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  • Hiring the right person is a crucial step toward building a successful team. However, hiring the wrong candidate, what we call a “bad hire,” can be costly, both financially and culturally. A poor hiring decision can impact morale, productivity, and even your company’s bottom line.

    Let’s explore the real cost of a bad hire and what effective strategies you can utilize to minimize the risk.

    What Does A Bad Hire Cost?

    The financial impact of a bad hire is more significant than you might think. Research shows that the average cost of a bad hire is about 30% of the employee’s first-year earnings, a figure that can rise depending on the role’s seniority and the onboarding resources involved. CareerBuilder’s data found that a single bad hire can cost a business around $17,000, while higher-level hires can cost even more.

    Hidden Costs Of A Bad Hire

    A bad hire can create additional costs beyond direct financial impact. These hidden costs include:

    • Decreased team morale: Working with a disengaged or underperforming colleague can reduce team morale and lead to dissatisfaction among other employees.
    • Lost productivity: Time and resources spent on correcting mistakes or managing performance issues can pull focus away from core business objectives.
    • Reputational damage: Customer-facing errors or delays due to a poor hire can damage the company’s reputation, impacting customer retention.

    How To Avoid The Cost Of A Bad Hire

    Understanding the high stakes, companies need a clear strategy to mitigate hiring risks. Here are several best practices to improve hiring success rates:

    1. Clearly define role requirements

    Clearly defining job expectations and qualifications is essential. Vague job descriptions often lead to a mismatch between candidate skills and role requirements. A well-defined job description should differentiate between “prerequisite” skills (those the candidate must have) and “trainable” skills (those that can be developed on the job).

    1. Implement objective assessment tools

    Reducing subjectivity in hiring decisions can help avoid costly mistakes. Objective assessment tools, including AI and machine learning, allow companies to evaluate candidates based on data-driven insights rather than gut feelings. This approach not only increases accuracy but also helps eliminate unconscious bias from the hiring process.

    1. Conduct thorough reference checks

    Reference checks are essential to verify the candidate’s work history, skills, and cultural fit. Speaking with past employers provides valuable insights that may not come up in interviews, helping to avoid last-minute surprises.

    1. Focus on objective interview techniques

    Rather than relying on open-ended questions that may yield little insight, tailor your interview questions to require candidates to demonstrate essential skills. For instance, “What experience do you have with [specific skill]?” is more effective than broad questions about handling workplace challenges. Keeping interviews skill-focused helps identify candidates who meet the role’s technical requirements.

    1. Prioritize cultural fit in a measurable way

    While cultural fit is essential, it’s equally important to define what that means within your organization. Break down qualities like “team player” or “cultural fit” into specific, measurable traits. This clarity helps prevent misunderstandings about what you’re seeking in a candidate and allows you to evaluate them objectively.

    1. Don’t rush the hiring process

    While urgent hiring needs can make it tempting to fill a role quickly, a rushed process often leads to mistakes. By taking the time to vet candidates properly, you can avoid repeating the process when a hasty hire doesn’t work out. Remember, a poor hire is costly, so it’s worth investing in a thoughtful and deliberate selection process.

    1. Utilize professional employer organizations (PEOs) for hiring support

    A trusted PEO can help you streamline the hiring process by managing essential functions like job postings, candidate screenings, and background checks. This support allows your team to focus on core responsibilities while the PEO’s expertise ensures you’re connected with high-quality candidates.

    Handling A Bad Hire

    Despite best efforts, sometimes a bad hire still happens. In such cases, it’s essential to act quickly and strategically. First, identify the issue, whether it’s performance, attitude, or cultural fit, and address it directly with the employee. Implement a performance improvement plan, if applicable, or adjust the employee’s role to better align with their strengths. For more insights, explore our comprehensive guide to simplifying performance management.

    If the employee still isn’t improving, it may be necessary to terminate the employment. Make sure to follow legal guidelines to avoid wrongful termination claims. Many companies implement a probationary period to evaluate an employee’s fit before committing to long-term employment. This period allows you to ensure new hires align with your organization’s goals and standards.

    Partner With GMS To Reduce Hiring Risks

    Hiring is both an art and a science, and the consequences of a bad hire are too costly to ignore. At Group Management Services (GMS), we specialize in helping businesses strengthen their hiring practices to attract and retain the right talent. From writing accurate job descriptions to conducting comprehensive screenings, our services allow you to avoid the pitfalls of bad hiring decisions.

