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  • Employee training is an effective way to teach new employees and develop existing workers. However, employers may be concerned about related expenses, as employee training has been estimated to cost around $1,888 per employee for companies with fewer than 500 workers. 

    That’s quite a bit of money, but the cost of training can be well worth the investment. Here are three big reasons why a commitment to employee training is a great financial decision for your business.

    Image of employee training to keep your workforce engaged.

    Training Keeps Employees Engaged

    Employees want to feel like their boss cares for their future. Research-based consulting company Gallup reports that 87 percent of millennials find professional or career growth and development opportunities important for their jobs. 69 percent of non-millennials agreed.

    Investing in employee development can help advance your employees and show them that you value their future and contributions to your business and improve engagement. According to Gallup, improved employee engagement can have a huge impact on your business. Gallup shared the difference between companies with the best and worst rates of employee engagement. The top companies enjoyed the following benefits:

    • 37 percent less absenteeism
    • 48 percent fewer safety incidents
    • 41 percent fewer quality defects
    • 21 percent greater productivity
    • 22 percent greater profitability

    Training Lowers Staff Turnover

    Another benefit of engaging your workforce with training is that it can help you retain good employees. The initial onboarding experience can have a major impact on whether an employee stays with a company or heads off for a new opportunity. 

    The Society of Human Resource Management (SHRM) reports that “newly hired employees are 58 percent more likely to still be at the company three years later if they had completed a structured onboarding process.” That’s a huge difference since a lower turnover rate does more than just keep familiar faces around the office. Performance-based training organization Dale Carnegie reports that businesses in the U.S. collectively lose around $11 billion each year due to employee turnover.

    Training Develops Employees for the Present and the Future

    Training can better prepare your employees for their tasks, allowing them to be more efficient and effective. Ongoing training and development also allows you to groom your employees for bigger and better roles. 

    By developing talent internally, you can promote an employee who already knows the ins and outs of your business. That allows you to avoid some extra hiring costs, as SHRM reports that “external hires earn 18 percent to 20 percent more than existing employees promoted to similar positions.”

    Investing in Your Employees and Your Future

    The right employees can make a major difference for your business. We can help you invest in your current and future workers through employee training and recruiting services. Contact us today to talk to one of our experts about how we can help you recruit, train, and retain your employees and keep them engaged and effective.

  • Immigration has been a hot topic ever since President Donald Trump was elected. New changes have put a focus on new and potential laws that will impact employers all over the country, including the update to the I-9 form and potential expansion of the E-Verify program.

    The New I-9 Form

    Federal law requires that American employers have new employees complete the I-9 form to verify employment eligibility to dissuade companies from hiring people not authorized to work in the U.S. A new version of the I-9 form went into effect earlier this year, so U.S. Citizenship and Immigration Services (USCIS) requires that any employees hired after Jan. 21 must now fill out the latest version of the I-9 form within three days of their start date. Existing employees do not have to complete the new form.

    This new version of the I-9 form also comes with an increase in penalties for employers who fail to use it. According to the Society of Human Resource Management (SHRM), those fines are almost double that of past penalties, while fines for unlawful employment of immigrant workers also received a major increase.

    Mandatory E-Verify?

    The electronic verification program, also known as E-Verify, allows businesses to determine if their employees are eligible to work in the U.S. The program has been mandatory for most businesses since it was introduced in 1996. That may be about to change. 

    SHRM reports that E-Verify could become mandatory for all U.S. businesses. Trump’s proposed 2018 budget even set aside $15 million to help implement mandatory E-Verify programs. The current program still has some issues that will need to be fixed before implementation can go into full effect, but that mandatory E-Verify is closer than employers may have thought.

    Prepare for the Future

    As immigration reform continues to be a big topic in our nation’s capital, business owners need to prepare themselves. It can be hard to stay up to date on new legislation or government initiatives, which is why it can help to turn to an expert for help. 

    As a Professional Employer Organization, we can keep you up to date on how immigration reform can affect your human resource functions. We are also an enrolled E-Verify agent and can help get you prepared for the future. Contact us today to learn more. 

