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  • A small act of recognition can make a big difference for an employee’s morale. When Forbes reports that nearly two-thirds of employees would “likely leave their job if they didn’t feel appreciated,” these gestures can help you retain happy, talented employees.

    While recognition is a good goal, you also need to make sure that these efforts make sense for your bottom line. Fortunately, there are plenty of good rewards that won’t break the bank. Here are five low-budget ideas that small business owners can use to show employees their appreciation.

    A small business owner recognizing an employee for hard work.

    A Warm Welcome

    One of the most important times to recognize an employee is on his or her first day. According to the Society for Human Resource Management (SHRM), “Up to 20 percent of turnover takes place in the first 45 days.” Considering the average cost of replacing an employee, this can make early recognition a very cost-effective strategy.

    Fortunately, it doesn’t cost much to make new employees feel recognized on day one. There are several ways to help a new hire feel welcome right away, such as:

    • Greeting them personally on the first day
    • Giving them a tour and introduce them personally to team members
    • Sending out a welcome email
    • Creating a personalized orientation program
    • Sitting down and getting their feedback at the end of the first day

    A welcome package is also a nice first-day reward that can make workers feel like they belong. A bag with some mugs, a gift card or two, and some written welcome notes from team members is a small investment to make for a new employee who could be a long-term member of your company.

    Written Recognition

    Speaking of written messages, an employee doesn’t have to be new to appreciate a heartfelt note. Gallup cited that only three out of 10 U.S. employees feel they received recognition for their work in the past week. A handwritten note can show your workers that you not only notice what they’re doing, but also appreciate them for their hard work. 

    How can something as little as a handwritten note be so effective? Unlike a quick email, written notes can create a personal connection that electronic messages just can’t match. Former Campbell Soup Company CEO Douglas Conant found that handwritten “thank you” notes were so effective that he wrote more than 30,000 of them over the course of a decade. While you don’t need to match his productivity, the occasional note is a small, inexpensive way to motivate your workforce.

    Open Recognition

    While handwritten notes are a great way to privately thank employees, company announcements are a free way to highlight workers in front of everyone else. Highlighting achievements during company meetings or via company-wide email are a way to make sure that everyone recognizes the efforts of various employees.

    Recognition doesn’t only have to be about what your employees do for your company. Your employees may appreciate when their peers recognize them for personal accomplishments as well. Did one employee finish that marathon she trained for? Congratulate him or her on the achievement. Did a group of employees volunteer at a local animal shelter? Share that in a company email. It may seem like a small thing, but these acts show that you care about more than just your employees’ performance.

    Gift Cards

    A little money is a nice reward for just about any employee. With gift cards, you can set a budget that works for you. They also allow you to diversify your gift ideas by catering to your employees’ personal preferences. If an employee makes a coffee run before arriving at work every day, a $10 gift card to his or her coffee shop of choice is a great perk that shows you pay attention.

    It’s important to note that the IRS does view certain gifts as taxable income for an income. According to SHRM, “Although there may be limited situations when the value of a gift card or gift certificate could be excluded from an employee’s income, employers might want to take a conservative view and include the value of all gift cards and gift certificates in employee wages.” This doesn’t mean that you can’t use gift cards as a low-budget gift; you just need to plan ahead to protect yourself from any tax issues.

    The Gift of Time

    Sometimes the best way to show your employees that you appreciate them is by freeing up their calendar. The occasional day off allows workers to recharge. If an employee does well, consider giving them a “free day” pass that can be used at a future date. 

    The occasional day off isn’t the only way that the gift of time is on your side. Flexible work schedules can be an amazing gift for an employee that has to balance daycare schedules and other family responsibilities. If a good employee needs to stay home to watch the kids, work-from-home privileges shows a level of empathy that can build a strong bond between you and your employees.

    Invest in Happy, Talented Employees

    When your employees play such a huge role in your success, it makes sense to try and invest in top talent. As a Professional Employer Organization, Group Management Services offers a variety of services that help you invest in your workforce, such employee benefits administration and training programs. 

    Ready to learn more about how GMS can strengthen your business? Contact GMS today to talk to one of our experts about how we can help your company.

  • As a small business owner, you’re likely being pulled in countless directions, including the responsibility of finding quality health insurance for your team. Health insurance is an expensive and complicated system to navigate and can be incredibly time-consuming for individuals who are unfamiliar with the process. However, it’s not something to ignore.

    In today’s competitive job market, health insurance is a benefit that can help you maintain a competitive edge. In some instances, such as if your business has more than 50 full-time or full-time equivalent (FTEs) employees, it’s a legal obligation.

    When searching for the best health insurance option, you don’t have to find a plan alone. Professional employer organizations (PEOs) and health insurance brokers can guide you. While both PEOs and brokers have the same general goal—to find you quality, affordable health insurance for your business—they work in different ways.

    PEO Vs. Brokers

    PEOs

    PEOs and brokers have distinct differences, particularly in their scope of services. PEOs go beyond just health insurance, providing comprehensive HR solutions. They can handle payroll, employee benefits, risk management, and other HR-related functions. By bundling these services, PEOs offer a holistic approach to managing employee-related tasks, freeing you, as a small business owner, to focus more on your core business activities.

    Beyond the scope of their work, PEOs and brokers differentiate in cost structure. PEOs can help small businesses lower their potential premiums by becoming a “co-employer” for your workers. Since PEOs partner with dozens of companies, they have greater buying power than any small group. As a small business owner, this allows you to step up to the insurance bargaining table and earn discounts as if you employ hundreds of people.

