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  • As a business leader or as the owner of your own business, I’m sure you already know about the changes to the I-9 form that have come around in time for its 30th anniversary. Unfortunately, in my travels as a sales representative for GMS, I often run into business owners who don’t know what an I-9 form is, let alone if they’re filed properly.

    Image of a business going through I-9 compliance. Contact GMS today about business compliance.

    Explaining the I-9 Form

    According to the Website of the Department of Homeland Security, “Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.” This is also a form that causes a lot of unnecessary regulatory and financial headaches to businesses.

    According to a newsletter recently put out by HR Specialist and its LEAP (Labor and Employment Law Advanced Practices) Letter, “Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.” A big reason for this was a new audit initiative put out by the Obama Administration in 2009, to crack down on employers who violate immigration laws.

    Maintaining I-9 Form Compliance

    Those fines can be steep and violations can be simple. According to that same newsletter, “The U.S. Immigration and Customs Enforcement agency (ICE) recently slapped a California-based production company with the single largest fine ever for Form I-9 paperwork violations. The $605,250 fine was for violations on more than 800 different I-9 forms. The company’s biggest mistake: a repeated failure to sign Section 2 of the form.”

    If you’re concerned where you stand with compliancy on your I-9 forms or just need help to get your business compliant with all government regulations, known and unknown, there are steps you can take. You can talk with your attorney or you can do what more and more small businesses are doing and speak with a Professional Employer Organization like GMS about I-9 compliance. Contact GMS today about how we can help you stay compliant and make your business simpler, safer, and stronger.

  • According to Career Builder, 43 percent of businesses check out the social media profiles of potential job candidates to learn more about them. Job interviews can tell you a lot about a candidate, but social media can provide some more information that you may not have been able to find out in a meeting.

    Watching for Social Media Red Flags

    When you’re planning on adding someone to your team, you want to know just what type of person you’re hiring. Social media can show off a whole new side of a person – and it’s not always good. Some red flags that you can find on social media include:

    • Inappropriate photos or messages
    • Bad mouthing their current or past employer
    • Discriminatory messages or comments
    • Evidence of potential illegal activity

    In this day and age, candidates should know that potential employers might be looking through their social media profiles. If they can’t stop themselves from posting those embarrassing photos or that offensive status from a personal account, what’s to stop them from making the same bad decision at work?

    Signs of a Good Candidate

    Warning signs aren’t the only things you can find on social media. A job candidate’s social media profiles can help you get a sense of their personality and what they’re like outside of an office setting.

    If they run a professional, updated profile on LinkedIn, it’s a sign that they are serious about their career. Facebook and Twitter can also serve as a means of information outside of looking for red flags. Social profiles can help you verify some information that the candidate may have given you. Even better, social media helps you figure out a candidate’s personality, allowing you to get a sense of if he or she might be a good fit for your company’s culture. 

    Hire the Right People for Your Company

    You need more than just the right resume for your team; you need the right person. GMS has experts that can help your company with employee recruiting and training services, letting you find the right candidate for your open position. Contact us today to learn more about how GMS can benefit your business.

  • In the recruiting world we have heard it all before… 

    • “I don’t want to post a compensation range because everyone will expect the high end.” 
    • “I don’t want my current employees to know what others are paid.”
    • “I don’t want my competitors to know our salaries.”
    • “Other postings online do not include a compensation range, so why should I?”

    Although these are common thoughts for all business owners, it can be directly affecting your candidate pool numbers. In fact, SMART Recruit Online found that job advertisements with a compensation listed increased the total number of candidates by 30 percent. Small and mid-sized companies are at a disadvantage by not posting a wage since larger companies have known salary and hourly rates.

    Image of a job interview. Listing compensations ranges can help businesses with employee recruitment.

    The Benefits of Listing a Compensation Range

    If you post a compensation range, then you are more likely to attract candidates not yet earning your listed range. When it comes time for an interview and compensation negotiations, you will have more opportunity to agree upon a reasonable pay based on the candidate’s experience. When posting a pay range, adding text like “commensurate with experience” will give applicants a realistic idea of what pay relates to them.  

