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  • We’re happy to announce that this week, Group Management Services (GMS), received the Weatherhead 100 award in recognition as one of Northeast Ohio’s fastest growing companies. From 2008 through 2012, GMS experienced a 55.5% growth in sales, making us the largest Ohio-based professional employer organization. The Weatherhead 100 award is given to companies whose net sales grew from at least $100,000 to over $1 million in the last five years and employed a minimum of 16 people full-time in 2012. 

     

     

    Mike Kahoe founded Group Management Services in 1996 and has built the company into an industry and regional leader with over $30 million in revenue. An 8-time Weatherhead recipient, GMS services over 800 clients in 42 states.  With over 90% of our clients renewing their contracts each year, our administrative outsourcing services touch the lives of more than 14,000 employees.

    As a professional employer organization, GMS helps small and medium sized business owners focus on what matters most – growing their business. With GMS, business owners can eliminate the time and costly resources dedicated to administrative duties such as:

    • Human Resources
    • Payroll & Tax Services
    • Benefits
    • Risk Management

    Group Management Services has continually expanded its services for small and medium sized business and in 2013, launched Group Captive Management, a self-insured captive insurance company. To enhance their third-party administration services, GMS merged Ogden Benefits Administration, Employee Benefit Concepts and Variable Protection Administrators into their offerings this year. 

    The Weatherhead School of Management has been recognizing the region’s fastest growing companies for more than 25 years. The Weatherhead 100 awards were established to celebrate the entrepreneurial spirit of Northeast Ohio and to recognize those companies which serve as leaders to all the region’s businesses. 

  • Ahhhh—feel the ocean breeze blowing through your hair, your toes digging into the sand, and the cool drink in your hand. Your computer is nowhere in sight. That’s right, you’re on vacation!

    As an employee, taking time off is important. It keeps you focused, gives you a break and lets you spend some quality time with your family or friends. As a company, administering a paid time off (PTO) policy is also important, and much less relaxing than taking the time off. 

    With traditional PTO and sick time plans, your company is trying define and limit the liability of paying an employee for time they didn’t work. Sounds simple. 

    But how do you keep track of it all? Without a streamlined system it can be easy to miscalculate PTO for your employees. Miscalculations mean lost money for your company. According to a 2010 survey by Kronos conducted with Mercer, poorly planned absences cost U.S. organizations over 8% of their payroll each year.

    GMS PEO services can help effectively manage PTO for your compnay company. Go ahead, take a vacation! “Walking in sugary white sand on #AmericasBestBeaches” by Visit St.Pete/Clearwater is licensed under CC BY 2.0

    What can your business do to effectively manage PTO?

    Maybe you’ve seen that some companies offer unlimited vacation days, or an “open” vacation policy. This may be an option for some companies, but it requires a high level of trust and accountability between employees and managers, and would still require planning for coverage of the absent employee. It also brings into question state requirements about reimbursement for unused PTO if an employee were to leave a company. This clearly isn’t a solution for everyone. 

    A better option is to look to a professional employer organization (PEO) to outsource human resource (HR) functions, including management of PTO. 

    Online HR Portal Available 24/7 

    If you’re nervous that outsourcing HR functions like PTO means you have less control over your business, you’re not alone. In reality, though, the opposite is true. GMS actually gives you stronger control. 

    How? We store all the information that you and your employees need so you can have a centralized place to measure, track and review critical HR information 24 hours a day, including, but not limited to:

    • Time off requests
    • Performance reviews
    • Job descriptions
    • Employee handbooks
    • Company communication
    Talk with GMS to learn more. Once we’ve had the chance to talk, we’re pretty sure the only question you’ll have is what you can do with time you used to spend keeping track of your employees’ PTO.
     
    We suggest taking a vacation—you deserve it.

    Photo Credit: ““Walking in sugary white sand on #AmericasBestBeaches” by Visit St.Pete/Clearwater is licensed under CC BY 2.0

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

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

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

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

    HR Needs for Small Businesses

    Payroll

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

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

    Hiring and Firing

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

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

    Risk Management

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

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

    Benefits

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

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

    Find the Right HR Option for Your Small Business

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

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

  • Running a business comes with more responsibility than most people realize. The administrative requirements to stay compliant while growing a successful business can overwhelm most. Some business owners will hire office managers, an HR generalist, interns, etc., but some completely put off the HR needs of their company. This can cause major issues down the line with compliance issues, payroll dilemmas, job description disputes, and the list goes on.

