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  • Employee performance directly impacts business success. When employees struggle to meet expectations, it can lead to decreased productivity, lower morale, and potential financial losses. However, rather than resorting to immediate termination, employers should take a strategic approach to managing poor performance. Addressing issues early, providing support, and implementing structured improvement plans can help turn struggling employees into valuable contributors. 

    Why Managing Poor Performance Matters 

    Poor performance doesn’t just affect one employee; it can disrupt team dynamics, slow down workflow, and create frustration among high-performing staff. If left unchecked, it can also lead to: 

    • Increased turnover and hiring costs 
    • Decreased overall productivity 
    • A negative workplace culture 
    • Higher risks of legal complications if termination isn’t handled correctly 

    Proactively managing performance issues helps businesses retain talent, strengthen leadership, and maintain a positive work environment. 

    Tips For Managing Poor Performance 

    Identify the root cause 

    Performance issues can stem from various factors, such as lack of training, unclear expectations, low engagement, or personal challenges. Start by assessing the situation; review job responsibilities, recent performance trends, and any external factors affecting the employee’s work. Have an open conversation to understand their perspective and uncover any underlying issues. 

    Set clear expectations and goals 

    Employees need to know what is expected of them. Provide a detailed job description, set measurable goals, and establish performance benchmarks. Clearly communicate these expectations in writing and ensure the employee understands the consequences of continued poor performance. 

    Provide constructive feedback and coaching 

    Regular feedback helps employees course-correct before issues escalate. Be specific about what needs improvement and offer actionable suggestions. Frame feedback in a way that encourages growth rather than discouragement. Instead of saying, “Your work isn’t meeting expectations,” try, “I’ve noticed some challenges with [specific task]. Let’s work on a plan to improve in this area.” 

    Implement a performance improvement plan  

    A structured performance improvement plan (PIP) provides employees with a clear path to success. It should outline: 

    • Specific areas that need improvement 
    • Measurable goals and deadlines 
    • Available support, such as training or mentorship 
    • Consequences if performance does not improve 

    Regular check-ins during the PIP period can help track progress and offer additional support if needed. 

    Offer training and development opportunities 

    Sometimes, employees underperform due to a lack of skills or knowledge. Providing professional development opportunities, whether through mentorship, workshops, or online courses, can help employees build the necessary competencies to succeed in their roles. 

    Address engagement and motivation 

    Low engagement often leads to poor performance. Assess whether the employee feels valued, challenged, and connected to the company’s mission. Recognition programs, career development discussions, and fostering a positive work culture can boost motivation and performance. 

    Know when termination is necessary 

    If an employee consistently fails to improve despite multiple interventions, termination may be the best option for both the individual and the business. However, terminating an employee requires careful consideration to avoid legal risks. 

    Before terminating an employee for poor performance: 

    • Document all performance discussions, feedback, and improvement plans 
    • Ensure compliance with company policies and labor laws 
    • Conduct a final meeting with human resources (HR) present 
    • Offer a respectful and professional exit process 

    How GMS Can Help With Employee Management 

    Managing employee performance requires expertise in HR best practices, compliance, and leadership development. Group Management Services (GMS) helps businesses navigate these challenges by providing: 

    • HR support to develop performance management strategies 
    • Training programs to upskill employees and enhance productivity 
    • Compliance guidance to mitigate legal risks associated with termination 
    • Employee engagement solutions to boost workplace morale and retention 

    Addressing poor performance isn’t just about fixing problems; it’s about building a stronger workforce. Whether through coaching, training, or structured improvement plans, investing in employee success leads to long-term business growth. If you need support managing employee performance, contact GMS today to learn how our HR solutions can help. 

  • After years of remote work, a new chapter is unfolding in the modern workplace: a strong push to return to in-person work. Whether driven by government mandates, evolving agency policies, or corporate strategies, the call for employees to come back to the office is generating a range of opinions. In this article, we’ll explore the recent government and corporate moves to end telework and what employers can do to strike the right balance for their teams.

    Government Mandates And Agency Shifts

    A significant catalyst in the push toward a return to in-person work comes directly from the federal government. According to a recent White House memorandum, all federal workers are required to terminate remote work arrangements and return to their offices full time, with exemptions allowed where deemed necessary. Similarly, several federal agencies such as the Environmental Protection Agency (EPA), General Services Administration (GSA), and the Department of Health and Human Services (HHS) have already ended telework agreements and set return-to-office dates. These moves signal a broader governmental effort to reinvigorate traditional work environments and reinforce in-person collaboration.

    Local And State Initiatives

    While the federal push is clear, state-level initiatives add another layer of complexity. In Ohio, for instance, Governor Mike DeWine has mandated that most permanent state employees return to their offices by mid-March 2025. Local business owners in downtown Columbus are already anticipating a boost from increased foot traffic, hoping that more in-person work will restore the pre-pandemic vibrancy of their communities. Yet, these measures are not without controversy, as some employees and local stakeholders express concerns over the abrupt change.

    Corporate Return-To-Office Policies: A Mixed Bag

    On the corporate front, the return-to-office (RTO) debate is far from uniform. A number of major companies have rolled out strict RTO mandates, while others are experimenting with hybrid models. For example:

    • Amazon has enforced a five-day in-office policy, though it’s now facing logistical challenges like limited desk space.
    • AT&T and Barclays have also mandated full-time office attendance for key teams, citing enhanced collaboration and innovation as benefits.
    • On the flip side, research from various case studies has raised concerns that strict RTO policies can drive away top talent, lower job satisfaction, and even hurt productivity. Some critics argue that these mandates may be more about managerial control than about boosting performance.

