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  • The U.S. Department of Labor (DOL) has announced a proposed rule to phase out the distribution of certificates that allow employers to pay certain workers with disabilities less than the federal minimum wage of $7.25 per hour. The rule proposes to gradually eliminate certificates that employers can apply for under Section 14(c) of the Fair Labor Standards Act (FLSA), which allows them to pay subminimum wages to certain workers with disabilities. For nearly a century, it has been legal in the U.S. to pay some individuals with disabilities below the minimum wage. Currently, about 40,000 American workers fall into this category, with some earning as little as 5 cents an hour. 

    Key Details Of The Proposal 

    • Phase-out timeline: If adopted, new 14(c) certifications will no longer be issued. Existing programs will be phased out over three years starting from the final rule’s effective date. 
    • Legal and political challenges: The proposal must navigate public commentary, possible legal hurdles, and political opposition before becoming finalized. 
    • Economic and workplace impacts: Employers and advocacy groups have debated the implications, with some fearing fewer opportunities for workers with disabilities and others emphasizing the need for equity in the workplace. 

    What’s Next? 

    The DOL is currently seeking public feedback on the proposal. Employers should monitor these developments closely to prepare for potential regulatory changes. If finalized, businesses employing workers under 14(c) must reevaluate their wage practices and compliance strategies. 

    How GMS Can Help 

    Navigating evolving employment regulations can be challenging. Group Management Services (GMS) specializes in helping businesses stay compliant with labor laws, including wage and hour rules. From workforce management to payroll processing and compliance guidance, GMS provides the expertise and tools you need to adapt to regulatory changes while supporting your employees. Contact us today to learn how we can help your business stay compliant. 

  • Human resources (HR) crises can strike at any time, from natural disasters and public health emergencies to workplace disputes and regulatory violations. The consequences of being unprepared can be severe, impacting employee well-being, company reputation, and financial stability. Therefore, both employers and employees benefit significantly when organizations prioritize HR crisis readiness. 

    Why Crisis Readiness Matters For Employers 

    For employers, HR crisis preparedness is about safeguarding the business and ensuring compliance with relevant laws. Key federal regulations such as the Occupational Safety and Health Administration (OSHA) require organizations to maintain safe workplaces, and violations during emergencies can lead to legal repercussions. Similarly, laws such as the Family and Medical Leave Act (FMLA) might require adjustments during crises, emphasizing the need for clear policies and procedures. 

    Beyond compliance, having a robust crisis management plan ensures that business operations can continue with minimal disruption. Effective planning reduces the risk of lost revenue, reputational damage, and long-term fallout from poorly managed incidents. Research also shows that proactive crisis response can strengthen organizational resilience, demonstrating leadership and accountability when it matters most. 

    Why Crisis Readiness Matters For Employees 

    For employees, HR crisis readiness translates into confidence that their employer prioritizes their safety, health, and job security. Clear communication during crises, such as explaining emergency protocols or providing updates on company responses, fosters trust and reduces workplace anxiety. When employees feel supported, their morale and productivity are less likely to suffer, even under challenging circumstances. 

    Employees are also protected by various state and federal regulations during crises. For instance, workers impacted by emergencies may be entitled to leave under the FMLA or state-specific sick leave laws. Employers must be vigilant about these rights to avoid legal pitfalls and ensure fair treatment. 

    Building A Crisis-Ready Organization 

    An effective crisis response begins long before an emergency arises. Organizations must proactively build frameworks that anticipate potential risks and address vulnerabilities. Here’s how to create a resilient, crisis-ready workplace: 

    Proactively preparing your organization for challenges 

    Crisis management starts with thorough preparation. Begin by identifying potential threats, whether natural disasters, cybersecurity breaches, or public relations issues. A crisis management plan and a business continuity plan are crucial tools for mapping out response strategies. Training employees in their roles during emergencies can significantly enhance response efficiency and reduce confusion during critical moments. Regularly updating these plans ensures they stay aligned with emerging risks and regulatory changes. 

    Investing in employee training and resources 

    HR departments play a pivotal role in ensuring all team members are well-equipped to handle crises. From cross-training employees for flexibility to providing leadership development focused on crisis scenarios, education is essential for preparedness. Additionally, implementing tools like human resource information systems (HRIS) can help track employee skills, making it easier to mobilize resources effectively during a crisis. 

