In today’s competitive job market, retaining valuable employees is a top priority for businesses. When employees feel fulfilled, engaged, and valued, they are more likely to stay with the company for the long haul. Creating a positive and enjoyable workplace environment is essential for achieving high retention rates and mitigating the costs associated with employee turnover.

Shift Your Expectations

It’s important to recognize that the notion of employees staying with a single company for their entire career is no longer realistic. Instead, companies should focus on keeping employees for as long as possible, understanding that the median tenure for U.S. workers is around four years. Factors such as generational differences, burnout, work-life balance, and post-pandemic shifts have contributed to shorter tenures and higher turnover rates.

The median tenure of workers ages 55-64 was 9.9 years – more than three times the tenure of workers ages 25-34, which was 2.8 years. As the older generations retire, Millennials and Generation Z will soon dominate the workplace, and there will be less expectations that employees stay with companies in the long-haul.

Addressing The Fundamentals Of Retention

Retaining top talent is a constant challenge for many organizations. However, by addressing key fundamentals, companies can create an environment where employees feel motivated, valued, and committed to staying. Three critical areas to focus on include:

1. Competitive compensation: Regularly review your compensation strategy to ensure it aligns with industry standards, competitors, geographic location, and the broader marketplace. Fair compensation remains a major factor in employee retention.
2. Open communication: Build trust and strengthen relationships with employees through regular, honest, and transparent communication. This not only helps in addressing concerns promptly but also makes employees feel valued and heard, fostering a sense of belonging. Employees want to feel that their manager is accessible and listens to them. Provide frequent feedback, solicit input, and address concerns promptly.
3. Positive company culture: Evaluate and nurture your company’s mission, vision, and values. Ensure they resonate with employees and are modeled within your leadership. A positive company culture not only helps in employee retention but also makes employees feel aligned with the company’s values and mission, fostering a sense of purpose and commitment. Identify any changes that need to be made within your culture, and work towards implementing those changes. It’s easy for employees to leave a company with a negative culture or a culture they do not believe in.

Make The Extra Effort

To be a sought-after workplace, you must have something special about your workplace that differentiates itself from others. Implement the following strategies to stand out against your competitors and become a sought-after workplace:

• Create a community: Encourage teamwork, camaraderie, and even friendships among employees. Host social events and team-building activities and create an environment where employees feel like members of a community. Make these events and activities something your employees look forward to doing.
• Remind employees of their purpose: Regularly remind employees of the bigger picture and how their work contributes to the company’s mission. Recognize their efforts and make them feel valued.
• Offer flexibility: Accommodate employee preferences for remote work, flexible schedules, or hybrid arrangements. The increased flexibility and work-life balance gained throughout the pandemic have become highly valued by many employees.
• Address burnout: Monitor for signs of burnout and take proactive steps to alleviate stress, such as offering mental health days, redistributing workloads, or engaging in stress-reducing activities.
• Tailor management styles: Understand each employee’s unique personality, goals, and preferences, and tailor your management approach accordingly. Avoid the one-size-fits-all approach.
• Provide growth opportunities: Nurture a culture of continuous learning by offering training programs, conferences, and mentorship opportunities. Discuss career paths and succession plans with employees. Employees appreciate knowing that they can grow and develop within their careers.
• Offer unique perks: Implement perks and benefits beyond the standard package that align with your employees’ interests, provide value, and demonstrate your appreciation for their contributions.

Create a fun atmosphere: Incorporate fun activities, celebrations, and team-building events to foster a positive and enjoyable work environment. Take the time to learn what your employees truly enjoy and implement more of these events for them.

Leverage GMS’ Services For Improved Employee Retention

Implementing these strategies can be challenging and overwhelming for business owners. If you’re unsure of where to begin or what would be the most beneficial for your organization, consider partnering with a professional employer organization (PEO) like GMS.

Partnering with GMS can be a smart move to access expert HR support, ensure compliance, and compete with larger companies in the race to retain top talent. Outsourcing back-office functions also allows businesses to focus on their core operations while providing a positive and engaging workplace for their employees.

