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  • Hiring talented, committed employees is a crucial part of running any business. Identifying those key employees is especially important when you need to lean on those individuals during a recession. Even during tough times, you may find yourself in a position where you need to grow your team. Between financial concerns and a growing pool of potential candidates, it’s important to weigh a few factors to ensure you make the right hiring decision for your business.

    An employer finding the right new employee during a recession.

    Scrutinize Each Open Position

    In a recession, you may not have quite as much flexibility to add to your payroll. This impact on your bottom line means that it’s additionally important to review your hiring needs and estimate timelines and costs. If you’re looking to add employees, you’ll need to examine short- and long-term needs and see how adding people will impact your business. 

    To start, analyze every opening. Is this a role that’s absolutely essential or will help generate business, even during a recession? You’ll want to determine the importance of each potential position and fill the most crucial roles first if you need to be picky. You’ll also need to try and forecast how the recession will affect your business – if there’s a fair chance you’ll need to furlough or let people go in the near future, you should hold off on adding employees. You can also get creative with certain openings. Freelance or temp workers are a short-term solution that can help when money is tight.

    Evaluate Your Current Staff

    If you’re looking to fill certain positions, you should also look inward for hiring opportunities. There may be a talented employee ready to make the jump and take on more responsibilities instead of having to hire another person. This scenario is hugely beneficial during a recession for a couple of reasons. 

    First, internal hires tend to cost less than external ones. Not only can promoting from within take less time and effort than a lengthy interview process, the starting salary for external hires is roughly 18 to 20 percent higher on average than internal candidates. Second, you already know how an internal candidate fits into your company culture. This familiarity is extremely important, especially when you consider that external hires are 61 percent more likely to be fired from new positions than people who are promoted from within.

    There’s also a chance that after evaluation, you may realize that you don’t need more employees – or that you may need to fill more holes than you expected. It’s good to take a critical look at your organizational structure and current staff. To do this, the Society for Human Resource Management (SHRM) suggests asking yourself a few questions:

    • Do we have the right leaders, and are they in the right positions? 
    • Is our staff aligned to meet organizational goals?
    • What opportunities do we have to improve or grow the business? 
    • How can we best structure our work groups to achieve optimal results? 
    • How can we reduce costs without compromising the quality of our product or service? 
    • Can we automate or outsource any functions or processes to drive internal efficiency?

    The answers to these questions can help inform key decisions, which is especially important during a recession. An in-depth review of your team will help you identify ways to make your workforce more efficient or gaps that can be filled by existing employees. You may also learn that you need to fill a different role than originally planned. Regardless, looking inward can help you get the team you need in place so that you can stay strong during a recession.

    Market Your Business, Not Just the Job Opening

    A recession is an unsettling time for both employers and employees. Seeing friends, family, and coworkers get furloughed or laid off can make a once promising job candidate less likely to look for a new job. There are also a few other reasons why potential prospects would refrain from job hunting:

    When talented prospects are hesitant to move, it’s time to approach recruiting with a marketing mindset. Make it clear to candidates exactly why your business is a great landing spot. If you know that your business is financially secure, make it clear to concerned candidates that the new position is a safe landing spot for talented, innovative people. 

    Showcase the aspects of your business that make your brand an attractive one to work for, whether that’s an attractive benefits plan, quality of life perks, or any other differentiators. It’s also important to listen to desirable candidates about what they want in a job. These details can help you understand what it takes to attract top talents in trying times and adjust your recruiting approach accordingly.

    Be Selective, But Don’t Drag Your Feet

    With layoffs and furloughs, the hiring pool is larger than usual during a recession. These factors may give you a wider group of potential prospects, it can also mean that there are more unqualified people eyeing your positions. As such, it’s crucial that you work to find the right candidate for the job. If you have specific requirements, make them clearly known on job descriptions to narrow your candidate pool to the proper people. Don’t be afraid to be picky – hiring a new employee is a major investment, so finding the best fit is key.

    Once you identify someone as a top target, it’s time to act. You’re not the only company looking to hire in a recession, so top talent can disappear quickly once other companies recognize their worth. If you feel great about a candidate after going through the interview process and the background check comes back clean, don’t hesitate to make an offer before another business does.

