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  • As a small business owner, you wear many hats, from managing payroll to ensuring the safety of your employees; you do it all. As technology advances, phishing attacks have become more prominent, especially for small business owners. Phishing is a type of social engineering attack often used to steal user data, including login credentials and credit card numbers. It typically occurs when an attack dupes a victim into opening an email, instant message, or text message. The recipient is then tricked into clicking a malicious link which can lead the attacker to install malware. Malware freezes the system as part of a ransomware attack revealing sensitive information. A report showed that in the middle of 2022, the Anti-Phishing Working Group (APWG) observed 1,270,883 total phishing attacks.

    Understanding The Effects Of Phishing On Your Business

    Small businesses are a popular target for phishing attacks because they often have smaller cybersecurity budgets and weaker security measures in place. A phishing attack has overwhelming results. Should it happen to an individual, it can include unauthorized purchases, stealing of funds, or identity theft. If a business is attacked, you could sustain severe financial losses, reputation, consumer trust, legal action, and regulatory penalties. As a small business owner, you don’t have the time or expertise to handle a situation at this level.

    There are many tactics that these cybercriminals utilize when attacking a small business. Most commonly seen is an email sent out which appears to be from a legitimate source, such as a financial institution or vendor you frequently do business with. Within the email, there’s a link that redirects an employee to a fake website where they’re asked to enter personal or financial information. These phishing emails are used to install malware on your business’s network or carry out a ransomware attack. Once the malware is installed on your network, it can access your business data and systems. I think you can guess what happens next.

    How To Prevent Phishing Attacks

    While these cyber attackers are very smart and good at what they do, phishing attacks are avoidable if you know how to identify and prevent them correctly. Understand the following tips for identifying and preventing phishing scams:

    • Know what a phishing scam looks like
    • Don’t click on links unless you are 100% sure what they are – The safest way is to enter the website in your own browser
    • Get free anti-phishing add-ons
    • Don’t give your information to an unsecured site
    • Rotate passwords regularly
    • Don’t ignore updates
    • Install firewalls
    • Don’t be tempted by pop-ups 
    • Don’t give out vital information via email
    • Have a data security platform to spot signs of an attack

    The Benefits Of Partnering With GMS

    While you can take the above steps to prevent phishing attacks within your business, partnering with Group Management Services (GMS) will provide you with additional resources. The first and most crucial step when preventing these attacks is education. When you partner with GMS, you gain access to our learning management system (LMS). Within this system, you and your employees can take continued education courses on what phishing looks like and additional measures you should be taking.

    Brett Kowalski, GMS’ IT Director, stated, “Having a strong cybersecurity program in place should be a top priority for business owners in today’s climate. Educating your workforce is the key to protecting your company’s data as well as preventing potential attacks. The hackers are getting increasingly sophisticated in their attempts to obtain information, which is why business owners must invest in a credible program or service offering to stay on top of the current trends within cybersecurity.”

    Interested in learning more? Contact us today.

  • During a press conference on February 2nd, 2023, President Joe Biden announced he signed a memorandum laying out a national program of paid family and medical leave for employees. The conference also marked the 30th anniversary of the Family and Medical Leave Act (FMLA). The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Eligible employees are entitled to the following:

    • 12 workweeks of leave within 12 months for:
      • The birth of a child and care for the newborn child within one year of birth
      • The placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement
      • To care for the employee’s spouse, child, or parent who has a serious health condition 
      • A serious health condition that makes the employee unable to perform the essential functions of his or her job
      • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty”
    • 26 workweeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin (military caregiver leave)

    Improvements That Will Be Made

    As millions of workers across the country still face impossible choices between keeping a paycheck and caring for their families or themselves, the Biden-Harris Administration has taken proactive steps to assist these workers. Alongside this announcement at the press conference, they will continue to take action on national paid family and medical leave, affordable childcare, and home and community-based care so that all Americans can care for and financially support their families.

