Request a call Login

  • Performance reviews can be powerful catalysts for employee improvement. Unfortunately, the mark is often missed when using traditional review processes, leading to ineffective meetings and causing unnecessary stress for both managers and employees.

    Still, employees appreciate genuine feedback and want to hear about their performance from their managers. In fact, 65% of employees desire more feedback than they currently receive. When executed with care and precision, performance evaluations offer employees valuable insights and a pathway to grow in their roles.

    In other words, effective performance evaluations are a conduit for fostering continuous growth, open communication, and a more vibrant workplace culture.

    What Is A Performance Review

    A performance review allows managers and direct reports to have a focused conversation regarding an employee’s performance, impact, and development. The most common form of a performance review is the annual assessment, often characterized by its lengthy nature, as it attempts to encapsulate an entire year’s worth of work. Traditionally, these reviews focus on past performance rather than looking forward to the upcoming year.

    In addition to annual reviews, there are several other review intervals, each serving distinct purposes, including:

    • Quarterly performance reviews are valuable for setting substantial objectives such as sales targets and business growth. A three-month timeframe typically allows sufficient time for achieving these goals.
    • Monthly performance reviews are particularly beneficial for businesses that engage short-term contractors and consistently onboard new hires. They help ensure alignment with the company’s requirements and expectations.
    • Weekly or biweekly performance reviews serve as practical tools for record-keeping and project management, aiding in maintaining project timelines and progress tracking.

    Performance Review Pitfalls

    More often than not, employers use performance reviews to assess promotions and salary increases. However, a growing body of evidence suggests linking monetary rewards to these reviews may have unintended negative consequences. Specifically, this approach may lead to employees focusing solely on their own productivity rather than their connection to the company’s broader mission. Over time, this can contribute to employee disengagement, a concern particularly relevant to business owners aiming to maintain a motivated and committed workforce. Other common mistakes include:

    • One-sided conversations: When feedback is given unilaterally without encouraging constructive dialogue between managers and employees, this often leads to disengaged and frustrated employees and hinders the effectiveness of reviews.
    • Top-of-mind feedback: This is when reviews rely on immediate, subjective impressions rather than comprehensive and well-considered assessments.
    • Time constraints: Another common issue is when busy managers conduct rushed reviews, neglecting to dedicate adequate time and attention to each review.
    • Unrealistic goals or expectations: The goals and objectives used to evaluate employees must adhere to the SMART criteria (specific, measurable, achievable, relevant, and time-bound). Unrealistic high-performance standards can result in employees feeling frustrated and dissatisfied.
    • Surprises: Springing reviews or providing unexpected feedback or criticisms on employees during reviews can be disheartening and counterproductive to building a motivated workforce.

    Five Tips For Successful Performance Reviews

    To mitigate these common pitfalls, you need to be clear about the purpose of your performance evaluations. The primary aim should be to foster growth and development in employees, providing them with the vital feedback they need to excel in their roles. By reframing the purpose of these evaluations, you can ensure that managers and employees approach them with a positive mindset, viewing them as opportunities for improvement rather than mere assessments. Additionally, you can help create positive reviews through:

    1. Preparing yourself and your employees

    Each review should be carefully prepared by you and your leadership team. Take the time to reflect on your employee’s work, write down your feedback, and use it to guide your conversation. Gather examples, review goals and progress, and ask your employees to do the same. This way, you can ensure the meeting stays relevant, and you address all the critical points.

    2. Structuring the review

    Just as you wouldn’t attend a board meeting without an agenda, doing the same for a performance review is essential. While these reviews can be more relaxed, having a loose structure in place ensures that you and your employees can share your prepared thoughts and feedback effectively.

    Allow time for open-ended questions, such as “How can I support you in achieving your goals?” and “What do you hope to accomplish by your next review?” These questions foster meaningful conversations, encourage goal setting, and promote a collaborative approach to performance improvement.

    3. Focusing on the future

    Performance reviews can be stressful, particularly when addressing challenges or recent setbacks. To help alleviate some stress, conclude each review with clear and actionable next steps. This helps limit ambiguity and provides a well-defined path forward for improvement.

    In addition, try to end the review on a positive note and convey your support for the employee’s success. Make it clear that you’re on their side and are committed to their growth and development within the organization. This reassures the employee and fosters a more constructive and motivating review process.

    4. Being transparent

    Furthermore, the review itself should not contain unexpected revelations or surprises. Avoid withholding negative feedback for the review; instead, make it a point to regularly engage with your employees and share feedback as part of ongoing, open communication. This approach fosters transparency, reduces anxiety, and promotes continuous improvement.

    5. Making time

    Ensure your managers have dedicated, uninterrupted time for performance reviews, free from distractions caused by other tasks or team members. Additionally, carefully consider the logistics and setting of these reviews:

    • Will the review be conducted in an open or closed-door environment?
    • Should it be scheduled in the morning or in the afternoon?
    • Determine the necessary duration of the review.
    • Identify and mitigate potential distractions in advance.
    • Choose between a formal or relaxed setting to create the right atmosphere for the discussion.