    Health insurance brokers

    On the other hand, if you’re not looking for comprehensive services, insurance brokers specialize solely in helping businesses select and manage their health insurance plans. They offer expertise in the insurance market, advising on the best plans, assisting with plan selection, and helping with claims management. However, their services are limited to insurance and do not extend to broader HR functions.

    Brokers can also help your company save money as they have a detailed knowledge of the health insurance market. Though they can offer more flexibility by helping to tailor plans to meet your team’s specific needs, you’ll have less negotiating power as a small business.

    Factors To Consider When Choosing Between A PEO And A Broker

    Choosing between a PEO and a broker for your health insurance needs requires careful consideration of several factors. The following are key aspects to keep in mind to ensure you make the best decision for your business:

    • Business size and needs: PEOs are generally more beneficial for small to mid-sized businesses that require comprehensive HR support. If your company struggles with managing multiple HR functions, a PEO can offer integrated solutions that streamline these processes. Brokers are ideal if your business has a well-established HR department but needs expertise in selecting and managing health insurance plans.
    • Future growth plans: As your business grows, the comprehensive HR services provided by a PEO can scale with you, offering continued support and helping manage the increased complexity of a larger workforce. While brokers can continue to provide valuable insurance advice, they may not offer the broader support needed to operate a larger, more complex organization.
    • Budget considerations: Brokers often earn their income through commissions paid by insurance carriers. These commissions are usually a percentage of the premiums paid for the insurance policies they help secure. PEOs charge a fixed fee per employee or a percentage of the total payroll. Understanding the costs of both options compared to the services you are receiving is crucial to making the right decision for your company.
    • Level of support needed: If your business requires assistance with various HR functions beyond insurance, relying solely on a broker may require outsourcing to multiple vendors to get the comprehensive support you need. This approach can lead to higher costs and increased complexity in the long run. On the other hand, PEOs offer bundled support across multiple HR areas, saving you time and money by providing a single, integrated solution.
    • Flexibility: Most PEOs offer a limited selection of health insurance options, which can simplify decision-making. However, if your business has unique or specific health insurance needs, these limited options may not be sufficient. In contrast, brokers can provide a broader range of insurance plans tailored to diverse requirements, although these options might come at a higher cost.

    While there are many pros and cons to both PEOs and insurance brokers, it’s crucial to weigh your specific needs, short and long-term costs, and overall business goals when making your decision. Ultimately, the goal is to provide comprehensive and competitive benefits to help retain and recruit top talent. By carefully considering these factors, you can choose the solution that best supports your business and its employees.

    Find A Health Insurance Expert To Help Your Business

    Although PEOs offer many additional services and potential savings opportunities, both PEOs and brokers can be extremely helpful when searching for the right health care plan. There are also ways that PEOs like GMS can work with brokers, helping them offer more comprehensive, customized solutions that benefit small businesses.

    Whether you’re looking for experts who can help you find the right insurance plan or are already working with a broker, GMS can help. Contact GMS today to talk to one of our experts about how we can help you find a quality, affordable health care plan for your business.

  • The last election cycle may have added to the number of states with legalized marijuana, but is your business ready for it? Michigan became the 10th state to legalize recreational marijuana this past midterm election, ushering in the creation of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). As more states adopt these measures, it’s a good time to consider how legal marijuana affects your business and what you can do to protect yourself.

    A small business owner and an employee reviewing marijuana policies in the employee handbook.

    What Does Legalized Marijuana Mean for Small Business Owners?

    While MRTMA does legalize the use of recreational marijuana, it doesn’t do so at the expense of business owners. In fact, the new law doesn’t change much in terms of an employer’s ability to maintain the same drug and alcohol policy that was in place before the law. Per the MRTMA itself, the act still allows employers to do the following:

    • Ban conduct allowed by this act in any workplace or on company property
    • Discipline, discharge, or take other adverse employment actions against an employee for violations of a workplace drug policy or for working while under the influence
    • Refuse to hire a person after failing a pre-employment drug test or take adverse action against an existing employee in terms of tenure, terms, conditions, or employment privileges for working under the influence

    There’s also the fact that recreational marijuana is still illegal in terms of federal law, which has generally trumped state laws in marijuana-related cases so far. While Michigan’s new law and federal law in general doesn’t reign in an employer’s ability to maintain a drug-free workplace, that doesn’t mean that you shouldn’t takes steps to protect your business. It’s up to you to set clear guidelines that make your company’s policies are clear to your employees.

    What You Can Do to Protect Your Company

    Institute a Drug-Free Workplace Policy

    Regardless of whether you’re in a state like Michigan that has legalized recreational marijuana or not, it’s good to establish a written drug-free workplace policy (DFWP). This policy should make it clear that employees should never have any illicit substances on company grounds.

    Consider Drug Testing

    If you plan to test your employees for drug use, you need to have your policy carefully outlined to make sure that your employees have a clear understanding of your drug testing policy. This includes expectations and rules associated with each type of test, such as when they can happen, testing timelines and steps, and what’s expected of the employees. The types of drug test include:

    • Pre-employment tests for applicants
    • Probable cause tests for reasonable suspicion
    • Arbitrary tests on set dates (such as work anniversaries)
    • Random tests

    Of course, how you administer these tests can vary depending on your state. For example, Michigan has no law addressing drug testing regulations for private employers if your policies are not found to be discriminatory or violate any other legal provision. Other states may have set regulations for what types of test can be done and how those tests and conducted. OHS, Inc. provides abstracts of each state’s workplace drug testing laws, although it’s good to check local laws yourself to make sure you’re in compliance with any necessary rules and regulations.

    Set Discipline Standards

    In a way, marijuana can be treated the same way as alcohol; employees can’t come to work impaired, and they’ll be in trouble if they do. You’ll want to set firm policies to protect your business in case there are any incidents, but you should also consider whether your state has any protections in place for marijuana users, especially for places where medical marijuana is allowed.

