embrace the limitless possibilities of intrapreneurship, revolutionizing their growth trajectory, fostering innovation, and creating an extraordinary workplace that inspires their employees to reach new heights. Contact us today to learn more!

  • As a small business owner, you understand the importance of nurturing a talented and motivated workforce. One of the key aspects of employee development is providing effective feedback. Constructive feedback improves performance and fosters a culture of continuous growth and improvement within your organization. Companies that conduct regular feedback experience 14.9% lower turnover rates.

    In this era of transformative workplace trends, recalibrating feedback strategies has never been more important. As we embark on a new year, it’s the perfect time to revisit how we’re delivering feedback. This blog aims to provide tips for employee feedback and emphasize the opportunity for organizations to reevaluate and enhance their feedback mechanisms to empower their employees and company as a whole.

    1. Establish a feedback culture

    To create a feedback-driven environment, it’s essential to establish a culture that values open and honest communication. Encourage employees to seek feedback and provide suggestions. Foster an atmosphere where feedback is seen as an opportunity for growth, not criticism.

    2. Be specific and timely

    Feedback loses its impact when it lacks specificity or is delivered too long after the event. Ensuring your feedback is timely and addresses specific behaviors or actions is essential. This allows employees to understand the context and make relevant improvements.

    3. Focus on behavior, not personality

    When giving feedback, it’s crucial to focus on observable behaviors rather than personal traits. By doing so, you ensure that the feedback is objective and actionable. Instead of saying, “You’re lazy,” say, “I noticed that you missed the deadline twice last week, which impacted the team’s progress.”

    4. Use the feedback sandwich technique

    The feedback sandwich technique involves sandwiching constructive criticism between positive comments. This approach helps balance negative and positive feedback and makes feedback more acceptable. Start with a positive remark, provide constructive feedback, and end on another positive note.

    5. Be respectful and empathetic

    Feedback should always be delivered with respect and empathy. Understand that employees may have different perspectives and emotions tied to their work. Show compassion and actively listen to their concerns. By demonstrating understanding, you create an environment where employees feel safe and supported.

    6. Encourage two-way communication

    Feedback should be a dialogue, not a monologue. Encourage employees to share their thoughts and perspectives during feedback sessions. Engage in open and honest conversations that allow for a better understanding of each other’s viewpoints. This promotes mutual trust and respect.

    7. Set clear goals and expectations

    Effective feedback should be linked to clear goals and expectations. Ensure that employees have a clear understanding of what is expected of them. Use feedback sessions to align their performance with organizational objectives and help them identify areas for improvement.

    8. Offer growth opportunities

    Feedback should not solely focus on shortcomings. Highlight areas where employees excel and recognize their strengths. Identify growth opportunities and provide resources or training to help them develop their skills further. This approach motivates employees and shows your commitment to their professional growth.

    9. Follow up and track progress

    Feedback is an ongoing process. After providing feedback, schedule follow-up sessions to discuss progress and provide additional guidance if needed. Track employees’ improvement over time and acknowledge their efforts and achievements.

    Give Feedback With The Help Of A PEO

    Giving effective feedback is an essential skill for small business owners. By establishing a culture of feedback, you can create a workplace that fosters continuous improvement and drives success in the new year and beyond. Have you considered partnering with a professional employer organization (PEO)? A PEO like GMS provides feedback on employee performance and training and development, allowing business owners to make informed decisions and improve their business operations.

    GMS’ HR Account Manager Julie Grund shared, “Giving consistent and valuable feedback to your employees is one of the most important aspects of growing and retaining your staff. Employees who receive constructive feedback on a regular basis will feel more valued by the organization, and in turn, they will likely be more productive while maintaining a greater sense of loyalty to the company. Providing feedback will increase employee performance, increase motivation, foster collaboration and teamwork, and improve organizational processes.

    Take your business to new heights with the power of feedback and the expertise of a PEO by your side. Contact us today to learn more!

  • As a business owner, you have to make difficult decisions every day. Letting an employee go is arguably one of the most unpleasant and difficult tasks you can face. Human resources challenges like this can be challenging not only for managers but also for employees and significantly impact company morale. Even if you handle everything perfectly, there will likely be hurt feelings and uncomfortable conversations to navigate. Throughout this decision, it’s crucial to comply with regulations to ensure legal coverage for your business.

