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  • Michigan’s Governor Gretchen Whitmer signed legislation that will repeal the state’s right-to-work law for private-sector employees on March 24th, 2023. For the first time since 2012, when Michigan’s right-to-work law was passed, union security clauses will be legal again in private-sector collective bargaining agreements when it takes effect in 2024. The law will require employees to pay union dues or a service fee to their bargaining representative to keep their jobs.

    The law will go into effect on March 30th, 2024.

    How To Prepare

    Any business owner in Michigan with a unionized workforce should review each collective bargaining agreement to determine if it contains a union security clause. A unionized workplace is a process of organizing the employees of a company into a labor union which will act as an intermediary between the employees and company management. In addition, it’s essential that you determine if the contract requires the parties to reopen negotiations and bargain upon repeal or invalidation of the right-to-work law.

    Partner With GMS

    These ever-changing rules and regulations can take a toll on your well-being as you have many responsibilities when running your business. As this new law passes in Michigan, you must begin implementing the changes necessary to comply. When you partner with GMS, a professional employer organization (PEO), you gain access to a dedicated team of HR experts who are ready to keep you up to speed on changes. Let’s tackle this change together. Contact us today to get started.

  • Employee performance can be tricky to navigate, and especially concerning if you have an employee who was once on track for a promotion, but something has shifted, and they’ve become lax with their productivity and deadlines.

    As a manager of a struggling employee, it’s in the best interest of both the employee and the company to get them back on track, and it’s your responsibility to give them guidance and support to address the situation appropriately. Consider these strategies to help top-performing employees manage the factors limiting their potential at work and get back in the right direction.

    Potential Factors Affecting Employee Performance

    Many factors can get in the way of top performance; by finding the root cause, you can develop a strategy to work through the issues.

    Lack of confidence – If an employee lacks confidence in their abilities and feels like they don’t belong in the role, it isn’t easy to get that person back on track. A lack of confidence can stem from a lack of knowledge or experience. It can also come from a fear of making mistakes or struggles with handling stress.

    Lack of support – As a leader in your organization, it’s your responsibility to be there for your employees, giving them the appropriate training, resources, and support from you. Having a supportive manager and colleagues is crucial if you want to see a performance improvement.

    Personal issues – It’s near impossible to separate one’s personal and professional life; external problems can arise and impact work and productivity. Family difficulties, health concerns, and financial struggles can all affect employees at work.

    Work overload — Employees overwhelmed with too much work, and no one to help them complete their assignments may struggle with their responsibilities. In this situation, you should help them prioritize their workload or reassign some of their tasks, so they have more time for critical projects. In some cases, hiring new employees may be necessary.

    Lack of motivation – If employees lack clarity on how their work contributes to overall business goals or clear objectives, staying focused on completing tasks may be problematic. You can remotivate struggling employees by taking steps to help them reconnect with their work and its importance.

    Steps To Get Your Employees Back On Track

    Start with a conversation

    The best first step to getting your employee back on track is communication. Start with an open conversation and allow them the chance to discuss their thoughts and feelings. Be ready to listen, and be prepared for them potentially to be frustrated, scared, or even angry – and that’s okay. You’re there to reassure them of your commitment to them and express your confidence in their abilities.

    Have prepared questions designed to reveal the underlying causes of their struggles rather than focusing solely on the symptoms. For example, ask what they enjoy most about their work versus what projects make them feel stuck or even tasks they’re uninterested in completing. By finding the contributing factors to their poor performance, you can work together to find a solution that works best for both of you. The goal is to create an environment where they feel comfortable sharing and developing an open dialogue.

    Ask the employee to do a self-assessment 

    It’s important to remember that an employee slacking off may not realize they’re doing anything wrong. If they haven’t recognized their behavior’s effect on their co-workers or the company itself, they’re unlikely to change their work style independently, and you must step in.

    Ask them to do a self-assessment of their performance, followed by a conversation regarding their analysis so you can work together to find ways for them to improve. An open discussion will give them a sense of control over the situation and insight into what’s going wrong.

    When you reach out to the employee, avoid being confrontational by beginning with an accusative question like, “How do you think you’re doing?” Instead, ask what they think their strengths are, what areas they believe they can improve, and how they feel about their performance lately. Open-ended questions also allow you to evaluate the employee’s self-awareness regarding their performance.

    Take a look inward

    Instead of jumping to blame the employee, take a step back and objectively evaluate how you’ve been as their manager and if there are any changes you can make to better the employee’s performance.

    When employees are having trouble meeting your expectations, it’s usually because either the expectations are unclear or they weren’t properly prepared for the task at hand. Are you setting clear expectations of the level of quality required, and are these expectations realistic? Have you been providing enough support through training and coaching? Are you giving them feedback regularly so they know how they are doing?

    Good managers take an honest look at their own actions to find ways to make their interactions with their employees more positive and productive.