    Performance Review Services

    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.
    Professional employer organizations (PEOs) like GMS can help. GMS offers comprehensive review services that can:

    • Demystify the approach to implementing performance management for any type or size of organization.
    • Recommend the best way to set up an employee appraisal and review process.
    • Optimize or change a current review process based on what is and isn’t working with an existing process or method.
    • Assess and develop employee performance review forms.
    • Review scores and feedback and identify top and bottom performers, leading to conversations regarding promotion, training, discipline, or termination.
    • Move an organization to an online, electronic system for maximum efficiency when conducting a review process.

    Ready to get started? Contact us today, and let us help your team!

  • In a move for California’s food industry, Governor Gavin Newsom signed Senate Bill (SB) 476 into law in October. This legislation, set to take effect on January 1st, 2024, carries significant implications for the state’s food facility employers and their workers. Under SB 476, food facility employers are now mandated to pay for their employees’ food handler cards and the time spent obtaining them, marking a significant leap forward in protecting the rights and well-being of food service workers.

    What Is A Food Handler Card, And Why Does It Matter?

    Before we dive into the details of SB 476, let’s get a better understanding of what a food handler card is and why it’s crucial. A food handler card is a certification required by the state Health and Safety Code for anyone involved in the preparation, storage, or service of food in a food facility. It’s designed to ensure that those working with food possess the necessary knowledge and skills to maintain the safety and hygiene standards crucial in the food industry.

    Before SB 476, obtaining a food handler card was often an expense borne by the employee, including the costs associated with taking the necessary training courses and examinations. However, with the new legislation, a fundamental shift in responsibility has occurred.

    The Power Of SB 476

    Under the provisions of SB 476, employers must now cover all costs associated with their employees obtaining a food handler card. This not only includes the cost of the certification but also compensates employees for their time spent attending training courses and taking examinations. This law mandates that employees are relieved of all other work duties while undergoing this training.

    One of the most notable aspects of SB 476 is the prohibition against conditioning employment on the applicant or employee having an existing food handler card. This means that obtaining a card is no longer a prerequisite for employment, which can open doors for many job seekers and reduce barriers to entry in the food industry. With this change, the focus is on providing employees with the tools and training they need to succeed in their roles.

    A Win-Win For Employers And Employees

    SB 476 represents a win-win situation for both food facility employers and their employees. Employers benefit from a more knowledgeable and skilled workforce, which can lead to improved food safety and customer satisfaction. On the other hand, employees can take advantage of enhanced opportunities for employment and career growth within the food industry, all while being fairly compensated for their time and expenses in obtaining their food handler cards.

    How A PEO Can Help Business Owners

    Navigating these changes and ensuring compliance can be a complex process for business owners, particularly in the food industry. The following is how a PEO like GMS can provide invaluable assistance to your business in California:

    1. HR expertise: GMS offers expertise in human resources, ensuring that businesses understand the implications of SB 476 and helping them develop policies and procedures to remain compliant. They can advise on how to structure compensation, reimbursements, and employee time management effectively.
    2. Training and education: We provide access to training and educational resources that can assist businesses in offering the required food handler courses to their employees through our learning management system (LMS). This can streamline the process, ensuring employees receive the training they need.
    3. Compliance assistance: SB 476 introduces a significant level of complexity regarding employee compensation and compliance. Our experts help business owners understand and adhere to these new requirements, reducing the risk of legal issues and penalties.
    4. Recruitment and onboarding: Since SB 476 eliminates the need for food handler cards as a precondition for employment, businesses might face an influx of job applicants. Our HR experts can help streamline the recruitment and onboarding process, saving time and resources.
    5. Employee benefits: We offer comprehensive benefits packages that can help businesses attract and retain top talent in a competitive industry. This can be appealing to potential employees who value additional benefits beyond fair compensation.

    By leveraging GMS’ expertise, training resources, and support, California business owners in the food industry can thrive in this evolving landscape while prioritizing their employees and their bottom line. Contact us today to learn more.

  • In today’s fast-paced and competitive business landscape, effective performance management is essential for an organization’s success. Performance management tools have traditionally focused on measurement, providing valuable insights into key performance indicators (KPIs) and individual or team performance metrics. While measurement remains a critical aspect, the true potential of these tools extends far beyond quantification.

    The Limitations Of Pure Measurement

    Performance management tools primarily focusing on measurement tend to capture only a narrow view of employee or team performance. Metrics such as sales targets met or deadlines adhered to are undoubtedly important, but they do not paint a complete picture. They fail to account for the nuances of an individual’s contributions, the underlying factors affecting performance, or the broader context in which work occurs. To truly harness the potential of your workforce, performance management tools must go beyond these quantitative metrics.

    Shifting Toward Holistic Assessment

    Performance management tools can be transformational when they adopt a more holistic approach to assessing performance. This entails considering qualitative aspects such as skills development, innovation, collaboration, and the overall impact of an employee or team on the organization’s mission and values. Holistic assessment recognizes that employee engagement, job satisfaction, and personal growth are as crucial as hitting numerical targets. It’s about understanding the “how” and “why” behind performance, not just the “what.”