    President Biden’s memorandum will support Federal employees’ access to leave. It specifically calls on the head of Federal agencies to better support the access to leave without pay for Federal employees. In addition, it will also build on additional Administration efforts, improving access to and awareness of family and medical leave, which include the following:

    • Ensuring military personnel have access to 12 weeks of paid parental leave
    • Support paid leave efforts in states
    • Assisting employees that are impacted by cancer to understand their rights under the FMLA

    Alongside these efforts, the actions will also build on actions taken to support the economic security for women and families, which include: 

    • Protecting the health and economic security of pregnant workers
    • Extending protections for nursing employees
    • Increasing investments in early childhood education and childcare
    • Supporting women’s rights to be safe in the workplace and free from sexual harassment and assault

    Additional Steps That Should Be Taken

    While there’s still much work to do to help employees during times of need, it’s essential as a business owner to take additional steps to ensure your employees get the help they need. While laws constantly change, perhaps you focus on enhancing your benefits program offerings. Do you currently offer benefits to your employees? Are there any other benefits you could offer your employees? Do you currently provide maternity leave? The main question you should ask yourself during these unprecedented times is, how can I stand out from my competition? In a tight labor market, you must find ways to stand out from the competition, and the number one way to do that is through your benefits program. Companies that offer great compensation and benefits to employees experience 56% lower attrition.

    So, where do you begin? Partner with a professional employer organization (PEO) like GMS to help you stand out from businesses similar to yours. While we offer HR, risk management, and payroll services, we also help you choose a competitive benefits program that your employees want and need. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively. Contact us today to get started.

  • We all know that the COVID-19 pandemic affected individuals and families worldwide. Most recently, inflation has flooded into the daily lives of Americans, causing the price of necessities to skyrocket. It remains clear that the highest inflation we’ve seen in decades has affected individuals in ways you may not have considered. Inflation is defined as the rate at which the cost of a good or service increases. The cost of food, housing, gasoline, utilities, and other goods have skyrocketed by 7.7% over the past 12 months – nearly a 40-year-high. While inflation is hitting just about everyone, low-income households are experiencing it a little harsher than others as employee wage increases fail to keep up with inflation. This has forced families to shift their budgets to cover the necessities needed to survive these challenging times.

    Cutting Back On Retirement Savings

    Many Americans have had to reevaluate their retirement saving habits because of inflation. A survey showed that half of U.S. adults saving for retirement had to pause their saving efforts in 2022 because of inflation. On top of that, 32% withdrew from their retirement savings, and 41% indicated they stopped contributing to their retirement funds. While inflation may seem like it’s winding down ever so slightly, inflation is not going away anytime soon. Kelly LaVigne, VP of Consumer Insights, Allianz Life, expressed, “While we all hope that the pace of inflation will slow, it will take time to moderate. Consumers need to prepare themselves by talking to a financial professional and incorporating ways to help fight the effects of inflation into their portfolio so that long-term inflation doesn’t affect retirement.”

    Tom Smith, Director of Retirement Services at GMS, stated, “With inflation increasing and the cost of living rising, it’s essential you are saving in your 401(k), especially if your company offers an employer match. You’re leaving free money on the table if you stop contributing altogether. If you’ve exhausted all options for cutting back on spending and are still looking to dial back your deferral amount, try and take full advantage of the employer match. This means if you’re contributing eight percent right now, but the match requires you to contribute at least five percent, don’t decrease your contribution to less than five percent. If you want to retire at some point, you need to have a variety of sources to draw income. It’s important to pay yourself first, and a 401(k) is a great option to do that with convenient payroll deductions and tax advantages.”

    How You Can Step In As An Employer

    As we all remain concerned about the economy and how it could affect you, it’s essential as a business owner to ensure you take every step to help your employees. For starters, if you don’t already offer a retirement plan for your employees, consider doing so. From there, consider matching your employee’s contributions. Employee matching is the best way to maximize your retirement savings while also receiving benefits for your business. If you’re unsure where to start, contact Group Management Services (GMS). GMS is a professional employer organization (PEO) that helps small businesses by taking on the administrative burdens you don’t have the time or expertise to handle. We help in all areas of your business, whether it be risk management, HR, benefits, or payroll, we do it all. We can help you set up a fully customizable retirement savings plan that makes your company more attractive to quality employees. When you partner with GMS, you can easily establish the following:

    • 401(k) eligibility requirements 
    • Vesting schedules
    • Tax-deductible matching
    • Profit-sharing 

    Contact us today so, you can begin helping your employees during these challenging times.

