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  • 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. 

  • The U.S. Department of Justice (DOJ) recently announced significant updates to its evaluation of corporate compliance programs (ECCP) policy document, a critical reference for determining whether corporate compliance programs are robust and effective. These changes, which became effective on September 23, 2024, are designed to address evolving risks, particularly around emerging technologies like artificial intelligence (AI) and the use of data analytics in compliance operations. 

    Let’s explore what these updates mean for your organization and how to ensure your compliance program stays ahead of the curve. 

    Understanding The DOJ’s Evaluation Of Corporate Compliance Programs 

    The ECCP is a key resource that the DOJ uses to assess whether a company’s compliance program is well-structured and effectively implemented. The DOJ’s approach to evaluating corporate compliance now includes a particular emphasis on how businesses are managing the risks presented by AI and other new technologies. This evaluation can impact decisions related to criminal charges, monetary penalties, and ongoing compliance obligations such as corporate integrity agreements. 

    New Focus On AI And Emerging Technologies 

    The DOJ has made it clear: the rapid development and use of AI presents new challenges that must be managed proactively. Companies are now expected to have specific policies, procedures, and safeguards in place to certify that AI technology is not misused, whether intentionally or recklessly. Prosecutors will ask detailed questions about AI risk management, such as: 

    • Does the company assess how AI could impact its ability to comply with laws? 
    • How does the company integrate AI risk management into its broader enterprise risk strategies? 
    • What measures are in place to prevent AI misuse and guarantee trustworthiness? 
    • Are there controls ensuring AI is used as intended, and how is human oversight maintained? 

    To address these questions, your compliance program should include mechanisms for monitoring AI usage, auditing AI performance, and training employees on proper and ethical use of AI technology. The DOJ’s message is clear: companies cannot afford to ignore the risks associated with emerging technologies. 

    Leveraging Data Analytics In Compliance Programs 

    Another major focus of the ECCP update is the strategic use of data analytics in compliance efforts. The DOJ now expects companies to leverage data analytics tools to enhance their compliance operations and monitor program effectiveness. Prosecutors will evaluate whether compliance personnel have adequate access to data systems and whether the company uses data to improve efficiency and measures outcomes. 

    Key questions from the ECCP update include: 

    • Is the company using data analytics to make compliance operations more efficient? 
    • How does the company ensure the quality and accuracy of its data sources? 
    • Are there methods in place to measure the performance of data analytics models? 

    This emphasis on data access and quality means companies must invest in robust data infrastructure and provide the necessary resources for their compliance teams to monitor and respond to potential risks effectively. Compliance staff must be equipped with the tools and training needed to leverage data analytics for proactive risk management. 

    Why This Matters For Your Business 

    The DOJ’s updated guidance highlights the increasing complexity of managing compliance in a technology-driven world. Companies must be proactive in understanding and mitigating risks posed by AI and emerging technologies, ensuring that their compliance frameworks are adaptable and robust. Furthermore, businesses that fail to leverage data analytics in their compliance operations may face greater scrutiny. 

    Practical steps for compliance 

    1. Review and update your compliance policies: Make sure your program addresses AI risks and incorporates data-driven monitoring tools. 
    2. Train your staff: Educate your team on the ethical and compliant use of new technologies, including AI. 
    3. Leverage data analytics: Invest in data systems that enable real-time monitoring and performance assessments of your compliance program. 
    4. Conduct regular audits: Frequently review your AI systems and data practices to ensure compliance and identify areas for improvement. 

    The Role Of Compliance In A Digital World 

    The DOJ’s ECCP update underscored the need for companies to adapt to technological advancements while maintaining strong compliance standards. As emerging technologies continue to evolve, organizations must stay vigilant, proactive, and committed to upholding the highest levels of corporate integrity. 

    If you’re unsure whether your compliance program meets these new DOJ expectations, partnering with a professional employer organization (PEO) like Group Management Services (GMS) can provide clarity and guarantee your business remains compliant. 

    Contact GMS today to see how we can support your organization in effectively managing compliance risks. 

  • Navigating employee performance management can be a challenge, especially when it comes to disciplinary actions. Writing up employees may not be pleasant, but it’s a crucial step in maintaining a fair and productive work environment.

    When other forms of discipline like verbal warnings or informal coaching aren’t leading to an improvement in performance, an effective employee write-up can result in a good outcome for the organization, employees, and their supervisors. When performed incorrectly, write-ups can lead to misunderstandings or even legal issues.

    Listed below are common mistakes to avoid when issuing employee write-ups and how to ensure your approach is effective and compliant.