    Encouraging Continuous Feedback And Improvement

    Beyond measurement, performance management tools can promote a culture of continuous feedback and improvement. Regular check-ins, self-assessments, and peer reviews can provide valuable insights into an employee’s strengths and areas for development. When these insights are integrated into the performance management process, employees can be empowered to take control of their growth and development, creating a more engaged and motivated workforce.

    Fostering Employee Development

    One of the most powerful aspects of performance management tools that transcend measurement is their role in fostering employee development. By focusing on learning and growth opportunities, these tools can facilitate skills development, career progression, and personal development plans. When employees see that their organization is genuinely invested in their growth, they become more committed, motivated, and loyal.

    Aligning Performance With Organizational Goals

    Performance management tools that go beyond measurement help align individual and team performance with broader organizational goals. This alignment is critical for achieving a shared vision and ensuring that employees contribute to the company’s strategic objectives. When everyone understands how their work connects to the bigger picture, motivation, and engagement soar.

    Enhancing Manager-Employee Relationships

    Performance management tools also play a pivotal role in strengthening manager-employee relationships. Regular feedback and open communication create an environment of trust and transparency. When managers focus on guiding and coaching their team members rather than simply evaluating their performance, a collaborative and supportive atmosphere is essential.

    Acknowledging The Human Element

    In the pursuit of transcending measurement, performance management tools must recognize the intrinsic human element in performance. Emotions, aspirations, and the work environment all influence how employees perform. Tools that acknowledge these factors are better equipped to help individuals and teams reach their full potential.

    Unlocking Business Potential

    As the business environment continues to evolve, the support of a professional employer organization (PEO) becomes increasingly important. PEOs like GMS extend a helping hand that reaches far beyond the conventional realms of HR and payroll services. They bring a holistic approach that empowers organizations to hone in on their core strengths. With their expert guidance on compliance, benefits administration, and risk management, PEOs liberate precious time and resources. This liberation, in turn, allows businesses to not just survive but truly thrive.

    At GMS, our HR experts ensure that your employee policies comply with all legal regulations and policies. Our performance review system offers the following:

    • Consistent feedback
    • Employee development
    • Goal setting
    • Tracking and documentation
    • Reporting
    • Customizable email templates and calendar invitations 
    • Training and implementation

    By partnering with a PEO, companies can navigate the intricate maze of workforce management, shed the weight of administrative tasks, and cultivate an environment that nurtures employee growth and development. In a world where operational efficiency and strategic expansion are paramount, PEO assistance isn’t merely an option; it’s a strategy that serves as the driving force behind a company’s progress. Contact our experts at GMS today.

  • In an era where streaming services have become an integral part of our lives, there’s something captivating about having all your favorite shows and movies in one central location. Imagine having access to all the content you love, organized on one platform. It’s not just convenient; it’s also efficient. In the world of business, a similar revolution is happening through the professional employer organization (PEO) model. PEOs consolidate HR services, making them easily accessible to small business owners.

    Continue reading to explore the PEO model and how it operates as the Netflix of HR services, offering many benefits for small business owners.

    What Is A PEO?

    To understand the PEO model, we first need to grasp its core concept. A PEO provides comprehensive HR services to small and medium-sized businesses. These services include payroll management, employee benefits administration, compliance assistance, and more. Essentially, PEOs serve as a one-stop shop for all your HR needs.

    Much like your favorite streaming platform, a PEO offers a variety of “shows” (services) bundled together, ensuring you get access to all the essential HR functions without the hassle of dealing with multiple providers.

    Streamlining HR Operations

    When you subscribe to multiple streaming services, managing different subscriptions, logins, and content libraries can be overwhelming. The same applies to small business owners managing various HR functions. By partnering with a PEO, you can streamline your HR operations in a similar way. PEOs consolidate payroll, benefits administration, employee onboarding, and more into one unified platform. This simplifies the HR process, reducing administrative complexities and improving efficiency.

    Cost-Efficiency

    One of the most compelling aspects of streaming services is the cost-efficiency. However, as more streaming services have launched, you spend more time and money watching different shows on different platforms. Wouldn’t it be more efficient and cost-effective if you could consolidate all your streaming platforms into one?

    Similarly, small businesses that partner with a PEO can experience significant cost savings. PEOs leverage their buying power to negotiate better rates for employee benefits and workers’ compensation. This means that small business owners can provide competitive benefits to their employees at a more affordable cost. It’s like getting premium content at a discounted rate, making your business more attractive to top talent.

    Expertise And Compliance

    Streaming services offer curated content, ensuring that subscribers get the best entertainment options without the hassle of searching. Similarly, PEOs are experts in HR services, guaranteeing that your business complies with the ever-evolving labor laws and regulations.

    PEOs keep you up-to-date with the latest HR trends, best practices, and legal requirements, which can be a complex task when managing HR in-house. This expertise minimizes the risk of costly mistakes, providing peace of mind for business owners.

    Scalability

    Streaming platforms adapt to your needs. If you need more screens or higher resolution, you can easily upgrade your subscription. The PEO model is just as scalable. As your business grows, a PEO can seamlessly adjust its services to accommodate your changing HR needs. Perhaps when you first partnered with a PEO, you only had one employee, so offering benefits wasn’t a top priority. Now, you’ve gained 30 employees, and suddenly, offering benefits is essential to attracting and retaining top talent. We can now provide you with various benefits packages.