  • As the state of Michigan anxiously awaited the decision on minimum wage, the Michigan One Fair Wage v. Attorney General case results are in. On January 26th, 2023, the Michigan Paid Leave Medical Leave Act (PMLA) and Michigan Improved Workforce Opportunity Wage Act implemented in 2019 will remain in place. They found that the Michigan Legislature needed more constitutional authority to adopt and subsequently amend two 2018 ballot initiatives. If this had passed, the minimum wage would have increased to $12 per hour in 2023 and increase tipped wages to the full minimum wage. In addition, it would have enacted one of the country’s most extensive paid sick leave laws. These would have significantly impacted business owners, forcing them to make drastic changes to their paid time off policies (PTO) and procedures.

    What This Means For Business Owners In Michigan

    The good news is that because the lower court’s decision was reversed and given immediate effect, businesses are no longer forced to make significant changes to their PTO policies and wage schedules beginning February 19th, 2023. The minimum wage will stay the same at $10.10 an hour. However, there will most likely be an appeal, so employers will want to keep an eye out for any further developments relating to this case.

    How GMS Can Help

    Everchanging rules and regulations are constant battles business owners have to juggle. However, when you partner with a professional employer organization (PEO) like GMS, you no longer have to carry the weight on your shoulders. We take on all the administrative burdens you don’t have the time or expertise to manage. GMS experts keep you up to speed with new laws and regulations you should be aware of for your business. Save yourself time and contact us today.

  • With the uncertainty of today’s economy, where employees are becoming more independent and knowledgeable, there has been a drastic increase in employment-related lawsuits, making employment practices liability insurance (EPLI) a must-have. EPLI covers businesses against claims made by workers that their legal rights as employees of the company have been violated. It protects a variety of different employee lawsuits, including claims of:

    • Sexual harassment
    • Discrimination
    • Wrongful termination
    • Breach of employment contract
    • Negligent evaluation
    • Failure to employ or promote
    • Wrongful discipline
    • Deprivation of career opportunity 
    • Wrongful infliction of emotional distress
    • Mismanagement of employee benefit plans

    Depending on the type of business you operate, and how many employees you have, along with various risk factors, the cost of EPLI coverage varies. This coverage will essentially reimburse your business against the costs of defending a lawsuit in court. The policy will still cover the legal costs if your company loses the lawsuit.

    Why This Is Important For Small Business Owners

    For small business owners, EPLI coverage is critical to have. Within the last five years, six out of 10 employers have had to deal with employment lawsuits. If an employee sues you for wrongful termination, you don’t have the money to protect yourself and your business like a larger corporation can. A lawsuit could incur hundreds of thousands of dollars in legal costs and attorney fees. Small to medium-sized businesses pay an average of $160,000 to resolve this kind of lawsuit.

    For a small business, that’s enough to take down your business, putting everything you’ve worked endless hours to achieve in jeopardy. If that’s not enough to get you to get this coverage, consider these five additional reasons:

    1. Employee lawsuits are growing
    2. Settlements are getting more expensive
    3. Big or small – all businesses face risks
    4. You can be fault-free; however, it will cost you
    5. Your current policy most likely doesn’t provide coverage 

    Luckily, there are ways in which you can prevent employee lawsuits from happening. It’s essential that you educate your managers and employees so that you minimize problems from the very beginning by doing the following:

    • Create effective hiring and screening programs; thus, you’re avoiding any discrimination throughout the hiring process
    • Hang corporate policies throughout the workplace
    • Ensure policies are written out in your employee handbook, making them very clear to all employees
    • Showcase what steps employees can take if they are discriminated against or sexually harassed by a supervisor 
    • Document everything while also showing the steps your business is taking to prevent and solve employee disputes

    While having this type of coverage is the first step in protecting yourself from these lawsuits, you must also focus on your company culture. Your culture should exhibit a safe environment where discrimination and harassment of any kind are not tolerated.

