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  • As a small business owner, you wear many hats – manager, leader, and mentor. When faced with an employee who isn’t meeting expectations, it’s essential to handle the situation constructively. Enter the performance improvement plan (PIP) – a structured approach that benefits your business and employees.

    What Is A PIP?

    A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement. Whether job-specific skills or soft skills such as leadership and professionalism, a PIP identifies where an employee falls short. Interestingly, PIPs aren’t just for underperforming employees; they can also guide high-performing individuals seeking career advancement.

    Why PIPs matter for small businesses

    1. Legal protection: PIPs protect your business from potential legal issues. By documenting performance concerns and providing clear expectations, you create a paper trail that safeguards your decisions.

    2. Productivity boost: Addressing underperformance promptly prevents productivity losses. A well-executed PIP can turn things around, benefiting the employee and the company.

    3. Positive company culture: PIPs reinforce a positive work environment. Employees appreciate knowing where they stand and receiving support when needed.

    4. Employee retention: Instead of resorting to termination, a PIP gives employees a chance to improve. Retaining talent is critical for small businesses.

    Creating An Effective PIP

    Crafting an effective PIP is a pivotal step for small business owners in fostering employee development, enhancing productivity, and maintaining organizational performance standards. To make it easy, we’ve created a step-by-step guide for you to follow to implement a PIP within your business:

    1. Assess the situation:

    • Determine if a PIP is appropriate for the specific employee
    • Consider the employee’s role, performance history, and potential for growth

    2. Develop a plan:

    • Collaborate with the employee’s supervisor to create a customized PIP
    • Specify areas for improvement, whether it’s technical skills, communication, or teamwork
    • Set clear expectations and realistic goals

    3. Meet with the employee:

    • Schedule a one-on-one meeting to discuss the PIP
    • Be empathetic and supportive – focus on improvement rather than blame
    • Involve HR if necessary

    4. Monitor progress:

    • Regularly check in with the employee
    • Provide constructive feedback and celebrate small wins
    • Adjust the plan if needed

    5. Evaluate results:

    • Assess progress within the specified timeframe (typically 30 to 120 days)
    • Determine if the employee has met the expectations outlined in the PIP
    • Decide on the following steps: continued improvement, termination, or other actions

    The Assistance Of A PEO

    PIPs are not punitive; they’re a lifeline for employees needing more support. Small business owners should embrace PIPs as a tool to foster growth, retain talent, and maintain a positive workplace. While we’ve provided you with the basics of creating a PIP, implementing it within your business is the next step. Fortunately, our HR experts at GMS are here to help; you don’t have to navigate this alone. Leveraging their expertise in performance management, employee development, and compliance, they assist you in crafting tailored PIPs and ensuring best practices. Ultimately, they’re here to drive performance improvement, foster employee success, and propel organizational growth. Contact us today to learn more.

  • In October 2023, Representatives Raja Krishnamoorthi, D-Illinois, and John James, R-Michigan, introduced the bipartisan Opportunity to Compete Act, a groundbreaking legislation designed to address the challenges faced by job seekers without bachelor’s degrees. The act aims to ensure fair consideration for these individuals in the hiring process, emphasizing skills-based evaluation over traditional educational qualifications.

    The Need For Change

    The current hiring landscape is heavily influenced by automated recruitment systems, which often utilize degree requirements as a primary filtering mechanism. A 2021 study revealed that over 90% of employers rely on such systems, with half using education level as a decisive filter. This approach inadvertently excludes a significant portion of the workforce, as approximately two-thirds of U.S. workers do not hold a bachelor’s degree.

    Addressing Bias And Promoting Diversity

    The Opportunity to Compete Act seeks to rectify this imbalance by mandating that large employers using automated degree requirement settings disclose the expected years of experience applicants need. In addition, it allows for the substitution of relevant work experience for a four-year degree. This shift in evaluation criteria would amend the Fair Labor Standards Act (FLSA) to eliminate bias against individuals who have acquired valuable skills through alternative routes such as military service, community college, or training programs.

    Advocacy And Support For The Act

    Industry experts and advocates have strongly supported the Opportunity to Compete Act, emphasizing its potential to foster diversity and inclusion while expanding access to job opportunities. Chief Executive Officer (CEO) of YUPRO Placement Michelle Sims highlighted the legislation’s role in diversifying the evaluation criteria during the initial stages of hiring, thereby promoting fairer consideration for all candidates.

    In addition, this bill emphasizes the significance of the millions of workers who have honed their skills through alternative educational paths such as community college, apprenticeships, and on-the-job experience. The act is positioned as a critical enabler for these individuals to showcase their capabilities and contribute meaningfully to the workforce.

    Empowering Alternative Educational Routes

    The proposed legislation acknowledges the value of alternative educational pathways, which provide accessible and affordable means for individuals outside traditional talent pools to develop skills relevant to various early and mid-career roles. By recognizing the value of these non-traditional routes, the act supports a more inclusive and equitable approach to evaluating job candidates.