    In fact, wide pay ranges can lead to more applicants in different stages of their career. If you have an open position in a field with a struggling work force, then a range with a low and high end will allow more room for trainable new hires. You will be able to weigh your options when deciding if you want to hire based on experience and commit time and effort into training.   

    According to a study by Ongig, the average candidate spends approximately 55 seconds viewing text ads. Only seconds determine if you will grab a candidate’s attention. Having the most important information in your ad can make or break your chances of receiving applicants. Not to mention, you will waste less time getting your applicants all the way to the interview stage to learn that they are out of your pay range.

    Score Top Talent at the Right Price

    Group Management Services offers national and local compensation studies for businesses looking to hire. We also provide interview and compensation negotiation coaching so that you score the top talent at the right price. Our recruitment staff is able to create custom job ads based on your needs and other effective recruiting strategies. Contact GMS today for more information about how our employee training and recruiting services can help you find the right employees. 

  • Update: Federal judge blocks overtime rules a week before they take effect. Learn more in our new post.

    As a small business owner, it is crucial that you stay current on the latest government regulations affecting your business and employees. Effective Dec. 1, 2016, the salary threshold for overtime eligibility will increase from $23,660 to $47,476. This means that anyone earning a salary under the new threshold will now be eligible for overtime pay for any time worked beyond 40 hours in a week. 

    The Department of Labor estimates there will be approximately 4.2 million workers affected who will now be eligible for overtime. Business owners must reevaluate their current workforce to meet the new requirements. The Department of Labor will automatically update the salary threshold every 3 years moving forward to match the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region. 

    Image of an employer worried about the new overtime rules.

    Options for Employers Affected by the New Overtime Rules

    Employers will be faced with difficult decisions moving forward. Simply limiting employees to 40 hours or paying newly eligible employees time-and-a-half for overtime is not feasible for most business owners. 

    One option would be to raise the wage of workers who are close to the threshold to avoid having to pay overtime. For example, if Frank works a manufacturing job at a salary of $45,000, his employer may give him a raise over the threshold knowing that Frank consistently works over 40 hours every week. 

    Another alternative is to lower the salary of newly eligible overtime employees to account for the overtime you will now be required to pay. The problem is that employees will obviously not respond well to a decrease in pay. Furthermore, employers may see decreased productivity in employees now seeking an increase in overtime hours in order to compensate for their lower pay. Beyond that, this employee will now be required to punch a clock, losing the sense of accomplishment as a salaried employee. 

    According to a survey of HR professionals by the Society for Human Resource Management (SHRM), “67 percent said that, if the proposed regulation lead to an increase in eligibility for overtime pay, it was likely that employees would have decreased flexibility and autonomy.” 

    Employers who once provided employees the freedom to leave early and complete tasks from home, will now be forced to strictly monitor any work activity to conform to the new regulations. According to the Department of Labor, employers who do not comply will face steep consequences, with penalties of up to $1,100 per violation.

    Keep Track of Overtime with a PEO

    This new law is just one in a line of ever-evolving labor regulations that small business owners face every day. Contact GMS today and let us show you how our integrated HR system uses your payroll data to track hours and wages in order to keep your company compliant. That way we can take on the liability while you focus on growing your business!

  • Whether your company is growing or you are simply filling an open position, the hiring process can be painstaking for any business owner. Where do you start? Should you post a listing to online job sites? Should you place ads around the local university? Do you set up a booth at a job fair?

    Hiring the right people is not an easy task. It can be a lengthy process that takes away from other priorities, like growing your business. It takes an average of 52 days to fill an open position, according to a recruitment study from Bersin by Deloitte.

    Image of an employee interview. GMS helps businesses with employee retention and hiring decisions.

    The Right Candidate

    Let’s imagine that you have a new opening. The job has been posted and now it’s time for an interview. The candidate shows up early. They look sharp. Their resume shows experience where you need it. They have all the right answers. You make the offer and they accept.