    Establishing clear communication channels 

    Communication breakdowns can amplify a crisis. Organizations should establish systems to disseminate timely, accurate, and consistent updates. According to experts, having well-defined communication protocols reduces uncertainty and helps maintain trust with employees and stakeholders. 

    Building a culture of agility and adaptability 

    The best crisis management strategies acknowledge the unpredictable nature of emergencies. Organizations that cultivate a culture of flexibility, empowering employees to make decisions and swiftly adapt plans, can navigate crises more effectively. Regular simulations and post-crisis evaluations further enhance organizational agility. 

    Leveraging technology and data 

    Making decisions based on data is crucial during a crisis. Use predictive analytics to spot early warning signs and manage risks. For instance, monitoring employee absenteeism trends can highlight potential issues that need quick action. Incorporating technology into your crisis management plan can simplify processes and enhance response times. 

    Legal considerations 

    Employers must remain vigilant about legal obligations during crises. Labor laws, health and safety regulations, and emergency leave policies must all be adhered to. Staying informed about local and federal compliance requirements can protect businesses from potential legal liabilities. 

    The Role Of GMS In HR Crisis Management 

    At Group Management Services (GMS), we understand the complexities of managing crises. Our HR solutions help businesses streamline administrative processes and ensure compliance. From creating custom crisis management plans to handling administrative tasks, we take on the heavy lifting so you can focus on leading your organization. With GMS as your partner, you can take back your time and maintain control over your business, knowing you have a reliable support system by your side. 

    By building a crisis-ready organization, businesses can safeguard their operations, employees, and reputations while positioning themselves for long-term success. Contact us today, and let us help you prepare for the unexpected. 

  • Workplace safety is not something that businesses can afford to cut corners on, and that isn’t a figure of speech. A single penalty from the Occupational Safety and Health Administration (OSHA) can cost your company anywhere between $16,131 and $161,323. The federal organization even hosts a website where you can see every case with initial penalties of $40,000 and higher, and the list of companies affected across all 50 states is extensive.

    Understanding what causes an OSHA inspection is crucial to helping your company avoid devastating financial setbacks. This blog marks the first in a three-part series on OSHA inspections. In this segment, we’ll explore the common events and conditions that can prompt an inspection and why being informed is the first step toward maintaining compliance.

    Why OSHA Conducts Inspections

    In 1970, the Occupational Safety and Health Act (OSH Act) of 1970 was enacted to ensure employers provide safe and healthy working conditions for their employees. Their purpose is to enforce standards and prevent recognized hazards in the workplace. Normally, OSHA demonstrates this by conducting random inspections in the search for violations. However, that’s not always the case. Many of these inspections can be triggered by specific events, conditions, or reports. By understanding these triggers, employers can identify potential risks and act before an inspector arrives.

    Key Triggers For OSHA Inspections

    1. Imminent danger situations

    Workplace hazards that pose an immediate risk of death or severe physical harm are a top priority for OSHA. Examples include unguarded machinery, chemical spills, or significant fall risks. If OSHA suspects imminent danger, either through tips or observations, an inspection may occur within 24 hours.

    1. Severe injuries or fatalities

    Under OSHA regulations, employers must report workplace fatalities within eight hours and severe injuries (hospitalizations, amputations, or eye loss) within 24 hours. These reports often trigger inspections to determine the root cause and assess compliance with safety standards.

    1. Employee complaints

    Employees can file anonymous complaints if they believe their workplace has serious safety violations. OSHA gives significant weight to these complaints, especially if they detail hazards that could result in severe injury or death.

    1. Referrals

    Referrals often originate from other government agencies, law enforcement, or even media reports. For example, Straus Feeds LLC was investigated after OSHA received reports of unsafe working conditions. After the inspection, the company was cited for 24 violations, leading to penalties totaling $161,332.

    1. Programmed inspections

    Certain industries, such as construction, manufacturing, and health care, are deemed high-risk by OSHA. These sectors often face programmed inspections due to their higher injury and illness rates.

    1. Follow-up inspections

    If your company was cited during a prior inspection, OSHA may conduct a follow-up to ensure that violations have been corrected. Failure to address citations can result in heightened scrutiny and increased penalties.

