Request a call Login

  • As a business owner, hiring a new employee is an exciting time filled with opportunity and growth. While welcoming someone to your team is thrilling, transitioning them into their new role and educating them about the business can feel overwhelming and challenging.


    Understanding the ins and outs of a company takes time and effort, so it’s important to educate your new hires and prepare them for their role and the responsibilities that come with it. This is typically achieved through an orientation or onboarding process.


    Although many people use the terms “orientation” and “onboarding” interchangeably when referring to new employee training, they actually represent two distinct processes that are essential for a new hire. With effective onboarding and orientation, a new employee is more likely to be engaged, effective, and productive.

    What Is Employee Orientation

    An employee orientation is a one-time event to introduce new hires to the company and familiarize them with the people, processes, policies, and culture. Orientation can include going through the employee handbook, introducing team members and upper-level management, reviewing health care and benefits information, vacation policies, and more. Employers may have new hires complete additional paperwork and provide them with their laptop, login, and other resources. Employee orientation is an event that introduces the company as a whole, allowing new employees to gain a deeper understanding of its mission, values, and culture.


    While every orientation differs depending on the company, an orientation can occur on-site, virtual, or in-person, though many choose to conduct it in the office. When you are organizing your orientation, it’s important to include the following:

    • Overview of your company’s mission, vision, and values
    • Tour of the workplace
    • Summary of company-wide policies regarding safety, health, and security
    • Introductions to company leaders
    • Overview of ethical practices
    • And more!

    Benefits of Conducting an Employee Orientation

    Conducting an employee orientation can be a challenging endeavor, but it will help prepare you and your employees in the long run. There are a variety of benefits for having a robust orientation, including:

    • Reducing employee anxiety
    • Improving employee trust and loyalty
    • Strengthening your company culture
    • Saving time spent answering questions in the future by preemptively conveying important company information to all new hires

    What Is Employee Onboarding

    Employee onboarding is a broad and strategic process aimed at introducing new hires to their daily responsibilities and helping them fully integrate into the workplace, team, and their new role. This process typically spans several months, sometimes extending to a full calendar year, and involves a series of role-specific training sessions, educational meetings, and introductory projects. Onboarding is typically used to help an employee slowly acclimate to their job, introducing them to the typical processes, knowledge, and technologies they’ll need to be successful in their role.

    Separate from orientation, onboarding includes tasks such as:

    • Regular meetings with a manager or supervisor
    • Training on specific job tasks
    • Goal setting for what they hope to accomplish in this new position
    • Shadowing someone in a similar position
    • Filling out new hire paperwork such as I-9, W-4, and potentially direct deposit forms
    • Mentorships between long-term employees and new hires 

    Benefits of Employee Onboarding


    Similarly to employee orientation, onboarding has a variety of long-term benefits for employers and employees, including:

    • Increased productivity by helping employees learn the job faster
    • Greater long-term employee retention by reinforcing a robust and collaborative company culture
    • Higher employee engagement by helping employees understand their roles and how they can contribute to the company’s success

    Improving The Employee Experience


    Employees are the heart and lifeblood of every company. Business owners cannot grow their company without the help and expertise of their workforce. To ensure your workforce operates smoothly and efficiently, employees require the right training and tools for success. While business owners know the ins and outs of their business, it’s not always easy to explain or train new hires, especially when they have a business to run. That’s why a professional employer organization (PEO) like Group Management Services (GMS) exists.


    Our online employee training programs, designed for small and mid-sized businesses, are tailored to meet the specific job functions of your employees. This approach streamlines the process, enhances employee performance, and reduces training costs. Your employees can easily access online training courses through our learning management system (LMS) to acquire the necessary skills to support your business. Our human resource information system (HRIS) will also help streamline the orientation and onboarding processes. Employees can easily fill out important documents and the necessary paperwork through an online program, effectively simplifying the process.

    Are you looking to improve your orientation and onboarding efforts? Contact us; we would love to assist you!

  • Employees are the cornerstone of a strong and successful business. Regardless of the size of your business, having healthy and happy employees can be the difference between success and failure. Therefore, it’s important to understand how your employees influence your bottom line and how you can support their emotional and physical well-being.

    The Importance of Employee Wellness

    In May 2025, Inmar Intelligence conducted an employee well-being survey and found that job and workplace conditions directly impact employee mental health. Specifically, the study discovered that employees found job security, a reasonable workload, and supportive management to be the top factors positively impacting their mental health, while poor communication, an excessive workload, and a toxic workplace culture were found to have detrimental effects. Not only does negative mental health impact the individual, but it can negatively affect the business due to reduced productivity and morale.

