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  • If you’re a business owner, you know how hard it is to keep up with all aspects of your business. You have to manage your employees, ensure the product is coming in on schedule, and keep track of all the different projects you’re working on. In addition, then there’s the day-to-day work of running your business-managing your employees’ paychecks, paying bills and taxes, and keeping track of inventory. The list goes on and on!

    However, if you’re like most business owners, you don’t have time to take care of your retirement savings on your own. That’s where a 401(k) plan comes in—they make managing these savings easy! Many business owners choose to offer 401(k) plans to their employees without considering the intricacies. Many resources are available to help you understand 401(k) plans, but they aren’t always easy to understand. This guide is designed to help business owners better understand how 401(k) plans operate, including the main benefits offered by this type of retirement account.

    Why Should My Company Offer A 401(k) Plan?

    If you’re a business owner, you may be wondering what a 401(k) is and how it can benefit your company. A 401(k) is an employee benefit plan that allows employees to save money for retirement. When you contribute money to a 401(k), it’s usually taken out of your paycheck before taxes are calculated. This means that the amount of money actually deposited into your account is lower than the amount of money being withheld from your paycheck.

    While there are many different types of 401(k) plans, the most common type is called a defined contribution plan. In this type of plan, you choose how much money you want to contribute to the plan each year—and how much will be deducted from each paycheck. Then, when employees reach the retirement age of roughly 60, they can begin withdrawing funds from their accounts without incurring penalties or taxes on those withdrawals (unless they withdraw more than they’ve contributed).

    How Does A 401(k) Work?

    You set up an employee contribution plan with the financial institution that manages your company’s 401(k) plan, typically called an “investment manager.” The employee contribution plan will tell them how much money to take out of each paycheck and put in their account each month.

    The investment manager will then invest that money for you based on certain parameters set by you and/or your company, such as what kind of investments to make. They’ll then give you periodic reports about how much money has been contributed.

    Types Of 401(k)Plans

    Traditional: This option allows you to deduct contributions from your taxable income, which means that your contributions will lower your overall tax bill at the end of the year. Traditional funds can also be rolled over into an IRA when you retire or leave your job.

    Roth: With this option, you pay taxes now but can withdraw funds tax-free when you retire or leave your job. You cannot roll over Roth funds into an IRA once they’ve been deposited into the account; however, there are some exceptions based on age and other factors.

    Profit sharing plans: These are plans where the employer contributes a set percentage of its profits into each employee’s 401(k) account on an annual basis, usually four or five percent. The employee doesn’t get to choose how much money goes into their own account; instead, they take home whatever amount is left over after all contributions have been made by the employer and employee combined together.

    Defined contribution plan: This is the most common type of 401(k) plan. The employer decides how much money to contribute, and each employee can also choose to make voluntary contributions.

    Defined benefit plan: In this type of plan, the employer agrees to pay a specific amount of money to the employee at retirement based on their number of years of employment, salary level, and other factors. The amount that an employee receives from a defined benefit plan will depend on their age and salary at retirement.

    How Do I Choose The Right Plan?

    401(k) plans are an important option for business owners, but they can also be very confusing. There are many different types of 401(k) plans, and each one has its own set of rules and requirements. If you’re a business owner and you want to start offering a 401(k) plan for your employees, it’s important to choose the right one. Here are some tips on how to do that:

    1. Find out if your state requires a certain type of 401(k) plan. If it does, then you’ll need to make sure that the plan you choose matches those requirements. Otherwise, your employees won’t be able to participate in the plan if it doesn’t meet state standards. You can find out what types of plans are available in your state by contacting your local Department of Labor or Small Business Administration office.
    2. Make sure that any fees associated with managing your 401(k) plan are reasonable compared with other plans offered by other companies in your area (or even across state lines). If not, then look into other options until you find something more affordable for you and your employees!
    3. Make sure that the investment options available through this plan will allow you to grow your money without risking too much—but also without taking too much risk!

    How Do I Start?

