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  • Workplace Culture Can Help You Attract And Retain Top Talent 

    Company culture, a once cliché term, is now at the forefront of every leader’s brain – as it should be. Pair the up-and-coming millennial generation that continues to shift the nation’s workforce with the hundreds of thousands of employees who have become accustomed to working at home over the last year and a half, and there you have it… The Great Resignation. 

    According to the U.S. Department of Labor, during the months of April, May, and June 2021, a total of 11.5 million workers quit their jobs. This voluntary workforce mass exodus has left businesses of all sizes and industries wondering how, if at all, they could combat such an occurrence.  

    As a business owner, you likely are already aware that a solid culture could be your best defense in the fight. But, what you may not have realized is culture isn’t the casual dress code Fridays and suction-cup basketball hoops on the wall that once deemed an organization as a good place to work. Now, culture is developed on the premise of a much different set of values, including work-life balance, inspiring leadership, and professional development – just to name a few.  

    Every company will develop a certain type of culture over time, but it is your job to control the values, beliefs, and attitudes you create. Keeping an eye on this can help boost productivity and decrease both turnover and negative behaviors. According to Balance Careers, your employees are more likely to enjoy their work and be more productive if you focus efforts on culture and making sure that your employees are happy while getting the job done. It’s not just about your current employees, though. If you’re looking to grow your business, consider how your culture may appear to candidates. 56% of workers ranked a strong workplace culture as more important than salary, with more than three-in-four workers saying they’d consider a company’s culture before applying for a job there.  

    Five Aspects That Drive Your Culture 

    There are five aspects that can impact your company culture: opportunity, success, appreciation, and well-being, and purpose. All five aspects are arguably subjective, but equally important.  

    • Opportunity: Opportunity can look different for every role and every employee. Is it the opportunity to learn a new skill or the opportunity to one day have a higher title? If opportunity breeds success, why limit what opportunities are available to your employees? 
    • Success: Both personal success and the company’s success should be key drivers for your culture, but at what cost? What does success look like to your leadership team and how will you communicate it along the way? How will you celebrate successes, and, on the contrary, how will you develop and coach employees when they fall short of it? 
    • Appreciation: Heavily-important to millennials, your employees seek recognition. The age-old saying, “A person who feels appreciated will always do more than expected,” still holds true. Is your management team expressing appreciation and recognizing achievements? Taking it one step further, are you recognizing your employee in a way that resonates with that particular person? Finally, recognize that communication is crucial in expressing your appreciation, don’t assume your employees know that you appreciate them. 
    • Well-being: One of the most talked about topics as the country begins to put an emphasis on mental health, what does your culture offer for employees’ well-being? Sure, not every organization can offer mental health days or an office puppy to boost morale. But, are your leaders trained to recognize burnout? Do your managers have a zero-tolerance policy for gossip? Are you working to create healthy relationships or are you giving never-ending to-do lists and nonstop deadlines? 
    • Purpose: The infamous “why.” What’s your company’s why? What is your employee’s why? Does your job candidate have a why? (Spoiler alert: if they don’t, they likely will lose motivation) Do those align? Are the values made clear?  

    Taking the necessary footsteps above to define your culture could save you from losing your top talent. Still, it can be overwhelming to even get started. As your trusted HR partner, we know what tactics to leverage in helping build a culture that is unique to your organization. Contact us today to discuss your options.  

  • Three HR Tech Trends To Implement   

    As the HR technology landscape continues to gain momentum, companies across the country are utilizing the surge of new solutions to more efficiently manage their employees. From learning management systems to applicant tracking – all these exciting offerings make it easier for owners to streamline their employee experience, and, in turn, allow them to focus on the daily tasks of running your business.  

    Check out the top three trends according to our HR experts:

    Trend #1: Applicant Tracking Systems 

    An applicant tracking system (ATS) will transform your hiring process in no time. Here, your company can show what jobs you have open, along with seeing which ones candidates are most interested in. This platform is intuitive enough to show how long it took to get them in the door and accept the job – which is crucial, as the workforce continues to tighten. Moreover, an ATS offers customizable and configurable features, including pre-hire assessments and sourcing of passive candidates. Plus, with integrations on career sites, job boards, and social media, an ATS can get your posting out quickly and effectively.  

    Lastly, consider how an ATS can help you thin out your candidate pool by setting minimum requirements, such as years of experience or education. With the time saved and quality hires gained, the return on investment of an ATS is more apparent than ever.  

    Trend #2: Performance Management Systems 

    A performance management system is vital to developing and improving performance at an organizational, departmental, and individual level. Whether it’s creating notes for a one-on-one meeting, setting objectives and goals, or guiding evaluations, implementing a performance management system allows for transparency and accountability on all accounts.  

    The most important aspect of using a performance management system is how your company is closing the loop with the information learned. Management must rely back on the information gleaned to make informed decisions on compensation such as increases or bonuses, as well as career trajectory and company goals. Just about anything related to human capital management can and should come from your performance management system.  

    The return on investment (ROI) of your performance management system can be calculated through a variety of means – consider tracking the increase of workforce productivity, the cost of reducing your attrition, or simply the time saved. Effective performance management drives business benefits.  

    Trend #3: Learning Management Systems  

    A learning management system (LMS) provides the framework for an organization’s learning and development. The right LMS can help an organization create, manage, share, and track learning programs. Investing in the educational development of your staff helps keep them engaged, which, in turn, helps you retain quality talent – knowing that every time a business replaces a salaried employee it costs them six to nine months’ salary. 

    As a plethora of companies make the leap over to paperless, an LMS can lend a hand in those efforts. Paper can be a big hassle when you need to edit information in a small amount of time. eLearning helps your company’s green initiatives by not reprinting material every time a small change is made. Moreover, quizzes and other learning activities no longer require being printed either. However, there are print options still along the way, such as printing a certificate of completion when an employee completes a training. Perhaps your company isn’t quite paperless but is still working remotely, an LMS provides the classroom experience without actually needing the classroom. 

    According to an article from Cornerstone, training is best understood when it is customized to an employee. Personalized information is one of the most important aspects to consider when wanting everyone to fully understand the information they are being taught. Each department has job-specific knowledge they need their employees to learn, which LMS makes very appealing.  

    As you may know, we are on the verge of what some experts deem “the great employee resignation.” The time is now to show your employees that you are invested in their education and future. By offering continued education through an LMS, you can offer your employees tailored content to help develop them professionally.  