    Hiring And Recruiting With A PEO

    Should this bill go into effect, small business owners will need to remain compliant. However, you didn’t start your business to stay on top of laws and regulations or spend countless hours hiring and recruiting top talent that will help your business grow. That’s why small and medium-sized companies turn to a professional employer organization (PEO) like GMS for help. A PEO provides comprehensive HR services to its clients, including payroll, benefits, compliance, and more. This partnership allows businesses to outsource the administrative and legal aspects of hiring and recruiting. In addition, at GMS, our HR experts can access a larger pool of qualified candidates, offer competitive compensation and benefits packages, and reduce your turnover and hiring costs. If you want to learn more about how GMS can help your business grow, contact us today. We’re here to help you and your business thrive.

  • Employee handbooks are not just an easy-to-access resource for your team but an essential component of your company’s infrastructure. They provide employees with a clear understanding of company policies, expectations, and culture, making it crucial to have a comprehensive and up-to-date handbook. However, the value of an employee handbook diminishes if it’s not regularly reviewed and updated.

    Leaving your handbook unattended on the shelf year after year without revisions can result in several negative outcomes, such as reinforcing outdated and potentially non-compliant laws and regulations. Employment laws, workplace safety standards, and industry regulations evolve. Failing to update your handbook accordingly can leave your business vulnerable to legal challenges, financial penalties, and damage to your business’ reputation.

    What Is An Employee Handbook?

    Employee handbooks are an excellent tool for business owners to share relevant information with employees. Separate from an employee agreement, which details salary, job title, job description, etc.; employee handbooks are an opportunity to provide easy-to-understand explanations of your policies and procedures, including company programs such as paid time off (PTO), sick leave, and more. While you should regularly share reminders with your team regarding specific policies and company programs, employee handbooks allow staff to review information whenever needed.

    Benefits Of Having An Employee Handbook

    Handbooks are a foundational tool for everyone on your team, from your newest hire to senior leadership and managers. They ensure everyone operates from the same set of standards, which is essential for creating a cohesive company culture. In addition, they help set expectations and provide clarification when challenging questions or situations arise.

    For new hires, employee handbooks are an excellent resource for learning about your company’s mission and values. Onboarding is an overwhelming time for new employees; providing them with a handbook can help them review important information later when they are more comfortable in their new position.

    Furthermore, a well-structured employee handbook can significantly enhance decision-making by providing a clear framework for managers and employees. This clarity reduces the time spent on deliberations and increases the efficiency of resolving issues, allowing for more focus on productive work and innovation.

    Why Update Your Handbook?

    As your business grows and develops, so should your employee handbook. As laws evolve and new technologies emerge, your internal policies must adapt accordingly. Since your handbook is a key reference point, outdated information could lead to unintentional non-compliance. It’s essential to inform your team about these updates and incorporate them into your handbook. This ensures that everyone is in sync with your policies and procedures.

    In addition, updating your handbook helps:

    • Adapt to organizational growth: As your business grows, it may become subject to new regulations. For example, exceeding 20+ full-time or full-time equivalent (FTE) employees will bring your business under the purview of the Age Discrimination in Employment Act (ADEA). It’s crucial to regularly review and revise your policies to ensure compliance with applicable laws as your business evolves.
    • Health and wellness: Policies must stay current to reflect the changing health landscape and societal needs. The COVID-19 pandemic highlighted the need for flexibility in policymaking, as companies had to introduce or revise policies concerning leave, remote work, and bereavement to accommodate unprecedented circumstances. Your handbook should be responsive and allow for quick policy changes when needed.
    • Align with the current company mission: As your business develops, your core mission and goals may shift. Ensuring your handbook is updated will help keep your managers and employees aligned with your mission. This alignment is essential not only for internal work but also for presenting a consistent message to your clients and stakeholders. 
    • Ensure fair treatment: An updated handbook ensures you have proper policies to address potential issues. This includes establishing clear protocols for dealing with harassment and outlining the steps to take when employees do not comply with established guidelines. Such measures are crucial for maintaining a workplace where every team member is subject to the same rules and expectations, which in turn help promote a culture of fairness and respect.
    • Hold your team accountable: A handbook can safeguard your business. Having a paper trail of your policies and their updates in your handbook shows that you communicated them to your team. It keeps your staff aligned with your goals, and should any situation escalate to the point of employee termination, this documentation provides solid justification for the action taken due to non-compliance.

    When And What To Update

    Most information in your employee handbook won’t need updating very frequently, but it’s good practice to review your handbook on at least a yearly basis. Delaying this review can result in a backlog of necessary changes, significantly extending the time required to update the handbook. Unless your organization is experiencing rapid growth or undergoing shifts in its mission and values, an annual review will be enough to keep your handbook current and relevant.