    Despite many employers operating under “at-will” employment, which allows them to terminate employees without cause, there are still legal boundaries to consider. Many states enforce regulations around good faith and fair dealing, protecting employees from terminations rooted in malice. Additionally, federal and state anti-discrimination laws safeguard employees from being fired for reasons related to race, gender, age, religion, disability, sexual orientation, and other protected classes.

    If firing an employee is necessary, you need to properly prepare to safeguard your business and remain compliant with federal and state laws.

    Before Termination

    Before you decide to fire an employee, it’s crucial you’ve done your due diligence. This includes having well-defined policies and procedures in place for your team. Key policies should cover areas such as harassment and bullying, employee discipline, and termination procedures. It’s also important to have your team regularly review these policies to ensure everyone is aware and in line. This approach minimizes the risk of an employee claiming they were unaware of your standards and filing a lawsuit for wrongful termination in the future.

    In addition, set clear, achievable goals for your employees over a defined timeframe and provide consistent performance feedback. This approach ensures employees are aware of their standing and areas for improvement.

    Performance improvement plans (PIP) are an excellent tool for employees who do not consistently meet expectations. These plans should comprehensively outline the employee’s shortcomings and include documentation of expected performance. Additionally, it should lay out the potential consequences, including termination, and a corrective action plan with signatures from both the employee and their supervisor. This paper trail can help you defend your decision if a former employee files claims against you.

    Employee Termination Best Practices

    If you’ve determined that letting an employee go is the necessary course of action, it’s essential to handle the process with care, as how you handle the dismissal can affect their reaction and potential legal actions. Think about the timing and location of the conversation. It’s best to avoid public areas where other employees might overhear. Legally, a face-to-face meeting is not required (unless the employee has a disability that requires it). Termination can be conducted over the phone or via videoconference and should be in situations where:

    • The employee’s behavior could cause you or your staff harm
    • The employee cannot be located
    • The employee is a remote worker
    • The employee is unable to meet in person

    Before the termination meeting, it’s essential to be well-prepared. Aim for a concise yet informative discussion covering: 

    1. The purpose of the meeting: At the beginning of the meeting, clearly state why you are meeting
    2. Performance review: Summarize the performance issues that led to this decision
    3. Grounds for termination: Provide a straightforward explanation for the termination
    4. Effective date: Inform the employee of the date when the termination takes effect
    5. Finality of decision: Make it clear that the decision is final and not open for negotiation 
    6. Company property: Outline the process for returning any company equipment or property
    7. Next steps: Discuss any additional steps, such as final paychecks and benefits information 

    During the termination meeting, it’s vital to ensure there are at least two members from your organization to witness. This should include the employee’s immediate supervisor, who is most familiar with the employee and clearly understands the reasons behind the termination, and an HR representative. If your team doesn’t have an HR representative, include a senior member of the company or the business owner.

    They’re essential for covering the termination’s administrative and procedural aspects, including final pay, benefits, and other relevant information. In addition, an HR representative can help manage and diffuse emotional responses, ensuring the conversation remains professional and respectful.

    Communicate With Your Team

    The final step in the termination process is to inform the remaining team members. It’s essential to strike a balance between transparency and confidentiality. You should communicate internally that the employee has left the organization but avoid sharing sensitive details. Focus on discussing the transition plan, outlining how the team will adapt and move forward. Be prepared to address any concerns that arise promptly and clearly. Furthermore, dispelling rumors is crucial to maintaining a positive and productive work environment.

    Termination Compliance And Documentation

    When terminating an employee, one of your primary obligations is to provide their final paycheck. Be aware that different states have varying regulations regarding the timing and method of delivering this final payment. Ensure you understand your state’s specific laws and requirements to avoid legal penalties or complications. Compliance with these regulations guarantees a smooth and lawful termination process.

    In addition to their final paycheck, other information to provide includes the following:

    COBRA notice

    If your terminated employee is eligible for continued health coverage, you must inform them of their rights. They should receive a notice detailing their options for health coverage continuation, such as COBRA in the United States, within 30 days of their termination. This notice should clearly explain the process for electing continued coverage, the associated costs, and the coverage duration.

    Benefits

    Clarify how their benefits will be handled. This includes details about life insurance policies and compensation for accrued vacation or sick time. Many states require the employer to pay out unused paid time off (PTO), so ensure you follow the laws of your state.

    Severance

    If you have a severance agreement with your employee, follow the terms of the contract. This includes adhering to provisions regarding monetary compensation, continuation of benefits coverage, handling of company equipment, and any other aspects specified in the agreement.