  • The end of a calendar year usually causes business owners to do two things: Review the past year and learn from its successes and failures. They also start looking to the new year and set their expectations of what they want to accomplish. While a Professional Employer Organization (PEO) can’t help you with the former, it can help you tackle the latter.

    Image of a small business owner planning for 2018 HR challenges.

    HR Challenges for 2018

    Employee Benefit News recently published an online article about the 15 biggest HR challenges businesses will face in 2018. [link to https://www.benefitnews.com/slideshow/the-15-biggest-hr-challenges-in-2018]. The good news is that apart from cyber breaches and data security, a PEO can help your business with 14 of them.

    1. Republican administration and federal issues
    2. State and municipal issues
    3. Workforce planning
    4. Cyber breaches and data security
    5. Recruiting
    6. Technology
    7. Workplace violence and active shooter situations
    8. Employee leave
    9. Benefits and the Affordable Care Act
    10. Employee well-being and mental health
    11. Employee handbooks
    12. Drug testing and substance abuse
    13. Diversity and inclusion
    14. Pay equity and salary history bans
    15. Harassment

    Large companies with internal HR departments have the resources to hire people to help them navigate these minefields. How can a small business owner compete with that?

    The simplest way possible is to partner with a PEO.  A PEO works with small business owners to give them the same buying power and infrastructure as a large organization through a co-employment relationship. This relationship allows the PEO to act as a large company with the same buying power as any company with thousands of employees. It also gives small companies certified experts in payroll, taxes, benefits, risk management, and human resources, typically for less than it would cost to hire one of these people.

    Partner with a PEO to Tackle 2018’s HR Challenges

    Now, with the implementation of the federal government’s Certified PEO program, business owners can have even more confidence in the financial stability and liability assumption of a CPEO. If you have questions about how GMS can help you tackle the latest HR issues, contact us today.

  • From payroll to benefits to recruitment, human resources is an important function that keeps a business running. And like any other business function, the management and implementation of these HR responsibilities all incur costs that you’ll need to factor into your budget as you plan for the new year.

    Whether you’re basing your budget on last year’s expenditures or planning every budget item from scratch, it’s important to review your different HR needs, so you don’t come up short in the places where you need extra funds. The better you can understand these HR costs, the better you can plan what the next year will look like for your company. Done well, an HR budget will help to prevent over-hiring and understaffing and ensure you have the resources to keep your team engaged on the job. Here are some key HR components that you should consider when planning a yearly budget.

    Image of money set aside for HR budgeting items for next year.

    Recruitment

    There is one big question when it comes to employee recruitment: How many people do you expect to add next year? The answer to that question will dictate how much you’ll need to put into recruitment efforts for your business.

    Employee recruitment can be expensive. The Society for Human Resource Management (SHRM) writes that companies spend an average of $4,129 per hire in recruitment costs. These costs include attempts to find candidates and actions to help qualify those targeted recruits, such as:

    • Advertising
    • Travel and events (e.g., College job fairs)
    • Drug testing
    • Background checks
    • Agency fees
    • Relocation

    Not to mention, you’ll have to account for the time it takes to screen and interview candidates, which could take anywhere from a couple of weeks to a few months. Every hour spent during the hiring process is an hour taken away from other essential business tasks. 

    Whether you’re looking to expand your staff or work in a high turnover industry, you should create a budget for your planned recruiting efforts. If you’ve been keeping track of how much you’ve spent on recruiting in past years, extrapolate that number based on how many candidates you want to hire in the coming year so that you don’t come up short when you need to fill an important position.

    Training and Development

    Once you hire new employees, you’ll need to train them. Not only can training better prepare your new employees for their positions, “95 percent of hiring managers considered employee training as a key retention tool,” according to a study conducted by the Chartered Institute of Personnel and Development.

    Of course, training and development costs money. According to the Association for Talent Development, the average cost of training is $1,888 per employee for businesses with fewer than 500 workers. These costs can include:

    • Internal training programs
    • Event registration fees
    • Travel expenses
    • Educational materials
    • Consulting fees

    Employee Wages and Salaries

    Payroll is one of the biggest items that you’ll have in your HR budget. The Houston Chronicle estimates that the average business spends somewhere between 15 to 30 percent of its gross revenue on payroll, although companies in the service industry may be closer to the 50 percent range. Regardless of your industry, make sure to take employee salaries into account, plus any estimated costs for any new employees you expect to add on in the coming year.