    401(k) plans are an important part of ensuring your workers have a secure retirement. They’re also a great way to attract and retain talented employees. Below is a step-by-step guide to getting started:

    • Start by contacting a broker or financial advisor for help setting up the plan. They can help you determine what kind of plan is best for your company, including whether or not you should include matching contributions. You may even choose to work with a professional employer organization (PEO) to handle all of these logistics for you.
    • Next, determine how much money you want to contribute to the plan each year. You can decide on any amount, but it’s recommended that you contribute at least enough so that each employee receives at least three percent of their annual salary as a contribution from their employer.
    • The next step is to determine whether or not you want employees to be able to contribute on their own. If so, make sure they understand the limits that apply and how much they can contribute without penalty (in most cases, it’s $18,500).
    • Finally, decide how much money will be taken out of each paycheck towards paying into the plan each month, quarter, and/or year, depending on what works best for your company’s budgeting cycle.

    During this process, you need to decide whether or not to hire a professional employer organization (PEO). A PEO will take care of many of the administrative tasks involved in setting up and managing a 401(k) plan for you—including payroll processing, tax filing, and benefits administration—so that you can focus on running your company.

    Let’s Talk About Your 401(k) Options

    Introducing 401(k) plans to your employees can be one of the best decisions you make as a business owner. Not only is it a great benefit for your employees, but it’s also an excellent way to attract new talent and keep your existing team happy.

    But if you’re unsure how to get started, we’re here to help!

    GMS offers a variety of 401(k) plans that are customizable and easy to use. We’ve been helping small businesses similar to yours get their feet wet with this exciting new benefit for years, and we’d love to help you, too. Contact us today!

  • The Illinois legislature passed the Paid Leave for All Workers (PLFAW) Act on January 10th, 2023. The passing of this law makes Illinois the third state in the U.S. to require private employers to provide earned paid leave to employees to be used for any reason. Maine and Nevada are the other states who have implemented similar laws.

    The act will take effect on January 1st, 2024, and will provide nearly all Illinois employees with a minimum of 40 hours of paid leave or a pro-rata number of hours throughout a 12-month period. Leave accrues at the rate of one hour of paid leave for every forty hours worked. In addition, the law will consider exempt employees to have worked 40 hours in each workweek for purposes of the PLFAW Act accrual unless their regular workweeks are less than 40 hours. It permits employees to use their leave after 90 days on the job unless an employer allows them to utilize leave earlier. Employers can set a minimum increment of no less than two hours per day.

    The PLFAW Act does not require employees to provide a reason to their employer for taking leave. Employers will not be permitted to require documentation or certification of the need to take this leave. However, employers may require their employees to give at least seven days’ notice of foreseeable leave if they have a written policy that outlines the notice requirements and procedures. Foreseeable leave can include the following:

    • Expected birth
    • Placement for adoption or foster care
    • Planned medical treatment for a serious health condition of an employee or family member
    • Planned medical treatment for a serious injury or illness of a covered service member

    Employees must provide notice of leave as soon as possible if leave is foreseeable.

    Additional Considerations You Should Be Aware Of

    Leave under the PLFAW Act will be paid at the employee’s hourly rate of pay for the hours of paid leave they take. If you have employees who make tips and commissions, they must be paid at least the full minimum wage for the jurisdiction, or their hourly rate, whichever is higher. Any unused accrued leave will carry over every year; however, employers will not be required to provide more than 40 hours of paid leave for an employee in the 12-month period. Should you allocate the 40 hours upfront, you will not be required to carry over unused paid leave for the following 12-month period.

    As with many aspects of running a business, you must keep records documenting the following under the PLFAW Act:

    • Hours worked
    • Leave accrued and taken
    • Remaining paid leave balances

    These records should be kept for at least three years and allow the Illinois Department of Labor (IDOL) to have access to these records. If you don’t comply with the recordkeeping requirements, employers can face penalties of $2,500 per offense. Finally, employers must post a notice summarizing the requirements of this act. This should be posted in a common area where other workplace posters are hung. Should you not comply with the posting requirements, employers can face a penalty of $500 for the first violation and $1,000 for any other violations.