    A month later, you now see an entirely different person showing up at the office. They come in late. They miss deadlines. Your business is now struggling because you’re not getting the work you expected. The U.S. Department of Labor and Statistics notes that the average cost of a bad hire can equal 30 percent of that employee’s first year potential earnings. 

    Whether it’s an employee that develops a bad attitude affecting the general morale, or a person that simply doesn’t meet and exceed the expectations of their position, the effects of a bad hire can be devastating to a small business.

    Employer Liability

    In the end, the person you choose now represents you and your business. As an employer, if you fail to exercise due diligence and someone is harmed by a person you employ, you can expect a lawsuit.

    Accusations of negligent hiring can have lasting consequences. Employers have lost more than 79 percent of negligent hiring cases with settlements of $1 million on average. That is why it is so important to do a thorough background check on job candidates, making the hiring process that much more laborious. 

    Employee Retention

    Once you hire the right person, you want to keep them to avoid having to start the never ending hiring process all over again. A study performed by The Society for Human Resource Management, showed that it costs 6 to 9 months’ salary on average to replace an employee over retaining that person. Between interviewing, screening, onboarding, training cost, errors, and loss of productivity, the process can take a financial toll on small business.

    GMS is a professional employer organization that offers consultation on techniques to aid in employee retention. We can help you retain an engaged and enthusiastic workforce through the use of team building activities, rewards programs, incentives, survey tools, and more.

    We are here to help manage the administrative burdens associated with all aspects of the employee life cycle. You retain full control over hiring decisions – we just make it easier.

    Contact GMS today to learn more about our services and how we can make your business simpler, safer, and stronger.

  • Whether you’re an employer who runs a pretty safe workplace or you’re one with more than its fair share of worker’s comp claims, the Department of Labor has some new rules for you to “nudge” you in the proper direction.

    Under a new rule from the Occupational Safety and Health Administration (OSHA), there is an effort to modernize its data collection and create a new database for investors and workers alike to learn about how safe a company is. Not a bad idea, but one that leans heavily on small business’ HR departments. 

    Image of a hard hat. Learn how OSHA’s new fasety datatbase rule can affect businesses.

    How OSHA’s New Rule Will Impact HR Departments

    Small businesses with more than 10 employees already are required to track injuries at work for OSHA purposes, but it has now gotten a little more transparent. According to Insurance Business America, the data gathered from this will be posted on OSHA’s website for the world to see.

    The purpose for this is to shine the public eye on businesses without a particularly clean record. “‘Since high injury rates are a sign of poor management, no employer wants to be seen publicly as operating a dangerous workplace,’ said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. ‘Our new reporting requirements will ‘nudge’ employers to prevent worker injuries and illnesses to demonstrate to investors, job seekers, customers, and the public that they operate safe and well-managed facilities. Access to injury data will also help OSHA better target our compliance assistance and enforcement resources at establishments where workers are at greatest risk, and enable ‘big data’ researchers to apply their skills to making workplaces safer.’”

    In larger companies, these things are typically handled by the HR department in conjunction with the company’s safety manager or risk department. Small employers, of course, rely on the business owner to navigate the insurance world with the help of their brokers or third party administrators, giving them access to a lot of info about their company. At best, that’s all you need. At worst, there may be an additional cost to bring in outside consultants to do safety inspections and audits.

    Working with a Professional Employer Organization

    If this new rule is something that concerns you, you have options. One of which is to of course reach out to a Professional Employer Organization (PEO) like GMS about making your company’s HR simpler, safer, and stronger.  Contact us today to learn more about how we can help your business.

  • An unexpected departure from an employee can leave owners in a tight bind. Recruiting and hiring a new employee is a big undertaking for any company. Just like employee separation, the replacement process can cost your company a lot of time and money.

    Image of a job interview. Learn about the costs of employee replacement.

    The Costs of Employee Replacement

    Employees leave companies for any number of reasons. No matter the situation, their replacement won’t be cheap. In fact, it can cost up to 50 percent of an entry-level employee’s annual salary to find a replacement. That percentage goes even higher for employees with more experience.