    Juggling your business operations, clients, and employees can be challenging and overwhelming. Managing employees is complex, and promoting positive mental health and wellness adds another layer of difficulty. Continue reading to discover various strategies you can implement to support your employees’ mental health and wellness.

    Encourage a supportive work environment

    Supporting your employees can go a long way toward their well-being and productivity. Research has shown that workplaces that offer support are linked to higher employee engagement, increased job satisfaction, and improved retention rates. To foster a positive environment, implementing policies that promote growth and encourage open communication is an excellent place to start.

    By hosting monthly company-wide town halls and brainstorming sessions, employers can encourage open communication among employees and gain insight into potential problems and dissatisfaction. Employers can also create a supportive work environment by offering continued education and training programs. These programs can help showcase your dedication to employee growth and skill development.

    Clearly identify job responsibilities and workload

    Confusion surrounding job responsibilities and job roles can lead to employee dissatisfaction. To avoid potential confusion, it is important to develop and write job descriptions carefully during the hiring process to ensure they remain accurate once the individual is hired. It is also good practice to continually review job descriptions and communicate with your employees about any changes made. This helps employees understand their job expectations and complete them accordingly.

    Offer an employee assistance program 

    Employee assistance programs (EAPs) are a valuable workplace resource designed to help employees manage and address personal and professional challenges that impact their job performance and well-being. EAPs provide confidential counseling and support for mental health, substance abuse, financial planning, and other concerns that can negatively impact an individual’s mental health.

    EAPs help employees gain access to the support they need to take care of themselves and learn strategies to manage their stress better. By offering EAPs, employers can help their workforce and demonstrate their dedication to employee well-being, fostering greater loyalty and trust.

    Implement employee recognition programs

    Employees want their successes to be seen and heard. By implementing employee recognition programs, employers can highlight their employees and cheer them on towards greater success. Whether it’s by shouting out an employee promotion, offering a gift card, or sharing a win during a team meeting, showcasing employee growth and successes can go a long way towards greater loyalty and trust among your workforce.

    How Group Management Services Can Help Improve Employee Mental Health

    Employee health and wellness should be a top priority for managers and business owners. The happier and healthier your employees are, the more loyal, productive, and focused they are, effectively improving your bottom line. While focusing on employee wellness is important, it can be difficult to know how or when to implement certain strategies and programs. That’s where Group Management Services (GMS) can help.

    When you partner with GMS, you gain access to a top-tier EAP provider as part of a comprehensive benefits package. We understand the importance of tailoring solutions and focusing on the bottom line. Our team manages EAP administration, onboarding, and can consult on the best human resources strategies to implement regarding employee wellness. We also assist with performance management and make training, career development, and onboarding processes easier.

    To learn more about GMS, contact us today!

  • In hopes of modernizing labor communication, Ohio Governor Mike DeWine signed Senate Bill 33, otherwise known as the “Law Poster Bill,” on April 25th, 2025. This new legislation requires employers to post specific state labor law notices electronically or on an online resource, as long as they are accessible to all employees. Continue reading to learn about this new legislation and how it will impact your business.

    What is Senate Bill 33?

    In the past, Ohio employers were required to post physical labor law notices throughout the workplace, in common areas such as breakrooms, or on bulletin boards. But, as businesses continue to rely on technology for communication and efficiency, lawmakers believe that utilizing an additional communication method will help employers quickly showcase important labor updates and notices to employees, ensuring safety and compliance.

    Specifically, Senate Bill 33 covers six state-level labor law notices required by Ohio law:

    • Ohio Minor Labor Law Notice: Outlines restrictions on the employment of minors 
    • Ohio Civil Rights Law Notice: Summarizes the rights of Ohio workers regarding equal opportunity and discrimination in the workplace.
    • Ohio Workers’ Compensation Notice: Provides employees with information on filing workers’ compensation claims and how to access benefits. 
    • Ohio Minimum Fair Wage Standards Law Notice: Details Ohio’s wage and overtime laws.
    • Ohio Prevailing Wage Law Notice: Provides details on current public works projects.
    • Ohio Public Employment Risk Reduction Program (PERRP) Notice: Lists requirements for public sector employment.

    What Employers Should Know

    Under Senate Bill 33, employers must post labor law notices on the company’s intranet, internal website, or an HR portal such as a human resources information system (HRIS). This law changes how Ohio employers will share information on any changes to minimum wage, overtime rules, civil rights protections, public employment risk reduction, and workers’ compensation laws.