    Staying Ahead Of OSHA Inspections

    OSHA averages over 32,000 inspections a year and your business could be one of them. While OSHA inspections can’t always be avoided, understanding what causes them gives organizations the opportunity to proactively address risks. Continue reading here to learn more about the actionable steps you can take to prepare ahead of time. 

    Partnering With GMS

    Navigating OSHA compliance and inspections doesn’t have to be overwhelming. Group Management Services (GMS) offers tailored solutions to help your business stay compliant, reduce risks, and cultivate a safe culture. Whether it’s safety training, recordkeeping, or audits, our experts are here to help you safeguard your workplace and stay prepared for any OSHA visit.

    Contact GMS today to learn how we can help your organization succeed in workplace safety and compliance. 

  • The gig economy has reshaped the modern workforce, offering flexibility and freedom for workers and cost-saving adaptability for businesses. However, this new dynamic also brings challenges in legal compliance, worker classification, and benefits provisions. As the gig economy grows, companies must address these hurdles to build a competitive operation. Let’s explore these changes and what businesses can do to adapt. 

    The Rise Of The Gig Economy 

    The gig economy, often referred to as the sharing or access economy, relies on freelancers, independent contractors, and temporary workers rather than traditional full-time employees. This model appeals to businesses for its cost savings and adaptability, as well as to workers for its flexibility and autonomy. In 2023, 64 million Americans (38% of the U.S. workforce) participated in gig work, contributing $1.27 trillion to the economy. 

    While the gig economy has grown rapidly, it is shifting away from labor-based gigs such as ridesharing and delivery to skill-based roles in fields such as tech, creative services, and management. This transition highlights the importance of adapting strategies to meet the changing needs of both workers and businesses. 

    Flexibility Vs. Security 

    Gig work offers significant advantages, such as the freedom to set schedules and the ability to work remotely. However, it also leaves workers vulnerable to economic insecurity and a lack of traditional employment benefits. Employer-provided benefits are tied to long-term employment and consistent hours, criteria that many gig workers don’t meet. Therefore, although 63% of individuals prefer gig work for its flexibility, 50% would only consider gig roles if they included robust benefits such as health care and retirement plans. 

    Addressing this gap presents an opportunity. Companies that provide alternative forms of support for gig workers can stand out, attracting top talent. Examples include:  

    • Providing access to resources such as financial education. 
    • Connecting workers to third-party benefits providers. 
    • Offering competitive pay that accounts for the lack of traditional benefits.

    Legal Considerations And Compliance Risks 

    Proper classification of gig workers is critical for businesses to avoid legal pitfalls. Misclassification can lead to lawsuits, penalties, and reputational damage. In 2024, the Department of Labor implemented new criteria for distinguishing employees from independent contractors under the Fair Labor Standards Act (FLSA). Employers must carefully assess relationships with gig workers to align with these standards and provide proper documentation and worker protections. 

    By proactively addressing compliance issues, companies can demonstrate ethical practices, reduce the risk of legal repercussions, and build a strong reputation. 

    Strategies For Succeeding In The Gig Economy 

    To effectively manage gig workers and remain competitive, businesses must address the unique challenges of gig work with forward-thinking strategies. Consider the following: 

    1. Provide non-traditional support: Facilitate gig workers’ access to third-party benefits platforms, professional development opportunities, and financial planning resources. 
    2. Maintain proper worker classification: Follow Department of Labor guidelines to distinguish between employees and independent contractors. 
    3. Leverage technology: Use modern platforms to manage contracts, track compliance, and streamline payments. 
    4. Embrace global talent: Expand the company’s reach by hiring international gig workers, taking advantage of the gig economy’s globalized nature. 

    Adapting To The Future Of Work 

    The gig economy is no longer a peripheral workforce model, it can be a central aspect of modern business strategy. Companies that adapt to its unique challenges while adhering to the evolving laws and regulations will gain a competitive edge in a dynamic labor market. 

    Partnering With GMS 

    Navigating the complexities of the gig economy requires expertise in HR management and legal regulations. Group Management Services (GMS) can help businesses stay ahead by ensuring proper worker classification, providing training and documentation to maintain compliance, and managing regulatory challenges.  

    Contact GMS today to learn how we can support your organization in the progressing gig economy. 