    Get the Right Team in Place for Your Business

    A recession is a challenge for just about every business, but having the right people in the right seats can help keep your business stable during difficult financial times. Do you need help recruiting the right employees for your business? Contact GMS today to talk to one of our experts about employee recruiting services and employee benefits administration to attract top talent to your team.

  • Working from home creates a few challenges – more distractions, an inability to work in the same room as your coworkers, etc. Each of these realities can have a direct impact on productivity. With more employees working from home than ever before, it’s important to take steps to set telecommuting employees up for success. Here are four ways that you can help your employees stay productive when working from home.

    A remote emplyee using video conferencing technology to stay productive. 

    Set Regular Check-ins

    Just because you’re not in the same place as your employees doesn’t mean you can’t connect with them. While emails and group chat platforms are helpful for regular communication, regular face time is still very important. As such, consider scheduling regular check-ins that can help you or appropriate managers set work priorities and build a rapport with the team.

    In terms of facilitating these check-ins, phone calls and video chats can help employees hear other people’s voices and even see faces to help create a sense of normalcy. Depending on the size of your company or specific departments within your company, you can hold group check-ins and sprinkle in some one-on-one meetings as well. You’ll also want to figure out a frequency that makes sense for you and your employees. For some groups, you may want to consider daily check-ins. That may sound like a lot, but a 10-minute video chat every morning can mean a lot if it helps employees set priorities and feel less separated from their coworkers.

    Use Technology and Productivity Tools to Your Advantage

    Speaking of group chat platforms and video conferencing technology, you should consider investing in some tools to help everyone stay connected. These tools can take on a few different forms, including:

    • Group chat
    • Video conferencing
    • Project management platforms

    Group chat tools like Slack and HipChat are a great way for people to quickly connect with each other in a way that’s more convenient than an email chain. Whether someone has a quick question or needs to pose a question to a group, these tools can help people communicate in a more natural and immediate way. Similarly, video chat platforms like Zoom or Microsoft Teams add an even greater level of connection – when someone is stuck at home, seeing a friendly face can help increase engagement between coworkers and even clients during meetings. 

    Finally, project management platforms like Trello and Asana allow people to track tasks, share details, and set deadlines and priorities in a place where multiple people can see them. That level of transparency can be very helpful when you or a manager needs to identify which tasks are falling behind or need more attention.

    Help Establish Dedicated Workspaces

    Not only are dedicated workspaces a good safety measure, they can make a big difference in terms of productivity. Working from home offers a lot of advantages for employees – no need to commute to work, more time with your family, etc. Those same advantages can also tank employee productivity if they’re not careful.

    While you can’t completely cut out the normal distractions of home life, dedicated workspaces can help mitigate their impact on your employees. If you haven’t already, encourage your employees to create some form of home office that helps separate them from communal spaces and potential disruptions. You can also give them some pointers as to how they can help improve at-home work life. For example, you can share these tips from Fast Company with your remote workers.

    • Follow ergonomic rules to create a healthy working space
    • Embrace natural light when possible and use lamps to provide ample lighting when necessary
    • Set up a storage system to make sure you have papers and files on hand when you need them
    • Create some comfy space for occasional breaks or if you need to work in a different position
    • Personalize your space and rotate items to add some spark to your environment
    • Hide items you don’t want to look at, such as bulky power cable or items that will distract you 
    • Overstock on items you may need so that you don’t need to leave your workspace every time you need something

    Provide Ongoing Support

    While working from home has its advantages, it’s a much less social experience than being in the same space as coworkers. It’s not uncommon for remote employees to feel lonely or more detached. As such, it’s important to provide emotional support to employees as they’re separated from everyone else. 

    One way to offer this support is through frequent, clear communication. Regular emails, company messages, and check-in meetings can help ease concerns and restore some sense of normalcy. You also want to make employees aware that you and appropriate managers are readily available for employees. Consider setting up regular “office hours” for any employees who have questions or concerns, or share preferred ways that workers can contact you if necessary. 

    Another method of support is to encourage employees to take time to de-stress and take time to get away from work. It can be easy for remote employees to develop bad working habits when they live where they work. Take some time to stress that quality sleep, exercise, and mental health breaks are an important part of every work day. 

    Give Employees Non-Work Socialization Opportunities

    You can also help break up some of the telecommuting monotony by embracing team building events and other non-work interactions. Video happy hours, game nights, and other social interactions can help employees relieve stress and connect, so consider adding in a few regular events to give workers a chance to decompress together.

