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  • As the calendar pages turn, business owners should begin thinking ahead to the next open enrollment season, understanding the importance of bridging the benefits communication gap. With November months away, it may seem premature to focus on benefits communication, but the truth is that early preparation is key to ensuring a smooth and successful open enrollment process.

    With the open enrollment period for employees approaching, business owners face a common challenge: effectively communicating the value and details of their benefits package to their workforce. Failure to bridge this benefits communication gap can lead to the following:

    • Employee dissatisfaction 
    • Low utilization of benefits 
    • Missed opportunities for both employees and the business itself

    Continue reading to explore practical strategies that business owners can employ to close the benefits communication gap, ensuring that employees understand, appreciate, and maximize their benefits.

    Start Early And Create A Clear Timeline

    Opening the communication lines well before the open enrollment period is crucial. Develop a clear timeline that outlines key dates, milestones, and other important information. Then, communicate this timeline to employees, giving them ample time to review and understand their benefit options.

    Meg Williams, GMS’ Benefits Account Manager, emphasized, “Effective communication has always been vital to open enrollment season. For employees, it’s a time that can make them feel confused and anxious. Open communication during the open enrollment process can help streamline this process and increase participation in important benefit offerings.”

    Tailor Your Message

    You must recognize that employees have diverse needs, preferences, and levels of understanding regarding benefits. Craft your communications to cater to different employee demographics, ensuring each group receives targeted information that resonates with their specific concerns and interests. It’s essential to remember that everyone is on their own unique journey. Take, for example, a 24-year-old recent graduate, full of excitement and starting their career, compared to a 60-year-old employee who is approaching retirement while potentially dealing with health challenges. These individuals have vastly different needs and interests regarding their benefits. Recognizing and addressing these diverse life stages and personal circumstances is essential in crafting benefits offerings that resonate with employees and support them at every step.

    Simplify Complex Information

    Benefits information can often be dense and overwhelming. Simplify complex concepts by using clear, concise language. Consider using visual aids, such as infographics or videos, to break down intricate details and make them more digestible for employees.

    Utilize Multiple Communication Channels

    Let’s face it; Everyone has different communication preferences. Some prefer email, while others may be more receptive to in-person meetings or a bigger group gathering such as a town hall meeting. With that in mind, utilize a combination of channels to reach employees, ensuring that the benefits information is accessible to everyone. This may include email newsletters, intranet portals, bulletin boards, webinars, and one-on-one sessions.

    Offer Personalized Guidance

    Many employees struggle to navigate the intricacies of benefits packages and may be unsure which options best suit their needs. Consider providing access to benefits specialists who can offer personalized guidance and answer questions. This can be done through dedicated support hotlines, online chat services, or even arranging in-person consultations.

    Consider Sharing Success Stories

    Highlighting success stories of employees who have maximized their benefits can inspire others to take advantage of available options. Encourage employees to share their positive experiences, whether through testimonials, case studies, or even internal newsletters. Real-life examples can help employees see the tangible value of their benefits.

    Foster A Culture Of Wellness

    Beyond the open enrollment period, business owners can further engage employees by promoting a culture of wellness. Offer workshops, lunch-and-learns, or seminars on mental health, nutrition, and work-life balance topics. By emphasizing the connection between well-being and benefits, employees will develop a deeper appreciation for the value of their benefits.

    Get Rid Of This Process In Its Entirety By Partnering With A PEO

    Closing the benefits communication gap is vital for business owners as open enrollment approaches. We understand that the open enrollment period is stressful and time-consuming, especially for small business owners. Fortunately, there’s a solution you may not have thought of – outsourcing your benefits administration to a professional employer organization (PEO) like GMS. This is a game-changer for small business owners looking to prepare early and ensure a smooth open enrollment season. With our expertise and resources, we can assist in crafting a comprehensive benefits communication strategy.