    Employers should also be aware that this law goes into effect on July 20th, 2025, giving business owners enough time to develop a plan for managing this transition. Employers should also consider sending a company-wide communication alerting upper-level leadership and employees about the law change and providing educational content to help them understand what is expected of them and how to ensure compliance. 

    Ensure Compliance with Group Management Services

    While Senate Bill 33 provides new flexibility, it also brings new responsibilities for Ohio business owners. Employers must ensure digital postings are placed on a secure, reliable platform that all employees can access, and clearly communicate any changes to employees.

    As a business owner, worrying about regulatory compliance isn’t why you started a business. That’s where a certified professional employer organization (CPEO) like Group Management Services (GMS) can help. GMS’ team of experts can help your company stay on top of any regulatory changes that pass. Whether you need help auditing your business processes, ensuring compliance, or streamlining your internal processes, GMS can help you improve business operations, save money, and reduce stress.

    Learn more about GMS today!

  • Earlier this year, the California legislature introduced several new employment bills focusing on workplace surveillance, employee training, pay transparency, family-paid leave, and more. While these laws haven’t been passed yet, they could impact your employees and business operations if passed.  Read this blog for a brief summary of several proposed policies and what California business owners can expect if they are signed into law.

    Key Bills Being Introduced

    Senate Bill 642

    This bill mandates that wage scales in job advertisements must be within 10 percent of the average pay rate for the specified salary or hourly wage range. It also clarifies that employers cannot pay employees less than those of “another sex” for similar work, replacing the previous terminology of “opposite sex” in the final text.  

      • How employers can prepare: If this bill is passed into law, employers must ensure they post the correct pay scales in both physical and online job advertisements.

    Assembly Bill 1018

    This would regulate the development and use of automated decision systems for hiring, performance evaluation, termination, and promotion purposes. Standard automated decision systems include artificial intelligence (AI) systems, facial recognition software, and more. Employers must also allow their workers to opt out of using these systems and provide an appeals process for adverse outcomes.

      • How employers can prepare: If this bill is enacted, employers should clearly communicate the use of these technologies and inform employees of their option not to participate. Depending on the number of individuals affected by these technologies, employers may have to undergo annual audits.

    Assembly Bill 1331

    This bill aims to limit the use of workplace surveillance technologies. Workplace surveillance tools are systems, applications, instruments, or devices that collect or facilitate the collection of worker data, communications, actions, or behaviors by means other than direct observation. These technologies can include electromagnetic tracking, geolocation monitoring, biometric scanning, video surveillance, and more. Employers would also be prohibited from monitoring their workers during off-duty hours or in private areas in the workplace, such as a locker room, bathroom, breakroom, cafeteria, lounge, or a worker’s personal vehicle.

      • How employers can prepare: Since this bill has a broad scope and far-reaching implications, employers should follow it through its legislative process. Employers will need to assess how they currently use these tools and prepare to make potential revisions.

    Senate Bill 590

    This bill would expand employees’ eligibility to take time off to care for a sick family member. It would allow employees to take paid family leave to care for someone who is seriously ill and has a relationship similar to that of a family member. This includes caring for a foster child, stepchild, parent, sibling, grandchild, grandparent, child, or spouse.

      • How employers can prepare: Business owners should carefully review their paid family leave policies to ensure they comply with state standards. Employers can also seek advice from third-party companies or agencies to ensure no discrepancies slip through the cracks.

    How GMS Can Help California Business Owners

    Failure to comply with federal, state, and local laws can lead to costly fines, monetary penalties, and reputational harm. Being a business owner is hard enough; between managing your employees, ensuring a safe workplace, and administering benefits, finding the time to ensure regulatory compliance is difficult. Consider utilizing a professional employer organization (PEO) like Group Management Services (GMS) to simplify your business operations.

    Our team of experts will help you stay informed about changing regulations, assist with ensuring compliance, and streamline your operations. With a PEO, you have a reliable partner. We can advise you on performance management strategies, recruitment, improving productivity, and more. Are you interested in learning how GMS can help your business remain compliant? Contact us today!

     

     

     

  • What is The Americans with Disabilities Act?