    Put Your Business in the Position to Succeed

    No matter where your employees work, it’s important to have procedures in place to help your employees succeed. Want to find out other ways you can set your business up for success? Contact GMS today to talk to one of our experts about how human resource outsourcing can help you free up more time to focus on your business and prepare for the future.

  • As a small business owner, you’re always trying to find new ways to make your business simpler, safer, and stronger. Co-employment is one way that employers can not only accomplish these goals, but also save time by leaving HR tasks to the experts.

    A co-employment relationship with a Professional Employer Organization (PEO) allows small business owners to outsource key HR functions like payroll and employee benefits. While co-employment can help employers free up their responsibilities, it’s not always clear exactly how this relationship impacts a business. Let’s break down what co-employment means and why it may make sense for your organization.

     

    What is Co-Employment?

    The term co-employment refers to the relationship between your company, your employees, and your PEO of choice. The National Association of Professional Employer Organizations (NAPEO) offers a good co-employment definition to describe this affiliation: “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).”

    In short, businesses partner with PEOs to split up employer responsibilities between the two. This agreement extends far beyond simply helping out the business with HR decisions – a co-employment agreement means that your employees are technically employed by both your company and the PEO. 

    While both you and your PEO employ your workers, you still remain in command. Some people avoid co-employment because of misconceptions that you’ll lose control of your business. That’s simply not true. You get to set the co-employment arrangements in your CSA. While your PEO may be viewed by the state as the employer of record, you have the final call when it comes to critical business decisions. 

     

    Reasons Why Businesses Choose Co-Employment

    As we said before, the co-employment relationship opens businesses up to a variety of benefits. The main reason for sharing employer status is that it opens your business up to tools and HR services that you wouldn’t have access to as a small company. Here are five big ways that co-employment adds value to your business.

     

    Greater buying power for benefits

    As a small business, you simply don’t have the same buying power that big companies enjoy. Co-employment helps you level the playing field.

    The co-employment relationship allows your business to take advantage of economies of scale. PEOs can leverage the collective buying power of all their group health clients. This large employee base means that your PEO can give you a lot more bang for your buck when purchasing quality group health plans on your behalf. 

    Co-employment doesn’t necessarily mean that your business’ group is pooled together with all the employees from other companies. Some PEOs build their own plan designs to keep your group separate from the others. That means your company is rated for your own group and you won’t have to settle for less. In turn, you can focus on getting quality, cost-effective plans that are competitive with bigger companies.

     

    Simpler, less time-consuming payroll

    In a co-employment relationship, your PEO takes on the responsibility of paying your employees. Every business needs to apply for an Employer Identification Number (EIN) in order to manage their own payroll. Companies in a co-employment relationship agree to have the PEO assume this responsibility under its own EIN.

    Changing out the EIN may not sound all that exciting, but it allows you to offload a lot of complicated, time-consuming tasks off your plate. By allowing the PEO to use its own EIN, that PEO is now responsible for more than just passing out paychecks. These other payroll administrative tasks include:

    That’s a whole lot of time (and math) that’s no longer your main responsibility. The other benefits of having your PEO handle these tasks is that it can help ensure that all your calculations and filings are both accurate and compliant with payroll guidelines. With a PEO, you know your payroll is being handled by people who were trained to handle these tasks.

     

    Better risk management and workers’ compensation practices

    Another way that businesses can benefit from a co-employment relationship is through improved workplace safety and risk management. A PEO can help your company qualify for workers’ compensation discounts and keep unemployment tax rates down, saving you plenty of money and headaches in the future. 

    As a co-employer, a PEO may even be able to assume the financial risk of providing workers’ compensation benefits to employees for you. For example, GMS is self-insured in the state of Ohio and can offer potential discounts that still comply with state regulations.

    Even outside of monopolistic states, a PEO can help you through means like safety culture and claims management. These processes not only help you create a safer environment for your employees, they also help you save money on workers’ compensation costs. Risk management measures include:

    • Safety training
    • Risk assessments
    • Timely reporting
    • Post-accident investigations
    • Return-to-work programs

     

    Better business alignment

    When you enter a co-employment agreement, your PEO acts as more than just a vendor. This relationship means that your PEO is a true partner that is invested in the growth of your company. In turn, a good PEO should do everything it can to drive good, sustainable growth for your business. 

