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  • We’ve heard it all. From quiet quitting to quiet firing, there are plenty of new buzzwords that business owners should familiarize themselves with. In the realm of talent acquisition, a new approach known as “quiet hiring” has been generating significant buzz and reshaping traditional recruitment practices. Quiet hiring challenges conventional sourcing and selecting candidates, offering a fresh perspective on how organizations can attract top talent.

    What Is Quiet Hiring?

    Quiet hiring is the idea that a business can add new skills and fill gaps without hiring new full-time employees. It can come in two different forms: internal and external. Depending on the situation, it can involve internally restructuring teams by reskilling existing employees or externally hiring short-term contractors to meet specific needs, resulting in increased workforce flexibility and retention.

    Internal Vs. External Quiet Hiring

    Internal quiet hiring is when current employees temporarily move to another role or take on different organizational assignments. The hiring process is long, with an average of 24 days from the first interview to hire, causing stress not only on you but also on your team, who may be juggling many responsibilities at once. Internal quiet hiring allows you to restructure your team by reskilling and upskilling your existing employees while avoiding costly and frustrating hiring processes.

    Simultaneously, internal quiet hiring is an excellent way to invest in your staff. By training current employees, you assist their professional development, making them more marketable in an ever-competitive workforce. But don’t let this deter you; it doesn’t mean your employees will leave your business. In fact, data shows that employees who feel invested in are more engaged, report hiring job satisfaction, and are 34% more likely to stay with their employer.

    External quiet hiring, on the other hand, is the process of hiring short-term contractors to keep the business running without hiring more full-time employees. This involves proactively vetting well-established contractors, freelancers, or other talent who can fill in whenever necessary.

    Benefits Of Quiet Hiring

    While quiet hiring has existed for some time, it’s become increasingly popular since the COVID-19 pandemic in 2020. Because of the competitive job market and labor shortage across industries, quiet hiring could be the right solution for you to ensure workplace efficiency without causing financial strain. The following are potential benefits of implementing quiet hiring within your business:

    • Provides employees with a reason to care more about their job
    • Equips workers with professional development opportunities 
    • Promotes collaboration and cross-functional teams 
    • Assists with succession planning
    • Establishes a continuous learning culture 
    • Makes companies more agile and ready to take on change 
    • Saves resources by not spending money on training and onboarding new staff 

    In addition, quiet hiring impacts the job market by cutting down on job eliminations. Instead of letting employees go because their job is no longer cost-effective, companies can retrain and move them elsewhere to make an impact.

    Potential Risks And Drawbacks

    One of the most significant risks of quiet hiring is the potential knowledge gap if employees were to leave. The departure of a team member handling niche or multiple responsibilities within your business could lead to the loss of crucial organizational and job-specific information. Thus, you and your team must create detailed process documentation.

    Process documentation refers to recording and detailing the step-by-step procedures, methods, and workflows involved in various organizational tasks, activities, or processes. It’s a comprehensive reference allowing individuals to follow consistent and standardized practices. Through implementing procedural documentation, you can avoid this risk altogether.

    Additionally, while quiet hiring can provide internal opportunities, there is a risk this process could overload a single employee instead of filling needed roles. Giving employees more work can often lead to burnout. Employees who experience burnout are more likely to have lower morale (36% of individuals), be less engaged (30%), make more mistakes (27%), and miscommunicate (25%). It’s a never-ending cycle that could hurt your business in the long run.

    Implementing Quiet Hiring

    Quiet hiring has many benefits, such as saving you time and resources spent elsewhere. But it’s not a strategy to implement without careful thought and planning. By implementing an internal mobility program, you can create structured processes that facilitate job shadowing and swapping. This will enable your team to gain insights into different positions before making a commitment.

    Whether or not you implement a mobility program, be sure you’re communicating with your team effectively. Be transparent about your quiet hiring initiatives and frame it as an opportunity your staff can take advantage of. Unilateral decisions, passing out new assignments, or moving team members across departments without clear communication are surefire ways to create resentment and employee dissatisfaction.

    Equally as important, when you ask employees to take on more or different responsibilities from their initial hire, you must reevaluate their compensation packages. This proactive approach will assist in retention efforts during moments of transition.

    In summary: 

    • Have a clear plan
    • Implement training programs
    • Create a detailed procedural document
    • Be transparent with your team
    • Understand your compensation commitments 

    Allow GMS To Help With Your Decision

    Should you choose to implement quiet hiring within your business, it’s essential you relay the message in a way that makes your employees feel valued. You don’t want them to think they’re interchangeable or not good enough for the job, but instead, you want them in a position where they can utilize their skills more effectively and have a more substantial impact.

    That’s where partnering with a professional employer organization (PEO), like GMS, can benefit you. We can help implement career development and leadership programs so you can train employees to take on more responsibilities in a scenario such as quiet hiring. Plus, through a job market analysis, we’ll help you ensure your compensating employees an appropriate amount.

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

    Contact us today to learn more.

  • Ensuring strict adherence to HR laws and regulations is a non-negotiable for small business owners; however, many employers find this process daunting. HR compliance is a complex and ever-evolving process that varies from state and city levels. Additionally, the rise of remote work expands many businesses’ geographical reach, resulting in more intricate multi-state compliance needs. Moreover, since laws and regulations are subject to change, you, as a business owner, must remain continuously vigilant to stay compliant.

    Navigating these intricacies is often an overwhelming and frustrating feat. It can be particularly challenging for small businesses and startups that often rely on limited staff and delegate HR to individuals who are unfamiliar with its complexities. Nevertheless, failing to adhere to the laws and regulations can lead to substantial financial and reputational repercussions. While there is no one-size-fits-all approach to avoiding non-compliance penalties, there are a few common areas businesses tend to struggle with.

    What Is HR Compliance? 