  • Maintaining records may not be the most glamorous part of running a business, but it is undeniably one of the most important. Without an effective records management system, businesses risk costly consequences, such as non-compliance fines, operational inefficiencies, or lost time spent tracking down essential documents. As regulatory requirements evolve and compliance becomes increasingly complex, adopting modern, efficient record-keeping solutions is more critical than ever. 

    The Regulatory Landscape 

    Businesses today face a patchwork of record-keeping requirements at the federal, state, and local levels. Here’s a quick overview of just how much employers need to juggle: 

    • Fair Labor Standards Act (FLSA) violations remain a significant source of fines. In FY2023, the U.S. Department of Labor recovered $274 million in back wages, with compliance efforts intensifying into 2025. 
    • IRS penalties for late payroll tax deposits can reach 10% of unpaid taxes if overdue by more than 15 days. Misclassification of workers as independent contractors are also a growing compliance issue, potentially leading to significant fines. 
    • OSHA mandates the retention of certain medical and safety-related records. Employers must keep records of work-related injuries and illnesses for at least five years following the end of the calendar year that the records cover. 
    • IRS guidelines call for tax records to be preserved for a minimum of seven years, depending on the document type. 

    Recordkeeping errors and omissions pose an additional challenge, especially with the Department of Labor and IRS implementing stricter audit protocols. Companies face fines or even litigation for noncompliance with federal and state regulations. Failing to meet these standards can result in hefty penalties, lawsuits, or even reputational damage. For example, in 2023, multiple businesses were fined tens of thousands of dollars for incomplete or missing employee records during routine Department of Labor audits. 

    Employers are increasingly turning to comprehensive HR and payroll software to streamline compliance. Such tools help businesses stay updated on state-specific regulations, automate records retention, and ensure timely reporting during audits.  

    Why Records Management Matters 

    Improved compliance and risk reduction 

    Inadequate record-keeping leaves employers vulnerable to regulatory audits and legal disputes. Proper systems ensure businesses have the right documentation readily available to demonstrate compliance with laws like the FLSA, the Affordable Care Act, and tax regulations. 

    Operational efficiency 

    According to Gartner, on average, four weeks are lost each year, waiting on misfiled, mislabeled, untracked, or lost documents. That’s time businesses can’t afford to waste, especially in small and midsize companies where resources are limited. Digital systems streamline retrieval, reduce filing errors, and automate data organization. 

    Data security 

    Safeguarding sensitive employee and financial information is non-negotiable in 2025. With the rise in cybersecurity threats, digital records management platforms with encryption and secure access protocols offer peace of mind and ensure that sensitive data doesn’t fall into the wrong hands. 

    The Shift To Digitization 

    Recognizing the inefficiencies of paper-based systems, organizations are moving towards digitization. The federal government has already embraced this transformation, with agencies like the National Archives and Records Administration (NARA) transitioning to fully electronic records management. For businesses, digitization means: 

    • Automation of record retention and disposal: Tools that automatically schedule records for deletion after their retention period reduce clutter and ensure compliance with laws requiring timely disposal. 
    • Centralized data management: Instead of searching through scattered filing cabinets or fragmented software systems, digital platforms allow businesses to consolidate records in one secure, accessible location. 
    • Cost savings: While transitioning to a digital system may involve upfront costs, businesses save significantly in the long run through reduced storage, retrieval, and administrative expenses. 

    Why This Matters For Employees 

    Employees also benefit from proper records management. Accurate payroll records ensure timely and accurate paychecks. Access to well-maintained personnel files can help resolve disputes, verify employment for loans or housing, and provide clear records of benefits and leave balances. Efficient systems create a smoother, more transparent workplace for everyone. 

    How GMS Can Help 

    At Group Management Services (GMS), we understand how challenging it is to navigate the complexities of record-keeping. Our technology simplifies record management by consolidating all your data into one secure platform. Our systems keep you updated on state and federal compliance requirements, automate document retention schedules, and make accessing critical records effortless. 

    With GMS, you’ll save time, reduce risk, and protect your bottom line—so you can focus on growing your business instead of worrying about audits or misplaced files. Contact us today to learn how our solutions can transform your records management strategy. 

  • Corporate culture isn’t just a company’s personality; it shapes the way employees connect with their work, collaborate with each other, and align with organizational goals. Companies that deliberately grow a positive, inclusive culture experience heightened engagement, lower turnover, and increased productivity. 

