Request a call Login

  • It’s no surprise that it’ll take a lot of questions to determine whether a job candidate is the right fit for your company. However, you may not know that there are quite a few interview questions that can land your company in trouble. 

    One example of this is the city of Cincinnati’s new Salary Equity Ordinance, a measure that passed in 2019 and will take effect in March 2020. At that time, it will be illegal for employers in Cincinnati to ask about a job candidate’s pay history. This measure impacts any step of the hiring process, ranging from job ads to employee interviews.

    While Cincinnati employers must adjust to the Salary Equity Ordinance, there are many other types of questions that are disallowed from the interview process across the country. An illegal question can lead to a variety of consequences, including a discrimination lawsuit or an investigation by the U.S. Equal Employment Opportunity Commission (EEOC). This means you’ll want to brush up on which interview questions can lead to EEOC complaints.

    HR managers after asking an illegal job interview question. 

    Problematic Topics for Job Interviews

    Some illegal interview inquiries are clear – you shouldn’t ask questions about a job candidate’s race or sexual identity. While those two topics pose apparent discrimination problems, others dangerous questions are not as apparent. 

    Even questions asked with the best of intentions can be flagged as illegal. What you may see as an innocuous attempt at small talk can be interpreted as a topic that’s off limits. As a result, here are some topics that should be addressed carefully or avoided altogether.

    National origin and citizenship

    Any question regarding a candidates’ national origin can be an issue. The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for employers to base hiring decisions on a person’s citizenship or immigration status. Even a question asking about a candidate’s accent can be misconstrued as an attempt at discrimination. However, it’s acceptable to ask whether a candidate can legally work in the U.S., provide the required documentation if hired, and read, write, and speak English if required by the job.

    Religion

    If a question involves a candidate’s potential religion, you should probably leave it unsaid. Even roundabout questions like whether a candidate will need time off for religious holidays can be seen as non-job related and an attempt to discriminate against a person for his or her beliefs. According to the Yale Center for International and Professional Experience, the only employers allowed use religious affiliation as a basis for hiring are those “whose purpose and character is primarily religious.”

    Pregnancy status

    It’s not acceptable to ask about their pregnancy – even if the person interviewed is clearly pregnant. Not only does this violate set pregnancy discrimination laws, it can also potentially appear as gender discrimination since male candidates won’t have to answer the same questions. General questions about any future planned leave is acceptable if the question isn’t tied to the pregnancy. Also, feel free to ask other neutral job-related questions involving certain work responsibilities to see if the candidate can perform necessary tasks.

    Marital status or number of children

    Like pregnancy, you aren’t permitted to ask job candidates whether they’re married or have any children. Asking about these may lead an employer to discriminate against a candidate because they may need some time to take care of their current or future children. Instead, ask about specific job-related responsibilities to see if they can perform these tasks, such as travel requirements or set work hours.

    Disability

    The Americans with Disabilities Act (ADA) makes it illegal for employers to ask a range of questions that “are likely to reveal the existence of a disability before making a job offer.” That means any questions regarding how many sick days an applicant took in the past year or what drugs they take.

    It’s also generally disallowed to ask if an applicant will need a reasonable accommodation for a job unless “the employer knows that an applicant has a disability, and it is reasonable to question whether the disability might pose difficulties for the individual in performing a specific job task” For example, the EEOC writes that it’s fine to ask about reasonable accommodation if the applicant voluntarily revealed his or her disability or there’s a clear visual sign, such as if the applicant uses a cane for a severe limp.

    Age or genetic information

    It’s only acceptable to ask about an applicant’s age if it’s directly tied to their job. For example, someone who works at a bar or some other age 21-plus environment will need to provide proof of their age. Even a question like when an applicant graduated from high school can be viewed as an attempt to identify a person’s age.

    Arrest record

    According to the EEOC, there is no federal law preventing employers from asking candidates about their criminal history – although “Using criminal history information to make employment decisions may violate Title VII of the Civil Rights Act of 1964.” It’s important to note that while there’s no federal law against asking about arrest records, many states ban the practice. As such, make sure to check your state’s laws before asking candidates about their criminal history.

    Protect Your Company During the Hiring Process

    Adding a new employee is an exciting step for any business, but it’s important to make sure that your business proceed with caution. Fortunately, there are many steps that you can take to avoid illegal interview questions. These include:

    • Establishing set interview questions for every candidate
    • Treat every candidate the same during the interview process
    • Take notes and document the results
    • Have more than one interviewer in the room

    Another way to help your business is to hire a Professional Employer Organization that can not only oversee employee hiring and training, but also help you shoulder the administrative burden created by key HR functions. The GMS team can help you stay up to date on the latest rules and regulations while managing everything from your company’s payroll to employee benefits plans.

    Whether you need HR services in Cincinnati or in some other location, GMS can help. Contact us today to talk to one of our experts about what we can do to help you protect your company now and prepare for the future.

  • With recent changes to the Fair Labor Standards Act (FLSA), many business owners – and their employees – are trying to figure out exactly who qualifies as exempt from overtime pay under the new rules. Unless you’re ready to dig into Department of Labor (DOL) fact sheets and other documents, it’s not always clear just what counts as white collar exemption these days. To help, we’ve put together a breakdown of these exemptions to help you properly classify your employees.

    A group of white collar exempt employees at a business.

    What Qualifies White Collar Employees to be Exempt?

    There are three tests that employees must pass in order to classify them as exempt.

    • The salary basis test – Exempt employees must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed
    • The salary level test – Exempt employees must meet the threshold for minimum weekly salary
    • The duties test – Exempt employees must primarily perform a list of set duties

    The thresholds for the salary level changed as of Jan. 1, 2020. In the past, the minimum salary threshold was $455 per week. The recent rule changes officially raised the threshold to $684 per week. That equates to a $35,568 annual salary, 10 percent of which can come via nondiscretionary bonuses, incentives, and commissions that are paid out each year or more frequently. 