    Replacing one employee can be costly enough. Hitting a period where you have multiple employees leave around the same time can really hurt the company coffers. Just a few departing employees can potentially mean hundreds of thousands of dollars in replacement costs.

    Why Replacement Takes Time

    Even if you’re looking to replace someone quickly, it’s important to try and find the right person for the job. That means spending time to go through the hiring process. Necessary but time-consuming replacement costs during this time include:

    • Recruiting applicants
    • Entrance interviews
    • Employment Testing
    • Pre-employment administrative expenses
    • Medical exams, drug testing, background checks
    • Training costs

    Making a rushed hiring decision can end up hurting you in the long run. Think of the time you spend during the replacement process as an investment in your future. Sure, a person might be able to fill a role right away, but unless you take the time to make sure that they have the right skills and are a good cultural fit for your office, you might end up having to replace them sooner than you’d like.

    Employee Management

    Recruiting and replacement takes time, and sometimes you just don’t have much time to give. Teaming up with a Professional Employer Organization like Group Management Services can allow your company to spend the time necessary to recruit, train, and retain new employees.

    At GMS, we’re in the business of making your business simpler, safer, and stronger. Contact us today to see how we can help with your recruiting needs.

  • Creating a startup venture is no easy task. Startups come in all shapes, sizes, and industries. Neil Blumenthal, cofounder and co-CEO of Warby Parker summarizes it best, saying, “A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed.”

    According to Small Business Trends, almost half of small businesses don’t make it past the fourth year. These companies still aren’t in the clear, as Forbes estimates that the overall failure rate for startups falls between 80 and 90 percent.

    Image of a startup company in need of help from a Professional Employer Organization.

    Why Startups Fail

    There is a myriad of reasons as to why these companies fail. Whether it’s due to putting out a product too early, not having enough capital, or simply being unable to keep up with the status quo, the statistics show that the odds are against these entrepreneurs. One of the often overlooked aspects of running a startup business is the human resources function, which can present many challenges, such as hiring and retention, employee training, safety, payroll, and benefits.

    How Startups Can Succeed

    There are many factors that contribute to the success of a startup. In his TED Talk, Bill Gross, founder of startup studio Idea Lab, attributes it largely to timing. Whether the world isn’t ready for it, the timing is just right, or you’re too late to the game, Gross says, “Timing accounted for 42 percent of the difference between success and failure.” Additionally, solid finances and great execution (which could be anything from product marketing to internal processes) can contribute to a businesses’ success and longevity.

    A Professional Employer Organization (PEO) can help startups develop critical hiring and retention practices, offload the burden of administrative tasks like payroll, and offer benefits in a cost-effective manner. The National Association of Professional Employer Organizations (NAPEO) found that businesses working with a PEO:

    • Grow 7 to 9 percent faster.
    • Are 50 percent less likely to go out of business.

    PEOs provide a number of services to help manage payroll, taxes, human resources, employee benefits, and more. Here’s how startups can benefit by working with a PEO:

    Recruitment

    As your startup grows, it can be hard to find the right people. According to CareerBuilder, the average cost of a bad hire can be as high as $15,000. Bad hires are typically made from rushing the interview process, lacking adequate talent acquisition tools, and failing to conduct background checks. 

    A PEO can offer guidance and resources for hiring, from creating and posting job ads to reviewing resumes. PEOs can do all the legwork to streamline the recruiting process and attract quality candidates.

    Retention

    Working for a startup can often mean long hours, which can lead to increased burnout and turnover. Especially when benefits packages are lacking or paychecks aren’t delivered on time, good employees may look elsewhere for better work/life balance, benefits, or job security. The aforementioned CareerBuilder survey found that the average cost of losing a quality employee is nearly $30,000. 

    Providing attractive benefits, building rewards programs, and implementing employee feedback tools are just a couple ways PEOs can help startups retain top talent. In fact, NAPEO found that those that do work with a PEO, experience a 10 to 14 percent lower employee turnover.