    The Americans with Disabilities Act (ADA) is an important civil rights law protecting individuals with disabilities from discrimination in various areas, including employment, public accommodations, and transportation. As defined by the ADA, a disability is a physical, mental, or neurological impairment that limits an individual’s ability to participate in major life activities. The goal of this law is to ensure that people with disabilities have proper access to public services, facilities, and equal employment and educational opportunities. Common disabilities that are protected under the ADA are:

    • Blindness
    • Cancer
    • Epilepsy
    • Autism
    • Major depressive disorder
    • Diabetes

    What Employers Should Know About the ADA

    The ADA is crucial because it promotes equal opportunity and accessibility for individuals with disabilities. By ensuring accessibility in various aspects of life, the ADA fosters a more inclusive environment. To encourage and champion accessibility and inclusion in the workforce, employers must understand their responsibilities under the ADA.

    Learn and understand the law

    A great way to ensure regulatory compliance is to take the time to read and understand the law and any accompanying policies. Whether you choose to read a summary from a federal website or consult a subject matter expert, gaining knowledge about your business’s legal obligations and the disabilities that are covered will allow you to implement the necessary accommodations. If this sounds overwhelming, there are HR companies like certified professional employer organizations (CPEOs) that can ensure your compliance and assist you with providing proper accommodations.

    Providing reasonable accommodations

    One of the protections enacted by the ADA is implementing reasonable accommodations. These accommodations are specifically geared towards helping qualifying employees successfully perform and complete their job functions. Covered accommodations can include modified work schedules, installing a ramp, providing noise-canceling headphones, or allowing a service animal in the office.

    Not only is ADA compliance part of federal law, but it’s beneficial to your employees, company, and bottom line. While the cost of a penalty depends on the violation, a first-time ADA violation for non-compliance can cost up to $75,000. Among the most common violations are a lack of accessible exits, entrances, and parking spots, missing signage, and inaccessible restrooms.

    Providing reasonable accommodations for your staff shows your loyalty to your employees’ well-being, fostering a culture of loyalty and positivity. A strong work culture can also enhance your company’s overall creativity, productivity, and morale, improving your brand and bottom line.

    How A CPEO Can Ensure Your Compliance

    The ADA is a significant employment law that every company should stay up to date on and properly understand. But, as a business owner, it can be stressful to properly keep track of all the requirements, and failure to do so can be detrimental to your bottom line. That’s why many business owners partner with a CPEO like Group Management Services (GMS).

    GMS has a wide range of subject matter experts (SMEs) who assist business owners with compliance, ADA compliance training, and updating employee handbooks. Our team has the knowledge and expertise to ensure you’re providing the necessary accommodations, following legal requirements, and collecting proper documentation to reduce any potential legal liabilities. Are you concerned about your ADA compliance? Contact us to learn how we can help!

  • On December 22nd, 2023, in a bipartisan vote, the U.S. Senate approved the Pregnant Workers Fairness Act (PWFA) to be included in the 2023 federal spending plan. As the bill moved forward into the House of Representatives, it was then passed on December 23rd, 2022. The same day, President Joe Biden signed the bill into law. Continue reading to discover the mandated accommodations associated with PWFA.

    What Is The PWFA?

    The PWFA requires companies to provide pregnant workers with reasonable accommodations such as limits on heavy lifting and more frequent breaks. Currently, federal law only requires those accommodations if employers also offer them to workers with injuries or medical conditions. Under the PWFA, employers with 15 or more employees must accommodate applicants and employees with known limitations due to pregnancy, childbirth, or related medical conditions.

    The Biden Administration has continued to support the PWFA, stating that pregnant workers are often compelled to choose between their health and their jobs. Unless these accommodations are incorporated into law, pregnant women will not be protected. Due to this, many women have a difficult time proving pregnancy discrimination against their employers. The lack of protection for women who are expecting often leads to thousands of women losing their jobs each year. The implementation of the PWFA has mandated that reasonable accommodations must now be implemented into your business operations. Accommodations may include:

    • Assigning lighter work
    • Permitting frequent bathroom breaks 
    • Allowing water at workstations 

    Implementing Temporary Accommodations 

    Often, accommodations may be made for a pregnant employee with the expectation of removing it after the child is born. For example, if a woman needs to work from home for a certain period, then employers must decide if the position can be properly completed remotely. For employers, some positions can be challenging to accommodate. What happens when you can’t make accommodations for your employees? If pregnant workers can no longer complete the essential functions of their position, employers are allowed to provide indefinite leave. No one wants to lose an employee due to temporary circumstances; therefore, employers must consider whether they can create a new position for the time being. This will allow pregnant women in the workforce to have a healthy and safe pregnancy.