    Advice For Employers

    Given the diverse viewpoints and rapidly changing business landscape, here are some recommendations for employers navigating the return-to-office transition:

    1. Prioritize communication and connection:
    • Schedule regular check-ins, video meetings, and virtual social interactions to mitigate the isolation that remote work can create.
    • Consider hosting periodic in-person gatherings, even if only once a month, to foster team cohesion.
    1. Evaluate your business needs:
    • Assess which roles truly benefit from in-person collaboration and which can remain flexible.
    • Explore hybrid models that allow for both focused remote work and collaborative office days.
    1. Invest in a better office environment:
    • If you decide to bring employees back, ensure your workspace is designed for productivity and comfort. Upgrading technology, optimizing desk space, and creating communal areas can ease the transition.
    1. Be mindful of employee well-being:
    • Recognize that forcing a full-time return may have unintended consequences on morale and productivity.
    • Provide support through mental health resources, clear policy communication, and opportunities for feedback.
    1. Stay informed and compliant
    • Keep an eye on evolving federal, state, and industry guidelines, and work with legal counsel to ensure your policies meet current requirements.

    How GMS Can Help

    The RTO wave has been propelled by government mandates, evolving agency policies, and diverse corporate strategies. While the push for in-person work promises renewed collaboration and community, it also comes with challenges, especially for those who have grown accustomed to remote flexibility. The key for employers is to find a balance that supports both the operational needs of the business and the well-being of its employees.

    At Group Management Services (GMS), we’re committed to helping you navigate these transformative times. Whether you need guidance on revamping your workplace policies or expert support to manage the transition, GMS is here to make your business operations simpler, safer, and stronger.

    Partner with GMS today to build a resilient, future-ready workforce that thrives in both remote and in-person environments.

  • In today’s rapidly evolving business landscape, artificial intelligence (AI) isn’t just a buzzword, it’s becoming a transformational force. Recent headlines, such as the breakthrough by DeepSeek, highlight that even the biggest players in tech can be caught off guard if they aren’t prepared. To stay competitive and drive innovation, organizations must entertain an investment in developing an AI-ready workforce.

    The Critical Need For An AI-Ready Workforce

    The story of DeepSeek serves as a wake-up call. A group of relatively inexperienced engineers built an advanced AI platform that outperformed established competitors at a fraction of the cost. This dramatic success underscores a vital lesson: technology alone won’t guarantee success – people will. Organizations must upskill their teams and create a culture where employees are as comfortable with AI as they are with everyday digital tools.

    A global survey of C-suite executives reveals that AI ranks among the top strategic priorities for 2025. With significant investments planned – some companies are expecting to spend tens of millions on AI – businesses are rapidly realizing that their long-term success depends on having employees who not only understand AI but can actively leverage it.

    Upskilling Talent And Reimagining Work

    One of the greatest challenges today is the skills gap. According to recent Gallup survey data, only a small fraction of U.S. employees are comfortable using AI in their roles – and even fewer use it daily. This gap makes reskilling a top priority for organizations committed to AI adoption. Companies must invest in comprehensive training programs that empower employees to handle everything from routine automation to complex data analytics.

    Upskilling isn’t just about teaching new software skills – it’s about reimagining work. Organizations need to shift from traditional workflows to new, AI-augmented processes that foster innovation and improve decision-making. Embracing AI means redefining roles, improving collaboration between human and machine, and creating a culture that supports continuous learning.

    AI As A Catalyst For Enterprise Transformation

    Integrating AI into the workplace can reshape entire business functions. By harnessing AI, companies can:

    • Boost competitiveness: Automate routine processes and speed up decision-making to stay ahead in a fast-paced market.
    • Enhance operational efficiency: Free up human resources (HR) for strategic initiatives by delegating repetitive tasks to machine learning systems.
    • Drive data-driven decision making: Leverage real-time analytics to identify trends, tailor customer interactions, and optimize performance.

    These benefits are only achievable when organizations are proactive about upskilling their workforce and embedding AI into their operational DNA.

    Overcoming The Skills Gap: Strategies For An AI-Ready Culture

    Research indicates that a shockingly small percentage of firms are fully prepared for large-scale AI adoption. Building an AI-ready culture requires a multifaceted approach:

    • Develop a comprehensive AI strategy: Clearly communicate that AI is meant to augment human capabilities – not replace them. This involves setting a clear vision and establishing a human-centered AI framework.
    • Future-proof your workforce: Create an AI skill pyramid where every employee is “AI aware,” a select group are “AI builders,” and a few become “AI masters.” This way, the entire workforce is AI ready, with select groups developing and deploying AI solutions or solving complex AI-related business challenges.
    • Invest in reskilling and continuous learning: Implement targeted training programs, hands-on workshops, and mentorship opportunities to accelerate the adoption of AI technologies.
    • Embrace responsible AI practices: Prioritize ethical considerations, such as transparency, fairness, and accountability, to build trust and ensure compliance with evolving legal frameworks.

    How GMS Can Help

    At Group Management Services (GMS), our mission is to provide the HR tools and support to help empower your business to grow and succeed. As a professional employer organization (PEO) and benefits administrator, we understand that building an AI-ready workforce is not just about technology – it’s about people, culture, and strategic change.

    We can help your organization by:

    • Designing robust training programs: Leverage our expertise to develop customized upskilling initiatives that foster continuous learning.
    • Streamlining HR processes: Allow us to handle the administrative complexities, so you can focus on nurturing a culture that embraces innovation.
    • Driving organizational transformation: Our tailored HR solutions ensure that your talent development strategies align with business objectives, paving the way for a resilient, competitive enterprise.

    Now is the time to invest in your people. Contact GMS today and let us help prepare you and your workforce for the AI-driven future.

  • In today’s dynamic business environment, continual employee development is essential to drive organizational success. The Chief Learning Officer (CLO) has emerged as a strategic C-suite leader whose role has evolved from managing training programs to transforming entire learning ecosystems. In this blog, we explore what a CLO is, how the role has transformed over the years, and why organizations of all sizes should consider investing in this leadership position.

    What Is A Chief Learning Officer?

    A Chief Learning Officer is a senior executive responsible for aligning an organization’s learning strategy with its overall business goals. Traditionally emerging in the late 1980s, the CLO role has grown beyond classroom training to become a strategic partner in shaping organizational culture and building leadership capabilities. Today, CLOs report directly to the Chief Executive Officer (CEO) or Chief Human Resources Officer (CHRO) and work hand in hand with other C-suite executives to drive innovation and talent development across the organization.