By leveraging GMS’ expertise, businesses can create a workplace environment that attracts and retains top talent. GMS’ tailored solutions and industry expertise can help business owners foster a culture of belonging, growth, and appreciation, ultimately leading to improved employee retention and long-term success. Work smarter, not harder, and contact us today.

According to a workforce trend report, employee retention has become the top priority for operations and HR in 2023. One of the most effective strategies to achieve this is investing in employee development programs. These programs not only enhance employees’ skills and knowledge but also foster a sense of loyalty and commitment to the organization.

Sixty-one percent of HR professionals state that lack of development and career advancement is the second most common reason for employee turnover, behind inadequate compensation. Twenty-one percent of HR professionals report lack of development as the number one factor influencing retention. 

The Importance Of Career Development For Employees

Employee development programs are attractive to employees because they provide opportunities for personal and professional growth, increase job satisfaction, and boost confidence in their abilities. When employees feel they are excelling in their careers, they are more enthusiastic about doing them. Instead of being stagnant in a job, employees would like to progress towards something more significant, such as a promotion or a leadership position. Employees who feel valued and supported in their careers are more likely to remain with the company for the long term.

Why Should Employers Invest In Employee Development? 

Investing in employee development leads to a more skilled and productive workforce. Employees who receive continuous training and education are better equipped to handle challenges, adapt to changes, become leaders, and contribute to innovative ideas. This can give your company a significant competitive advantage in your industry.

Sometimes, employers believe that development is expensive and risky. They don’t want to invest money in development only for their employees to take that knowledge to a new job. However, employees leaving will always be a risk. If you choose not to invest in employee development, there will be widening knowledge and skill gaps, diminished engagement, and a lack of innovation.

Investing in development also helps you recruit top-tier candidates who want to join a company that is committed to growth. Happier and more engaged employees tend to be more productive and motivated to do better work. By focusing on continued learning, you can encourage a culture of innovation and adaptability that gives your business a reputation for being forward-looking, relevant, and fresh.

It’s also essential to advance employees’ knowledge and skills so that eventually, they can be promoted to leadership roles. Promoting from within is almost always easier than recruiting from outside. This also contributes to a future-ready workplace that can keep up with evolving trends and stay ahead of the industry.

Create A Retention-Boosting Employee Development Program

To craft an engaging and practical training program that aligns with employees’ daily workflows and piques their interest in learning, consider incorporating the following elements into your plan:

Continuous learning

As a small business owner, it’s essential to promote a continuous learning culture. Due to the constant evolution of industries, there’s always something new to learn. You can promote your company’s commitment to learning through your core values, employee handbook, employee training, company meetings, and day-to-day employee conversations.

Personalized development

Involve your employees in the planning process by asking them about their short and long-term goals, which skills they are interested in learning, and how they enjoy learning. Take these factors into account when you create your development program to ensure it’s a meaningful, engaging, and fulfilling experience for your employees.

Day-to-day operations

Your development program should be easily implemented in daily operational activities and the company’s goals. Employees must feel what they are learning is valuable to their daily working lives and enable them to make a positive impact on the organization.

It’s also important to create short and more frequent bursts of micro-training focused on singular topics that employees can complete on their own time. If the training is short and easy to digest, it will be easier to implement as a frequent activity that fits into their busy day-to-day schedules. As a result, learning will be incorporated into the workplace culture more often, be more effective, and occur more often.

Make it simple

Development programs can involve attending conferences and going on trips, but it can also be simple. Learning can be as convenient as:

• Reading an article in an industry publication
• Listening to a podcast
• Completing a short e-learning module
• Attending a lunch-and-lean session
• Engaging in a coaching session with a manager

Your employees do not always have to go elsewhere to achieve professional growth. Growth can happen right within your organization, including mentorships with someone in higher positions, peer collaboration, and cross-training. Leaders should lead by example and actively support employee development initiatives.