    Our Message: 

    When deciding whether you want to add HR Platforms to your business, it is important to fully understand all the aspects included. We recommend doing your research on which one matches your company’s budget and functions, as this information above was just an overview of a few great ones we recommend. To learn more about how we can help you grow your business and to take advantage of our HR technology, contact us here.  

  • The COVID-19 pandemic has caused employers to adjust day-to-day operations time and time again. That trend continues after President Joe Biden announced a vaccination mandate on Sept. 9, 2021.

    Biden’s executive order is designed to address the ongoing pandemic through new policies that are designed to slow the spread of COVID-19 and the Delta variant. Many of these policies will directly impact employers of all sizes and require them to prepare accordingly now that the Occupational Safety and Health Administration (OSHA) issued an emergency temporary standard (ETS) November 4th, 2021.

    So what does the vaccine mandate mean for businesses across the country? Let’s break down what employers need to know about the new vaccine mandate and how it impacts their day-to-day operations.

    What Employers Are Covered By The New Vaccine Mandate?

    The vaccine mandate does not apply to every employee in the United States. Instead, there are three main groups that are impacted by the mandate:

    • All federal staff and employees of government contractors and subcontractors.
    • Medicare and Medicaid workers and any other care providers that receive Medicare or Medicaid reimbursement.
    • Private-sector employers with more than 100 employees.

    For the majority of business owners, the last group is the relevant of the three and covers approximately 84 million employees. The executive order mandates that any on-site employees of businesses with more than 100 employees must meet one of two obligations:

    • Provide proof of vaccination.
    • Undergo weekly tests for COVID-19 if unvaccinated.

    When Does The Vaccine Mandate Go Into Effect?

    The ETS sets a specific timeline for the businesses covered by the mandate. Any private-sector employer with more than 100 employees must choose between full vaccination or weekly testing by December 5th, 2021, which is 30 days following the ETS’ publication in the Federal Register.

    These businesses must then implement that rule by January 4th, 2022, which means that employees must receive the necessary shots to be fully vaccinated by that date. Any unvaccinated will be required to provide verified negative tests for their employer at least once a week. In addition, employers have a responsibility to ensure that unvaccinated employees wear a face mask while on site.

    How Does The Vaccine Mandate Impact Employers With Fewer Than 100 Employees?

    As it stands, the mandate does not apply to any businesses with fewer than 100 employees. These organizations can still opt to require vaccinations or forego any type of mandate. OSHA also announced that it will use a company’s total headcount for the mandate. As such, the number of employees at different worksites will be added together to see whether an organization meets the 100-employee threshold.

    How Does The Mandate Impact Part-Time, Remote, Or Other Types Of Employees?

    The vaccine mandate applies to any employees who work in the office, facility, or any other type of jobsite where they could interact with co-workers. That distinction means that any employees who are completely remote wouldn’t be subject to the vaccine mandate. Employers do have the option to extend the vaccination requirement to remote employees as well if they so choose.

    While the mandate impacts the vaccination or testing status of on-site employees, employers should still individually count every worker toward the threshold. That means that organizations should include the following people toward their total base of employees:

    • Remote employees
    • Full-time employees
    • Part-time employees
    • Temporary workers

    The mandate does provide a couple of exemptions that do not count toward the threshold. As it stands, any independent contractors and “leased” employees are not counted toward the mandate.

    How Should Employers Handle Employees With Medical, Religious, And Other Exemptions?

    Simply put, navigating vaccination exemptions and accommodations isn’t always an easy task. However, there are some steps that employers should take to handle employees that require vaccine exemption.

    To start, employers can ask for objective documentation that supports any medical or disability exemptions. Handling religious exemptions is a more complicated process. According to the Equal Employment Opportunity Commission (EEOC), employers should assume that any requests for religious accommodation are based on sincere religious beliefs.

    The caveat to that assumption is that employers may request additional information from an employee if they have any objective evidence that questions or disproves the sincerity of any beliefs. Employers may also ask for more detail if an employee’s basis for exemption is simply that their religion doesn’t permit vaccination.

    Do Employers Need To Pay For COVID-19 Testing?

    In general, the ETS does not require employers to provide or pay for tests. An exception to this standard is whether the employer in question is subject to any other applicable laws or collective bargaining agreements. However, employers must provide paid-time for employees to get vaccinated. Employees should also be granted sick leave if they need to recover from any side effects that prevent them from working.

    How Should Employers Record Vaccination Information and Handle Employee Vaccination Status?

    There are a variety of ways that employers can capture and verify vaccine status. These can include a letter from a healthcare provider, copies of vaccine cards, and other forms of proof.

    It’s essential that employers be discreet about any employee vaccination information. Vaccination status is confidential medical information and should not be shared with any co-workers, supervisors, or other individuals who don’t need to know. As such, it’s best practice to securely store vaccination records separate from other employee information and limit access to only those on a need-to-know basis.

    What Steps Can Employers Take To Prepare For Vaccine Mandates?

    While the vaccine mandate only applies to private businesses with more than 100 employees, organizations of all sizes can prepare their businesses for the new requirements. This preparation will help employers be ready for the mandate, whether they must follow the vaccine mandate or choose to enforce it.

    • Survey employees for vaccination status – Identify which employees are vaccinated, which ones will require testing, and which will require other accommodations and planning.
    • Research testing options – Plan ahead to determine the best testing approach for your business, which can include considerations for onsite or nearby testing locations and which tests comply with the ETS.
    • Create a written policy – Document your employees’ requirements to follow the vaccine mandate, including procedural requirements, employees’ options, and the consequences for noncompliance.
    • Communicate with employees – Share information about the vaccine mandate and your business’ compliance plan as early as possible. Early action will not only help build trust with employees, but also provide both parties with time to respond to employee feedback and plan for any employees who choose to depart due to the mandate.

    Another step that businesses can take is to not face the vaccine mandate and other legislation alone. GMS partners with businesses to take on time-consuming administrative burdens and guide them through difficult decisions, including how to handle the White House’s vaccine mandate.

    Ready to navigate through increased compliance requirements and other critical decisions that will affect the future of your business? Contact GMS now to talk with our experts about how we can make your business simpler, safer, and stronger.