    From trainer to transformer

    Over the past three decades, the CLO’s responsibilities have expanded dramatically. Initially, CLOs focused on delivering standardized training programs. However, as technology, digital learning platforms, and the demands of a hybrid workplace have evolved, the modern CLO has become an organizational architect. Today’s CLOs design comprehensive learning ecosystems that integrate digital tools, experiential learning, and data analytics to develop not just skills but also mindsets. They transform traditional training into initiatives that drive leadership, agility, and innovation.

    Key Responsibilities Of A CLO

    Modern CLOs do much more than schedule training sessions. Their core responsibilities include:

    • Strategic learning alignment: Mapping learning initiatives to business strategy and cultural values. CLOs ensure that the skills developed across the organization support critical business outcomes.
    • Designing learning ecosystems: They create learning content that ranges from online courses and interactive simulations to peer-to-peer coaching and immersive in-person experiences.
    • Leadership and change management: CLOs drive leadership development programs and foster a culture of continuous improvement. They also lead digital transformation efforts by leveraging new technologies and data-driven insights to personalize learning at scale.
    • Oversight of learning technologies: From learning management systems (LMS) to artificial intelligence (AI) tools, CLOs are tasked with selecting and optimizing technology solutions that support the evolving learning needs of the organization.

    Essential Skills And Qualifications

    The modern CLO must blend business acumen with deep expertise in learning and development. Some of the specialized skills include:

    • Strategic thinking: The ability to link learning initiatives directly to business strategy.
    • Data analytics and measurement: Using learning analytics to assess program effectiveness and demonstrate return on investment.
    • Digital literacy: Navigating digital learning platforms, online courses, and emerging technologies like AI for personalized learning.
    • Change leadership: Leading organizational transformation and managing resistance while fostering a culture of continuous improvement.
    • Learning experience design: Creating engaging, hybrid learning experiences that resonate with diverse employee populations.

    Many successful CLOs have over 15 to 20 years of corporate experience and hold advanced degrees in fields such as human resources (HR), business, or organizational development.

    The Future Of The CLO Role

    The future of the CLO is bright and increasingly strategic. Recent trends indicate that CLOs are evolving into “transformer” leaders who:

    • Revamp learning goals: Shifting from simply delivering content to cultivating mindsets and capabilities that prepare employees for future challenges.
    • Personalize learning methods: Moving away from one-size-fits-all training toward agile, personalized learning experiences that leverage digital platforms and social learning techniques.
    • Restructure learning departments: Transforming traditional training functions into lean, agile teams that operate as strategic business partners, curating both internal and external content to meet the evolving needs of the workforce.

    This evolution positions CLOs as critical drivers of organizational change, ensuring that companies not only keep pace with technological advancements but also foster a resilient, learning-centered culture.

    How Can You Become A CLO?

    For those aspiring to become a Chief Learning Officer, the path is multifaceted:

    • Build a strong foundation: Gain experience in human resources (HR), training, and talent development.
    • Develop business acumen: Learn to speak the language of business by understanding organizational priorities and strategic planning.
    • Pursue continuous education: Advanced degrees or specialized certifications in learning, organizational development, or leadership can be highly beneficial.
    • Network and mentor: Building relationships with current CLOs and other C-suite leaders is critical for understanding the role’s strategic impact and for gaining career opportunities.

    How GMS Can Help

    At Group Management Services (GMS), we understand that effective learning and development are the cornerstones of organizational success. Our comprehensive HR solutions, spanning payroll, employee benefits, risk management, and more, are designed to simplify your business operations. With decades of experience supporting companies of all sizes, GMS is well positioned to help you:

    • Develop robust learning programs: Leverage our expertise and tools to design, implement, and monitor effective learning strategies that align with your business goals.
    • Streamline HR processes: Allow us to handle the administrative complexities so you can focus on fostering a culture of continuous learning.
    • Drive organizational transformation: With our innovative approach and dedicated support, we help ensure that your talent development initiatives lead to measurable business outcomes.

    Contact GMS today and let us be your partner as you navigate the evolving landscape of employee development.

  • On March 17, 2025, the U.S. Department of Labor (DOL) will put into effect major updates to its Voluntary Fiduciary Correction Program (VFCP). This program encourages voluntary compliance by self-correcting violations of the law. The changes introduce a new self-correction component (SCC) that streamlines the process for correcting one of the most common fiduciary breaches: the late remittance of participant contributions and loan repayments. This update isn’t just regulatory fine print; it’s a significant development affecting how employers manage employee benefit plans, and it offers practical advantages for those looking to stay compliant without the administrative burden.

    What’s New Under The VFCP Update?

    Instead of submitting a full VFCP application and waiting for a “no-action letter” from the Employee Benefits Security Administration (EBSA), plan sponsors can now self-correct certain delinquencies. Once you submit an electronic SCC notice through EBSA’s online portal, you’ll receive an acknowledgement email confirming the submission.

    Key conditions for use:

    • Timely remittance: Delinquent participant contributions and loan repayments must be deposited within 180 calendar days of the applicable pay date or receipt.
    • Lost earnings limit: The SCC is available only if the “lost earnings” calculated on the principal amount are $1,000 or less. The VFCP online calculator must be used to determine this figure.

    Required documentation:

    • Contact information (including name, email, and employer identification number (EIN))
    • Plan identification details (plan name and number)
    • The principal and lost earnings amounts, along with the relevant dates (pay date and deposit date)
    • The number of participants affected by the correction

    Additionally, supporting documents, such as proof of payment, the VFCP calculator’s printable results, and a penalty of perjury statement, must be retained and provided to the plan administrator.

    How It Differs From The Traditional Process

    No formal no-action letter

    Traditional VFCP applications result in a no-action letter that assures no enforcement action will be taken. In contrast, SCC submissions receive a prompt email acknowledgment that confirms the corrective action has been logged.