    Whether you’re hiring more employees or expanding to new locations, a PEO can scale its services accordingly, ensuring that your HR remains efficient and compliant. It’s like upgrading to a premium subscription on your favorite streaming service, with added benefits and convenience.

    Look No Further

    Much like the joy of having all your favorite content in one place, the PEO model offers a consolidated, efficient, and cost-effective solution for managing HR services. Small business owners can benefit from streamlining their HR operations, cost savings, expert guidance, and scalability, all while ensuring compliance with employment laws.

    Partnering with a PEO like GMS simplifies your business, enhances efficiency, and delivers an exceptional HR experience. So, why juggle multiple HR providers when you can have it all in one place? Make your business HR-efficient and watch it grow with the power of a PEO. We’re one click away – contact us today to learn how we can be your one-stop solution.

  • Employee retention is a critical factor in the success of any organization. It not only reduces recruitment costs but also boosts productivity and employee morale. Human resources (HR) is pivotal in crafting and implementing employee retention strategies. In this blog, we’ll explore how HR can give your company’s employee retention strategy a significant boost and then discuss how partnering with a professional employer organization (PEO) can be a game-changer for small business owners.

    The Role Of HR In Employee Retention

    1. Talent acquisition and onboarding: HR professionals are responsible for attracting top talent and ensuring a smooth onboarding process. By finding the right people for your organization and making their transition as seamless as possible, HR sets the stage for a positive employee experience from day one.
    2. Creating a positive work environment: HR plays a crucial role in establishing a healthy work culture and fostering a positive environment. They can implement initiatives such as wellness programs, diversity and inclusion efforts, and employee engagement activities, which enhance job satisfaction and retention.
    3. Career development and training: HR can work with employees to identify their career goals and provide training opportunities. Investing in employee growth and development not only improves their skillset but also shows your commitment to their success, making them more likely to stay with the company.
    4. Communication and conflict resolution: HR is the mediator between employees and management, ensuring that concerns and grievances are addressed promptly. Effective communication and conflict resolution can prevent workplace issues from escalating and potentially leading to resignations.
    5. Performance management: HR professionals set clear performance expectations and conduct regular evaluations. This keeps employees informed about their progress and provides opportunities for improvement, reducing dissatisfaction that might lead to turnover.

    How HR Boosts Employee Retention

    Now that we’ve established the importance of HR in employee retention, let’s get into how HR practices can make a difference in this area:

    1. Employee engagement: HR can gauge employee satisfaction through surveys, feedback sessions, and one-on-one meetings. By identifying and addressing concerns early, they can proactively prevent turnover.
    2. Succession planning: HR can create a roadmap for employee growth within the organization, ensuring that employees see a future for themselves and are less likely to leave in search of new opportunities.
    3. Work-life balance: HR can implement flexible work arrangements, promote mental health programs, and provide support for work-life balance, which all contribute to employee satisfaction and retention.
    4. Compensation and benefits: HR can develop competitive compensation packages and benefits programs that attract and retain top talent. This includes health insurance, retirement plans, and performance-based incentives.
    5. Recognition and rewards: HR can establish recognition programs to acknowledge employee achievements, boosting morale and loyalty.

    How A PEO Can Help Small Business Owners

    Small business owners often face unique challenges when it comes to HR and employee retention. This is where a PEO can be a game-changer. A PEO is a co-employment arrangement that allows small businesses to outsource their HR functions. Here’s how it can help:

    1. Expertise: PEOs have experienced HR professionals who can provide expert guidance and support on employee retention strategies tailored to your business’s unique needs.
    2. Cost-efficiency: PEOs can often provide access to comprehensive benefits packages at a lower cost due to economies of scale, making it easier for small businesses to compete with larger companies.
    3. Compliance: PEOs can help small businesses navigate the complex landscape of employment laws and regulations, reducing the risk of non-compliance and associated penalties.
    4. Time savings: Outsourcing HR tasks to a PEO frees up your time and resources to focus on growing your business rather than handling administrative HR functions.

    Work Smarter, Not Harder

    HR is a cornerstone in enhancing employee retention, and a dedicated HR department or professional can help your company craft and implement strategies that foster a culture of engagement, growth, and satisfaction. For small business owners, partnering with a PEO like GMS can be a smart move to access expert HR support, ensure compliance, and compete with larger companies in the race to retain top talent. By combining the power of HR practices and the support of a PEO, you can supercharge your employee retention strategy and achieve long-term business success. Work smarter, not harder, and contact us today.

  • Small business owners, it’s time to take note. For the 13th consecutive year, lack of fall protection has remained at the top of the list of the U.S. Occupational Safety and Health Administration’s (OSHA) most frequently cited workplace safety violations. Workplace safety is not only a moral obligation but also a legal requirement that can have a profound impact on your business. This blog dives into OSHA’s top 10 safety violations for fiscal year 2023 and provides essential insights for small business owners to keep their workplaces safe and avoid costly penalties.