    Ask how you can help

    Sometimes the most straightforward approach is the best solution. When you ask an employee how you can help, you’re doing more than just letting them know that you care about their success—you’re giving them the space and freedom to think outside the box to solve their problems. Asking, “How can I help?” is also a great way to let your employees know that you trust their judgment and understand that they are most likely the best person to decide what they could use from you.

    Reaffirming your trust in others by giving them control over their solutions communicates your confidence in them and reassures them that they have everything they need to succeed. All these factors contribute to your overall goal of helping your employees achieve their goals effectively.

    Additionally, ask for feedback from your entire team. You may find areas where resources or time are wasted and find potential to improve conditions or efficiency. Along the way, you may even discover upskilling opportunities that would benefit your entire team.

    Have check-in meetings

    Setting small, regular goals for your employees allows you to check in on their progress and assist them with any issues they may have throughout their workday. Moving forward, you’ll want regular check-ins until you’re both comfortable with the advancements and feel aligned on future expectations.

    Regular check-ins with your entire team keep you informed about what’s happening so you can make changes before encountering more significant problems. It also helps you build trust and transparency within your team by showing employees they can talk to you about any issues and work through them together.

    Proactive Measures To Keep Your Employees Motivated

    If your employees feel comfortable approaching you when they’re struggling, you can avoid problems growing into more significant challenges. If an employee fails to meet expectations or causes dissatisfaction among their peers, the best thing you can do is create a safe space for them to discuss it. Taking a proactive approach will help you address the issue immediately without becoming a bigger problem that is hard to resolve later. Below are a few proactive measures you can take today:

    Set realistic goals – One of the best ways to evaluate an employee’s performance and motivation level is to set specific goals with a clear understanding of why they are necessary. Employers and managers must be realistic about what they expect from their employees because employees might feel discouraged rather than motivated when expectations are too high.

    Give positive feedback – Feedback shouldn’t be reserved solely for when problems arise; you should also reinforce successes. By providing positive feedback, your employees will know they align with your expectations and be more confident in their work.

    Create a safe environment – A culture of open communication encourages employees to share ideas, concerns, or problems with you and address issues when they occur. Taking time to listen and understand an employee’s point of view will also help you develop a better sense of how your team is feeling.

    Encourage growth – As a manager, employee success is essential, and it’s meaningful when they know you recognize their dedication. Providing them with opportunities to develop new skills and grow in their position will also keep them motivated and excited to pursue their career.

    The most important thing to remember is that even the most ambitious, hard-working employees are only human. They aren’t immune to life events, distractions, or issues outside of work. As a manager, it’s your responsibility to discuss the reasons behind their impacted work performance and find solutions together. Understanding each person individually will help you with the best strategy for motivating them to get back on track.

    Investing in the success of your employees is vital, and GMS is here to help with performance management, retraining, or other HR responsibilities to keep your employees heading in the right direction. Contact one of our experts today to discuss how we can assist with employee management.

  • A woman’s right to belong in the workplace has been a long battle over the decades, but the fight continues to combat discrimination and biases against women daily. One of the first victories was the Equal Pay Act of 1963, making it illegal for an employer to pay women less than men simply based on sex. The following year, Title VII of the Civil Rights Act of 1964 passed into law, protecting women from workplace discrimination and making it illegal to discriminate based on race, religion, or national origin.

    While many great strides have occurred, facing biases while trying to go about your workday can be exhausting, but women don’t need to face this alone. The workplace is a dynamic environment where employees constantly learn, grow, and evolve. As a leader, you have the power to create an environment that allows employees to grow and succeed. You can also create an inclusive work culture that supports diversity and fosters inclusion. There are many ways to advocate for women in the workplace; below are a few actions you can take daily to be there for the working women in your life.

    Actions To Take To Support Women In The Workplace 

    Encourage women to be authentic leaders

    There is often a pressure to fit in with those around you, and women, in particular, often feel coerced into mirroring their male counterparts if they want to get ahead in their careers. Pushing for people to fall in line is especially true for women of color who may not fit the ‘standard’ definition of a leader’s appearance. Other leaders must encourage female employees to embrace their unique styles and strengths, so they feel comfortable being themselves at work.

    But simply “speaking up” isn’t that easy, especially in a world where women are often talked over or left out of the conversation. You can help by fostering a welcoming and inclusive environment where everyone has the chance to participate and feels safe doing so.

    When women feel confident in their ability to speak up and are given the support to navigate challenges, they can reach their full potential.

    Recognize and reward women for their achievements 

    It’s important to recognize women for their accomplishments in the workplace, especially since society has historically left them out of the spotlight. Recognition, even for something small, can give someone the power to feel confident in their abilities and build confidence as a leader. By crediting a female employee’s accomplishments, she will hopefully feel more comfortable taking on more responsibility and leadership roles within your company.

    Recognition is one of the most powerful incentives for employees at all levels — not just those with higher status or paychecks. It reinforces positive behavior and encourages others to emulate it.

    You should reward people whenever possible, even if it’s just thanking them for doing their job well or helping a colleague in need, showing that you see and appreciate their efforts. This could include awarding prizes or bonuses for good work or planning special events such as company outings or happy hours that allow workers to form a stronger team bond.