    As your company grows, you may need more than just payroll administration or benefits help. The co-employment relationship gives PEOs more reason to care about your business goals and work with you to find ways to grow. A PEO can help you identify ways that you can enable that growth and retain talented employees, including: 

    • Employee recruiting and training
    • Performance management
    • Unemployment claims
    • Human resource audits
    • Wellness programs
    • Telemedicine

    In addition to helping you grow when you need to, being co-employed by a PEO also means you have access to experts when you need them. This breadth of resources can help you stay on top of any trends or regulatory changes that can impact your business.

     

    Find the Right Co-Employment Partner for Your Business

    Running a small business is no simple task. Small business owners have to maintain a delicate balance between trying to grow their business and manage a litany of critical HR responsibilities. Co-employment gives them the means to delegate those time-consuming tasks to professionals who are invested in the success of your business.

    Ready to make your business simpler, safer, and stronger? Contact GMS today about how we can save you plenty of time and headaches through a mutually beneficial co-employment relationship.

  • The employee performance review has been a standard business practice for decades. However, not all organizations recognize that there’s a fine line between a valuable performance review and an unhelpful one. 

    When done well, performance reviews are an incredibly powerful tool for driving employee success. When done poorly, they simply waste time and leave employees frustrated. The downsides of bad performance reviews have led some companies to shift away from performance reviews in recent years. However, it’s better to solve these issues than avoid them altogether.

    There is immense value to developing an open, honest avenue for managers to discuss an employee’s performance and opportunities for growth. Let’s break down employee appraisal tips that your business can do to create positive appraisal experiences that drive your employees to succeed.

     

    The True Goals of Employee Performance Reviews

    Simply put, employee performance reviews are conversations where a manager and an employee openly discuss that employee’s performance, development, and growth. This conversation is a key way to identify ways for both personal and company improvement. The word “conversation” is critical here – these appraisals should be a two-way conversation. 

    The reason why it’s important to have a conversation is that the employee should be just as engaged as the manager. Employee performance reviews are not designed for immediate fixes. If there’s a problem that requires immediate resolution, you shouldn’t wait for an appraisal. 

    Instead, performance reviews are meant to create regular opportunities for managers and employees to align their efforts and determine how they can maximize performance. As such, performance reviews give you an opportunity to work with your employees and achieve the following goals.

    • Create and review expectations, standards, and rules.
    • Educate employees about any behaviors they need improvement or modification.
    • Identify any strengths and weaknesses that weren’t already known.
    • Chart a course for the employee’s future.
    • Learn more about the employee.
    • Send a message that you care about the employee, both personally and professionally.

    7 Performance Review Tips for Managers

    By focusing on the appropriate goals, your performance reviews can help motivate team members and improve performance levels. However, those ideal goals will only go so far without proper execution.

    It’s essential to make the employee performance review process as positive of an experience as possible. The following tips can help you learn how to conduct performance reviews and build a culture of continuous improvement for your employees.

     

    Prepare ahead of time

    The first step toward any successful employee appraisal is preparation. Both you and your employees should come prepared to performance reviews with notes and talking points. The following items and information can also help.

    • A copy of the employee’s personnel file.
    • Documentation from past reviews, including previously set goals, objectives, and notes of interest from prior conversations.
    • Feedback and notes from supervisors or coworkers.
    • Relevant performance data and customer feedback.
    • SWOT analysis.

    A shared agenda will also help set a positive, constructive tone for the meeting. Some employees will go into a review expecting an interrogation that will directly impact their future compensation. Giving them an agenda and questions to think about will help them be in a mindset for growth instead of being tightlipped and careful about the information they share. 

    You can also prepare by asking employees up for review to share any topics they want to discuss. This gesture not only allows the employee to change the agenda to be more valuable for them, but also shows that you’re ready to listen. That two-way connection will encourage employees to contribute more to the review and own their path for professional improvement.

     

    Speak carefully and ask the right questions

    Your choice of words make a big difference. The right words and tone can help motivate your employees. Meanwhile, less friendly phrases will only make them dread these occasions in the future. 

    In terms of your message, try to focus on specific language that makes employees think in positive terms. For example, emphasize that the goal of each review is to solve problems and identify ways to help both the employee and the company grow. This constructive approach can keep employees engaged and look forward to the future. 