    While salaries are a huge part of your compensation budget, there are other considerations as well, such as payroll management costs, potential overtime hours, and any incentive programs. This also includes any raises, whether you give employees raises that coincide with performance evaluations or annual cost of living raises to account for inflation.

    Employee Benefits

    In addition to employee pay, there’s also a wide variety of benefits, such as health insurance, 401(k) contributions, and any other ancillary benefits, that you may offer as part of your overall employee compensation package. These costs will require a portion of your HR budget, too. 

    If you offer health insurance, as many small businesses do, it will likely take up a sizable portion of that budget. According to SHRM, the “average cost of providing healthcare makes up 7.6 percent of a company’s annual operating budget.” As an employer, you can control some of these costs by electing how much of the health insurance premium you’ll contribute and how much will be your employees’ responsibility. As you go through the budgeting process, you’ll want to account for any possible increases for next year’s health insurance premium, as well as review your contribution strategy. Keep in mind, these healthcare costs don’t necessarily include other insurance benefits you may offer, such as dental, vision, and life insurance. 

    Additionally, if you contribute to your employees’ 401(k) retirement plans, you’ll need to factor these amounts in to your budget as well. Fortunately, this should be an easy line item to budget for next year. Since it’s a fixed percentage, you can estimate that all employees will receive a specific amount.

    Employee and Labor Relations

    While compensation, benefits, and training can go a long way toward improving employee morale, there are some other measures you can take to reward workers. These include:

    • Service awards
    • Recognition efforts
    • Performance and attendance incentives
    • Company events
    • Employee birthday perks and gifts

    These items may not make up a massive part of your budget compared to other key HR needs, but they can be important additions to your company culture. Also, you never want to find out that you have to cancel those service awards because you forgot to plan ahead for them in past budgeting meetings. 

    On the flip side, you may also want to consider setting aside a small portion of the budget in case you face any labor relations issues. Budgeting for outplacement or legal fees can help your business prepare in case you have any unexpected issues in the upcoming year. 

    Health, Safety, and Security

    HR budgeting also gives you a chance to invest in the well-being of your employees by making your work environment a safer, healthier place. By putting aside some of the budget for certain programs or initiatives, your business can reap the rewards of focusing on health, safety, and security.

    In terms of workplace safety, GMS’ own Jeff Costin notes that workplace safety programs can increase workplace productivity, improve retention rates, and reduce costs affiliated with injuries at work. Budgeting for safety training programs, new safety manuals, regular inspections, and other strategies can help you manage workers’ compensation claims costs and make your workplace safer in the coming year.

    Budgeting for health-related programs can also be a worthwhile expense to plan for the next year, as 75 percent of all healthcare costs are attributed to preventable conditions. A workplace wellness program can help your employees develop a healthier lifestyle through a variety of initiatives, such as:

    • Smoking cessation programs
    • The addition of a fitness facility or space
    • Health screenings
    • Lunch and learn events

    An HR Budgeting Partner

    Once you have your HR budget in place, you’ll need to have the support to move forward with all your plans and manage your HR administration needs. A Professional Employer Organization (PEO) like Group Management Services (GMS) can help businesses manage these HR functions, including payroll and benefits administration. 

    If you have any questions about how to get the most out of your HR budget or are worried about any compliance concerns associated with managing HR, contact GMS today to talk with one of our experts about how we can help your business prepare for the future.

  • When the Trump Administration took office back in January, most people believed that they were going to focus on three things:

    1. The repeal and replacement of the Affordable Care Act
    2. Tax cuts
    3. Tightening the country’s borders as it pertained to immigration

    We all know what happened with the repeal and replacement of the ACA. The Republicans have tried a couple of times, but simply do not have the votes to make it happen, even in their own party.

    Anyone who has seen attempts at tax cuts over the last 30-plus years knows how challenging the passage of that can be.

    That leaves immigration. There’s been a lot of squabbling about walls, travel bans, and the such, but some things seem to have gone under the radar.