    By simplifying complex information, tailoring messages to different employee demographics, and utilizing various communication channels, PEOs help small business owners effectively convey the necessary details and actions employees must take. From providing personalized guidance to organizing workshops and consultations, PEOs empower employees to understand and make informed decisions during open enrollment. Meg added, “GMS has Benefits Account Managers on staff that work with clients to notify employees when it’s time to enroll in their benefits, provide concise overviews of all plans being offered, and provide easy access to benefits through the GMS Self Service Portal.”

    By leveraging the support of a PEO, small business owners can confidently navigate the open enrollment process, ensuring that all employees are equipped with the knowledge they need to take full advantage of their benefits when the time comes. Contact us today to learn more.

  • As a small business owner, it’s important to try to prepare for anything—even Mother Nature. In Florida, that means doing what you can to make sure your business and your employees are as ready as possible for hurricanes, named storms, and other events that can cause serious problems.

    Hurricane season is a stressful time that requires plenty of preparation and employee management to help weather any issues. Here are some tips that you can use to help you and your employees navigate any potential problems before, during, and after a storm.

    A hurricane approaching Florida, causing small business owners to prepare for the storm.

    Train Your Employees Ahead of Time

    Good employees play a major role in the success of your business, but sometimes they don’t always look out for themselves. The best time to prepare for a natural disaster is long before one arrives, so it’s smart to include hurricane education as part of a regular training program, especially if you have a lot of transient workers who never experienced a storm before.

    People move to Florida all the time. According to the U.S. Census Bureau, nearly 330,000 moved to the Sunshine State from 2016 to 2017, which is an average of nearly 900 people per day. That means a lot of workers in the state have never been through a bad storm before. A hurricane education session can help them know what they should always have available, including:

    • Battery operated TV and fans
    • Generator
    • Second refrigerator just to store water (will keep somewhat cool even after power is out)
    • Nonperishable canned goods

    While basic hurricane preparation education and supplies are good, you can go the next step and see if an expert would be willing to help. Local meteorologists are a great resource for hurricane training, whether they give you some helpful advice or are willing to visit your business to talk to your employees. It never hurts to ask.

    The frequency of the training depends on the makeup of your business. If you have a small workforce and little turnover, training can be more infrequent. If you’re in a high turnover business or have a larger staff, yearly training sessions can be a good idea. It’s also important to stress to your employees that they may want to consider leaving the area depending on the storm. Sometimes the best plan of action is to be nowhere near the hurricane when it hits.

    Close the Office When Necessary

    In general, the decision to close the office due to an incoming storm is up to you. OSHA does stipulate in its general duty clause, that all places of employment are “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” Essentially, if the storm makes your workplace a dangerous location, it’s time to shut down and evacuate.

    Another reason to play it safe and close your business if the weather is questionable is to avoid any potential liability issues. While the commute to and from your office is outside of your workplace, there is a grey area in terms of whether you’re on the hook if the impending or active storm causes an employee to get hurt or have an accident. A court may rule in your favor, but you may not want to take that risk when you can simply play it safe and close your office.

    Handle Wages with Care

    If you decide to close your business, your employees may still expect to be paid. According to the Society for Human Resource Management (SHRM), what they’re owed and if you need to pay them at all can depend on the type of employee:

    • Nonexempt employees are only owed for the hours they’ve worked according to the Fair Labor Standards Act (FLSA). This means that you do not owe them any money when you close your business.
    • Exempt employees are owed their full salary if the weather forces the office to close for less than a full workweek. However, you may require these employees to take paid time off (PTO) during these days.

    While the FLSA outlines your minimum requirements, that doesn’t mean that you should follow these guidelines. Forcing an employee to take PTO sends a message that you see the hurricane as their vacation, which will rub even the most loyal workers the wrong way. In addition, being left without a paycheck for something out of their control can create some discontent, even if the business isn’t able to generate any money during the closure either.