  • Utilizing A Learning Management System For Your Small Business 

    Whether it’s learning your business model, or transforming your company policies and procedures into a more robust training, a Learning Management Systems (LMS) can help by ensuring your employees receive a uniform experience across the board. E-learning offers many competitive advantages that traditional training can’t always deliver – such as learning at one’s own pace, greater program variety, and of course, progress tracking.  

    Keeping your courses up-to-date has never been so seamless. You can edit the information in one area online and be sure that your employees see the changes in no time. An important fact that eLearning Industry points out is that an LMS provides a more secure platform than hard drives or paper, which helps reduce the risk of losing important data. It is recommended to use this for new hire, quarterly, and yearly training. You can easily track how your team is doing on this platform and see what lessons are difficult for them.  

    A plethora of companies are switching over to paperless for varied reasons that benefit companies. Regarding the LMS platform, paper can be a big hassle when you need to edit information in a small amount of time. eLearning helps your company’s green initiatives by not reprinting material every time a small change is made. Moreover, quizzes and other learning activities no longer require being printed either. However, there are print options still along the way, such as printing a certificate of completion when an employee successfully completes a training.  

    According to this Cornerstone article, training is best understood when it is customized to an employee. Personalized information is one of the most important aspects to consider when wanting everyone to fully understand the information they are being taught. Each department has job-specific knowledge they need their employees to learn, which LMS makes very appealing.  

    According to Mercer Consulting’s trend report, employees want to feel a sense of purpose at work, which understanding your business model can help with. It’s no surprise that many people leave a company because they don’t have an opportunity to learn or grow. Implementing an LMS encourages your employees to continuously grow their skillset while also helping them to understand the business better.  

    As you may know, we are on the verge of what some experts deem “the great employee resignation.” The time is now to show your employees that you are invested in their education and future. By offering continued education through an LMS, you can offer your employees tailored content to help develop them professionally.  

  • As you may expect, conflict in the workplace can be a serious issue for a small business. Unresolved conflicts among workers can create a difficult working environment both for those involved and others witnessing the dispute. These issues also have a direct impact on the financial well-being of your business.

    According to a report published by the University of New Mexico, the collective cost of unresolved conflicts can be as high as $300 billion annually for businesses across the country. Other analyses peg the figure at approximately $359 billion in lost revenue.

    Without a way to resolve contentious relationships, you’re inadvertently increasing the risk of developing a dysfunctional workforce that hurts your business in the long run. It’s time to break down to root causes of employee conflicts and how your business can resolve these problems.

    What Causes Workplace Conflicts?

    Honestly, conflict in the workplace can originate from any number of sources. It could be something as simple as a department manager being rude to a new hire or something like an employee who feels like they’re not treated fairly by their colleagues. At worst, the root of the conflict can be something like blatant harassment or inappropriate, lewd behavior.

    Hot-button topics are also notorious for creating unnecessary conflicts at work. The crux of the problem could be anything from political opinions to which sports franchise has more clout. The trick is to have a strategic conflict resolution plan to solve the problem.

    Five Steps To Resolving Workplace Conflicts

    It’s important to have a plan that helps you handle conflict and help everyone work towards a common goal – growing the company and furthering its success. Use the following steps to address conflicts before it’s too late.

    1. Meet with the conflicting parties

    Defining the root cause of the conflict is the first, and arguably most difficult, step. It’s critical to discover how the issue got to this point in the first place. Meeting with the conflicting parties can help you get both sides of the story and identify if the problem is easy to address or will require a more detailed response.

    These meetings should happen in a private, neutral setting. Both parties need to have their voices heard so that each of them acknowledges the other’s perspective. You’ll also want to play the role of an active listener. Make sure both parties know you’re paying attention and obtain as much information as possible to help them come to a reasonable solution.

    2. Investigate the conflict following the meeting

    Following the meeting, it’s always wise to investigate the integrity and the validity of each party’s explanation of how the conflict started in the first place. Often, you’ll discover that the root of the problem is nothing more than a usual misunderstanding among two dedicated, passionate, and career-minded professionals.

    3. Determine ways to truly resolve the conflict and meet a common goal for all parties

    The next step involves a fair amount of creativity on your part. You have to think outside of the box and brainstorm ways to manage and ultimately resolve the issue once and for all.

    This process may require additional communication, investigation, and planning. Don’t be afraid to sit down with both individuals again to openly discuss ways that manage and resolve the conflict. Use this brainstorming session to come up with ideas to deescalate the situation and come to a conclusion that benefits everyone.

    4. Develop a conclusion

    Once you gather all the information, you can finally make a determination on the extent of the issue, how the conflict began, how it escalated, and what everyone can do today to finally put the negativity to rest.

    The idea is to lay out a clear plan of action to find common ground and focus on the task at hand: working towards the same goal and furthering the company’s success as an efficient team of skilled professionals. Once this plan is in place, communicate it with the individuals so that they can put an end to the ordeal.

    5. Decide on preventative strategies for the future

    The last step is to ensure that this particular conflict doesn’t happen again. Evaluate the situation to see if this conflict can rear its ugly head again. If so, create an action plan to not only avoid conflicts, but also quickly address them in the future if they do occur.

    Six Ways Small Businesses Can Minimize Conflict

    While some conflict is inevitable, there are ways to minimize the likelihood of workplace disputes. There are a variety of strategies small business can utilize to protect themselves and their employees from these issues.

    Establish written rules and clearly defined company policies

    A good policy will make the conflict resolution process smoother when issues arise. Use your employee handbook to lay out clear guidelines about employee conduct and expectations for people within your company. These ground rules will help set the tone for what is and isn’t acceptable and clearly describe the consequences and next steps for misbehavior.

    Hire the right people

    The right employees will be less likely to create conflict. It’s important to not only hire people with the right skills, but also a good temperament for your business. You can also conduct background checks to try and identify any red flags that may cause problems in the future. Spend some time to properly vet each prospective employee to minimize the chances of conflict in the future.

    Provide management training

    Another way to minimize the impacts of conflict is better management training. You can’t be everywhere at once throughout the day, so you entrust your management team to be your eyes and ears. Training managers and other appropriate personnel on established policies and identifying brewing conflicts can help your business quell minor issues before they grow into severe problems.

    Create a fair grievance process

    Poor communication is a problem. A fair grievance process is an effective problem-solving tool that allows employees to feel heard and managers to identify the source of conflict before it becomes a bigger issue.

    No matter what policies you put in place, the process needs to be transparent and equitable. The same standards should apply to management and workers. This process will keep everyone accountable to each other and quickly soothe exasperated employees.