    Cost and complexity

    Both the SCC and the traditional VFCP application carry no filing fee. However, for small-dollar corrections, the SCC offers a much more efficient route, reducing both time and administrative complexity.

    Broader regulatory context

    These changes are part of a wide update to the VFCP and the associated prohibited transaction exemption (PTE) 2002-51, reflecting the department’s commitment to encourage timely, voluntary corrections while safeguarding participants’ retirement benefits.

    What This Means For Employers

    As an employer or plan administrator, understanding these changes is crucial. Here’s what you need to consider:

    Improved efficiency

    The SCC process minimizes paperwork and speeds up the correction process, allowing you to resolve issues quickly and move on to other priorities.

    Enhanced compliance

    By meeting the 180-day remittance deadline and staying within the $1,000 lost earnings cap, your business can avoid costly enforcement actions and civil penalties under the Employee Retirement Income Security Act (ERISA).

    Tailored for small-dollar corrections:

    For the most frequent and smaller-scale delinquencies, the SCC offers a simplified alternative to the formal VFCP application process, saving your business valuable time and resources.

    Continued oversight

    Although the process is streamlined, strict documentation and timely submission requirements ensure that the department maintains adequate, keeping fiduciary responsibilities front and center.

    How GMS Can Help

    At Group Management Services (GMS), we understand that regulatory changes can be challenging to navigate. Here’s how we support your business through this transition:

    • Human resources (HR) expertise: We stay on top of regulatory updates like the VFCP changes so you don’t have to. Our team will help ensure your employee benefits plans are compliant with the latest requirements.
    • Streamlined administration: From payroll and tax compliance to risk management and benefits administration, GMS handles the administrative burdens so you can focus on growing your business.
    • Customized support: Whether you need assistance with documenting the SCC process or require an overall review of your HR practices, our dedicated professionals are here to help.
    • Innovation and integrity: At GMS, we champion a culture of innovation and transparent actions, ensuring that our solutions not only meet regulatory requirements but also make your operations simpler, safer, and stronger.

    Contact GMS here if you need assistance positioning your company to benefit from the streamlined self-correction process and continue safeguarding your employees’ retirement security.

  • In the early months of the year, many organizations ramp up their hiring efforts, marking the start of the year’s most active recruitment cycle. With new budgets approved and business goals outlined, companies recognize this time as an opportunity to secure top talent and build teams that align with their strategic objectives for the year. However, recruitment in today’s market goes beyond just filling vacancies; it requires a well-planned approach that considers workforce needs, market trends, and potential challenges that arise during slower hiring periods. By proactively planning their recruitment strategies, human resources (HR) leaders can ensure they attract, engage, and retain the right candidates. 

    Evaluating Workforce Needs For Hiring Success 

    Before launching recruitment campaigns, organizations must assess their current workforce. These crucial first steps include identifying skills gaps, forecasting future hiring needs, and understanding long-term talent requirements. As industries rapidly evolve due to technological advancements and shifting workforce dynamics, HR teams must anticipate what roles will be in demand. 

    Workforce planning involves analyzing company objectives and determining whether existing employees have the necessary skills to meet those goals. If there are skill shortages, businesses must decide whether to upskill current employees or bring in new talent. This approach is especially important in industries experiencing high turnover or emerging technologies that require specialized knowledge. By conducting a workforce audit, companies can develop a strategic hiring plan rather than simply reacting to immediate vacancies. 

    Building A Recruitment Campaign That Attracts Top Talent 

    A well-structured recruitment campaign is essential for capturing the attention of qualified candidates. It starts with crafting compelling job descriptions that clearly outline the role, responsibilities, and company culture. Candidates today are looking for more than just a paycheck; they want to work for organizations that align with their values and offer career growth opportunities. Businesses should emphasize their unique employer value proposition, highlighting benefits such as professional development, work-life balance, and company culture. 

    In 2025, digital recruitment strategies will continue to dominate. Companies must leverage multiple channels to reach candidates effectively. Job boards remain a reliable source, but social media, employee referral programs, and industry-specific networking platforms are becoming increasingly important. Employer branding also plays a significant role. Organizations that showcase their company culture, leadership, and employee success stories through digital content will be more likely to attract high-quality candidates. 

    Another key aspect of modern recruitment is the candidate experience. Job seekers expect a streamlined, transparent hiring process. Lengthy application forms, unclear timelines, and poor communication can deter top talent. Implementing an applicant tracking system (ATS) can help organizations manage applications efficiently and keep candidates engaged throughout the process. 

    Overcoming Recruitment Challenges During Slow Hiring Periods 

    While the early months of the year are typically active hiring periods, businesses often encounter recruitment challenges in slower months. For example, summer and the holiday season tend to see fewer job seekers actively looking for new roles, leading to a limited talent pool. However, HR teams can use these periods strategically by building and maintaining a talent pipeline. 

    Creating relationships with potential candidates before positions open allows businesses to move quickly when hiring needs arise. This can be done through networking events, talent communities, and keeping in touch with past applicants. Additionally, companies should focus on employer branding during slow months, strengthening their reputation as an employer of choice so that when hiring picks up again, they are top of mind for job seekers. 

    Flexibility is another factor that can help businesses navigate slower hiring months. Offering contract, remote, or project-based roles can attract candidates who may not be actively searching for full-time employment but are open to new opportunities. By diversifying hiring options, companies can continue acquiring talent even when recruitment activity typically slows. 

    Key Considerations For 2025 Recruitment Strategies 

    The recruitment strategies are constantly changing, and 2025 will bring new challenges and opportunities. Artificial intelligence (AI) is becoming an integral part of hiring, with AI-powered tools assisting in candidate sourcing, resume screening, and interview scheduling. While technology can enhance efficiency, organizations must balance automation with a human touch to ensure a positive candidate experience. 