    There are also separate stipulations for “highly compensated employees” (HCE). The salary threshold for this group raised from $100,000 to $107,432 per year. Unlike other employees classified as exempt, HCEs face a “relaxed” duties test according to the Society for Human Resources Management (SHRM).

    The Different Exempt Employee Classifications

    While the salary thresholds have changed, the employee classifications listed as exempt have not. These classifications are not based on job titles. Instead, certain types of duties are used to mark an employee for exemption. The DOL lists the following groups as exempt, each with their own duties tests.

    • Executive
    • Administrative
    • Professional
    • Computer
    • Outside sales

    Executive Exemption

    To be considered an executive employee, a person must manage an enterprise, or a recognized department or subdivision of that enterprise, as his or her primary duty. This definition also states that an executive employee must regularly oversee and direct at least two or more full-time employees (or the equivalent in part-time employees). In addition, this employee must have some influence on hiring or firing other employees, whether he or she can outright terminate employees or can influence decisions related to any other type of status change for other employees. There is also a stipulation that any employees who are actively engaged in management and own at least 20 percent equity interest in the enterprise in their place of employment are considered exempt.

    Administrative Exemption

    Administrative employees are judged by a pair of tests. First, the employee must primarily perform office or non-manual work that is directly related to management or general business operations. Second, administrative employees must “exercise of discretion and independent judgment with respect to matters of significance” which refers to the level of importance or consequence of their primary duties. This discretion and judgment implies that an administrative employee evaluates various courses of action and has authority to decide which is best for the business.

    Professional Exemption

    The DOL has guidelines for two different types of exempt professional employees: learned professionals and creative professionals. Learned professionals must primarily perform work that requires “advanced knowledge.” This knowledge involves work that requires consistent discretion and judgment and must be “predominantly intellectual in character.” The DOL also stipulates that this knowledge be in a field of science or learning. As for creative professionals, their primary work should require a form of invention, imagination, originality, or talent in a recognized artistic or creative field.

    Computer Exemption

    Employees classified under the computer exemption are those employed as a systems analyst, programmer, software engineer, or some other type of skilled individual who operates in the computer field (not including manufacturing or repair). The DOL also stipulates that these employees’ primary duties involve one or more of the following tasks.

    • The application of systems analysis techniques and procedures to determine hardware, software, or system functional specifications
    • The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes based on and related to user or system design specifications
    • The design, documentation, testing, creation, or modification of computer programs related to machine operating systems

    Outside Sales Exemption

    Unlike the other classifications, the FLSA’s salary requirements do not apply to outside sales employees. To be considered part of this exemption, an employee’s primary duty must involve either making sales or obtaining orders/contracts for either services or for the use of facilities. In addition, an outside sales exempt employee must regularly work outside of his or her employers place(s) of business.

    Why is it So Important to Correctly Classify Exempt Employees?

    Employee misclassification can lead to a series of issues. Not only can misclassification impact the compensation for certain employees, it can also affect benefit plan eligibility, payroll taxes, and other crucial details. Not only can these mistakes be a huge issue for your employees – Joe Schmo from the warehouse won’t be thrilled if he’s classified as exempt – you’re putting your business at risk with the law as well.

    There are serious financial consequences if the Bureau of Workers’ Compensation (BWC) finds out that you’ve misclassified employees. There are a variety of potential penalties you can face depending on the severity of the situation:

    • The collection of unpaid wages
    • Back taxes
    • Additional penalties for failing to deduct and withhold taxes for misclassified employees
    • Punitive damages from lawsuits for unpaid wages and taxes

    In addition to the initial penalties, you can bet that you’ll end up on the BWC’s radar. Businesses that misclassify employees are known as potential repeat offenders, which means that these penalties will make it more likely for the Department of Labor and OSHA to audit your business in the future, even if the initial misclassification was the result of a simple mistake.

    Protect Your Business from Misclassification Mistakes

    Proper employee classification is very important, but it’s not necessarily easy to make the right call for every employee if you haven’t spent the time necessary to learn all the appropriate classifications. Meanwhile, you still have a business to run even after you’re done trying to figure out tedious HR management tasks.

    While you may not have extensive HR expertise, the experts at GMS do. In addition to helping you avoid costly misclassification issues, we can help you simplify and strengthen your business through payroll management, employee benefits administration, and other crucial tasks. Contact GMS today to talk to us about how we can help you save precious time and protect your business through professional HR management.

  • It is no surprise, that many companies are currently hiring. With unemployment being at an all-time low, many employers are having a hard time finding quality employees.

    One industry that has faced scary headlines is the transportation industry. With the growth of self-driving technology, transportation companies, such as Atlanta-based UPS, one might think that the transportation industry would be hiring at a lower rate or possibly consider laying people off. This happens to be far from the truth. In fact, the transport sector is showing surprising growth.

    A line of trucks being driven by people hired into the transportation industry.

    The Numbers Behind Transportation’s Hiring Boom

    The U.S. Bureau of Labor Statistics reported that 16,000 workers were added in September to companies specializing in air freight, trucking, and warehouse operations. This makes transportation one of six top job magnets, alongside others such as tech and healthcare.

    The data doesn’t stop there either. According to a LinkedIn study, the transportation industry hasn’t just added driving jobs over the past five years, more than 50 percent of new jobs added are higher-paid specialized functions. This goes to show that the industry is showing no signs of slowing down anytime soon. With these added specialized jobs, this means more opportunities for salespeople.

    Another development worth mentioning is that jobs in the traditionally male-dominated field are now opening up to women as well. Women make up about 15 percent of the industry average, but at XPO Logistics, women now make up about a quarter of their global workforce. This year alone, 30 percent of new employees in transportation happen to be female.

    So which cities are benefiting the most from the surge? LinkedIn data shows that the majority of cities tend to be heartland U.S. metropolitan areas. The top five cities are Chicago, New York City, Dallas-Fort Worth, Atlanta, and Los Angeles.