    Not Sure Where To Begin?

    We get it. You didn’t start your business to become a lawyer and protect yourself from employee lawsuits. That’s what professional employer organizations (PEOs) are here to help with. When you partner with a PEO like GMS, you gain access to HR experts that are trained to help business owners during these challenging times. While GMS offers EPLI as a line of coverage, we do so much more than that. To prevent these lawsuits, we take proactive measures. We help create handbooks stating all corporate policies and steps in which you and your employees should take in any situation. In addition, our HR experts work hand in hand with you and your business to mitigate employment risks and address any discrepancies. GMS takes on all the administrative burdens you don’t have the time or expertise to manage effectively. Contact us today to learn more.

  • Unfortunately, diabetes is increasing across the U.S. at an alarming rate. According to the Diabetes Research Institute, 34.2 million individuals, or 10.5% of the U.S. population, have diabetes. Diabetes is a chronic (long-lasting) health condition that affects how your body turns food into energy. Your body breaks down most of the food you eat into sugar (or glucose) and releases it into your bloodstream. When your blood sugar increases, it signals your pancreas to release insulin. Insulin acts as a key to letting the blood sugar into your body’s cells for use as energy. If you have diabetes, your body doesn’t make enough insulin or can’t use it as well as it should. If there isn’t enough insulin or your cells stop responding to insulin, blood sugar builds up and stays in your bloodstream. Over time, this build-up can cause serious health problems, such as heart disease, vision loss, and kidney disease.

    Alongside diabetes, hypertension, or high blood pressure, is a common disease among employees. Nearly half of the adults in the U.S. (47%, or 116 million) have hypertension. Hypertension is when your blood pressure, the force of blood flowing through your blood vessels, is consistently too high. The main way that high blood pressure causes harm is by increasing the workload of the heart and blood vessels, making them work harder and less efficiently. Over time, this force and friction of high blood pressure damage the delicate tissues inside the arteries.

    Your Responsibility As A Business Owner

    Chances are high that you have employees with diabetes. As a business owner, it’s your job to ensure your employees feel safe and comfortable in their work environment and, ultimately, outside of work. For employees that have health conditions such as diabetes, it’s even more important to ensure they have everything they need should an emergency take place. You must create a supportive culture for your employees with diabetes and create health benefits that include a more personalized approach to their care. Giving your employees access to affordable care and tools is essential to attract and retain the talent you need. The following are practices you can take to create a safe environment for employees who have diabetes:

    • Create a private or dedicated space for blood glucose monitoring or insulin delivery 
    • Have on-site educational programs that promote awareness of diabetes 
    • Offer workday flexibility for employees that need to make in-person or virtual health appointments
    • Promote a healthy workplace by encouraging and supporting health-related activities throughout the day (taking walks, adding a workout area in your building, offering gym membership reimbursement, and more)
    • Offer healthy and diabetic-friendly snacks and meals

    When you help your employees who suffer from this disease, it can ultimately help save your company money in health care costs, increase productivity, and reduce absenteeism. Providing your employees with the resources they need to achieve their wellness goals can, in turn, improve your bottom line.

    Diabetic Management With GMS

    At GMS, we understand how challenging it can be to wear multiple hats simultaneously. However, when it comes to your biggest asset, your employees, it’s essential that you do everything you can to make them happy and create a healthy environment. When it comes to employees with a disease such as diabetes, you may have to reconsider what you’re currently doing and determine how you can improve your efforts to support these specific individuals better. When you partner with GMS, you gain access to our diabetic management program as part of our premier employee benefits administration. We help employers and their employees transform their health, change lives, and create new opportunities for everyone through diabetic management with OneDrop. The artificial intelligence-powered program associated with diabetic management adapts to every participant’s specific conditions, including:

    • Diabetes
    • Prediabetes
    • High Cholesterol 
    • High Blood Pressure 

    Through OneDrop, it supports individuals on their journey to better health by providing diabetes testing supplies and blood pressure monitors. When you offer a diabetic management program to your employees, you’re providing them with the tools to, ultimately, transform their lives. They’ll have access to living healthier lives and regain their time and power. The program provides online health data tracking, health coaching, and other resources to access from anywhere.