    Mistake: Waiting Too Long To Address Issues

    Promptly addressing problems is key to effective performance management.

    Delaying disciplinary action can weaken the message and reduce the effectiveness of a write-up. Taking too long to discipline an employee could also lead to important details of the situation being forgotten or lost as time progresses. Addressing performance or conduct issues quickly after they occur establishes a precedence for employees to understand the importance of the matter and gives them a chance to correct their behavior. Early intervention also provides a clearer timeline if future actions are needed.

    Mistake: Letting Emotions Take Over

    Write-ups should be calm, factual, and objective.

    Issuing a write-up when emotions are high can lead to unprofessional language and mistakes. Take the time to cool down and approach the situation calmly. An effective write-up focuses on objective and documented facts rather than opinions or frustrations. Employees challenging a disciplinary decision can use the write-up as evidence. Therefore, it’s important to remember that the goal of a write-up is to correct behavior, not to punish out of anger.

    Mistake: Using Vague Language

    Specificity is essential for clarity and compliance.

    Ambiguity can lead to confusion and weaken the write-up. Be precise when describing incidents, including details such as dates, times, and behaviors. Reference specific company policies that were violated and explain the impact of the employee’s actions. Providing clear examples leaves no room for misinterpretation and reinforces the seriousness of the issue.

    Mistake: Skipping Witness Statements

    Including witnesses adds credibility to documentation.

    If other employees or customers observed the incident, gathering their factual statements can strengthen a case. Witnesses should be unbiased and based on direct observations. This additional perspective not only reinforces a write-up but also demonstrates a thorough investigation into the issue.

    Mistake: Failing To Outline Clear Expectations For Improvement

    Clear goals and timelines are necessary for effective corrective action.

    Simply pointing out what went wrong is not enough. Detail what the employee needs to do to improve, provide actionable steps, and set a specific deadline. Employers can create a performance improvement plan (PIP), a formal written document that outlines recurring behavior and/or performance issues along with a specific timeline for the employee to achieve certain goals to regain good standing in the company.

    This not only helps the employee understand what’s expected but also protects the company if further disciplinary action is needed. Focus on corrective feedback rather than highlighting what’s wrong and avoid minimizing the seriousness with praise.

    Mistake: Delivering Write-Ups In The Wrong Setting

    Write-ups should be delivered in person whenever possible.

    Issuing a write-up via email or in a casual setting undermines the gravity of the situation. Schedule a private meeting to discuss the issue respectfully and provide the employee with a physical copy of the write-up. This allows for a professional and constructive conversation and gives the employee an opportunity to ask questions and understand the next steps.

    Mistake: Overlooking Company Policy References

    Aligning write-ups with company policies reinforces fairness and compliance.

    Always reference the relevant sections of the company’s policies when documenting a violation. If the employee signed an acknowledgment of these policies, in a handbook for example, mention that in the write-up. This consistency reduces the risk of claims of unfair treatment and strengthens the legitimacy of disciplinary action.

    Mistake: Not Following Up After The Write-Up

    Monitoring progress is just as important as issuing the write-up.

    Once a write-up has been issued, it’s crucial to evaluate whether the employee is making the necessary improvements. This can be done through informal evaluations such as observing their interactions with customers, or formal assessments using a standardized rubric. Demonstrate support by being available for questions and providing guidance. Effective follow-up helps prevent future issues and emphasizes a manager’s commitment to their employee’s growth.

    Partner With GMS For Expert Employee Management

    Employee write-ups are just one aspect of effective performance management. At GMS, we help business owners handle the complexities of managing employees, from documentation to compliance, employee development, goal setting, and more. Our team of HR experts can take on these administrative burdens, ensuring you stay protected, and your employees remain productive.

    Contact GMS today to learn how we can support your business and improve your employee management strategies. Download our free guide on simplifying performance management to get started.

  • Setting up a 401(k) plan for your small business not only helps you stand out in the competitive job market but also offers tax credits, deductions, and retirement savings for business owners. With the passing of SECURE Act 2.0, small businesses can take advantage of even more tax incentives, making a 401(k) plan more lucrative.

    The following steps will help get you started on establishing a 401(k) for your employees.

    Why Offer A 401(k) Plan?

    Many business owners assume a 401(k) plan is too costly or complex, but the benefits can far outweigh the negatives. By offering a 401(k) plan you can:

    • Attract and retain top talent: A recent study found that after health insurance, retirement plans are tied with company leave as the second most sought-after benefit. This study also found that 401(k) plans can help reduce turnover rates and boost retention by 81%.
    • Access tax credits: Small businesses with 50 employees or less may qualify for up to $5,000 per year in startup tax credits for the first three years, and an additional $500 annually for automatic enrollment, adding up to a potential $16,500 in total savings.
    • Secure retirement savings: A 401(k) plan lets business owners contribute to their own retirement savings while offering tax-deductible contributions for their company.