    The Impact of the Hiring Trend on Transportation Businesses

    What does this mean for business owners? Growth. Employers are not only hiring new employees, but also hiring new employees for jobs that the company has not had in the past. An example of this can be seen in UPS where in the past they have only had one way to do returns. With “Returns-Plus” and other options they can offer to big customers, UPS now must hire for new positions. When the economy experiences rapid growth, it is imperative for businesses to keep up. Many employers will be hiring and looking for some of the best talent.

    For companies in this industry struggling to find quality talent, there are resources available to help you  with employee recruitment and hiring. When you partner with a PEO like GMS, we can help you navigate through the hiring process, along with the rest of your administrative burdens from payroll to human resources, and benefits. GMS stands with employers through their employees’ entire lifecycle. From helping companies search for talent to the interview process to setting up the employee’s benefits, GMS will be there. Business owners, your time is precious, so handing off these functions will allow you to focus on what really matters.

    Ready to make your business simpler, safer, and stronger? Contact our Atlanta office or one of our other locations today to talk with one of our experts about how we can help you with hiring and other key business functions.

  • Employees play a massive part in the success of your company. Of course, this also means that a bad employee can also lead to potential inefficiencies and other issues. 

    Firing an employee is a difficult reality of running a business. While the situation is unpleasant for everyone involved, there are right and wrong ways to go about the termination process. In fact, there are several steps you need to take before, during, and after you fire an employee. Here’s what you need to know to take the right route during the termination process.

    An employee gathering items after being fired by a small business owner. 

    What to Do Before You Fire an Employee

    Firing an employee is typically more than a one-day process. There are several actions you’ll need to take before you effectively terminate an employee to help protect your business and provide proper feedback. Depending on the employee, some of these steps may even help you improve their performance and save you from severing the relationship.

    Distribute an employee handbook

    Long before you plan to fire someone, you should make sure that every one of your employees receives an employee handbook. An updated handbook is an official document that makes the following details very clear for your employees:

    • Company philosophy
    • Conditions of employment
    • Company policies and procedures
    • Compensation and benefits

    Your employee handbook plays an important dual role for your business. First, it’s a great way for new hires to learn more about the rules, perks, and personality of your business. Second, it’s a compliance tool to make sure that your employees know and understand internal policies and grounds for dismissal. Having these rules in place – along with documentation that your employees have received your handbook – will help protect your business in case a fired employee tries to fight their dismissal in court.

    Review past performance reviews and feedback

    Before you decide to dismiss an employee, look back to see what type of feedback he or she has received in past reviews. If your employee has only heard good feedback and received raises that correspond with exemplary performance, a dismissal would come as a huge shock. 

    Not only do employee performance reviews give you a chance to set goals and expectations for an employee, they can also help protect you against claims if you’ve shared feedback indicating that an employee needed to improve. If there are no negative reviews on record, you may want to wait until you can provide some honest feedback. This way your employee may take the review as an opportunity to improve. If he or she doesn’t, you have evidence that both you and your employee knew of the continued poor performance so that you can back up your decision to terminate an employee.

    Document violations and give official warnings

    Like performance reviews, it’s important to have a documented history of any warnings or violations for any employee you decide to fire. Once it has become apparent that an employee’s performance is simply not up to standards, call them into a private space and give that person an official warning.

    It’s important to make sure that this warning is also in writing. While you explain why you’re unhappy with your employee’s performance, there should also be a printed document that the employee can sign so that you can place it in that person’s personnel file. You can also use a performance improvement plan that lists set goals for an employee to achieve within a set period of time (30 days, 90 days, etc.). Either of these options will make it clear exactly why the employee is at risk of losing his or her job and will help you back up your case as to why they needed to be dismissed.

    What to Do On the Day of Termination

    After you’ve taken the appropriate steps to give an employee an opportunity to improve and document reasons for dismissal, it’s time to act quickly and terminate the offending team member.

    Don’t wait for Friday

    While some situations call for immediate dismissals regardless of the day, certain days can be better than others if you can plan ahead. According to The Balance Careers, it’s generally best to try and aim for sometime in the middle of the week to fire an employee, preferably on a Tuesday or Wednesday. 

    Firing someone on a Monday can lead to the terminated employee feeling as though you wasted his or her time waiting until a new week has started. Friday dismissals leave the terminated employee to stew about the decision over the weekend. Aiming for the middle of the week can help mitigate bad feelings in an already difficult situation.

    Fire employees in person

    Firing an employee is already an unpleasant situation – don’t make it worse for the employee by terminating them via phone, email, or some other electronic means. While the experience will likely always be painful, it’s important to be as humane as possible when firing an employee. That approach means giving them the courtesy of hearing the news from you or another appropriate person at your company. 

    Not only is a face-to-face firing the right thing to do, it also looks much better than the alternative. Taking a less personal approach can leave a negative impression for other employees when they learn about the dismissal, especially if someone was friends with the terminated employee. As such, a personal approach can lessen the odds of not only bad reactions from terminated employees, but also any concerns from the coworkers they left behind.

    However, an in-person approach isn’t necessarily feasible if you need to fire a remote employee. While you may not be able to sit in the same room with these people, it’s still good to break the news face-to-face through some form of video conferencing platform.

    Don’t fire employees by yourself

    It’s always a good idea to have another person in the room if at all possible. Whether it’s an HR specialist or another employee, a second person serves as a witness. Unfortunately, there’s a chance that your former employee may try and accuse you of an unjust firing. Having an HR professional in the room can help you stay on track during the dismissal process to avoid any potential issues. Even if you don’t have an HR expert available, a second person gives you another person who can attest to your side of the story in case the former employee makes any false claims during your meeting. 

    Keep it short and simple

    When it’s time to fire someone, it’s best to avoid any small talk and get straight to the point. Tell the person directly that he or she has been terminated. Make it very clear that this decision is final and give very specific feedback as to why you and the company made this decision. 

    As you may expect, this isn’t a happy occasion and the fired individual likely won’t take the news well. However, it’s important to listen to what your former employee has to say to get a better read on how he or she takes the news. Whether they’re angry, sad, shocked, or in denial, continue to repeat the message and treat them with respect.