    Culture, similar to a product, is something you build and refine. While companies create products to meet customer needs, the workplace culture is the “product” designed for employees. It’s essential that both are treated with the same care and investment for a business to grow successfully.  

    Let’s explore what you need to build a healthy culture for your business. 

    The Role Of Corporate Culture In Employee Engagement 

    Research shows that companies with a positive culture report a 72% higher employee engagement rate compared to those with a negative or dysfunctional culture. 

    Employee engagement, defined as the emotional commitment employees have toward their organization, is closely tied to a company’s workplace environment. A culture prioritizing psychological safety, accountability, and recognition creates an ecosystem where employees feel valued and motivated to contribute their best work. Engaged employees are not only more productive but also more likely to stay with their organization, reducing turnover costs and preserving institutional knowledge.  

    Productivity Rooted In Purpose 

    An intentional culture acts as a performance catalyst. Companies that align their cultural values with business objectives empower employees to perform with purpose. Clear communication of mission and values not only boosts morale but also strengthens organizational cohesion. Research consistently shows that positive workplace environments improve both productivity and emotional wellbeing. 

    Being A Cultural Architect 

    “Invest in your culture, and your people will invest in your vision.”

    – Lisa Dassani, VP of Human Resources, Group Management Services

    Leadership plays a pivotal role in shaping and sustaining corporate culture. Company leaders set the tone for their teams. Employees look to them not just for direction, but for cultural cues. It’s imperative to demonstrate transparency, integrity, and understanding when interacting with your team. Some ways for leaders to reinforce culture include: 

    • Share company updates and achievements regularly to keep employees informed and motivated. 
    • Create an open-door policy to encourage honest feedback and innovative ideas. 
    • Host team-building activities to strengthen trust and collaboration among employees. 
    • Use performance reviews as an opportunity to align individual goals with organizational values. 

    Strategies To Cultivate A Positive Corporate Culture 

    1. Define clear vision and values: Clearly articulate your company’s mission, vision, and values, and make them a part of daily operations. 
    2. Lead by example: Embody and reinforce cultural values through actions, not just words. 
    3. Endorse open communication: Encourage feedback so employees feel heard and valued. 
    4. Recognize your employees: Regularly acknowledge and reward employees’ contributions to reinforce positive behaviors and achievements. 
    5. Invest in professional development: Offer opportunities for continuous learning and career advancement to keep employees engaged. 
    6. Promote work-life balance: Implement policies that support employees’ personal lives, such as flexible working hours and wellness programs. 
    7. Support autonomy: Give employees the freedom to take ownership of their roles while maintaining accountability. 

    Partner With GMS To Strengthen Your Culture 

    Navigating the complexities of building a strong corporate culture can be daunting, especially for growing organizations. That’s where Group Management Services (GMS) steps in. GMS specializes in offering solutions like HR audits, professional development programs, and leadership training to help businesses refine their culture. By partnering with GMS, companies gain access to tools and strategies that support a healthy workplace, paving the way for employee satisfaction and business growth. Contact us today and let’s support your journey toward building an engaged and high-performing workforce environment. 

  • As the year ends, businesses should prioritize updating their paid time off (PTO) policies and employee handbooks to prepare for a compliant and productive 2025. These updates not only ensure adherence to current laws but also reinforce a positive work culture, keeping employees engaged and satisfied. Leveraging advanced technology, such as a human resource information system (HRIS), can simplify this process and streamline human resources (HR) management. 

    Why Review PTO Policies? 

    PTO policies are foundational to supporting employee well-being and ensuring workplace productivity. A thoughtful approach to PTO includes: 

    • Clear definitions: Clearly state how much time off employees can take. Specify leave types (e.g., sick leave, vacation, and parental leave) to prevent misunderstandings.  
    • Compliance with laws: Stay updated on regulations like the Pregnancy Workers Fairness Act and state-mandated paid family leave to avoid legal risks. 
    • Outline usage rules: Explain when employees can take time off, any restrictions during peak periods, and how unused PTO is handled (e.g., rollovers or forfeitures). 
    • Specify request procedures: Establish how much advance notice is required, the steps for submitting a request, and how approvals are granted.  
    • Consider incentives for peak times: For industries like retail, where staffing is critical during holidays, consider offering extra pay for those willing to work during high-demand periods.  
    • Employee empowerment: Flexible PTO structures, such as carryover options or mental health days, show that your organization values work-life balance. 