    During your review, be sure to examine the following:

    • Federal and local laws and regulations
    • Wage and hour policies
    • Staff training and processes
    • Leave and benefits
    • Employee conduct policies
    • Technology and systems policies

    Reviewing your employee handbook will take time and can be done internally; however, it’s essential that an HR professional checks it. If you don’t have a designated HR professional on staff, partnering with a professional employer organization (PEO) is one way to ensure you’re up to date with best practices and are compliant with legal regulations.

    HR Outsourcing With GMS

    As a business owner, you may discover that you no longer have the capacity to manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. PEOs like GMS can manage a range of responsibilities for your business. By outsourcing aspects such as payroll tax to employee benefits and more, we save you time and money while ensuring your business’ compliance with local and federal laws. We focus on administrative work so you can focus on what matters most in your business.

    Our HR professionals are ready to help make your business simpler, safer, and stronger. Contact us today!

  • It’s time to dust off your HR processes and give them a thorough review. HR laws and guidelines are subject to change, and your HR policies must reflect those changes. Though auditing your HR procedures may seem like a hassle or something that can wait, if found noncompliant, you could incur significant penalties and reputational damage that can take months or years to set right. HR can be complicated and confusing to understand. We’ve compiled a short guide to help you start your audit.

    Why Are HR Audits Necessary?

    HR audits aren’t mandatory, but they can help protect your business and save you time and money in the long run. HR audits carefully examine your business policies and procedures as they relate to federal, state, and local laws such as the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA). They help find outdated policies misaligned with current laws or practices, and also identify areas negatively impacting employees that need improvement.

    In addition, HR audits can:

    • Help improve your processes and policies. HR audits can highlight inefficiencies by thoroughly examining existing HR procedures, from recruitment and onboarding to performance evaluations and compliance with labor laws. Audits can help organizations foster a more engaging and responsive workplace environment, ensuring policies are not only compliant but also aligned with the strategic goals and expectations of employees.
    • Reduce turnover. HR audits can help you identify reasons employees are leaving and assist in developing a plan to boost retention. These audits examine various aspects, including job satisfaction, management practices, career development opportunities, and workplace culture. By gathering and analyzing exit interview data, employee surveys, and other relevant information, you can identify patterns and pinpoint specific areas for improvement.
    • Address and prevent harassment. Creating a safe and respectful workplace is a non-negotiable for modern organizations. HR audits can help ensure you have proper policies to prevent harassment or bullying affecting team morale, productivity, and more. They review existing policies, complaint procedures, and how past incidents are handled to assess their effectiveness. Through reviewing compliance with current laws and best practices audits can help determine areas for improvement and develop new strategies to better protect employees.
    • Improve workplace safety. HR audits can provide a comprehensive review of safety practices, incident reports, and compliance with occupational health and safety regulations. By analyzing data on common workplace injuries, such as when and where they happen; you can identify any underlying safety hazards, such as faulty equipment, fatigue, understaffing, etc.

    HR audits can drastically improve areas of your business while ensuring you avoid lawsuits, fines, and reputational harm. Think of them as preventative care that keeps your organization healthy and capable of recovering from potential setbacks.

    Types Of HR Audits

    Beyond a general HR compliance audit, there are a few other audits to choose from: best practices, strategic, and function-specific. Each is helpful and can help safeguard your business.

    Best practices audit

    This audit examines your HR practices holistically and compares them to proven best practices. It helps identify areas for improvement while assessing your competitive advantage.

    Strategic audit

    Strategic audits are particularly helpful if your business is growing. They help identify strengths and weaknesses in your HR processes and ensure they align with your business’s strategic plan.

    Function-specific

    These audits focus on one or a few areas within your HR practices, such as payroll, hiring, and onboarding.

    How To Conduct An HR Audit

    Once you’ve selected the right audit for your business, there are a few critical steps to consider. First, determine who will be conducting the audit. While internal audits are possible, and you can run them yourself, partnering with a professional employer organization (PEO) can save you time and energy, ensuring you don’t miss any vital elements.

    After determining who will conduct the audit, start planning the details, when it will take place, the type of audit, and your goals. Inform your team, including information about audit meetings, what to expect, questions they will be asked, or information they will need to locate.

    Now that you’ve laid the groundwork to conduct your audit, consider the following:

    1. Check federal and local laws and industry regulations 
    Start by reviewing employment laws. Ensure you thoroughly understand them and employee forms such as W-2, I-9, etc. Stay updated with your industry’s specific regulations and review your department’s practices for potential risks. This foundational step ensures your audit is grounded in the latest legal requirements and industry standards.
    2. Evaluate current processes  
    Audits not only evaluate your policies and procedures but also their implementation. Technically speaking, your practices could be compliant and efficient; however, you could still have issues if poorly implemented. 
    3. Secure sensitive information
    Audits go beyond reviewing employee handbooks; they often require examining employee paperwork. This means handling sensitive information, and you’ll need to ensure it stays protected, digitally or otherwise, throughout the process. 
    4. Create your audit report
    Write up your findings. Include the specific areas you examined, any areas that need to be addressed, and the plan to manage them. Give this report to senior leadership and key stakeholders who must stay involved.
    5. Communicate changes with your team
    Transparency and communication are crucial to implementing changes effectively. Keep your staff informed about any policy or process adjustments resulting from the audit. Early and frequent communication helps to secure team buy-in, which is vital for successful implementation.