    The Professional Employer Organization (PEO) industry exists to help business owners outsource their back-office functions to focus on the real reason they developed their company, which is to generate revenue. 

    A happy small business owner who outsources key business functions to a PEO. 

    Five Indicators That it Might be Time to Partner with a PEO

    The administrative functions of running your business have become overwhelming

    If you’re trying to find more hours in the day for you and your staff, using a PEO may be a good way for you to free up time. Many growing businesses find it hard to maintain efficient administrative processes as they expand. GMS can help streamline the payroll process, handle compliance issues, assist with employee recruitment, provide salary analysis, and much more.

    You aren’t 100 percent confident that your business is compliant with State and Federal regulations

    Face it, the business of being a business owner has become more and more complicated with rising costs and liabilities of having employees. Just through the Affordable Care Act alone, there have been about 900 new regulations enacted in recent years. Are you aware of all the changes? GMS provides the HR expertise with a designated and certified account manager attached to an HRIS platform to ensure compliance with all federal and state employment regulations.

    You lack the financial resources to develop a full HR department

    Building an HR department can be time-consuming and expensive. The median salary for a Human Resource Manager is $110,112 per the Bureau of Labor Statistics. Depending on the need, an in-house department can involve hiring an HR Director, using a payroll company, securing an EPLI policy, paying a 401(k) audit fee, and paying attorney fees, all of which can add up quickly. GMS can often provide a broad array of services and qualified experts without having to hire internally.

    You want to focus more on the growth of your business

    Outsourcing the daily administrative aspects of running your business frees you up to focus your attention on growing your business. You retain full control over decision-making, employee responsibilities, core job functions and requirements, hiring decisions, and the structure of your organization. While GMS can offer input in these areas, you remain in control of all final decisions. This is the foundation of the co-employment relationship that GMS creates with its clients.

    You’re in a high-risk industry

    Small businesses can be paralyzed by compliance requirements with labor laws, tax reporting, and workers’ compensation insurance. The list of acronyms – like FSLA, FMLA, EEOC, HIPPA, PPACA, FUTA, and SUTA – are enough to cover the entire alphabet while overwhelming any business owner. If you have employees, you must provide them with workers’ compensation insurance that will pay wages and medical expenses in the event of hours lost because of workplace injuries. By partnering with a PEO, you can rest assured that your business and your employees are protected.

    Ease Your Workload and Strengthen Your Business at the Same Time with a PEO 

    Businesses are created from a passion, and that passion doesn’t usually include handling all the administrative functions required to keep your business running. GMS takes those burdens off the business owner, so they can focus on the core functions of their business. Contact us today to see how we can make your business simpler, safer, and stronger!

  • In the 12 years that I’ve been working for GMS, I’ve met with thousands of business owners in hundreds of industries. While every company has their unique problems and issues, some issues tend to be universal.  In the 26 years that GMS has been in business, we have found that most business owners… 

    • Think they’re paying too much in worker’s compensation premiums and not getting enough in return for it.
    • Want to offer their employees great health insurance, but don’t want to pay the ridiculous premiums being charged.
    • Don’t fight their unemployment claims because “it’s just not worth it and they’re going to get it anyway.”
    • Hate the stupid bureaucratic paperwork they have to go through, keeping them from more important tasks.
    • Have trouble finding good employees.
    • Have a hard time keeping them when they do find them because they’re losing them to other companies with better wages and benefits.

    Did I miss anything?

    A small business growing with the help of a PEO serving as an outsourced HR department. 

    Why Do Big Competitors Have an Advantage?

    So now, small business owners often compete against bigger companies and are at a distinct disadvantage. Why? Because large companies tend to have a few things that small businesses don’t:

    • A payroll department that pays the employees, takes care of their W-2s, does all their quarterly filings, etc.
    • An internal benefits department that gets the best rates for them on their ancillary benefits and 401k, and is more often than not, self-insured for their healthcare, giving them the data they need to better manage their benefits and control those costs.
    • An internal risk department that manages all their workers’ comp and unemployment claims and has the legal power to contest claims that they feel are fraudulent.
    • An HR department that handles the entire lifecycle of an employee from the recruiting, either done internally or through a service, onboarding, training, and eventual separation by departure or retirement.

    How You Can Compete

    Fortunately, there are measures you can take to stand with the competition. If you’re like most companies your size, you can:

    • Hire an accountant or a payroll service to handle your payroll.
    • Use a broker for your benefits and rely on your accountant or financial advisor to set you up with the best possible retirement plan option.
    • Sign up with a TPA or insurance broker to manage your worker’s comp, hoping for the best possible discount and then pray you don’t lose it.
    • Waste your time fighting unemployment claims, or worse yet, don’t contest them at all.
    • Use a recruiter, word of mouth or a sign in your front yard trying to find help and then hope that you’re doing all the right things from a regulatory standpoint.