    Of course, these potential protections can vary greatly based on your location. The Society for Human Resource Management notes that employers in Vermont and Minnesota “can’t fire someone for the first failed drug test if the employee agrees to complete a rehabilitation program.” The Small Business Association of Michigan highlights a Maine law that “prohibits adverse actions against employees for using marijuana outside of work.” Federal law may generally prevail, but adjusting your discipline standards to fit local laws can help you avoid costly legal battles while still affording your company some protection.

    It’s also crucial that, no matter how you decide to discipline employees for failed drug tests, you treat everyone equally. If you use a failed test as the basis for firing one employee but refrain from punishing a separate long-term employee, the fired employee could argue that your inconsistent application of your own rules was discriminatory. That could lead to litigation and a long, costly headache that could be avoided.

    Another good item to include is some language involving what it means if an employee attempts to delay a test or outright refuses to take one. If you decide to drug test employees, you should include a clear definition of “refusing to test” to offer you some protection. If you find that an employee is too evasive about drug testing and should be dismissed.

    Prepare Your Business for Marijuana Laws

    It’s not going to get any easier trying to figure out how marijuana laws will impact your business. Between new states adding legal marijuana and various regulations, it can be an absolute headache to keep track of everything your business should do to protect itself unless you’re an expert. If an employee gets hurt while under the influence of marijuana, the process can be even more complicated. Because of that, it’s best to turn to an expert to make sure you stay on top of federal and state marijuana laws.

    A Professional Employer Organization like GMS can help you navigate through confusing, ever-changing regulations and update your handbooks to protect your business. We have experts in multiple locations across the country, including at our Detroit office. Contact us today to talk to one of our experts about how we can help you prepare for marijuana regulation and strengthen your business in other ways.

  • As a small business owner, you’re in control of your business. However, things that you can’t control can impact your business as well. 

    Certain laws and executive orders can potentially require you to change certain processes and policies to protect your company. It’s important to keep an eye out for any news that can lead you to review current practices and make changes, such as when Michigan Gov. Gretchen Whitmer signed an executive order to increase protections that prohibit anti-LGBTQ discrimination in January of 2019. Whether your business is in Michigan or not, it’s a good time to consider how orders like these can impact your day-to-day operations.

    A job applicant being interviewed by a small business following non-discrimatory hiring practices. 

    What Does This Mean for Your Small Business?

    For most businesses, Whitmer’s order won’t change all that much. Outgoing Gov. Rick Snyder signed a directive in December of 2018 that, per the Detroit Free Press, “barred state contractors from discriminating against gay or transgender employees,” with exceptions for churches and religiously-affiliated organizations. The new order removes that exception, but that still puts most small business owners in the same spot as before.

    The bigger takeaway from this order is that it’s a part of a bigger trend across the U.S. to extend protections to people seeking employment, whether it’s because of sexual orientation and gender identity or another reason. In addition, LGBTQ and gender discrimination claims are expensive. The U.S. Equal Employment Opportunity Commission (EEOC) enforces discrimination laws on a federal level and has forced offending employers to pay out more than $3.3 million in monetary relief. As discrimination laws evolve across the country, it’s important to be proactive about potential changes instead of waiting for an issue to arise.

    How You Can Protect Your Business During the Hiring Process

    Discrimination is a matter of hiring–or not hiring–a candidate for reasons that aren’t based on an applicant’s qualifications. Each state’s anti-discrimination laws can differ, but the best way to avoid potential issues is to have a hiring process in place that treats everyone equally and documents interviews so that you can protect yourself from any anti-discrimination claims.

    Establish Set Interview Questions

    If you don’t already, create a regimented interview process with standard interview questions that you ask every candidate. This will help you give each applicant an equal opportunity to make their case for the job. You also need to be careful about the questions you ask. Making direct inquiries that impact gender, race, age, or other protected criteria can lead to trouble. 

    For example, the Yale Office of Career Strategy notes that inquiries about family information status are potentially illegal in a job interview. A question as simple as “Are you married?” can be viewed as a way to probe for personal information or to even determine a candidate’s sexual orientation, even if it was an innocent attempt at conversation.

    Don’t Treat Some Candidates Differently than Others During the Interview Process

    No matter the opening, it’s important to conduct every interview the same way no matter who sits in front of you. Use your set list of questions and provide the same type of feedback. Follow-up questions can certainly vary depending on certain responses or specific qualifications, but it’s good to give everyone the same chance to answer the same base list of questions.

    Take Notes and Document the Results

    As you go through the interview, make sure to write detailed notes about a candidate’s responses for future evaluation. Not only are these notes useful if you have to compare a couple of close candidates, it creates a record of what was said in case an applicant tries to make a discrimination claim. In this case, you can present information on why you hired one candidate over another based on their responses and your notes. 

    If possible, it’s also good to conduct interviews with another colleague so that he or she can take notes as well. Not only will this give you another person to help during the interview, it gives you a second set of recorded notes to use in case any claims are filed.

    Keep Your Hiring Practices Ahead of the Curve 

    Finding and hiring the right job candidates is stressful. When you add in anti-discrimination considerations and other potential pitfalls that you can face in the hiring process, it can be overwhelming. Rules and regulations will continue to change over time, but there is a way that you can be proactive and protect your business.

    As a Professional Employer Organization, GMS can be the partner you need to shoulder the administrative burden and strengthen your business’ HR functions. Our team of experts allow you to outsource everything from payroll administration to employee recruitment and training programs. In turn, you not only save the time necessary to run your business, you gain the advantage of working with a group that can keep you up to date on any issues that may impact your company.