    This is also the time to cover next steps and what will happen involving their final pay, benefits, and other details. At this point, you’ll be able to discuss any terms for severance pay, extended healthcare, or other benefits if you choose to offer them. You can also ask the individual to sign a release of liability.

    Collect any work-related items

    Depending on your business, you may have provided your former employee with equipment ranging from small supplies to extremely expensive items. You’ll want to collect any company property from them before or during the individual’s last day, unless there’s an agreement in place to allow that person to keep certain goods. These items can include:

    • Keys or key cards
    • Laptops
    • Credit card
    • Cell phone, tablet, or other mobile device
    • Company car
    • Miscellaneous office equipment

    In addition to physical items, you also need to address passwords, codes, or any other means of company access. If certain doors at your company are unlocked by keycodes or other card or keyless means, change those codes. Likewise, either you or someone else at your company should restrict any user access and change any passwords the dismissed employee may use to access your computer network.

    Likewise, your former employee likely has some personal items that he or she will want to take home as well. If you schedule the termination meeting for the end of the day when most of your other employees are gone, the dismissed employee can gather their own possessions without as much fear of embarrassment. Of course, you may want someone there to watch just to ensure that the  employee doesn’t take any company property. You can also ask terminated employees to provide a list of their personal property so that someone else can gather their possessions and return it to them there or someplace outside of work at an arranged time in the future.

    Escort them out and end on civil terms 

    After both parties have collected all the necessary items and are ready to go, it’s time to wrap up the termination meeting. Personally walk the individual to the exit and wish him or her well in the future. The dismissed individual may not be in the best mood, but it’s good to part ways on a gracious note.

    What to Do After You’ve Fired an Employee

    While the hardest part of the termination process may be over, your job isn’t quite done. There are still some very important tasks to finish that involve updating everyone else in your team and protecting yourself in case the fired employee decides that the matter isn’t over just yet.

    Inform the office

    While it may seem easier to not address the departure of an employee, it’s best to be honest to your team. If you don’t say anything, other employees may lose trust in management and start to fear that there are more dismissals in store for the future. Word will quickly spread on it’s own, so you can shape the conversation and get ahead of the gossip with a quick message.

    Fortunately, your message to the rest of your company doesn’t need to be long and complicated. Instead simply you’ll want to focus on the following:

    • That the dismissed employee no longer works at your company
    • The transition plan for handling the former employee’s departure
    • That anyone with questions should feel free to speak to you or another relevant person

    Avoid saying that the employee was fired. It’s best to just say that the person in question is no longer at the company and shift toward the future. Also, refrain from making any critiques about the former employee. These comments may not sit well for his or her former coworkers, so it’s best to move forward.

    It’s also important to determine the right method and timing for sharing this information. If you have a smaller company or the former employee workerd with a close group of associates, an in-person company meeting is best. If your company is larger or the former employee didn’t work as closely with others, a termination email should be enough to suffice. You can also hold an in-person meeting with closer associates and follow up with an company-wide email as well if you want to break the news to a certain group first.

    Reassign duties

    Part of the transition plan for handling your former employee’s departure involves addressing how that employee’s duties will be handled in the short- and long-term future. This can involve delegating who will pick up the slack until you have a more permanent solution in place. If the employee received regular emails or calls from clients or customers, have those messages forwarded to someone else in the organization.

    You also want to be careful about how you split up these duties – you don’t want to make a good worker bitter because she or she has to do the work of two people because of someone else’s dismissal. If you plan to hire someone new or put new processes in place to ease the overall burden of these duties, let your employees know. A bit of transparency will help reassure concerned employees and let them look ahead to the future instead of dwelling on the downsides of the dismissal.

    Be prepared for unemployment claims

    If the employee didn’t sign some form of liability preventing them from doing so, there’s always a chance that they may file a claim against your business. Unemployment taxes can cost your business thousands of dollars, and a claim against your company may lead to even more financial burden. 

    Fortunately, there are ways to protect your business from the claims and unruly taxes. A combination of maintaining good company policies and record keeping can improve your chances of winning unemployment claim cases. It also helps to have a dedicated company like a Professional Employer Organization on your side that can reduce your tax risks and help you fight against unwarranted claims.

    Consider a PEO for Employee Performance and Risk Management

    The firing process isn’t an enjoyable one, but it helps to have trustworthy, experience HR professionals by your side when you do need to dismiss an employee. Group Management Services can help you manage the entirety of the employee lifecycle, including employee recruiting and training, performance management, and unemployment claims management.

    Whether you’re dealing with employees, benefits, or payroll, HR management can eat up the majority of your schedule. GMS can help you take your time back while providing your business with professional services that protect and strengthen your business. Contact GMS today to talk to one of our experts about how we can help you support your business.

  • Paid time off (PTO), while an attractive employee benefit, can present some challenges for small business owners. From determining the number of PTO days to creating an employee leave policy to tracking time off, there’s a lot that must be taken into consideration. Use this guide to determine how much PTO your employees should receive.

     Woman travelling on PTO.

    Benefits of Paid Time Off

    There are many benefits small businesses can use to their advantage by offering PTO. Perhaps the best part is that it’s one of the least expensive benefits for employers to offer when compared with health insurance, retirement plans, and other benefits. 

    When putting together an employee’s compensation package, PTO can be a great benefit to attract and retain top talent. According to Glassdoor, PTO stacks up as the second most important benefit to employees, following health insurance. With 73 percent of small businesses offering PTO to full-time employees, according to the National Federation of Independent Business (NFIB), it’s almost critical to stay competitive in the labor market.

    Studies also show that PTO has the power to make employees more productive, engaged, and relaxed. The American Psychological Association says that taking time off can help employees relieve stress, prevent job burnout, and even cure headaches and backaches. An Ernst & Young study also found that for every 10 hours of PTO taken, employee performance ratings improve by 8 percent.

     

    Average Paid Time Off

    According to the U.S. Bureau of Labor Statistics (BLS), the average employee receives 10 days of paid time off per year, not including sick days and holidays. However, the average number of PTO days can vary depending on company size and years of service:

      1-99 employees 100+ employees All companies
    PTO after 1 year 9 days 12 days 10 days
    PTO after 5 years 13 days 16 days 15 days
    PTO after 10 years 15 days 19 days 17 days
    PTO after 20 years 17 days 23 days 20 days

    Consider using these averages as a benchmark when determining your paid time off policy. 