Monitor and reward

Sometimes, employees need an extra push to complete development programs. Reward employees for mastering new skills, from anything to a bonus, extra paid time off (PTO), a gift, or a promotion from within. Recognizing and rewarding employees who demonstrate mastery of new skills can motivate others to engage in development opportunities.

It’s also essential to monitor the effectiveness and appeal of your development programs and what works and what doesn’t. Ask for feedback from employees on what they would prefer and how to improve. Study your turnover rates, survey employees about the development opportunities you’ve offered, ask about development opportunities during exit interviews and have managers talk with employees in one-on-one meetings.

Your Partner In Employee Development And Retention

In today’s rapidly changing environment, investing in employee development is no longer an option but a necessity. Your employees are your greatest asset. However, ongoing employee management and training are significant challenges, especially when there’s only so much time in the day.

That’s why GMS works with businesses to help them retain top talent. Our comprehensive suite of services is designed to support businesses in creating and implementing effective employee development programs.

Our HR experts work closely with clients to assess their unique needs and develop customized solutions. Contact us today to learn how we can support your organization’s commitment to development.

In today’s fast-paced and increasingly demanding work environments, managing leave of absence requests is crucial for maintaining operational efficiency and employee well-being. However, balancing your business needs with your team’s health and satisfaction is often difficult.

Leave of absence, separate from paid time off (PTO), allows employees to take extended time off to address personal matters. Leave of absence can be unpaid; however, employees will continue to receive their healthcare package and have guaranteed job security.

A leave of absence, whether for health reasons, family care, or personal development, is not just a logistical issue—it’s a critical component of an employee’s relationship with their workplace. How you handle these requests can deeply influence employee morale, trust in management, and your company’s reputation as a caring employer. In addition, with rising awareness of the importance of mental health and work-life balance, businesses are under increasing scrutiny to adopt leave policies that support their employees’ well-being.

Beyond these factors, as a business owner, you also have legal responsibilities regarding employee leave. Employees are protected by laws such as the Family Medical Leave Act (FMLA), and failure to address leave requests appropriately or retaliating against an employee who takes leave can result in lawsuits, penalties, and reputational damage that will be difficult to recover from. While a leave of absence can be stressful, we’ve gathered some resources to help you navigate them with your team while ensuring compliance.

Creating A Leave Of Absence Policy

One of the most significant concerns among employees is the fear that taking leave might hinder their job security or career progression. This fear can discourage employees from applying for leave, even when they genuinely need it, damaging morale, productivity, and more. By establishing a clear leave policy, communicating it effectively, and fostering an environment of open communication, you can empower your team to prioritize their health without fear of negative repercussions. Your leave policy should include:

• Request and approval procedures: Detail the process for requesting leave, including advance notice requirements, the use of official forms, and whom employees should notify regarding their absence. In addition, describe how leave requests are evaluated and approved, including who can grant or deny leave and under what circumstances.
• Eligibility criteria: Clearly define who is eligible for leave of absence, including full-time, part-time, and temporary employees, as well as any specific conditions or probationary periods.
• Reintegration outline: Outline and communicate a reintegration plan with your team. Return-to-work programs help employees ease back into their job roles, potentially starting with part-time hours or adjusted duties.
• Anti-discrimination policy: Explicitly prevent discrimination in performance evaluations due to leave. This can help reassure employees that their absence will not hinder their career progression.
• Documentation requirements: Specify any documentation employees need to provide when requesting leave, such as medical certificates for sick leave or proof of eligibility for parental leave.
• Employee responsibilities: Communicate employees’ duties during leave, such as staying in touch with supervisors, adhering to company policies, and providing updates on their status.
• Consequences of policy violations: Explain the consequences of violating the leave policy, including disciplinary action, loss of benefits, or termination of employment.

Preemptively establishing a leave of absence policy not only protects employees but also contributes to a more loyal and productive workforce. Though it takes time and effort to generate, being caught without a plan can lead to stress and internal confusion that will impact your bottom line.

