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  • As a small business owner, your employees are the backbone of your organization, and their well-being and satisfaction directly impact your success. In today’s rapidly evolving work landscape, companies are reevaluating traditional policies and seeking innovative ways to foster employee happiness, engagement, and productivity. One such policy that has gained popularity recently is unlimited paid time off (PTO). While the idea of unlimited PTO might seem enticing, it’s crucial for small business owners to carefully consider various factors before implementing such a policy. Let’s explore the key aspects business owners should consider before offering this perk.

    Resource And Staffing Considerations

    Small businesses often operate with limited resources and tight-knit teams. Before implementing unlimited PTO, evaluate your business’s capacity to handle potential staffing gaps when multiple employees take time off simultaneously. Consider factors such as: 

    • Customer demand
    • Workload distribution 
    • The need for cross-training to ensure uninterrupted operations 

    It may be necessary to establish guidelines and processes for scheduling time off to maintain optimal productivity. 

    Communication And Expectations

    Clear communication is essential when introducing unlimited PTO. Ensure that employees understand the purpose of the policy and the expectations regarding requesting and scheduling time off. Establish guidelines for notice periods, blackout periods, and any limitations during peak business seasons. Transparent and proactive communication will help manage expectations, reduce misunderstandings, and maintain productivity.

    Defining Boundaries And Accountability

    While unlimited PTO offers flexibility, setting boundaries to prevent abuse or misuse is crucial. Define what “unlimited” means within your organization and establish guidelines for employees to follow when requesting time off. Encourage open dialogue about workload management, emphasizing the importance of planning and ensuring employees remain accountable for their responsibilities. Regular check-ins and performance evaluations can help monitor productivity and address any concerns.

    Tracking And Record-Keeping

    Small businesses must implement a system to track and manage time off. Consider using technology tools or software that enable employees to request and track their time off, providing visibility for employees and management. Accurate record-keeping will help ensure fairness, prevent conflicts, and comply with legal requirements.

    Budget And Financial Implications

    Unlimited PTO can have financial implications for businesses. Evaluate the potential impact on payroll expenses, especially if employees receive payouts for unused PTO upon termination. Consider the financial sustainability of offering unlimited PTO, including employee benefits and compensation costs. Budgeting and forecasting will help you determine the feasibility of this policy within your financial constraints.

    Company Culture And Employee Buy-In

    Consider your company culture and whether it aligns with the principles of unlimited PTO. Assess employee attitudes and preferences regarding work-life balance. Engage in conversations with your team to gauge their expectations and ensure the policy resonates with their needs. A supportive and flexible culture will foster trust and loyalty among employees, leading to increased satisfaction and productivity.

    Don’t Make This Decision On Your Own, Partner With GMS

    While the decision to offer unlimited PTO can be complex for small businesses, it’s important to remember that you don’t have to navigate this journey alone. Partnering with a professional employer organization (PEO) like GMS can be a game-changer. We provide business owners with expertise and support in implementing and managing employee benefits, including unlimited PTO. In addition, we assist with establishing policies, ensuring compliance with legal requirements, and providing robust tracking systems.

    With a PEO, you can leverage our resources, experience, and knowledge to navigate the challenges associated with unlimited PTO, enabling you to focus on your core business objectives. Embrace the opportunity to work hand-in-hand with GMS and unlock the true potential of your business. Contact us today to learn more.

  • It’s time to enter a captivating journey into the world of pet insurance, where wagging tails, fuzzy cuddles, and heart-melting purrs meet the security of comprehensive coverage. When it comes to our pets’ health, no pet owner wants to compromise on the quality of care. However, veterinary costs can quickly escalate, especially in the case of emergencies, surgeries, or chronic illnesses. This is where pet insurance steps in. As a vital resource, pet insurance can alleviate financial burdens and ensure employees can provide their furry friends with necessary medical attention without hesitation.  

    When employers offer access to pet insurance, they’re extending a helpful hand to their employees, providing them with peace of mind. Employees no longer need to worry about outrageous bills derailing their financial stability or making difficult decisions based on their budget. Instead, they can focus on what matters – ensuring their pets receive the care they need to lead happy and healthy lives.  

