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  • 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.

  • Despite the ongoing construction boom, the construction industry faces several challenges in today’s economy. There continues to be a shortage of building materials, paired with prices spiking significantly, which drives up project and rebuilding costs – not to mention the cost of labor due to a nationwide workforce shortage. With all those factors paired together, construction costs continue to skyrocket.

    Businesses within this industry are engaged in new construction or reconstruction activities, including the repair or renovation of existing commercial and residential structures, roadways, and bridge construction. The following are typical work activities in the construction industry:

    • Painting
    • Roofing
    • Siding
    • Sheet metal
    • Water well drilling 
    • Installation of flooring
    • Landscaping
    • Sandblasting

    How A PEO Can Help Your Business During These Challenging Times

    Despite these challenges, the construction industry is expected to grow rapidly within the coming years, driven by factors such as urbanization, population growth, and government investment in infrastructure. Businesses within this industry must adapt to these challenges to remain competitive and meet the needs of a rapidly changing economy.

    Follow along to see the additional challenges these businesses face and how a professional employer organization (PEO) can help you overcome them.

    Regulation

    Laws and regulations are constantly changing and affect many construction businesses. If you have a business operating in multiple states, you must comply with all laws in each state. Business owners often have difficulty juggling the different legalities, which leads to costly fines. It’s easy to miss an update about a change in the current laws and/or new legislation relevant to you. When you partner with a PEO, you’re provided with HR experts who ensure you comply with these ever-changing rules and regulations, so you focus on other aspects of your business.

    Minimize accidents in a high-risk industry

    It’s no surprise that this industry is prone to accidents which can lead to hefty penalties. While falls continue to be the top cause of injury on construction job sites, the Occupational Safety and Health Administration (OSHA) compiled a list of the most common violations they see within the construction industry, including:

    • Fall protection, general requirements 
    • Hazard communication 
    • Scaffolding
    • Lockout/tagout
    • Respiratory protection 
    • Ladders
    • Powered industrial trucks 
    • Fall protection, training requirements 
    • Machine guarding 
    • Personal protective and lifestyle equipment, eye, and face protection

    Failing to provide your employees with safety standards enforced by OSHA, you could face hefty penalties. In 2022, the average penalty for a willful or repeated violation was $145,027. While all of this can have detrimental effects on your business, there are ways you can mitigate these risks. It’s essential that you have safety programs for injury prevention. Without a healthy and efficient workforce, you cannot keep operations running and thriving. Partnering with a PEO takes all of this off your shoulders. A PEO takes a proactive approach to workplace safety through various services, including the following:

    • Onsite consulting 
    • Jobsite inspections 
    • Accident and injury investigations
    • Training
    • OSHA inspection and citation assistance
    • And so much more

    At the end of the day, partnering with a PEO allows you to dedicate more time to monitoring and coaching employees through safety best practices.

    Retaining and recruiting top talent

    As employees continue to leave their careers for better opportunities, it’s essential that you find ways in which you can stand out from your competition. The easiest way to do that is by offering a competitive benefits package that includes benefits your employees want and need to survive during these challenging times, ultimately helping you attract and retain top talent. Studies show businesses whose employees rated them highly on benefits saw a 56% lower attrition rate.

    Employees in this industry want access to the following benefits:

    • Health insurance 
    • Employer-matching retirement plans
    • Life and disability coverages
    • Paid time off (PTO)
    • Financial incentives and performance bonuses

    A partnership with a PEO enables you to develop and administer a comprehensive benefits package. They group small to medium-sized businesses to provide you with benefits at price points that are typically only available to larger companies. Kalynn Muha, GMS’ Recruitment Manager, expressed, “By partnering with a PEO, you’re able to utilize their experienced recruiters to stay on top of the current job market trends. This is important in the construction industry as it allows business owners to remain in  the field while HR experts dedicate their time to finding the right talent for your business.”

    Workers’ compensation coverage

    As a business owner, one of your main responsibilities is ensuring that your employees are cared for. That’s where workers’ compensation coverage comes into play. Should an accident or illness in the workplace take place, this coverage prevents you from being liable for lost wages, medical expenses, or being vulnerable to costly lawsuits. The U.S. Bureau of Labor Statistics reports 150,000 injuries annually on construction job sites. That’s exactly why you need this coverage, as accidents are bound to happen.