    General Fall Protection (7,271 Violations)

    Fall protection has consistently ranked as the number one violation for over a decade. This includes ensuring employees are properly equipped with fall protection gear when working at heights. Small businesses, particularly those in the construction or maintenance industries, must prioritize training and equipment to prevent falls and protect their workers.

    Hazard Communication (3,213 Violations)

    Hazard communication violations involve failing to properly label and communicate chemical hazards in the workplace. Small business owners must establish clear protocols for handling, storing, and labeling hazardous materials to protect their employees from potentially dangerous exposures.

    Ladders (2,978 Violations)

    Ladder safety to avoid accidents is essential. Ensure your employees receive training on ladder safety, regularly inspect and maintain your ladders, and provide the appropriate type and size of ladder for the task at hand.

    Scaffolding (2,859 Violations)

    Scaffolding is a common component of many construction projects. Small businesses involved in construction need to maintain, inspect, and assemble scaffolding according to OSHA’s standards to prevent accidents and ensure worker safety.

    Powered Industrial Trucks (2,560 Violations)

    Proper training and maintenance are key if your business uses forklifts or other industrial trucks. Small business owners must ensure their operators are trained and certified, and that equipment is maintained to avoid accidents.

    Lockout/Tagout (2,554 Violations)

    Lockout/tagout procedures are crucial for protecting employees during equipment maintenance and repair. Small businesses must have clear lockout/tagout protocols to prevent accidental machine starts.

    Respiratory Protection (2,481 Violations)

    Protecting employees from airborne hazards is paramount. Small business owners should provide appropriate respiratory protection, conduct fit testing, and implement effective safety measures to prevent respiratory-related illnesses and injuries.

    Fall Protection Training Requirements (2,112 Violations)

    In addition to providing fall protection equipment, small business owners must ensure their employees receive proper training in using this equipment. Training can save lives and prevent costly violations.

    Personal Protective And Lifesaving Equipment: Eye And Face Protection (2,074 Violations)

    Protecting workers’ eyes and faces is a top priority. Proper eye and face protection, such as goggles or face shields, should be provided and worn in areas with potential hazards.

    Machine Guarding (1,644 Violations)

    Machine guarding violations occur when equipment is not properly protected. Small businesses must regularly inspect and maintain their machinery to prevent accidents, injuries, and OSHA violations.

    Protect Your Business – Partner With A PEO

    As a small business owner, understanding OSHA’s top 10 safety violations for 2023 is essential for the well-being of your employees and the success of your business. Failing to address these violations jeopardizes your workforce’s safety and can result in costly penalties and legal issues. Fortunately, you could partner with GMS, a professional employer organization (PEO), to navigate this complex aspect of your business. We provide business owners with experienced safety experts who can help you proactively protect your business and employees.

    GMS’ safety team has the knowledge and resources to assess your workplace, implement safety measures, and ensure compliance with OSHA regulations, all before OSHA comes knocking on your door. By partnering with GMS, you can confidently navigate the complex world of workplace safety and focus on growing your business while leaving safety concerns in capable hands. Contact our team of experts today!

  • Health spending has steadily increased over the last few years, making health insurance one of the most highly prized employee benefits. Employer-provided health care plays a crucial role in recruitment and retaining top talent. In an era where employees are increasingly open to changing jobs, businesses are reassessing the benefits they offer, including health insurance – however, not all health plans work the same way.

    Group health insurance varies in terms of how the insurance is purchased and how it affects the group’s premiums and plan options. If you’re looking for ways to navigate your options, we’ve compiled a few of the most popular plans available.

    Group Health Insurance Options

    While all health plans have their pros and cons, it’s up to you to decide which makes the most sense for you and your employees’ needs. The following are common types of group health insurance options available for small businesses.

    Fully Insured Plans

    A fully insured plan is one of the more traditional types of group health insurance. Fully insured plans involve the insurance company taking on the risks involved with health care costs. Your business is then charged an annual premium for the benefits in the insurance policy, which is partially paid for by the employees.
    The insurer uses a variety of factors to calculate group health insurance premiums, including:

    The insurer uses a variety of factors to calculate group health insurance premiums, including:

    • Size and health of the group
    • The average age of the group
    • The employer’s claims history
    • Types of occupation
    • Level of coverage and add-on benefits

    Self-Funded Plans

    While the insurance company covers employee health costs in a fully insured plan, self-funding burdens the employer. In a self-funded plan, you’ll pay for employees’ health care claims and administrative costs directly rather than paying fixed premiums to an insurance company. This can often lead to more affordable rates and more control over your plan, with the tradeoff of your business accepting the risk of paying for catastrophic claims.

    The potential risk is why self-funded plans are more prevalent among larger companies and organizations that can easily absorb fluctuations in health care costs and want more control over their benefit offerings. However, small groups can also take advantage of self-funded plans. Small businesses can opt for a partially self-funded plan if they have a financial buffer or stop-loss insurance. This option allows small businesses to reap some of the benefits of self-funding while limiting risk.