    Pet Insurance Basics

    Pet insurance is a health plan the owner pays monthly or annually in exchange for reimbursement of eligible veterinary expenses. When a vet sees a pet for a covered condition, the owner pays the vet in full and then submits a claim to their insurance company for reimbursement. Most pet insurance plans are for dogs and cats, but a few pet insurers offer coverage for other animals.

    The following is what is commonly covered by pet insurance:

    • Accidents and injuries such as broken bones and ACL ruptures
    • Behavioral therapy
    • Chronic illnesses such as allergies, digestive problems, and skin conditions
    • Common illnesses such as ear infections, vomiting, and urinary tract infections
    • Hereditary conditions
    • Prescription medications
    • Procedures
    • Serious illnesses such as cancer and diabetes
    • Testing and diagnostics
    • Wellness procedures

    Ultimately, pet insurance acts as a safety net, shielding pet owners from the financial strain that comes with unexpected veterinary expenses. As costs increase for everything from grooming to veterinary care, 47% of pet parents report having had some kind of pet-related debt. With the rising costs of advanced medical treatments, surgeries, and medications, pet insurance provides invaluable peace of mind.

    Financial Security In The Face Of Uncertainty

    When it comes to our pet’s health, no expense should be spared. However, unforeseen accidents or illnesses happen and can send us spiraling into uncertainty. The thought of outrageous vet bills can cause sleepless nights and unimaginable stress. That’s where pet insurance becomes your support system, offering a lifeline of financial security in the face of uncertainty.

    By providing a safety net for our furry companions, pet insurance ensures that no matter what unexpected twists and turns life may bring, we can focus on giving our pets the care they need without worrying about the financial strain. Having quality pet insurance can empower us to face any medical challenge that comes our way by knowing that our pets’ health and financial stability remain intact.

    The Benefits Of Offering Pet Insurance

    In the ever-evolving landscape of employee benefits, pet insurance has emerged as a game-changer in attracting and retaining top talent. As employers strive to create a workplace environment that values the well-being and happiness of their employees, pet insurance stands out as a compelling benefit with undeniable perks.

    By offering pet insurance as part of a comprehensive benefits package, employers demonstrate a deep understanding of the profound bond between humans and their pets, fostering a culture of compassion and empathy. This goes beyond the surface-level perks – it signifies a commitment to supporting employees’ personal lives and acknowledges the significant role that pets play in their overall well-being. By embracing pet insurance, employers not only enhance employee morale but also attract talent, reduce turnover rates, and create a workplace where employees feel valued and cared for. In the competitive job market, where the battle for top talent is fierce, offering pet insurance is not just an added benefit, but it’s a strategic move that elevates the employer brand, cultivates loyalty, and builds a vibrant and inclusive workplace community.

    Get Started Today

    Pet insurance sounds like a win-win, right? It is! And we’ve got the solution you’re looking for. As a professional employer organization (PEO), we offer various ancillary benefit options, including pet insurance. Through our partnership with MetLife Pet Insurance, we now provide robust annual benefits options, chronic care coverage, and no lifetime or per-incident limits for pets of all ages. You can customize your deductible and reimbursement rates to work best for your pet’s needs and your budget. In addition, we have our Total Pet Plan pet benefits, which is a discount program where you can save on Rx for your pet, receive discounts at participating vets, in-house medical services, telehealth service for your pet, and lost pet recovery service.

    Denise O’Dear, GMS’ Benefits Account Manager, added, “Let’s face it, our pets are part of the family! MetLife offers affordable insurance for your pets. With lots of options, you can choose a plan that best fits your financial needs. Help your employees ease the financial stress that comes with paying for their pet’s covered veterinary care, so they can stay engaged and focused at work.”

    Health care for animals can be expensive, but pet insurance can help you cover those expenses and give your pet the care you want, and they deserve. Pet insurance is just the beginning of our supplemental health care coverage options. Interested in learning more about our health care coverage? Contact us today.

  • In recent years, the growing concern about obesity and its impact on public health has increased the demand for effective weight loss solutions. Thanks to fast results and popularity among celebrities, there’s been a significant increase in the demand for glucagon-like peptide-1 (GLP-1 drugs), such as Ozempic and Wegovy, as a resource to help people shed weight. GLP-1 drugs represent a class of medications used to treat type II diabetes mellitus and, in some cases, obesity. However, drugs such as Ozempic cost more than $1,000 per month.