    Reaching ADA Accommodations 

    This legislation was modeled on the Americans with Disabilities Act (ADA). Currently, the ADA has laws in place to minimize discrimination against pregnant women. When it comes to women who are breastfeeding, federal law requires employers to provide reasonable time and clean space when necessary. However, due to the Affordable Care Act (ACA) in 2010, many salaried workers were excluded from this law. Through women’s pregnancies, many often work in physically demanding and low-wage positions. 

    Ease The Implementation Process 

    Ever-changing legislation can be overwhelming for a busy business owner to manage. When you partner with GMS, you don’t have to worry about missing legislative updates that may affect your compliance. Remove the consistent administrative burdens and get back to focusing on what’s important – growing your business. Contact GMS today to learn more.

  • The 5th U.S. Circuit Court of Appeals has upheld the injunction of executive order 14042, stating that government cannot enforce federal contractors to receive the COVID-19 vaccine. In a 2-1 vote, the court decided to block the mandate. Additionally, on December 19th, 2022, the hearing found that the Biden administration had overstepped its authority due to a breach of the tenth amendment.

    What Is The Mandate?

    On September 9th, 2021, President Joe Biden announced the executive order stating that all government contracts must implement a clause requiring federal contractors to be fully vaccinated unless legally accommodated. As a result, three states joined forces: Mississippi, Louisiana, and Indiana.

    The States Defense 

    A major argument amongst the states was that the vaccine mandate infringed on the right to regulate health and safety matters within their borders. The state believed that the implementation of this mandate would push far beyond federal contractors. Approximately one-quarter of the U.S. workforce, including the private sector, would be affected. 

    Defense Of The Mandate

    The U.S. Department defended the mandate with claims that the order was protected under the Procurement Act. Officials believed that the enforcement of the COVID-19 vaccine would enhance contractors’ day-to-day efficiencies by reducing productivity loss and schedule delays. Additionally, government officials hoped the mandate would decrease labor costs and employee absenteeism. 

    Your Strategy Partner 

    Government mandates and regulations are ever-changing. As a business owner, you already have enough on your hands. With GMS as a partner, you can remove the time spent worrying about missing legislative updates that may affect your business. Our HR professionals will keep you up to date on any changes that may impact your business. Our team will support you by creating a combative strategy to ensure your operations continue running smoothly. Contact GMS today to learn more.

  • As a business owner, finding quality candidates can feel overwhelming and time-consuming. However, there is a route many employers fail to take – recruiting through social media. As we adapt to living in a digital era, employers can leverage this within their hiring practices. Using social media to recruit top talent is now more valuable than ever. Whether you are hiring for junior positions or leaders for your senior roles, implementing a social media strategy will take your recruitment process to the next level.

    What Is Social Media Recruiting? 

    Social recruiting is the process of finding and hiring candidates through social media. Through social media platforms such as LinkedIn and Facebook, employers can advertise open positions, source professionals, and connect with quality candidates. Social media allows employers to reach far beyond the typical job board posting. 

    Social recruiting enables employers to create a diverse community of individuals through specialized groups, direct messaging, employee referrals, and more. By using social media to recruit talent, employers have access to both active job seekers and passive ones, too. While organizations thus far have used social recruiting to support traditional recruiting methods, this idea places the focus solely on the abilities of social media. As a younger, technologically enhanced demographic enters the workforce, social recruiting will continue to dominate the recruiting field.

    Benefits From A Recruiting Standpoint

    Using social media for recruiting purposes allows employers to find candidates with the experience and skills they are looking for. Social media allows recruiters to build an online community within the industry. Not only will this bring in an influx of candidates, but you will be able to do the following: 

    • Create brand awareness 
    • Demonstrate company culture and values 
    • Find candidates that seek employment within your industry 
    • Create alerts for open positions 
    • Engage in a more personable way 

    Highlighting your recruitment process on a public forum allows current employees to share job posts and comment on their experience with the company. Employee reviews and testimonials allow candidates a clear view of your organization. In the past, individuals found open positions through job boards and company websites. However, as young professionals have grown up with technology at the forefront of their lives, it is no surprise the social media realm is their native territory.

    How To Utilize Social Media As A Recruitment Tool 

    As a business owner, you want to take the proper steps when developing your recruitment strategy. These steps are vital to the success of the new era of social recruiting. Continue reading to learn how to build a successful plan for your business.