    Level-Funded Plans

    Level-funded plans strike a balance by merging elements from fully insured and self-funded models. They’re an excellent fit for smaller businesses that might need more time to embrace the risk of a self-funded plan but are prepared to step away from fully insured premiums. They offer cost-saving potential and greater control compared to fully insured plans while still providing financial predictability.
    Unlike traditional plans with annual premiums, level-funded options are charged at a monthly payment rate. Insurance carriers will use census information to determine the amount your small group should pay. This rate is based on factors such as claims allowances, fees, and stop-loss coverage premiums. At the end of the year, the carrier will adjust the monthly level based on group performance.
    The employer is typically refunded if there is a surplus in the fund due to lower-than-expected claims. This approach allows small businesses to manage costs efficiently and consider a future transition into a self-funded plan.

    Health Maintenance Organization (HMO)

    An HMO is a group coverage setup where members pay for specific health services through monthly premiums. These plans prioritize cost-effective and comprehensive health care services for their members. With an HMO, you gain access to a designated network of health care providers and facilities, but your coverage is typically limited to services within this network. This focus on in-network care makes HMOs more affordable than other health insurance plans. However, seeing any physicians or facilities not included in your HMO network can result in a group member having to foot the entire bill.

    Preferred Provider Organization (PPO)

    PPO plans are like HMO plans, except with more flexibility. Like HMOs, PPOs also maintain a network of preferred health care providers, encompassing doctors, hospitals, and specialists. However, what sets PPOs apart is the freedom they grant their members. PPO members can choose to receive care from within the in-network providers or venture outside to out-of-network providers without having to cover the entire cost themselves. Instead, these visits will result in higher co-pays and additional service costs, giving members more freedom than HMO plans.

    High-Deductible Health Plan (HDHP) With A Savings Option (HDHP/SO)

    An HDHP is based on lower premiums and higher deductibles for group members. This means that members with this type of health care insurance will have to pay more out-of-pocket before the plan pays for its share. The tradeoff, however, is that this route allows monthly premiums to be lower, making it a good group health insurance option for employees who don’t use many medical services.

    In addition, you can pair HDHPs with savings options such as a health savings account (HSA). These accounts allow members to make tax-free contributions to an account that can be used to pay for health care costs, ranging from co-pays to primary medical services. The funds in these accounts roll over every year, making them a great retirement savings option, too.

    Health reimbursement accounts (HRAs) are another potential savings option that can be tied to an HDHP. These accounts are similar to HSAs, except employers make the contributions instead of employees.

    Choosing The Right Type Of Health Insurance For Your Small Business

    Finding the right group health insurance plan for your budget can be difficult. Balancing benefits administration and budgets can be overwhelming for anyone without a firm grasp of the health care system.
    That’s why many small business owners work with a professional employer organization (PEO) to help weigh their group health insurance options and handle the administrative burden of health care coverage. Whether your organization lacks an HR department or simply needs a resource to make more informed decisions about the management of benefits, GMS is here to help.

    GMS changes the approach to increase affordable options and give your employees access to small business health insurance. We give small businesses the buying power of a large corporation. Contact GMS today to speak with one of our experts about how we can help you offer quality healthcare plans that work with your budget.

  • Open enrollment is here again, and it brings the stress of navigating and enrolling in the ideal health care plan. Under the Affordable Care Act (ACA), employers with 50 or more full-time employees or the equivalent must provide health care to their team. Regardless of your team’s size, health care is a leading benefit that can assist with hiring and retention efforts due to the rising cost of personal health expenditures. Therefore, offering health care to your employees is something you should take seriously.

    Finding and evaluating multiple plans and pinpointing the best option for you and your team is no easy feat. Moreover, after making your choice, ensuring your team comprehends and successfully enrolls in their chosen plans adds another layer of complexity.

    So, how can you best prepare your workforce and ensure a seamless experience for all? Collaborating with a professional employer organization (PEO), like GMS, can effectively reduce some of the stress and complications associated with open enrollment. In the meantime, we’ve gathered some strategies to help you get started.

    Open Enrollment

    Open enrollment occurs annually, usually from November to January. During this time, employees can enroll in a new health insurance plan, tweak their existing coverage, or, if necessary, say goodbye to their current coverage.

    The significance of this period lies in the fact that any changes outside this window are restricted and limited. If you miss the enrollment season, make a mistake, or decide you want a different plan after it’s over, you’ll have to wait until the next open enrollment period to make those changes. Some exceptions include qualified life experiences such as having or adopting a child, marriage, or divorce, to name a few. Making informed decisions during this time can significantly impact your financial and overall well-being throughout the year. So, take your time, weigh your options, and ensure you’ve covered everything.

    Mistakes To Avoid

    Open enrollment is confusing enough. Preparing for the most common mistakes can help you and your team have a successful enrollment season.

    Missed deadlines

    Missing deadlines is one of the most common pitfalls because open enrollment can vary from year to year. However, open enrollment typically begins on November 1st and concludes on January 15th. To ensure your employees meet these deadlines, it’s essential to be well-prepared, maintain transparent communication with your team, and consistently send reminders about approaching cut-off dates. Timely submission of enrollment forms is necessary to secure coverage for the upcoming year.

    Defaulting to past plans

    We know you have a lot on your plate, and sticking with your previous year’s plan might seem like the most straightforward option. However, this can be detrimental in the long run. Health plans and their associated costs frequently change from year to year, and so do the health care needs of your team. Failing to reassess your coverage options can result in inadequate coverage or unexpected costs. It’s imperative to take the time to reevaluate your current plan and determine if it aligns with the evolving needs of your employees.