    As the prevalence of obesity continues to rise, employers are now facing a new decision – whether to cover expensive weight loss drugs as part of their employee health benefits package. This decision carries significant implications for employers and their workforce and requires careful consideration of various factors. Continue reading to explore the reasons behind this emerging dilemma and delve into the potential benefits and challenges of covering expensive weight loss drugs.

    The Rising Need For Weight Loss Solutions 

    Obesity has become a global epidemic, affecting millions of individuals worldwide. Obesity currently affects four out of 10 Americans. The associated health risks, including diabetes, heart disease, and certain types of cancer, pose a significant burden on individuals and society at large. Recognizing the impact of obesity on productivity, health care costs, and overall well-being, employers are seeking proactive measures to support their employees in their weight loss journeys.

    The Promise Of Weight Loss Drugs

    Weight loss drugs, when used in conjunction with lifestyle modifications, have shown promising results in helping individuals achieve and maintain a healthier weight. These medications, typically prescribed for individuals with obesity-related health conditions, can enhance the effectiveness of diet and exercise regimens and address underlying metabolic issues that may hinder weight loss progress. However, many drugs come with a high price tag, making them inaccessible to individuals without insurance coverage or facing significant out-of-pocket expenses.

    Employer Considerations 

    When deciding whether to cover expensive weight loss drugs, employers must carefully evaluate the potential benefits and challenges. On one hand, providing coverage for these medications can demonstrate a commitment to employee well-being, improve health outcomes, and boost productivity by reducing absenteeism and health care costs. On the other hand, cost considerations, the lack of conclusive long-term data on drug efficacy, and the potential for misuse or abuse may give employers pause.

    Long-term efficacy and safety 

    While initial clinical trials may show promising results, the true impact on weight loss maintenance and overall health remains the subject of ongoing research. Employers must carefully review available scientific evidence, consult medical experts, and consider the potential risks and benefits of covering these drugs. Close monitoring, periodic reassessment, and an emphasis on comprehensive lifestyle interventions can help ensure responsible and effective use.

    Addressing potential misuse and abuse

    The coverage of weight loss drugs also raises concerns about potential misuse or abuse. Employers must establish clear guidelines and safeguards to prevent inappropriate use and promote responsible medication usage. By implementing specific eligibility criteria, requiring ongoing medical supervision, and fostering a culture of education and support, employers can mitigate these risks and minimize the potential benefits for their employees.

    Navigating Cost Considerations

    Cost is a primary concern for employers when evaluating coverage for weight loss drugs. While these medications can be a valuable tool in the fight against obesity, their high prices can stain budgets and impact insurance premiums. Employers must weigh the potential cost savings resulting from improved employee health against the financial implications of covering expensive medications. Collaborating with insurance providers, negotiating drug prices, and implementing cost-sharing strategies can help strike a balance that benefits employers and employees.

    An Alternative Solution You Might Not Know About

    At the end of the day, the well-being and satisfaction of your employees are crucial to the success of your business. While it may not be the best option to offer a benefit that strains your budget, there is a solution that can provide immense value and help fight obesity in the workplace. As a professional employer organization (PEO), we understand the importance of competitive benefits options.

    Through our partnership with OneDrop for diabetic management and Activate Metabolics for metabolic wellness, we can offer you a comprehensive program that addresses the specific health needs of your employees. By providing a diabetic management program, you’re equipping your team members who battle Diabetes, Prediabetes, High Cholesterol, and High Blood Pressure with the tools and support they need to transform their lives.

    Not only will they have access to valuable resources and online health data tracking, but they will also receive personalized health coaching from specialists. Our metabolic wellness program, in collaboration with Activate Metabolics, will enable your employees to achieve effective and science-based weight loss results.

    At GMS, our goal is to empower your business and ensure the happiness and well-being of your employees. Contact us today to learn how to use these valuable resources and services. Together, we can foster a healthier and more prosperous work environment.