    Set clear expectations and communicate your PTO policy effectively, especially in your employee handbook and during onboarding. This approach creates a supportive environment that values both operational efficiency and employee well-being. 

    To further enhance this process, consider using tools like an HRIS. These systems allow businesses to efficiently manage PTO tracking, accruals, and requests in one centralized system. This technology provides real-time insights into employee time off, making it easier to balance staffing needs and employee satisfaction. 

    Why Update The Employee Handbook? 

    The employee handbook is a vital resource for communicating company policies and expectations. Keeping it current offers several advantages: 

    • Legal compliance: Federal and state laws on wage transparency, remote work policies, and workplace harassment may require updates. 
    • Adaptation to workplace changes: Include policies for hybrid work arrangements, technology use, and other post-pandemic adjustments. 
    • Employee clarity: Updated handbooks prevent confusion, ensuring employees understand PTO guidelines and other workplace rules. 

    Integrating HR technology solutions ensures that these updates are seamless. For instance, employee handbooks stored within an HRIS are easy to update, share, and distribute, ensuring all staff members have access to the latest policies. 

    Preparing For 2025 And Beyond 

    As you finalize updates for 2025, think beyond compliance to create policies that reflect your company’s culture and goals. Encourage employees to use their PTO by fostering a supportive time-off culture and aligning your handbook updates with your long-term HR and operational strategies. 

    How GMS Can Help 

    Group Management Services (GMS) offers comprehensive HR management and timekeeping solutions that take the hassle out of year-end handbook updates. Through GMS Connect, you gain access to advanced tools for PTO tracking, compliance monitoring, and so much more. These features help you stay organized while building a workplace where employees feel valued and empowered. 

    By partnering with GMS, you’ll have HR experts on your side to create a well-structured time-off management system that supports your business goals. Contact us today to learn how GMS can help you enter 2025 with confidence.

  • On November 15, 2024, the U.S. District Court for the Eastern District of Texas issued a ruling that vacated the Department of Labor’s (DOL) recent changes to overtime salary thresholds. This decision, effective nationwide, has significant implications for employers navigating wage and hour compliance under the Fair Labor Standards Act (FLSA). 

    The overturned rule, finalized on April 23, 2024, proposed the following changes to the salary threshold for exempt employees (those not entitled to overtime pay): 

    • Raising the salary threshold from $684 per week ($35,568 annually) to $844 per week ($43,888 annually), effective July 1, 2024. 
    • Further increasing the threshold to $1,128 per week ($58,656 annually), scheduled for January 1, 2025. 

    However, with the court’s recent decision, employers no longer need to implement these increases. 

    Key Points From The Court’s Decision 

    The court’s ruling centers on the DOL’s authority to set salary thresholds for overtime exemptions. While the FLSA allows the DOL to define and delimit exemptions for bona fide executive, administrative, and professional (EAP) employees, the court found that the 2024 rule overstepped this authority. Specifically, the rule’s high salary thresholds were seen as overshadowing the duties-based test required to determine exemption status. 

    In a related case earlier in 2024, the Fifth Circuit Court of Appeals emphasized that while salary can serve as an objective measure for exemption, it must not replace the primary consideration of job duties. The District Court echoed this sentiment, concluding that the 2024 rule’s salary increases effectively nullified the duties-based exemption criteria. 

    What’s Next? 

    The DOL may appeal the decision but given the court’s reasoning and the upcoming change in presidential administration, the likelihood of the rule’s revival appears slim. For now, the pre-2024 thresholds remain in place: 

    • A salary threshold of $684 per week ($35,568 annually) for exempt EAP employees. 
    • A highly compensated employee (HCE) threshold of $107,432 annually. 

    Staying updated on these developments as the situation evolves is critical for employers to ensure compliance and minimize disruptions. 

    Navigating Compliance Amid Uncertainty 

    The court’s ruling highlights the ongoing challenges businesses face in maintaining compliance with labor laws. Wage and hour regulations frequently change, making it essential for employers to stay informed and prepared. 

    At Group Management Services (GMS), we understand the complexities of workforce management. Our team of HR experts work closely with businesses to navigate regulatory changes, ensuring compliance and reducing administrative burdens. From policy updates to payroll management, we offer comprehensive solutions tailored to your needs. Contact us today to learn how we can help your business thrive. 