    One solution to this is to go above and beyond if possible. If you know what an employee typically makes during a week, find a compromise, whether it’s paying them in full or even offering a portion of their normal earnings. This can show them that you’re still trying to help during a difficult period. If you can’t make that kind of financial commitment or you need to make serious repairs to the business after the storm, explain the situation so that your employees understand instead of feeling blindsided by a lack of pay.

    Be Open and Accommodating About Leaves of Absence

    Even if you decide to keep your business open, there may be employees who want to stay home with their families. In this case, the Department of Labor allows you to consider such leave as an absence for personal reasons. As with wages, however, this can send a bad message to a good employee. Instead, it can be best to be flexible for employees who want to be at home to prepare for a storm, especially if they plan to head out of state.

    You can also offer some alternatives. For example, you can allow employees to work from home if possible. This will allow them to cut down on travel during a storm without sacrificing valuable work hours, at least until the power goes out.

    Employees may also be absent from work after a storm to attend to post-disaster needs, such as meeting with insurance adjusters. SHRM also notes that “employees affected by a natural disaster are entitled to leave under the FMLA [Family and Medical Leave Act] for a serious health condition caused by the disaster,” such as the need to care for a family member.

    If you want a more set structure in terms of how many days employees are allowed off for storms, you can include writing in your handbook or leave policies that sets out a specific process. The problem with this is that no hurricane is the same. One storm could last two days, while another could last 10. A set policy may pigeonhole you into an exact number of days if you’re not careful.

    Protect Important Documents

    Both you and your employees have important documents that must always stay safe. Unfortunately, hurricanes don’t cooperate. In Florida, it’s good to invest in document storage that can protect both business and personal documents from the elements, like a fireproof and waterproof safe.

    While a great start, a safe can’t protect your documents from a worst-case scenario. If a storm is projected to be bad enough to make you leave the area, make sure to take your documents with you so that the storm doesn’t take them away for good. Digitizing documents in a securely-stored online portal can also make sure that these files are safe from storms and accessible anyplace with an internet connection.

    Always Communicate

    Good communication is a key part of hurricane preparation. It’s important to keep in contact with your employees long before a storm hits, during the storm, and after it’s gone.

    While some employees will know the risks and protect themselves, others may not understand the danger of these storms or will be afraid to stay home out of fear of losing their job. Monitor the situation and make employees feel comfortable with their decision to stay or go if the coming storm looks dangerous. There are times where storms pass over and you don’t need to close, but it’s always good to err on the side of caution instead of being wrong about the weather.

    If you have any other questions about protecting your business before, during, and after a storm, it’s best to communicate with a trusted HR partner. GMS is a Professional Employer Organization that serves companies of all sizes across the nation. The experts in our Fort Myers, Florida branch can work with you to help you protect your business and manage key HR functions that complicate your day and bog down your schedule.

    Contact GMS today to talk to one of our experts in our Florida office about how we can help your business prepare for the future.

  • It’s easy to recognize certain milestones, but it’s not as simple to think ahead and avoid growing pains. Reaching the 50-employee threshold is a momentous occasion, but it also means that it’s time to consider some potential changes. Aside from taking the right steps to make sure your company is compliant with federal and state laws – don’t worry, we cover compliance considerations in another post – here are five ways to prepare your business for growth.

    A management team helping run a 50-employee business. 

    Embrace Process Documentation

    As you employ more people, it’ll be harder to keep everyone on the same page. You may know the most efficient way to complete something, but you can’t always be there to share this knowledge. Is there a specific way that something at your business should be done? Write that process down so that everyone has access to it. 

    Process documentation allows you to identify the core parts of your business and document the steps that it takes to consistently perform important tasks the right way. As you grow, these standard operating procedures can help train and guide new employees so that they know what to do and how to do it. 

    You should also document any tools or procedures that make a process more efficient. Creating operational best practices or process templates will benefit your workforce, while making your business more efficient. Make these documents available to your employees so that they save time instead of starting everything from scratch.