  • Calling all Georgia employees! Senate Bill 129 is here to revolutionize your work-life balance. Beginning July 1st, 2023, Georgia employees can take time off to vote in primaries and elections. This bill allows employees to take two hours off on election day or any designated day for early in-person voting.

    Now, you might be wondering about the logistics of this bill. Will you be compensated for this time off? The answer lies with your employer, as they have the discretion to decide whether the voting time off is paid or not. Employees must provide reasonable notice to their employer about their intention to take time off for voting.

    Sick Leave Updates

    Alongside the voting provisions, the Georgia legislature recently voted to repeal the sunset provision relating to the use of sick leave for the care of immediate family members. This change went into effect on May 1st, 2023, and aims to strengthen the support system for your loved ones.

    So, who exactly is considered immediate family? Immediate family members include the following:

    • Spouse
    • Children
    • Parents
    • Grandparents
    • Grandchildren
    • Dependents 

    This update builds upon the limited sick leave law enacted in 2017, taking it to the next level. If your private-sector employer provides paid sick leave, you can use up to five days of that leave to care for your immediate family. However, it’s essential to note that employers are not obligated to offer sick leave or permit more than five days of earned sick leave per calendar year for immediate family care.

    Partner With Us

    A professional employer organization (PEO) like GMS can play a significant role in assisting businesses and employees in navigating the changes brought about by Senate Bill 129. Our experts help you stay updated with the latest employment laws and regulations, including voting and sick leave policies. We provide expert guidance on complying with the new legislation, ensuring that employers understand their obligations and that employees know their rights. Ultimately, we bring expertise, resources, and tailored solutions to ensure that employers and employees can benefit from the changes and implement them seamlessly and competently. Contact us today to learn how we can make your business simpler, safer, and stronger.

  • California legislators are at it again! Education has long been the key to personal growth and professional success. However, the soaring costs of higher education often pose a significant hurdle for individuals and employers. Recognizing the importance of fostering a skilled workforce and promoting lifelong learning, California has put forth a new bill that could revolutionize the landscape of employer-sponsored education benefits.

    The proposed legislation, AB 509, aims to grant employee tax deductions for tuition benefits, paving the way for a more prosperous and educated workforce. It would allow employees to deduct up to $5,250 from their state income taxes for educational assistance provided by their employers. The tax deduction would apply to any payment made by an employer on or after January 1st, 2024, and before January 1st, 2026, for a qualified education loan incurred by the employee for their continued education.

    Qualified education loans include all federal student loans and many private student loans. It’s a loan you took out solely to pay qualified higher education expenses that were:

    • For you, your spouse, or a person who was your dependent when you took out the loan 
    • For education provided during an academic period for an eligible student 
    • Pair or incurred within a reasonable period of time before or after you took out the loan 

    This bill would be beneficial for both the employer and employees. Let’s take a deeper look into what that means. 

    Affordability Breeds A Learning Culture

    California, known for its vibrant economy and diverse industries, has always been at the forefront of innovation. However, the rising education costs have become a significant barrier to entry for many individuals seeking to upskill or pursue advanced degrees. By granting employee tax deductions for tuition benefits, this bill aims to make education more accessible and affordable, encouraging a culture of continuous learning. Employees will now have the chance to further their education without the burden of tuition expenses, ultimately leading to a more knowledgeable and competitive workforce.

    Empowering Employees For Career Advancement 

    In today’s rapidly evolving job market, where skills become obsolete in the blink of an eye, professional growth and development are paramount. The proposed tax deduction for tuition benefits will empower employees to:

    • Pursue higher education
    • Acquire new skills
    • Expand their knowledge base 

    This, in turn, will enable them to enhance their job performance, qualify for promotions, and unlock new career opportunities. With a well-educated and skilled workforce, California can bolster its position as a global leader across industries such as technology, health care, manufacturing, entertainment, construction, and more.

    Enhanced Talent Acquisition And Retention

    The bill’s impact on talent acquisition is significant. Prospective employees are increasingly drawn to organizations that prioritize growth opportunities. With the promise of tax deductions for educational pursuits, companies become more appealing to top-tier talent. By fostering a culture of continuous learning and development, employers are creating a loyal and highly competent workforce that drives long-term success.