    HR compliance aligns your company’s policies and procedures with a network of federal laws, such as the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA), combined with state and local labor laws. These laws outline the obligations and responsibilities you must uphold as an employer. HR compliance encompasses various aspects, including hiring, worker classification, data privacy, and security.

    Failure to adhere to or purposefully neglecting HR compliance can lead to severe consequences for your business. Substantial financial penalties, not to mention time and resources spent on legal fees, will be lost. Beyond financial implications, the reputational impact on your business can be detrimental and lead to an extensive loss in revenue.

    In other words, following HR regulations isn’t just a legal obligation but a safeguard for you, your business, and your employees. It ensures proper measures are in place to avoid legal troubles, financial setbacks, and reputational harm.

    Common HR Compliance Pitfalls

    Although HR compliance varies based on location, company size, and industry, there are a few more universal areas companies tend to struggle with, including:

    Hiring practices

    The laws enforced by the Equal Employment Opportunity Commission prohibit discrimination across all facets of employment. As an employer, ensuring your hiring staff is well-informed about crafting inclusive job postings and understanding the permissible and impermissible questions during the hiring process is crucial. Severe penalties, including lawsuits and fines, can be levied against businesses that discriminate based on factors such as race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age, disability, or genetic information. Adhering to these regulations is not only the law but essential to foster a fair and diverse workplace.

    Pay inequity

    Performing regular salary audits is necessary to guarantee pay equity for employees. Many states, including Ohio, California, Washington, Nevada, and Colorado, to name a few, have implemented legislation to prevent discriminatory pay practices. However, as businesses expand and internal changes occur, such as transfers and promotions, gender pay disparities can inadvertently emerge. Conducting systematic and consistent salary reviews helps identify and rectify gaps, ensuring a fair, equitable, and compliant compensation structure within your organization.

    Health coverage

    The Affordable Care Act’s Employer Shared Responsibility Provision mandates that businesses with 50 or more full-time employees provide affordable health insurance options to employees. This includes ensuring coverage for dependents up to age 26. Failure to meet this requirement can lead to penalties if employees receive premium tax credits through the Health Insurance Marketplace.

    Policies and procedures

    Another significant but easily avoidable challenge stems from outdated or nonexistent employee guidelines. While employees share the responsibility of adhering to laws and regulations, the liability falls on you, as a business leader, to provide comprehensive policies and procedures.

    Unclear guidelines can lead to misunderstandings and misinterpretations, potentially resulting in actions that breach HR regulations. Therefore, ensuring up-to-date and transparent employee guidelines reinforces adherence and minimizes the risk of legal and regulatory infringements.

    Training and orientation

    Additionally, implement a comprehensive onboarding process and offer continuous training for your employees. This is crucial to guarantee your team understands your company’s policies and procedures. Inadequate training can expose your business to vulnerabilities and potential lawsuits in the future.

    Employee misclassification

    Accurate employee classification is essential due to its direct influence on taxation. Distinct categories such as independent contractors, salaried workers, and hourly employees are subject to varying tax regulations. Incorrectly categorizing full-time or hourly employees as contractors deprives workers of their rightful compensation and protections. Even unintentional misclassification holds serious consequences, including substantial fines.

    Inaccurate payroll and tax payments

    Ensuring accurate and timely payment for your staff is an absolute necessity. Failing to do so exposes your business to wage claims that can have detrimental effects, impacting your financial stability and reputation. Additionally, to avoid audits and fines, it’s essential to file payroll taxes accurately.

    Workers’ compensation

    Workers’ compensation is an “exclusive remedy,” meaning that an employee injured on the job cannot sue their employer immediately following an incident. In the event of an on-the-job accident, it’s imperative that managers and staff report the incident and subsequently submit the necessary claims immediately to avoid potential lawsuits.

    Additionally, maintaining current knowledge about accident trends within your industry is paramount. By staying informed, you can proactively support your staff through safety programs and training initiatives, reducing the likelihood of injuries.

    Termination

    In numerous states across the United States, the concept of “at-will employment” reigns supreme. This legal principle grants employers the authority to terminate employees at their discretion, without needing a specific reason, as long as the termination does not violate any laws or regulations.

    However, it doesn’t mean that employees don’t have rights. There are still requirements you are responsible for as an employer. For example, many states, such as Alabama, Alaska, Arizona, California, and Delaware, recognize good faith and fair dealing, meaning you can’t fire an employee to avoid paying retirement benefits or a hefty commission. Additionally, this safeguards employees from being fired from a place of malice. Obeying local laws protects your business from wrongful termination lawsuits and helps create a trusting and respectful work environment.

    Data privacy and security

    As an employer, your employees trust you with their sensitive information. With the shift towards electronic storage of this information, implementing data security has become integral to safeguarding your employees’ data. By ensuring a strong security system, you fulfill your responsibility to protect sensitive information and mitigate the risks associated with unauthorized access and data breaches. In the unfortunate event of a breach, having a detailed action plan allows for a swift and organized response, helps minimize the potential damage, and swiftly rectifies the situation.

    Maintaining compliance is an ongoing and dynamic process that requires time, effort, and continuous refinement of internal policies and procedures. Regulatory landscapes rapidly evolve, and you need to adapt in order to ensure your business remains in line with legal requirements. Maintaining a robust system of regular internal reviews, policy updates, and staying up-to-date with any changes in laws and regulations are essential to protecting your business effectively.

    How GMS Can Help

    You’re an expert in your field but probably not an expert in human resources. Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Professional employer organizations (PEOs) such as GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability. Contact us today, and let us help take care of the administrative tasks so you can focus on the areas of your business you enjoy most!