    When you see an employee doing something right, take the time to recognize them publicly. Tell them how much their work means to your company and how grateful you are for all they do daily.

    Conduct a pay equity analysis 

    The gender pay gap is the difference between the average earnings of men and women, expressed as a percentage of men’s earnings. As of 2022, women earn an average of 82% of what men earn, based on an analysis of a new study by the Pew Research Center using the median hourly earnings of both full- and part-time workers. This has remained roughly the same for the past twenty years, only rising 2% since 2002.

    One way to support women in the workplace is by conducting a pay analysis evaluating how much you pay employees based on gender, race, and ethnicity.

    Conducting a pay analysis will help you identify potential gaps in pay between your male and female employees so that you can adjust accordingly. You should also review how much more seniority males have over females regarding promotions or raises, as this could also contribute to pay gaps.

    In fact, many businesses are making their salaries public knowledge so that everyone knows what their colleagues earn and how much they deserve for doing the same job.

    Rethink leadership development programs 

    Investing in the development of female employees helps retain talent and improves productivity and performance within your organization’s culture. Companies that invest in developing their employees through training and education tend to see higher job satisfaction among their employees compared to those that don’t invest in employee development at all.

    Many organizations offer employee leadership training programs — but those programs often focus on men. These programs tend to teach men how to be more assertive and competitive while teaching women how to be likable and more collaborative. These stereotypes have been shown time and again not only to be false but also harmful. Rethinking how we teach leadership skills can help create a more inclusive workplace where everyone feels comfortable speaking up and taking charge when necessary.

    Mentorships are an excellent way for senior leaders to share their expertise with junior employees who want guidance navigating their careers or navigating office politics. Mentorship programs also help new hires feel more comfortable when they start a new job by having someone they can contact if they need advice or guidance on anything related to their career path (or life).

    Be aware of biases 

    Women are often the target of bias in the workplace, whether it’s conscious or unconscious. Implicit biases are a form of bias that occurs automatically and unintentionally but still deeply affects judgments, decisions, and behaviors. Being aware of these biases is the first step toward understanding how they affect your behavior and how you treat others.

    Unconscious bias refers to our attitudes or stereotypes about people based on their gender, race, age, and other characteristics. This can lead us to make assumptions about others without realizing it — for example, that men are better suited for leadership roles. Avoiding these assumptions helps create a culture with fair treatment regardless of gender, race, or other characteristics.

    Unconscious bias training helps people recognize their own preconceived notions about certain groups — whether based on race, gender, or other factors — so they can correct them when making decisions about hiring or promotion prospects. It’s also used in human resources departments to ensure managers understand how they might treat employees differently based on their backgrounds.

    For example, “office housework” refers to the tasks often assigned to women, such as making copies, ordering lunch, or taking notes during meetings. It’s a phenomenon noticed by many women in the workplace, who have reported feeling resentment when asked to do these tasks instead of their male colleagues.

    Create a flexible work environment 

    The fact that women continue to be the primary caregiver in most families means that they will often need to arrange their schedules around the needs of their children. Scheduling can be difficult when there is little flexibility around the hours they need to work, and the days they need to take off. It’s essential to create policies that encourage employees with caregiving responsibilities (of all genders) to meet those responsibilities without sacrificing their careers simultaneously.

    Many companies offer flexible work arrangements such as telecommuting or compressed workweeks so employees can control their schedules and spend more time with their families. These programs also help companies attract top talent while retaining valuable employees who may otherwise leave when they have children or aging parents they need to care for.

    Support Your Female Coworkers Every Day

    The workplace is changing, and people are vocalizing the importance of diversity of thought and action, but more effort must happen regarding gender equity and equality. To date, we have the trailblazing efforts of the brave women who openly speak out about harassment and discrimination to thank for all the incremental developments so far. However, they can’t create lasting change alone. With the help of individuals such as yourself, it’s possible to create a more supportive and progressive environment for women.

    As HR experts, we’re equipped with the resources to help you manage workplace prejudice among employees, such as gender discrimination. At GMS, we stay current on all discrimination laws and protections to help you create a safe and welcoming environment for all your employees. If you have any questions, contact us today to speak with a team member!

  • The success of a workplace stems from an inclusive and equitable experience for your employees. Research shows that 80% of workers want to work for a company that values diversity, equity, inclusion, and belonging (DEIB). If your employees want to work in an environment where they feel valued and heard, what can you do as a business owner to help? Continue reading to learn how you can develop a more inclusive and diverse work environment and the benefits it has on your business.

    What Is Equity In The Workplace?

    Let’s start with the basics – understanding what equity is and what it means in the workplace. Equity is the quality of being fair and impartial. Equity in the workplace is the idea that all employees are provided with fair and equal opportunities based on their individual needs. Equity often involves issues related to fairness in pay, opportunities for advancement, and fairness in daily work experiences.