    A Win-Win Situation For The Economy 

    The benefits of the proposed bill extend beyond individuals and businesses – it has the potential to spur economic growth. A well-educated workforce is the foundation of a prosperous economy, driving innovation, entrepreneurship, and productivity. California business owners can create a highly skilled workforce by making education more affordable and incentivizing employer investment, increasing business attraction, entrepreneurship, and sustainable economic growth.

    How A PEO Can Help 

    While we wait to hear if this bill passes, have you considered partnering with a professional employer organization (PEO)? A PEO can play a vital role in supporting the implementation of the California bill granting tax deductions for tuition benefits. Here’s how a PEO like GMS can help:

    • Expert guidance: Our experts at GMS specialize in managing various aspects of human resources, including employee benefits. We provide guidance on designing and implementing a tuition assistance program that aligns with the requirements of this bill. We take on administrative tasks for managing tuition benefits, such as program communication, enrollment, tracking, and reporting.
    • Compliance and legal support: Navigating the complex landscape of employment laws and regulations can be challenging, especially when introducing new benefits programs. We help business owners stay up to date with employment laws and can provide compliance support to ensure that tuition assistance programs align with the requirements of the California bill. Our experts offer help in navigating tax implications, eligibility criteria, documentation, and reporting requirements. This ultimately minimizes the risk of non-compliance and potential penalties.
    • Enhanced employee engagement and retention: Offering tuition reimbursement benefits demonstrates a company’s commitment to employee development and growth. This can significantly boost employee engagement, job satisfaction, and loyalty, increasing retention rates. Partnering with GMS provides you with assistance to effectively communicate the value of tuition assistance programs to employees, promoting awareness and utilization of these benefits. This, in turn, contributes to a skilled and motivated workforce that drives success within your business.

    If you’re not convinced yet, contact our HR experts today to see how else we can bring value to your business.

  • The Internal Revenue Service (IRS) has responded to rising inflation by raising the contribution limits for health savings accounts (HSA). An HSA is a savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. Starting in 2024, individuals can allocate more funds towards their HSAs, offering a powerful way to save for medical expenses.

    What To Expect In 2024

    In 2024, the annual HSA contribution limit for self-only coverage will surge to $4,150, representing a remarkable seven percent increase from 2023. This means you can set aside even more money on a pre-tax basis, significantly boosting your health care savings potential. But that’s not all; for those with family coverage, the HSA contribution limit is increasing to $8,300 in 2024, a substantial rise from the previous limit of $7,750. This adjustment allows families to allocate more funds towards their health care expenses, ensuring comprehensive coverage and financial peace of mind. Additionally, individuals aged 55 and older can take advantage of being able to contribute an extra $1,000 to their HSAs.

    High-deductible health plans (HDHPs) are also subject to updates in 2024, ensuring a balance between affordability and comprehensive coverage. An HDHP is a plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but you pay more health care costs yourself before the insurance company starts to pay its share (your deductible). In 2024, HDHPs must have a minimum deductible of $1,600 for self-only coverage and $3,200 for family coverage. The annual out-of-pocket expense maximum cannot exceed $8,050 for self-only coverage in 2024 or $16,100 for family coverage, representing significant increases.

    What Employers Should Know

    Apart from individual benefits, the IRS has introduced updates that benefit employers as well. The IRS announced that in 2024, it will also raise the maximum amount employers may contribute to an excepted-benefit health reimbursement arrangement (HRA) to $2,100. An HRA is an account an employer can set up to reimburse employees for out-of-pocket health care expenses. This means you can provide your employees with even more financial support for their out-of-pocket health care costs. Show your team you care by offering enhanced benefits that truly make a difference.

    Boost Your Benefits For Your Team

    As we recognize the IRS’s boosts to HSA and HDHP limits in 2024, it’s important to remember that navigating these changes can be complex. As a business owner that has made it through unprecedented times, such as the COVID-19 pandemic and the intense labor market, you understand how important it is to stay ahead of the curve. This is where a professional employer organization (PEO) like GMS enters the picture to become a small business owner’s best friend.

    When you partner with GMS, you gain access to our comprehensive group health coverage plan that ensures compliance with the latest regulations and provides cost-effective solutions tailored to your unique needs. GMS represents more than 45,000 employees, which allows us to help small businesses purchase group health insurance for an average of a 24% lower cost for employee premiums and 21% lower for family premiums than the U.S. average.