    Restrictive contracts

    If your employee has signed a non-compete or non-solicitation agreement, reviewing these documents as part of the termination process is important. This review helps protect your company’s assets and confidential information.

    Maintaining proper documentation regarding employee performance and ensuring compliance with local state laws and regulations are paramount strategies for protecting your business. By having clear, documented justifications for the termination and adhering to legal requirements, you create a strong defense in case of any legal challenges. This not only demonstrates fair and lawful employment practices but also reinforces the integrity and professionalism of your business operations.

    Human Resources With GMS

    Partnering with a professional employer organization (PEO) like GMS can give you peace of mind when it comes to compliance. Not only do we offer assistance regarding laws and regulations, but we can also help you train and track your employees’ progress with our human resource information system (HRIS).
    Our HRIS is software that can collect and report all employee data in a centralized hub. It manages the entire lifecycle of an employee from their initial application through hiring, retirement, or termination. Ready to save time and grow your business through expert HR management and technology? Contact us!

  • When it comes to workplace dynamics, there’s an overlooked yet pervasive issue that transcends the walls of academia: bullying. While conversations on this topic frequently revolve around school-aged children, the stark reality is that it doesn’t disappear after graduation. It’s a common issue among many businesses. In fact, nearly 30% of employees have personally experienced bullying at work. Bullying isn’t just about interpersonal conflicts; it’s also about the overall health of your business.

    Victims of workplace bullying often suffer from increased anxiety and depression, sleep disturbances, and other emotional and psychological issues. These problems can spill over into the workplace, affecting team morale, productivity, and quality of work. In addition, businesses that become known for allowing workplace bullying can suffer reputational harm, which can be difficult to recover from and affect hiring and retention efforts for years.

    As a business owner, it’s crucial to recognize the common signs of workplace bullying and harassment so you can address them quickly. Setting the tone for a respectful and inclusive environment begins with your leadership. By creating a positive work culture and taking its maintenance seriously, you’re not only protecting your business but also establishing yourself as a responsible and compassionate employer.

    What Is Workplace Bullying? 

    Workplace bullying encompasses a range of behaviors; they’re targeted and repeated action(s) by an individual or group aimed at intimidating, offending, degrading, or humiliating another person or group.

    Examples include:

    • Verbal abuse: This involves behaviors such as excessive joking, gossiping, or mockery that can be remaining or hurtful. 
    • Work performance interference: This can include sabotaging someone’s work, unfairly blaming them, or taking credit for their efforts. 
    • Institutional bullying: Occurs when an organization implicitly or explicitly endorses behaviors such as setting unrealistic goals, enforcing unnecessary overtime, or singling out individuals who are having difficulties. 
    • Retaliation: This involves obstructing someone’s career advancement, such as blocking promotions or denying requests for time off as a form of punishment or control. 

    Bullying in the workplace can take various forms, from open harassment to more subtle, covert behavior. Regrettably, managers can also be perpetrators of bullying towards employees. Accounting for about 65% of workplace bullying cases, managers are among the most common offenders. However, it’s not limited to this dynamic; bullying can also happen between colleagues at the same level or even from employees directed towards their managers.

    Laws And Regulations

    Although there aren’t specific laws targeting workplace bullying as a standalone issue, the Civil Rights Act does protect individuals in certain classes. Suppose a situation of bullying or harassment in the workplace is motivated by factors such as race, gender, religion, disability, or other characteristics of protected classes. In that circumstance, it can be classified as discrimination. Mishandling these situations can lead to significant legal consequences.

    Common Mistakes

    One of the biggest mistakes you can make as an employer is not addressing complaints when they occur. According to the Workplace Bullying Institute, employers tend to ignore, rationalize, or outright deny instances of bullying. This approach can be detrimental as it empowers perpetrators to continue their behavior.

    Moreover, when employers respond to bullying reports, the action taken is often just a mild warning, which typically doesn’t effectively deter the negative behavior. In some cases, there’s a disparity in how individuals are disciplined – some face severe consequences while others get off with just a warning. It’s crucial to take every report seriously and ensure that your entire team is aligned with your policies and the steps for corrective action. By addressing complaints earnestly, you send a clear message to your entire workforce about the acceptable behavior and valued culture in your organization.