    Standards

    It’s often challenging for business owners to develop HR policies from scratch. In the early stages, many startups will even employ a “too small to matter” mindset, believing they can handle issues as they arise. The problem, though, is that when problems do—and they will—arise, employees and managers have no place to turn when they need a standard for business conduct.

    A PEO can help startups create employee handbooks and set employee expectations. Having good policies in place can help establish a positive company culture where employees understand expectations and feel comfortable addressing any problems they may be facing. In fact, a study by the University of Warwick found that happy employees are 12 percent more productive.

    Payroll

    For startups, managing payroll and filing taxes can be a time-consuming and challenging task. Between income types, deductions, contributions, and of course taxes, payroll can be tricky to comprehend.

    That’s where working with a PEO can provide value to both startup founders and their employees. PEOs can provide access to payroll software to streamline the payroll process, ensure payroll is delivered on time, simplify time tracking, and eliminate payroll mistakes. Payroll tax management also helps reduce tax liabilities and responsibilities.

    Compliance

    From misclassifying employees as contractors to offering workers shares in lieu of pay, it’s not uncommon for startups to violate federal regulations, even without intent. According to the IRS, 40 percent of small businesses incur an average of $845 in penalties each year.

    To minimize liability and keep up with extensive governmental regulations, a PEO can help startups stay compliant. PEOs offer assistance with payroll taxes by managing records, filing state and federal taxes, and issuing forms like 940, 941, W-2, and W-3s.

    Benefits

    Good employee benefits are essential to attracting and retaining top talent, yet the cost of providing benefits can be extremely costly to startup businesses. A survey by the Society for Human Resources Management (SHRM) found that 92 percent of employees find benefits important to their overall job satisfaction, with nearly a third citing employee benefits as a reason to stay or leave their current positions.

    A PEO can offer startups more cost-effective benefits packages by leveraging the power of group health coverage. Not to mention, PEOs can offer more comprehensive coverage, including supplemental insurance, retirement savings plans, wellness programs, and more.

    Work With a PEO

    Outsourcing your company’s HR responsibilities to a PEO like Group Management Services can save time and money, while allowing you to focus on growing your business. After all, you likely didn’t venture out to become an HR expert.

    GMS offers payroll, human resources, employee benefits, and risk management services to help your startup succeed. With our proven history, easy-to-use online payroll portal, and dedicated team of experts, GMS is proud to take on your administrative burdens. When you work with us, you can put your focus back on client relationships, building an effective team, and growing your profits, while we help you reduce costs, limit risk, and save time and money.

    Ready to work with a best-in class PEO? Contact GMS today to talk with one of our experts to see how we can make your startup business simpler, safer, and stronger.

  • A federal judge has blocked the upcoming Department of Labor (DOL) overtime rule instituted by the Obama Administration. The rule was set to take effect Dec. 1, 2016, increasing the salary threshold for overtime eligibility from $23,660 to $47,476. This would have made any workers under the threshold eligible for overtime pay for over 40 hours worked per week. 

    Image of a judge. Read about how a federal judge has blocked the new overtime rules.

    According to Reuters, “U.S. District Judge Amos Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, that the rule is unlawful and granted their motion for a nationwide injunction.”

    The group was granted a nationwide preliminary injunction, meaning they were able to prove that the law would cause “irreparable harm” to employers.

    “The judge said the Labor Department regulation exceeded the authority granted it by Congress, which he said gave Labor the right to define which workers are considered salaried but only based on the duties they performed, not by how much they made,” according to The Washington Times. 

    The DOL estimated there would have been approximately 4.2 million workers affected by the new law. Business owners would have been forced to reevaluate their current workforce to meet the requirements. 

    The Labor Department issued a statement regarding the decision stating, “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans.”

    The DOL has the ability to appeal this decision, but the incoming administration can then drop any appeal of the ruling.

    One way employers can assure they are keeping up with any changes to the law or other upcoming legislation is by working with a Professional Employer Organization like Group Management Services. We take on the administrative burden, so you can focus on what matters. Contact us today to learn more.