    The law does not apply to the following:

    • School districts or park districts
    • Students employed on a part-time or temporary basis by the college or university they attend
    • Short-term employees of higher education institutions who are employed for less than two consecutive calendar quarters during a calendar year without a reasonable expectation that they will be rehired in a subsequent year
    • Employees working in the construction industry are covered by a bona fide collective bargaining agreement
    • Employees covered by a bona fide collective bargaining agreement with an employer that provides national or internal services of delivery, pickup, and transportation of parcels, documents, and freight
    • Employers covered by municipal or county ordinances in effect on January 1st, 2024, that provide for paid leave or paid sick leave

    Start Preparing Now!

    While a year may seem like a long time to get ready to ensure you comply with the new law by January 1st, 2024, it’s essential that you start preparing now. This will be a significant change for most business owners in Illinois. With ever-changing rules and regulations, it’s vital that you remain compliant. When you partner with GMS, we ensure you comply with all federal and state laws and regulations. In addition, when providing your employees with paid time off (PTO), we work with you to create a program that ensures your employees feel heard and valued. Allowing employees to take time away from work is essential to create a productive workplace.

    Lisa Dassani, GMS’ Internal HR Manager, reflected, “Research consistently shows the health benefits of taking time off, such as improved productivity, reduced levels of unscheduled absenteeism, lowered stress levels, and improved mental health. Time off helps employees reset, which in turn, results in fewer errors on the job. We encourage our employees to take time off and even require that they take at least two weeks off per year. GMS offers unlimited PTO to employees that have reached their fifth year anniversary.”

    Contact us today to learn more.

  • As of January 1st, 2023, employees in California whose employers do not offer retirement plans now have access to an optional retirement savings plan. This plan will be a state-facilitated retirement savings program through the Colorado SecureSavings Program. The Colorado SecureSavings provides businesses with a convenient way to help their employees save for their future. If you’re a business owner who:

    • Has been in business for two or more years
    • Has five or more employees
    • Does not have a retirement savings plan in place

    You are now required by law to offer a retirement savings plan. Should you fail to provide your employees with one of these plans, you will face hefty fines levied by the state of Colorado.

    Who Qualifies For This Program?

    Any employee who is at least 18 years of age and has earned wages in Colorado for at least 180 days is eligible and automatically enrolled in the program. Employees will have 30 days following the enrollment date to opt-out or customize their contribution amounts, investment options, and beneficiaries. Suppose your employees choose not to opt out within this 30-day time frame. In that case, they will automatically have five percent of their compensation withheld on an after-tax basis and contributed to a Roth Individual Account (Roth IRA). A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. In addition, every January, contributions will automatically increase by one percent up to a maximum of eight percent unless the employee adjusts it.

    Should an employee not make an election on how their Roth IRA is to be invested, it will automatically be invested in the Capital Preservation Option. Capital preservation refers to an investment strategy where the main objective is to preserve capital and avoid losses in an investment portfolio. In utilizing this strategy, investments typically comprise the safest short-term investment products, including fixed deposits and bonds. It will then be transferred to the Target Retirement Date Option with a target date closest to the employee’s expected year of retirement.

    What You Should Know As A Business Owner In Colorado

    As with any law, as a business owner, you must know what every law entails and how it affects you, your business, and your employees. With this new law in Colorado, you will face hefty penalties if you don’t comply. It’s essential that you understand the following components of the law:

    • If you don’t sponsor a retirement savings plan for your employees, you must provide your payroll vendor’s name, payroll schedule, company bank information, contact information, and employee roster
    • Employees will then be automatically enrolled in the SecureSavings program
    • Employees hired after the date of registration must be enrolled in the SecureSavings program within 180 days of their hire date
    • You must update participating employees’ contribution rates within your payroll system
    • Contributions must begin with the payroll immediately after the 30-day opt-out period has passed
    • You must keep employee rosters and payroll contribution information updated
    • You are prohibited from setting up or managing employees’ accounts, managing investment options, or answering questions about the program
    • You are not permitted to provide any tax, legal, or other financial advice
    • Your employees will receive a Form 5498 directly from the trustee of the program no later than May 31st every year

    Save Yourself The Headache, Partner With GMS

    We understand that staying on top of, yet another law is a lot to take on. You wear many hats as a business owner and don’t have the time or money to manage every aspect of your business. When you hand off the administrative burdens of your business to GMS, you can finally focus on what you do best – growing your business. GMS helps with profit sharing and 401(k)s for small businesses. In serving as the plan’s co-sponsor, PEOs can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant with your 401(k). We can help you set up fully customizable retirement savings plans that make your company more attractive to quality employees. When you partner with GMS, you can easily establish the following:

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

    Check this off your to-do list for the week. Contact us today to learn more.