    Equity can be challenging to demonstrate in the workplace. Critics say this is because what constitutes fair and equitable treatment is often subjective and unique to the experiences of every individual employee. So, you can start by showing equity within your business by recognizing this. Then, you can foster an equitable workplace by cultivating a safe environment that allows for open discussion and understanding.

    The Benefits Of Workplace Equity

    While prioritizing equity within your business takes hard work, research shows businesses benefit from creating an equitable workplace. Businesses with gender, ethnic, and culturally diverse leadership are more likely to financially outperform companies that are not. Equity within your workplace creates a positive environment for employees and the employer’s contributions to success. The following are the benefits of equity within the workplace:

    • Encourages achievement 
    • Increases employee retention
    • Attracts top talent
    • Broadens perspectives
    • Enables targeted upskilling for a diverse workforce
    • Encourages cognitive diversity in decision-making
    • Drives engagement for specific employee demographics
    • Prevents dissatisfaction and employee attrition
    • Enhances your bottom line
    • Equips the entire company to contribute to a shared mission

    A study showed that individuals who feel they belong in a workplace have a 34% higher intent to stay at their organization and are 167% more likely to recommend their company as a place for others to work. Ultimately, equitable work environments are about leveling the playing field and providing your employees with opportunities within your organization.

    The Future Of Equity Within Your Business

    As a business owner, you must identify and acknowledge the needs of your employees regarding their gender, identity, race, disabilities, and more. While you can certainly take proactive measures to ensure your employees feel valued, you can also partner with a professional employer organization (PEO) such as Group Management Services. Our HR experts work with you to create a handbook to reflect the changes you’d like to make within your business around creating a diverse and inclusive work environment. In addition, GMS provides access to our learning management system (LMS), where you can utilize learning modules to educate your employees on important topics such as equity within your business. Let’s create a workplace your employees want together. Get a quote today.

  • Michigan might become the first state in nearly 60 years to ditch its right-to-work law. The Michigan House of Representatives passed two bills, House Bill (HB) 4004 and HB 4005, to repeal the state’s current right-to-work law on March 8th, 2023. HB 4004 relates to the right to work in the public sector, while HB 4005 relates to the private sector.

    The current right-to-work law passed in Michigan in 2012 prohibits unions from requiring workers to pay union dues as a condition of employment. The bills passed by the Michigan House would reverse the right-to-work law by allowing unions to collect dues from all workers in a bargaining unit. Ultimately, it means that union security clauses in collective bargaining agreements would become legal again for the first time in Michigan since 2012.

    Supporters of the law argue that it gives workers more freedom and choice in their employment, while opponents say it weakens unions and reduces their bargaining power. The debate over the right-to-work law has been contentious in Michigan, with labor unions and their supporters arguing that it weakens their ability to negotiate better wages and benefits for workers. However, supporters of the law say that it’s helped make Michigan more competitive and attractive to businesses, leading to job growth and economic development.

    What Now? 

    The bills will now move to the Michigan Senate for further debate. If passed in the Senate, the bills will move forward to Governor Gretchen Whitmer for her signature. While the debate over the right-to-work law is expected to continue in Michigan and other states where similar laws have been passed, you must understand your responsibilities as a business owner. If the bills are passed, business owners would be responsible for allowing unions to collect dues from all employees in a bargaining unit, regardless of whether they choose to join the union.

    Ultimately, it means that if a union is present in a workplace, the employer would be required to deduct union dues from the pay of all employees in the bargaining unit. In addition, you’d have to negotiate with the union on behalf of all employees on wages, benefits, and other working conditions that affect all employees in the bargaining unit. You must be prepared to work with unions and comply with new union dues and collective bargaining requirements. Consult with an HR professional such as Group Management Services (GMS) to ensure you comply with all relevant laws and regulations. Contact us today to learn more.

  • The wait is finally over. It’s time for segment three of understanding hourly workers in today’s economy, in which we will discuss what your employees want. To attract and retain hourly workers, you need to consider what they want and how you can provide it. Continue reading to learn how you can provide your employees with the desired benefits.

    Click to read parts one and two. 

    Flexible Schedules

    Flexibility with one’s work schedule has become essential for employees as workplace expectations shift. While organizations that employ mainly office and white-collar employees have adopted more flexible work schedules, “gray-collar” businesses have slowly changed their practices. When you add the Great Resignation to the mixture and businesses see staffing shortages and burnt-out employees, it’s essential that you determine how you can stop this from happening within your business.

    Industries such as manufacturing, health care, and retail rely heavily on hourly employees, so these businesses need to get creative and provide their workers with greater flexibility and control. Consider the following when implementing a more flexible schedule:

    • Give workers the ability to provide input on their schedules – including schedule preferences, start and end times, break times, and overtime
    • Provide work schedules in advance and keep schedule changes to a minimum
    • Offer workers a consistent number of hours and let them know in advance how many hours they’ll be assigned each week, and which shifts they’re scheduled for

    According to a recent study, 43% of respondents said flexible working hours helped them achieve more productivity. In another survey, 73% of employees said that flexible work arrangements increased their satisfaction at work.