    HR Audits With GMS

    HR audits can get complicated quickly; you risk overlooking critical elements when handled internally. Partnering with a PEO like GMS can help. You’re an expert in your field but probably not an expert in HR. Our HR professionals stay up to date on employee laws and regulations. No matter what type of HR audit you need, with GMS, you’ll gain access to a dedicated HR specialist who:
    • Takes the time to learn how your HR functions are currently being handled
    • Drafts a comprehensive report that outlines your current HR status
    • Provides recommendations on how you can improve your internal HR processes
    • Offers recommendations on HR functions that can be outsourced

    Contact us today, and let us take the administrative HR burdens off your plate.

  • In today’s globalized economy, workplaces are increasingly diverse, reflecting a variety of cultures, languages, and backgrounds among employees. In such environments, effective communication is paramount for fostering inclusivity, productivity, and understanding. One critical aspect of communication in multilingual workplaces is crafting notices and announcements that resonate with all team members. Striking the right balance in multilingual workplace notices is not only about translation; it’s about conveying the message effectively while honoring linguistic and cultural diversity.

    Tailoring Communication

    One size does not fit all when it comes to workplace communication. While English may be the primary language in many organizations, it’s essential to acknowledge that not all employees are proficient in English. Providing notices in multiple languages ensures all team members receive information clearly and promptly. However, the challenge lies in striking a balance between inclusivity and practicality.

    Prioritizing Information

    In multilingual workplaces, it’s crucial to prioritize the information conveyed in notices. While translating every word and detail may seem comprehensive, it can clutter the message and dilute its effectiveness. Instead, focus on conveying essential information briefly while providing options for more detailed explanations or clarifications in different languages upon request.

    To avoid this issue, employers must consider their workplace demographics. Not every employee needs every notice in every language. Instead, a targeted approach is key. The following are strategies:

    • Legitimate need: Post notices in foreign languages only when there is a legitimate need. For instance, if a significant portion of the workforce speaks a particular language, providing information in that language makes sense.
    • Thresholds: Consider setting language-specific thresholds. If 20% or more of your employees are literate in a language other than English, prioritize posting in that language. For less common languages, electronic versions on online bulletin boards could suffice.
    • Remote workforce: In the era of remote work, electronic postings can meet federal requirements. If all employees work from home, bulletin boards become obsolete.

    Navigating State And Local Requirements

    The U.S. Equal Employment Opportunity Commission (EEOC) doesn’t mandate specific multilingual posting requirements. However, employers should remain vigilant. A proactive approach ensures that employees receive critical information without drowning in notices. On the other hand, some federal statutes and agencies sometimes require postings in other languages. For example, the Family and Medical Leave Act enforced by the U.S. Department of Labor (DOL), requires business owners to provide notice in a language in which employees are literate where the workforce has a significant portion of workers who are not literate in English. A proactive approach is essential to ensure that employees receive critical information without drowning in a sea of notices.

    In addition, Spanish-language labor law postings are sometimes required by the federal government for the following reasons:

    • All H-2A employers that have a significant portion of their workforce made up of non-English-proficient, Spanish-speaking employees, addressing their rights under the program
    • All H-2B employers, with a significant portion of workers who aren’t fluent in English but are in Spanish, posting about workers’ rights under the program
    • All federal contractors that have a significant portion of their workforce made up of non-English-proficient, Spanish-speaking employees, informing them of their National Labor Relations Act rights
    • All federal contractors and subcontractors using E-Verify, including the right-to-work and program participation posters
    • Agricultural employers, agricultural associations, and farm labor contractors informing workers of their Migrant and Seasonal Agricultural Worker Protection Act rights

    Several states and localities require notice postings in Spanish under anti-discrimination laws, minimum wage laws, right-to-work laws, human trafficking laws, and workers’ compensation laws.

    GMS Is Here To Help

    Navigating multilingual workplace notices requires a delicate balance between inclusivity, clarity, and cultural sensitivity. Organizations can create an environment where every team member feels valued, understood, and empowered by understanding the diverse linguistic and cultural landscape of the workforce, tailoring communication strategies, leveraging technology, seeking feedback, and cultivating inclusivity.