  • Among many things, the COVID-19 pandemic changed how providers connected with patients worldwide. To stop the spread of COVID-19 early on, many providers postponed or canceled patients’ appointments. As a result, telehealth became a prominent source of patient care and monitoring. Telehealth provides individuals with easy access to providers while decreasing in-person contact with health care facilities and staff. Patients receive real-time interactions monitored through a smartphone, tablet, or computer. Pre-deductible telehealth coverage was included in the 2023 omnibus spending bill. The bill proposed that the telehealth pre-deductible coverage would remain available for an additional two years. On December 29th, 2022, President Joe Biden signed the $1.7 trillion spending bill into law. The bill included extending telehealth relief provision, which supported the 2020 Coronavirus Aid Relief and Economic Security Act (CARES). The CARES Act pushed payments to eligible adults, expanded unemployment insurance, and gave loan borrowers additional time to make payments.

    Understanding Pre-Deductible Coverage

    Understanding how your deductible works is an integral part of getting the most out of your policy. It’s imperative to understand how pre-deductibles work within your business. Pre-deductible benefits are implemented when your plan starts – giving access to you and your employees before reaching the set deductible. This allows you and your employees to receive coverage while removing the financial barrier – allowing the use of essential medicines, medical devices, and diagnostic tests.

    Good news for employers: the bill’s provision allows health savings account (HSA) -qualifying high-deductible health plans (HDHPs) to cover telehealth and other remote-care service options on a pre-deductible basis. Additionally, an otherwise HSA-eligible individual can receive pre-deductible coverage for such remote-care services from a stand-alone vendor outside of the HDHP. In both cases, the pre-deductible telehealth coverage won’t affect an individual’s eligibility to make or receive HSA contributions. In short, this pre-deductible coverage has improved access to health care options, in a convenient and accessible way.

    Following the HSA contribution rules, employees remain eligible for telehealth without affecting their contributions. Individuals within your organization could receive remote care from vendors in and outside of one’s network.

    Remain Protected With GMS

    When the world shut down amidst the COVID-19 pandemic, telehealth services reached an all-time high. As we transition out of that period, there are certain benefits employees want to stay – pre-deductible telehealth coverage being one of them. Luckily, it has been extended another two years, but still leaves uncertainty for the future thereafter. As a partner of GMS, you can receive affordable and convenient health consultations with licensed physicians. Additionally, Teladoc saves you and your employees time from sitting in waiting rooms, minimizing the need to take time off work. Through our partner, Teladoc, your employees can stay healthy and productive. Contact GMS today to learn more.

  • As 2023 is in full throttle, it’s time to start thinking about your new year’s business resolutions. Whether you’ve started prepping for this year’s goals or not, it’s time to consider how to enhance your business functions. As a small business owner, you may want to start by providing your employees with a retirement savings plan. This can be intimidating, and you might not know where to start. However, we’ve provided you with a variety of different ways in which you can offer your employees a retirement plan to set them up for success.

    Let’s Start With The Basics

    An individual retirement account (IRA) is a long-term savings account that individuals with earned income can utilize to save for the future while enjoying certain tax advantages. Money held in an IRA typically cannot be withdrawn before the age of 59 ½ without incurring a significant tax penalty of 10% of the amount withdrawn. In addition, there are a variety of IRAs individuals can utilize, including:

    • Traditional IRAs
    • Roth IRAs
    • Simplified Employee Pension (SEP) IRAs

    For a deeper dive into these various retirement plan options, click here.

    Is The Safe Harbor 401(k) The Right Fit For Your Business?

    When it comes to retirement plans, not all are inexpensive to establish, nor are they easy to maintain. Recently, businesses have begun implementing a Safe Harbor 401(k). A Safe Harbor Plan 401(k) is similar to a traditional 401(k) plan; however, it must provide for employer contributions that are fully vested when made. These contributions may be employer-matching contributions that are limited to employees who accept, or employer contributions made on behalf of all eligible employees, regardless of whether they make elective deferrals. You can forgo annual nondiscrimination testing in exchange for required contributions, which ultimately helps reduce your duties as the plan administrator.