Managing Workloads During A Leave Of Absence

It’s crucial to have strategies to ensure operational continuity during leave. In certain situations, detailed planning may not be feasible, such as an unforeseen injury to a loved one that requires an employee’s leave for caregiving. Conversely, in cases such as parental leave, there may be more lead time to organize workloads. Regardless, ensuring you have a detailed plan will help ensure your team remains productive. You can do this through:

Cross-training employees

Cross-training your team is a practical approach to mitigate the risk of being caught without adequate coverage. It requires your team to learn the roles and tasks that may not be part of their day-to-day. By ensuring that every team member possesses a broad range of skills and knowledge, critical tasks can still be completed regardless of when leave is taken. This proactive measure safeguards against disruptions and fosters a collaborative and supportive company culture.

In addition, cross-training promotes skill development and empowers team members to take on new challenges and responsibilities. It encourages flexibility and adaptability within the workforce, ultimately enhancing your organization’s overall resilience and productivity.

Contract or temporary hires

Another way you can ensure your team continues to operate at peak efficiency is by leveraging contract workers or temporary hires. Bringing in additional support can prevent existing team members from becoming overburdened with extra responsibilities and potentially burning out – particularly for longer leaves such as parental leave, which can extend up to three months or more.

Delegate and communicate

Leave can be a stressful time for employees. To mitigate employee stress, your leadership team should make a detailed plan and delegate important tasks to the remaining staff. After delegating tasks, establish regular check-ins with the team. These check-ins can assess not only task progress but also accurately gauge team morale and identify signs of burnout or discontent.

Pitfalls To Avoid

When an employee takes leave for an extended period, it’s essential to ensure you have your paperwork in order. Details such as payroll should be worked out ahead of time if possible. Mishandling payroll during an employee’s absence can result in over or underpayment, which can be difficult to fix later. Take the time to review and adjust payroll calculations accordingly, factoring in any changes to hours worked, leave entitlements, and benefits.

In addition, keeping accurate records of employee leave dates is crucial for managing schedules and ensuring adequate coverage. Without proper tracking systems, you risk scheduling conflicts, understaffing, or overstaffing, which can impact productivity and workflow.

Lastly, don’t forget about your employees on leave. Neglecting to support and communicate with your staff during their leave can impact their morale and loyalty to your organization. Don’t overload them with messages; a card or a quick message can go a long way. Showing empathy and understanding and providing necessary support where possible can boost employee engagement upon return.

GMS Services

Managing leave is complicated; from workloads to legal obligations, it’s stressful for your whole team. Professional employer organizations (PEOs) like GMS offer a range of services that help simplify your HR tasks.

One of the services GMS offers is employee training and recruitment. Our human resources experts work closely with you, offering expert guidance on recruitment and training strategies. We alleviate the administrative burdens associated with the entire employee life cycle, allowing you to maintain complete control over hiring decisions while we simplify the process. Contact us today, and let us help you navigate the complexities of being an employer.

For small business owners, sometimes the need for extra hands sneaks up unexpectedly. Whether it’s a sudden rush of customers, a seasonal demand, or a taxing project, the need for additional labor can be undeniable at times. Despite the necessity for extra help, it’s not always the right time or best financial decision to hire and onboard a new long-term employee.

As your business faces the demand for more support, it’s essential to assess the situation carefully and explore alternative options such as leased employees. Hiring leased employees is a flexible and cost-effective way to address short-term staffing needs without committing to permanent hires.

What Is A Leased Employee?

A leased employee is contracted to work for a business through a staffing agency. While a leased employee performs tasks and duties for their assigned business, a staffing agency assumes responsibility for their salaries and associated HR administration. Leased employees offer flexibility and access to specialized skills without needing to go through the full hiring process. By improving efficiency and adaptability, employee leasing allows small businesses to remain competitive and keep up with industry demands.