    Feedback

    Feedback is what brings the resolution process back to the beginning. You may spend a tremendous amount of time making written procedures and policies – and for good reason – but there’s still plenty to overlook.

    Give employees a way to provide feedback so that they share ideas on how to make the workplace a better place, whether that’s an anonymous tip line or a company email address. This feedback loop can help you fine-tune your policies to your workforce and, hopefully, put petty fights and arguments to rest.

    Protect Your Business From Conflict

    Workplace tension is a recipe for lost productivity and heated arguments. However, it’s not always easy to put conflict resolution strategies into place by yourself. GMS has the human resource experts to provide you with the tools and support you need to manage employee relationships.

    Ready to make your business simpler, safer, and stronger? Contact GMS today about how we can support your business through dedicated service and support.

  • As a small business owner, you have plenty of responsibilities. Some of these tasks are unenjoyable because they’re time-consuming or confusing, but there’s one particular job that’s unpleasant for everyone involved: disciplining employees.

    Whether it’s a minor transgression or a fireable offense, disciplinary discussions are as important as they are difficult. It’s essential that leadership tackles these issues head-on to address incidents and prevent future problems, but employers shouldn’t go into these discussions without a plan. Thankfully, progressive discipline policies give small businesses the direction they need to appropriately handle these unfortunate situations.

    What Is A Progressive Discipline Policy?

    Simply put, a progressive discipline policy is a process designed to address and modify actions or behaviors that are unacceptable in the workplace. These steps allow employers to make a good-faith effort to help employees learn from mistakes and give them a chance to meet certain standards. These expectations are spelled out through three core components:

    • Definitions – A set of clearly defined definitions and examples of what constitutes as unacceptable workplace behavior.
    • Consequences – Thorough descriptions of what how enemies will be disciplined for unacceptable behavior and how these actions can escalate to termination.
    • Resources – Details on who employees can go to with any issues, concerns, or questions.

    A progressive discipline policy allows employers to address not only conduct concerns, but also performance issues. A good policy gives management clear steps to correct individual and repeat problems, all while documenting these episodes for both the employee and employer. Having this type of policy in place provides multiple benefits for your small business.

    You set the ground rules for everyone

    A good policy allows your business to make performance and conduct expectations clear and spell out the consequences for not meeting those expectations. This information gives everyone the knowledge they need to meet and exceed working standards.

    You collect the necessary information for ending an employee relationship

    Termination is not an easy decision. A progressive discipline policy gives employers the means to fairly and objectively make this call by documenting how employees didn’t make the necessary improvements over time and outlining the repeated offenses.

    You protect your business

    A progressive discipline policy serves as more than just guidelines for improving employee behavior. An existing policy gives businesses evidence to back your decisions if an employee files a discrimination complaint or claims their termination was unfair. That existing document in your employee handbook can play a key role in mitigating risk in the future.

    The Four Key Steps For A Progressive Discipline Policy

    One of the key parts of any progressive discipline policy are the steps management should take to properly address offending employees. These steps range from initial notification all the way to termination, giving employers the means to both work with employees and document efforts to correct problematic performance or actions.

    1. Verbal warning

    The first step is to officially inform the employee about what they have done wrong. Meet with the offending employee in a confidential meeting to break down how they either haven’t met performance standards or displayed bad behavior. This conversation immediately sets your expectations and lays out next steps for the employee to recognize the issue at hand and correct it.

    While the warning is verbal, it’s still important to document the event to officially put the employee on notice. If possible, have an HR representative in the meeting to provide added support and provide backup. You’ll also want to create a document that includes a few key details:

    • When you gave out the verbal warning (including both the date and time of meeting).
    • The reason for the warning and what was discussed in the disciplinary meeting.
    • The next steps that both sides agreed to during the meeting.
    • Who was present in the meeting.

    2. Written warning

    If a verbal warning isn’t enough to improve performance or curb bad behavior, it’s time to present your concerns in writing. This formal written warning should include details on the policy and specifics on how the individual violated company rules. This document should also include expectations on how to correct the offense, what will happen if the employee is non-compliant, and the date you presented the written warning.

    As with verbal warnings, this meeting should be confidential and everyone involved must sign the form acknowledging the discussion. One difference is that you should also give the employee the opportunity to assess their own behavior on the written document. Let the employee know that signing the form isn’t an admission that they agree, just evidence that the discussion took place and that they are accountable for future corrective action. Once everyone on hand signs the form, you can add it to the employee’s personnel file.

    3. Final warning

    The final warning is very similar to doling out a written warning, except that it should be clear that this meeting is the employee’s last opportunity to comply with expectations.

    Once again, present a dated document that restates the policy in question, what they did wrong, and what must be done to correct this behavior. The key difference is that this document should clearly indicate that this meeting is a final warning and future noncompliance will result in the employee’s departure from the company. Once the form is signed by everyone on hand, add it to the same file as the rest of the warnings.

    4. Termination of employment

    If all three previous steps don’t work, it’s time to let the employee go. Meet with the offending employee and notify them that they’re no longer a part of the company. You should present this individual with a written, dated termination notice and save a copy for the company’s personnel records. Everyone present for this meeting should also sign this document.

    This meeting also serves as the right time to wrap up any tasks required to finalize the termination. You’ll need to inform the departing employee about what to expect in terms of receiving their final pay, which can depend on your state’s requirements. You’ll also need to collect and company property from the employee, which can include keycards, laptops, and other items or equipment. Once the employee retrieves any personal items, immediately change any relevant passwords and restrict prior access to company systems.

    Improve Employee Performance and Limit Risk with a PEO

    Your workers are your greatest asset, but that doesn’t make employee performance management any easier. Everything from creating thorough progressive discipline policies to conducting performance reviews not only takes time, but also has a major impact on your business’ success.

    The good news is that you don’t need to take on these responsibilities alone. GMS partners with businesses to take on the administrative burdens associated with managing employees, saving you precious time and protecting. Contact GMS today to talk to our experts about how we can save your time, money, and headaches through professional performance management.

  • As a small business owner, it’s essential to understand how different events affect your bottom line. Sometimes this process is as easy as checking an invoice, but other cases are not quite as clear. This is exactly the issue when it comes to employee separation costs.

    Losing an employee costs you more than just a member of your business. The departure of an employee can cost your business in a variety of ways. Let’s break down the reasons for employee separation, the true costs of employee turnover, and what you can do to prevent talented people from leaving your business.