    While a Safe Harbor plan offers many benefits, it makes it easier to save for your own retirement while also helping your employees become ready for their retirement. Business owners may contribute up to $20,500 tax deferred, lowering their personal tax liability. On top of that, the employer-matching contribution you provide for your employees is a tax deduction.

    Partner With GMS

    Offering a retirement plan to your employees is essential to recruiting and retaining quality employees, but it’s a benefit with a lot of complexity and risk. Yes, all of these plans sound great, but do you really want to take the time out of your already busy schedule to implement this? Fortunately, when you partner with GMS, we’ve made it easy for you to give your employees what they want and need, all while doing what you do best – growing your business. Our partnership provides you access to our small business 401(k) plan administration services. You can also offer your employees a profit-sharing 401(k) plan!

    By implementing a profit-sharing plan, you can show employees they are critical to your company’s success by rewarding them for their hard work. Partnering with a PEO like GMS helps you with the following:

    • Cut costs and reduce stress
    • Save time
    • Offer benefits your employees want the most

    To learn more, contact us today.

  • In late December 2022, government officials announced changes coming to the U.S. retirement system. A collection of retirement-related provisions known as “Secure 2.0” includes a 4,100-page, $1.7 trillion spending that will fund the government for the 2023 fiscal year. The Secure Act 2.0 would require employers with 401(k) or 403(b) plans to automatically enroll all new, eligible employees at a 3% contribution rate, increasing by 1% each year until it reaches 10%.

    The current law allows individuals at least 50 years old to put an extra $6,500 annually in their 401(k). Secure 2.0 would increase the limit to $10,000 starting in 2025 for individuals ages 60 to 63. In addition, the following would also change:

    • Catch-up amounts would be indexed for inflation
    • All catch-up contributions will be subject to Roth treatment (not pre-tax) except for workers who earn $145,000 or less

    These provisions are intended to build on improvements to the retirement system that were implemented under the 2019 Secure Act. The following are provisions for the new law:

    • Requires automatic 401(k) enrollment
    • Increases the age when required minimum distribution (RMD) would need to start
    • Creates bigger “catch-up” contributions for older retirement savers
    • Broadens employer 401(k) match options
    • Improves worker access to emergency savings
    • Increase part-time workers’ access to retirement accounts
    • Boosts the contribution amount of a qualified longevity annuity contract
    • Changes the required minimum distribution amount
    • Broadens usage for unused college savings money

    In addition to all these benefits, it also includes a variety of incentives for small businesses to set up retirement savings plans for their employees, encourages individuals to set aside long-term savings, and makes it easier for annuities to be an income option for retirees.

    What This Means For Small Business Owners

    These provisions are intended to help employees save more for their retirement. Whether you want to attract more employees or find ways to retain current employees, providing your employees with a retirement plan is critical. When you implement a retirement plan, you show your employees that they are critical to your company’s success. Partnering with a professional employer organization (PEO) like GMS will help you and your business with 401(k) plans by doing the following:

    • Cut costs and reduce stress
    • Save time
    • Offer benefits your employees need the most

    Contact GMS today to learn more.

  • Since the COVID-19 pandemic changed the health care industry, telehealth has emerged as an unexpected silver lining. Telehealth has improved access to care and has facilitated a transition toward digital medicine. During a time of hardships amongst individuals worldwide, telehealth enables virtual doctor visits when in-office visits become almost impossible. Now, telehealth is here to stay indefinitely.

    The Evolution Of Telehealth

    Telehealth, often referred to as telemedicine, allows your health care provider to care for you without an in-person office visit. It’s done primarily online with internet access on your computer, tablet, or smartphone. While telehealth has become increasingly important since the COVID-19 pandemic, it has actually been around for quite some time.

    One of the earliest uses of hospital-based telemedicine was in the late 1950s when a closed-circuit television link was established between the Nebraska Psychiatric Institute and Norfolk State Hospital for psychiatric consultations. Telemedicine became most prevalent in rural areas where populations had limited access to health care and could reach specialists from afar. Since then, technological advances have improved telemedicine efforts, but still resemble earlier telemedicine equipment.