     

    Do Employers Have to Give Paid Time Off?

    The Fair Labor Standards Act (FLSA) does not require employers to pay for time not worked. However, employee leave laws for holidays, sick leave, jury duty, and bereavement can vary by state. Be sure to understand whether you’re required to pay employees during their time off in each of these circumstances.

     

    Accruing Paid Time Off

    Once you’ve determined how much PTO you want to offer employees, you’ll need to determine how it will be accrued. Will full PTO be given to employees immediately upon being hired? Or will PTO be accrued by the number of hours worked? Additionally, some employers require newly hired employees to wait a set amount of days before being offered PTO. Keep in mind that some states regulate PTO accruals, so it’s best to first check your PTO payout laws first.

     

    How to Create a Paid Time Off Policy

    After hammering out all the details of your PTO offerings, you’ll need to create a written policy detailing:

    • Number of PTO days offered.
    • How PTO will be accrued.
    • How much notice must be given before taking PTO.
    • How much PTO can be taken at a time.
    • How many employees can take off on the same day.
    • How employees will be compensated for any time left on the table in the event an employee quits or is terminated.

    Make sure your PTO policy is documented in your employee handbook and signed by all employees.

     

    Paid Time Off Management

    For many small and mid-size businesses, managing and tracking PTO for each employee can be challenging. As a Professional Employer Organization (PEO), GMS can help with paid time off management. Through our online HR portal, GMS offers a paid time off tracking system to approve PTO requests and track time off. We can also help craft a comprehensive PTO policy and ensure your handbook is updated accordingly to protect your business best.

    In addition, GMS can help save you time and stress by managing key business functions like payroll, human resources, benefits administration, and other important services. Contact us today to request a consultation.

  • Personality tests can be an effective tool in employee recruitment, training, and development. As your business grows and becomes more diverse, a one-size-fits-all approach to employee management won’t work well on a team made up of different personality types. Company leaders will need to have a better understanding of what makes employees tick and how to encourage everyone to play nice in the workplace.

    Managing different personality types in the workplace can present its challenges. As a result, you’ll need to be flexible with your employee management style. Using Deloitte’s Business Chemistry, here’s how to manage employees with these four different personalities.

     Managing different personalities in the workplace.

    How to Manage the “Pioneer”

    Pioneers are the wheels set in motion. You never know when or where their next big idea will come from, but you can be sure they’ll want to give it a try. Business Chemistry describes pioneers as:

    • Outgoing
    • Spontaneous
    • Risk-takers
    • Adaptable
    • Imaginative

    Pioneers are the social butterflies and adventurous spirits in the workplace. When managing this type of employee, it’s important to give them the creative freedom to explore new ideas. They don’t like being confined by rules or structure and may have a hard time focusing on the smaller details of a project, so don’t try to micromanage them.

    Lean on your pioneers to think out-of-the-box and come up with creative new ideas, perhaps in a group brainstorming session, but then shift the project details and execution to your drivers and guardians.

     

    How to Manage the “Driver”

    If pioneers are the wheels, then drivers are the fuel that keeps it going. Ambitious and efficient, drivers are motivated by results and will always rise to meet a challenge. Drivers are described as:

    • Logical
    • Focused
    • Competitive
    • Quantitative
    • Deeply curious

    Drivers are laser-focused and work quickly, so they need to be continuously fed new challenges or they risk getting bored or frustrated by delays or long processes. When you come to them with new assignments, they’ll appreciate clearly defined plans and processes and will work tirelessly to meet and exceed your expectations and goals.

    Because of their workaholic tendencies, drivers may also struggle with work-life balance, as they can easily be consumed by the tasks at hand. Reinforce good habits, like taking lunch breaks, not responding to emails after hours, and delegating tasks when their plate is full.

     

    How to Manage the “Integrator”

    Integrators are best at bringing everyone together. If pioneers are the wheels, drivers are the fuel, then integrators are the ones who makes sure everyone gets a seat in the car. They see the value in workplace culture and understand how it can affect employee happiness and performance. The Integrator is:

    • Diplomatic
    • Empathetic
    • Nonconfrontational
    • Team player
    • Intrinsically motivated

    As intrinsically-motivated employees, integrators thrive when they can really get behind your cause. As a business owner, be sure to clearly define and communicate your company mission. 

    Similar to pioneers, it’s best not to micromanage your integrators. It’s important to show these employees that you trust and respect them, whether it’s allowing them to work remotely or believing in their idea. Finally, when assigning projects, don’t isolate your integrators. They work best in group settings, where they can bounce ideas off one another and play to each other’s strengths.

     

    How to Manage the “Guardian”

    Guardians are the employees who make sure you reach your destination on time and in one piece. They value stability and order and have great attention to detail. According to Business Chemistry, Guardians are:

    • Reserved
    • Detail-oriented
    • Practical
    • Structured
    • Loyal

    Guardians are practical and structured, which means they can easily become impatient with seemingly wacky ideas or meetings that get off topic, but you may not notice.

    Guardians are quiet and reserved, so they may not always speak up in meetings and can be easily forgotten. They need time to process, digest, and formulate a well-thought-out response. When managing this type of employee, it’s best to follow up with them the next day to ask for their thoughts or opinions. Because they’re fiercely loyal to their employers, you know your company’s best interests will be at the heart of all their decisions.

     

    Employee Management Assistance

    While no single workplace personality is “the best,” managing these different workplace personalities can be challenging for business owners and managers. Need assistance? Outsourcing human resources to a professional employer organization (PEO) like Group Management Services (GMS) can help with employee management. From employee recruitment and retention to performance management, GMS can guide you through any issues you’re faced with, while you keep full control of your employees.

    In addition to human resources, GMS offers a full suite of HR services, including payroll, risk management, employee benefits, and more. Contact GMS today to request a consultation.