    “Diabetes is one of the most expensive conditions for employees and their family members, directly impacting employers and productivity. The indirect cost equals $3.3 billion in absenteeism from the workplace, with an average of $26.9 billion annually. Furthermore, living with chronic conditions predisposes people to a greater risk of cardiovascular disease. Multi-condition programs such as OneDrop help make the connection between chronic conditions rather than treating each as a competing health narrative,” expressed Beth Kohmann, Vice President of Benefits at GMS. 

    Reimagine possible and contact us today to get started.

  • Trying to balance raising a family, especially young children, and working a full-time job is quite challenging, especially amidst the COVID-19 pandemic. As schools were shut down and children had to learn remotely, parents had to figure out how to teach their children while working their full-time jobs. In addition, if parents couldn’t work remotely during the very beginning of the pandemic due to their occupation, trying to find a quality, affordable childcare added a whole new layer of stress. However, don’t forget that daycare centers and other childcare resources had to shut down for an extensive amount of time or reduce their hours, making it even more challenging for parents.

    In response to these unprecedented times, parents had to leave or at least consider leaving the workforce as they struggled to meet their employer’s work-from-home demands while helping their children through school. As a business owner who may face the same challenges as your employees, what can you do to help them and their families?

    Consider Offering Childcare Benefits

    From a survey that was conducted by 2,500 working parents, it was found that 20% of the working parents had to leave their job or reduce hours simply because of the lack of childcare. So, while business owners still face challenges attracting and retaining employees, adding childcare benefits could be your best solution. While you might not be able to add a daycare center within your business, there are plenty of other steps you could take to try and help your employees that have families, including the following:

    • Create support structures for women at work
    • Offer flexible work schedules and remote work for all parents
    • Increase childcare support as an employee benefit
    • Provide on-site or local childcare space and supervision
    • Be understanding
    • Provide what they need to succeed
    • Figure out their availability for meetings
    • Encourage transparency and communication

    Studies show that 64% of employees suffer from stress relating to balancing work and family commitments. If you recognize their feelings of stress and anxiety and take steps similar to the above, you can ultimately reduce the stress levels and prevent your employees from burning out or, worse, developing further mental or physical health issues. Reducing the feeling of stress amongst your employees will create a more positive work environment and more productive employees.

    Additional Steps You Can Take

    At the end of the day, offering childcare services within your business or providing employees with additional income to pay for these services probably isn’t within your budget. Alongside the list of steps you can take to make your employees feel heard and valued, you can partner with Group Management Services (GMS). GMS partners with business owners to make their jobs simpler, safer, and stronger. While we can’t build a child daycare center in the basement of your business, we can help by creating a benefits package that reflects these enhancements. We work with you to develop a plan so your employees can have the work-life balance they need to juggle the constant battle of their kids and careers. Whether it’s adding more paid time off days or providing them with resources to support their need, we’ve got you covered. Your employees are your biggest asset. The last thing you want is for them to leave your company because they don’t have the flexibility they need. Contact us today to learn how we can help you thrive and stand out during these challenging times.

  • We’ve heard it all. From quiet quitting to quiet firing and now, quiet hiring, there are plenty of new buzzwords that business owners should familiarize themselves with. Let’s start with understanding what quiet hiring is. Quiet hiring is the idea that a business can add new skills and fill gaps without hiring full-time employees.

    This can come in two different forms, which include: 

    • Internal
    • External

    Internal quiet hiring means current employees might temporarily move to another role or take on different organizational assignments. External quiet hiring means hiring short-term contractors to keep the business running without taking on more full-time employees.

    Is Quiet Hiring Right For Your Business?

    While the concept of quiet hiring has been around for some time, it’s becoming increasingly popular. Quiet hiring could be the right solution for employers to ensure workplace efficiency without causing financial strain. The following are potential benefits of implementing quiet hiring within your business:

    • Gives employees a reason to care more about their job
    • An excellent opportunity for workers’ professional development
    • Makes companies more agile and ready to take on change
    • Companies can save resources by not spending money on training and onboarding new staff

    In addition, quiet hiring impacts the job market by cutting down on job eliminations. Instead of letting an employee go because their job is no longer cost-effective, the company retrains and moves them elsewhere.