    In the fall of 2020, nearly two-thirds of Medicare beneficiaries reported that their provider offered telehealth appointments, up 18% from before the pandemic. A survey was conducted regarding telehealth, and 69% of the respondents said that they use telehealth because it’s more convenient than an in-person appointment. In addition, 78% said telehealth made it easier for them to seek out health care when they need it.

    The Future Of Telehealth

    Given the rise and sustained higher use of telehealth since the COVID-19 pandemic, the following are trends to be aware of moving into the new year:

    • There will be restrictions on telehealth use, and reimbursements will be permanently lifted
    • Telehealth business models will continue to evolve
    • The types of care that can be provided through telehealth will continue to expand
    • Telehealth will serve as a catalyst to expand the range of mental and behavioral health services

    Telehealth will continue to be an essential means of delivering care to individuals across the United States.

    What This Means For Business Owners

    Understanding the importance and the future of telemedicine is beneficial for any business owner. When providing your employees with a benefits program, it’s worthwhile to look into telemedicine options to offer them the resources they need. We all know that seeing a doctor in person isn’t always convenient. Depending on your doctor’s availability, you may have to deal with several scheduling headaches to get an in-person meeting. The convenience of telehealth saves you and your employees time by cutting out travel and sitting in waiting rooms. It also limits the need to take time off of work to fit an employee’s ailments into a doctor’s schedule and cuts out costly co-pays.

    Luckily, when you partner with GMS, you gain access to quick, convenient telehealth access. Affordable and convenient health consultations with licensed physicians are only a phone call or mouse click away through telehealth. Contact GMS today about adding telemedicine services to your business’s health plan to help your employees stay healthy and productive.

  • Since the COVID-19 pandemic began in 2020, employers have started implementing workplace safety protocols to ensure the safety and health of their employees. While that will always be an essential aspect of one’s business, there are additional ways to promote health at work. Health promotion within the workplace ultimately creates conditions that support and teach the best possible health for your employees. This gives employees a sense of ownership, and they learn to work together to form a coordinated action plan to improve their well-being.

    As 2023 approaches, what better way to kickstart the new year than by promoting a culture of health within your organization? Continue reading to understand the importance of health in the workplace and how you can begin implementing it.

    Building A Culture Of Health

    Healthy employees make for a more productive workplace and a happier workforce. These results in fewer sick days, quicker recovery, and your employees are at less risk for long-term illnesses. In addition, did you know that healthy employees incur 41% fewer costs? Knowing that, businesses have begun prioritizing encouraging and supporting their employees in adopting healthy behaviors. Business owners are providing their employees with the following:

    • Preventive support
    • Convenient treatment options
    • Tools and resources employees need in all areas of their health

    To establish the right foundation for what’s suitable for your business and employees, you must have the right programs in place and ensure your health strategy fits into your workplace culture. A great way to begin this process is by partnering with an expert in this area. A professional employer organization (PEO) like GMS can apply the following experience to your blueprint:

    • Incentive strategies
    • Benefits design
    • Communication strategies

    From there, create a culture of health by following these steps:

    • Dedicate senior leadership and manager support
    • Identify a worksite health and wellness coordinator (if applicable)
    • Create a wellness plan
    • Dedicate resources

    Why Is This Important?

    While business owners care about their employees and want them to be healthy, a culture of health ultimately provides significant financial benefits to your business. Employees who aren’t healthy cost employers $530 billion in productivity annually. Employee well-being provides your business with the following outcomes:

    • Employee engagement
    • Customer engagement
    • Turnover
    • Workplace safety

    Health promotion in the workplace shows employees that the organization recognizes that both the employer and the employee share some extent for the employee’s health. The company’s bottom line remains intact when your employees are taken care of.

    Creating A Healthy Culture With GMS

    We understand this might be an information overload for you. However, GMS experts are here to help you wherever you need them. Our benefits experts work with you to implement a wellness program within your workplace. If that seems too much to jump into, we can also assist you with creating a benefits package with basic wellness benefits for your employees to get the resources they need. Allow GMS to help you create a healthy workforce to kickstart 2023. Contact us today.