    Step 1: Research Retirement Options

    If you don’t have a 401(k) set up for your business, begin by exploring providers. Look into reputable financial institutions that offer robust support, payroll integration, and easy administration. Seek feedback from other small business owners about their experiences and consider a provider that can serve you for the long term.

    Consider factors such as:

    • Cost: How much is the plan? Is there a monthly fee associated with managing the plan?
    • Investment options: What funds are available in the plan?
    • Advice and guidance: Is there advice or counsel offered for participants?
    • Customer support: Is there easy access to reliable support if technical questions arise?

    Step 2: Choose Your 401(k) Plan Type

    Once you have a provider, select one or more plan types that best fits your business and employees’ needs:

    A traditional 401(k) allows employees to make pre-tax contributions via payroll deductions. Employers can contribute on behalf of employees, offer matching contributions, or both, with these contributions potentially subject to a vesting schedule. This plan must meet nondiscrimination requirements through annual actual deferral percentage (ADP), actual contribution percentage (ACP), and top-heavy tests to ensure fairness to ensure fairness. to ensure fairness.

    A Roth 401(k) is similar to traditional plans but contributions are made with after-tax dollars. This means withdrawals from the account are tax free upon retirement.

    The safe harbor 401(k) also resembles traditional plans except this plan requires employers to make contributions that employees own right away. These contributions can either match what employees put in or be a set amount for everyone who qualifies. A safe harbor plan doesn’t have to pass the ADP or ACP tests if employers provide their employees with clear and timely information about how the plan works and what their rights are.

    Lastly, the SIMPLE 401(k) is designed for small businesses with 100 or fewer employees. It is not subject to annual nondiscrimination tests and requires fully vested employer contributions. However, employees cannot receive contributions under other plans of the employer. If an employer offers alternative retirement plans, an employee utilizing the SIMPLE 401(k) plan can’t maintain those options.

    Once you have your plan type(s) selected, you should then consider other factors such as automatic enrollment and matching contributions. Automatic enrollment self-enrolls employees in your company’s plan, increasing participation rates and potentially qualifying your business for extra tax credits. Matching contributions is when an employer matches an employee’s 401k contribution up to a certain percentage of the employee’s salary.

    Step 3: Create A 401(k) Plan Document

    Draft a plan document that meets IRS requirements and outlines the specifics of your retirement plan. This document will include the plan’s terms, contribution structure, and eligibility criteria. Work with your provider to ensure compliance with federal regulations.

    Step 4: Set Up A Trust To Hold Plan Assets

    All 401(k) plan assets must be held in a trust to protect participants’ interests. Appoint at least one trustee to manage contributions, investments, and distributions, ensuring the plan’s financial integrity.

    Step 5: Maintain Accurate Records

    Accurate record-keeping is essential for tracking contributions and plan values. Many small businesses work with a contract administrator or financial institution to simplify this process and ensure ongoing compliance.

    Step 6: Inform Your Employees

    Provide employees with a summary plan description (SPD) that explains the plan’s benefits, rights, and features. Keep employees updated on investments and any plan changes. Transparent communication helps employees make informed decisions about their retirement savings.

    Step 7: Monitor And Maintain The Plan

    Regularly review your 401(k) plan to ensure it continues to meet your business and employees’ needs. A reliable provider can assist with compliance checks, manage reporting requirements, and help maximize the plan’s value.

    Tax Benefits Of Setting Up A 401(k) Plan

    Establishing a 401(k) plan offers several tax advantages for your business including:

    • Startup tax credits: As mentioned above, small businesses with up to 50 employees may qualify for a tax credit covering 100% of startup costs, up to $5,000 per year for the first three years. Medium-sized businesses (51-100 employees) are eligible for a 50% credit on administrative costs, capped at $5,000 annually for three years.
    • Employer contribution credit: The SECURE Act 2.0 introduced a credit that allows small businesses to receive up to $1,000 per employee in employer contribution credits. This amount phases out gradually over five years, providing 100% credit in the first two years, 75% in the third year, 50% in the fourth year, and 25% in the fifth year.
    • Employer contribution deduction: Employers can deduct contributions up to 25% of eligible employees’ compensation, directly reducing federal tax liability.
    • Pre-tax deferrals for employees: Contributions reduce taxable income for the employer and employees, as pre-tax contributions defer taxes until funds are withdrawn, potentially lowering employees’ tax bills in retirement.