    However, as a small business owner, implementing this on your own can be challenging. That’s where we come into play. As a professional employer organization (PEO), our HR experts offer comprehensive HR solutions, including multilingual communication support. We allow business owners to deliver clear, inclusive notices that resonate with every member of the team. This partnership allows business owners to streamline their communication processes, foster a culture of inclusivity, and focus on what truly matters – building strong, diverse, cohesive teams. Contact us today to learn more!

  • On January 20, 2024, New York City implemented a groundbreaking law that empowers employees to take legal action against employers for violations of the Earned Safe and Sick Time Act (ESSTA). This new law, passed by the New York City Council on December 20, 2023, is set to transform the landscape of employee rights and employer responsibilities within the city. Let’s dive into the key provisions and implications of this significant development.  

    Private Right Of Action 

    The new law introduces a private right of action, enabling employees to file lawsuits in court alleging breaches of the ESSTA. This allows individuals to seek legal recourse within two years of discovering a potential violation without necessarily filing a complaint with the Department of Consumer and Worker Protection (DCWP).  

    Understanding ESSTA 

    The ESSTA, a cornerstone of employee rights in New York City, grants eligible employees the privilege to use safe and sick leave for personal or family care and seek legal and social services in cases of domestic violence, unwanted sexual contact, stalking, or human trafficking. Employers must provide between 40 and 56 hours of paid or unpaid leave, depending on their size.  

    Implications For Employers 

    New regulations 

    In October 2023, the DCWP finalized new regulations to the ESSTA, clarifying employer size determination, remote worker inclusion, notice requirements, and accrual methods. Employers need to familiarize themselves with these updated regulations to ensure compliance.  

    Penalties and remedies 

    The new law alters the civil penalties for ESSTA violations, with fines ranging from $500 to $1,000 per violation within two years. Additionally, plaintiffs can now seek injunctive and declaratory relief, attorneys’ fees, costs, and other appropriate damages in addition to compensatory damages.  

    Legal recourse 

    Previously, individuals could only file complaints with the DCWP, which would then investigate the claims. However, the new law expands this process by allowing individuals to simultaneously file a civil action in court and a DCWP complaint for the same alleged violation.  

    Reporting Requirements  

    The new law also mandates the DCWP to report the following on its website annually:  

    -Number and nature of filed complaints, including unsubstantiated complaints and notices of violations issued 

    -Number of civil actions filed, provided the DCWP was informed of such actions 

    -Number of opened and closed investigations, along with the average time for complaint resolution  

    -Average time it takes for a complaint to be resolved  

    Advice For Employers 

    In light of these changes, New York City employers are advised to revisit their safe and sick leave policies, ensuring alignment with the amended ESSTA and the updated DCWP regulations. It becomes imperative for employers to uphold their obligations under the ESSTA to avoid potential liability from employees. 

    In navigating the evolving landscape of employment laws, including the recent changes to ESSTA, small business owners in New York City may find value in partnering with a professional employer organization (PEO) like GMS. GMS’ experts can offer vital support by providing access to comprehensive HR solutions, ensuring compliance with ESSTA and other labor regulations, managing payroll and benefits, and offering expertise in navigating the complexities of employee-related matters. By leveraging the resources and expertise of GMS, small business owners can focus on growing their business while entrusting critical HR responsibilities to a trusted partner, thereby fostering a more efficient and compliant workplace environment. Interested in learning more? Contact us today! 

  • The H-1B visa program has long been a topic of discussion and scrutiny due to concerns regarding misuse and fraud. In response to these concerns, the U.S. Citizenship and Immigration Services (USCIS) has announced a significant change to the H-1B visa registration selection process. This change, scheduled for publication on February 2, 2024, aims to prioritize the workers named in the registrations, aiming to reduce the possibility of misuse and fraud.

    The Current Process

    Under the current process, the number of registrations submitted by employers on behalf of an individual directly impacts the individual’s chances of being selected in the H-1B visa lottery. This has led to certain practices that raise concerns about the integrity of the selection process, such as the submission of multiple registrations for the same worker to increase the chances of selection.

    The New Proposal

    Under the new proposal, each unique individual who has registration submitted on their behalf will be entered into the selection process once, regardless of the number of registrations submitted for them. This significant change is designed to improve the chances of legitimate registrations being selected and eliminate the practice of submitting multiple registrations for the same worker to increase their likelihood of selection.

    Additional Requirements

    Starting with the fiscal year 2025 registration period (March 6-22, 2024), USCIS will require visa beneficiaries to provide valid passport or travel document information with the registration. Each beneficiary must be registered under only one passport or travel document. This additional requirement is aimed at further enhancing the integrity of the registration process.

    Addressing Fraud And Misuse

    USCIS Director Ur Jaddou emphasized the agency’s commitment to bolstering integrity and curbing potential fraud while improving and streamlining application processes. The proposed improvements are expected to make H-1B selections more equitable for petitioners and beneficiaries.