    While quiet quitting can provide internal opportunities, there is a potential risk that this process could be utilized to give more work to a single employee instead of filling roles that are actually needed. Giving employees more work leads to burnout. When employees experience burnout, they’re more likely to have lower morale (36% of individuals), be less engaged (30%), make more mistakes (27%), and miscommunicate (25%). It’s a never-ending cycle that could end up hurting your business in the long run.

    Allow GMS To Help With Your Decision

    Should you choose to implement quiet hiring within your business, it’s essential that you relay the message in a way that makes your employees feel valued. You don’t want them to think that they’re interchangeable or not good enough for the job, but rather you just want them in a position where they can have the biggest impact on your business. In addition, compensation must be considered. If you’re asking employees to take on more responsibilities, you must compensate them for that. Group Management Services works with business owners to provide them with HR outsourcing services such as benefits, payroll, human resources, and risk management. Whether you want to start by implementing a career development program or leadership program where you train employees to take on more responsibilities in a scenario such as quiet hiring, we’ve got you covered. If you need to ensure you’re compensating your employees the correct amount, we do a job market analysis to compare the salary to similar positions elsewhere. We take all the burdensome administrative tasks off your shoulders.

    Joe Wenger, PHR, GMS’ Senior HR Generalist, explained, “With Gen Z entering the workforce, it’s more important than ever for companies to develop programs that offer growth and promotion opportunities. Career advancement is one of the top priorities listed among the majority of this incoming generation. Internally at GMS, we’ve been ahead of the curve by implementing a Leadership Development Program for top-performing frontline employees, aiming to groom them as the future of our management team.”

    Contact us today to learn more.

  • As Covid-19 becomes less prevalent across the country, states and localities are backing off employers’ requirements to provide their employees with paid leave if they have COVID-19 or symptoms. While not all employers were required to provide paid leave to their employees for having COVID-19 in the very beginning, the Families First Coronavirus Response Act (FFCRA) set rules in place. The FFCRA required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

    As deaths and hospitalizations are declining significantly, the rules and regulations have also dropped. Five states and Washington, D.C., were locations that had laws in place but have expired and are no longer effective. However, Arizona, Colorado, and New Jersey are the only states that still require paid leave for COVID-19. In addition, the following still require employers to provide paid time off for employees to get themselves or their children vaccinated for COVID-19:

    • Nevada
    • New York
    • Washington, D.C.

    In addition, cities in California, such as San Francisco and Los Angeles, have mandates in place but will expire by the end of February.

    What Employers Should Know

    As we’re approaching the third year of COVID-19, it’s essential that you stay aware of changing laws and regulations. Although COVID-19 hasn’t been much of a concern these days, you must ensure you have rules in place regarding the safety of your employees. The goal of the COVID-19 leave requirements was to ensure your employees felt safe, and if they felt sick, they shouldn’t risk coming to work and exposing themselves to others. While state laws are backing off mandates for paid sick leave, business owners can certainly have their own rules in place. If you want to add extra sick days designated for COVID-19, you can do that. In fact, 25% of employers modified their paid sick leave or time off plans to accommodate the pandemic.

    Despite the spikes and declines of COVID-19, this is the time for you to remain on top of ever-changing laws and regulations during these unprecedented times. If you’re in one of the states previously mentioned, it’s vital that you understand the laws and what you’re required to do as an employer. In addition, consider how the rules interact with FMLA leave, state and local paid-sick-leave laws, and other time-off benefits.

    GMS Is Here To Save The Day

    We’ve all been working together trying to combat these unprecedented times. At GMS, we understand the effects COVID-19 has on businesses, especially small businesses. We’ve partnered with over 2,000 clients and work with them daily to ensure they are on top of all of the changing laws and regulations. When the pandemic hit hard in 2020, we worked with our clients to ensure they had a workplace policy to ensure their employees’ safety. Three years later, we can still help in those efforts. Whether it’s working with small business owners to create an employee handbook that explicitly states what happens when you test positive for COVID-19 or our benefits experts working with you to enhance your benefits offerings, we do it all. Allow GMS to take the administrative burdens off your shoulders. Contact us today to get started!