    At the end of the day, your employees want to enjoy the balance of work and life outside of work. A survey showed that 59% of workers quit their jobs due to scheduling issues. What will you do to provide your employees with a flexible schedule?

    Access To Pay Earlier

    Another technique that has become increasingly popular is providing employees their pay more frequently or earlier than usual. It’s also another thing your hourly workers want! As we’ve seen for quite some time now, your employees simply cannot keep up with inflation. Many individuals live paycheck to paycheck, which causes financial distress in your employees, ultimately leading to less productive workers. The Financial Health Network indicates that one in five families has less than two weeks of liquid savings. Your employees want financial security.

    So how can you begin implementing this within your business? Typically, your workers are paid every two weeks or, in some cases, once a month. During these unprecedented times, that’s not cutting it for most of your hourly workers. Consider earned wage access which is the ability for an employee to access a portion of their paycheck in advance of their regularly scheduled payday. If you currently pay monthly, consider moving it to bi-weekly. If you pay your employees bi-weekly, maybe you move it to weekly pay.

    Career Advancement

    In today’s economy, most hourly workers aren’t provided with the opportunity for career advancement or promotions. In addition, skills-based and hourly workers lack career growth opportunities in the form of training or education. Careers aren’t just for the leaders of your organization. Any employee is destined for a managerial role, you just need to set them up to achieve that. Create a career path where your hourly employees can hit benchmarks and grow.

    Providing your employees with a training and development program can help them learn new skills and improve their existing ones. For many hourly employees, the goal is to find a job that provides stability and a comfortable wage. However, this only sometimes allows for career growth which leaves employees feeling stuck in low-paying jobs with little opportunity for advancement. The following are ways in which you can provide your employees with opportunities to grow within your organization:

    • Offer opportunities to learn new skills
    • Provide training – including online courses, on-the-job training, and formal training programs
    • Reward your employees for their hard work and dedication
    • Encourage networking and mentorship

    Benefits

    Any hourly worker who is classified as a full-time employee (works at least 30 hours a week) typically receives the same benefits as employees who receive a salary. However, companies vary in their benefits packages. Common benefits packages for eligible hourly workers include the following:

    • Health and dental insurance 
    • Life insurance 
    • Paid time off (PTO)
    • Retirement plans

    The Affordable Care Act (ACA) mandates employers with 50 or more employers to offer health benefits to those who work at least 30 hours per week. However, have you considered the hourly workers that just miss the hour requirements? Consider offering them benefits. Perhaps it’s as simple as offering a few days of PTO for these employees so they can take time away from work for themselves. 73% of hourly workers would trade an increase of $1 per hour for an extra five days of time off. This could help you retain current employees and attract top talent.

    Where GMS Comes Into Play

    Your hourly employees are the backbone of your business and provide the manpower to keep operations running smoothly and efficiently. The last thing you want is to lose them because you couldn’t give them what they wanted and/or needed. When you partner with GMS, we provide you with the resources to ensure your employees can thrive in their roles at your company. From creating a competitive benefits package to attracting and retaining top talent, we’ve got you covered. Allow us to take on the administrative burdens you don’t have the time or expertise to manage effectively. During these challenging times, that’s the last thing you should be worried about. Contact us today to get started.

  • As we discussed in our last blog, employee turnover rates and expenses are rising; it’s challenging for business owners to hire hourly workers. Ultimately, this crisis stems from the idea of individuals being fed up with what they perceive to be “dead-end” jobs. This means that they see no future or promotion within the company. Not seeing a future or promotion within a business is a trend for hourly workers because of the following factors:

    • Limited opportunities – Many hourly workers are in jobs that don’t necessarily offer a clear career path or opportunities for advancement. In some cases, these jobs typically don’t require specialized training or education, making it challenging for workers to move up the ladder.
    • Low pay – Hourly workers often earn lower wages than salaried employees, which can create a perception that their work is not valued or that they are not being compensated fairly.
    • Lack of training – Without access to training and development programs, hourly workers may not have the skills or experience necessary to move into higher-level positions within a company.
    • Inequality – In some instances, hourly workers may feel that they are not given the same opportunities as salaried employees or that their work is not recognized or rewarded in the same way. This can create a sense of unfairness and limit workers’ motivation to pursue career growth within a company.

    What Companies Are Doing

    As a business owner, it’s time to start thinking about combatting these challenges and giving your employees what they deserve. For example, Amazon began offering a $1,000 sign-on bonus for hourly workers, and McDonald’s increased their hourly wages to $15 an hour. In addition, states have started implementing higher wages for all hourly workers. Illinois raised its minimum wage to $15 an hour.