    The move to shift the focus of the selection process reflects USCIS’s response to concerns about potential abuse of the H-1B lottery system. Reports of ineligible registrations submitted by multiple employers conspiring together have raised red flags about the integrity of the process. USCIS revealed that several dozen technology companies colluded to submit registrations for the same 96,000 workers, totaling 408,891 entries, in an attempt to increase their odds of selection in the H-1B lottery.

    Future Changes

    The change to the registration selection process is a pivotal part of the proposed rule overhauling the H-1B visa program. USCIS is still reviewing the bulk of the H-1B modernization proposed rule and intends to publish a separate final rule to address the remainder of the provisions in the proposal.

    The Assistance Of A PEO

    These changes are poised to impact the fairness and transparency of the H-1B visa lottery system, ultimately benefiting both employers and visa beneficiaries. Considering these changes, GMS is here to help small businesses with the H-1B visa registration selection process. GMS, a professional employer organization (PEO), offers invaluable support by providing guidance on compliance with evolving immigration regulations, streamlining the visa application process, and ensuring adherence to the new requirements set forth by USCIS. By leveraging the services of GMS, business owners can navigate the intricacies of the H-1B visa program with confidence, knowing they have a knowledgeable partner by their side. Contact our HR experts today.

  • In the bustling world of small businesses, where every decision counts and every action shape the company’s identity, core values serve as guiding stars, illuminating the path to success. But how do small business owners move beyond simple words on paper and root these values in their organization? Continue reading to learn how to go from articulating to implementing, exploring how core values can transcend and become the driving force behind every decision and interaction.

    Defining Core Values

    Core values are the deeply ingrained principles that guide a company’s actions; they serve as its cultural cornerstones. They encapsulate the beliefs, principles, and philosophies that define a company’s culture and identity. For small business owners, defining core values is not simply a box to check but a foundational step in shaping the company’s principles and direction.

    When considering core values for your business, choosing those that reflect the company’s identity, culture, and aspirations is essential. The following is a list of essential core values to consider:

    • Integrity: Upholding honesty, transparency, and ethical behavior in all business dealings.
    • Customer centricity: Prioritizing customer satisfaction and delivering exceptional experiences.
    • Teamwork and collaboration: Fostering a culture of collaboration, mutual respect, and shared goals among employees.
    • Innovation: Encouraging creativity, adaptability, and a willingness to embrace change to drive innovation.
    • Respect: Valuing diversity, treating everyone with dignity, and maintaining a respectful work environment.
    • Adaptability: Being flexible and responsive to changing market conditions, customer needs, and industry trends.
    • Inclusivity: Creating an inclusive environment where diverse perspectives are welcomed, respected, and valued.
    • Sustainability: Committing to sustainable practices and minimizing environmental impact in business operations.
    • Innovation: Encouraging a culture of creativity, experimentation, and forward-thinking to drive growth and differentiation.

    Small business owners must lead by example, living out the core values they proclaim and rooting them into all aspects of the business.

    Nurturing A Value-Driven Culture

    In small businesses, culture doesn’t happen by chance; it’s a deliberate creation nurtured by every interaction, decision, and celebration. Fostering a values-driven culture requires intentional efforts, from hiring practices and onboarding to performance evaluation and recognition. Aligning these practices with core values reinforces their significance and empowers employees to embody the company’s culture.

    Integration Into Daily Life

    Core values should fill every aspect of business operations, from the big strategic decisions to the smallest day-to-day interactions. Small business owners can weave their values into operational frameworks and decision-making processes. By embedding values into daily practices, businesses ensure that every action reflects their principles and contributes to their vision.

    Open Communication And Trust

    Transparent communication is the lifeblood of a values-driven organization. Small business owners should foster open dialogue, inviting feedback, and fostering constructive conversations around core values. Transparent communication builds trust, resolves conflicts, and empowers employees to uphold the company’s values, even in challenging situations.

    Embracing Change And Growth

    As small businesses evolve, so do their core values. Embracing change and remaining adaptable allows businesses to develop their values alongside their growth. Small business owners should regularly revisit and reassess their core values, ensuring they remain relevant and reflective of the organization’s journey and aspirations.

    The Assistance Of A PEO

    When integrating core values into your business culture, professional employer organizations (PEOs) serve as a strategic partner. A PEO like GMS provides expertise and support to ensure your values fill every aspect of your organization seamlessly. From recruitment and training to day-to-day HR functions, a PEO enables businesses to establish cultures rooted in integrity, collaboration, and excellence. By partnering with GMS, businesses uphold their core values and gain the freedom to concentrate on strategic growth initiatives while leaving HR complexities in our hands. Contact us today!

  • In today’s job market, employees have high expectations for employers beyond benefits and compensation packages. In addition to competitive compensation, employees desire a workplace that values and respects them and prioritizes a positive culture. Employees are quick to switch jobs if they encounter a negative or toxic work environment. To attract and retain top talent, it’s vital that, as a business owner, you understand what employees are seeking to address any issues preemptively.