    Image of changes in immigration regulations for businesses.

    How Changes in Immigration Regulations Can Affect Small Businesses

    Through the use of an Executive Order, President Trump has authorized the hiring of some 10,000 new immigration officers. Depending on where you stand on the immigration issue, that could be a good thing or a bad thing. As a business owner, this means an increase in the likelihood of workplace raids or immigration audits by Immigration and Customs Enforcement (ICE).

    Additionally, recent changes in immigration regulations have allowed for the extension of some foreign workers’ employment authorization. This creates a need for the re-verification of an employee’s immigrant status through an I-9 form.

    U.S. Citizenship and Immigration Services (USCIS) has released yet another new revision to the Form I-9 for employment eligibility verification. The revised Form I-9 became effective Sept. 18, 2017. If your company happens to be targeted for an audit or a raid, you will need to have your I-9 forms up to date.  

    In a rare example of government agencies working well together, the Department of Homeland Security has increased the penalties for I-9 form violations by 96 percent. That means the range of fines is now between $216 to $2,156 PER I-9 FORM.

    Find Out Where You Stand with the New I-9 Forms

    If you’re concerned about your status and which form you need (Is the old one still valid? Do I need all new ones?), you can work with an attorney or an HR consultant. Another option is to consider bringing on a Professional Employer Organization, like GMS, who does employee file audits as part of its HR services. Contact GMS today to talk to one of our experts about compliance needs for new immigration regulations.

  • As the years go by, HR administration continues to evolve. The growing need for improved operational efficiency and compliance has led more business owners to turn to HR experts for help managing crucial business functions. 

    This expansion has been so great that the Professional Employer Organization industry has nearly doubled to around $168 billion dollars in the past six-and-a-half years. The need for human resource outsourcing isn’t just a need for one or two different industries, as HR providers saw a 23 percent or greater increase in business from blue collar, white collar, and grey collar businesses. 

    While businesses often turn to PEOs for help with benefits administration and risk management services, there are other additional HR functions and benefits that have become more popular in recent years. Two of the more intriguing recent trends in human resource outsourcing is a move toward investing in online payroll and workplaces wellness programs.

     Image of a workplace wellness program, a recent human resource outsourcing trend.

    Online Payroll

    Technology is giving businesses a greater ability to track and store crucial business information. Outsourcing online payroll services to a PEO is one way businesses are taking advantage of advancing online capabilities to improve business efficiencies and save money.

    According to a survey conducted by cashflow management site Bill.com, nearly half of accounting professionals wish that they could eliminate paper checks. With online payroll services, you can. Nearly half of CEOs name sustainability as a top-three initiative for their organization, and a paperless workplace can help your business take a big step toward that goal.

    More businesses are turning to online payroll because it benefits your business, your employees, and the environment. Businesses benefit from a streamlined payroll solution that cuts down on management time and allows you to manage and access all your important information from anywhere. This easily-accessible system also makes it easier for employees to track time and access W-2s and paystubs. Finally, the lack of physical checks and files lowers your paper usage and storage, aiding the environment and allowing you to “save between $2.87 and $3.15 per pay run by paying employees electronically” according to Business News Daily.

    Workplace Wellness Programs

    These days, businesses are looking to pump up their health-related benefits offerings, especially workplace wellness programs and other related wellness perks. According to a research report by the Society for Human Resource Management, 24 percent of organizations increased wellness benefits in 2016, more than any other specific type of benefit. 

    Why are businesses gravitating toward adding wellness benefits? SHRM offers the following reasons:

    • 88 percent of organizations with a wellness program rated their initiatives as somewhat or very effective in improving employee health
    • 77 percent of organizations indicated their wellness program was somewhat or very effective in reducing health care costs
    • 53 percent of organizations wanted to create a culture that promotes health and wellness

    A workplace wellness program is a great way to benefit both your employees and your business by actively promoting a healthier lifestyle inside and outside the workplace. The CDC Foundation notes that the average productivity loss linked to absenteeism was $1,685 per employee. Promoting wellness can improve the lifestyles of your employees and help you cut down on productivity loss and rising healthcare rates.