    Step one: Identify your goals 

    Before you begin recruiting candidates on social media, identify your goals. These goals may vary based on the positions you intend to hire. The following are the most popular social media platforms business owners use to implement social recruiting: 

    • Facebook
    • LinkedIn 
    • YouTube 
    • Instagram 
    • TikTok

    Step two: Consider an audit 

    As you begin to scope out your social media platforms, consider completing an audit. This will give you an advanced view of how your social media habits affect your brand. From there, you can make effective changes to discover your perfect candidate. The audit will allow employers to answer questions such as:  

    • Which social media platforms are being utilized?
    • What type of content is posted, and where?
    • Would the content entice candidates?
    • Where do you see the most engagement?
    • Do your pages have a strong voice?
    • What audience demographic is present on each platform?

    Step three: establish your online brand 

    What makes your company stand out amongst the competition? Does your brand consistently shine through your current social media content? It is essential to feature your company culture and brand in a unique way. Social recruiting goes further than the typical job posting. Begin reviewing the key areas on each platform:

    • Brand voice
    • Hashtags
    • Profile and cover images
    • Update your bio
    • Working URLs to website or landing page
    • Page verification

    Step four: Build your target audience 

    Now that you have built your online brand, it is time to identify your target audience. Start by deciding the type of employee your organization desires. When company culture is clearly shown on social media, it becomes easier to target the candidates you want to join your organization. This also allows employers to directly appeal to applicants who directly align with the company’s core competencies. The key factor in this step is ensuring your target audience aligns with your current audience demographic on each platform – if they do not, consider a different platform that does match. 

    LinkedIn For Recruiting 

    Organizations and recruiters often find candidates through their LinkedIn profiles. This platform makes it easy to attract, recruit, and hire candidates. LinkedIn allows employers to establish a clear picture of a candidate’s capabilities. Employers can view not only resumes, but one’s past and current experiences, education, certifications, and even recommendations from other LinkedIn members. Consider LinkedIn a dynamic version of one’s resume. Viewing the connections within your professional network allows employers to seek potential referrals. There is no better referral for your organization than from your own team.

    Candidates on LinkedIn are often recent college graduates, corporate professionals, or freelancers. As a business owner, you can create an entire page for your business. This allows candidates to view organizational updates, videos, insights, and more. Job seekers may view workplace executives, and potential team members to gain a feel for the organizational culture. By placing job advertisements on LinkedIn, employers can streamline the timeline of the hiring process.

    Facebook For Recruiting 

    Facebook allows employers and recruiters to interact with a variety of diverse individuals. High user retention makes Facebook the perfect place to engage with job seekers, offer industry insights, and post your open positions. On Facebook, employers can create a company page. From this page, employers can send out organizational updates, industry trends, and more.

    Facebook currently has almost three billion active users per month. While Facebook no longer has a tab on the direct page to view open positions, this platform is still vital to the recruitment process. Jobs can be shared via a status update and linked to wherever your formal job posting is. While this platform is popular amongst both younger and older age groups, it is the perfect space to attract job seekers across a wide demographic.

    The Bottom Line 

    Social recruiting streamlines the recruitment process. No matter what platform you utilize to assist you in finding talent, you can trust you are getting the most out of your recruitment strategy. Consider tracking the following key performance indicators to track your successes: 

    • Top sources of hire
    • Sources for high performers
    • Time to fill
    • Cost per hire

    Where GMS Steps In 

    As employers enter a technology-driven era, it is time for business owners to make a change. That is when social media recruitment can be an undeniable asset to your business. Social recruiting is a tool available to every employer. Are you not seeing success? Do not fret, GMS’ HR experts are here to help. Our recruitment experts make it simple, allowing you to save time while finding top-tier candidates. Contact GMS today to learn more. 

  • As economic uncertainty looms over the U.S., many employers have been left to make challenging budgeting decisions. There are a variety of reasons an organization may downsize its workforce, including cost-cutting, economic declines, mergers, and more. Regardless of the reason, there are proper steps employers and management teams must take.

    Before considering employee layoffs, an employer must evaluate the risk of properly managing federal and state regulations. Discharging a single employee can expose an employer to legal claims such as class action or collective action lawsuits. Employers may experience ongoing communication with former employees in terms of benefits administration, reference requests, verification of employment, and possibly responding to lawsuits.

    Why Layoff Employees?

    Layoffs often are the result of cutting organizational costs. According to SHRM, cutting compensation and benefits typically represent half of a company’s total operating expenses. As a result, organizations looking to reduce expenses tend and tend to look towards removing employees.