    Improve Company-Wide Communication

    Good communication is a crucial for any organization, but it can be hard to keep your company connected as it grows. In fact, it can become nearly impossible to keep regular face-to-face communication possible with everyone, especially if you have employees who work remotely. As a result, it’s important to give you and your employees ways to initiate company-wide conversations. For example, a cloud-based collaboration tool like Slack can help employees stay connected, while video conferencing platforms like Zoom can benefit remote employees and improve communication with clients and customers, depending on your business.

    In addition to providing more ways to communicate, you should also consider creating a comprehensive communication strategy for your business. This strategy can help your company establish a recognizable brand and consistent messaging for people outside of your business. This way, your employees have guidance not only on what to say, but also how to say it. According to the Society for Human Resource Management, a communication strategy should include the following elements:

    • Top-down strategies where senior management sets the tone for a cascading series of messages
    • A budget for various types of communication vehicles depending on need
    • An evaluation process to determine the right messaging for specific situations
    • A method for generating feedback and using it to shape follow-up messages
    • A customized delivery approach with communication materials that are easy to understand

    Entice Employees with New Benefits

    While the 50-employee threshold makes it a requirement for your business to offer health insurance, that doesn’t mean you shouldn’t consider providing other benefits as well. Finding good, new talent – as well as keeping current employees – is critical for a growing company. 

    An attractive benefits package can help you reward your current employees while enticing better candidates to your business. Aside from health insurance, Employee Benefits News found that employees looked for the following types of benefits:

    • Monetary bonuses (54 percent)
    • Paid vacation (53 percent)
    • Retirement plan with defined benefits (51 percent)
    • Flex-time (51 percent)
    • Employer matches for retirement plans (50 percent)
    • Ancillary health insurance benefits (vision, dental, etc.) (48 percent)
    • Paid sick leave and personal days (48 percent)
    • Profit sharing (40 percent)

    In addition to these benefits, consider some other options that may be especially valuable to your employees. Flexible work times and environments are a great perk for employees with young children. Roughly 80 percent of millennial employees show interest in companies that offer student loan repayment assistance. It’s hard to grow without good employees, so think about ways to make sure your benefits package matches the quality and type of job candidates you need to succeed.

    Build a Management Team with Defined Roles

    It’s common for small companies to employ people who can do a little bit of everything. That goes for the owners, as well. While there’s a time where it’s fine to juggle multiple roles, you’ll reach a point where you need to build a management team and assign different responsibilities.

    It can be hard to step away from having a hand in every aspect of your company, but you can’t be an expert at everything. Consider creating an organizational chart and identifying people who can oversee key aspects of your company. This management team can take the burden off you so that you can focus on what you’re best at – the continued growth and success of your business.

    Find an HR Partner

    A good management team isn’t the only group that can help you ease your workload. A growing company has a mounting list of internal administrative responsibilities, from handling payroll for all your employees to taking the measures required to keep your business compliant with federal and local laws. Proper management of these responsibilities take both HR expertise as well as time. Fortunately, a Professional Employer Organization (PEO) can help you on both accounts.

    The right PEO allows you to cost-effectively outsource critical HR functions so that you can spend your time elsewhere. A PEO partners with your company to co-employ your workforce as it relates to payroll administration, employee benefits, and any other functions that you need managed. This process gives you access to a range of HR experts who help you make informed business decisions without losing control of your company.

    You don’t have to grow your company by yourself. Whether you just hit the 50-employee milestone or only have a few workers, Group Management Services can help you manage key administrative needs. Contact GMS today about how we can make your business simpler, safer, and stronger through comprehensive HR services.

  • 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.

  • In a perfect world, small business owners wouldn’t have to worry about growing compensation budgets. Unfortunately, difficult or uncertain circumstances such as economic downturns, pandemics, or other major events can put a major financial strain on your company. 

    These situations can call for creative solutions, and compensation costs are a natural place to start shedding expenses. Payroll expenses typically fall between 15 to 30 percent of gross revenue, with exceptions for more or less labor-intensive industries. Of course, making compensation-based changes requires a delicate balance between securing the financial stability of your business without losing valued employees. 