    Ready to keep your business ahead of the curve? Contact our Detroit office or one of our other locations across the country to talk to one of our experts about how we can help you strengthen your business today.

  • Running a business comes with more responsibility than most people realize. The administrative requirements to stay compliant while growing a successful business can overwhelm most. Some business owners will hire office managers, an HR generalist, interns, etc., but some completely put off the HR needs of their company. This can cause major issues down the line with compliance issues, payroll dilemmas, job description disputes, and the list goes on.

    The Professional Employer Organization (PEO) industry exists to help business owners outsource their back-office functions to focus on the real reason they developed their company, which is to generate revenue. 

    A happy small business owner who outsources key business functions to a PEO. 

    Five Indicators That it Might be Time to Partner with a PEO

    The administrative functions of running your business have become overwhelming

    If you’re trying to find more hours in the day for you and your staff, using a PEO may be a good way for you to free up time. Many growing businesses find it hard to maintain efficient administrative processes as they expand. GMS can help streamline the payroll process, handle compliance issues, assist with employee recruitment, provide salary analysis, and much more.

    You aren’t 100 percent confident that your business is compliant with State and Federal regulations

    Face it, the business of being a business owner has become more and more complicated with rising costs and liabilities of having employees. Just through the Affordable Care Act alone, there have been about 900 new regulations enacted in recent years. Are you aware of all the changes? GMS provides the HR expertise with a designated and certified account manager attached to an HRIS platform to ensure compliance with all federal and state employment regulations.

    You lack the financial resources to develop a full HR department

    Building an HR department can be time-consuming and expensive. The median salary for a Human Resource Manager is $110,112 per the Bureau of Labor Statistics. Depending on the need, an in-house department can involve hiring an HR Director, using a payroll company, securing an EPLI policy, paying a 401(k) audit fee, and paying attorney fees, all of which can add up quickly. GMS can often provide a broad array of services and qualified experts without having to hire internally.

    You want to focus more on the growth of your business

    Outsourcing the daily administrative aspects of running your business frees you up to focus your attention on growing your business. You retain full control over decision-making, employee responsibilities, core job functions and requirements, hiring decisions, and the structure of your organization. While GMS can offer input in these areas, you remain in control of all final decisions. This is the foundation of the co-employment relationship that GMS creates with its clients.

    You’re in a high-risk industry

    Small businesses can be paralyzed by compliance requirements with labor laws, tax reporting, and workers’ compensation insurance. The list of acronyms – like FSLA, FMLA, EEOC, HIPPA, PPACA, FUTA, and SUTA – are enough to cover the entire alphabet while overwhelming any business owner. If you have employees, you must provide them with workers’ compensation insurance that will pay wages and medical expenses in the event of hours lost because of workplace injuries. By partnering with a PEO, you can rest assured that your business and your employees are protected.

    Ease Your Workload and Strengthen Your Business at the Same Time with a PEO 

    Businesses are created from a passion, and that passion doesn’t usually include handling all the administrative functions required to keep your business running. GMS takes those burdens off the business owner, so they can focus on the core functions of their business. Contact us today to see how we can make your business simpler, safer, and stronger!

  • In the 12 years that I’ve been working for GMS, I’ve met with thousands of business owners in hundreds of industries. While every company has their unique problems and issues, some issues tend to be universal.  In the 26 years that GMS has been in business, we have found that most business owners… 

    • Think they’re paying too much in worker’s compensation premiums and not getting enough in return for it.
    • Want to offer their employees great health insurance, but don’t want to pay the ridiculous premiums being charged.
    • Don’t fight their unemployment claims because “it’s just not worth it and they’re going to get it anyway.”
    • Hate the stupid bureaucratic paperwork they have to go through, keeping them from more important tasks.
    • Have trouble finding good employees.
    • Have a hard time keeping them when they do find them because they’re losing them to other companies with better wages and benefits.

    Did I miss anything?

    A small business growing with the help of a PEO serving as an outsourced HR department. 

    Why Do Big Competitors Have an Advantage?

    So now, small business owners often compete against bigger companies and are at a distinct disadvantage. Why? Because large companies tend to have a few things that small businesses don’t:

    • A payroll department that pays the employees, takes care of their W-2s, does all their quarterly filings, etc.
    • An internal benefits department that gets the best rates for them on their ancillary benefits and 401k, and is more often than not, self-insured for their healthcare, giving them the data they need to better manage their benefits and control those costs.
    • An internal risk department that manages all their workers’ comp and unemployment claims and has the legal power to contest claims that they feel are fraudulent.
    • An HR department that handles the entire lifecycle of an employee from the recruiting, either done internally or through a service, onboarding, training, and eventual separation by departure or retirement.

    How You Can Compete

    Fortunately, there are measures you can take to stand with the competition. If you’re like most companies your size, you can:

    • Hire an accountant or a payroll service to handle your payroll.
    • Use a broker for your benefits and rely on your accountant or financial advisor to set you up with the best possible retirement plan option.
    • Sign up with a TPA or insurance broker to manage your worker’s comp, hoping for the best possible discount and then pray you don’t lose it.
    • Waste your time fighting unemployment claims, or worse yet, don’t contest them at all.
    • Use a recruiter, word of mouth or a sign in your front yard trying to find help and then hope that you’re doing all the right things from a regulatory standpoint.

    Well, that’s why the PEO industry, Professional Employer Organization, was created back in the 1970s and has grown to a $176 billion industry and why GMS is rapidly becoming one of the largest PEOs in the country. By acting as an outsourced HR department, our clients get all the same benefits of a large company and you can get:  

    • An internal payroll department that takes on all the tax liability of your employees.
    • A benefits department that can get you the best rates and possibly even into a self-insured healthcare plan with minimal risk. You also have the option of a 401k plan that is low cost and relieves you of fiduciary responsibility.
    • A risk management department that is self-insured for worker’s comp, providing better rates as well as complimentary legal service on all claims, both for worker’s comp and unemployment.
    • An HR department that handles everything from the onboarding of employees to termination and everything in between as well as keeping you compliant with all government regulations.