    Taking Action

    To prevent workplace bullying and harassment, taking a proactive approach/stance is essential. Start by setting clear policies. These should cover what counts as workplace bullying, how to report it, and what happens after a report is filed. Make sure everyone on your team is aware of these policies, and they know where to find them. Including them in your employee handbook is an excellent way to ensure they are accessible to everyone. Additionally, you can:

    • Offer anti-bullying and anti-harassment training: Training sessions can help educate your team about the nuances of bullying and harassment and how to prevent them. 
    • Educate your team on acceptable and unacceptable workplace conduct: Clearly communicate the standards of behavior expected in your workplace to help set clear boundaries for everyone. 
    • Share a statement of commitment: Include a note in your employee handbook that outlines your commitment to a bully-free and respectful work environment. Resharing this statement regularly can reinforce your stance and remind employees of the importance of maintaining a positive workplace culture. 
    • Leadership training: Leadership plays a critical role in creating and maintaining a positive workplace environment. Regularly training your managers in areas such as conflict resolution and cultural influence can help ensure they are prepared to guide their teams in a way that promotes respect, understanding, and collaboration. 
    • Create a healthy culture: Ensure your team isn’t overburdened or excessively stressed. Stress and pressure can sometimes cause individuals to act negatively towards others. By cultivating a healthy work environment and emphasizing teamwork and work-life balance, you can reduce the likelihood of stress-induced conflicts and foster a more supportive and collaborative atmosphere. 

    Workplace bullying isn’t an issue that will resolve itself; it requires effort and commitment from you as a leader and your entire team. By implementing proper policies and systems and generating buy-ins from your staff, you help build and maintain a culture where respect and professionalism are the norm and everyone feels safe and valued.

    Performance Management With GMS

    As a business owner, performance management is critical to making training, career development, compensation, transfers, promotions, and termination decisions. It allows you to set clear goals and expectations for each employee and provide feedback about their performance related to those goals.

    Partnering with a professional employer organization (PEO) like GMS can significantly ease the administrative burdens of managing employees. GMS offers a comprehensive performance review system that includes various tools, such as documentation and tracking, training and implementation, consistent feedback, and more.

    In instances of bullying or harassment reports, having a performance management system with GMS allows you to securely store documentation and create a detailed paper trail. This is crucial if you eventually need to terminate an offender. Maintaining such records not only helps make informed decisions but also protects you and your business in the event of legal actions that a disgruntled employee might pursue in the future. Contact us today, and let us help protect your business.

  • Ohio business owners – get ready! Ohio’s minimum wage is set to increase on January 1st, 2024, to $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. The new minimum wage will apply to employees of businesses with annual gross receipts of more than $385,000 per year. Currently, the minimum wage is $10.10 per hour for non-tipped employees and $5.05 per hour for tipped employees. In addition, the 2023 Ohio minimum wage applies to employees of businesses with annual gross receipts of more than $372,000.

    History Of Minimum Wage

    The Constitutional Amendment passed by Ohio voters in November 2006 states that Ohio’s minimum wage must increase on January 1st each year based on the inflation rate. To determine this, the state minimum wage is tied to the Consumer Price Index (CPI-W) for urban wage earners and clerical workers over the 12-month period before September. This index increased by 3.7% from September 1st, 2022, to August 31st, 2023.

    What This Means For Small Business Owners

    As a small business owner, this change, which is rather small in the eyes of some, may seem like a significant increase. For employees at companies with annual gross receipts of $385,000 or less per year after January 1st, 2023, and for 14 and 15-year-olds, the minimum wage in Ohio is $7.25 an hour. This wage is tied to the federal minimum wage of $7.25 an hour, which, to change, requires an act of Congress and the President’s signature.

    Employers are required to post the most recent minimum wage poster in their business. To access the 2024 minimum wage poster, click here.

    Leverage PEO Expertise

    In the face of Ohio’s minimum wage increase in 2024, business owners find themselves at a crucial stage, seeking different ways to navigate these changes seamlessly. Have you ever heard of a professional employer organization (PEO)? A PEO gives business owners access to expertise in managing HR functions, payroll, compliance, and benefits. PEOs offer tailored solutions, from optimizing employee benefits to streamlining payroll processes, enabling businesses to adapt effectively to the new wage standards.

    Embracing the assistance of a PEO could be the key for Ohio businesses to not only weather the minimum wage increase but also to foster growth, stability, and success in the years to come. Fortunately, Group Management Services (GMS) is headquartered in Richfield, Ohio, ready to step in and help all business owners in Ohio navigate this wage increase. Get a quote from us today to kickstart your business in 2024.