    Whether you want to stabilize business expenses or need to cut costs, it’s important to take the right measures to keep your business strong during difficult times. Let’s break down what you can do to manage compensation costs.

    An employee receiving a paycheck following compensation management adjustments during difficult times. 

    3 Potential Compensation Management Strategies to Cut Costs

    There are a variety of approaches that you can take toward cutting or simply controlling your compensation expenditures. These strategies can be a temporary solution or permanent decision depending on your exact needs.

    • Manage current and future wages and salaries
    • Adjust or eliminate perks and incentives
    • Lay off or furlough employees

    Some routes will offer more cost savings than others, while others may create notable employee relations issues. Ultimately, you’ll need to carefully consider each of the following options and decide which makes the most sense for your business.

    Manage current and future wages and salaries

    According to the Bureau of Labor Statistics, wages and salaries accounted for 70 percent of employee compensation costs for private employers. The ability to cut or control these expenditures can make a major difference for businesses navigating through uncertain times. There are a few different routes your business can take in terms of managing wages and salaries:

    • Hiring freezes
    • Pay freezes
    • Wage adjustments

    Hiring freezes

    A hiring freeze is one of the first steps a business can take to control compensation costs. Simply put, a hiring freeze means that your business will not add any additional personnel. Hiring freezes are temporary in nature, but can last for months depending on the situation at hand. 

    One major advantage of hiring freezes is that it lessens the impact of compensation control on your existing employees. Unlike other solutions, the employees don’t feel the direct impact financially. However, this also means that hiring freezes won’t actively save your company money as much as allowing you to avoid adding on additional compensation costs. If you’re looking to simply control your expenditures while you wait out uncertain times, a hiring freeze can be a smart move.

    Pay freezes

    Like a hiring freeze, a pay freeze allows you to control compensation costs instead of cutting them. However, pay freezes apply to existing salaries and hourly rates as opposed to adding new members to your team. 

    If you give out regular raises or promotions, a pay freeze would put those increases on hiatus, effectively allowing you to maintain your current expenditures for wages and salaries. Of course, this route can be unpopular with employees because it does restrict their ability to make more money in the short term. However, it can be a much more amenable approach than other cost-saving solutions.

    Wage adjustment

    Another route you can go is to reduce compensation cuts by adjusting hours or salaries. For hourly employees, you can have employees work fewer hours in order to keep compensation costs down. There are a few different ways this strategy can work out.

    • Reduce number of days worked per week
    • Reduce the number of hours worked per day
    • Enact alternating work weeks
    • Offer voluntary days for employees who would rather take time off than work

    Each of these options can offer some financial reprieve, although it does mean that your employees will have less time to complete tasks. You’ll also want to review your local laws to make sure you follow any predictive scheduling laws. Some areas require a minimum notice period for changes in hours, days, and times worked, so make sure you give your employees proper notice if you decide to adjust work hours.

    If reducing work hours isn’t enough, you can opt to enact pay reductions for salaried employees. There are a few different routes you can go with this decision.

    • You can reduce pay by a same percentage for every single employee.
    • You can set different percentages for different tiers of employees based on job levels, organizational hierarchy, or some other groupings (make sure you have a legitimate business justification for each group to avoid any discrimination complaints).

    Pay reductions are an effective way to cut costs during difficult times, but it comes with the caveat that nobody likes making less money. As such, pay reductions are typically used only when it’s essential to cut costs. If pay reductions are a necessary step, one way to offset some displeasure is to show that everyone is impacted by the cuts, including leadership. Typically, higher-wage earners – including yourself – will take a percentage to help offset and protect lower-wage earners. While this is certainly not an enjoyable decision, it can show some solidarity between leadership roles and lower-wage workers.

