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  • In August, employers slowed hiring, pointing to a cooling labor market and rising interest rates. The Labor Department reported that employers had added 315,000 jobs in August, a major downfall from 520,000 in July. The unemployment rate rose to 3.7% from 3.5%. Economists say the rise in unemployment represents individuals who began looking for work and were counted as unemployed.

    The continued growth of jobs shows that the economy continues to expand, even as the gross domestic product contracted during the year’s first half. Hiring has been one of the bright spots in this slowing economy. Employers have added an average of 380,000 jobs each month over the past three months. While the government has estimated the economy has shrunk in the first six months of 2022, an informal definition of a recession, employers still increased jobs.

    Overview Of August

    Wage growth in August continued to slow, with average hourly pay rising 5.2% for all workers and 6.1% for production and nonsupervisory workers. Nonsupervisory workers exclude managers and make up more than 80% of the workforce. Consumer prices have increased 8.5% in the last 12 months. As a result, most employees’ paychecks aren’t keeping up with the rising costs. In August, employers added:

    • 68,000 jobs in professional and business services
    • 48,000 in healthcare
    • 44,000 in retail
    • 31,000 in leisure and hospitality 
    • 22,000 in manufacturing

    What The Future Looks Like

    While the economy is facing unprecedented times, economists have given encouraging signs in recent reports. The participation rate, which measures how many people are working or looking for jobs, rose to 62.4%. This now matches its level in March, which marks a post-pandemic high. While many industries have recovered from the jobs lost during the COVID-19 recession, some businesses are still falling behind. Even though the overall economy is at a turning point, the labor market seems to be on the rise.

    How GMS Comes Into Play

    While no individual can necessarily predict what the future holds for businesses, there are specific steps you can take to be proactive. While unemployment is rising, what can you do as a business owner? If you have open positions but are struggling to fill those with quality talent, GMS is here to help. Our HR experts are here to write enticing job descriptions, advertise open positions, and conduct interviews to find the best talent for your business. Fear no more. GMS is here to make your business simpler, safer, and stronger. Contact us today to get started.

  • The NorthShore University HealthSystem agreed to pay more than $10.3 million to resolve allegations over the COVID-19 vaccine mandate. Liberty Counsel, a Christian organization, filed a lawsuit on behalf of employees who were denied a religious exemption from the health system’s COVID-19 vaccine mandate.

    The class action settlement against NorthShore University HealthSystem is on behalf of more than 500 health care workers. Among those workers, half became compliant with the vaccine policy, and the other half were fired or resigned based upon their religious objection to receiving a COVID-19 vaccine. This is the first-of-its-kind class action settlement against a private employer who unlawfully denied hundreds of religious exemption requests for COVID-19 vaccines.

    What The Agreement Means

    As part of the agreement, Liberty Counsel stated that NorthShore will change its policy to allow unvaccinated employees to work if they have an approved religious exemption. All religious exemptions are now considered on a case-by-case basis rather than denied to all employees.

    Employees who are unvaccinated and were let go because they claimed a religious exemption now have the opportunity to take their jobs back. In addition, employees who quit or were fired will receive about $25,000 each. The original 13 plaintiffs who filed the lawsuit will get $20,000 more. Employees who agreed to get vaccinated despite their religious objections could potentially receive up to $3,000.

    How This Impacts Businesses

    If you’re a business owner and want to mandate the COVID-19 vaccination, you must consider all religious exemptions, you must notify employees of the exemption process, and what forms should be utilized. Employers can mandate that all employees receive the COVID-19 vaccine. However, the policy must be job-related and consistent with business needs. It’s the employer’s responsibility to show that an unvaccinated employee will pose a direct threat to the health or safety of other employees.

    What Next?

    As an employer, listening to your employees’ needs is vital. When it comes to mandating the COVID-19 vaccine within the workplace, it can stir up issues among employees. Ultimately, you want to do what’s best for your employees. When you partner with GMS, we work with you to provide an employee handbook that will provide your employees with all the information they need to know about rules and regulations. Contact GMS to learn how we can help you and your business.

  • The U.S. Citizenship and Immigration Services (USCIS) received adequate petitions to reach the congressionally mandated 65,000 H-1B visa regular cap. In addition, the USCIS reached the 20,000 H-1B visa U.S. advanced degree exemption, the master’s cap, for the fiscal year (FY) 2023. This is set to begin October 1st, 2022. To account for employers who do not follow through with the petition process or were denied, rejected, or withdrawn, additional petitions are typically selected.