    However, we understand that raising pay rates may not be within your budget. So, another option is investing in your leaders. While offering higher pay could bring new talent through your doors, it may not keep them for the long haul. Despite this, employers have begun investing in their leaders because a good boss can make all the difference and will likely make your employees want to stay. Studies show that if a leader engages in employees they trust, it can take a pay raise of more than 20% to poach them. When your leaders build a highly trusted workplace, the following are the benefits you’ll receive:

    • Enhances teamwork and collaboration
    • Improves organizational alignment 
    • Enhances decision-making
    • Decreases stress and burnout in the workplace 
    • Increases employee loyalty and retention
    • Overcomes resistance to change 
    • Improves innovation and creativity 

    When employees have a boss they feel they can go to when they’re struggling or need help, it makes them want to stay with the company. In addition, you could provide your leaders with HR technology that allows them to offer confident solutions to their employees’ concerns. Imagine how impactful it can be if your employees feel valued by their leaders. It plays a significant role in the success of your organization.

    While trust is the main driver in retaining your hourly workers, your employees also want more than just pay increases. Consider looking at your employee benefits. What can you add or change to create a more competitive benefits package? Providing your employees with a work-life balance, surrounding them with positive work culture, giving them learning opportunities, and training and career advancement opportunities all aid in the retention of your employees.

    In addition, have you considered the possibility that the way you hire your hourly workers could lead to your employees leaving shortly after hiring them? Determining whether you’re hiring the right hourly employees from the start can be a challenging task. However, consider implementing the following steps when hiring employees to increase the likelihood of making successful hires:

    • Define the job requirements clearly – It’s essential to clearly define the job requirements and qualifications necessary for the position. This includes skills, education, experience, and any other essential criteria that the employee should possess. Having a clear understanding of the job requirements can help ensure that candidates are evaluated against relevant criteria.
    • Conduct thorough interviews – Employers should conduct thorough interviews that assess candidates’ skills, experience, and fit for the job. Asking behavior-based questions and assessing candidates’ problem-solving abilities and communication skills can significantly help identify candidates who are a good fit for the position.
    • Check references – Checking references can provide valuable insights into a candidate’s work experience and performance. Employers should contact previous employers and other references to confirm the candidate’s qualifications and suitability for the job.
    • Utilize pre-employment assessments – Pre-employment assessments, such as skills tests and personality assessments, can provide objective information regarding a candidate’s abilities and fit for the job. Employers should use assessments that are relevant to the job requirements and ensure that they are administered consistently to all candidates.

    Utilizing these strategies, employers can increase the likelihood of hiring the right hourly employees from the start. However, it’s also important to remember that no hiring process is foolproof, and it’s always possible an employee may not be the right fit for the job, despite the employer’s best efforts.

    GMS Is Here To Help

    So, we’ve discussed the challenges hourly workers face along with business owners trying to hire them and how you can combat the challenges. The next segment we will discuss is what exactly your hourly workers want. Once you have a team together, it’s time to find ways to retain them, so you don’t have to go through this never-ending hiring cycle. When you partner with GMS, we provide you with the resources to help you attract and retain quality talent. Contact us today to learn more.

  • Earlier this month, the Michigan House voted to expand the Elliott-Larsen Civil Rights Act to include protections for the LGBTQ community. Senate Bill Four passed with a vote of 64 in favor after passing in the Michigan Senate. The Elliott-Larsen Civil Rights Act substantially advanced the state’s effort to eliminate discrimination in employment, education, housing, public service, real estate transactions, and the use of public accommodations and to secure equal opportunity for all. This was a historic high point in Michigan’s tradition of protecting civil rights in 1976. Since then, amendments have further expanded the Act.

    Understanding Senate Bill Four

    Senate Bill Four explicitly includes protections for sexual orientation and gender identity. Ultimately, the bill would stop someone from hiring, evicting, or otherwise discriminating against individuals because they are LGBTQ. Sexual orientation is defined as “having an orientation for heterosexuality, homosexuality, bisexuality, or having a history of such an orientation or being identified with such an orientation” in this bill. Gender identity is defined as “having or being perceived as having a gender-related self-identity or expression whether or not associated with an individual’s assigned sex at birth.” The bill now heads to Michigan Governor Gretchen Whitmer.

    What The Bill Means For Employers

    As we wait for Governor Gretchen Whitmer’s vote, employers need to understand their responsibility. If the law passes and takes effect, employers could face repercussions if they are found to have discriminated against LGBTQ applicants or employees. This includes the following:

    • Rejecting job candidates 
    • Terminating their employment
    • Any other unfavorable workplace actions

    Alongside repercussions under this new law, employers could face civil lawsuits if they are found harassing employees based on their LGBTQ status. If the governor signs the bill into law, it will take effect 90 days later, so you must begin preparing now. While you may already have policies prohibiting sexual-orientation discrimination and gender identity discrimination in employment, now is the time to revisit those policies and see if any changes need to be made. Consider reviewing and revising the following:

    • Workplace policies and practices 
    • Managerial training materials
    • Employee antidiscrimination and anti-harassment training sessions
    • Interview and hiring protocols
    • Benefits offerings

    Alyse Kimble, GMS’ Training and Development Coordinator explained, “Good training teaches employees and managers that they have the right to work in a workplace free of discrimination and harassment. It also demonstrates an employer’s adherence to the laws and policies that prohibit that discrimination. Having a learning management system (LMS) platform that automates these trainings for easy assignment and tracks progress and completion is key for busy HR managers and business owners to ensure that their managers and staff are adhering to discrimination laws.”