    The questions you ask are a major part of this process as well. These queries should mirror the same positive approach. The following questions are great ways to emphasize the future and and create steps for improvement.

    • What goals do you have for the next quarter, year, or other period of time?
    • What accomplishments are you most proud of from your work?
    • What goals do you want to set for your own development?
    • Are there any hurdles that we need to solve together?
    • What can I do to improve as your manager?

    Listen as much as you speak

    Even if you know that performance reviews should be a two-way conversation, it can be easy to end up talking most of the review. A two-way conversation should never feel like an interrogation or like only one party is talking. Employees may be hesitant to share too much information out of fear of saying something wrong. 

    It’s important to make sure that everyone being reviewed not only feels comfortable enough to share genuine thoughts, but also know that you’re actively interested in what they’re saying. Make sure to ask them about topics where they can lead the conversation. When an employee has interesting feedback, ask a follow up question to delve into the topic even further. You should also repeat back what you heard from them to confirm that you listened to their points and can clarify if there’s any misunderstanding. These practices will help you gather more critical information and show employees that the reviews are an ongoing conversation and not a one-sided affair.

     

    Give specific examples for both good work and areas of improvement

    Vague or generic criticism doled out during performance appraisals is only going to frustrate and disenchant employees. The best way to provide genuine critical feedback is to have concrete examples for good achievements and areas of improvement.

    One major benefit of using specific examples is that they provide very clear examples of exemplary or subpar work. Exact examples provide teachable moments of what can be done to improve that provide more weight than general feedback. 

    Examples also have the benefit of showing that you and your management team are paying attention. Whether you’re identifying ways for the employee to improve or providing accolades for good work, it shows the employee that his or her work hasn’t gone unnoticed. That level of attention gives your feedback more weight and helps your workers feel like they aren’t invisible. These employee performance tips ensure that your input leads to a good outcome for both the employee and the individual when giving feedback.

     

    Track employee progress

    In order to maximize the benefit of performance meetings, it’s essential to track that your efforts make a difference. You should do your best to find measurable goals and evaluate your employees’ progress over time. When you review these goals, try to answer the following questions

    • Do you see positive progression for measurable goals?
    • Has employee performance improved, declined, or stayed steady?
    • Has employee morale increased, decreased, or stayed steady?
    • Is the employee more confident than they were in past reviews?

    Over time, you should see employees continue to grow in their roles. If you’re not seeing positive results, you may want to change the goals or try a different approach toward maintaining professional growth.

     

    Have next steps for after the meeting

    The performance review is just one step in a long process. Once the appraisal concludes, you and your employee should review everything that was discussed and complete the following:

    • Review notes from what was discussed during the meeting
    • Determine and define next steps 

    A performance conversation shouldn’t end when the meeting is over. After the conversation concludes, managers and employees should review notes, define next steps, and follow up with shared comments and feedback. Without these items, performance conversations feel unresolved. If you want your review to actually improve performance, it’s vital to create an action plan and follow through on that plan.

     

    Make performance reviews a regular exercise

    The conversation between management and employees doesn’t need to be an infrequent occasion. Performance conversations should be a regular event to help encourage improvement. Why wait another 12 months to try and focus on growth when regular feedback can help improve your company even sooner?

    Once you finish a performance review, try and schedule the next conversation as soon as possible. The cadence of these meetings will differ depending on your organization, but quarterly or monthly appraisals are good places to start. These regular meetings will not only keep the conversation going, but also show your employees that you care about their development.

    It’s also important to note that conversations shouldn’t be limited to just performance reviews. Constructive discussions can happen outside of scheduled appraisals. An open-door policy can help employees feel more comfortable talking about potential issues or paths to improvement at other times. This level of openness can help you make continuous performance a part of your culture instead of an unhelpful annual event.

     

    Set Up Your Employees for Success

    Your employees are your greatest asset. However, ongoing employee management is a major challenge, especially when there’s only so much time in the day. That’s why GMS works with businesses to help employers with everything from performance management to payroll administration.

    As a PEO, we help small businesses take control of critical HR management functions so that they can spend their time on other key business tasks. Contact GMS today about how we can save you time, money, and plenty of headaches by helping you take control of critical HR functions.