    Take Advantage of HR Outsourcing Trends

    Whether you’re looking for help managing the latest HR trends or more traditional business functions, a PEO can be the way to go. A PEO can help you manage a wide variety of critical tasks through, offering a variety of the benefits associated with HR outsourcing, such as saving yourself time and money while protecting your business from compliance concerns or retention woes. Contact GMS today to talk to one of our experts about how we can help your business manage HR.

  • It’s difficult to run a small business without much support, which is why more employers are turning to human resource outsourcing. According to market research company Global Industry Analysts, Inc., the HR outsourcing market is projected to grow to nearly $54 billion by 2020 as business owners turn to other organizations for help managing important HR functions.

    So why have so many businesses turned to HR outsourcing? Here are four big reasons:

    • Time savings
    • Improved compliance
    • Better recruitment and training capabilities
    • Cost savings

    The benefits speak for themselves, so now it’s a matter of finding out exactly what business responsibilities you can outsource and which ones make the most sense for your business.

    Image of a woman selecting human resource outsourcing options for his business.

    What Falls Under Human Resource Outsourcing?

    Human resource outsourcing can involve more than just the hiring, training, and potential firing of employees. While those are important tasks, human resource management covers a wide range of other crucial administrative functions. 

    However, not every outsourcing company can handle every aspect of human resources. Some specialize in specific focus areas, leaving you out of luck if you need help with some tasks or forcing you to find another vendor if you have multiple functions where you could use assistance. 

    A Professional Employer Organization (PEO) allows you to turn to a single, trusted partner for all your human resources needs. A PEO provides comprehensive HR services for business of all sizes, including all the following functions.

    Traditional HR Responsibilities

    Your employees are a critical part of the success of your business. That’s why 78 percent of business leaders name retention as an important or urgent area of focus for their company. The right HR outsourcing partner can offer the HR support you need to improve retention rates. 

    Outsourcing traditional HR responsibilities to a PEO can help your business find the right employees for your business and prepare them for their roles through employee recruiting and training services. From there, a PEO can also provide performance management services to keep track of performance, develop rewards programs, and assist with promotions and terminations. 

    Payroll Outsourcing

    Payroll management is a time-consuming task that can consume your work schedule, with nearly 30 percent of small business owners spending more than six hours each week on payroll tax administration alone, according to the National Small Business Association. Failing to pay taxes on time or other related mistakes can also lead to financial penalties.

    A PEO can help you save time and money through payroll administration. This allows true payroll experts to manage your payroll taxes so you can reduce your tax liabilities and responsibilities and make sure that you’re compliant with any payroll rules and regulations. A PEO can also give you access to online payroll services, allowing you to keep track of payroll information, offer access to paystubs, and track time in one web-based location.

    Risk Management Outsourcing

    Another advantage of outsourcing HR is that it can help you can safeguard risk management practices associated with both workers’ compensation and unemployment claims. When it comes to workers’ compensation, you should worry about not only limiting injuries in the workplace, but also the ongoing costs of workers’ compensation insurance. 

    Whether you run a construction company or a quiet office, there is always the risk of a workplace injury. According to Occupational Safety and Health Administration, “it has been estimated that employers pay almost $1 billion per week for direct workers’ compensation costs alone.” A PEO can help you limit workplace injuries and rising costs through a combination of cost containment and loss prevention strategies. These include workplace safety measures, such as safety training programs, developing a safety manual, and creating guidelines that reduce injury risks. By minimizing exposure and keeping good records, you can receive rate discounts, as well as making your business a safer place.

    Another issue is the impact of unemployment taxes on your bottom line. While unavoidable, these taxes can be managed, you can still take measures to reduce them so that you limit the financial damage to your business. A PEO can create or improve employee handbooks and detailed job descriptions that make work expectations clear. PEO’s can also keep records of any written warnings, examples of poor performance, and other documentation that can help protect you against unemployment claims that will lead to higher rates.