    The best part is that you’re getting all these specialists for less than it would cost you to hire one of them in even a part-time capacity. At its basic level, a PEO consolidates your vendors, increases your buying power, and provides HR support and recruiting assistance to help you in that growth. How do we do that? Through the PEO relationship.

    We partner with our clients and mutually share or co-employ our clients’ employees. By adding their employees to our PEO, GMS is a 26,000-employee company that has the leverage to be self-insured for our worker’s comp and healthcare and get better rates on everything from 401k to vision, dental, life, disability, drug testing, background checks, etc.  Virtually everything necessary for employee management.

    Contact GMS today to talk to one of our experts about what we can do to level the playing field for your business.

  • Probably. Maybe. Maybe not. Who knows? Do you know?

    As a Sales Rep for a Professional Employer Organization (PEO), I talk with small to medium-sized business owners on a day-to-day basis. I never cease to be amazed at how well they know their company, their employees, their business, their industry, and their competition. When you spend 80 hours a week working on your business, you become an expert.

    Yet, these same business owners will often tell me, “I don’t know what I don’t know. And even if I knew what I didn’t know, I don’t always know how to find out what I need to fix, remedy, or comply with the situation.” Of course, they don’t. They’re devoting all their time to making a better product and/or a better company.

    If you’re new to the game or haven’t spent a lot of time thinking about this, you might be wondering what regulations I’m speaking of in the title of this post. After all, those are geared towards large companies, not small, independent businesses, right?

    Compliance chalkboard for small businesses.

    Federal Regulations for Business of All Sizes

    Some things are required no matter the size of your company. For example, you must make sure you have I-9 forms on all your employees and that they’re filed correctly.  There are hefty fines tied to misfiled or missing forms. You also need to have the required employment posters hanging in prominent places for your employees so they can see what their workplace rights are.

    Other laws are based on how many employees you have. For example, if you have between one and 10 W-2 employees, these laws apply to you:

    • Fair Labor Standards Act (FLSA)
    • Employee Polygraph Protection
    • Equal Pay Act
    • Consumer Credits Protection Act
    • National Labor Relations Act

    Once you have between 11 and 14 employees, you have to become compliant with OSHA and all federal health and safety standards. That includes all the reporting that comes with it.

    From 15 to 19 employees, you need to start paying attention to the following regulations:

    • Title VII, Civil Rights Act
    • Title I, Americans with Disabilities Act
    • Pregnancy Discrimination Act

    At 20 employees, you have to worry about COBRA (if you’re offering benefits) and Pregnancy Discrimination Act. And it goes on and on and on… you get the idea.

    How to Stay in Compliance with Federal Regulations

    How does a business owner know what they need to be compliant with while working full-time on their business? There are several ways I can think of:

    • During all your downtime, read up on federal regulations and keep tabs on all the changes as they happen
    • Pay an attorney to keep you abreast of these things
    • Hire someone on staff whose sole responsibility is keeping track of these things

    These are all good options, but many small business owners find the best option is to partner with a Professional Employer Organization, like GMS, that will not only keep you compliant but will also take on all the regulatory liability of your employees.

    Recent studies show that small businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business. Contact GMS today to learn how we can help take over these administrative burdens, allowing you to focus on your core business.

  • Ever wonder the reasoning behind a paycheck? As in, why does one employee make a certain amount, while another earns more or less? It all comes down to an organization’s compensation philosophy. 

    Does your organization have a compensation philosophy? A WorldatWork survey found that more than nine in 10 companies have a compensation philosophy; however, that doesn’t mean their compensation philosophies are any good. Nearly one in three compensation philosophies aren’t in writing, while about half of employees don’t even know or understand them. This presents a huge missed opportunity for companies, as there are many benefits to pay transparency. 

    Intrigued? Read on to learn what compensation philosophy is and how your organization can benefit from having a good compensation strategy in place.

     A small business owner handing out a paycheck that was based in compensation philosophy.

    What is Compensation Philosophy?

    A compensation philosophy answers the “why” behind employee pay. In a formal, written statement, a compensation philosophy should identify the organization’s pay programs and reward strategies and create a framework for consistency. This basis will serve as the guiding principles that drive decision making regarding compensation at a company.

    Compensation philosophies are typically created by your company’s human resource professionals. That may be a dedicated employee or yourself, depending on the makeup of your business. When developing a compensation philosophy, the Society for Human Resource Management (SHRM) says several factors should be taken into consideration, including:

    • Company’s financial position
    • Size of the organization
    • Industry
    • Business objectives
    • Market salary data
    • Level of difficulty finding qualified talent

    A good compensation philosophy should support the organization’s business goals and objectives, while still being competitive in the market. A reward system for raises and bonuses should also be factored into a compensation philosophy.

    Why is Compensation Philosophy Necessary?

    Compensation philosophies are used to attract, retain, and motivate employees. There are several reasons why your organization should be transparent about your compensation philosophy.

    Demonstrate commitment

    By taking the time to ensure fair compensation strategies, your organization can help employees feel appreciated. According to a survey by the American Psychological Association, 93 percent of employees said they are motivated to do their best work when they feel valued. Sharing your compensation philosophy will show your employees that you care and are invested in their wellbeing.