    Employees seek out companies whose actions align with their communicated values. In other words, if you say work-life balance is essential, but the level of work assigned requires regular overtime, or you preach education as a company pillar but rarely offer training or pay for external certifications, your values and actions are misaligned. Employees will take this to heart, which can negatively affect morale, productivity, and more.

    Strong Company Cultures

    Company culture may seem abstract however, there are tangible ways it impacts your business. Company culture is a work environment’s shared values, attitudes, behaviors, and standards. It describes not only your staff’s experiences but also how customers experience your brand.

    Positive cultures tend to include:

    • Clear and open communication. Between employees, across departments, and with management – open and non-ambiguous communication is a critical factor for a healthy culture. Managers should offer plenty of opportunities for their team to provide feedback and be readily accessible to help guide employees and provide clarity when needed.
    • Professional development opportunities. In addition to open communication, companies with positive company culture offer employees the opportunity to grow professionally. Access to training, education stipends, mentorship programs, and other resources can help employees to succeed. In addition, communicate a defined process to the team that explains how employees can get promoted or receive a raise.
    • Collaboration mindset. Positive cultures allow plenty of opportunities for teams to collaborate. Although rewarding individual contributions is essential, a positive work culture fosters a deep sense of belonging through consistent collaboration with peers and across departments. Individuals who feel supported and part of a team often experience more job satisfaction, which boosts productivity and retention.
    • Defined purpose and core values. Core values should be purpose-driven and align with long-term company goals. For example, environmentally conscious companies may aim to become carbon neutral by a specific date – their decisions and actions on a small and larger scale are then all informed by this value. Positive cultures have a clearly defined purpose and core values are easily accessible to employees.
    • Intentional focus on boosting morale. Positive work cultures aren’t built overnight. There is a careful strategy behind them. Leadership plays a critical role in building and maintaining a positive culture, from hiring staff that aligns with company values to creating opportunities for team bonding and implementing recognition and reward programs.
    • Employee recognition. Recognizing the achievements of individuals and departments is essential to a healthy work environment — monetary rewards, public recognition during meetings, a social media post, bonus days off, etc. Positive cultures value acknowledging the efforts of the team regularly.

    Negative Company Cultures

    Even if your company has one or several characteristics of a positive culture, your business might still struggle with culture. Generally, you can identify the health of your work environment by looking at employee engagement, productivity, turnover, and absenteeism. Ensure you look at historical data to identify abnormal spikes and patterns. Suppose a specific team or role has a perpetual turnover or struggles with productivity. In that case, it might be time to carefully examine the team manager, offer additional leadership training, or restructure the role.

    Another way you can assess your work culture is by how often your team stays late, skips lunch breaks, or works on the weekends. When staff consistently work overtime, they likely have too much on their plate and need additional resources to accomplish their tasks. When overtime becomes a pattern, employees can suffer from burnout and increased health issues, which can ultimately affect your bottom line.

    Furthermore, conducting surveys and feedback sessions can offer valuable insights. These should include questions about job satisfaction, relationships with managers, and perceptions regarding the company’s values. When employees leave your organization, ensure exit interviews are part of your off-boarding process. While regular feedback sessions with current employees are helpful, individuals who are leaving may feel able to offer more honest answers.

    Align Your Actions And Values

    Creating a positive culture takes work. You need to establish your values and create a clear implementation plan. Ensure you include your team in decisions affecting their day-to-day and implement their ideas when possible.

    In addition, make sure your leadership team is embodying your values. If collaboration is something you value and there’s a lot of unhealthy competition within a particular department – investigate where that is coming from. Train your managers regularly so they don’t inadvertently promote behaviors misaligned with your values and know how to interrupt them as they arise.

    GMS Resources

    Your employees are your biggest assets, and investing in creating a strong work culture, ensuring your team is engaged, valued, and supported will positively impact your business in the long run. Partnering with a professional employer organization (PEO) like GMS can allow your small business to offer competitive benefits so you can attract and retain top talent. Beyond benefits, GMS can also help you assess your company’s HR practices.

    Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in the following:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Inefficiencies in your HR processes can lead to unforeseen costs that weigh heavily on a small business. PEOs like GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability.

    Let us help you maintain or improve your competitive advantage. Connect with an HR expert today!

  • As concerns pile up, employee morale can quickly go downhill. The challenge of losing valuable employees becomes particularly daunting in today’s competitive job market, where it takes an average of 24 days to fill a position.

    While hiring managers look for replacements, the remaining team members may find themselves taking on extra work. This additional workload can make staff feel overwhelmed and resentful, exacerbating existing issues within your organization – causing more team members to leave. The domino effect is real and immediate, so you must act quickly before the topple becomes unstoppable. Because staffing is such a pressing concern, hiring decisions often become rushed, leading to hiring mistakes that inadvertently undermine retention efforts.