    Diversity, equity, and inclusion (DEI) initiatives will continue to shape recruitment strategies. Companies prioritizing diverse hiring practices will enhance their employer brand. In 2025, job seekers will be more conscious of workplace diversity efforts, and businesses that actively promote inclusivity will have a competitive edge in attracting top talent. 

    Another emerging trend is employee advocacy. Encouraging current employees to share job openings and company culture on their personal social media networks can significantly enhance recruitment efforts. Peer recommendations carry more weight than traditional job postings, making employee referrals a valuable strategy for attracting high-quality candidates. 

    How To Build A Winning Recruitment Strategy 

    Recruiting the right talent requires time, expertise, and resources, which are elements many businesses may not have readily available. That’s where Group Management Services (GMS) comes in. GMS offers comprehensive recruiting and training solutions designed to help businesses find and develop top talent efficiently. 

    • Our recruiting services connect businesses with top job boards, including Indeed and LinkedIn, streamlining the hiring process and increasing the visibility of job postings.  
    • We provide an ATS that allows HR teams to manage every stage of the hiring process seamlessly, reducing administrative burdens and improving candidate experience.  
    • GMS offers customized employee training programs to ensure new hires receive the necessary skills and development opportunities to thrive within their roles. 

    By partnering with GMS, companies can focus on growing their business while we handle the complexities of recruiting and training. Whether you need assistance with sourcing candidates, managing applications, or developing workforce training programs, GMS provides tailored solutions to help businesses succeed.  

    Ready to optimize your recruitment strategy? Contact GMS and learn how we can support your hiring and training needs. 

  • Key Takeaways

    1. Next steps: The BWC Board will vote on the six percent reduction on February 28th.
    2. Effective date: If approved, the rate change takes effect on July 1, 2025.
    3. Potential savings: Ohio private employers would pay $60 million less in total premiums over the next fiscal year.

    Ohio’s private employers may soon see yet another reduction in their workers’ compensation premiums. On January 24, 2025, the Ohio BWC announced a proposal for a six percent rate cut, a move that could save employers across the state a collective $60 million starting in July of this year.

    Continuing A Trend Of Rate Decreases

    If approved at the BWC Board of Directors’ meeting on February 28th, this would be:

    • The sixth rate reduction since Governor Mike DeWine took office in 2019.
    • The 16th decrease in the past 17 years, going back to 2008.

    According to the BWC, the average premium levels for both private and public employers (totaling about 257,000 across Ohio) now stand at their lowest in 60 years.

    Why The Proposed Rate Cut?

    BWC Administrator/CEO Stephanie McCloud emphasizes that the continued trend toward lower rates reflects the commitment of Ohio’s workforce to promoting safety on the job. In addition, program participation, fewer claims, and a strong focus on injury prevention have helped keep costs in check.

    Impact On Employers

    This six percent rate decrease is an average statewide premium reduction. Actual savings for individual employers will vary based on:

    • Industry risk and expected future claims costs
    • Recent claims history
    • Participation in various BWC safety and discount programs

    Nonetheless, Ohio businesses, particularly small and midsize businesses (SMBs), stand to benefit significantly if the BWC Board gives final approval.

    Looking Ahead

    With the BWC’s track record of approving proposed cuts, many anticipate a favorable outcome on February 28th. Ohio Chamber of Commerce President and CEO Steve Stivers has already expressed strong support, noting that this decision would help make Ohio “the best place in the nation for business.”

    How GMS Can Help

    If you’re looking to take full advantage of potential premium savings or want to ensure your workplace safety measures and BWC program participation are optimized, Group Management Services (GMS) can help. Our experts will work alongside your organization to:

    For more information on how this rate reduction could affect your organization, or to explore additional ways to reduce overhead costs and streamline your HR, contact us today. We’re here to help you stay informed, compliant, and prepared for changes as they develop.

  • Co-employment is a strategic partnership between a business and a professional employer organization (PEO) that enables the sharing of employer responsibilities. This arrangement allows business owners to focus on core operations while the PEO manages essential human resources (HR) functions such as payroll, compliance, and benefits administration. Understanding the dynamics of co-employment can help businesses leverage their benefits effectively and avoid potential pitfalls. 

    Defining Co-Employment 

    The National Association of Professional Employer Organizations (NAPEO) states, “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).” Ultimately, the PEO does not make decisions for the business; all control remains with the business itself. 

    The business is responsible for all business decisions, operations, day-to-day supervision of employees, job assignments, employee reviews and assessments, and determining the employee’s salary and benefits offerings. Although the PEO may be recognized by the state as the employer of record, the business retains the ultimate authority over crucial business decisions. The main advantage of sharing employer status is to receive access to tools and HR services that are typically out of reach for small businesses.  

    Benefits Of Co-Employment 

    Greater buying power  

    Small businesses often lack the purchasing power of larger companies, but co-employment helps level the playing field. Through a co-employment relationship, businesses can leverage economies of scale. PEOs utilize the collective buying power of all their group health clients, allowing them to secure more cost-effective, high-quality group health plans. 

    Some PEOs offer additional benefits beyond medical and dental insurance, such as retirement savings plans, pet insurance, legal insurance, and more. By combining the collective strength of all their clients, PEOs enable small to midsize businesses to access competitive premiums similar to those of large companies. This means businesses can benefit from lower health insurance premiums while still offering comprehensive coverage to their employees. 

    With rising health care costs, this buying power is more valuable than ever, allowing companies to provide top-tier benefits without sacrificing their bottom line. 

    Simpler payroll processing  

    In a co-employment relationship, the PEO is responsible for paying your employees. Businesses must apply for an Employer Identification Number (EIN) to manage payroll. Companies in a co-employment relationship agree to let the PEO handle this responsibility under its own EIN. 