    Retain employees

    The way you approach compensation can have a direct impact on employee satisfaction. In fact, how they feel about your pay process can be even more important than how much they’re paid. According to a PayScale survey, an employee’s perception of your payroll process is “5.4 times more impactful on how satisfied they are than how they’re paid relative to market.” That suggests that if your organization is fair and transparent about compensation, employee satisfaction and retention rates could increase.

    Attract talent

    Payroll transparency can impact more than just your current employees. Publishing or sharing your compensation philosophy with job candidates should attract more talent and help find the right people whose needs and values align with your philosophy. As SMART Recruit Online found, job listings with a compensation listed increased the total number of candidates by 30 percent. Candidates appreciate companies that are transparent about pay, and the number of applicants an organization receives will likely reflect that.

    Ensure equal pay

    While there are allowable pay differences based on factors not prohibited by law, your compensation philosophy should show equal pay for equal work. Feeling underpaid is a top reason why employees quit their jobs, so ensuring equal pay through your compensation philosophy will help increase retention rate.

    How to Write a Compensation Philosophy

    There are many different types of compensation philosophy. For example, financial services company Citi and predictive marketing platform Windsor Circle are two very different, yet good compensation philosophy examples. Citi takes a more philosophical approach to its compensation philosophy by laying out guidelines rather than fixed numbers, whereas Windsor Circle delves into the details of its compensation package. Despite their different approaches, both compensation philosophies hit the marks on fairness, transparency, and commitment.

    Small business management blog BizFluent laid out four different ways you can write a compensation philosophy.

    Percentile-based

    Some organizations will use percentiles in their compensation philosophy. Percentiles spell out where wages will fall in relation to the regional wage market. For example, a company might pay its employees at the 60th percentile of the regional wage market. This means that employees will earn more than the bottom 60 percent of your market, but less than the top 40 percent of that same population.

    Fixed numbers

    A compensation philosophy that uses specific numbers will detail exactly what each employee makes. For example, an entry-level employee might make $25,000 during their first year, and $30,000 during their second year, dependent upon good performance. Listing a fixed number or range can also help attract more candidates when it comes time to hire.

    Compensation package breakdown

    A compensation structure is a great place to include items apart from salary that make up an employee’s compensation package. This will include base pay, health insurance, and other forms of indirect compensation and even non-monetary rewards like recognition and achievements.

    Non-specific

    A non-specific compensation philosophy won’t provide percentiles, hard numbers, or even a breakdown of what the compensation package includes. Instead, the compensation philosophy will focus more on the guiding principles that help the organization determine how it will pay its employees. The philosophy, using Citi as an example, might say that one of its objectives is to “attract and retain the best talent to lead the company to success.” Citi’s philosophy aims to do this by providing competitive compensation programs and compensating employees based on ability, contributions, and performance.

    How to Review Your Compensation Philosophy

    Compensation philosophies should be reviewed regularly and updated when necessary. When reviewing your compensation philosophy, SHRM says you want to be able to answer “yes” to the following questions.

    Is the compensation philosophy equitable? 

    HR is the neutral department in an organization, so it’s your duty to make sure all rules, including employee pay, are fair and impartial. One department or employee shouldn’t get preferential treatment over another unless there is a justifiable reason behind it.

    Is the compensation philosophy defensible and perceived by employees as fair?

    There will be times when you need to defend your compensation philosophy like when an employee asks for a raise you can’t give. A good compensation strategy will retain talent by motivating employees to perform to their full potential and rewarding those that do. It will also attract candidates with the right salary requirements. Make sure wages are competitive with market value, or an employee or potential candidate may seek an opportunity that pays better elsewhere.

    Is the compensation philosophy fiscally sensitive?

    It’s important to define the competitive market position of the organization as it applies to base pay, variable compensation, and benefits opportunities. Make sure the compensation strategy supports the business strategy, competitive outlook, operating objectives, and human capital needs.

    Are the programs included in the compensation philosophy legally compliant?

    The rights of employees to be free from compensation discrimination is protected under several federal laws, including the Equal Pay Act, Title VII, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities of Act (ADA). The Fair Labor Standards Act (FLSA) also dictates minimum wage, overtime pay, recordkeeping, and child labor practices.

    Does the organization effectively communicate the compensation philosophy to employees?

    Communicating the compensation philosophy to employees can create a sense of fairness so no one feels cheated or underpaid. The WorldatWork survey found that 46 percent of organizations share minimal pay information with their employees, and the ones that do say more than half of their employees don’t understand it. When you share your compensation philosophy with your employees, opt for an “open door” policy so employees feel comfortable asking questions.

    Does the compensation strategy attract new hires?

    It’s a good idea to make job candidates aware of a company’s compensation philosophy, as it can help attract top talent. Does your compensation philosophy include salary listings, fair market pay, and language that makes employees feel valued? Applying these strategies can help attract more new hires to your business. 

    Attract and Retain Good Employees with the Right Compensation Philosophy

    Simply having a compensation philosophy isn’t enough. Understanding what makes a good compensation philosophy and being transparent about pay will help your organization attract, retain, and motivate employees. 

    Group Management Services offers a variety of payroll, risk management and human resources services, including national and local compensation strategies for businesses looking to hire. Contact GMS today to talk with one of our experts about how you can define compensation philosophy at your organization.

  • Let’s face it; you’re not going to get along with every person you meet—and that includes the people you work with.

    Conflict in the workplace happens at every organization and ignoring it can be costly. A study by professional training and coaching company CPP, Inc. found that 85 percent of employees experience conflict in the workplace. When it’s fight or flight, it’s easy to want to avoid conflict at all costs; however, your organization will surely pay the price by avoiding conflict management altogether. CPP’s research found that workplace conflict wastes nearly three hours per week, costing $359 billion in paid hours.