  • The landscape of employment regulations can be tricky for employers and employees to navigate. In New Jersey, recent changes to the unemployment insurance law have left many employers wondering about their compliance obligations. Fortunately, the New Jersey Department of Labor (DOL) has released new guidance to help employers understand and adhere to the amended law’s requirements. Continue reading to understand what these changes mean for businesses in New Jersey.

    Delayed Rollout And Fair Enforcement

    One of the first aspects to note is that the New Jersey DOL recognizes employers’ challenges due to the delayed rollout of the amended law. In response, the agency has pledged to enforce the law fairly and equitably, considering the delayed guidance’s circumstances.

    A significant concern for employers was the lack of clear instructions on what information they must provide to the Division of Unemployment Insurance when an employee separates from their job. The department acknowledges this issue and clarifies that employers are not expected to provide this information until they receive specific instructions.

    Preparing For Compliance 

    The department actively provides clear directions to employers to address the informational gap. In addition, they’re developing an online form that will streamline the submission process for employers. While these developments are in progress, the department has already requested that all employers register with the online platform, Employer Access, and provide an email address to the Division. This measure ensures employers can communicate electronically, as required by the amended law.

    Employers must understand that the new law does not mandate immediate submission of the BC-10 form upon an employee’s separation from employment. Instead, the only information required to be provided immediately is when unemployment will begin. However, employees should note that they are not expected to provide this information until the department issues clear submission instructions.

    Enforcement Leniency

    The department has demonstrated a practical approach to enforcing the amended laws in a positive development for employers. They’ve indicated that they will not assess penalties against employers or block them from obtaining relief of benefit charges for failing to provide information immediately upon an employee’s separation. This leniency will apply while the department finalizes the submission directions and revises the necessary forms.

    Employers must continue to respond promptly to all requests from the Division for separation and wage information during this transitional period. While the amended law has shortened the appeal deadline from 10 days to seven days, the department is exercising discretion. They will accept appeals submitted within the previous 10-day limit until the transition from postal to electronic communication with employers is complete.

    Stay Updated By Partnering With A PEO

    In the ever-evolving landscape of employment regulations, it’s essential for employers to remain adaptable, proactive, and compliant. Keeping a close eye on updates from the DOL and seeking legal counsel when necessary will help businesses maintain a smooth transition to the amended unemployment insurance law.

    However, as a small business owner in New Jersey, adding another task to your plate is the last thing you want to do. Luckily, GMS, a professional employer organization (PEO), is here to lend a helping hand, navigating the intricacies of employment regulations. At GMS, we provide you and your business with the following:

    • Compliance expertise
    • Administrative relief
    • Tailored solutions
    • Cost savings
    • Risk mitigation
    • Employee support
    • Focus on growth
    • And so much more

    Ultimately, the constant change in employment regulations demands vigilance and expertise, which can be challenging for small business owners to manage independently. GMS, as a trusted PEO, offers a comprehensive solution that ensures compliance with the amended unemployment insurance law in New Jersey, streamlines your HR process, reduces costs, and allows you to focus on what you do best – growing your business. Contact us today to learn how we can help your New Jersey business thrive.

  • Change is on the horizon for labor standards in the United States. On August 30th, 2023, the U.S. Department of Labor (DOL) unveiled its intention to elevate the minimum salary level for the Fair Labor Standards Act (FLSA) “white collar” exemptions. This proposed rule could substantially impact millions of American workers, and its potential consequences are worth exploring.

    Raising The Bar

    The cornerstone of this proposed rule is a substantial increase in the minimum salary level. Currently set at $684 per week ($35,568 annually), the DOL aims to boost it to $1,059 per week ($55,068 annually). This adjustment reflects the evolving landscape of the American workforce and the increasing cost of living.

    Such a raise in the minimum salary level promises greater financial stability for workers. It aligns with inflation and acknowledges the need for fair compensation in an economy where many struggle to make ends meet. This change could represent a welcome shift towards better work-life balance and financial security for workers previously excluded from overtime pay due to the lower salary threshold.

    Elevating The HCE Benchmark

    The proposed rule doesn’t stop at raising the minimum salary level; it also seeks to elevate the salary requirement for highly compensated employees (HCEs). It’s currently set at $107,432; however, the new threshold would increase to $143,988 per year. This change aims to ensure that highly compensated individuals are fairly compensated for their work while still enjoying the benefits of exempt status.

    Equality Across Territories

    Another significant aspect of this proposed rule is the intention to standardize salary levels across all U.S. territories. This move would bring Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands (CNMI) in line with the federal minimum wage, providing a more equitable standard for workers nationwide. American Samoa, a unique part of the U.S., would see its special salary levels increased to $890 per week. This adjustment acknowledges the distinct economic conditions and cost of living in this territory.

    Keeping Up With Change: Automatic Updates Every Three Years

    One of the critical features of this proposed rule is its commitment to adapting to economic changes. The DOL intends to automatically update the standard salary level and the HCE total annual compensation threshold every three years to avoid stagnation. This approach aims to keep labor standards aligned with the evolving economy and cost of living.

    Empowering Businesses In An Evolving Labor Landscape

    In light of these changes to labor standards, businesses face a complex landscape where compliance and adaptability are paramount. This is where a professional employer organization (PEO) can help. PEOs like Group Management Services (GMS) bring a wealth of experience and expertise in navigating the intricate web of labor regulations, providing businesses with a strategic advantage.

    GMS serves as a dedicated partner in ensuring that your organization complies with the new salary requirements and optimizes your HR processes. By entrusting the intricacies of labor standards and compliance to GMS, your company can concentrate on its core operations, fostering growth and resilience amid evolving workforce dynamics. In times of change, aligning with a PEO can be the strategic method that propels your business toward success in a shifting employment landscape. Contact our HR experts today to learn more!