    Allow us to guide you through these transformative times, empowering you to focus on what you do best – growing your business while securing the well-being of your employees. With GMS by your side, you can confidently embrace the future of health care and thrive in an ever-changing business landscape. Interested in learning more? Contact us today.

  • Humana, one of the largest health insurance companies in the U.S., announced it will be phasing out its employer group business over the next 18 to 24 months. The move is part of the company’s broader strategy to focus on Medicare and Medicaid health plans.

    For many years, Humana has offered employer-group plans, which are health insurance plans that employers provide to their employees. These plans have been a relatively small part of Humana’s overall portfolio, and the company has struggled to grow its employer group business in recent years.

    At the same time, Humana has seen significant growth in its Medicare and Medicaid businesses. Medicare is a federal health insurance program that provides coverage to individuals 65 years of age or older and includes those with specific disabilities. Medicaid is a joint federal and state program that provides health coverage to eligible individuals, including low-income adults, children, pregnant women, elderly adults, and those with disabilities.

    Why Now?

    The decision to phase out its employer group business is a strategic move to focus on growing Medicare and Medicaid markets. Humana believes it can better serve these markets by dedicating more resources and attention to them. This decision is part of a broader trend in the health insurance industry. Many health insurers are shifting their focus away from employer group plans and toward Medicare and Medicaid plans. Medicare and Medicaid markets are growing, mainly due to the aging population and an increasing number of low-income individuals. These trends are expected to continue in the coming years, meaning the demand for Medicare and Medicaid plans will likely continue to grow.

    Fear No More!

    As Humana phases out its employer-group business, businesses that relied on them for their group health plan must find alternative options. Have you ever heard of a professional employer organization (PEO)? Working with a PEO such as GMS might be the solution you’re looking for. At GMS, we change the health insurance approach by increasing affordable options and give your employees access to small business health insurance. We give businesses the buying power of large corporations, so in turn, we’re able to offer:

    • Financial security 
    • Flexible benefit options
    • An unprecedented customer service experience 

    We’re the only PEO that provides an in-house master health plan that helps YOU avoid large swings in usage, trends, and renewal rates. At GMS, we understand that no “one-size-fits-all” group health insurance plan exists. That’s exactly why we quote various major insurance carriers so we can provide multiple health coverage options for your business. GMS’ experts are here to help you every step of the way. Let’s get ahead of your competition and get your employees the health coverage they need TODAY. Contact us now to get started.

  • In today’s world, financial wellness has become a growing concern for employees. A survey showed that 59% of employees said financial matters are the most significant source of stress in their lives. As a result, employers are now trying to help their employees achieve financial wellness.

    Business owners can help their employees achieve financial wellness by leveraging the Secure 2.0 Act. This Act was signed into law in late 2022 and developed dozens of new retirement-related provisions. It addresses additional issues related to retirement and savings that were not part of the original Secure Act of 2019. The Secure 2.0 Act creates new flexibility and accessibility to help individuals plan for a more secure future.

    The Benefits Of Leveraging Secure 2.0 

    By using the Secure 2.0 Act, employers can offer their employees access to financial advisors who can help them with everything from creating a budget to investing in their retirement accounts. Consider the following benefits of the Act:

    1. Offering financial planning and advice services

    One of the critical ways Secure 2.0 can help improve employee financial wellness is by offering financial planning and advice services. These services can help employees make better financial decisions by giving them the information they need to make informed decisions.

         2. Encouraging savings

    Secure 2.0 helps improve employee financial wellness by encouraging savings. The platform can help employees set up automatic contributions to their retirement accounts and provide tools and resources to help them save for other financial goals.

         3. Provides debt management resource

    Debt is one of the biggest barriers to achieving financial wellness. With Secure 2.0, employers can offer their employees resources to help them manage their debt. This can include debt counseling services, debt consolidation options, and debt management tools.

         4. Educating employees on financial wellness

    Finally, Secure 2.0 also educates employees on the importance of financial wellness. Employers can offer financial wellness workshops and webinars covering various topics, from budgeting to investing.