    Providing too many choices

    While offering various health care plan options is critical, it’s equally crucial not to overcomplicate the selection process. Limiting the choices to the most essential or popular plans is key. Providing too many options can confuse and overwhelm employees, making it difficult for them to make an informed decision. A concise selection of plans can streamline the decision-making process, making it easier for employees to choose the most suitable coverage.

    Ignoring plan details

    Another common mistake employers make is not thoroughly evaluating the details of the available plans. You should review each plan’s specifics to understand the coverage and costs. Ignoring these details can contribute to a poor plan selection, leading to discontent among your team, ultimately affecting employee satisfaction and, in turn, harming your retention and recruitment efforts. Therefore, it’s vital to take the time to thoroughly examine each plan to guarantee you’re making the best choice for your employees’ well-being and satisfaction.

    Not considering family needs

    Health insurance isn’t a one-size-fits-all solution. Failing to consider your team’s and their families’ specific health care needs can result in inadequate or too expensive coverage, which would, in turn, be noncompliant with the ACA. Assess whether the plans you choose meet the needs of your employees, their spouses, and dependents, including any special health care requirements or medications.

    Underestimating the cost-benefit analysis

    While lower monthly premiums might seem appealing, it’s essential to consider the broader cost-benefit analysis. A plan with slightly higher premiums may offer better coverage and lower out-of-pocket expenses, ultimately saving you and your team money in the long term.

    Failing to educate employees

    Proper information is the cornerstone of informed decision-making. Failing to educate your employees about the available plans and their intricacies can result in uninformed choices. To address this, providing clear and comprehensive information about each option is essential, including coverage details, costs, in-network providers, and any changes from the previous year. Consider conducting informational sessions or webinars to ensure your team has the knowledge to make well-informed decisions about their health care coverage.

    Forgetting ancillary benefits

    In addition to health care, other valuable benefits are often available during open enrollment, such as dental, vision, life insurance, and retirement plans such as a 401(k) match program. Overlooking these ancillary benefits can mean missing out on essential perks that contribute to the overall well-being of you and your team.

    By avoiding these common mistakes and investing time and effort into open enrollment, you can make informed decisions that lead to better health care coverage and financial well-being for you and your team.

    Compliance

    Maintaining compliance with the ACA requires meticulous attention to your health care plan choices. This encompasses a thorough assessment of various aspects, such as out-of-pocket maximums and the essential health benefits mandated by the ACA. These requirements are the foundation for ensuring that your health plans align with the legal framework and offer comprehensive coverage for your employees.

    In addition, fostering an inclusive environment is crucial for ACA compliance. It’s imperative that all employees, regardless of their circumstances, have an equal opportunity to engage in the benefit enrollment process.

    This commitment to inclusivity extends to employees with disabilities, who should receive the support they need through auxiliary aids, alternative formats, and other necessary accommodations. These measures guarantee regulatory compliance and cultivate a work environment that respects the diverse needs of all team members, contributing to a more equitable and welcoming workplace.

    Comprehensive Small Business Health Insurance Solutions

    Offering small business health insurance is easily one of the most complicated and costly aspects of running a business. You want to provide your employees with the best health care benefits, but you’re also dealing with rising insurance premiums, compliance, and mountains of paperwork. With a PEO like GMS, you can decrease costs while providing top-tier medical coverage and reducing administrative burdens.

    GMS represents more than 45,000 employees, which allows us to help small businesses purchase group health insurance for an average of 24% lower for employee premiums and 21% lower for family premiums than the U.S. average. GMS is the only PEO that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates.

    Our experts are here and are ready to provide guidance on how to utilize your plans best. Contact us today and let us help get your team the best health care possible!

  • In an era marked by unprecedented health care challenges and changes, one issue that has been steadily making headlines is the rise in prescription drug costs. Employers, in particular, are feeling the financial pinch as they grapple with the ever-increasing expenses associated with providing prescription drug benefits to their employees. Recent data indicates that the median annual price of new drugs surged from $180,000 in 2021 to a staggering $222,000 in 2022, marking a 23% increase. In addition, the costs of existing drugs also saw a significant spike of more than 25% in just one year.

    Despite these statistics, there’s hope on the horizon. Employers can adopt innovative strategies to effectively manage prescription drug costs while ensuring that their employees receive the medications they need. If you’re a small business owner, continue reading to explore ways to navigate this challenging trend and make informed decisions to protect your employees’ health and bottom line.

    Leverage Technology

    One of the fundamental steps in controlling prescription drug costs begins with employees. Even the most well-designed prescription drug plans can’t deliver on their promise if employees don’t fully understand them or don’t adhere to prescribed drug regimens. Educating employees about their coverage and available alternatives is essential. Employers can utilize apps and technology to provide alerts and prompts when drug prices rise, allowing for discussions for more cost-effective alternatives with health care providers. In addition, monitoring and improving adherence to care plans and drug therapy requirements is crucial, as non-compliance not only drives up costs but also poses a threat to employees’ health.