    Prepare Now With GMS

    While GMS helps you stay compliant with ever-changing rules and regulations associated with your business, we do so much more than that. When implementing new laws, we ensure you follow every aspect of that law. If this new law in Michigan is passed, our HR experts will look at your employee handbook to determine what policies you have in place to protect the LGBTQ community and what we can do to improve these policies. In addition, utilizing an LMS is one of the best resources to train and educate your workforce on this topic. Your employees are your biggest asset. Let’s protect them together and ensure a compliant business starting today. Contact us to learn more.

  • There’s no question that many business owners are facing great economic uncertainty in today’s economy. In recent years, employees have become more specific about the types of jobs they want and the perks they expect from their employers. This trend can be attributed to several factors, including increased competition for top talent, a desire for work-life balance, and a growing awareness of the importance of job satisfaction. As a result, employers must be more flexible and creative in their hiring efforts to attract and retain employees. They may need to offer more competitive salaries, flexible work arrangements, and a wider range of benefits and perks to meet the expectations of their prospective employees. With that said, employers have run into new hiring challenges, including the following:

    Ultimately, employers that can effectively meet the needs and desires of their employees are more likely to attract top talent and build a strong and engaged workforce.

     

    Who Are Hourly Workers? 

    Unfortunately, the job market has impacted hourly workers more than salaried employees. Let’s start by understanding who an hourly employee is. An hourly employee is an employee who is paid a set wage for each hour and are generally entitled to overtime pay, if applicable.

    While the hourly wage rose 0.5%, an increase of 5.2% over the past year, it’s still not enough to keep up with inflation. In addition, it has never been more challenging to hire hourly workers. However, there are ways in which you can combat these challenges and hire the hourly workers you want and need for your business. Consider the following to help attract hourly workers:

    • Increase wages
    • Hire good leaders that your employees trust
    • Give your employees more control over their lives – offer a work/life balance 
    • Provide them with a clear path to their future within your business

    Additional Efforts You Can Take

    At the end of the day, your employees are your biggest asset. In a tight labor market, you need to stand out from your competition, especially when hiring hourly employees. At GMS, not only do we help create enticing job descriptions that grab the attention of candidates, but we also help you throughout the interview process to find the workers you need. In addition, we help you create a competitive benefits package that your hourly workers want and deserve. Come back later this week to check out additional information that will be beneficial in your search for hourly workers. Contact us today to learn more.

  • The country’s boom and bust cycle has led to hundreds of thousands of layoffs across the country in recent months. Technology and media-related organizations have taken the majority of headlines in this regard, including household names and employers such as Amazon, Microsoft, and Google. A layoff is the temporary or permanent termination of employment by an employer for reasons unrelated to the employee’s performance.

    Coming off the end of the year, many companies are currently reviewing annual budgets and attempting to adjust overhead costs to increase (or create) profitability. If this sounds familiar to your situation, it’s crucial that you proceed with caution. Avoid stumbling over legal issues that could cost your business more money than the money you’re trying to save by laying off your employees. Continue reading to understand the most common mistakes business owners make when they lay off employees.

    Failure To Follow Legal Requirements

    Business owners must follow legal requirements when laying off employees. One of the most common mistakes business owners make is being unaware of the Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act helps ensure advance notice in cases of qualified plant closings and mass layoffs. The U.S. Department of Labor has compliance assistance materials to assist workers and employers in understanding their rights and responsibilities under the provisions of WARN.

    The following are frequently asked questions when it comes to complying with the WARN Act:

    Am I covered by the WARN Act?

    This act requires employers with 100 or more full-time employees to provide at least 60 calendar days advance written notice of a worksite closing affecting 50 or more employees or a mass layoff affecting at least 50 employees and one-third of the worksite’s total workforce.

    If I’m considered a temporary layoff or furlough, do I need to provide workers with a notice under the WARN Act?

    A WARN Act notice must be given when there is an employment loss, as defined under the Act. A temporary layoff or furlough that lasts longer than six months is considered an employment loss.

    Will the Department of Labor provide me with a letter stating that I have complied with the WARN Act?

    Additional questions and answers can be found here. Failure to follow legal requirements can result in legal action against the business and could potentially damage your business’ reputation.

    Not Having A Clear Plan

    If you’ve come to the unfortunate realization that you are considering or have considered laying off employees, it’s critical that you have a plan in place. Be sure to document the process in which you choose and the steps you will take to ensure it’s the same for every layoff. Consider adding the following to your plan:

    • Intended post-layoff organizational structure
    • Business objectives
    • Identify job positions that are unnecessary or redundant 

    This ultimately helps you create a documentary record and avoid the legal risks caused by discrimination claims. Laying off employees is a significant decision that requires careful consideration and planning. Business owners need to have a clear plan that outlines the reasons for the layoffs, the process for selecting employees to be laid off, and the support that will be provided to the remaining employees.