    Pay reductions also come with some legal considerations that may impact your ability to enact these kinds of cost-cutting measures. As with hours adjustments, your local or state laws may require you to provide advance notice on pay cuts, which may require written notice along with signed acknowledgements from each employee. Any pay reduction should not drop hourly workers below the acceptable minimum wage. The Fair Labor Standards Act (FLSA) sets the federal minimum wage at $7.25 per hour, while many states and regions have higher rates necessary for minimum payment requirements. You’ll also need to make sure that your company navigates overtime pay correctly, especially for any employees who become non-exempt due to pay reductions.

    Adjust or eliminate perks and incentives

    While perks and incentives may not make up as much of your compensation costs as base wages and salaries, they can still add a notable amount to your expenses. Eliminating or adjusting these extra items can make quite a difference for financial stability.

    In terms of perks, evaluate what types of extra bonuses your employees may receive as a result of working for your company. Typical examples of minor perks include free lunches, tickets to events, and other monetary awards or gifts that employees can enjoy just by being part of your workforce. While these perks add to the overall experience of your business, they can quickly become non-essential in difficult times. As such, eliminating or adjusting these perks can be an initial step toward stabilizing finances that would be more popular than cutting salaries.

    Another cost-saving option is to end or adjust any bonuses and incentives employees can earn. Either option isn’t likely to be met with enthusiasm, but a reduction in bonus percentages or lengthening merit cycles for performance goals can be a much more agreeable solution for employees than more drastic cost-cutting solutions. If you do decide to adjust or end any of these bonuses or incentives, it’s important to time your announcement appropriately. Waiting until shortly before these payouts will not go over well with employees, so try to make any changes well before a payout period.

    Layoffs and furloughs

    Depending on the situation, you may need to cut more than just costs. Layoffs and furloughs are an unfortunate reality that many businesses must face during difficult times. However, they may be a necessary step if business slows down due to unexpected circumstances.

    Employee layoffs are a much more immediate form of cutting compensation costs. This measure effectively severs your ties with an employee, saving you from paying out wages, health insurance, payroll taxes, and any other costs associated with that worker. Of course, this also means that you may permanently lose this employee for good, even after your business bounces back.

    If you need to make difficult compensation cuts but still want to retain certain employees, a furlough is a more attractive option. Furloughed employees are still technically employed by your company. This relationship means that you send your employees home without pay, but they are still entitled to group health coverage, retirement plans, and any other such benefits offered by your business. Furloughed employees can also apply for unemployment, so they can still have some form of incoming revenue and benefits while they aren’t working for your company – and aren’t as tempted to leave for another business.

    In general, a furlough is designed to be a temporary situation. Some furloughs are designed to last for a set amount of time, while others may be indefinite until you decide it’s time to resume regular operations. Once the furlough is over, the affected employees can return to work and resume their normal duties.

    How to Communicate Compensation Cuts to Employees

    Running a business is already a difficult job – trying times only make it that much harder for both you and your employees. While certain compensation management strategies may not be the most pleasant news to share, it’s critical that you clearly communicate these decisions with your employees and help them understand exactly why they were made.

    Changes in compensations affects employees both professionally and personally. Lost wages, incentives, and jobs has a direct impact on each person’s family and plans for the future. While these decisions are made to stabilize your business, it’s important to recognize that these actions can have long-lasting consequences for everyone involved.

    This delicate balance between protecting the business and respecting your employees is why it’s crucial that you communicate these decisions directly with everyone involved. Make sure to be open, transparent, and empathetic when you deliver the news to everyone. Employees should be able to not only recognize the severity of the situation, but also that you understand how difficult this news is for everyone.

    It’s also important to maintain communication after you announce your initial plans. Frequent, clear updates is one of the best ways to support your employees during trying times. Let them know that you and other people in leadership positions are ready to listen to their concerns and ideas. By sharing regular updates and open communication, you can provide a necessary sense of security and stability while everyone works through these difficult times.