The Advantages Of Leased Employees For Small Businesses

Leased employees offer numerous benefits for small businesses, serving as a strategic solution to address various operational challenges. When you opt for leasing employees, you have the ability to:

Adapt to staffing fluctuations

Leasing arrangements can vary from temporary to long-term based on your business’s needs. Temporary leased employees can resolve immediate staffing needs, addressing heightened demands during peak seasons, special projects, or sudden increases in workload. For businesses requiring a more permanent solution while still retaining flexibility, long-term leased employees are a favorable option. They can provide the skills needed or fill ongoing positions without the administrative burden of traditional hiring.

Tap into expert skills without long-term contracts

Employee leasing allows you to tap into a diverse talent pool with a wide range of skills and knowledge, all without the need to hire a full-time employee. This flexibility allows you to find a qualified leased employee that suits your exact project or need. Whether you’re in search of a temporary sales representative or a more long-term IT analyst, the flexibility of leased employment empowers you to acquire the exact skills you need precisely when you need them.

Save on hiring costs

Leasing employees is a cost-effective alternative to hiring full-time employees. With leased employees, you can save time and money on the recruitment process since this is handled by a staffing agency. You can also avoid the additional financial obligation of providing benefits like health care, retirement plans, and paid time off (PTO) because leased employees are not full-time employees. Additionally, you don’t need to worry about the associated financial burdens such as layoffs or severance packages.

Lighten your HR load

Since leased employees are managed by a staffing agency, you have fewer HR responsibilities on your plate. An agency takes care of HR tasks associated with leased employees, including processing salaries, administering benefits, and more. By entrusting experts to take care of staffing and HR duties, you can free up your own team’s time and resources. Plus, staffing agencies know the best practices and solutions for hiring, ensuring small businesses maximize the benefits of employee leasing.

Comparing Leasing Employee To Traditional Hiring

While leasing employees can offer numerous benefits for small businesses, it’s essential to consider all options. Before deciding on whether you want to lease employees, reflect on the following benefits of traditional hiring:

• Stronger company culture: A part-time or full-time employee will become fully immersed in the company’s mission and values, fostering more loyalty and commitment. This cohesion enhances morale and cultivates a sense of unity among all employees.
• Efficient integration of new hires: Traditional hiring allows for a smoother onboarding process, helping new employees quickly acclimate to company processes and dynamics. Bringing on a permanent employee can lead to better overall collaboration and teamwork.
• Reduced legal and compliance risks: With traditional hiring, businesses have greater control over employment classification and compliance with labor laws. This reduces the risk of violating employment regulations, helping your business stay legally compliant.

Deciding What Is Right For Your Business

Leasing employees can be an advantageous decision for some businesses, but it’s crucial to identify your goals and assess compatibility with your business model beforehand. To start, evaluate your staffing demands and consider how a leased employee would fit in with your current employees. Think about what tasks or projects they could tackle and how their expertise could complement your existing team’s skills.

Furthermore, determine whether employee leasing fits your budget and aligns with your long-term business goals. Compare the costs and weigh the benefits of all staffing options including contracting, part-time, full-time, as well as leasing. Contemplate how this position functions short-term and how it could evolve over time. If you’re debating between leasing an employee or hiring a full-time employee, consider the possibility of offering a leased employee a more permanent role in the future.

How To Control Risks And Maximize Benefits

When you decide leasing an employee is suitable for your business, set yourself up for success by adhering to the following:

1. Establish clear communication and expectations: Encourage open communication with your leased employee to build trust and collaboration. Ensure you’re both on the same page regarding responsibilities and expectations as well as project goals and timelines.
2. Monitor performance and provide feedback: Track and assess how your leased employee is fulfilling their role. Regularly check in and supply constructive feedback to promote improvement and growth.
3. Offer targeted training and ongoing support: Provide specialized training sessions to enhance the skills related to their role. Give continuous support as your leased employee learns and adapts to the expectations of their role.

Optimize Hiring With GMS

If you’re considering expanding your team, a PEO like GMS can help you determine the best staffing option. From recruiting top talent to smooth onboarding, we make the hiring process simple and efficient. GMS can support your staffing needs and handle numerous HR responsibilities related to new employee management. Contact us today to discuss how GMS can enhance your hiring process!