    Benefits Outsourcing

    A good benefits package plays a key part in attracting and retaining key talent. Just consider the following information from a 2017 Harvard Business Review article on employee benefits:

    • Nearly three in five people name benefits and perks as a top consideration before accepting a job
    • 80 percent of employees would choose additional benefits over a pay raise
    • 88 percent of people said better health, dental, and vision insurance would receive either some or heavy consideration when choosing a job

    Employees appreciate great benefits, and outsourcing benefits administration to a PEO can provide you with more buying power to offer a better group health insurance coverage to your workers. Not only will this please your employees, it will as save you from spending time administering the plan yourself. A PEO can also offer assistance with other attractive benefits, such as:

    • 401(k) plans and profit sharing
    • Supplemental insurance plans
    • Workplace wellness programs
    • Telemedicine

    A Single Human Resource Outsourcing Partner

    Once you decide to outsource HR functions, you need to figure out who you’re going to turn to for help. With a PEO, you can work with a single company for all your HR outsourcing needs.

    As you can tell, there are several HR functions that require regular attention. Partnering with a PEO gives you access to HR specialists who specialize in all areas of human resources, allowing your business to take advantage of any or all the services we provide. Contact GMS today to talk to one of our experts about HR outsourcing and what we can do to strengthen your business and take the burden off your shoulders.

  • As a business owner, you get used to making tough decisions every day. One critical question is whether you should handle every human resource function internally or if it’s in your business’ best interest to consider outsourcing. 

    To insource or to outsource may not be as difficult of a question as you may think. Here are four reasons why it may make sense for your business to consider human resource outsourcing.

    Image of a human resource outsourcing company helping a small business owner.

    Time

    Your time is crucial. The problem is that you only have so much time to spread around, even if you’re working extra hours each week. 

    A survey by business advising organization The Alternative Board found that the average small business owner worked around 50 hours per week, but that only 32 percent of that time was spent working on the business itself. According to a survey by the National Small Business Association, roughly 30 percent of small business owners spend more than six hours each week on payroll tax administration, and that’s just one of many HR functions that you have to deal with. 

    You can’t slow down time, but you can outsource key HR functions. Not only will this free up critical time for you to spend on core business needs, your HR functions be handled by people who are experts in their respective fields.

    Compliance

    Let’s face it; you likely didn’t train to be a HR specialist. You may be able to handle many HR functions, but you might not have the time or know-how to keep up with labor and tax laws, compliance regulations, and avoid mistakes that could lead to everything from financial penalties to litigation.

    Regardless of if you run a small five-person organization or a business with 50 employees, there are specific HR processes that you need to follow. Over the past five years, compliance rules and regulations have increased, adding even more concerns for your business. These compliance laws cover everything from proper employee classification, safety requirements, and more. A PEO can help you track everything you need to know and help you stay compliant so that you avoid future penalties.

    Recruitment and Training

    A good company needs good employees. Outsourcing certain HR functions can help your business attract top talent and retain the workers you already have.

    Recruitment is about more than just hiring a job candidate; it’s about hiring the right candidate. A PEO can help you set up an efficient, organized process that allows you find people who are a good fit for your company. These experts can deal with the interview process, review applications, post job ads, evaluate candidates, and other time-consuming tasks, allowing you to speak to the most qualified candidates so that you can decide who’s right for your company.

    Once you hire a new employee, a PEO can also ensure that they receive proper training. The Society for Human Resource Management cites that “66 percent of companies with onboarding programs claimed a higher rate of successful assimilation of new hires into company culture.” A PEO can set up training programs that are customized to your business. This helps your new employees be properly prepared for their jobs so that they are more likely to stay at your company and succeed.

    Money

    Of course, the decision to outsource HR functions can come down to the investment. While some business owners might think of hiring an outside company as just another expense, professional HR management can result in notable savings across several HR functions.

    Remember how we already discussed how HR outsourcing helps you save time, stay compliant, and improve recruiting and training? There are plenty of savings to be found in all those areas.

    To start, time is money. The ability to free you up to work on building your business can be a huge asset to your business. That free time can be spent focusing on strategic planning, marketing efforts, and sales tasks, all of which can help you bring in additional revenue. That’s better than spending hours staying up-to-date on the latest compliance laws.