    Contact GMS today to learn how our experts can support your business in recruiting effectively and efficiently.

     

  • What Is Telemedicine And How Does It Work? 

    Telemedicine is the practice of delivering health care services remotely using digital communication tools such as video calls, secure messaging, and mobile health apps. It allows patients to consult with doctors, receive diagnoses, and even get prescriptions without visiting a health care facility in person. 

    During flu season, telemedicine becomes especially valuable, enabling individuals to seek medical attention from the comfort of their homes. Patients can schedule virtual appointments, discuss symptoms with a doctor in real time, and receive treatment recommendations without risking exposure to other contagious individuals in waiting rooms. Some telehealth platforms also provide remote monitoring, allowing doctors to track symptoms and recovery progress for high-risk patients. 

    The Growing Adoption Of Telemedicine In The Workplace 

    Due to its cost-effectiveness and efficiency, a growing number of employers are incorporating telemedicine into their health benefits packages. According to a 2024 report, 78% of employers now offer telemedicine services, recognizing its role in reducing absenteeism, improving employee well-being, and cutting health care costs. 

    Offering telemedicine is not just about convenience but also a strategic investment for businesses. Traditional in-person health care visits often involve significant expenses, including insurance claims, lost productivity, and emergency room visits for non-emergency issues. Telemedicine provides a cost-effective alternative, reducing unnecessary ER visits and allowing employees to receive timely medical care without disrupting their work schedules. 

    Benefits Of Telemedicine For Employers 

    Reduced absenteeism and improved productivity 

    One of the biggest challenges during flu season is the rapid spread of illness in the workplace. Employees who come to work while sick can infect others, leading to a cycle of absences. Telemedicine helps mitigate this issue by enabling early intervention. Employees can seek treatment at the first signs of illness and recover at home rather than exposing their colleagues. 

    Additionally, employees who use telemedicine services don’t have to take half-days or full days off work just to see a doctor. Virtual consultations are typically shorter and can be scheduled before or after work hours, minimizing disruptions to daily operations. 

    Lower health care costs 

    Telemedicine is significantly more affordable than traditional in-person visits. A virtual consultation costs an average of $40 to $50, compared to an in-office visit, which can range from $100 to $200 or more. Employers who integrate telemedicine into their health care plans can reduce insurance claims and overall health care expenses. 

    Competitive employee benefits 

    With labor shortages and increased competition for top talent, offering telemedicine as part of an employee benefits package can improve job satisfaction and retention. Employees appreciate having convenient, on-demand access to health care, making them more likely to stay with an employer that prioritizes their well-being. 

    Benefits Of Telemedicine For Employees 

    Convenience and accessibility 

    One of the most significant advantages of telemedicine for employees is the ability to receive medical care without leaving home. This is especially beneficial for those in remote areas, individuals with mobility issues, or employees with demanding work schedules. 

    Reduced exposure to contagious illnesses 

    Flu season poses a heightened risk for individuals with weakened immune systems, chronic illnesses, or caregiving responsibilities. Telemedicine eliminates the need for in-person visits to crowded doctor’s offices, lowering the risk of exposure to other contagious patients. 

    Faster access to care 

    Telemedicine appointments are often available within minutes or hours, whereas scheduling an in-person doctor’s visit can take days or weeks. This immediate access to health care ensures that employees receive timely treatment, reducing the severity and duration of illnesses. 

    Why Investing In Telemedicine This Flu Season Is A Smart Move 

    Flu season can significantly impact businesses financially and operationally. According to the Centers for Disease Control and Prevention (CDC), the flu costs U.S. employers $11.2 billion annually in lost productivity due to employee illness. Implementing telemedicine helps businesses minimize these losses by keeping employees healthier, reducing workplace outbreaks, and providing easy access to treatment. 

    Moreover, telemedicine aligns with broader workplace wellness initiatives, demonstrating a company’s commitment to employee health. As health care continues to evolve, businesses that adopt telemedicine will be better positioned to support their workforce while effectively managing costs. 

    Telemedicine is no longer a luxury; it’s a necessity, especially during flu season. It offers a win-win solution for employers and employees by reducing health care costs, minimizing absenteeism, and providing convenient access to medical care. As more businesses integrate telehealth into their benefits packages, they not only safeguard their workforce but also position themselves as forward-thinking, employee-focused organizations. Contact Group Management Services (GMS) to add telemedicine to your health plan and keep your employees healthy and productive. 