  • Starting a new business is an exciting endeavor, but it also requires a lot of preparation. Part of this process includes taking measures to make sure the business is set up properly so that you can legally conduct business. Here’s what you need to do to make sure that your new business is ready for success according to federal, state, and local regulations.

    An owner starting a new business that follows state and federal regulations. 

    Register Your Business

    Registration is the first step toward making your business a distinct legal entity. The rules on what you need to do to register your business vary depending on two factors: your location and business structure. 

    State registration

    Depending on where you conduct business, you may only need to register your business name with your state and local government. This can be as simple as providing an entity name to your state and county clerk’s office, along with a Doing Business As (DBA) name if you conduct business under a different term than your personal or entity names. However, a registered agent that will receive official legal documents or other papers is required for any new LLC, corporation, partnership, or nonprofit corporation. This agent must be in the same state as where you register.

    When it comes time to register in your state, you’ll need to provide some basic information and pay a fee. The cost of business registration varies, but it’s typically somewhere around a few hundred dollars. The information you provide typically includes your business name and location, registered agent information (if required), and details on ownership, directors, and management structure. Certain states may also require some additional documents based on your business structure. Per the Small Business Association (SBA), these can include:

    • For LLCs
      • Articles of organization
      • LLC operating agreement
    • For limited partnerships
      • Certificate of limited partnership
      • Limited partnership agreement
    • For limited liability partnerships
      • Certificate of limited liability partnership
      • Limited liability partnership agreement
    • For corporations
      • Articles of incorporation
      • Bylaws of resolutions
      • Number and value of shares

    If you plan to operate in states outside your registered location, you’ll need to file for foreign qualification. This requires filing a Certificate of Authority with the state office in question and paying any related fees. According to Forbes, foreign qualification is required if you can answer “yes” to any of the following questions.

    • Do I have a physical presence (e.g., office space or retail store) in the state?
    • Did I apply for a business license in the state?
    • Do I often conduct face-to-face (not just email/phone/Skype) meetings with clients in the state?
    • Does a substantial chunk of my company’s revenue come from the state?
    • Are any of my employees working in the state? Am I paying state payroll taxes there?

    Federal registration

    Unlike state and local governments, it’s not necessarily required for a business to register with the federal government to be considered a legal entity. However, there are some business statuses that do require federal registration. These include filing form 2553 with the IRS to create an S corporation or registering your business for tax-exempt status for nonprofit corporations.

    While not required, businesses can also register with the federal government for trademark protection. This act can help prevent other businesses from using your trademarked terms – or to help you act in case anyone infringes on your business, brand, or product names. You can start this process by filing to trademark your business name or any other related terms with the U.S. Patent and Trademark Office.

    Follow Tax Requirements

    Once you’ve registered your business, it’s important to make sure your business is set up to meet federal and state tax requirements. While you may not need to federally register your business, it is necessary for most new businesses to file for an Employer Identification Number (EIN) with the IRS. This unique nine-digit number is essentially a federal tax ID that allows you to set up your business’ payroll and identify your business when you send required payroll documents to the IRS and state agencies. Some locations also require businesses to have employer ID numbers for state and local governments as well. 

    In addition, businesses will need to register for an Electronic Federal Tax Payment System (EFTPS) account. This account allows business owners to pay federal taxes online or over the phone. There are also many other steps involved with setting up and handling payroll. To learn more about what it takes to make sure your payroll process is in a good place, check out our detailed guide on how to manage payroll for a small business.

    Obtain Any Necessary Business Permits and Licenses

    Depending on what your business does, you may need to apply and pay for federal or state permits and licenses. According to the SBA, any business that deals with any of the following activities are regulated on the federal level and require special licenses or permits:

    State licenses and permits are dependent on your location. Individual states tend to require permits and licenses for a broader spectrum of business activities than what’s federally required, which can mean you may need to obtain approval to operate in anything from construction to food service. In some cases, such as businesses that manufacture, import, or sell alcohol, you may need to acquire permits or licenses from both federal and state sources. Unfortunately, you’ll need to visit your state’s website to determine which permits and licenses are required and how to apply for any that pertain to your business. 

    Get Business Insurance

    Business insurance isn’t only a way to protect your business, it’s also mandatory in some cases. Federal law requires that every business has workers’ compensation, unemployment, and disability insurance, while some states require additional insurance policies. 

    Another factor is that certain types of businesses may need to carry specific types of insurance. Whether it’s mandated by local laws or you just want to protect your business against potential risks, different types of insurance can include:

    • Product liability insurance for manufacturers, wholesalers, distributors, and retailers
    • Professional liability insurance for service-based businesses
    • Commercial property insurance for businesses with property and/or physical assets
    • Home-based business insurance for businesses run out of the owner’s personal home
    • Business owner’s policy for small business owners looking for bundled coverage

    Prepare Your Business with Professional HR Management

    Opening a new business is a big investment, but it can succeed with the right team behind it. However, the administrative responsibilities of owning a business can dominate your schedule if you don’t have the right people to help you manage your business’ HR processes. That’s where a Professional Employer Organization like GMS can help.

    Every company needs proper HR management, no matter how big or small it is or how long it’s been in business. GMS can partner with you to build a strong HR foundation for your business and give you access to payroll, benefits, and other HR experts who can manage your business’ administrative needs and keep you up to date with any new business laws and regulations. In turn, you can focus your time on whatever it takes to grow your business.

    Ready to build toward a bright future for your business? Contact GMS today to talk to one of our experts about how we can support you and your company.

  • Hiring the right person isn’t an easy task. It’s even harder to do so in a timely fashion. When your business is ready to hire, it benefits you to do so quickly. Not only do long hiring processes cost you time and money, they also delay you from filling a needed role on your team (and that’s not including your onboarding process).

    Every hour spent during the hiring process is an hour taken away from other essential business tasks. However, it’s also vital to recognize that rushing a hire can lead to other costly issues. Settling for a bad fit – or worse, dealing with negligent hiring – will only set your business back even further. Hiring means you need to perform an important balancing act – speed up the hiring process while finding the right candidate.