    An H-1B visa is a nonimmigrant classification that applies to individuals who wish to perform services in a specialty occupation, services of exceptional merit, and ability relating to a Department of Defense (DOD) cooperative research and development, or services as a fashion model of distinguished merit or ability.

    The USCIS has completed sending non-selection notifications to registrants’ online accounts. H-1B registrations that were submitted correctly for FY 2023 but were not selected will appear as:

    • Not selected: Not selected – not eligible to file an H-1B cap petition based on this registration

    They will also continue to accept and process petitions exempt from the cap. Current H-1B workers whose cap number hasn’t expired but who were previously counted against the cap are exempt from the FY 2023 H-1B cap. The USCIS will continue to accept, and process petitions filed to:

    • Extend the time a current H-1B worker may remain in the U.S. 
    • Change the terms of employment for current H-1B workers
    • Allow current H-1B workers to change employers
    • Allow current H-1B workers to work concurrently in additional H-1B positions

    Employers can register foreign workers who weren’t selected for an H-1B visa when the FY 2024 cap season begins in the spring of 2023.

    GMS Is Here To Help

    GMS helps you stay up to date on all policies. In addition, our experts provide you with general guidance and advice about Visa questions and concerns, ensuring compliance while hiring employees from another country. While the H-1B visa cap for FY 2023 has been reached, let GMS assist with your application for FY 2024. Contact us today.

  • On August 18th, a proposed rule from Immigration and Customs Enforcement (ICE) could give employers more options when reviewing I-9 documents submitted by new hires. One of these options could allow the permanent ability to review Form I-9 documents remotely.

    Should this rule get finalized, it would create a framework under which the U.S. Department of Homeland Security could “pilot various options, respond to emergencies similar to the COVID-19 pandemic, or implement permanent flexibilities upon a specific determination as to the level of security, including, but not limited to, fraud risk.” Following this proposed rule, there will be a 60-day comment period. A comment period is the range of time the public has to submit input before an agency makes a final decision on a proposed rule.

    Previous I-9 Review Process

    Before the proposed rule, ICE required all employers to examine worker identification in person as part of the Form I-9 completion process. As an employer, businesses would often contract with a third party to review these documents if you had employees who worked from a different location. Recently, ICE allowed remote review for some employers due to the COVID-19 pandemic. While this is still in place, employers must follow up with an in-person inspection.

    A Work In Progress 

    Due to the lengthy federal rulemaking process, there are still a few questions that need to be answered. The agency is requesting input on several concerns from employers that include:

    • Ways to reduce fraud
    • How to avoid discrimination 
    • Considering various document requirements applicable to the remote examination 
    • Detection of fraudulent document detection or antidiscrimination training requirements for employers
    • Will employers enrolled in E-Verify be able to use alternative procedures 

    Since the beginning of COVID-19, many employers have opted for remote review options. However, they are requesting to improve remote examination methods.

    I-9 Review Made Easy

    At GMS, we provide our clients with paperless onboarding, benefits enrollment, payroll, and employee training to help your new employee get acclimated and set up for success. As a business owner, you understand the extensive amount of time it takes to onboard a new hire. Implementing our streamlined onboarding process allows your team to be easily guided through each step. Simplify the hiring process, and let GMS make it easy. Contact us today to learn more.

  • The New Jersey Division on Civil Rights proposed new regulations earlier this year, allowing employers to place their required posters on the internet or intranet. Typically, this would be placed on a bulletin in the workplace. The DCR potential regulations allow employers to satisfy the state’s Law Against Discrimination (LAD) and Family Leave Act (NJFLA).

    What The Act Entails

    The regulations proposed creating a new annual LAD and NJFLA notice distribution requirement. The regulation became final on August 1st. One of the significant requirements, according to SHRM, is, “In the event that an employer has an internet site or intranet site for use by its employees to which all employees have access, and the employer customarily posts notices to affected employees or other affected individuals electronically on the site, posting of the official LAD and NJFLA posters.” 

    Employers must post their posters and distribute a copy to each employee. This can be completed annually, on or before December 31st. This must also be completed upon employee request. Another way to receive the posters can be through email delivery. While the process is available online, printed materials may still be delivered. This can be done through paycheck inserts, brochures, or information packets.

    The posting requirements are similar to the following notices: 

    • The state gender equity
    • Reporting and recordkeeping requirements 
    • Conscious Employee Protection Act (CEPA)
    • Family leave insurance

    Why GMS

    Ensuring that your business stays up on regulatory changes is vital. It can become an overwhelming process amongst other daily tasks. When you lean on GMS, the process is simple. Our HRIS systems allow your employees access the tools and materials they need. Contact us today to learn more!