  • As business owners continue to face a tight labor market, companies have been searching for ways to stand out from their competition. While many businesses have resorted to increasing salaries and implementing hybrid work schedules, others have increased their benefit options. Researchers say that 51% of employees say that benefits play a significant role in talent retention. As 2023 approaches, finding ways to stand out from your competitors will be essential.

    Employer-Assisted Housing Programs

    Recently, businesses have begun helping their workers purchase homes by offering employer-assisted housing programs (EAHPs). EAH programs provide a channel through which employers can help their employees with the cost of owning or renting a home, typically in neighborhoods close to the workplace.

    The following are ways in which assistance could be provided:

    • Down payment grants
    • Loans
    • Homeownership counseling and education
    • Rental subsidies
    • Direct investment in the construction of rental housing

    Why This Is Becoming Popular

    The COVID-19 pandemic has affected everyone in various ways. Alongside that, inflation has increased prices for necessities for individuals to survive. 49% of Americans say that the availability of affordable housing in their community is a huge issue. In addition, mortgage rates throughout the U.S. have climbed over seven percent for the first time in 20 years.

    EAH programs help build employee loyalty and increase productivity through the following:

    • Improved morale
    • Enhanced employee work/life balance
    • Decreased absenteeism

    The unavailability of affordable housing makes it challenging for employers to attract quality employees. Employers can set themselves apart from their competitors when they offer housing benefits, ultimately improving their competitive position. A study showed that those who own homes often work harder and longer for their employer.

    Outsource Your Benefits Administration

    If retaining and attracting top talent is essential for you, you’ve come to the right place. Partnering with GMS provides benefits outsourcing services that allow your company to offer competitive, cost-effective benefits while you focus on growing your business. If providing your employees with EAH programs is too big of a step for you right now, we will work diligently with you to get you the benefits your employees want and need. Contact us today to learn more.

  • It’s without question that individuals across the world are burned out and exhausted. Clearly, burnout in the workplace exists, and we are a long way from ideal working conditions brought on by the great resignation. Burnout can take different forms, affecting individuals physically, emotionally, and behaviorally.

    The following are common causes of burnout:

    • Lack of adequate social support
    • Taking on more than one can handle at work, school, or interpersonally
    • Poor self-care
    • Lack of sleep

    Burnout is a feeling of being exhausted or the point when you feel trapped in a job without growth opportunities. It’s a recognized medical condition that affects 77% of employees. On top of that, burnt-out employees are over 50% more likely to seek a new job. As a business owner, how will you ensure your employees feel less burnout than normal?

    Sabbaticals Could Be The Solution

    While many businesses provide their employees with paid time off, sick days, and personal days, there are still businesses that don’t. As a business owner, consider starting there if you don’t already provide your employees with these benefits. However, if you already do, great! If you notice your employees are still experiencing burnout, there is another action you can take. Implementing a workable sabbatical program might be the next step for you. Sabbatical leave is an extended time away from work granted to an employee for varying purposes, including:

    • Personal reasons
    • Professional and academic growth
    • Learning and development of new skills
    • Rest and recuperation while maintaining their status as an existing employee

    However, the Society for Human Resource Management (SHRM) conducted a survey that showed only 11% of employers offered an unpaid sabbatical program, and just 5% offered sabbaticals with pay. Talk about a benefit that will differentiate you from your competitors. Employers seeking to recruit and retain top talent may overlook a benefit many workers are likely to appreciate – a sabbatical program.

    What Will You Do?

    It’s no secret that many of your employees are feeling burnt out and potentially looking for better opportunities. However, GMS has just the solution for you. Did you know that flexibility can decrease burnout by 50%? That means that if you provide your employees with the benefits they need, whether that’s PTO, a hybrid work schedule, or perhaps a sabbatical, you could eliminate half of your employee’s burnout. GMS’ benefits outsourcing services allow your company to offer competitive, cost-effective benefits while you focus on what you do best – growing your business. Maybe right now isn’t a good time to provide your employees with a sabbatical program. If that’s the case, let GMS review your current benefits program and determine how we can improve them to decrease the burnout your employees are feeling. Contact us today to learn more.