    Because every employee possesses a unique set of attitudes, visions, and values that may differ from that of their co-workers, these differences can sometimes lead to conflicts in the office. We put together some conflict management tips to help you understand what can spark a conflict in the workplace and how you can put out the flames for even the hottest office tempers.

    Two employees with clashing personalities, egos and opinions get into a conflict at work.

    What Causes Conflict in the Workplace?

    Given the multitude of personality types in any given workplace, it’s no surprise that the vast majority of employees find themselves dealing with conflict in a professional capacity. CPP found that the main sources of conflict include:

    •  Personality clashes and warring egos
    • Stress
    • Heavy workloads and inadequate resources
    • Poor leadership
    • Lack of role clarity and accountability
    • Bad team pairing
    • Compensation issues

    When Should HR Get Involved?

    When there’s a conflict in the workplace, it’s best to work to resolve the issue right away. If conflict is left unresolved—or handled incorrectly—workplace conflict can have negative results. It’s especially important for HR to step in during the following scenarios.

    Employees threaten to quit over the problem

    Employee retention rates can drop if a problem isn’t properly handled. Research by PsychTests found that 42 percent of workers would quit their jobs due to a toxic work environment.

    Disagreements get personal

    When you don’t correct a problem, employees tend to believe they can do and say whatever they please, like hurling personal insults and attacks at colleagues. This can lead to a loss of respect between employees and create a huge bullying problem at your company. About one in five workers say they have directly experienced bullying on the job, according to a survey by the Workplace Bullying Institute.

    The morale and success of your organization is affected

    A unified company will boast high morale and great business performance. When conflict threatens the culture and success of your company, your organization can’t perform to its full potential. A toxic workplace culture can cause workers to feel stressed, depressed, and anxious, and they may even lose sleep over it. This can negatively impact your employees’ immune systems, making workers more susceptible to illness and sick days. Employees may even just take days off to avoid the office bully, as the CPP survey found that one in four workers have seen conflict lead to sickness or absence.

    Positive Results of Conflict Management

    Good conflict management can lead to lasting benefits for your organization. By taking the right measures to resolve conflict in the workplace, CPP found that 76 percent of workers saw positive outcomes, including:

    Improved working relationships and a better understanding of others

    Conflict resolution is all about open communication, so it’s important that employees calmly talk about workplace issues to help everyone better understand each other and see situations from different points of views. Maybe one employee doesn’t like when another listens to music at without headphones. Perhaps someone else doesn’t like that he or she was passed over for a promotion. These problems don’t always go away on their own, so talking about it can not only improve working relationships, it can also help prevent problems in the future.

    Better solutions to future problems and challenges

    Having the right infrastructure in place for dealing with conflicts can provide an excellent precedent for how conflicts can be dealt with in the future. That way, you know how to handle any conflict before it becomes a bigger issue.

    Greater performance and increased motivation

    When employees are happy, they will be more motivated to do a good job. A study from the University of Warwick found that employee happiness can result in a 12 percent increase in productivity.

    Try This Conflict Management Strategy

    Whether it’s a quarrel between two employees or a squabble across entire departments, it’s best not to waste any time getting to the bottom of it. Schedule a meeting to address the problem in a private, neutral setting, such as a conference room.

    You can also follow these nine steps adapted from the Society for Human Resource Management to quickly and effectively resolve the conflict:

    1. Set ground rules. All parties should agree to treat each other with respect and try to listen and understand each other’s views.
    2. Ask each participant to describe the conflict and their ideal outcome. Focus on specific behaviors and problems instead of on people and have them use “I” statements rather than pointing the finger with “you” statements.
    3. Ask participates to repeat back what others have said to ensure there is no miscommunication.
    4. Summarize the conflict based on what you have heard. Make sure participants are all in agreement.
    5. Brainstorm solutions. Discuss all possible options in a positive manner. Remember: No idea is a bad idea.
    6. Process of elimination: Rule out any solutions that participants agree won’t help resolve the issue.
    7. Summarize all possible options to determine the best possible solution. Make sure all parties agree on the solution.
    8. Execute the agreed-upon solution by assigning next steps to each participant. Make sure all parties agree on their next steps. Lay out a plan to follow up, if necessary.
    9. End the meeting on good terms. Ask the participants to shake hands, apologize and thank each other for working to resolve the conflict.

    While it’s easy to want to shy away from conflict at work, it’s far better for your organization to address these issues. Employee training and performance managementare key HR functions that can help create a workplace culture that fosters camaraderie—not conflict—among your employees. Contact Group Management Services today to talk with one of our experts about the different ways you can manage conflict at your organization.

  • Going to work shouldn’t feel like, well, going to work.

    Sadly, that’s how most workers feel. A Gallup study found that two-thirds of full-time workers experience burnout on the job. Yet, only 23 percent of companies offer burnout prevention programs, according to a 2017 Statista survey. It’s a huge issue for many companies and a major reason why talented workers leave for better opportunities.

    However, employee burnout doesn’t have to be part of the job. Learning how to spot job burnout and understanding its effects can help employers not only reduce burnout and job stress, but also increase productivity and revenue. We put together some tips to learn more about what job burnout is, how job burnout is affecting your company and ways you can prevent (and even reverse) job burnout at your organization.

    An employee shows signs of job burnout when they are unmotivated, overworked, cynical and frustrated.

    What is job burnout?

    Job burnout is a type of job stress defined by Mayo Clinic as “a state of physical, emotional or mental exhaustion combined with doubts about your competence and the value of your work.” Job burnout symptoms can include lack of motivation, cynicism, frustration, impatience, irritability and even physical pain like headaches and backaches.