    While changing the EIN might not seem exciting, it lets you offload many complex, time-consuming tasks. Using the PEO’s EIN, the PEO becomes responsible for more than just issuing paychecks. These additional payroll administrative tasks include: 

    • Calculating and withholding income and payroll taxes from employee paychecks 
    • Calculating and distributing overtime pay 
    • Reporting these taxes to the Internal Revenue Service (IRS) 
    • Determining proper employee classifications 
    • Filing and issuing W-2s and other payroll forms 

    This transfer of responsibility saves you significant time and effort. Additionally, having your PEO manage these tasks ensures that all calculations and filings are accurate and compliant with payroll guidelines. With a PEO, you can trust that your payroll is handled by trained professionals. 

    Safer workplaces 

    Businesses can also benefit from a co-employment relationship through improved workplace safety and risk management. A PEO can help your company qualify for workers’ compensation discounts and maintain lower unemployment tax rates, saving you money and reducing future headaches. 

    PEOs can assist with safety culture and claims management. These processes not only create a safer environment for employees but also help reduce workers’ compensation costs. Risk management measures include: 

    • Safety training 
    • Risk assessments 
    • Timely reporting 
    • Post-accident investigations 
    • Return-to-work programs 

    Better business alignment 

    As your company grows, you may need more than just payroll administration or benefits assistance. The co-employment relationship gives PEOs a vested interest in your business goals, working with you to identify growth opportunities and retain talented employees. A PEO can support your growth through: 

    • Employee recruiting and training 
    • Performance management 
    • Unemployment claims 
    • Human resource audits 
    • Wellness programs 
    • Telemedicine 

    In addition to helping you grow, being co-employed by a PEO means you have access to experts when you need them. This breadth of resources helps you stay on top of trends and regulatory changes that can impact your business. 

    Common Concerns About Co-Employment 

    Despite its benefits, some business owners hesitate to engage in co-employment due to misconceptions, such as: 

    • Loss of control: Business owners worry they will lose authority over their workforce. However, in a co-employment relationship, the client company retains full control over hiring, terminations, and workplace culture. A PEO serves as a trusted advisor, providing expert support and resources while allowing the business to maintain its leadership and decision-making power. 
    • Cost concerns: While partnering with a PEO requires a financial investment, the long-term savings on compliance, payroll, and benefits outweigh the costs. Businesses can streamline operations, reduce errors, and access high-quality benefits, ultimately enhancing efficiency and profitability. 
    • Employee confusion: Some employees may initially feel uncertain about their relationship with the PEO. However, clear communication and transparency about roles and responsibilities can alleviate these concerns and foster a positive working relationship.  

    Co-Employment Statistics  

    Partnering with a PEO through a co-employment arrangement offers numerous tangible benefits, including: 

    Cost savings on HR and benefits 

    • Studies from NAPEO indicate that businesses partnering with PEOs experience a 27% return on investment (ROI) through cost savings in HR administration and benefits procurement. 
    • PEOs leverage economies of scale to negotiate better health insurance rates, saving businesses up to an estimated 30% on premiums compared to standalone plans. 

    Improved compliance and risk mitigation 

    • PEOs stay updated on evolving labor laws, ensuring businesses remain compliant with regulatory changes such as overtime pay rules and workplace safety requirements under the Occupational Safety and Health Administration (OSHA). 
    • They assist with Equal Employment Opportunity Commission (EEOC) compliance, helping prevent discrimination lawsuits and penalties. 

    Enhanced employee retention and satisfaction 

    • Access to comprehensive benefits packages, including employee assistance programs (EAPs), professional development opportunities, and flexible spending accounts (FSAs), can boost employee morale and reduce turnover. 
    • According to NAPEO, businesses using PEOs have 10-14% lower turnover rates than those that don’t. 

    Streamlined hiring and onboarding processes 

    • PEOs offer applicant tracking systems (ATS), background checks, and onboarding software to ensure a seamless hiring experience. 
    • They help small businesses attract top talent by offering competitive compensation packages and structured onboarding programs. 

    Selecting The Right PEO Partner  

    When choosing a PEO, businesses should conduct thorough due diligence, considering factors such as: 

    • Accreditations and certifications: Look for PEOs certified by the IRS, ensuring they meet strict financial and ethical standards. These PEOs are called CPEOs.  
    • Industry experience: Choose a PEO with experience in your specific industry to ensure compliance with sector-specific regulations. 
    • Service offerings: Assess whether the PEO provides the necessary HR services tailored to your business’s needs, such as recruitment support or performance management. 
    • Technology capabilities: Ensure the PEO offers user-friendly HR technology solutions for payroll, benefits management, and employee self-service. 

    By partnering with a reputable PEO, businesses can access valuable resources and expertise that would otherwise be out of reach, creating a more efficient and productive work environment. If you’re considering co-employment, Group Management Services (GMS) can help guide you through the process and tailor solutions that meet your business’s unique needs. Contact us today to learn more about how we can support your business growth and help you reclaim your valuable time. 

  • President Donald Trump has been sworn in as the 47th President of the United States, making him the first leader since Grover Cleveland to serve non-consecutive terms. Despite the administration still being in its early days, we’re already seeing substantial changes to labor and employment policy, including signals about diversity, equity, and inclusion (DEI) programs, workplace discrimination enforcement, and federal contracting requirements. 

    Here’s what we’ve gathered so far, plus some key insights to help guide your business decisions. 

    Major Shakeup At The EEOC

    The Equal Employment Opportunity Commission (EEOC) recently experienced an unprecedented staffing change beyond the appointment of Andrea R. Lucas as Acting Chair:

    Firing of two democratic commissioners
    President Trump terminated Democratic Commissioners Charlotte Burrows and Jocelyn Samuels, effectively removing them from office before their terms expired. Trump also dismissed EEOC General Counsel Karla Gilbride. Legal challenges questioning the scope of the president’s power are already in the works, and it is unclear whether courts will ultimately reinstate the terminated commissioners or uphold the firings.

    Current status
    With Burrows and Samuels gone, the EEOC now has only two remaining commissioners: Acting Chair Andrea R. Lucas (Republican, originally appointed in 2020) and Commissioner Kalpana Kotagal (Democrat, confirmed in 2023). Because the EEOC must have a three-member quorum to take formal actions such as issuing new regulations or formal guidance, President Trump is expected to quickly appoint at least one new Republican commissioner, giving him a functioning majority.