  • The employment landscape is constantly evolving in an era of digitalization and remote work. One significant change that has emerged recently is the option for qualified E-Verify users in good standing to verify Form I-9 remotely. While this may seem convenient for employers and employees, the road to compliance in this new territory is unclear. Legal experts urge caution and thoughtful consideration as businesses navigate the uncharted waters of remote I-9 verification.

    The Basics Of Remote I-9 Verification

    Effective August 1st, 2023, remote verification of identification and work authorization documents became an alternative option for qualified E-Verify users in good standing. To maintain this good standing, employers must meet the following criteria:

    1. Enroll in E-Verify for all hiring sites using the remote alternative procedure
    2. Remain in compliance with all E-Verify program requirements, including verifying the employment eligibility of newly hired employees 
    3. Continue to participate in E-Verify in good standing each time remote verification is used 

    In addition, new E-Verify employers and case managers must complete an E-Verify tutorial, including fraud awareness and anti-discrimination training. 

    Striking The Right Balance – Document Retention 

    One of the most crucial aspects of remote I-9 verification is document retention. Employers must keep clear and legible documentation of the process when using remote verification. During a live video interaction, the employer watches as the employee completes Section 1 of Form I-9 and uploads it.

    There is no specific platform requirement for the live video chat, leaving employers with flexibility. However, experts recommend avoiding overdocumentation. Over-documenting could be misinterpreted as a sign of discrimination based on an employee’s citizenship or national origin, potentially leading to lengthy investigations by the U.S. Department of Justice/Immigrant and Employee Rights Section.

    Employees have the freedom to present any document or combination of documents from the U.S. Department of Homeland Security’s (DHS’s) list of acceptable documents, and they are not obligated to provide specific items such as a Social Security card or passport. Employees can also request the traditional physical inspection process instead of remote verification.

    Recording The Video Chat: A Matter Of Privacy 

    Employers must be mindful of state privacy laws and consent requirements if they choose to record the live video chat. Privacy rules vary from state to state; some even demand audio disclosure. Prior consent from employer representatives is advisable, and any recording process should be based on nondiscriminatory reasons.

    However, it’s important to note that recording the video chat is not a regulatory requirement but rather an internal compliance decision. The DHS has not indicated that employers must maintain a recording of the document review in either video or screenshot format.

    Recording interactions may also raise data privacy and security concerns, potentially increasing HR departments’ burden. Employers should carefully consider additional tracking and documentation procedures, keeping in mind that the DHS does not mandate these and should be discussed with legal counsel.

    The Assistance Of A PEO

    In the complex landscape of remote I-9 verification, employers can find valuable support and expertise through a professional employer organization (PEO) like GMS. PEOs manage various HR functions, including compliance with immigration and employment eligibility regulations. At GMS, our HR experts help streamline the remote verification process, ensuring employers meet all legal requirements while alleviating the burden of navigating this intricate terrain alone. As we adapt to the ever-changing world of work, the partnership with GMS can prove invaluable in maintaining compliance, protecting privacy, and ultimately facilitating a seamless transition into this new era of remote I-9 verification. Contact our HR experts today!

  • In a significant stride towards a fairer and more just work environment, the Fifth U.S. Circuit Court of Appeals recently handed down a ruling that promises to reshape the landscape of discrimination lawsuits. With this ruling, employees now have a stronger basis to challenge discriminatory actions related to scheduling and other employment-related choices.

    Expanding The Boundaries Of Anti-Discrimination Laws

    On August 18th, 2023, the court confirmed that federal anti-discrimination laws can extend their protection to encompass decisions beyond what was previously deemed “ultimate employment actions.” Traditionally, to build a case of discrimination, employees had to demonstrate they had suffered due to a significant employment decision, such as termination, suspension, or demotion. However, this new ruling breathes life into a broader spectrum of scenarios.

    Under the umbrella of Title VII of the Civil Rights Act of 1964, employers are legally prohibited from discriminating against individuals based on race, color, religion, sex, or national origin regarding compensation, conditions, privileges, and terms of employment. Prior to this ruling, legal action necessitated a link to an ultimate employment decision. Now, the court’s verdict enables claims based on any decision that influences employment terms, conditions, or privileges.

    A Case That Ignited Change

    The origin of this case lies in Hamilton v. Dallas County. The lawsuit was brought forth by nine female detention officers from a Texas jail, highlighting gender discrimination. The heart of the matter was the preferential scheduling of male officers with full weekends off, while female officers were obligated to work at least one weekend day. The county’s defense was rooted in the assertion that the scheduling policy didn’t directly impact the female officers’ core job responsibilities, compensation, or benefits. The female officers, however, argued that the scheduling policy’s adverse effects constituted an adverse employment action. The decision by the Fifth Circuit Court of Appeals reverberated with the sentiment of equality. This case serves as a poignant reminder to employers that decisions, even those that don’t culminate in a significant employment outcome, should be untainted by any form of discrimination.

    Balancing The Scale Of Justice

    While this ruling opens the door to justice, it also sets a new standard for employees wishing to bring forward discrimination claims in the scheduling context. Demonstrating that such discrimination had a disparate impact on a protected group is just the beginning. Employees must also establish tangible harm linked to the decision, such as financial loss due to missed overtime pay, bonuses, or premium pay periods.

    However, it’s important to note that the court has drawn a line. The ruling does not hold employers liable for “de minimis workplace trifles,” as highlighted by attorney Tiffany Cox Stacy. This discernment prevents the floodgates from opening to minor claims while still prioritizing the pursuit of genuine equality.

    Navigating The Evolving Landscape

    The implications of this ruling are profound and demand proactive attention from both employers and HR professionals. The increased potential for litigation over what constitutes an adverse employment action could lead to a surge in cases until the U.S. Supreme Court weighs in. Employers must be prepared for an evolving legal landscape and a heightened need for well-documented decision-making processes.