    Why It Matters

    The Secure 2.0 Act can be a valuable tool for employers looking to improve their employees’ financial wellness. If you’re a small business owner looking to help your employees save more, you’ve come to the right place. While Secure 2.0 is an excellent resource, partnering with a professional employer organization (PEO) such as GMS is another excellent option.

    Offering a retirement plan to your employees helps you with the following:

    • Recruit more qualified employees 
    • Offers you additional opportunities for tax savings
    • Retain valuable employees

    However, retirement plans come with a lot of complexity and risk. Fortunately, GMS helps cut costs, reduce stress, save time, and offer the benefits your employees need. GMS is here to provide guidance on the best plan for your employees. At GMS, we offer our clients a profit-sharing 401(k) plan. This gives small business owners flexibility in how much they contribute to their employees’ 401(k) accounts. By implementing a profit-sharing plan, you show your employees that they’re critical to your company’s success by rewarding them for their hard work. Contact us today to learn more.

  • As well all know, employee benefits and perks play a significant role in job satisfaction and can often be the deciding factor when choosing between job offers. In recent years, companies have offered various employee perks and benefits to attract and retain top talent. However, as the economy experiences its ups and downs, have you ever heard of a perk-cession? As a business owner, should you be worried about a perk-cession? In this blog, we’ll explore the potential impact of an economic downturn on employee benefits and what workers can do to ensure they’re prepared for any changes that may come their way.

    What Is A Perk-Cession?

    A perk-cession refers to the trend of employers scaling back on workplace perks and benefits. Business owners have begun realizing that they may have adopted the idea of offering additional perks too quickly, as employees nowadays are becoming more interested in perks that can improve their overall quality of life and work experience. You may be wondering what specific perks are being scaled back. Think about the perks outside of your traditional benefits, which can include the following:

    • Gym membership reimbursements 
    • Social events
    • Company outings
    • Catered meals
    • Retreats
    • Conferences
    • Home office stipends

    Why Is This Happening Now? 

    While the trend of offering additional perks to employees has been on the rise for several years, the perk-cession is said to be caused by various factors. The COVID-19 pandemic has significantly impacted the economy, leading many companies to reassess their budgets and expenses. In the wake of the pandemic, businesses have had to begin implementing cost-cutting measures, and employee perks and benefits have been among the first to go. On top of that, the job market has become increasingly competitive, with companies struggling to find and retain top talent. This forces businesses to offer additional perks and benefits to lure in employees. However, as the job market becomes more crowded, companies may be scaling back on perks, as they can no longer afford to offer them to every employee. Ultimately, the trend of providing additional employee perks and benefits has reached its peak, and companies have realized it’s no longer sustainable.

    To cut costs, Google began cutting back on employee perks such as fitness classes and office equipment. Meta announced their plan to cut an additional 10,000 employees and ended free laundry and dry cleaning services for their employees. This is only the beginning of yet another period of unprecedented times for the workforce.

    How You Can Respond To The Perk-Cession

    During these challenging times that require significant decisions that will impact your business, it’s critical that you consider your employees as they’re your biggest asset. To ensure your employees are aware of what’s happening, consider taking the following steps:

    • Communicate openly and transparently: You must be open and transparent with your employees about the company’s challenges and the measures being taken. Regular communication through company-wide emails, town hall meetings, or one-on-one discussions can help build trust and maintain employee morale.
    • Solicit feedback and act on it: Employers should solicit feedback from their employees on what benefits and perks they value the most and use the information to make informed decisions about their benefits packages. This ultimately helps ensure that your company provides the benefits that matter most to employees. It can also aid in deciding whether to eliminate a perk or benefit.
    • Focus on non-monetary perks: Consider focusing on low-cost perks that are still valuable to your employees. For example, offering flexible working hours, training and development opportunities, or recognition programs can help to maintain employee engagement and loyalty.
    • Be creative: As a business owner, get creative with the perks you offer to make up for the cuts in other areas. Have your leaders/managers help. Perhaps instead of providing free lunches throughout the week, you could offer a monthly team-building event or a fun office challenge.