    Well, that’s why the PEO industry, Professional Employer Organization, was created back in the 1970s and has grown to a $176 billion industry and why GMS is rapidly becoming one of the largest PEOs in the country. By acting as an outsourced HR department, our clients get all the same benefits of a large company and you can get:  

    • An internal payroll department that takes on all the tax liability of your employees.
    • A benefits department that can get you the best rates and possibly even into a self-insured healthcare plan with minimal risk. You also have the option of a 401k plan that is low cost and relieves you of fiduciary responsibility.
    • A risk management department that is self-insured for worker’s comp, providing better rates as well as complimentary legal service on all claims, both for worker’s comp and unemployment.
    • An HR department that handles everything from the onboarding of employees to termination and everything in between as well as keeping you compliant with all government regulations.

    The best part is that you’re getting all these specialists for less than it would cost you to hire one of them in even a part-time capacity. At its basic level, a PEO consolidates your vendors, increases your buying power, and provides HR support and recruiting assistance to help you in that growth. How do we do that? Through the PEO relationship.

    We partner with our clients and mutually share or co-employ our clients’ employees. By adding their employees to our PEO, GMS is a 26,000-employee company that has the leverage to be self-insured for our worker’s comp and healthcare and get better rates on everything from 401k to vision, dental, life, disability, drug testing, background checks, etc.  Virtually everything necessary for employee management.

    Contact GMS today to talk to one of our experts about what we can do to level the playing field for your business.

  • Running a business is no easy task. Not only do you have to focus on how to build your business, you also have to manage all the administrative efforts it takes to handle payroll, benefits, and other complex business functions. 

    Fortunately, there are ways for business owners to ease these administrative burdens. Human resources outsourcing organizations like Professional Employer Organizations (PEO) and Administrative Services Organizations (ASO) can help owners manage these crucial tasks. Of course, both types of organizations have key differences that can impact which option is best for you and your business. Let’s break down the differences between a PEO and ASO.

    A small business owner deciding between a PEO and an ASO. 

    PEO vs. ASO

    Both PEOs and ASOs are HR outsourcing organizations that can help business owners focus on money-making tasks instead of spending their time on administrative activities. However, PEOs and ASOs differ greatly in terms of service offerings and the way they approach HR management.

    What is a PEO?

    A Professional Employer Organization (PEO) partners with employers to provide a wide range of HR outsourcing services. Business owners can utilize PEOs for a full suite of services like payroll, tax administration, HR, benefits, and risk management or opt to use them for individual services like payroll.

    One of the unique aspects of working with a PEO is the co-employment relationship between your business, your PEO, and your employees. In this relationship, the PEO serves as the “employer of record.” You maintain full control of your employees, but the PEO can take care of managing your administrative functions and keep your business up-to-date with and new regulations and other concerns. 

    This arrangement is also beneficial for tax and insurance purposes. Not only does the PEO assume some of your compliance risks, you can also take advantage of the features like the PEO’s unemployment rates and claims, master plans for group health insurance, and other perks you can’t receive without co-employment. The PEO can also gives you access to tools and experts who can make it easier for you and your employees to access key payroll, benefits, and other HR information. 

    What is an ASO?

    As with PEOs, ASOs can offer a range of HR services for businesses in need of administrative assistance, although they typically don’t handle benefits coverage or workers’ compensation as often as PEOs. 

    ASOs also don’t engage in co-employment. This means the business is still the employer of record. This arrangement means that the business is liable for their own payroll taxes, claims, and state unemployment rates. For example, the ASO may file taxes, but they do so under your company tax ID instead of taking on that liability.

    Find the Right HR Outsourcing Company for Your Business

    When you need to ease your HR burdens, it’s important to determine an option that’s most suited for your needs. If you have existing HR staff and need an extension of your internal department to handle administrative tasks, an ASO may make sense. If you want a company that can partner with you to assume some of the administrative risks while managing key HR functions, a PEO is the best option. 

    It’s also important to find which exact company is right for your needs. You’ll want to vet each potential PEO of ASO about their services, customer support, and what you specifically need to protect and prepare your business.

    Ready to make your business simpler, safer, and stronger? Contact GMS today to talk to one of our experts to find out if a PEO is right for your needs.