    Acting Chair Andrea Lucas’s priorities
    Lucas has already outlined several top priorities, including:

    • “Rooting out unlawful DEI-motivated race and sex discrimination.”
    • “Defending the biological and binary reality of sex and related rights.”
    • Potentially revisiting or reversing the EEOC’s sexual harassment guidance.
    • Reconsidering the Pregnant Workers Fairness Act (PWFA) rules, especially those connected to abortion-related accommodations.

    Implications of the firings
    If the courts uphold Trump’s decision, Republicans could rapidly reshape the EEOC’s policies—speeding up the pivot away from “disparate impact” class actions and heightening scrutiny of certain DEI initiatives and LGBTQ+ protections. However, if a court temporarily or permanently reinstates the fired commissioners, any new regulations or guidance the reconfigured EEOC issues could be invalidated or tied up in litigation. This legal limbo could complicate employers’ compliance efforts for months or even years.

    What this means for employers 

    • DEI audits may become a focal point for the reconstituted EEOC. Even though legal challenges may slow changes, businesses should ensure their DEI programs are carefully structured to comply with existing law (i.e., not imposing quotas or favoring one group over another). 
    • Employers in states or localities with robust anti-discrimination protections should remain mindful that federal changes do not necessarily override state or local laws. 
    • If your organization has been relying heavily on DEI initiatives, it’s a good time to consult legal counsel or human resource (HR) experts, such as Group Management Services (GMS), to confirm the legality of your programs and make any necessary adjustments. 

    Rollbacks Affecting Federal Contractors 

    Separately, President Trump issued an executive order rolling back portions of Executive Order 11246, which had expanded DEI responsibilities for federal contractors. This is consistent with the White House’s newly stated mission to “combat illegal private-sector DEI preferences” and push for more “colorblind” or strictly equal approaches to hiring and promotion. 

    What this means for employers 

    • Federal contractors should review any contractual obligations related to DEI or Affirmative Action Plans. Changes in guidance from agencies like the Office of Federal Contract Compliance Programs (OFCCP) may be on the horizon. 
    • Even non-federal contractors could feel an impact: the order instructs agencies to “enforce our longstanding civil-rights laws,” including scrutiny on private companies’ DEI policies. 
    • With litigation on the rise, both from special-interest groups opposing DEI and from employees advocating for inclusion, employers should walk a careful line in how they design or continue DEI initiatives. 

    Congressional Developments And DOL Moves 

    Meanwhile, the early days of the new Congress, led by Speaker Mike Johnson (R-LA) in the House, signal potential labor reforms. Various new measures, like Representative Zach Nunn’s proposal to limit telework or potential new oversight for the Occupational Safety and Health Administration (OSHA), underscore a theme: tightening certain policies that expanded under the previous administration. 

    In addition, the Department of Labor’s (DOL) new leadership lineup is taking shape. Former EEOC Commissioner Keith Sonderling is set to serve as Deputy Secretary of Labor, pending Senate confirmation. We also expect a hearing for the new Labor Secretary nominee soon, which could help clarify how actively the DOL might revisit rules on wage and hour, workplace safety, and more. 

    What this means for employers 

    • Keep an eye on the Wage and Hour Division for guidance changes on overtime exemption standards, tip credits, and pay equity. 
    • OSHA is rescinding some COVID-19 era rules and may pivot more toward the administration’s broader stance on workplace regulations, meaning less pandemic-specific guidance but potentially renewed focus on enforcement of general safety obligations. 
    • The immediate takeaway is that compliance is still key. With shifting rules, partnering with a professional employer organization (PEO) like GMS helps ensure you’re always up to speed on federal requirements. 

    Key Takeaways And Next Steps 

    1. DEI under the microscope: 

    With the new acting EEOC Chair Andrea Lucas prioritizing “unlawful DEI-motivated race and sex discrimination” and “biological and binary reality of sex and related rights,” expect more investigations into the structure and fairness of DEI programs. 

    2. Monitor federal contracts: 

    If you’re a federal contractor, you may need to amend or revert certain DEI obligations. 

    3. Stay nimble: 

    HR compliance requires vigilance in times of political transition. Expect new DOL guidance, House and Senate proposals, and possible Supreme Court developments, especially around wage and hour standards and Affirmative Action-related issues. 

    How GMS Can Help 

    At Group Management Services, we monitor these changes daily and support businesses with: 

    • HR policy audits and compliance to ensure your workforce practices align with the shifting legal landscape. 
    • DEI best practices and robust training that stays within the bounds of anti-discrimination laws. 
    • Payroll and tax compliance solutions that adjust to new federal and state-level rules. 
    • Risk management guidance including how best to navigate a potential uptick in discrimination claims. 

    We encourage our clients and partners to stay informed and remain agile. If you’re unsure about how these first 90 days might affect your HR strategies, contact us here for tailored advice and updates on the latest regulatory guidance. 

  • Human resources (HR) is undeniably in a state of change. A convergence of global volatility, skills shortages, and higher C-suite expectations have left many HR teams asking the same question: How do we pivot from a reactive business to a ready one?

    Forward-thinking HR departments are paving the way by focusing on six core priorities: 

    1. Flow 

    Embedding HR in the organization’s strategy means that the “value” HR operationally provides flows across the entire enterprise, shaping decisions not just in HR but also in finance, operations, and leadership. Rather than being siloed, HR must be at the center of business decision-making. 

    2. Digital 

    Legacy processes and disconnected systems hamper the employee experience and slow time-to-hire. Model HR departments adopt a beyond-implementation mentality, focusing on integrated, seamless solutions that help employees collaborate, learn, and work more efficiently. 

    3. Analytics 

    Data can answer the real questions the business is asking, around engagement, retention, skill needs, and strategic objectives. Leading HR organizations do more than just tracking dashboards; they blend HR data with finance or operations metrics to unlock deeper insights. 