    PEOs understand how important your employees are. As the backbone of your business, the last thing you want is for your employees to get injured. However, should an accident occur, it’s critical to have a highly trained team to help facilitate claims management. With the construction industry being high-risk, it’s quite challenging for businesses to find an insurance carrier that gives them a reasonable price. Fortunately, PEOs offer a competitively priced solution for high-risk businesses that often helps improve long-term workers’ compensation costs in the long run.

    Reduces the burden of filing taxes

    Tax season is arguably the most dreaded time of the year for small business owners. Tax-related tasks take up so much of one’s time and are complicated, which can cause more mistakes to occur. Experts found that business owners spend nearly five hours filing and paying payroll taxes pay period. A PEO can take over payroll-related federal, state, and local tax filings. Whether during the busy tax season or year-round, PEOs are there throughout the entire process so you focus on growing your business.

    Partner With A PEO Such As GMS

    As a business owner in a high-risk industry, partnering with a PEO such as Group Management Services (GMS) could be the solution you’ve been looking for. Partnering with GMS helps businesses in the construction industry save money on HR-related expenses such as employee benefits, payroll processing, and workers’ compensation. We also help businesses comply with employment laws and regulations, reducing the risk of costly penalties and fines. Nearly a quarter of our clients are based in the construction industry. All your HR tasks are handled under one roof and taken on by our dedicated HR experts. Whether you’re a roofing or sheet metal business, we’ve got you covered. Contact us today to learn how we can help your construction business today.

     

  • As quarter one of 2023 is coming to an end, it’s never too soon to start thinking about your temporary workers coming on board in the summertime. You must familiarize yourself with child labor laws that could affect whom you hire. Over concerns that minors are being forced to work hazardous jobs, the Biden Administration is setting up a task force to vet U.S. sponsors of migrant children more thoroughly and increase efforts to investigate and prosecute child exploitation cases in workplaces across the country.

    Various investigations revealed that children are crossing the border without their parents and are being forced into punishing jobs that ignore child labor laws. The Department of Labor (DOL) stated that they will target factories and suppliers that illegally employ children and larger companies with child labor in their supply chains. These migrant children typically use false identification and find jobs through staffing agencies that don’t verify their Social Security numbers. The DOL recorded a 70% increase in children illegally employed by companies within the last five years. In 2022, they found that 3,800 children had been employed by more than 800 companies in violation of child labor laws.

    Understanding Child Labor Laws In The U.S. 

    The Fair Labor Standard Act (FLSA) established minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and Federal, State, and local governments. Under the FLSA, children of any age are generally permitted to work for businesses entirely owned by their parents, except those under the age of 16 may not be employed in mining or manufacturing. In addition, no one under 18 may be employed in any occupation the Secretary of Labor has declared hazardous. The following are occupations that are banned for all minors under the age of 18:

    • Manufacturing or storing explosives
    • Driving a motor vehicle or working as an outside helper on motor vehicles
    • Coal mining
    • Occupations in forest fire fighting, forest fire prevention, timber tract, forestry service, and occupations in logging and sawmilling operations
    • Power-driven woodworking machines
    • Exposure to radioactive substances and ionizing radiation
    • Power-driven hoisting apparatus
    • Power-driven metal-forming, punching, and shearing machines
    • Power-driven meat-processing machines, slaughtering, and meat-packing plants
    • Power-driven bakery machines
    • Balers, compactors, and power-driven paper-products machines
    • Manufacturing of brick, tile, and related products
    • Power-driven circular saws, band saws, guillotine shears, chain saws, reciprocating saws, woodchippers, and abrasive cutting discs
    • Wrecking, demolition, and ship-breaking operations
    • Roofing operations and work performed on or about a roof
    • Trenching and excavation operations

    In addition, children ages 14 and 15 may be employed outside of school hours in various non-manufacturing and non-hazardous jobs for limited periods of time and under specified conditions. Children under 14 cannot be employed in non-agricultural occupations covered by the FLSA. The following are the hours and times of the day that 14 and 15-year-olds may work:

    • Outside of school hours
    • No more than three hours on a school day, including Fridays
    • No more than eight hours on a non-school day
    • No more than 18 hours during a week when school is in session
    • No more than 40 hours during a week when school is not in session
    • Between 7:00 a.m. and 7:00 p.m. – except between June 1st and Labor day, when the evening hour is extended to 9:00 p.m.