    Speaking of compliance concerns, those penalties can really cost your business. Avoiding HR penalties keeps you out of the government’s crosshairs, protecting your business from unexpected fees, such as payroll tax fines or penalties associated with a safety violation. In addition, a PEO can also employ cost-prevention strategies to help lower unavoidable expenses, such as unemployment or workers’ compensation rates. 

    There’s also all the costs associated with recruitment and training. In 2016, SHRM found that the average cost per hire is $4,129. Add that to an average cost of $1,208 for training and development and you have a pricey investment. A PEO can help your company make that investment worthwhile, finding and training the right person so that your new employee doesn’t leave in less than a year and force you to start the process all over again.

    Outsourcing your HR to a PEO can also lead to additional cost savings due to economy of scale. Since a PEO manages benefits administration and other HR functions for several companies, they can give your company greater buying power that can allow you to get more for your money. For example, your newfound buying power can give you access to a better benefits package, which can help you attract and retain that top talent you want.

    Invest in Human Resource Outsourcing

    Business owners have plenty to worry about. HR outsourcing is an investment that can help you strengthen your business and save you money in the process. Contact GMS today to talk to an expert about how a PEO can help your business through HR outsourcing.

  • As a small business owner, you’ve likely thought of ways that you can cut business expenses to save money. One of these ideas may involve whether you should invest in outsourcing HR or hiring in-house HR professionals.

    HR just isn’t that important when you don’t have many employees, right?

    Wrong. Every business needs to deal with critical HR functions, whether it’s a major corporation or a five-person business. Here’s what you need to consider the next time you think about whether your business needs HR management.

    Employees at a small business thEmployees at a small business that outsources HR management.at outsources HR management.

    HR Needs for Small Businesses

    Payroll

    If you have employees, you’re going to deal with payroll. While you can manage payroll on your own, simple mistakes can get pricey. Inc. reports that “the IRS penalizes about one out of every three business owners for payroll errors,” with penalties costing small businesses up to $4.5 billion per year according to Bloomberg.

    Compliance is likely not your only concern when it comes to payroll. More than half of small business owners spend at least three hours a month managing payroll. Investing in HR can give you the time you need to focus on other key business items instead of struggling with payroll management.

    Hiring and Firing

    While you have a smaller staff, every hiring decision is crucial. SHRM found that the average cost per hire is around $4,129, which makes every bad hire a costly mistake. 

    An HR function like employee recruiting and training can help you find the right people for your business and better prepare them for their roles, lowering the chances of a bad recruit. HR can also handle employee performance management. This involves not only keeping employee policies up to speed, but also handling everything involved with employee termination, such as legal regulations and internal procedures.

    Risk Management

    One crucial aspect of good HR is that it can help you deal with costs that you may think can’t be managed. Let’s say that you had to fire an employee. That employee could make an unemployment claim. Another worker may get injured on the job and try to argue that your workplace was unsafe. These scenarios could end up being very costly for a small business without the right compliance documents and risk management strategies.

    HR professionals can take actions to protect your business. Managing key documents like employee handbooks and keeping track of performance records can be the evidence you need to fight off future claims. A good HR partner can also help lower standard workers’ compensation rates and unemployment taxes through detailed record-keeping and management, offering you some savings in places you wouldn’t have expected to be possible.

    Benefits

    You don’t have to be a big employer to offer group health insurance and other attractive benefits. While businesses with fewer than 50 full-time employees don’t have to offer health insurance, 95 percent of HR professionals cite health care benefits as a top benefit for employees, making an intriguing benefits package a great way to attract and retain top talent.

    Of course, offering these benefits can be expensive and time-consuming without expert help. An employee benefits administration team can help you identify exactly what benefits your employees want, keeping you from wading into a pool of healthcare compliance and helping you offer an attractive package that won’t break the bank.

    Find the Right HR Option for Your Small Business

    A small business has a lot to gain from quality HR management. A good HR partner can handle everything from complicated tax compliance concerns to helping you understand which employee documents you need to keep on file, but that doesn’t mean you need to hire a whole staff in the process. The key is to find an HR solution that fits what you need and can grow along with your business. 