  • Employees are the backbone of every company, making employee retention vital. Business Insider called 2021 the “year of the quit.” In October of 2021 alone, 4.2 million people left their jobs in a mass workplace exodus known as the Great Resignation. Even now, the latest employee turnover statistics find that one-third of employees quit after six months of being on the job.

    Employee retention is about not only keeping employees happy and engaged but also setting your business up for long-term success. Let’s examine why turnover happens, how much it can cost a business, and how your business can reduce high employee turnover.

    What Is Employee Turnover And What Causes It?

    Employee turnover is defined as the number or percentage of employees that leave a company on a monthly, quarterly, or annual basis. Employee turnover can be voluntary (the employee chooses to go) or involuntary (you decide to terminate the employee). Regardless of who made the decision, high employee turnover is an indication that employee retention is low. There are various reasons for this, including:

    • Employee burnout
    • Inconsistent expectations set by managers and supervisors
    • Lack of employee appreciation and recognition
    • Lack of professional growth and career advancement
    • Low pay
    • Less comprehensive benefits
    • Poor workplace culture

    What Is The Cost Of Employee Turnover?

    There are many ways that losing an employee can hurt your bottom line. Turnover creates several direct and indirect costs that affect your business, including:

    • Hiring expenses: It costs money and time to advertise for a new position, interview candidates, perform background checks, and hire a candidate.
    • Productivity loss: While a company looks for a new employee, other employees might have to cover that employee’s tasks while taking care of their own, resulting in productivity loss.
    • Training issues: New employees need to be onboarded and trained, and it takes the average company 31.5 hours to train a new hire, which, on average, costs $1,888 for companies with fewer than 500 employees.
    • Lower employee morale: Low employee morale leads to increased absenteeism, costing an organization money and productivity.

    The exact costs caused by turnover can vary from employee to employee. Investopedia reported that it costs a company, on average, $3,500 in turnover costs to replace an employee only making $8 an hour. Their report also shows that it takes up to six months or more for a company to break even on its investment for a new hire.

    Salaried employees who leave cost businesses much more than their hourly counterparts. The Society for Human Resource Management (SHRM) found that turnover costs an average of half to three-quarters of an employee’s salary. For someone making $100,000, that’s a potential loss of $50,000 to $75,000 caused by turnover. Those numbers can range even higher for more specialized or upper management positions. For salaried employees, LinkedIn reported that turnover costs can cost 1.5-2 times their salary.

    A group of coworkers strategizing how to reduce high employee turnover.

    Different Ways Small Businesses Can Reduce High Employee Turnover

    Employees are more likely to stay at a company that they feel meet their needs on multiple levels. The following measures can help you reduce high employee turnover.

    Offer your employees competitive pay

    In 2021, Pew Research Center reported that 63% of employees left their jobs because of low pay. If you find that employees are regularly leaving for more money elsewhere, it may be time to examine your compensation structure to see if you’re competitive with the rest of the industry.

    You may also want to identify specific employees who would be particularly painful to lose. Sometimes paying an employee a few thousand dollars more is a smart way to retain top talent and lessen the chances of losing tens of thousands of dollars in turnover costs.

    Provide your employees with comprehensive benefits packages

    An alternative to paying employees more money is enhancing your benefits package. According to the Association of International Certified Professional Accountants (AICPA), 80% of Americans prefer workplace benefits over extra salary. Policy Advice also reported in 2021 that only 49% of the country’s total population receives group health insurance.

    If your company isn’t a part of this percentage, you’ll be more likely to recruit and retain more employees by offering them group health coverage. If your company is a part of this percentage, you can offer supplemental benefits to give your company an even greater competitive advantage. These benefits include:

    Foster workplace flexibility

    Allowing hybrid or remote work styles gives your business a competitive edge when it comes to retaining talent and recruiting new employees. A 2022 poll conducted by Forbes revealed that 63% of employees would feel more empowered if they had more flexibility. In addition, employees say having the freedom to choose when to come into the office matters as much as traditional benefits such as a 401(k) plan.

    Flexibility can also help eliminate or potentially offset turnover costs in other surprising ways. A Gartner, Inc. CFO survey revealed that 74% of companies planned to permanently shift to remote work after the pandemic ended, partly because of a decrease in operating costs and increased business profits. It Is estimated that business owners can save up to $11,000 a year by switching to remote work because they’ll pay less in overhead and utility costs.