    Additional information can be found here. 

    Your Responsibilities As A Business Owner

    As a business owner, you must comply with these labor laws, even if the child is yours. As we begin approaching a busy summer season when many businesses start hiring minors, it’s essential that you familiarize yourself with the federal and state laws relating to the employment of minors. Fortunately, when you partner with GMS, we ensure you remain compliant and hire minors correctly. We confirm they’re working the correct hours and times. In addition, we assist you with posting your state and federal labor posters throughout your business, so your employees understand their rights. Ultimately, we help your business runs simpler, safer, and stronger. Contact us today to learn how we can help you.

  • Remote work is a term that will never leave the workplace vocabulary. Now, more than ever, employees want to work from home, full-time, or part-time. As their employer, it’s essential that you listen to their needs and try your best to give them what they want. We get it. When the COVID-19 pandemic arose, the thought of having your employees work virtually was a thought we never thought possible. But it worked! 77% of those who work remotely at least a few days per month showed an increase in productivity. In addition, studies show that 30% of employees completed more work in less time.

    As a business owner, however, it’s your call at the end of the day to determine if your employees should be working remotely or if they need to work on-site. Whatever you decide, we’ve provided you with various resources to help you throughout your decision-making process. We created a guide, “The Guide To Managing A Remote Team,” that will take you step by step and show you how to manage your remote team more effectively should you choose that route. News flash! It will be challenging, but if your employees want this benefit, and studies show it actually increases productivity amongst your employees, why not give your employees what they want?

    Giving The People What They Want 

    Whether you’re ready to make that jump in providing your employees with the benefit of a more flexible work schedule or you’re still questioning it, let’s ask ourselves the following questions.

    How do my employees complete their work productively?

    You most likely have a workforce of individuals from all different age demographics. Whether they’re recent college graduates or have been in the workforce for over 30 years, they all work differently. It’s your job to hear from your employees and determine how they can be most productive at work. Some may say they prefer working in the office five days a week, while others say they’re more productive when working from home every day. Others may enjoy having the balance of working from home one or two days a week and in the office the rest of the week. 42% of individuals aged 25 to 34 prefer to work from home. You must determine what works best for each employee and accommodate their needs.

    What is the purpose of your office?

    While pandemic restrictions have spindled down and our lives are trying to return to the pre-pandemic norm, offices remain empty. As we’ve discussed, your employees enjoy the flexibility of completing their work in the comfort of their own homes. With this type of workforce, it’s essential that you take time to think about your office’s purpose. A survey showed that 82% of employees believe that having a purpose is essential for their company. Purpose shapes your company’s strategy, engages customers and community, and drives choices at moments of truth. Your company’s purpose addresses the fundamental question of “why.” How the workforce is running in today’s economy means it will take more effort to attract your employees to come into the office. Consider designing a space that fosters human connection and creates tailored, authentic experiences.

    Do you clearly define terms and roles?

    You may run a business with employees who simply cannot work remotely. You must clearly state who can work remotely. Consider creating a list of positions that can be done hybrid or fully remote and those that can’t. You must have a clear explanation as to why some employees can work remotely while others cannot. In addition, clearly define your remote workers’ expectations, when they should be working, if they need to come into the office, how often, and so much more. This step is critical as it dictates how productive your workers will be once you implement a flexible work schedule.

    What Now?

    We get it. It’s a lot to process, and it can be overwhelming. At GMS, we make this process as seamless as possible. Our role as a professional employer organization (PEO) is to take on these administrative burdens, so you no longer have to deal with them. We can help write job descriptions that clearly state if the role is hybrid, completely remote, or in the office. In addition, we can update your employee handbooks to reflect the changes to your employees’ roles in a remote setting. At GMS, we do everything from benefits and risk management to payroll and human resources. Count on us and contact us today to learn more.