    The Costs Associated with Employee Turnover

    When an employee leaves your company, it has a number of direct and indirect financial impacts on your business. Unfortunately, you won’t receive an itemized bill that helps you understand the cost and implications of turnover. Instead, you’ll need to recognize the different factors that will impact your business’ bottom line.

    Exact employee turnover costs vary depending on the employee and the nature of your company. However, the Society for Human Resource Management (SHRM) reports that it costs an average of half to three-quarters of an employee’s salary to replace that individual. For an employee who makes $50,000 a year, it could cost your business roughly $25,000 to $37,500 to find, hire, and train that person’s replacement.

    Those estimates can balloon even higher depending on the position. It can cost more than an entire year’s salary to replace technical or supervisor positions. Meanwhile, turnover for hourly employees can quickly add up as well, with an average turnover cost of $1,500 to replace each person.

    Of course, estimates are only one part of the employee turnover puzzle. It’s also important to understand exactly why those costs are as high as they are. Here are some of the factors that go into calculating the cost of employee turnover:

    • Recruiting and hiring costs
    • Onboarding expenses
    • Lost productivity
    • Reduced employee engagement
    • Increased risk of errors

    Recruiting and hiring costs

    Any time you must hire a new employee, it’s going to take some time and money to do so. To start, you’ll need advertise your open positions. Some jobs may even call for a recruiter to help you find the right person to fill the position. 

    Recruiting costs don’t stop with that initial search, either. Once you find some qualified candidates, your managers and supervisors will have to take time away from their jobs to interview and vet them. This is especially true for any job searches that last for months. As you may know, time is money, so any extra time spent will add to employee turnover costs.

    There are also a number of other expenses that can add up once you find the right fit for the role. For example, you could have additional fees for background checks, drug screenings, and other pre-employment assessments. These measures are important to ensure that your hire is the right person, but they do add to your overall hiring expenses.  

    Onboarding expenses

    Hiring an employee is just the first step – you will also need to spend time with onboarding and training. This process will incur a number of additional expenses to get your latest team member up to speed. 

    The exact onboarding costs can depend on your business, but employee training is a pretty common expense. The average company spends 31.5 hours training a new hire, which adds up to an average of $1,888 in training and development costs for businesses with fewer than 500 employees. You’ll also need to factor in how much it’ll take to provide that new employee with the tools to do their job, whether that means a computer, certain supplies, or other needs.

    Lost productivity

    The goal of hiring someone is to boost productivity and improve your business operations, but it will take some time to get them up to speed. The person will need to learn the processes that are unique to your business, as well as any new systems they will be required to use. 

    Someone will also need to help them get started and be available to answer their questions along the way. This will result in lost productivity for the rest of the team as well since they’ll need to take time away from their jobs to assist them. 

    Reduced employee engagement

    Anytime someone leaves your company, there can be ramifications for the employees left behind. Other individuals may start to question why that person left and what their future might look like at your firm. Depending on their outlook, they may start looking for another opportunity as well.

    A departing employee can impact your remaining workforce in other ways as well. You may see reduced engagement from any employees who end up having to cover for a temporarily vacant role. This process will not only force them to spread themselves thin, it can also leave them feeling burnt out from the extra hours and impromptu responsibilities. As a result, that transition period could spur further turnover down the road. 

    Increased risk of errors 

    When you lose an employee, you also lose important knowledge and experience.  Following, turnover can easily result in reporting errors or other costly mistakes. Even if you spend extra time to help ensure these errors don’t occur, that simply means you or someone else is spending extra time to address something that your departing employee handled regularly.

    How to Prevent Your Talented Employees from Leaving

    The best way to reduce the cost of employee turnover is to keep your talented employees from leaving in the first place. It’s important to assess the different reasons why high voluntary turnover occurs. 

    There are a variety of reasons why people leave a company. By identifying contributing factors for employee turnover, you can take appropriate measures to reduce avoidable turnover costs. Let’s evaluate a few ways that you can retain top talent, avoid wrong fits, and reduce your employee turnover costs.

    Offer a competitive benefits package

    Losing employees is an expensive process. Offering competitive pay and benefits can help limit the chances that employees try and leave for a small raise or certain work perks.

    It’s important to consider what perks employees truly find valuable in order to attract and retain top talent. It’s not uncommon for employees to value key benefits more highly than their pay, which makes an appealing benefits package a powerful retention tool. Some of the top benefits included:

    • Better health, dental, and vision insurance
    • More flexible hours
    • More vacation time
    • Work-from-home options
    • Paid parental leave

    Improve company culture

    Your company’s culture has a significant impact on employee satisfaction and can determine whether they stay or go. Creating a culture that fosters a positive work environment, encourages work-life balance, and recognizes employees will help you attract and retain top talent. 

    According to research conducted by LinkedIn, 47 percent of employees want to work for a company with a welcoming culture, while 51 percent of professionals seek employment at businesses that promote work-life balance and flexibility. Fortunately, benefits such as work-from-home options and flexible hours offer the dual perk of making your business more attractive and helping employees avoid burnout and other issues. That level of support can make your workplace a space where employees don’t want to leave.

    Recognize employees

    Establishing procedures to recognize employees is also essential to boost engagement and retention. Over 70 percent of companies report that employee recognition had the highest impact on engagement. As such, it’s important to make sure that employees know they’re appreciated.

    Consider implementing a formal recognition program that incorporates ideas like employee spotlights and peer recognition. Recognizing the individuals that work hard to contribute to the success of your business will improve morale and create additional incentives to perform well.

    Monetary prizes aren’t the only options either. Get creative with other ways to reward your employees, like an extra day off or an experience that they can enjoy. Even short conversations expressing your appreciation for an employee’s work can go a long way toward making them feel good about where they work. 

    Provide potential for growth

    One reason why employees leave is because they don’t think there’s a future with their current company. Giving employees the tools they need for career development can help them feel like they can continue to grow at your business.

    Growth can come in many forms – opportunities to advance in the company, stipends for development, etc. Regardless of the form the prospects take, nearly 95 percent of employees would stay with a company longer if they had access to learning opportunities. These efforts can play a key role in limiting employee turnover, so work with your employees to create employee development plans, provide training, and put measures in place to invest in your team.