    While tricky, it’s not impossible to speed up the hiring process without rushing. Here are ways you can streamline your hiring process to get the candidates you need quicker than before.

    A job candidate interview by a company that wants to quickly hire employees. 

    Templatize Your Job Descriptions

    Every job description you write from scratch is extra time and effort you can avoid. Using a consistent format for new postings will not only help you draft descriptions quicker than before, but it can also make them easier to scan for potential applicants. 

    In terms of what format you should use, it can depend on exactly what type of position you need for your business. If you had a past job description that worked out well, you can use that as a base and modify it as necessary. If not, the following format is a good start:

    • Job summary (what it is and why it’s appealing)
    • Qualifications for the ideal candidate (both mandatory and ones that would be beneficial)
    • Company benefits
    • Clear call to action for how to apply and next steps

    From there, you can add in different sections based on what’s important to you and your business. Is company culture a huge part of your hiring process? Include a section about it in the format. You can also fill in specific parts of each description ahead of time, such as specific benefits that would apply to every potential employee. Adding these details to a base template now will only save you time on every description in the future.

    Write Clear Job Descriptions

    While a template will help, it’s important to make sure that your descriptions are specific enough to weed out certain applicants. One way to sidetrack your hiring process is to accidentally attract the wrong types of candidates. It’s important to be very clear about exactly what you want in a potential new employee to clear up any confusion from people who either aren’t right for the job or simply don’t have the qualifications. That means thinking very carefully about the following factors:

    • Which objectives the position should achieve
    • The core skills required to meet these objectives
    • Description of a typical day in the position, including regular duties, occasional tasks, etc.

    By spending a little extra time going into detail about necessary skills and objectives, you can signal to unqualified applicants that the job isn’t right for them. This in turn will save you from going through these applications (and potentially interviewing extra unqualified candidates).

    Be More Selective About the Candidates You Bring in for an Interview

    While a good description can cut out some less satisfactory applicants, you’ll still likely receive some resumes that don’t quite meet your standards. However, some people are tempted to still interview some of these applicants to try and reach a nice, round number of candidates. 

    The problem with this approach is that it’s more important to interview the right candidates instead of trying to hit a quota. If you’re only impressed by two or three candidates, focus on just them instead of hoping that a fringe applicant might exceed expectations. This also applies to people during the first-round interviews as well. If someone isn’t impressive, it’s best not to give them more of your time just because you had hoped for a certain number of finalists. In the end, being discerning will save you hours of wasted time, especially if you have a more rigorous hiring process.

    Cut Out Unnecessary Steps

    Speaking of a rigorous hiring process, try and see if you truly need every step to find the right candidate. The hiring process is different for every company, so you may be able to eliminate some measures that aren’t as important for you.

    A good example of this is the traditional request for references. If you don’t find that much value in talking to a candidate’s references, don’t include it in your process. You could also wait to ask for references for a few key candidates after you’ve interviewed them. This will cut down on the amount of calls you need to make or having to wait for these contacts to respond to your message – and that’s if you decide you need to talk to them at all. Try and identify which steps are really important for your search. If you find some are just there for show, get rid of them and use that time for something else.

    Have a Prepared List of Interview Questions

    Like your job description, it’s good to have a base list of interview questions made ahead of time. This list will make sure you’re asking the right questions every time to quickly see if a candidate is right for your position. It can also help you from going into an interview and asking all your questions off the cuff – nobody wants to accidentally bring up a taboo interview topic that can lead to problems.

    In terms of which questions to include, you’ll want to focus on inquiries that will identify certain skills and behaviors. Monster.com suggests breaking questions down into a few different groups:

    • Icebreakers to build rapport and help candidates relax
    • Traditional questions to gather general information about a candidate’s skills and experience
    • Situational questions to understand what a candidate would do in a specific, relevant situations
    • Behavioral questions to learn about how a candidate handled a past experience.
    • Culture fit questions to gauge whether a candidate would thrive in your workplace environment.

    Consider Group Interviews

    Sometimes, you have openings with several qualified candidates, but it’s hard to devote enough time to give every person a one-on-one interview. Instead of cutting a few promising people because of a time crunch, consider having multiple people participate in one interview at a time. 

    Not only will this create massive time savings, but it also has some interesting advantages. For one, multiple candidates mean that you’ll get different perspectives (and the opportunity to see how other candidates react to those perspectives). In addition, group interviews can help interviewers from getting too comfortable with a candidate. While it’s good to feel relaxed with a candidate, that newfound comfort level can prevent some people from asking some of the tougher questions that will help you gather information. 

    A Better, More Efficient Hiring Process

    When it comes to hiring, you don’t need to choose between hiring quickly or finding the perfect person. By tweaking your approach, you can achieve both goals for your business.

    Need some help streamlining your hiring efforts? Contact GMS today to talk to one of our experts about how we can save you time and money by managing your employee recruitment and onboarding processes.

  • It’s not easy running a business. In trying times, it becomes even harder. Disasters, pandemics, and other events can wreak havoc on your business. While property damage and other issues can be calculated, it’s difficult to measure the impact these events have on a key element of your business – your employees. 

    Difficult times can have a direct impact on your employees both professionally and personally. Supporting them during these times can help ease your employees’ situation, which can both resonate with your workforce and help improve productivity. Here are five steps you can take to make a difficult situation better for you and your employees.

    An employee working from home during a pandemic.

    Frequent, Clear Communication

    During difficult times, a lack of information will only create bigger problems. It’s important to act as a voice of reason, providing a clear sense of what’s going on at the office, what’s expected of employees, and providing comfort as necessary.

    While disasters, pandemics, and other events may create unusual working situations, good communication can help ease concerns and restore some sense of normalcy. Trying times call for straightforward messages that should be supportive and convey both confidence and security. Be open about the situation, tell them how your business will adapt, and make yourself and other company leaders available for questions. You also want to be very specific about next steps for the company. You may not be able to address everyone’s  concerns immediately communicating these next steps can keep everyone on the same page and eliminate confusion that will only lead to other problems.