    An attorney with Morrison Cohen predicts that this ruling might give rise to a new wave of complaints post-pandemic as employees strive to protect their positions and counteract perceived retaliation. The challenge for employers is to navigate an environment where almost any business decision could be interpreted as adverse.

    Consequently, HR departments are advised to adopt a discerning lens towards employment actions that fall short of ultimate decisions. This could translate into more active involvement in matters such as progressive discipline, which might have a bearing on employees’ eligibility for promotions, transfers, raises, or changes in schedules. Legal experts recommend carefully scrutinizing existing scheduling policies and forthcoming changes to ensure alignment with business needs and legal requirements.

    While the road ahead might be intricate, employers can navigate it by focusing on legitimate business justifications for their decisions. Documentation will be instrumental in proving that employment choices are rooted in nondiscriminatory principles.

    The Assistance Of A PEO

    As the courts expand the boundaries of what constitutes an adverse employment action, the need for vigilant and comprehensive workforce management becomes paramount for business owners. This shifting legal landscape highlights the crucial role of a professional employer organization (PEO) in guiding businesses through these complexities. A PEO’s expertise in navigating nuanced employment decisions, coupled with their commitment to fostering equality and compliance, offers a steadfast anchor in times of change. By partnering with a PEO like Group Management Services (GMS), business owners can confidently navigate the evolving terrain, ensuring their workplace remains fair, where employees’ rights are safeguarded, and the path to success is paved with integrity. In an era of transformation, GMS empowers business owners to embrace these legal developments and champion a thriving, inclusive, and legally sound workplace. Contact us today to learn more.

  • If you’re a California employer who’s only just adjusted to a $15.50 minimum wage, brace yourself for more change. The Golden State is gearing up for yet another hike, with the minimum wage set to rise to $16.00 per hour, effective January 1st, 2024. This move, driven by an inflation adjustment, is part of California’s commitment to ensuring fair compensation for its workforce. But what exactly does this mean for employers, and how can you prepare for the upcoming shift? Continue reading to prepare you and your business for this change.

    Beyond The Bottom Line: A Broader Impact

    The ripple effect of the minimum wage increase extends beyond those directly affected by it. While the primary focus is on workers earning minimum wage, the adjustments are bound to have a domino effect throughout the employment landscape. As wage structures shift, companies must reassess pay scales, maintain internal equity, and possibly revisit employee benefits to ensure their workforce remains motivated and engaged.

    White Collar Exemption Gets A Boost

    The minimum annual salary requirement for employees classified under the California white collar exemption will jump to $66,560, or $5,546.57 per month. This change prompts employers to review the classification of these employees, ensuring that both their duties and compensation align with exemption requirements. This meticulous audit will help maintain compliance with the evolving regulations.

    Tools Of The Trade: A Pricier Proposition 

    Industries that rely on employees to provide and maintain their own tools, such as tradespeople and technicians in various sectors, will feel the impact of the wage increase. The minimum wage for these employees will increase from $31 to $32 per hour. Business owners must consider how this change will affect their workforce and budgets, as this shift could lead to reevaluating compensation packages to retain skilled employees.

    Inside Sales Exemption Raises The Bar

    Employees eligible for the inside sales exemption from overtime must now meet a minimum annual compensation of $49,920, up from $48,360. As this exemption allows employers to avoid overtime pay for specific roles, companies should analyze their salesforce’s structure to ensure they remain compliant and avoid potential legal pitfalls.

    Fine-Tuning Premium Calculations

    Minimum wage increases necessitate recalibrating various premium calculations. From split-shift premiums to rates of pay for meal and rest period premiums, paid sick leave, and more – each aspect of compensation intertwined with the minimum wage needs to be reevaluated. This process ensures that employees receive fair and legal compensation while safeguarding employers from potential compliance issues.

    Looking Into The Future

    It’s important to note that this wage increase affects small businesses, not just large corporations. Regardless of size, all employers across the state must adapt to this change. From retail outlets to tech startups, the new minimum wage landscape will impact every aspect of California’s business environment.

    Employers should be prepared for additional adjustments as the state moves forward with its commitment to fair compensation. In October 2023, an announcement is expected to raise the minimum wage for the computer professional exemption from overtime, further shaping the employment landscape. Moreover, the interplay between state and local ordinances complicates matters. Employers must stay vigilant to local wage ordinances exceeding the state minimum, such as the recent increase in Los Angeles to $16.78 per hour.

    Partnering With A PEO: Your Bridge To Navigating California’s Wage Changes

    As California’s employment regulations continue to evolve, the challenges for small business owners multiply. Navigating the intricacies of wage adjustments, compliance nuances, and exemption requirements demands considerable effort and resources. Have you considered partnering with a professional employer organization (PEO)? A PEO like GMS can provide the expertise and support needed to navigate the changing landscape seamlessly. From managing payroll intricacies to staying updated on local ordinances and ensuring accurate exemption classification, a PEO offers the knowledge and resources that small business owners require. By partnering with GMS, businesses can confidently address the impending minimum wage increase and other regulatory changes, allowing them to focus on growth, productivity, and building a resilient workforce in the dynamic California market. Contact us today to learn more.

  • In the age of digitization, data collection and analysis have emerged as indispensable elements for organizational success. People analytics is a powerful tool that empowers you to steer your decision-making with data, anticipate workforce requirements, gauge the efficiency of existing HR strategies, policies, and much more.

    Despite people analytics’ advantages, many organizations have yet to implement it into their workflow. This hesitance largely stems from a scarcity of relevant data and a potential lack of expertise in effectively interpreting the data they possess.

    While data collection, storage, and analysis tasks might appear daunting, with careful planning and a clear sense of purpose, you can profoundly reshape your approach to business planning and provide transformative opportunities for strategic advancement.