    A Professional Employer Organization (PEO) allows small businesses to find an HR management solution that suits them. A PEO gives you access to HR professionals who can manage your payroll, benefits, and any other key HR functions, saving you time and ensuring that your business is covered in the process. Contact GMS today to talk to one of our experts about how we can help your business.

  • A lack of motivation can really cost your business. Entrepreneur reports that disengaged, disinterested employees have led to a loss of up to $550 billion per year for U.S. businesses. Fortunately, there are ways that you can help motivate your employees so that they’re ready to give it their all every day. Here are three steps that you can take to engage your employees.

    A motivated employee. 

    Build Relationships

    Just how important is it to build a relationship with your employees? When the Society for Human Resource Management (SHRM) conducted a survey on job satisfaction and engagement, a whopping 95 percent of respondents noted that “their relationship with their immediate supervisor plays an important role in how they feel about their job.”

    Whether you work directly with your employees or have a management staff that supervises everyone, it’s important to build a welcoming culture that places an emphasis on communication. Employees want to feel like their voices are heard, and the occasional email or chat message isn’t going to be enough to motivate them. Some ways to improve workplace communication include:

    • Establishing regular face-to-face communication with employees
    • Set regular meetings where employees can share input, such as weekly townhall meetings or monthly retrospectives
    • Offer an anonymous feedback system
    • Invest in online communication tools, such as Slack or HipChat

    Instituting some of these practices can give employees an avenue to share their thoughts and feelings. However, communication can be about more than just the workplace. Showing an interest in employees’ lives outside of the office can show your employees that they’re more than just a dollar sign, which can inspire them to become more invested in your business and motivated to do great work.

    Let Them Grow

    Future opportunities can play a big role in an employee’s motivation. SHRM’s job satisfaction and engagement survey found that roughly half of respondents noted that “career advancement opportunities within their organization were very important to their job satisfaction.” Fortunately, there are many ways that you can help your employees develop as a part of your business.

    Hiring internally can be a powerful tool that can allow your workers to make the next logical step in their career. Internal candidates already know your company intimately, and you have the advantage of knowing what their skills are before you offer them the job. For your employees, it gives them a big forward step without having to leave for a new company. In return, you get to retain key talent and help your workers grow. Also, internal hires can be up to 20 percent cheaper to hire than external candidates, which adds some cost savings to your team development efforts.

    If you don’t have any open positions, you can still help your employees develop. Offering employee training or allowing workers to attend educational conferences and trade shows can give them the ability to learn new skills that they can use at your business. It also shows that you care about their career development, which can serve as a great motivational tool.

    Give Your Employees Benefits That They Want

    Money is a big motivator, but it isn’t always the biggest factor for employees. According to the Harvard Business Review, “80 percent of employees would choose additional benefits over a pay raise.” Catering your benefits package to the wants and desires of your employees can act as a good source of motivation.

    Of course, employees may value certain benefits more than others depending on their needs at home. Across generations, employees’ preferences have changed, which can impact which types of benefits you may consider adding to help motivate your workers. Glassdoor offers some insight into what benefits each generation tends to value:

    • Baby Boomers value salary level, health insurance, and a retirement plan
    • Gen Xers value salary level, a 401K plan with matching benefits, job security, advancement within the company, and opportunities for work-life balance
    • Millennials value benefits choices, paid time off, ability to work remotely, control over their schedules, and a great deal of flexibility

    Each business is different, so you may find that giving your employees some work-from-home privileges to be beneficial while another business owner may see more value in employee training. It can also be beneficial to listen to what your employees have to say on the matter, whether it’s in person or during a regular meeting that you set up to improve communication. 

    By listening to their wants and needs and amending your benefits package in a way that makes sense for both your business and your employees, you can show your workers that your company is one that values them. In turn, this can inspire them to keep up the hard work and become more invested in your business.

    Get Some Help to Motivate Your Employees

    While implementing employee management initiatives to motivate employees can be very valuable, it can also be a lot of work to take on by yourself. Partnering with a Professional Employer Organization allows you to turn to HR experts to set up employee training programs, get the most bang for your buck on benefit plans, and manage other critical HR functions that can keep your workforce motivated. 

    Contact GMS today to talk to one of our experts about how we can help you with employee management.