    Hiring Replacements To Fill “Eliminated” Positions

    While you may already know this, it’s important to remind yourself that you should not eliminate a position and then fill it shortly after. The consequence could be a lawsuit on your hands and, most likely, hefty costs headed your way. The lawyer could argue that when you “eliminated” the position, it was a pretext for discrimination as you went and hired another individual for that same position shortly after. If you lay off an individual because you’re eliminating their position, then do just that. After six months, you can reevaluate the need.

    Not Communicating Effectively

    A common mistake business owners make when laying off employees is not communicating effectively. This should come as no surprise. When employers don’t communicate effectively, it leads to confusion for the employees you lay off. If it comes down to the fact that you’re making more money, why are you laying off your employees?

    To avoid this mistake, be clear about why you are laying off your employees. If you feel that appeasing your shareholders is more important than keeping individuals employed, explain that to these employees. It’s important to be honest and transparent about the reasons for the layoffs and their impact on the business and its employees. Failure to communicate effectively can lead to confusion, resentment, and distrust among employees.

    No Support For Those Who Are Affected

    Amidst a massive layoff season for large companies, we see many of these businesses lacking support for their laid-off employees. HR departments and management teams have decided to scale back what they spend on support, such as career coaching, for those affected by the layoff.

    Layoffs create a stressful and uncertain environment for employees. As a business owner, you should provide support and resources to help them through this challenging time. Consider providing them with access to the following:

    • Counseling services
    • Financial advice
    • Career coaching
    • Employee assistance programs (EAP)

    On the other hand, keep your support relevant. Remember in early 2022 when Peloton laid off about 20% of its workforce but gave them a free annual Peloton membership on their way out? Employees, and customers alike, were appalled by the company’s misstep. Support is good, but proper support is better.

    Not Considering Alternatives

    Business owners should always consider alternatives to layoffs before making a final decision. Currently, many businesses are tightening their belts and searching for methods to reduce costs without resorting to employee layoffs. While layoffs provide immediate savings to the organization, they ultimately come with long-run costs that businesses can suffer for years.

    So, if you’re leaving layoffs as a last resort, there are a variety of alternatives you can take to put your company in a position to navigate any obstacle thrown your way. Consider the following alternatives:

    • Furloughs
    • Offer employees a voluntary short-term sabbatical
    • Consider pay cuts
    • Establish a hiring freeze
    • Offer early retirement 
    • Cut work hours
    • Reduce insurance premiums

    Not considering these alternatives can have a negative impact on the morale and motivation of the remaining employees.

    How A PEO Can Help During These Challenging Times

    Laying off employees is never an easy decision for any business owner. It can be a difficult and emotional process; however, it’s sometimes necessary for the survival and success of your business. If it comes down to laying off employees, avoid these common mistakes mentioned above. Fortunately, when you partner with a professional employer organization (PEO) such as Group Management Services (GMS), we help you avoid these common mistakes. GMS experts provide you with the guidance and support you need. We ensure you follow legal requirements, communicate effectively, explore alternatives to layoffs, and support remaining employees. Contact us today to learn how we can help you during these challenging times.

     

    Frequently Asked Questions

    What’s the difference between a layoff and a furlough? 

    A layoff is the elimination of a position. A furlough is a temporary unpaid leave of absence or reduction in hours typically resulting from a lack of work or budget cuts. 

    When can I lay off employees? 

    If you’re expecting or seeing a significant decrease in business sales, you can institute layoffs. This looks different for every organization but may include one or more of the below situations: 

    End of a contract or a season

    End of casual/part-time work

    End of the school year

    Temporary shutdown of operations

    Permanent shutdown of operations

    Position eliminated/redundant

    Company restructuring

    Employee bankruptcy or receivership

    What will employees be paid on? 

    Employees terminated without cause and on layoff will likely receive employment insurance (EI). For most individuals, the basic rate for calculating EI benefits is 55% of the average insurable weekly earnings, up to a maximum amount. 

    Can my employee work while on EI? 

    Yes, you can recall employees for short periods of work, but it must be under a week. 

    How long is a layoff for? 

    The maximum time for a temporary layoff has been extended from 60 to 120 days to ensure temporarily laid-off employees stay attached to a job longer. This change was retroactive for any temporary layoffs related to COVID-19.

    How do I recall employees back to work?

    Employers must provide a written notice to the laid-off employee, and it must include the following:

    Be in writing

    Be served on the employee

    State that the employee must return to work within seven days of the date the recall notice is served on the employee

    How are positions identified for layoff? 

    Before implementing a layoff, agencies conduct workforce planning processes. The Department Director or Administrator must determine which areas will be affected based on the following criteria:

    Geographical location

    Class series

    Class and applicable option

    Full or part-time positions

    What information is included in a layoff notice? 

    A layoff notice must include transfer or displacement options for:

    Statewide transfer within your department

    Voluntary demotion to another position within the department and geographical location

    Move back to the most recent former class

    How much notice of layoff should my employees get?

    Permanent employees must be given a minimum of 30 days written notice.