    Welcome employee feedback

    One of the best ways to understand why people leave your company is to ask for feedback. If you’ve noticed that employee turnover has increased or want to address any issues before someone leaves, talk to your employees about what they value and encourage feedback regarding what you could do better.

    Collecting feedback is not enough though – you need to listen to them and implement their ideas to make them feel valued at your company. Making changes based on thoughtful, serious feedback shows your current workforce that you’re listening. That step along can make a major difference in morale and show your employees that they’re heard.

    When someone does choose to leave, conduct an exit interview to determine why. Use this interview as an opportunity to learn from your mistakes – they will be more likely to share candidly at this point since they are on their way out anyway. This feedback can help you narrow down potential weakness, strengths, and opportunities to improve your company and reduce employee turnover.

    Cut Out Turnover Costs With Employee Retention Strategies

    Losing a talented employee costs your business in a variety of ways. Fortunately, GMS can help you attract and retain top talent and keep your business strong. 

    Our experts can manage key functions like employee training and recruiting and benefits administration to help you find the right employees and keep them on your team. Meanwhile, you can spend that time to focus on growing the business instead of constantly dealing with the hiring process. Contact GMS today about how we can support you and your employees.

  • Whether you need to follow legal regulations or simply have some company rules, workplace compliance requirements are crucial for any small business. Unfortunately, it’s not always easy to get employees on the same page. 

    It’s important for small businesses to take some steps toward encouraging a compliant workplace. Encouraging this type of culture can help businesses save on workers’ compensation, create a safer workplace, and help everyone stay on the same page. Let’s break down what you can do to get your employees to buy in to your company’s rules. 

    How to Ensure Compliance in the Workplace

    There are a few different steps that employers can take to help cultivate compliance in the workplace. Here are six ways that you can make sure that your workforce complies with existing policies and procedures.

    Document any rules your employees need to follow

    The first step toward workplace compliance is to make sure everyone knows your policies and procedures. It’s important to document your company’s rules in your employee handbook. This way you can give each employee a handbook so that they can review the regulations you have in place. 

    This process will not only give everyone a document to review their rights and obligations, but also serves as a compliance tool in case there are any occasions where people violate company policies. You can have employees sign off on receiving and reviewing your handbook. You can also create checklists to ensure employees understand all the right steps for certain procedures.

    It’s also important to make sure your policies and procedures stay up to date with any new federal laws or business trends. You can update your handbook to add new policies or tweak existing rules, just make sure that every employee has a means to access these rule changes so that they can stay compliant. Finally, these documents should be easily accessible so that employees can review them at their own leisure.

    Consistently apply those policies and procedures

    Having policies and procedures in place is one thing, the way you apply them is another. Your compliance rules affect everyone at your company, from the top executive to the newest member of your team. 

    It’s important to make sure that you consistently apply those policies and procedures equally so that your whole organization sees that there isn’t any special treatment. If employees see that the rules aren’t applied equally, they’ll be much less likely to buy into them. That disenchantment can quickly lead to non-compliance.

    The best way to avoid this potential problem is to reinforce how important these policies and procedures are for everyone. Have regular handbook reviews where you go over key policies and company culture with your whole staff and reinforce that it takes buy-in from everyone. By setting an example and making sure everyone is accountable, you can instill a culture of compliance and avoid issues stemming from inconsistent treatment.

    Take a positive approach instead of just saying “no”

    If you want people to truly buy in to a culture of compliance, it’s best to focus on what they should do instead of telling them what not to do. Taking an “anti” approach with workplace policies is like telling someone “no” over and over – at some point, they may stop listening.

    This natural reaction to being told what not to do is why it’s better to focus on proper behaviors and educate employees on why that approach is best. If you have certain safety rules in place, create policies of what employees should do and why those behaviors are best. 

    For example, lay out guidelines on the safety equipment employees should use and how that equipment keeps them safe and healthy. That type of message will naturally hit home harder than simply saying “don’t work without a harness.” By providing positive instructions and providing the reason behind it, your workforce can at least understand why those rules are in place, even if they don’t like it.

    Invest in employee compliancetraining

    Once you have your policies in place, you’ll want to do more than just communicate them with employees. Training will help reinforce those compliance procedures and policies so that they’re less likely to make mistakes. These training sessions should cover the following topics.

    • Safety and health policies, goals, and procedures
    • Functions of the safety program
    • Proper contacts for any questions or concerns about the program
    • How to report hazards, injuries, illnesses, and close calls/near misses
    • What to do in an emergency

    Training should also be more than a one-time event. An ongoing training program can help your employees stay aware of company policies and procedures, especially if there are any changes to your compliance guidelines. 

    Use positive reinforcement for doing the right thing

    Let’s be honest, the average person doesn’t think of workplace compliance as a fun topic. That doesn’t mean the subject has to be a drag. Utilizing positive reinforcement to reinforce your policies and procedures can not only help prevent problems, but also encourage your employees to actively participate in workplace compliance measures.

    There are several different ways that you can go about this process. If you’re trying to get people into compliance training, the company could buy lunch for employees to get them more excited about the session. You can also incentivize employees by setting up a small rewards program for people who actively engage in compliant behaviors. If you make compliance a positive experience, employees will be much more likely to follow company policies and procedures.

    Keep employees engaged

    Positive reinforcement is one step in the right direction, but don’t forget that compliance is a two-way street. It’s critical to keep communication open for any employees who want to talk about workplace compliance. Those conversations will not only help your employees feel heard, but also uncover some potential opportunities for improvement.

    Sometimes these conversations aren’t exactly enjoyable. If someone breaks company rules about safety, harassment, or something else, it’s time to have a serious discussion about unacceptable behavior. It’s important to foster a compliant work environment, so these conversations are necessary to explain why an employee’s behavior went against company policy and how to move forward.

    It’s also important to keep an open dialogue with employees to see what’s going on around the workplace. If employees are experiencing difficulties with certain policies or have some feedback about how to create a safer work culture, let them know that management is there to listen. Allowing people to share what they’re experiencing can help foster a more engaged workforce and help identify potential opportunities to improve compliance. 

    Create a Culture of Compliance

    From safety regulations to parking policies, it’s important to make sure that everyone buys in to your company’s rules. Fortunately, you don’t have to go through this process alone.

    GMS works with businesses to develop a culture of workplace compliance and help them save time and money through expert HR outsourcing. Our team can help instill a culture of compliance through employee training, documentation, and other measures to help prevent future issues.