    While some turnover is expected, careful planning leveraging people analytics can help avoid its normalization. However, if you’re experiencing perpetual turnover, it might be time to examine your company culture. Attracting and retaining talent requires finding underlying issues and creating a strategy to address them.

    What Causes Employee Turnover? 

    Employee turnover happens for various reasons, often interrelated, and understanding these can help your organization develop strategies to retain talent. Key causes include the following:

    • Low pay and inadequate benefits. According to the Pew Research Center, 63% of employees cited low pay as a leading factor in seeking alternative employment.
    • Lack of professional advancement opportunities. Employees often aspire to grow their skills and advance their careers. If they perceive a lack of opportunity to grow within your organization, they are more likely to look for one that will.
    • Negative company culture. Another common reason for high turnover is a toxic or unsupportive company culture. This includes issues such as a lack of diversity and inclusion, poor work-life balance, and poor management practices.
    • Lack of professional respect. Employees want to feel valued and respected for their contributions. Lack of respect can manifest in several ways, including not listening to employee feedback, ignoring achievements, or generally undervaluing an employee’s role in your organization.

    If your your organization is experieicning high emploee turnover, fixing every issue overnight is impossible. It will require careful planning and time to fully address the root causes. 

    Addressing High Employee Turnover

    High turnover can create a stressful environment for your entire team, and while you can’t simply flip a switch to fix everything, addressing the root issues as quickly as possible is essential to avoid long-lasting detrimental impacts.

    First, it’s vital that you take an honest look at your company. One way to do this is through utilizing exit interviews. Exit interviews should be a routine part of off-boarding, where you can gather insights. From an employee’s first to last day, the company’s core values should guide their experience. The exit interview is no exception.

    It’s never easy to hear criticisms and concerns, but you’ll never get to the root of problems without asking questions and then listening. This isn’t the time to defend your company. Departing employees need to feel heard. Use this time to probe into factors that made them want to leave. If candid feedback is the goal, then direct managers shouldn’t conduct interviews. Nobody wants to burn bridges, so hiring a reputable third party is considered the best practice.

    In addition, you can start to address issues through:

    Taking action

    Once key concerns are uncovered and exposed, act immediately. It’s easy to get distracted and not follow through. To offset that tendency, create a team responsible for moving things forward and implementing changes.

    This team can analyze gathered data and market intelligence to create an employee retention plan. If there’s a manager with high levels of turnover, use feedback to coach them. Any new changes instituted show current and former employees that you genuinely care. If left forgotten or unfinished, that sends a clear message as well.

    Hire strategically

    After identifying and addressing areas of improvement, take a look at your hiring process. Employee retention is about hiring the right person. Skills are typically a top consideration when speaking with candidates, but you must also assess how they will fit with your company culture. A skilled new hire needs to experience a sense of belonging to consider it a long-term fit.

    There are a couple of strategies to aid this process. First, ask behavioral interview questions to gauge how they respond to common company scenarios. Then, give them a tour and introduce them to various employees. This is helpful for both of you. You can observe how they interact, and they can get a sense of the workplace culture and if it suits them.

    Compensate adequately (beyond salary)

    While happy hours and team outings are absolutely appreciated (and an essential part of building a culture), they don’t pay the bills. Research the market value and typical benefits for critical roles in your region. If you want to compete for top talent, you must offer a competitive benefits package that reinforces your company’s value. Packages include salary, paid time off (PTO), vacation time, sick days, benefits, etc.

    Look beyond money

    As the saying goes, money doesn’t solve everything. Millennials rank giving back as a top priority. That translates into taking jobs where they make a difference with society’s more significant issues. Is community involvement a core value or a PR opportunity? For candidates who care, they’ll know the difference.

    The following are more win-win strategies you can incorporate:

    • Recognition motivates employees and makes them feel respected
    • Understanding aspirations and providing a career path keeps them inspired
    • Flexible work schedules show trust and reinforce the value of work/life balance 

    Ultimately, you want to craft an atmosphere that supports happy, productive employees. Collaborating with experts who understand HR best practices can be beneficial Working with a professional employer organization (PEO), specifically GMS, allows business owners to outsource all or part of their HR to help build these cultures and programs to retain employees.

    GMS Can Help

    GMS has advised companies for more than 20 years on how to evolve to meet growth and talent goals. GMS’ HR Account Managers specialize in crafting well-defined job descriptions, ensuring you attract candidates who genuinely fit the role. They excel in creating efficient and streamlined hiring processes, saving you valuable time and resources while finding top talent.

    PEOs like GMS, understand the importance of cultural fit and can guide you in aligning candidates with your company’s values and culture. When it comes to onboarding, GMS offers structured, effective processes to ensure new employees seamlessly transition into their roles, thereby reducing the risk of disengagement or early turnover.

    Let us help improve your turnover rates and help your business retain employees to create efficiency and longevity. Contact us today to learn more about how GMS can help your business.