    What Is People Analytics?

    People analytics, also known as HR analytics or workforce analytics, uses data-driven insights to inform and optimize various aspects of human resources (HR) and talent management within an organization. It involves collecting, analyzing, and interpreting data related to your employees and their activities to make informed decisions that enhance workforce performance, engagement, and overall organizational success.

    People analytics aims to help business owners and leaders better understand the patterns and trends within their workforce, leading to more effective strategic planning. By analyzing data related to employee demographics, skills, performance, engagement, turnover, and other relevant factors, organizations can gain insights that can help them address challenges, allocate resources efficiently, and identify opportunities for improvement.

    How People Analytics Benefit Your Business

    As a business owner and leader, you’re constantly making decisions that impact your team and the entire organization. While your instincts undoubtedly lead to crucial judgments, utilizing data can expedite your decision-making process and potentially reveal areas for growth. People analytics can:

    1. Minimize hiring mistakes: A poor recruitment decision can lead to costs equivalent to almost 33% of the employee’s initial salary. People analytics can optimize your hiring process by pinpointing top-notch talent that aligns seamlessly with your company and the job role. By dissecting your historical hiring data, you can gain deeper insights into the combination of technical and interpersonal skills needed for a successful hire.
    2. Enhance performance management: By detecting patterns in employee performance, you can forecast potential issues and create tailored growth strategies for employees facing challenges. People analytics equip you with comprehension factors that lead to exceptional performance, so you know which resources are needed for your team to flourish.
    3. Boost employee engagement and retention: People analytics offers a window into employee contentment, gauging levels of employment, and spotting factors that lead to unmotivated staff members. This insight can be invaluable in recognizing areas that require attention, enabling you to take proactive measures to cultivate a motivated workforce.
    4. Learning and development: Utilizing data empowers you to pinpoint skill gaps within your workforce more accurately. Additionally, it allows for a concrete evaluation of the effectiveness of your current learning and development programs. This, in turn, enables you to make informed adjustments and cultivate a more skilled and adept team.
    5. Diversity equity and inclusion (DEI): Data can help you assess where your company stands regarding diversity, equity, and inclusion. It can help you find pay disparities, understand your current demographics, and identify improvement areas.
    6. Workforce planning: Analyzing your organization’s trends and patterns regarding employee turnover can help you predict your future talent needs. Data can help you get a head start on hiring so your business is never caught off guard or short-staffed.

    How To Effectively Harness People Analytics

    Harnessing people analytics requires more than just an eagerness to embrace data; it demands a systematic and strategic approach. As your organization starts its people analytics journey, you’ll need to consider several tasks to lay the groundwork for effective implementation and utilization of data-driven insights:
    Establish a data-driven culture
    The foundation of successful people analytics lies in cultivating a data-driven culture within the organization. This entails fostering an environment where data is valued and seen as essential for making informed choices. You and other leaders on your team must encourage employees to embrace data-driven decision-making and emphasize its role in achieving company goals.

    Define data collection goals

    While data is crucial, not all data is created equal. It’s essential to define clear data collection objectives, which involve identifying the specific areas of the organization where insights are needed the most. Whether it’s employee engagement, performance, turnover, or recruitment effectiveness, having a clear focus ensures that your data collection efforts are purposeful and yield actionable insights.

    Build a data collection infrastructure

    Having a data-gathering plan in place is crucial, which involves setting up the necessary systems and tools to collect relevant information. Implementing surveys, feedback mechanisms, performance-tracking software, and other data sources that align with your defined objectives are ways to build a strong data collection infrastructure. The data should be accurate, consistent, and regularly collected to track changes and trends over time.

    Data storage and management

    Additionally, you must establish robust data storage and management systems to ensure data security, compliance, and accessibility. Collected data must be in a centralized and secure repository, and proper protocols should be in place to manage and protect sensitive information.

    Interpretation and analysis

    Data by itself is meaningless if not properly interpreted. Once you have enough relevant data, the next step is to analyze and interpret it. This involves identifying patterns, trends, and correlations within the data to provide insights into the organization’s challenges and opportunities. Advanced analytics tools, machine learning algorithms, and data visualization techniques can help uncover hidden insights.

    Storytelling with data

    The next step is transforming data analysis into a coherent narrative that resonates with stakeholders. Translating data into a compelling story helps leaders understand the implications and make informed decisions based on the insights provided by the data.

    Data-driven decision-making

    The ultimate goal of people analytics is to influence business decisions with data. The insights obtained should guide HR strategies, talent management, workforce planning, and overall business strategies. From employee engagement initiatives to leadership development programs, every aspect of the organization can benefit from informed decision-making rooted in data.

    Iterative approach

    People analytics is not a one-time endeavor; it’s an ongoing process. Organizations should continuously collect, analyze, and refine their data collection strategies. Regularly revisiting data collection goals, adjusting metrics, and updating analysis methodologies ensures your insights remain relevant and actionable.

    People analytics demands substantial effort to truly make a meaningful impact on your business. It’s not a venture you can initiate and leave to operate independently. It’s a strategic initiative that should include key members of your staff and undergo continuous enhancement. Despite the initial investment, the advantages of leveraging people analytics outweigh the time spent on setup.

    How GMS Can Help

    Implementing proper data collection can be an overwhelming task. With your many pressing responsibilities, it can be an added burden you may not have time for. Partnering with a professional employer organization (PEO) like GMS can relieve some of this burden.

    GMS Connect, our human resources information system (HRIS), is a software that collects and reports all employee data in a centralized hub. Our system encompasses payroll, benefits, HR, recruiting, performance management, and more – covering the entire HR spectrum from hire to retire in one platform.

    The process of collecting and managing data doesn’t have to be challenging. Our experts are ready to relieve your administrative workload so you can focus on the aspects of your business you enjoy most. Contact us today, and let us simplify your data collection and analysis process.