    In terms of how to communicate these messages, there are a variety of means at your disposal. Certain channels may be more realistic than others depending on the size and nature of your business, but consider using several of these methods to make sure you can reach everyone in your company.

    • Company-wide and department-level emails
    • Posts on company intranet and internet sites
    • Updates on internal communication apps like Slack or HipChat
    • Video meetings through platforms like Zoom or Microsoft Teams
    • Personalized emails or texts
    • Signs posted onsite

    Connect with the Team

    While it’s helpful to let employees know that you or a relevant team leader is available for questions, don’t be afraid to take the first step as well if you see individuals who need help. Check in with your employees to see how they’re doing. Even if there’s no update, it’s good to show employees that they’re not alone and that their input is valued.

    It can also be beneficial to try and connect the rest of your team when separated due to disaster, pandemic, or other unexpected reasons. Video conferencing and group chat technology can help employees keep in contact and feel less isolated, so utilizing these means for business meetings or even social events like work happy hours can help improve morale in trying times.

    Mitigate Risks if Necessary

    While clear communication plays a big role in easing concerns, it’s also important to take any necessary actions as well. This includes taking measures to let your employees know that you’re taking their safety seriously. 

    Mitigating risks can take many different forms depending on the nature of your business. For a pandemic, this could involve providing facemasks, creating hand-washing stations, and adding measures to enforce social distancing. For a disaster, it could mean fixing any property damage and putting in additional safeguards, such as reinforced windows or other preventative means. Safety training can also educate employees on ways to protect themselves while showing your support for their wellbeing.

    Create Flexible Working Situations

    In a time when people may be worried about working in close proximity or need to be closer to their loved ones, a little flexibility can go a long way. If employees are concerned about coming into work, consider letting them work from home if it’s feasible. You could also loosen up restrictions on work hours so that employees could shape their schedules around personal needs. Not only can these accommodations help create a more family-friendly working environment, it can help alleviate anxiety for any concerned employees.

    Don’t Rush a Return to “Normal”

    After an event changes the way you do business, it can be tempting to try and get everything back to normal as soon as possible. However, it’s important not to force the situation until you reach a point where you can return to business as usual. 

    A disaster, pandemic, or some other trying event is a stressful, even traumatizing time for you and your business. Rushing everyone back in the office before you’re ready can lead to unfocused, upset employees who won’t be able to do their jobs appropriately. It’s best to take everything one step at a time until you can finally return to normal working conditions.

    Difficult times make hard choices even harder. Fortunately, you don’t have to navigate through these decisions alone. As a PEO, Group Management Services can take the administrative burden off your shoulders and provide guidance through pandemics, disasters, and other events. Contact GMS today to talk to one of our experts about how we can support both you and your employees.

  • With small businesses still feeling the impact of COVID-19, the New Jersey Economic Development Authority (NJEDA) is attempting to help employers ease their financial burden. Applications for the NJEDA Small Business Emergency Assistance Grant Program may be closed, but the organization still has several other initiatives available for Garden State employers. Here’s a breakdown of some various programs and loans that will be available as of May 18, 2020 or in the near future.

    Small Business fund money for organizations in New Jersey. 

    Direct Loans

    If conventional financing is unavailable, NJEDA may provide loans up to $2 million for fixed assets and $750,000 for working capital. To qualify, a business must commit to create or retain one full-time job for every $65,000 of NJEDA exposure within a two-year period.

    Learn more about NJEDA’s direct loans.

    Micro Business Loan Program

    NJEDA’s Micro Business Loan Program allows for-profit businesses in New Jersey to access up to $50,000 for working capital or to purchase equipment. These loans are available to businesses with annual revenues of less than $1,500,000 in the most current fiscal year and have 10 or fewer full-time employees.

    Learn more about the Micro Business Loan Program.

    Small Business Fund

    If you’re struggling to get bank financing, NJEDA’s Small Business Fund offers some financial resources for creditworthy small, minority-owned, or women-owned businesses. The fund offers loans of up to $500,000 for businesses with up to $3 million in revenue. In addition, these businesses must have operated for at least one full year, while not-for-profits require at least three full years in operation.

    Learn more about the Small Business Fund.

    NJ Entrepreneur Support Program

    NJEDA’s Entrepreneur Support Program is a $5 million program aimed to help out entrepreneurial companies impacted by COVID-19 in the Garden State. The program encourages private sector investors to provide continued capital flows to companies they have provided funding to in the past. To help encourage these continued capital flows, NJEDA will guarantee up to 80 percent of the total investment amount, with a cap of $200,000 per company.

    Learn more about the NJ Entrepreneur Support Program.

    Small Business Emergency Assistance Guarantee Program

    NJEDA’s $10 million Small Business Emergency Assistance Program allows qualifying businesses to access working capital loans NJEDA’s existing Premier Lenders or Premier CDFI programs. The program provides 50 percent guarantees on these – along with waived fees – as long as the business or non-profit organization uses them to cover operating expenses while they were impacted by COVID-19. Each qualifying business or organization is eligible to receive relief up to an NJEDA exposure of $100,000.

    Learn more about the Small Business Emergency Assistance Guarantee Program.

    Emergency Technical Assistance Program

    While not a direct relief fund, NJEDA’s $150,000 Emergency Technical Assistance Program is designed to provide technical assistance to New Jersey-based companies applying for other State and U.S. Small Business Administration programs. NJEDA has partnered with four organizations to offer support through this program:

    • African American Chamber of Commerce of New Jersey (AACCNJ)
    • New Jersey State Veterans Chamber of Commerce
    • Rising Tide Capital
    • Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ)

    As part of the program, the above organizations provide application assistance in a variety of ways, including preparing financial information, packaging application documentation, and other aid. In turn, these organizations will be based on completed and submitted SBA applications for the businesses they’ve helped.

    Learn more about the Emergency Technical Assistance Program.

    —

    Trying to navigate through these uncertain financial times? Contact GMS to talk to one of our experts about any HR, payroll, or other important questions you have today.