    Prepare Your Business for the Future

    Some events are impossible to predict, but there are always measures you can take to help protect your employees from difficult times. Fortunately, you don’t have to go through this process alone. 

    Group Management Services partners with small business owners to take on the administrative burden of HR management and make their businesses simpler, safer, and stronger. Contact GMS today to talk to one of our experts about how we can help you manage payroll, benefits, and other key HR functions. 

  • The employee performance review has been a standard business practice for decades. However, not all organizations recognize that there’s a fine line between a valuable performance review and an unhelpful one. 

    When done well, performance reviews are an incredibly powerful tool for driving employee success. When done poorly, they simply waste time and leave employees frustrated. The downsides of bad performance reviews have led some companies to shift away from performance reviews in recent years. However, it’s better to solve these issues than avoid them altogether.

    There is immense value to developing an open, honest avenue for managers to discuss an employee’s performance and opportunities for growth. Let’s break down employee appraisal tips that your business can do to create positive appraisal experiences that drive your employees to succeed.

    A small business owner conducting an employee performance review with appropriate best practices. 

    The True Goals of Employee Performance Reviews

    Simply put, employee performance reviews are conversations where a manager and an employee openly discuss that employee’s performance, development, and growth. This conversation is a key way to identify ways for both personal and company improvement. The word “conversation” is critical here – these appraisals should be a two-way conversation. 

    The reason why it’s important to have a conversation is that the employee should be just as engaged as the manager. Employee performance reviews are not designed for immediate fixes. If there’s a problem that requires immediate resolution, you shouldn’t wait for an appraisal. 

    Instead, performance reviews are meant to create regular opportunities for managers and employees to align their efforts and determine how they can maximize performance. As such, performance reviews give you an opportunity to work with your employees and achieve the following goals.

    • Create and review expectations, standards, and rules.
    • Educate employees about any behaviors they need improvement or modification.
    • Identify any strengths and weaknesses that weren’t already known.
    • Chart a course for the employee’s future.
    • Learn more about the employee.
    • Send a message that you care about the employee, both personally and professionally.

    7 Performance Review Tips for Managers

    By focusing on the appropriate goals, your performance reviews can help motivate team members and improve performance levels. However, those ideal goals will only go so far without proper execution.

    It’s essential to make the employee performance review process as positive of an experience as possible. The following tips can help you learn how to conduct performance reviews and build a culture of continuous improvement for your employees.

    Prepare ahead of time

    The first step toward any successful employee appraisal is preparation. Both you and your employees should come prepared to performance reviews with notes and talking points. The following items and information can also help.

    • A copy of the employee’s personnel file.
    • Documentation from past reviews, including previously set goals, objectives, and notes of interest from prior conversations.
    • Feedback and notes from supervisors or coworkers.
    • Relevant performance data and customer feedback.
    • SWOT analysis.

    A shared agenda will also help set a positive, constructive tone for the meeting. Some employees will go into a review expecting an interrogation that will directly impact their future compensation. Giving them an agenda and questions to think about will help them be in a mindset for growth instead of being tightlipped and careful about the information they share. 

    You can also prepare by asking employees up for review to share any topics they want to discuss. This gesture not only allows the employee to change the agenda to be more valuable for them, but also shows that you’re ready to listen. That two-way connection will encourage employees to contribute more to the review and own their path for professional improvement.

    Speak carefully and ask the right questions

    Your choice of words make a big difference. The right words and tone can help motivate your employees. Meanwhile, less friendly phrases will only make them dread these occasions in the future. 

    In terms of your message, try to focus on specific language that makes employees think in positive terms. For example, emphasize that the goal of each review is to solve problems and identify ways to help both the employee and the company grow. This constructive approach can keep employees engaged and look forward to the future. 

    The questions you ask are a major part of this process as well. These queries should mirror the same positive approach. The following questions are great ways to emphasize the future and and create steps for improvement.