    4. Talent 

    Managing and developing skills is foundational in an ultra-competitive labor market. Forward-thinking HR teams experiment with talent marketplaces, skill matching, and real-time development. Shift from a job-based approach to a skills-based approach, ensuring the right people can plug into the right opportunities quickly. 

    5. Purpose 

    Today’s employees want more than just a paycheck; they want to align with a company’s mission and values. It’s ideal to utilize HR to integrate environmental, social, and governance (ESG) initiatives, achieve net zero goals, and embed broader organizational purposes into daily operations, enhancing engagement and brand reputation. 

    6. Wellbeing 

    People operating in high-stress, rapidly changing environments can’t sustain performance without a holistic approach to mental, physical, and emotional health. Future-fit HR invests in innovative well-being programs, from flexible schedules to mental health support, to help employees and the business thrive. 

    Why HR Data Is The Key To Strategic Decisions 

    Data is the engine driving clarity in the constantly changing working world. Historically, HR was left out of strategic decisions due to a lack of credible analytics. Now with the rise of more advanced HR technologies, it’s becoming imperative to include their insights. 

    Analytics are a competitive advantage 

    • Better business outcomes: HR Data isn’t just for tracking turnover or cost-per-hire; it can reveal deep organizational insights into productivity, training return on investment (ROI), or workforce planning. 
    • Leadership buy-in: Presenting HR data in terms of direct financial or operational metrics helps HR secure executive support. 

    Turning data into action 

    • Focus on integration: Merging HR data (e.g., turnover, performance) with operational data (e.g., revenue or project outcomes) yields strong evidence for planning. 
    • Predictive insights: Data can forecast churn, spot high-potential candidates, and identify risk areas, truly future-proofing the workforce strategy. 

    Single source of truth 

    • Data quality and alignment: Many organizations still face management misunderstandings about data’s value. Overcoming these hurdles, by ensuring data is accurate, governed, and well-presented, reinforces HR’s credibility. 
    • Cultural shift: Building a data-driven mindset in HR fosters consistent, evidence-based decisions, from hiring to performance management. 

    Nineteen HR Metrics To Supercharge Your Function 

    Bridging the strategic approach and data-driven mindset requires practical metrics. Below is a quick snapshot of some key HR metrics to track: 

    1. Time to hire: Measures recruiting efficiency. High values may indicate a cumbersome process or poor candidate experience. 

    2. Cost per hire: Helps track ROI in recruiting methods and indicates how well the recruitment budget is managed. 

    3. Quality of hire: Evaluates new hire performance, cultural fit, and retention, reflecting the effectiveness of your talent strategy. 

    4. Early turnover (first-year turnover): Pinpoints where mismatches occur before employees fully ramp up. 

    5. Turnover rate: Differentiating between high-performer and low-performer turnover can guide targeted retention strategies. 

    6. Performance & potential: Tools like the “9-box grid” help you map future leaders and identify skill gaps. 

    7. Revenue per employee: Illustrates overall workforce productivity and the financial impact of your talent. 

    8. Billable hours per employee: Key for professional service firms, ties directly to revenue and capacity planning. 

    9. HR to employee ratio: Shows how effectively HR resources are allocated. 

    10. Effectiveness of HR software: Adoption, active users, and retention reflect how well systems are integrated. 

    11. Absenteeism: High rates may signal stress, dissatisfaction, or health issues. Early detection can prevent bigger problems. 

    12. Training expenses per employee: Measures the investment in continuous learning, which can correlate with retention and agility. 

    13. Overtime expenses: Potential sign of resource constraints, sometimes linked to burnout or suboptimal scheduling. 

    14. Engagement rating (e.g., employee Net Promoter Score (eNPS)): Tracks employee sentiment, a direct driver of performance and advocacy. 

    15. Employee satisfaction: Captures workforce contentment, often measured via surveys covering workload, environment, and career growth. 

    16. Leadership effectiveness: 360-degree reviews or performance data to ensure leadership drives team success. 

    17. Time since last promotion: Long intervals might hint at career stagnation or flight risks among high potentials. 

    18. Soft HR metrics: Qualitative measures (e.g., manager communication effectiveness) can complement numeric data. 

    19. Single source of truth: Ensuring all HR data is integrated is itself a “meta-metric” that can drastically increase analytics power. 

    Putting It All Together: Next Steps For HR In 2025 

    Embed HR in the flow of work 

    • Act as a strategic partner, linking your function’s analytics with overall business goals. 
    • Co-create solutions with finance, operations, and the C-suite. 

    Double down on analytics 

    • Identify the top ten metrics that matter most to your organization, then measure, compare, and present them consistently. 

    Prioritize talent & well-being 

    • Offer upskilling and career development programs that fulfill both company and employee goals. 
    • Design well-being initiatives that address mental, physical, and emotional health, preventing burnout and improving retention. 

    Cultivate purpose & digital strategy 

    • Align your HR roadmap with your organization’s purpose, including ESG and sustainability goals. 
    • Evaluate and upgrade digital tools for a better employee experience and more effective processes. 

    Monitor & refine with key metrics 

    • If you see high early turnover, reevaluate your onboarding or selection process. 
    • If revenue per employee is dipping, cross-check engagement and skill data to realign your workforce strategy. 

    Strengthening Your HR Systems 

    The era in which HR becomes a connected, analytics-led, future-focused function is accelerating. By blending insights from HR data and implementing a robust set of metrics, you can shape an HR function that actively drives business strategy. 

    Remember, each organization’s journey is unique, but the overarching message is clear. Invest in digital tools, glean real insights from analytics, build HR’s strategic credibility, and keep the workforce’s well-being at the heart of everything you do. That is the surest path to success in 2025 and beyond. 

    At Group Management Services (GMS), we provide small to midsize businesses (SMBs) with tailored HR services that allow the company to focus on what really matters, growing their business. 

    Ready to accelerate your HR transformation? Contact us to explore how GMS can provide you with HR services that truly move the needle.