    Make recruiting and retaining employees a priority

    An excellent hiring and onboarding experience can help limit the odds that new hires will leave within their first year. According to the Brandon Hall Group, a well-organized onboarding process improves new hire retention by 82%.

    For this reason, many companies outsource a company to take care of their employee recruiting services. You can partner with a professional employer organization (PEO) to write a quality job description that attracts top talent. Also, recruitment process outsourcing (RPO) reduces recruitment costs, ensures candidate quality, and uses applicant-tracking systems (ATS) to lead to cost savings and an improved recruitment process.

    Care about culture

    Even though it’s almost been a year since the Great Resignation, employees leaving their jobs is still trending. A 2022 survey from Flex jobs revealed that 62% of people leave their jobs because of company culture issues. Implementing a positive workplace culture includes:

    • Creating employee recognition programs
    • Setting clear and consistent departmental goals
    • Promoting diversity and inclusion
    • Accepting and utilizing your employees’ feedback

    You also want to create a workplace culture that doesn’t lead to employee burnout. Employee burnout leads to more absenteeism, resulting in lower productivity and higher profit loss. Offering your employees ample paid time off (PTO) ensures that they return to work feeling revitalized and refreshed. Ernst & Young reported that for every 10 hours of PTO taken, employee performance ratings improve by 8%. Unsure of how much PTO to offer your employees? Check out our post on How To Create A PTO Policy For Your Business.

    Analyze employee turnover

    If you have high employee turnover, it’s best to analyze why. One way to do so is by implementing employee exit interviews and surveys and looking at the data. Staff feedback about current workplace culture and practices is also helpful and can help identify potential reasons employees are leaving your company.

    Save Time And Money By Reducing High Employee Turnover

    It’s not easy to find good employees, and it’s even harder to replace them. Between turnover costs and the impact of losing good talent, companies must have retention and recruitment strategies in place to protect their bottom line.

    Of course, employing those strategies takes a lot of valuable time. That’s why GMS partners with employers to help you save time and money and reduce high employee turnover. Contact GMS about our benefits administration, recruiting, onboarding, and training services today.

  • While there have been multiple signs that the labor market is weakening, the number of Americans who filed for unemployment benefits has increased again. Over 260,000 workers filed for new unemployment benefits throughout the last week of July.

    In earlier months this year, the labor market had been one of the few bright spots in the economy. The unemployment rate remained steady at 3.6% for the fourth consecutive month, reaching a historic low. However, with unemployment claims rising to the highest level since November 2021, businesses such as Apple, Walmart, and Microsoft, are announcing hiring freezes and/or layoffs.

    The U.S. government announced that businesses had posted fewer positions amid concerns that the economy was weakening. In fact, for every unemployed individual, there are currently almost two job vacancies.

    Unemployment Claims Management

    The unemployment claims process can be cumbersome between changing compliance regulations and increasing costs for small business owners. Your company’s bottom line can be severely affected by rising unemployment insurance rates due to an increase in unemployment claims. When you partner with GMS, you no longer need to spend time trying to protect your business from unemployment claims and taxes. Contact us today.

  • In late July, the World Health Organization (WHO) declared monkeypox a “public health emergency of international concern.” While employers are still dealing with the effects of COVID-19 within the workplace, the global spread of monkeypox, the rise of related health advisories, and the extensive media coverage about the virus leave employers concerned.

    Understanding Monkeypox

    The Centers for Disease Control (CDC) and Prevention define monkeypox as: 

    “Monkeypox is a rare disease caused by infection with the monkeypox virus. The monkeypox virus is part of the same family of viruses as variola virus, which causes smallpox. Monkeypox symptoms are similar to smallpox but milder, and monkeypox is rarely fatal.”

    While experts are still assessing how this disease is transmitted, it is currently understood to be transmitted and spreads from person to person through:

    • Direct contact with the infectious rash, scabs, or bodily fluids
    • Respiratory secretions during prolonged, face-to-face contact
    • Touching items that previously touched the infectious rash or bodily fluids
    • Pregnant women can spread the virus to their fetus through the placenta

    Steps Employers Should Take

    While the health risk of monkeypox to the general public, including employees in non-healthcare settings, remains low, it’s still critical to evaluate current policies. A good starting point for a business owner is to reinforce specific health and safety protocols adopted during the COVID-19 pandemic. In addition, it’s vital to consider how you can limit the spread of monkeypox throughout the office. The following are precautions you should take, including:

    • Wash hands often with soap and water
    • Have sanitation stations located throughout the office 
    • Routinely clean all frequently touched surfaces in the workplace
    • Avoid close, skin-to-skin contact with people who have a rash
    • Avoid close contact with people who are sick
    • Stay home when you feel sick 

    GMS Is Here To Protect You

    While GMS can’t stop the spread of monkeypox, our HR experts can help you establish health guidelines and update handbooks to ensure your policies protect you as an employer. We help clients write safety manuals to ensure the safety of their employees. There’s no need to stress about the what-ifs and the endless number of questions you may have. Partner with GMS so we can help you take a proactive approach to ensure the safety and well-being of your employees. Contact us today. 

  • Since U.S. businesses are still having a difficult time filling open positions with quality talent, employers anticipate pay to go up in 2023. According to the Bureau of Labor Statistics (BLS), there were more than 11 million job openings at the end of May 2022. In addition, approximately four million workers quit each month. The question employers keep asking themselves is, why are so many employees leaving their jobs?

    Americans are quitting their jobs for multiple reasons, including: 

    • Seeking higher pay
    • Remote work is appealing to individuals 
    • Rejecting return to office policies 
    • Burnt out

    The Response From Employers 

    With a labor market that has more open jobs than individuals to fill them, businesses have been forced to stay current with what’s happening in the employee marketplace and how that affects pay. 96% of companies have begun increasing salary budgets. A study by WTW showed that the average salary increase hit 4.9% in 2022 compared to a four percent increase back in 2021. However, it is more important than ever for businesses to have a strategic plan while increasing salaries.

    Additional insights from the WTW survey show: 

    • 46% of employers cited employees have higher expectations for wage increases because of inflation
    • Two in three employers are budgeting for higher pay raises this year
    • 90% of employers are having trouble attracting talent
    • 75% of employers said the tight labor market is the main reason for increasing their salary budgets

    Will These Efforts Be Enough? 

    The question remains whether pay increases will be enough for workers as they continue to battle rising prices. Despite a 4.1% salary budget increase, businesses will still fall behind inflation with these pay raises. In turn, workers’ take-home pay is weakened, reducing their buying power. Even though workers continue to hold the upper hand in the job market, many still fear a recession is imminent, and they question the economy’s state.

    GMS Can Take Pressure Off Your Shoulders

    Although there is no way to predict the future and your employees’ response, GMS can certainly relieve you of some of the pressure you may be feeling. Our team of experts works diligently with your team to attract and retain quality employees. Our HR experts can help business owners conduct a salary analysis to determine the correct salary to offer employees based on the market conditions. No need to worry during these unprecedented times; allow GMS to take on the administrative burdens of running your business. Contact us today.

  • Legal issues must be considered when determining a hybrid work model. A hybrid work model combines working in the office with working remotely. A survey discovered that 68% of U.S. employees prefer a permanent hybrid work model after the pandemic ends. While a hybrid work environment may be a good solution for some, it also probes a handful of challenges.

    Legal Challenges For Hybrid Work Environments

    If you’re a business owner and you’ve considered transitioning into a hybrid work environment, you might want to consider the potential legal issues that come with the change. Hybrid work impacts tax compliance, reimbursement of working expenses, and the prohibition of discrimination. Regarding tax and legal compliance, your employees’ work and home locations must be up-to-date and consistent across all platforms.

    In addition, corporate tax rates and unemployment tax rates vary by state. Working in a state where a person does not live may result in income tax withholding in both states.

    Exempt or non-exempt

    Another challenge you may face when deciding on a hybrid work schedule is dealing with exempt and non-exempt workers. Should you have a non-exempt employee working a hybrid schedule, it will most likely be more challenging for the employer to comply with federal and state wage and hour laws. Employers must adhere to overtime pay, meal breaks, mandatory rest, and more.

    Discrimination 

    In addition, as an employer, discriminating against people from legally protected groups is unacceptable. You cannot allow or deny hybrid work for individuals based on gender, age, race, religion, and others. To ensure you are complying, have a written policy outlining the criteria that determine whether to allow or deny a hybrid work schedule request.

    How GMS Benefits Your Business

    Since many businesses have begun implementing a hybrid work schedule, it’s vital for the growth of your business to do what’s best for your employees. A study showed that 63% of employers currently offer hybrid work opportunities. Knowing that, it may be in your best interest to provide a hybrid work schedule to your employees to retain and attract quality talent. Want to learn more? Contact us today.