    Ready to make your company simpler, safer, and stronger? Contact GMS today about how we can support your business through comprehensive human resource services.

  • Hiring a new employee is an exciting occasion for a small business. However, it does call for a lot of paperwork.

    The onboarding process requires new employees to review and sign several documents. These papers range from government forms to records specific to your business. Regardless of their purpose, it’s important to make sure new hires address these documents shortly after they join your company. Let’s break down the various documents required for onboarding a new employee.

    The Different Types of New Hire Forms and Documents

    Onboarding documents have many different functions. Some are needed to collect important information from a new employee. Others are designed to properly inform new hires about certain practices and give them the ability to sign up for certain benefits. Essential onboarding documents are broken up into a few different groups.

    • Initial hiring documents
    • Employee eligibility forms
    • Tax forms
    • General business documents

    Regardless of their intent, it’s best to have employees review and sign these documents on their first day if possible. While the paperwork may not be all that exciting, it’s best to get these steps out of the way early and create a good foundation for new hires.

    Initial hiring documents

    The onboarding process starts with a job offer. There are a few documents that new hires will need to sign in order to get the job and help ensure that they’re the right fit for a company. As such, all prospective employees should fill out the following documents to get the onboarding process into motion.

    Job application form

    The job application form is the very first official document required to onboard new hires. While this form may seem obvious, it’s crucial to have it on file so that you have information such as work history, education, and personal data available in case any issues were to occur in the future. Some states have requirements for including specific statements in job application forms, so having this document can help you prove that you followed any legal obligations.

    New employees should sign this document to verify all the information and consent to a background check. It’s also important to note that this form should be included even if a job candidate already submitted a resume. You can then hold onto this document for a full year along with any notes or other details documented during the hiring process.

    Offer letter and/or employment contract

    The offer letter is another standard part of adding on a new employee. Still, it’s important to not only give employees an offer letter and employment contract, but also attach a copy to the employee’s file. This inclusion will just give businesses another document to reference in case any issues arise in the future regarding that contract or offer details.

    Drug testing records

    Whether a company wants to drug test a job candidate upfront or conduct tests throughout employment, you’ll need to provide employees with a copy of the company’s drug testing policy. You should also maintain records of any test results for at least one year, although some regulations may increase the minimum time frame for saving these records.

    Employment eligibility forms

    Once you’ve decided on the perfect candidate, the government requires them to confirm their eligibility to work in the United States. There’s only one document that falls under this section, but it’s a very important one: Form I-9.

    Form I-9 requires both the new employee and the employer to fill out parts of the document. New employees must fill out and sign the first section of Form I-9 on their first day of employment. Employers are then required to review the first section for completion.

    Employers also must also fill out the second section of Form I-9 within three business days of the date of hire. This step requires new employees to provide unexpired original documentation to prove their identity and employment authorization. This documentation can come in may forms such as passports, driver’s licenses, Social Security number cards, and more. U.S. Citizenship and Immigration Services provides a complete list of acceptable Form I-9 documents online.

    Once an employer has the required information, they can fill out the remainder of the form. Employers do not need to fill Form I-9, but they should keep it on file for at least three years after the employee’s first day or for a full year after an employee is terminated. This will allow employers to present the form if any authorized U.S. government officials visit the business for inspection.

    Tax forms

    Employment eligibility is just the first step toward completing government-mandated documents for new employees. Employees are also required to fill out Form W-4 so that you can properly manage payroll for their business.

    Form W-4 is used so that employees determine the federal income taxes that their employers should withhold from paychecks. As such, new hires should fill this form out right away so that employers can apply the information toward their first pay period. Some states also have their own version of Form W-4 for local income tax withholding, while others simply use the federal document.

    Employers aren’t required to regularly submit these forms, but they should keep them on file for reference and in case the IRS requests a copy to compare withholdings. Each W-4 should be kept on file for at least four years after these taxes are either paid.

    General business documents

    While some onboarding documents are required by law, many others are simply a means to provide new hires with all the information they’ll need at their new company. These papers can range from means to gather payroll and benefits information to simply giving individuals more detail about their roles and other company materials.

    Direct deposit form

    Direct deposit is a convenient arrangement for both employers and employees, but businesses need some details to set up this payment method. New employees that will receive direct deposit will need to fill out a bank account information form to ensure that their paychecks go to the right place. These forms should require the employees to include:

    • Their full name
    • Bank account number
    • The account type (checking or savings)
    • Name and routing number of the bank

     Benefits forms

    If a business offers a benefits package to its employees, that company should provide information about those benefits to new hires and have them opt in or out of programs. These programs can include:

    • Health insurance
    • Life insurance
    • Retirement plans
    • Disability insurance
    • Wellness programs

    Employers will need to hand out different benefits forms for each offering in their plan. These forms should have details about each offering and give employees the chance to opt in for them if they’re eligible. Even if they opt out, employers should retain those signed documents as evidence that they were informed of benefits options and chose not to enroll in them.

    Mission statement and strategic plan

    Some onboarding documents are simply to help new employees get more accustomed to a business. A company mission statement, strategic plans, or any other relevant documents will help new hires understand the company’s culture and goals. This type of information will help them understand how their role fits in with the organization’s vision and fit in from day one.

    Employee handbook

    As long as an organization has an employee handbook, it’s best to give a copy to new employees right away. A good handbook lays out all the important elements about a business – company policies, procedures, and other key details.

    Handing out a handbook to new employees allows them to consult this document about key questions they may have about an organization. A handbook also serves as a noteworthy compliance tool, acting as proof that employees had prior information about company policies. As such, you’ll also want employees to sign an employee handbook acknowledgment form to verifying they received and read through the handbook.

    Job description and performance plan

    Every employee should be given a clear direction of what their role should accomplish and how their success will be measured over time. Employers should provide new hires with a document that lays out responsibilities, expectations, and potential timelines of what should be accomplished during their first few months. Having employees sign off on this document will not only help them understand expectations, but also provide employers with written guidelines when it comes time to evaluate performance.

    Employee onboarding checklist

    There’s a whole lot that needs to happen in the first few weeks on the job. An onboarding checklist is a detailed action plan that documents all the training, tasks, and other key items that will happen at the beginning of someone’s tenure with the organization. A solid outline will help keep everyone on track and give new employees a sense of reassurance that their new employer has a plan and values their position.