    • What goals do you have for the next quarter, year, or other period of time?
    • What accomplishments are you most proud of from your work?
    • What goals do you want to set for your own development?
    • Are there any hurdles that we need to solve together?
    • What can I do to improve as your manager?

    Listen as much as you speak

    Even if you know that performance reviews should be a two-way conversation, it can be easy to end up talking most of the review. A two-way conversation should never feel like an interrogation or like only one party is talking. Employees may be hesitant to share too much information out of fear of saying something wrong. 

    It’s important to make sure that everyone being reviewed not only feels comfortable enough to share genuine thoughts, but also know that you’re actively interested in what they’re saying. Make sure to ask them about topics where they can lead the conversation. When an employee has interesting feedback, ask a follow up question to delve into the topic even further. You should also repeat back what you heard from them to confirm that you listened to their points and can clarify if there’s any misunderstanding. These practices will help you gather more critical information and show employees that the reviews are an ongoing conversation and not a one-sided affair.

    Give specific examples for both good work and areas of improvement

    Vague or generic criticism doled out during performance appraisals is only going to frustrate and disenchant employees. The best way to provide genuine critical feedback is to have concrete examples for good achievements and areas of improvement.

    One major benefit of using specific examples is that they provide very clear examples of exemplary or subpar work. Exact examples provide teachable moments of what can be done to improve that provide more weight than general feedback. 

    Examples also have the benefit of showing that you and your management team are paying attention. Whether you’re identifying ways for the employee to improve or providing accolades for good work, it shows the employee that his or her work hasn’t gone unnoticed. That level of attention gives your feedback more weight and helps your workers feel like they aren’t invisible. These employee performance tips ensure that your input leads to a good outcome for both the employee and the individual when giving feedback.

    Track employee progress

    In order to maximize the benefit of performance meetings, it’s essential to track that your efforts make a difference. You should do your best to find measurable goals and evaluate your employees’ progress over time. When you review these goals, try to answer the following questions

    • Do you see positive progression for measurable goals?
    • Has employee performance improved, declined, or stayed steady?
    • Has employee morale increased, decreased, or stayed steady?
    • Is the employee more confident than they were in past reviews?

    Over time, you should see employees continue to grow in their roles. If you’re not seeing positive results, you may want to change the goals or try a different approach toward maintaining professional growth. 

    Have next steps for after the meeting

    The performance review is just one step in a long process. Once the appraisal concludes, you and your employee should review everything that was discussed and complete the following:

    • Review notes from what was discussed during the meeting
    • Determine and define next steps 

    A performance conversation shouldn’t end when the meeting is over. After the conversation concludes, managers and employees should review notes, define next steps, and follow up with shared comments and feedback. Without these items, performance conversations feel unresolved. If you want your review to actually improve performance, it’s vital to create an action plan and follow through on that plan.

    Make performance reviews a regular exercise

    The conversation between management and employees doesn’t need to be an infrequent occasion. Performance conversations should be a regular event to help encourage improvement. Why wait another 12 months to try and focus on growth when regular feedback can help improve your company even sooner?

    Once you finish a performance review, try and schedule the next conversation as soon as possible. The cadence of these meetings will differ depending on your organization, but quarterly or monthly appraisals are good places to start. These regular meetings will not only keep the conversation going, but also show your employees that you care about their development.

    It’s also important to note that conversations shouldn’t be limited to just performance reviews. Constructive discussions can happen outside of scheduled appraisals. An open-door policy can help employees feel more comfortable talking about potential issues or paths to improvement at other times. This level of openness can help you make continuous performance a part of your culture instead of an unhelpful annual event.

    Set Up Your Employees for Success

    Your employees are your greatest asset. However, ongoing employee management is a major challenge, especially when there’s only so much time in the day. That’s why GMS works with businesses to help employers with everything from performance management to payroll administration.

    As a PEO, we help small businesses take control of critical HR management functions so that they can spend their time on other key business tasks. Contact GMS today about how we can save you time, money, and plenty of headaches by helping you take control of critical HR functions.