    Layoff Alternatives

    Employers who are considering layoffs must understand the importance of considering every alternative. Finding and implementing workplace alternatives rather than cutting employees can be done with a proper human resource management team. Alternatives to layoffs include:

    • Reducing hours worked
    • Adopting a Voluntary Separation Program (VSP)
    • Identifying and removing wasteful practices

    Selection Criteria 

    It is important to carefully consider why you are laying off that employee. By using the proper criteria, employers may use this as a defense against any legal or discrimination allegations. When conducting a layoff, employers must be transparent about the criteria.

    The following are examples of selection criteria:

    • Seniority-based selection
    • Employee status-based (full-time, part-time, contingent status) selection
    • Performance-based selection
    • Skills-based selection 

    Best Practices

    Once it has been decided that employee layoffs are the best option for your organization, consider the following steps to begin to process.

    Planning

    Careful planning is required to complete layoffs properly. From the beginning, employers should be considering alternatives to communicating the layoff. Planning must also go into post-layoff reactions and considerations.

    Team selection

    When it comes to choosing a team to dive into the criteria set, you want a diverse team. This will maintain employees from experiencing bias and allow them to focus strictly on the task at hand.

    Keep it professional 

    When tasked with implementing a layoff, employers must allow their employees to know why this is happening and the decision process behind it. Developing a clear message and a united front will show that the decision was thoroughly considered.

    Emotional impact

    While this is a challenging time for the employer and employees, there are new challenges to consider. When delivering the news, treat your employee with kindness and compassion. It is important to consider the compounding effect on their family and future. Retained employees may have new responsibilities that may take time to implement.

    Show Your Support

    There are many ways to ease the impact of the layoff on employees. Offering a separation package is one way that businesses can provide employees with financial benefits. Reach out to other local employers and see if they would consider hiring any lost employees.

    Employment Assistance Programs (EAP) can help manage employment separations. Implementing an EAP provides a confidential source that your employees can use to find support and resources for certain challenges they face.

    Re-recruit Your Staff

    During this time, you want to put emphasis on communication with your employees. This is the time to re-recruit your remaining employees. It is not only vital to show support, but also your commitment to the current staff. Reassure your team and let them know that you are invested in them. Place an emphasis on the organization’s mission to ensure your business continues to thrive.

    GMS’ Support

    Employee layoffs can leave a lasting impact that goes beyond the employee and employer. When you experience setbacks within your business, allow GMS to step in. Our team of HR experts can help you find and weigh your options. Ultimately, if you decide employee layoffs are what is best for your business, our team will ensure the layoffs are completed properly. When you partner with GMS, any setback can be turned into a comeback. Contact GMS today to learn more.

  • Employees are the backbone of every company, making employee retention vital. Business Insider called 2021 the “year of the quit.” In October of 2021 alone, 4.2 million people left their jobs in a mass workplace exodus known as the Great Resignation. Even now, the latest employee turnover statistics find that one-third of employees quit after six months of being on the job.

    Employee retention is about not only keeping employees happy and engaged but also setting your business up for long-term success. Let’s examine why turnover happens, how much it can cost a business, and how your business can reduce high employee turnover.

    What Is Employee Turnover And What Causes It?

    Employee turnover is defined as the number or percentage of employees that leave a company on a monthly, quarterly, or annual basis. Employee turnover can be voluntary (the employee chooses to go) or involuntary (you decide to terminate the employee). Regardless of who made the decision, high employee turnover is an indication that employee retention is low. There are various reasons for this, including:

    • Employee burnout
    • Inconsistent expectations set by managers and supervisors
    • Lack of employee appreciation and recognition
    • Lack of professional growth and career advancement
    • Low pay
    • Less comprehensive benefits
    • Poor workplace culture

    What Is The Cost Of Employee Turnover?

    There are many ways that losing an employee can hurt your bottom line. Turnover creates several direct and indirect costs that affect your business, including:

    • Hiring expenses: It costs money and time to advertise for a new position, interview candidates, perform background checks, and hire a candidate.
    • Productivity loss: While a company looks for a new employee, other employees might have to cover that employee’s tasks while taking care of their own, resulting in productivity loss.
    • Training issues: New employees need to be onboarded and trained, and it takes the average company 31.5 hours to train a new hire, which, on average, costs $1,888 for companies with fewer than 500 employees.
    • Lower employee morale: Low employee morale leads to increased absenteeism, costing an organization money and productivity.

    The exact costs caused by turnover can vary from employee to employee. Investopedia reported that it costs a company, on average, $3,500 in turnover costs to replace an employee only making $8 an hour. Their report also shows that it takes up to six months or more for a company to break even on its investment for a new hire.