    Consider Partnering With A PEO

    As businesses navigate the uncertain economic landscape brought about by the COVID-19 pandemic, attracting and retaining top talent has never been more crucial. However, the perk-cession may leave some businesses struggling to provide competitive employee benefits and perks. That’s where a professional employer organization (PEO) such as GMS comes into play. When you partner with a PEO, businesses can offer their employees a wide range of benefits, from health care and retirement plans to wellness programs and employee assistance programs, at a fraction of the cost of managing these programs in-house. With a PEO’s support, businesses can still attract and retain top talent, even during tough economic times. Do you want to offer your employees the resources they need to thrive in and out of the workplace and stand out from your competition? Contact the HR experts at GMS, who are ready to help you.

  • In recent years, small and mid-sized businesses have been offering employee benefits at record levels. This is a recent change, as in the past, many small businesses struggled to compete with larger companies in terms of the benefits they could offer their employees. However, in today’s economy, during unprecedented times with inflation and the Great Resignation, small and mid-sized businesses can now offer better benefits packages to their employees.

    The Job Market

    Let’s start by understanding what the job market looks like in today’s economy. The job market has become increasingly competitive in recent years. With unemployment rates at record lows and growing demand for skilled workers, businesses of all sizes must work harder to attract and retain top talent. Offering a competitive benefits package is one way small businesses can differentiate themselves from their competitors and attract the talent they want and need. Research shows that 73% of employees would be encouraged to stay with their current employer longer if given access to more benefits options.

    The Affordable Care Act (ACA)

    The Affordable Care Act (ACA) has also made it easier and more affordable for small businesses to offer health insurance to their employees. The ACA is a comprehensive health care reform law enacted in 2010. The law has three primary goals, which include the following:

    • Make affordable health insurance available to more individuals 
    • Expand the Medicaid program to cover all adults with income below 138% of the federal poverty level (FPL)
    • Support innovative medical care delivery methods designed to lower the costs of health care generally 

    Before the ACA, many small businesses struggled to provide health insurance to their employees due to the high costs involved. However, the ACA introduced a range of tax credits and subsidies for small businesses, which has made it easier for them to offer health insurance to their employees. This has been a game-changer for many small businesses, allowing them to provide better benefits packages without breaking the bank.

    Offering Benefits Is Important!

    There has been a growing awareness among business owners about the importance of employee well-being. Many employers now understand that happy, healthy employees are more productive and engaged. As a result, businesses have begun investing in employee benefits programs that promote health and wellness, such as gym membership reimbursements, mental health counseling, and wellness programs. These programs not only improve employee morale but also help to reduce health care costs for the business in the long run.

    The COVID-19 pandemic also highlighted the importance of employee benefits. Many businesses have had to adapt to remote work and make significant changes to their operations to keep their employees safe. In this new landscape of work, employee benefits such as paid time off (PTO), sick leave, and flexible working arrangements have become essential. Employers who have been able to provide these benefits have been able to maintain high levels of employee engagement and productivity during challenging times.

    GMS Is Here To Help You Thrive

    As businesses continue to recognize the importance of investing in their employees, we can expect to see even more innovative and comprehensive employee benefits programs in the future. Providing benefits not only helps attract and retain top talent but also contributes to a positive work culture and can boost productivity and morale. Benefits such as health insurance, retirement plans, and paid time off can make a significant difference in the lives of employees and their families, leading to increased job satisfaction and loyalty. While offering benefits may require an investment of time and resources, the long-term benefits for your business and employees make it a smart and necessary decision. As small businesses begin offering employee benefits at record levels, it’s time to make a change. Partner with a professional employer organization (PEO), such as GMS, who will provide you with a competitive benefits package. GMS changes the approach to increase affordable options and give your employees access to small business health insurance. We give small businesses the buying power of a larger corporation. In turn, we’re able to offer the following:

    • Financial security 
    • Flexible benefit options
    • Unprecedented customer service experience 

    GMS’ Benefits Account Manager Becky Fink said it best, “When employers offer benefits, they see greater employee retention. GMS enables clients to offer their employees a wide selection of benefit options. Our benefits experts help clients manage enrollment, payroll deductions, and renewals, so offering employee benefits is a breeze.”

    Get a quote from us today to gain a competitive edge in today’s labor market.