    Security and parking signoffs

    If the job calls for special security or parking details, employers should lay out all that information and arrange for special clearances in time for a new hire’s first day. Employees should receive any forms they need to sign and key items or information related to parking, entrance, and more. These items can include parking passes, keys, and passcodes. Documentation for these items should also include details on next steps if an employee leaves the company or is terminated.

    Emergency contact information and plans

    Everyone hopes that they’ll avoid any emergencies, but it’s important to be prepared just in case. New employees should be given relevant contact information for managers and other individuals in case anything happens after hours. Employees should also provide the company with an emergency contact in case something happens to them on the job as well. Finally, provide new hires with any disaster readiness plans if the company has any created.

    Set Up Your New Employees for Success

    While new hires call for a lot of paperwork, a good onboarding process can make for an easier transition into your company. Of course, gathering all these documents is just the first step in a long process. It’s important to set the right tone for new employees so that they can help your company grow.

    Fortunately, GMS can help your business build an onboarding process that not only sets up new hires for success, but also takes the administrative work off your hands. Contact GMS today about employee onboarding management and other critical human resource functions.

  • Terminating an employee is an unfortunate, yet sometimes inevitable aspect of running a successful business. For a small business, where owners and employees often think of themselves as a “family,” terminating an employee can be an especially difficult decision. When the employee who is being terminated and the owner or manager have a long work history and possibly even a personal friendship, the situation can become even more charged. As a business owner, it’s important not to let personal feelings get in the way of making sound business decisions.

    terminated employee packing desk

    Signs It’s Time to Part Ways with a Long-Time Employee

    Many employees can thrive in their careers working decades for the same employer. Long-term employees who continue to provide value to your business have deep knowledge about your products, services, systems, and business structure and are certainly worth holding onto.

    Sometimes, though, even employees with long tenures at an organization can create difficulties that can be draining on a business. Although sometimes difficult to admit, if you’re honest with yourself, you may already have an idea of who these employees are. Long-term employees who have overstayed their welcome typically exhibit the following traits:

    Obsolete skills

    It often becomes clear that a long-term employee hasn’t taken responsibility for their career or training when they don’t actively seek out new information or express little if any curiosity about their industry or profession. A noticeably stale skill set is often one of the first signs it’s time to let a long-term employee go. These employees often have an outdated mindset and little, if any knowledge of current best practices. They only know what they’ve learned early in their career and have continued with those same processes for years, sometimes for decades.

    Resistance to change

    As industries and technology evolve, so should a business. A resistance to change could be holding your company back from operating at its full potential. You could be missing out on key opportunities to reach new markets or create innovative products or services. When an employee is perfectly content maintaining the status quo, it could be a sign that it’s time to move on.

    These types of employees tend to be champions of old systems and familiar processes. You may often hear them say things like, “This is how we’ve always done things.” When employees are constantly undermining change and new or progressive initiatives, it’s typically a clear indication that it’s time to let that employee go.

    Defensive attitude

    Long-term employees may be painfully aware of their dwindling value within a company. As a result, they may feel threatened over particular aspects of the job. These types of employees may become defensive when questioned or having to justify their processes. They might even undermine or sabotage new hires by hoarding information or dismissing a new hire’s ideas or skills.

    Slower productivity

    Long-term employees may no longer have the skills or capabilities to efficiently produce high-quality work or work quite as fast as their peers. As a result of not having the appropriate skills for their position, long-term employees may try to compensate by working long hours and weekends. These types of employees often claim they are overworked and may even be too busy to attend meetings. They’re critical of co-workers who have a life outside of work and don’t put in extra hours. They may even see themselves as company martyrs and call out co-workers who don’t spend as many hours working.

    Overcompensated

    Often, long-term employees have incurred higher salaries over their tenure that can weigh heavily on a company’s bottom line. Of course, long-term employees who continue to provide value and have experienced growth within your organization are likely deserving of a higher paycheck. However, it can be harder to justify when a long-term employee’s salary and title is grossly inflated to reward them for their tenure when it doesn’t correlate with the value and skills of other employees.

    How to Terminate a Long-Term Employee

    When it comes to terminating a long-term employee, much of your usual termination process will be the same. However, there are some special considerations to keep in mind when firing a long-time employee.

    Review past performance

    Termination can certainly come as a shock to an employee, especially one who may have felt secure in their tenure with a company. You’ll want to ensure due diligence by reviewing past performance reviews and feedback. If the employee has only ever received positive feedback, you may want to wait until you can provide some honest feedback and evidence of negative performance. An employee performance review is an optimal time to set goals and expectations for an employee, identify areas for improvement, and provide resources for training. You may notice signs like resistance to change or a defensive attitude during this time.

    Terminate long-term employees in person

    When it’s clear that a long-term employee can no longer provide value to your organization, it’s time for termination. When firing a long-time employee, be sure to give them the news in person if possible. Not only is face-to-face firing the right thing to do, it can also help keep your remaining workforce strong, especially when losing a long-time colleague.

    Be transparent with your remaining employees

    Speaking of your existing workforce, you’ll also want to take into consideration how you communicate the termination to the rest of your team. The “loss of a colleague can send shockwaves—and extra workload —across the company. By firing someone, you’re asking everyone around them to take the news and the extra work in stride,” says Piyush Patel, author of Lead Your Tribe, Love Your Work: An Entrepreneur’s Guide to Creating a Culture that Matters. While transparency is key, you’ll want to focus less on the negatives and more on the positives. Leverage this as an opportunity to bring your team back together, understanding that additional tasks may fall onto your employees as a result of the loss.

    Don’t fire employees by yourself

    It’s also a good idea to have another person, such as an HR representative, in the room to serve as a witness when terminating an employee. There’s always a chance that your former employee may try to accuse you of an unjust firing, such as age discrimination. Having an HR representative in the room can help you stay on track and avoid any potential legal issues.

    Severance pay

    While post-termination severance packages are most commonly associated with executives, they have now become more widely extended to long-term employees. According to a Manpower Group survey, 75 percent of companies have a formal severance policy in place because “severance is one of the keys to ensuring a difficult action has the best possible positive outcome while speeding the return to productivity, profitability, and employee engagement.” Offering severance pay can also help you show appreciation for a long-term employee’s loyalty to your company.

    Terminating a long-time employee may not be enjoyable, but it’s important that it’s done legally and gracefully. Need help creating a termination policy or managing employee performance? Contact GMS today to learn more about our employee performance management services.