    From demanding deadlines to bad bosses, there are many factors that can be attributed to the causes of job burnout. Lack of control, unclear job expectations, dysfunctional workplace dynamics, unreasonable time pressure and work-life imbalance can all cause an employee to experience burnout from work.

    Effects of job burnout

    An overworked, over-stressed and unhappy employee can take a serious toll on any company. Burnout affects every facet of an organization, with decreases seen in production, morale, retention and revenue.

    Quantity and quality of work both suffer when an employee is burned out. Data from The O.C. Tanner Institute’s Health and Wellbeing Study revealed that employees with poor wellbeing, on average, self-reported that they are only working at 64 percent of their maximum output. That’s because employee productivity decreases with a lack of motivation, causing slower work and lower productivity.

    The previously mentioned Gallup survey also found that employees who suffer from burnout are 63 percent more likely to take sick days, as burnout can lead to increased instances of illness. You’ll also start to see increased errors in work, which could be attributed to factors including apathy, lack of communication and/or time constraints.

    You’ve likely heard the saying, “it only takes one bad apple to spoil the bunch,” and the same can be said for a burned-out employee. Employee burnout is highly contagious, as team morale decreases, and workplaces are more susceptible to conflict, ultimately resulting in a toxic work environment.

    Retention rates will suffer with good workers leaving bad situations due to burnout. A study conducted by Kronos and Future Workplace found that burnout is the biggest threat to employee retention, according to 95 percent of human resources leaders.

    Overall, job burnout can cost your organization serious losses in revenue. The American Institute of Stress estimates that job stress can cost U.S. businesses as much as $300 billion annually.

    Job burnout solutions

    You don’t have to—and shouldn’t—accept burnout as part of the job. While job burnout doesn’t just happen overnight, it can creep up slowly if you’re not paying attention to the warning signs. Job burnout can be prevented (and even reversed) by changing how you manage and lead your employees. Follow these five steps to prevent job burnout at your organization.

    Define goals and expectations

    Regular check-ins with employees can increase productivity, lower stress levels and encourage open communication throughout the company. Perhaps that’s why 65 percent of employees wished they received more feedback from their employer, according to a study by employee engagement firm Office Vibe.

    When was the last time you had a check-in with an employee that involved more than just giving project updates? Frequent check-ins and employee reviews can help make sure goals and expectations are clearly defined by providing direction, eliminating guesswork and creating better employee/manager relationships. These check-ins can also help you spot a burned-out employee.

    Should you notice signs of burnout in one of your employees, address the situation head-on by scheduling a one-on-one meeting to determine ways you can work together to reverse the symptoms before they escalate.

    Delegate tasks evenly

    When you’re understaffed, it’s easy to see how employees can become overworked or overwhelmed. Just make sure it’s not one person carrying the entire team. A study by the Families and Work Institute found that almost one in three employees feel overworked or overwhelmed by the amount of work they have to do.

    Overloading employees can cause stress and increase the chance of burnout if the weight of responsibilities becomes too much.

    If your employees are downing in a sea of work, it’s up to management to provide the life rafts—not add stress by upping the workload. To prevent work overload, distribute job responsibilities fairly, monitor scheduling, set reasonable deadlines and arm your employees with the tools and resources needed for them to be successful. Even more than that, create a culture where the word “no” is respected.

    Foster creativity

    On the flipside of being overworked, burnout can also occur when employees are bored or under-stimulated. A Gallup study found that about two-thirds employees are disengaged on the job, which means they are not performing to their full potential.

    Creativity helps maintain mental fitness by keeping the mind sharp and increasing engagement and motivation. Holding brainstorming meetings or inviting employees to participate in decision-making processes can be great ways to keep employees engaged.

    Additionally, sending employees to training courses or conferences can rejuvenate employees, boost productivity and help not just them, but also your company reach its full potential.

    Encourage breaks and vacation time

    Vacations are good for more than fancy drinks with tiny umbrellas in them. A 2015 study by the American Psychological Association found that vacations make for great stress relievers, which can help prevent burnout.

    But don’t think that just because your organization has a vacation policy that workers will actually take advantage of it. Many employees think they can’t take time off over fear of being replaced, they’re burdened by too heavy of a workload or there’s simply no one else who can cover their work while they’re gone. Perhaps that’s why 52 percent of employees left unused vacation time on the table in 2018, collectively throwing away 705 million vacation days, according to the U.S. Travel Association’s Project Time Off.

    Not only do you want to encourage your employees to take time off, you need to make sure they stay off. Discourage the practice of working after hours or answering email while on vacation—and lead by example. Allowing flexible scheduling or remote work options can be another way workers can catch a break from the office bustle.

    Show appreciation

    Saying “please” and “thank you” is more than just polite manners. A study conducted by Clear Review, a performance review software system, found that the top workplace frustration is a lack of appreciation regarding performance and effort, with 40 percent of employees saying that employee recognition isn’t a priority at their company and thus limited their motivation to truly excel.

    Give credit where credit is due by showing your employees their hard work is appreciated. Recognizing accomplishments and top performers can help increase employee engagement. It also provides management with an excellent opportunity to provide feedback and guidance for an employee’s growth and development.

    A few ways you can show your appreciation could be as simple as a round of applause in a meeting or celebratory lunch, presenting an award, or rewarding an employee with a promotion and/or pay raise.

    Ignoring the warning signs of employee burnout and promoting dysfunctional organizational standards can create a serious burnout epidemic for your organization. However, leaders can work to eliminate burnout by being proactive and taking measures listed above. Decreasing job stress and creating work-life balance will help drive your organization’s continued success by reducing burnout and raising engagement, productivity, retention and revenue.

    Contact Group Management Services today to talk with one our experts about job burnout solutions for your organization.