    Setting Up Your 401(k) With Ease

    Establishing a 401(k) plan may seem complex, but the right partner can make the process straightforward and manageable. A professional employer organization (PEO) like Group Management Services (GMS) simplifies 401(k) administration, offering expertise in plan selection, compliance, and ongoing management. Let GMS help you build a retirement plan that benefits your employees and strengthens your business.

    Ready to get started? Contact GMS today to explore how we can help you set up a 401(k) plan best suited for your business.

  • As workplace temperatures rise, so does the need for robust safety measures to protect employees from heat-related risks. In August 2024, the Occupational Safety and Health Administration (OSHA) took a critical step by introducing a new proposed rule aimed at preventing heat injury and illness in both outdoor and indoor work environments. This proposal highlights OSHA’s commitment to reducing heat-related injuries and fatalities by mandating preventative measures in all general industry, construction, maritime, and agriculture sectors.

    U.S. employers are responsible for the consequences of workplace injuries. In addition to the resulting downtime and lost productivity, these incidents increase insurance premiums.

    Here’s what you need to know about this significant development and its implications for your business.

    Why OSHA’s Heat Prevention Standard Matters

    Excessive heat is the leading cause of weather-related fatalities in the U.S., posing significant risks to workers in both outdoor and indoor settings where cooling measures are limited. According to the Bureau of Labor Statistics, workplace heat exposure caused 479 fatalities between 2011 and 2022 and over 33,000 work-related injuries. Many of these incidents could have been prevented with structured safety plans, which is exactly what OSHA aims to address with this new rule.

    Additionally, OSHA increased its penalty rates earlier this year. Violations now cost a business over $16,000 per infraction. This increase adds further motivation for employers to meet compliance standards.

    Key Components Of The Proposed Rule

    The proposed OSHA standard requires employers in all general industry, construction, maritime, and agriculture sectors to implement comprehensive heat prevention measures. The rule outlines several key requirements:

    • Heat hazard assessment: Employers must evaluate heat risks in their workplaces, considering both outdoor temperatures and indoor heat sources like machinery and equipment.
    • Heat injury and illness prevention plan: A core requirement of the proposal is for employers to develop a written plan that outlines specific steps for managing and mitigating heat hazards. This plan would clarify employer responsibilities, from ensuring access to water and shade to adjusting work schedules based on temperature.
    • Workplace controls: The rule proposes both engineering controls (such as cooling systems) and work practice controls (like rotating shifts and breaks) to reduce workers’ exposure to high heat.
    • Emergency response and training: Employers must establish protocols for responding to heat-related illnesses and train employees and supervisors on recognizing heat stress symptoms, administering first aid, and implementing preventive measures.

    Who Is Affected By The Rule?

    Workers in high-risk environments, particularly those exposed to direct sunlight or operating heat-generating machinery, would benefit significantly from this regulation. Some groups, such as pregnant workers and employees of color, who are disproportionately employed in essential roles at higher heat risk, stand to gain the most from these protections.

    Why Employers Should Prepare Now

    OSHA is currently inviting public comments on the proposal, with a deadline set for December 30, 2024. Employers have an opportunity to provide feedback, but it’s also an ideal time to begin implementing preventive strategies. Preparing ahead can help businesses align with potential regulatory requirements while fostering a safer work environment.

    Alternatively, small and midsize businesses (SMBs) should consider partnering with a professional employer organization (PEO). PEOs like Group Management Services (GMS) not only ensure compliance with OSHA but also implement cost-containment and loss-prevention strategies to lower workers’ compensation rates and save your hard-earned money.

    Next Steps For Employers

    To get ahead, employers can start by:

    • Assessing workplace heat risks: Conduct a thorough evaluation of both outdoor and indoor work environments to identify areas where heat hazards exist.
    • Developing a heat safety plan: Outline procedures to provide hydration, shade, and cooling measures, and identify work adjustments during high-heat periods.
    • Engaging in OSHA’s comment period: Employers can visit Regulations.gov to submit comments or participate in the public discussion to help shape the final rule.

    Taking Action To Ensure Compliance And Safety

    With OSHA’s heat prevention proposal, businesses now have to mitigate one of the leading environmental risks in the workplace. Taking proactive steps not only ensures compliance but also underscores a commitment to employee health and safety, a core value for any successful organization.

    For additional support, GMS has a team of workers’ compensation experts who work closely with your company to create a comprehensive risk management plan tailored to meet OSHA standards. Our team can support you through every step, assessing the heat risks in your workplace and complying with OSHA. Contact us today, and let us help you create a safer and more compliant workforce!