  • In today’s competitive job market, employee benefits are more critical than ever. As we look ahead to 2025, the demand for comprehensive, flexible, and tailored benefits packages is only expected to grow. Small businesses, in particular, may feel challenged to keep up with larger companies that have greater resources to devote to benefits. But with strategic planning, even smaller organizations can offer in-demand benefits that can attract and retain top talent.

    Health Care Benefits That Go Beyond The Basics

    Health care remains a top priority for employees, with benefits such as medical, dental, and vision coverage being nearly universal expectations. But in 2025, employees are looking for more than just basic health plans. Telemedicine, mental health resources, and wellness programs are becoming increasingly popular.

    • Telemedicine and virtual health care: Employees value the convenience and flexibility of telemedicine, especially for routine check-ups and non-emergency consultations. Small businesses can offer access to telemedicine services, which are typically affordable and easy to add to existing plans.
    • Mental health support: Mental wellness is now recognized as a vital piece of overall employee health. Offering access to counseling, mental health apps, or employee assistance programs (EAPs) demonstrates a commitment to employee well-being.
    • Wellness programs: Programs that encourage healthy living appeal to employees who want to prioritize their health. These benefits can include gym memberships, wellness coaching, and more.

    Competitive Retirement Plans To Secure Employees’ Futures

    With the Internal Revenue Service (IRS) increasing retirement plan contribution limits in 2025, employees should be more aware now than ever of the importance of securing their financial future. A well-structured retirement plan can be a powerful tool in attracting talent. Employers should consider offering incentives such as:

    • 401(k) matching contributions: Offering a company match on 401(k) contributions is an attractive benefit for employees, providing immediate financial value. Even a modest match such as 3% can help retain employees and show commitment to their long-term financial well-being.
    • Automatic enrollment and Roth 401(k) options: Automatic enrollment helps increase participation rates and simplifies the process for employees. As part of the SECURE 2.0 Act, all newly established 401(k) plans will automatically enroll eligible employees unless they opt-out. Roth 401(k) options, which offer tax-free withdrawals in retirement, are also popular among employees looking for tax-advantaged retirement strategies.

    Flexible Work Options For A Better Work-Life Balance

    The demand for flexible work options has only intensified post-pandemic, with many employees now expecting remote work, hybrid arrangements, or flexible schedules as standards.

    • Remote and hybrid work arrangements: Flexibility is no longer just a perk; it’s a priority for many employees. Businesses can appeal to top talent by offering options to work from home, even if just part of the time.
    • Flexible scheduling: Employees appreciate the ability to adjust their work hours to accommodate personal responsibilities, whether it’s picking up children from school or attending a doctor’s appointment. Flexible scheduling supports a work-life balance and reduces burnout.

    Paid Family Leave And Expanded Leave Options

    With work-life balance being a high priority for employees, having comprehensive leave policies in place are increasingly important. Employees expect to see options for paid parental leave, family medical leave, and even leave for mental health days.

    • Parental and family leave: Offering paid time off (PTO) for new parents or employees caring for a sick family member demonstrates empathy and builds loyalty. Small businesses may not be able to offer extensive leave but can explore affordable options to support employees during these life changes.
    • Paid time off flexibility: Employees appreciate flexible PTO policies, such as consolidated leave or even unlimited PTO. Flexible policies allow employees to take time off without worrying about strict caps or regulations, fostering a culture of trust and respect.

    Career Development And Educational Benefits

    Employees, especially Millennials and Generation Z, want jobs that offer growth and development opportunities. Providing access to career development resources is another powerful way to attract and retain ambitious, forward-looking employees.

    • Professional development programs: Opportunities for skill-building through workshops, courses, or seminars can make your company more attractive to candidates eager to learn. Many small businesses partner with online learning platforms to offer employees free or discounted courses.
    • Tuition reimbursement: While this benefit can be costly, it’s also highly attractive for employees interested in furthering their education. Offering partial tuition reimbursement can be a more affordable way to provide this benefit without full financial commitment.

    Financial Wellness And Student Loan Assistance

    Financial wellness benefits, such as student loan assistance, are in high demand, particularly among younger employees who may be carrying educational debt.