  • As a small business owner, you’re likely being pulled in countless directions, including the responsibility of finding quality health insurance for your team. Health insurance is an expensive and complicated system to navigate and can be incredibly time-consuming for individuals who are unfamiliar with the process. However, it’s not something to ignore.

    In today’s competitive job market, health insurance is a benefit that can help you maintain a competitive edge. In some instances, such as if your business has more than 50 full-time or full-time equivalent (FTEs) employees, it’s a legal obligation.

    When searching for the best health insurance option, you don’t have to find a plan alone. Professional employer organizations (PEOs) and health insurance brokers can guide you. While both PEOs and brokers have the same general goal—to find you quality, affordable health insurance for your business—they work in different ways.

    PEO Vs. Brokers

    PEOs

    PEOs and brokers have distinct differences, particularly in their scope of services. PEOs go beyond just health insurance, providing comprehensive HR solutions. They can handle payroll, employee benefits, risk management, and other HR-related functions. By bundling these services, PEOs offer a holistic approach to managing employee-related tasks, freeing you, as a small business owner, to focus more on your core business activities.

    Beyond the scope of their work, PEOs and brokers differentiate in cost structure. PEOs can help small businesses lower their potential premiums by becoming a “co-employer” for your workers. Since PEOs partner with dozens of companies, they have greater buying power than any small group. As a small business owner, this allows you to step up to the insurance bargaining table and earn discounts as if you employ hundreds of people.

    Health insurance brokers

    On the other hand, if you’re not looking for comprehensive services, insurance brokers specialize solely in helping businesses select and manage their health insurance plans. They offer expertise in the insurance market, advising on the best plans, assisting with plan selection, and helping with claims management. However, their services are limited to insurance and do not extend to broader HR functions.

    Brokers can also help your company save money as they have a detailed knowledge of the health insurance market. Though they can offer more flexibility by helping to tailor plans to meet your team’s specific needs, you’ll have less negotiating power as a small business.

    Factors To Consider When Choosing Between A PEO And A Broker

    Choosing between a PEO and a broker for your health insurance needs requires careful consideration of several factors. The following are key aspects to keep in mind to ensure you make the best decision for your business:

    • Business size and needs: PEOs are generally more beneficial for small to mid-sized businesses that require comprehensive HR support. If your company struggles with managing multiple HR functions, a PEO can offer integrated solutions that streamline these processes. Brokers are ideal if your business has a well-established HR department but needs expertise in selecting and managing health insurance plans.
    • Future growth plans: As your business grows, the comprehensive HR services provided by a PEO can scale with you, offering continued support and helping manage the increased complexity of a larger workforce. While brokers can continue to provide valuable insurance advice, they may not offer the broader support needed to operate a larger, more complex organization.
    • Budget considerations: Brokers often earn their income through commissions paid by insurance carriers. These commissions are usually a percentage of the premiums paid for the insurance policies they help secure. PEOs charge a fixed fee per employee or a percentage of the total payroll. Understanding the costs of both options compared to the services you are receiving is crucial to making the right decision for your company.
    • Level of support needed: If your business requires assistance with various HR functions beyond insurance, relying solely on a broker may require outsourcing to multiple vendors to get the comprehensive support you need. This approach can lead to higher costs and increased complexity in the long run. On the other hand, PEOs offer bundled support across multiple HR areas, saving you time and money by providing a single, integrated solution.
    • Flexibility: Most PEOs offer a limited selection of health insurance options, which can simplify decision-making. However, if your business has unique or specific health insurance needs, these limited options may not be sufficient. In contrast, brokers can provide a broader range of insurance plans tailored to diverse requirements, although these options might come at a higher cost.

    While there are many pros and cons to both PEOs and insurance brokers, it’s crucial to weigh your specific needs, short and long-term costs, and overall business goals when making your decision. Ultimately, the goal is to provide comprehensive and competitive benefits to help retain and recruit top talent. By carefully considering these factors, you can choose the solution that best supports your business and its employees.

    Find A Health Insurance Expert To Help Your Business

    Although PEOs offer many additional services and potential savings opportunities, both PEOs and brokers can be extremely helpful when searching for the right health care plan. There are also ways that PEOs like GMS can work with brokers, helping them offer more comprehensive, customized solutions that benefit small businesses.

    Whether you’re looking for experts who can help you find the right insurance plan or are already working with a broker, GMS can help. Contact GMS today to talk to one of our experts about how we can help you find a quality, affordable health care plan for your business.