    Salaried employees who leave cost businesses much more than their hourly counterparts. The Society for Human Resource Management (SHRM) found that turnover costs an average of half to three-quarters of an employee’s salary. For someone making $100,000, that’s a potential loss of $50,000 to $75,000 caused by turnover. Those numbers can range even higher for more specialized or upper management positions. For salaried employees, LinkedIn reported that turnover costs can cost 1.5-2 times their salary.

    A group of coworkers strategizing how to reduce high employee turnover.

    Different Ways Small Businesses Can Reduce High Employee Turnover

    Employees are more likely to stay at a company that they feel meet their needs on multiple levels. The following measures can help you reduce high employee turnover.

    Offer your employees competitive pay

    In 2021, Pew Research Center reported that 63% of employees left their jobs because of low pay. If you find that employees are regularly leaving for more money elsewhere, it may be time to examine your compensation structure to see if you’re competitive with the rest of the industry.

    You may also want to identify specific employees who would be particularly painful to lose. Sometimes paying an employee a few thousand dollars more is a smart way to retain top talent and lessen the chances of losing tens of thousands of dollars in turnover costs.

    Provide your employees with comprehensive benefits packages

    An alternative to paying employees more money is enhancing your benefits package. According to the Association of International Certified Professional Accountants (AICPA), 80% of Americans prefer workplace benefits over extra salary. Policy Advice also reported in 2021 that only 49% of the country’s total population receives group health insurance.

    If your company isn’t a part of this percentage, you’ll be more likely to recruit and retain more employees by offering them group health coverage. If your company is a part of this percentage, you can offer supplemental benefits to give your company an even greater competitive advantage. These benefits include:

    Foster workplace flexibility

    Allowing hybrid or remote work styles gives your business a competitive edge when it comes to retaining talent and recruiting new employees. A 2022 poll conducted by Forbes revealed that 63% of employees would feel more empowered if they had more flexibility. In addition, employees say having the freedom to choose when to come into the office matters as much as traditional benefits such as a 401(k) plan.

    Flexibility can also help eliminate or potentially offset turnover costs in other surprising ways. A Gartner, Inc. CFO survey revealed that 74% of companies planned to permanently shift to remote work after the pandemic ended, partly because of a decrease in operating costs and increased business profits. It Is estimated that business owners can save up to $11,000 a year by switching to remote work because they’ll pay less in overhead and utility costs.

    Make recruiting and retaining employees a priority

    An excellent hiring and onboarding experience can help limit the odds that new hires will leave within their first year. According to the Brandon Hall Group, a well-organized onboarding process improves new hire retention by 82%.

    For this reason, many companies outsource a company to take care of their employee recruiting services. You can partner with a professional employer organization (PEO) to write a quality job description that attracts top talent. Also, recruitment process outsourcing (RPO) reduces recruitment costs, ensures candidate quality, and uses applicant-tracking systems (ATS) to lead to cost savings and an improved recruitment process.

    Care about culture

    Even though it’s almost been a year since the Great Resignation, employees leaving their jobs is still trending. A 2022 survey from Flex jobs revealed that 62% of people leave their jobs because of company culture issues. Implementing a positive workplace culture includes:

    • Creating employee recognition programs
    • Setting clear and consistent departmental goals
    • Promoting diversity and inclusion
    • Accepting and utilizing your employees’ feedback

    You also want to create a workplace culture that doesn’t lead to employee burnout. Employee burnout leads to more absenteeism, resulting in lower productivity and higher profit loss. Offering your employees ample paid time off (PTO) ensures that they return to work feeling revitalized and refreshed. Ernst & Young reported that for every 10 hours of PTO taken, employee performance ratings improve by 8%. Unsure of how much PTO to offer your employees? Check out our post on How To Create A PTO Policy For Your Business.

    Analyze employee turnover

    If you have high employee turnover, it’s best to analyze why. One way to do so is by implementing employee exit interviews and surveys and looking at the data. Staff feedback about current workplace culture and practices is also helpful and can help identify potential reasons employees are leaving your company.

    Save Time And Money By Reducing High Employee Turnover

    It’s not easy to find good employees, and it’s even harder to replace them. Between turnover costs and the impact of losing good talent, companies must have retention and recruitment strategies in place to protect their bottom line.

    Of course, employing those strategies takes a lot of valuable time. That’s why GMS partners with employers to help you save time and money and reduce high employee turnover. Contact GMS about our benefits administration, recruiting, onboarding, and training services today.