  • As you may expect, conflict in the workplace can be a severe issue for a small business. Unresolved conflicts among workers can create a challenging working environment for those involved and those witnessing the dispute. These issues also have a direct impact on the financial well-being of your business. However, certain types of conflict can facilitate growth. It allows us to explore new perspectives and understand different points of view. Of course, resolving the issue quickly is essential so productivity can continue uninterrupted.

    According to a report published by the University of New Mexico, the collective cost of unresolved conflicts can be as high as $300 billion annually for businesses across the country. Other analyses peg the figure at approximately $359 billion in lost revenue.

    Without a way to resolve contentious relationships, you’re inadvertently increasing the risk of developing a dysfunctional workforce that hurts your business in the long run. It’s time to break down the root causes of employee conflicts and how your business can resolve them.

    What Causes Workplace Conflicts?

    Conflict in the workplace can originate from any number of sources. It could be something as simple as a department manager being rude to a new hire or an employee who feels like they’re not treated fairly by their colleagues. At its worst, the root of the conflict can be something such as blatant harassment or inappropriate, lewd behavior.

    Hot-button topics are also notorious for creating unnecessary conflicts at work. The crux of the problem could be anything from political opinions to which sports franchise has more clout. The trick is to have a strategic conflict resolution plan to solve the problem.

    Conflict in the workplace is inevitable, and it can have a serious impact on your business. Here are some of the most common causes of conflict in the workplace:

    • Conflicting goals or expectations that aren’t communicated clearly
    • Lack of communication between employees
    • Poor management skills or leadership style
    • Distrust between employees
    • Mistakes made by individual members of a team

    Five Steps To Resolving Workplace Conflicts

    First, knowing what kind of conflict you’re dealing with is important. There are many different types of conflict that can happen at work or in any other situation where people interact regularly. Some conflicts may be a mere misunderstanding, while others can result in a culture of bullying and harassment. Neither should be taken lightly, but it’s safe to say the latter should be met with a swift response.

    It’s important to have a plan that helps you handle conflict and help everyone work towards a common goal – growing the company and furthering its success. Use the following steps to address conflicts before it’s too late.

    1. Meet with the conflicting parties

      Defining the root cause of the conflict is the first, and arguably most difficult, step. It’s critical to discover how the issue got to this point in the first place. Meeting with the conflicting parties can help you get both sides of the story and identify if the problem is easy to address or will require a more detailed response.

      These meetings should happen in a private, neutral setting. Both parties need to have their voices heard so that each of them acknowledges the other’s perspective. You’ll also want to play the role of an active listener. Ensure both parties know you’re paying attention and obtain as much information as possible to help them come to a reasonable solution.

    2. Investigate the conflict following the meeting

      Following the meeting, it’s always wise to investigate the integrity and the validity of each party’s explanation of how the conflict started in the first place. Often, you’ll discover that the root of the problem is nothing more than a usual misunderstanding between two dedicated, passionate, and career-minded professionals.

    3. Determine ways to truly resolve the conflict and meet a common goal for all parties

      The next step involves a fair amount of creativity on your part. You have to think outside of the box and brainstorm ways to manage and ultimately resolve the issue once and for all.

      This process may require additional communication, investigation, and planning. Don’t be afraid to sit down with both individuals again to openly discuss ways to manage and resolve the conflict. Use this brainstorming session to come up with ideas to de-escalate the situation and come to a conclusion that benefits everyone.

    4. Develop a conclusion

      Once you gather all the information, you can finally decide on the extent of the issue, how the conflict began, how it escalated, and what everyone can do today to put the negativity to rest finally.

      The idea is to lay out a clear plan of action to find common ground and focus on the task at hand: working towards the same goal and furthering the company’s success as an efficient team of skilled professionals. Once this plan is in place, communicate it with the individuals so that they can put an end to the ordeal.