  • It’s no secret that attracting and retaining top talent is challenging for businesses of all sizes and industries. However, many companies understand the value of having exceptional employees and prioritize it during their recruitment efforts.

    In the ever-tightening labor market, business owners have to shift their hiring strategies away from traditional efforts to remain competitive. Traditional hiring processes often lean on degree requirements and limit the number of eligible applicants. While you may attract talent that has technically met your company standards, they may still lack the relevant experience to be successful in the role. Only 53.7% of the US workforce has some college background, meaning traditional job requirements weed out nearly half the workforce from the start.

    Many companies have adopted skills-based hiring strategies to combat this issue and cast a broader net of workers. Factors contributing to this shift include:

    1. Structural change: In the last decade, the perpetual demand for a skilled workforce has outpaced the availability of talent. In response, employers have had to reevaluate the significance of traditional degree requirements. The focus has pivoted towards identifying individuals with the specific skill sets needed to excel in roles, irrespective of any degrees they may or may not hold.
    2. Cyclical reset: The unprecedented upheaval caused by the COVID-19 pandemic accelerated the embrace of skills-based hiring practices. The abrupt urgency to secure adept professionals prompted many companies to temporarily set aside stringent degree requirements and acknowledge that practical expertise often trumps theoretical education, particularly in times of rapid change.

    What Is Skills-Based Hiring?

    Skills-based hiring removes previously standard hiring benchmarks, such as college majors and degrees, from the screening process to focus on a candidate’s specific skills and competencies. In the past, the hiring process revolved around education qualifications, specific credentials, and prior experience to evaluate candidates. The concept of skills-based hiring has gained significant traction, particularly for entry-level and mid-career positions.

    So, what sets skills-based hiring apart? To put it simply, it embraces a fresh perspective on career progression. Skills-based hiring shifts the focus from more generalized and often arbitrary markers to a more nuanced candidate evaluation.

    It recognizes that a candidate’s potential exceeds traditional qualification confines and values the specific capabilities and proficiencies they can bring to the table. This hiring method enables you, as an employer, to make more informed hiring decisions based on your company’s particular needs. As a result, this approach widens the pool of capable prospects and opens opportunities for individuals who are traditionally overlooked due to their unconventional career paths.

    Advantages Of Skills-Based Hiring

    Recruiting new talent comes with a hefty price tag. In addition to the time and money you invest in the hiring process, when your team is short-staffed, the workload on existing employees increases, creating significant stress that can impact productivity. Though it’s tempting to rush through the hiring process, it’s important to note that however costly the process is, a bad hire will cost you significantly more in the long term. The average cost of a bad hire is nearly 30% of the employee’s salary. Additionally, a bad hire can be detrimental to your company’s culture, staff morale, and productivity. Take the time to find the right candidate for your company’s needs.

    Skills-based hiring allows you to attract more quality candidates and significantly reduce mis-hire rates. Companies that have adopted skills-based hiring report that their mis-hire rates decreased by nearly 25%. In addition to the improved quality of your candidates and reduced number of mis-hires, a skills-based approach can:

    • Reduce hiring costs: Opting for skills-focused hiring can expedite the recruitment timeline. This decreases the overall hiring timeline and translates to substantial cost savings for your organization. Moreover, adopting this approach draws in candidates with the necessary expertise to be successful contributors. They’ll require little-to-no training and a significantly shorter onboarding process, saving you time and money.
    • Increase employee performance and productivity: Companies prioritizing skills-based recruitment are better positioned to discover employees who consistently aim for excellence across all their responsibilities. A skills-based workforce tends to surpass performance benchmarks by proactively seeking avenues for enhancement.
    • Diversify your staff: College is becoming increasingly more expensive. In the last ten years alone, the price has increased by nearly 25%. Additionally, people from historically marginalized groups are less likely to have college degrees. A skills-based approach lowers the barrier of entry while still attracting qualified candidates.
    • Assist with retention: Workers in positions that match their skills and credentials tend to find greater satisfaction in their roles. Skills-based hires stay at companies more than 34% longer than employees with traditional degrees and career paths.

    Writing A Skills-Based Job Description

    Steering clear of conventional job descriptions and prerequisites might appear daunting at first. However, there are effective ways to draw competent and high-caliber candidates without relying on these customary filtering methods. Embracing a skills-based approach doesn’t mean discarding requirements altogether, rather, a shift in perspective. Through a skills-based job description, you can emphasize both hard and soft skills, industry or position-specific expertise, and much more.

    Writing a skills-based job description should:

    1. Prioritize specific needs: Begin by clearly defining what the position demands. Provide an outline of the expectations and daily responsibilities the new hire will handle. This involves pinpointing hard skills (such as technical expertise or programming skills) and soft skills (such as problem-solving and communication). By concentrating on your desired outcomes, you can craft a job description that spotlights the essential skills and proficiencies, going beyond a four-year degree, which may or may not be directly related to the role.
    2. Relax your language: Instead of fixating on “requirements,” lean towards “responsibilities.” In the United States, positions that emphasize responsibilities instead of strict requirements witness a 14% increase in applicants.
    3. Keep it short and to the point: Time is of the essence; candidates spend a mere 14 seconds scanning a job post before deciding whether or not they will apply. Optimize this window by arranging the most crucial and captivating details first. Keep your message brief, between 300-700 words, and utilize bullet points wherever possible.
    4. Avoid clichés: Unless your business utilizes quirky phrases regularly, steer clear of using worn-out terms such as “rockstar,” “shining star,” or “ninja.” Seasoned experts seek clarity about your company’s identity and the role’s expectations, and the presence of clichés can swiftly disengage potential candidates.
    5. Be as straightforward as possible: Though being concise is crucial, make it a priority to embrace clarity. Be as specific and detailed as possible. Ambiguity or omitting critical information about your company or the position is the best way to attract a bad hire.
    6. Specify the location: As the job market evolves to encompass remote, hybrid, and in-person roles, it’s imperative to outline your organization’s preferences within the job description. This will quickly weed out candidates who don’t align with the position’s needs.