    • Student loan repayment assistance: Many employees still face significant student loan debt. Offering a student loan assistance program can make your business especially attractive to candidates early in their careers.
    • Financial education programs: Resources such as financial planning workshops or one-on-one consultations with financial advisors can help employees make informed financial decisions and feel more secure in their financial well-being.

    A Strong Company Culture To Complement Benefits Offerings

    A positive workplace culture is just as important to employees as specific benefits offerings. Some ways to encourage a healthy company culture include:

    • Team-building activities: Organizing events and initiatives encourages collaboration and camaraderie among staff, strengthening team dynamics.

    How Small Businesses Can Compete

    Offering competitive benefits doesn’t necessarily mean matching larger companies dollar-for-dollar. Small businesses can strategically focus on benefits that their employees value most and find creative ways to deliver them. By prioritizing employee needs, open communication, and being transparent about available resources, smaller companies can attract and retain talent effectively.

    At GMS, we specialize in helping businesses maximize their benefits offerings to meet evolving employee expectations. Our benefits administration services streamline health insurance, retirement plans, and other employee benefits to help businesses recruit and retain top talent.

    Partner with GMS to create a benefits package that meets today’s workforce expectations and positions your business as the ideal company to work for.

  • As we approach the end of the year, it’s a crucial time for Flexible Spending Account (FSA) holders to review their balances and ensure they’re maximizing these pre-tax dollars. While FSAs provide valuable tax benefits, they come with strict use-it-or-lose-it rules that can leave employees forfeiting funds if they don’t act before the year ends.  

    Continue reading to learn what both employers and employees need to know about FSAs, critical deadlines, and strategies to avoid losing these hard-earned savings. 

    Key Deadlines For FSAs 

    Flexible Spending Accounts generally have a calendar-year plan, which means that for many, December 31st is the last day to incur eligible expenses. According to the IRS, however, employers can offer one of these options that provide additional flexibility: 

    1. Grace period: Allows employees an extra two and a half months after year-end to use any remaining FSA funds. 
    2. Carryover option: Permits employees to roll over up to $640 of unused funds (as of 2024) into the next plan year while forfeiting any remaining balance beyond this limit. 

    Employers may offer one of these options but not both. It’s critical for employees to check with their HR departments to know which option, if any, applies to their account. 

    What Employees Should Know 

    Employees looking to make the most of their FSAs before the deadline should consider the following steps: 

    • Review eligible expenses: FSAs cover a wide range of medical, dental, and vision expenses. Typical eligible expenses include prescription medications, copays, and medical equipment. Click here for an entire store of qualifying expenses, which can be helpful in planning year-end spending. 
    • Schedule appointments and fill prescriptions: Many health care providers and pharmacies book up quickly toward the end of the year. Employees should consider scheduling any necessary medical, dental, or vision appointments as soon as possible. 
    • Invest in health products: Many over-the-counter products, such as first aid kits, blood pressure monitors, and even sunscreen, are FSA-eligible. Employees can use up their remaining funds on these items. 
    • Track spending carefully: It’s essential to keep receipts and track spending, as some items may need documentation for reimbursement. Additionally, employees should confirm their remaining balance through their FSA provider to avoid overspending. 

    Important Considerations For Employers 

    Employers play a vital role in helping employees understand and maximize their FSA benefits. Here are some key points for employers to keep in mind: 

    • Communicate deadlines: Employers should remind employees of year-end deadlines and if there are grace periods or carryover options in place. Clear communication can help employees make informed spending decisions. 
    • Encourage education on eligible expenses: Many employees may not be aware of the full range of FSA-eligible expenses. Employers can consider sharing resources or holding informational sessions to help employees make the most of their funds. 
    • Evaluate FSA options for the next year: Offering a grace period or carryover option can provide employees with valuable flexibility, and it may encourage higher FSA participation rates. Employers should assess these options annually to determine which choice best aligns with their company’s goals and employee needs. 

    How GMS Can Help 

    FSAs are a valuable employee benefit, but managing them effectively requires clear communication and guidance. Group Management Services (GMS) assists businesses in structuring and managing their benefits packages, including FSAs, to optimize value for both employees and employers. From helping you select the best FSA options to educating your workforce about deadlines and eligible expenses, GMS provides comprehensive support to make year-end planning seamless. 

    Don’t let your employees lose out on the benefits they deserve. Contact GMS today to maximize the impact of your company’s FSA offerings.