    5. Decide on preventative strategies for the future

      The last step is ensuring this particular conflict doesn’t happen again. Evaluate the situation to see if this conflict can rear its ugly head again. If so, create an action plan to not only avoid conflicts but also quickly address them in the future if they do occur.

    Tips For Approaching Workplace Conflict

    Conflicts in the workplace are inevitable. It’s just a matter of when, where, and how they will occur. Here are some tips to help you manage conflict resolution in the workplace:

    • Understand where the conflict came from: Is it between you and another employee? With your manager? Or did it come from a customer or client? The key is knowing who is involved in having an effective resolution process.
    • Figure out what kind of conflict it is: Are you dealing with a disagreement over ideas or resources? This can help determine how best to resolve the issue at hand.
    • Find out if there are any other issues at stake here: This might include financial issues or personal concerns that need to be addressed as part of solving this problem together and any other factors that may affect its outcome, such as company policy.
    • Develop a conflict resolution plan: If you don’t already have a system in place to resolve conflicts, now is the time to develop one. That plan should detail who should be included (HR, managers…etc.) in the resolution process and the steps you’ll take based on the severity of the conflict.
    • Look for common ground: You don’t want to get caught up in small details when resolving your issue because it can lead to even more problems later. If not addressed effectively, things could escalate further!
    • Don’t make assumptions: When emotions are running high, it’s easy for things to get out of hand quickly—and before you know it, someone has said something regrettable. Don’t make assumptions when it comes to conflict.
    • Hear out all parties involved: Nothing ignites a conflict more than feeling like you’re not heard. Regardless of who may be at fault, listen to all parties with compassion and understanding.
    • Work together: Brainstorm solutions and ways to avoid conflicts like this in the future. This will help create a positive environment for discussion and help prevent things from escalating too quickly into an argument.

    Six Ways Small Businesses Can Minimize Conflict

    While some conflict is inevitable, there are ways to minimize the likelihood of workplace disputes. There are a variety of strategies small businesses can utilize to protect themselves and their employees from these issues.

    Establish written rules and clearly defined company policies

    A good policy will make the conflict resolution process smoother when issues arise. Use your employee handbook to lay out clear guidelines about employee conduct and expectations for individuals within your company. These ground rules will help set the tone for what is and isn’t acceptable and clearly describe the consequences and next steps for misbehavior.

    Hire the right people

    The right employees will be less likely to create conflict. It’s important to not only hire people with the right skills but also a good temperament for your business. You can also conduct background checks to try and identify any red flags that may cause problems in the future. Spend some time to properly vet each prospective employee to minimize the chances of conflict in the future.

    Provide management training

    Another way to minimize the impacts of conflict is better management training. You can’t be everywhere at once throughout the day, so you entrust your management team to be your eyes and ears. Training managers and other appropriate personnel on established policies and identifying brewing conflicts can help your business quell minor issues before they grow into severe problems.

    Create a fair grievance process

    Poor communication is a problem. A fair grievance process is an effective problem-solving tool that allows employees to feel heard and managers to identify the source of conflict before it becomes a bigger issue.

    No matter what policies you put in place, the process needs to be transparent and equitable. The same standards should apply to management and workers. This process will keep everyone accountable to each other and quickly soothe exasperated employees.

    Feedback

    Feedback is what brings the resolution process back to the beginning. You may spend a tremendous amount of time making written procedures and policies – and for good reason – but there’s still plenty to overlook.

    Give employees a way to provide feedback so that they share ideas on how to make the workplace a better place, whether that’s an anonymous tip line or a company email address. This feedback loop can help you fine-tune your policies for your workforce and, hopefully, put petty fights and arguments to rest.

    Protect Your Business From Conflict

    Workplace tension is a recipe for lost productivity and heated arguments. However, it’s not always easy to put conflict resolution strategies into place by yourself. GMS has the human resource experts to provide you with the tools and support you need to manage employee relationships.

    Ready to make your business simpler, safer, and stronger? Contact GMS today about how we can support your business through dedicated service and support.