    By embracing these strategies, you can attract a wider talent pool and engage potential candidates more effectively, ensuring your workforce remains successful.

    Let Us Help

    Recruiting, training, and retaining employees has never been more challenging for small and mid-sized businesses. Creating a job ad, finding the right candidate, and providing opportunities for employee development are significant expenses.

    Partnering with a professional employer organization (PEO) like GMS can take the administrative burden out of recruiting and hiring so you can focus on other aspects of your business. With our employee training and recruiting services, we can streamline the hiring process. Our applicant tracking system tracks every part of the hiring process so you know what platforms candidates are coming from and how long the process takes for your organization. Contact us today, and let us help you find your next hire.

  • In a progressive move towards promoting fair wages and transparency in the workplace, Illinois has set a significant precedent by passing pay transparency requirements. On August 11th, 2023, Governor J.B. Pritzker signed a bill that will reshape how employers communicate compensation details to potential hires. This transformative legislation, House Bill 3129, aims to bridge the information gap between employers and job seekers, ensuring that pay scales and benefits are clearly outlined in job postings, thus fostering a more equitable job market.

    The Path To Pay Transparency: A New Era Unveiled

    Starting January 1st, 2025, employers in Illinois with at least 15 employees will be obligated to disclose pay scales and benefits for positions within their job postings. This move echoes a broader societal shift towards greater transparency, emphasizing openness and fairness throughout employment.

    House Bill 3129 introduces a compelling requirement for employers to furnish the anticipated pay scale and benefits in their job postings. This provides job seekers with a comprehensive understanding of the potential compensation package, allowing them to make informed decisions about their career prospects. This fosters trust and honesty between employers and applicants and lays the groundwork for a more equitable job market where candidates have the knowledge they need to negotiate fairly.

    Inclusivity And Impact: Who And What Does It Apply To?

    The law’s reach extends to a broad spectrum of job positions. If a job is to be partially performed in Illinois or if the employee is expected to report to an Illinois-based supervisor, office, or work site, then the law’s provisions apply. This ensures that the information asymmetry between employers and employees is addressed consistently and uniformly.

    However, the legislation’s impact doesn’t just stop at pay scales. The definition of “benefits and other compensation” under House Bill 3129 includes various incentives, such as bonuses and stock options, reflecting the comprehensive nature of the law. Employers are tasked with providing a holistic view of the compensation package, fostering greater clarity for potential hires.

    Navigating Compliance And Implementation

    To meet the requirements of the law, employers can include a hyperlink within job postings, redirecting candidates to a publicly viewable webpage containing the pay scale and benefits information. This innovative approach marries technology with transparency, streamlining the communication of crucial details while maintaining the user-friendliness of the application process.

    For those employers utilizing third-party platforms for job postings, the responsibility of including the necessary information lies with both parties. Employers must provide the pay scale and benefits to the third party, which becomes accountable for its inclusion. This collaborative effort ensures that vital details are communicated accurately.

    Tori Moldovan, PHR, GMS’ Client Services Manager, expressed, “Pay transparency laws make you think differently when looking at your employee base. When you have to consider items such as the pay scale and benefits for the position, it forces you to look at your organization as a whole. These will be posted, so current employees will be able to see what you’re offering as well. If they aren’t at that mark with current employees, it could lead to other issues for employee retention and wage inequality that may be brought to light.

    From a compliance standpoint, employers that fail to adhere to pay transparency laws in Illinois can face up to $10,000 in penalties for repeat violators. It’s important to ensure you are following the guidelines set forth by the state.”

    Empowering Employees And The Role Of The Illinois Department Of Labor

    To strengthen employee empowerment, House Bill 3129 also mandates employers to notify current employees of all promotional opportunities arising within 14 days of external postings. This promotes internal growth and helps in fostering a motivated and loyal workforce.

    The Illinois Department of Labor (DOL) is a guardian of compliance, empowered to initiate investigations into potential violations. Whether triggered by individual complaints or the department’s discretion, this measure underscores the state’s commitment to upholding pay transparency and ensuring its effective implementation.

    The Road Ahead: A More Fair And Transparent Job Market

    Illinois’ stride towards pay transparency is a significant leap forward in reshaping the job market dynamics. By embracing open communication of pay scales and benefits, the state sets a powerful example for other jurisdictions to follow. With the law’s implementation set for January 1st, 2025, the coming years promise to be transformative, creating a job market characterized by equity, trust, and empowerment for all.

    As Illinois paves the way, it’s not just pay scales and benefits being illuminated; it’s a brighter future for employment, one built on the principles of transparency and fairness. The journey toward pay equality has just taken a giant stride, and the destination looks promising.

    How A PEO Can Be Your Partner In Pay Transparency

    Embracing pay transparency is a legal obligation and a strategic move towards a fairer and more attractive workplace. As Illinois businesses gear up to navigate the new era of pay disclosure, a professional employer organization (PEO) like GMS can be your guiding light.

    PEOs specialize in managing HR functions, ensuring compliance, and simplifying complex tasks such as pay scale communication. We help you seamlessly integrate the required pay transparency measures into your job postings, taking the weight off your shoulders and allowing you to focus on what you do best – running your business. By partnering with GMS, you ensure compliance and foster a culture of transparency and employee trust. As the Illinois pay transparency law approaches, GMS can be your trusted partner, providing you stride confidently into a future where fairness and openness define your workplace. Contact us today to learn more.