    Carefully Manage Plans

    Employers, especially those with self-funded health benefits, have opportunities to manage costs more effectively. They can negotiate contracts, define drug formularies, and seek ways to maximize rebates from drug manufacturers. Smaller and fully insured employers should work closely with health insurance carriers to manage formularies and tighten authorization requirements, ensuring that only those needing specific drugs can access them. Employers should consider steering patients toward biosimilar and generic drugs when clinically appropriate, always weighing the net cost and the best clinical choice for the patient.

    Select The Right Partners

    Selecting the right partners in the management of prescription drug benefits is paramount. Employers should ensure that their partners’ priorities align with their goals. For instance, an insurer offering a fully insured prescription drug plan to a smaller employer will focus on controlling formulary costs. Employers must also prioritize efficient prior authorization processes, ensuring they don’t disrupt patients’ clinical care and treatment timelines. In today’s evolving landscape, employers have the opportunity to partner with third parties, such as professional employer organizations (PEOs), to assist with these rising costs.

    The Help Of A PEO

    In the current economic climate, businesses face an uphill battle with ever-increasing expenses. From the mounting health care and prescription medication costs, entrepreneurs and business owners are navigating a complex financial landscape. However, there’s a solution that can offer significant assistance in tackling these challenges – GMS, a professional employer organization (PEO). GMS comes equipped with Rx Specialists who can provide invaluable guidance in optimizing health care plans, controlling prescription drug costs, and ultimately reducing the financial strain on business owners.

    Christine Rohrer, GMS’ Rx Coordinator, added, “To help with the rising cost of medications, Rx Coordinators at GMS will provide support for members who need additional help accessing medications that may have a high copay, require a patient assistance, and/or are excluded such as specialty medications. If needed, the Rx team will look at the members’ diagnosis to discuss treatment options with providers. We also investigate and research future drug trends, search for medications that are covered through medical, and/or discuss switching medications to a covered, cheaper alternative that is on our formulary. We will look through every available option and take on a hands-on approach to ensure our members have access to life-changing medications.”

    By partnering with GMS, business owners can not only ease the burden of rising expenses but also direct their energy towards the core goal of their business: growth and success. In times of financial uncertainty, PEOs can be the sturdy bridge that supports your business. Contact our HR experts today.

  • As of January 1st, 2024, California will be ushering in a new era of employee rights and benefits. Thanks to Senate Bill 616, a groundbreaking piece of legislation passed in 2023, significant changes are coming to the state’s paid sick leave (PSL) policies. These changes represent a huge win for employees across California, as they mark a significant increase in PSL entitlements, accrual caps, and front-loading options. Continue reading to learn more about this law and what it means for California business owners and employees.

    Increased PSL Entitlement

    The most notable change that employees will enjoy under the revised law is an increase in PSL entitlement. Previously, employees were entitled to 24 hours or three days of paid sick leave per year. With the new law taking effect, this entitlement will jump to a more substantial 40 hours or five days of paid sick leave per year. This adjustment ensures that employees have more time to take care of their health and well-being without worrying about lost income.

    Accrual Cap And Front Loading

    In addition, the new law introduces changes to the accrual cap and front-loading options. In the past, employees could accrue up to 48 hours or six days of PSL per year. This cap will now be raised to 80 hours or 10 days per year. This means that employees will be more flexible in managing their paid sick leave and can accumulate more time for unforeseen health issues.

    Front-loading is another exciting aspect of this law. Front-loading means employers give employees their paid sick leave hours in one lump sum at the beginning of the year. If employers choose to front-load PSL for their employees, the law mandates specific timelines for doing so. By the 120th calendar day of employment, employees must receive no less than 24 hours of PSL. By the 200th calendar day, they should have a total of 40 hours of PSL. This feature ensures that employees can access their PSL benefits early in their employment, offering peace of mind from the very beginning.

    Rate Of Accrual

    The rate of PSL accrual remains unchanged, with employees earning one hour of PSL for every 30 hours worked. This fair system ensures that employees accrue their benefits gradually over time, aligning with their actual working hours.

    Local PSL Laws Preemption

    Another significant aspect of the new law is the prohibition of local PSL laws from regulating certain issues related to PSL. This means that state law will take precedence over any local regulations, creating a more uniform system across the entire state. While local laws were once a patchwork of rules and regulations, this new provision will streamline PSL policies and make it easier for employees and employers to understand their rights and obligations.

    Navigating The Changing Landscape

    With these significant changes in California’s paid sick leave laws, business owners might wonder how they can best navigate the evolving landscape while ensuring compliance and providing the best benefits to their employees. If you’re a business owner in California wondering this, we’re here to share the benefits of partnering with a professional employer organization (PEO) like GMS. GMS’ HR experts assist with HR management, employee benefits, and navigating the intricate maze of labor law compliance. We guide business owners to streamline their operations, stay ahead of evolving regulations, and foster an empowering work environment.

    Partnering with GMS amidst this complex landscape of California equips business owners to seamlessly transition into the new PSL era. This ensures not only compliance with laws and regulations but also the ability to allure and retain top-tier talent in the competitive job market. Interested in learning more? Contact our HR experts today.