  • You’re likely familiar with the saying, “If it ain’t broke, don’t fix it.” While this mindset can be beneficial in some areas of your business, it doesn’t quite fit when it comes to HR processes and policies. The landscape of federal, state, and local regulations is constantly evolving. Sticking to your status quo, even if it once met legislative requirements, could leave you non-compliant and expose your business to potential risks.

    In addition, technology advances quickly, and the systems that once seemed to streamline your operations might now hinder your efficiency or create unnecessary headaches for you and your team. This is where professional employer organizations (PEOs) can be of use. PEOs offer several advantages, particularly to small and medium-sized enterprises (SMEs) who may need more comprehensive in-house HR, payroll, compliance, and employee benefits management resources.

    While the temptation to stick with what’s familiar is understandable, embracing change, especially in HR, can significantly elevate your business’s efficiency and compliance. Partnering with a PEO can transform your HR department from a purely administrative function to a strategic asset. By offloading the administrative burdens that come with HR, you and your team can refocus on core business strategies and growth initiatives.

    The Benefits Of Partnering With A PEO

    PEOs can often provide services at a lower cost than if you were to handle these functions in-house. By pooling together employees from multiple companies, PEOs achieve economies of scale, allowing them to negotiate better rates for health insurance, workers’ compensation, and other benefits for your team. Often, these benefits are on par with Fortune 500-level companies and can assist with your recruitment and retention efforts. In addition, partnering with a PEO can help:

    • Ensure compliance: PEOs employ professionals with expertise in HR, benefits, payroll, tax compliance, and risk management. Partnering with a PEO gives you access to these experts, who can be invaluable for making informed decisions about your workforce and business strategy, all while ensuring your compliance with federal and local regulations.
    • Offer HR management and support: PEOs provide comprehensive HR services, including recruitment, onboarding, performance management, and employee termination. This support can relieve your internal team of these duties, allowing them to focus on other areas of your business.
    • Boost employee performance and satisfaction: Employees often experience better HR support with PEOs as they can offer more timely resolution of issues and access to a broader range of benefits. This can lead to increased employee satisfaction and productivity.
    • Provide flexibility for growth: As your business grows, a PEO can quickly scale its services to accommodate new employees, enter new markets, or adjust to changes in your business model. This flexibility is particularly beneficial for rapidly growing companies that need to focus on scaling operations without being bogged down by administrative tasks.

    According to the National Associations of Professional Employer Organizations (NAPEO), businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business. While the temptation to “stay with what’s familiar” may be strong, today’s business landscape demands agility and a proactive approach to HR management.

    By partnering with a PEO, you not only safeguard your business against compliance risks but also position it to thrive in an ever-changing market. This strategic move can be the difference between merely surviving and truly flourishing in your industry.

    Partnering With A PEO

    While partnering with a PEO might sound like a good decision, you might still be concerned about what that partnership actually means. When you start working with a PEO, you enter a co-employment agreement; this essentially allows the PEO to handle your payroll and benefits. However, you remain in complete control of your business, managing the day-to-day and making all the critical decisions related to your company.

    While PEOs speed up and streamline the hiring process by finding qualified candidates for you to meet, at the end of the day, you choose who joins your team. Your relationship with a PEO is designed to be collaborative. The co-employment model used by PEOs does not diminish your authority or ability to manage your team. Instead, it provides a support structure, enhancing your capabilities to focus on other business areas.

    Embrace Change With GMS

    Getting started with a PEO can feel daunting, but GMS makes it easy. Today, business owners need to be compliant with a multitude of regulations in regard to:

    Whether you’re seeking support in one specific area or need comprehensive assistance across all these critical functions, GMS stands ready to elevate your business. Our team of experts is dedicated to making your operations smoother, ensuring your workplace is safer, and fortifying your company against the challenges of tomorrow. Don’t let the complexity of HR and compliance slow you down.

    Contact us today to discover how we can transform your business into a simpler, safer, and stronger entity. Let us take the burden off your shoulders so you can focus on what you do best—growing your business.