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  • Construction companies continue to face ongoing recruitment and retention challenges, with the industry posting a 54% turnover rate. As a business owner in the construction industry, you have your hands full with completing client projects, overseeing supply inventory, and ensuring a safe worksite, making it difficult to develop and create retention policies. Although streamlining your internal operations can improve efficiency and help you manage your business, a strong and successful company starts with a healthy and happy workforce.

    Many business owners believe that the only way to retain employees is by offering them raises. However, this isn’t always possible for smaller or newer companies. Fortunately, there are other strategies to show appreciation for your workforce, which can enhance morale and productivity. Continue reading to discover four perks you can implement to attract new talent and retain your current employees.

    Provide a Benefits Package

    An expensive but necessary perk that business owners should consider offering is a health or benefits plan. While prices swing depending on the number of people on a plan, the amount of coverage needed, and the type of plan, the benefits far outweigh the costs. In fact, 78% of employees reported they’re more likely to stay with an employer because of their benefits program.

    Offering group health coverage can help cut down on overall costs and assist your employees with copays and other out-of-pocket charges. While a group health care plan might not make sense for your company’s needs, consider providing access to supplemental insurance plans. Offering access to vision, dental, home, and pet insurance can provide employees with tailored care specific to their needs, helping them save on health expenses with more coverage.

    Offer Professional Development Opportunities

    Another way to invest in your employees is to provide opportunities for professional growth. Whether through a mentorship program, online training, or attending industry-specific workshops, there are a variety of ways to help your employees grow their skillset. Investing in your employees’ individual growth not only expands the abilities of your workforce but also builds a relationship of trust and loyalty between employee and employer. A good rule of thumb is to continuously communicate with your workforce to gain a deeper understanding of the types of skills they want to learn or the type of programs they want to participate in.

    Invest in Workplace Culture

    Employees are more likely to stay at a company that makes them feel safe, heard, and valued. To cultivate a positive work environment, it’s important to prioritize employee well-being, encourage collaboration, and share team wins and successes. Employers can prioritize employee well-being by promoting flexible work schedules, offering paid time off (PTO), practicing open communication, and having weekly one-on-one meetings to tackle any issues or concerns. Hosting team-bonding events and encouraging interdepartmental interactions and projects are great ways to facilitate greater rapport among employees, which can lead to greater morale and retention. Employers should also consider actively recognizing achievements and group successes to showcase their trust in the team and their work.

    Implement Flexible Scheduling

    In today’s work landscape, schedule flexibility is increasingly important. Everyone’s schedule is different, and employees have different prime working hours and personal responsibilities. A tightly packed personal and professional calendar can take a toll on employees, so it’s important to implement strategies and perks to help them manage their time better. One way to do this is by offering telehealth options, so that your employees can spend less time at the doctor’s office or in the waiting room. This approach not only enables them to receive the personal care they need but also gives them extra time to handle their daily tasks, ultimately allowing them to invest more energy into their responsibilities at work.

    Business Retention and Group Management Services 

    Construction companies face unique challenges in recruitment and employee retention, but implementing effective strategies can make a significant difference. By offering comprehensive benefits packages, providing professional development opportunities, investing in workplace culture, and implementing flexible scheduling, business owners can create a supportive and engaging environment for their employees.

    Group Management Services (GMS) can assist in developing and executing these retention strategies. With our expertise in HR solutions, we can help tailor programs to meet the specific needs of your workforce, ensuring that your employees feel valued and motivated to stay with your company for the long term. Our team can also provide personalized assistance and training to help your company attract and retain talent to help bring your business to the next level. Contact us to learn more!

  • In today’s competitive job market, employers are constantly looking for ways to strengthen their employee retention rates and improve morale. While there are a variety of solutions for low retention and morale, enhancing your benefits offerings with supplemental insurance is a great place to start.

    Supplemental insurance plans, also referred to as voluntary benefits plans, aren’t required by law but do provide valuable benefits that can be used to complement your group health insurance plan. But what exactly are these plans, and how do they benefit both parties?

    What Are Supplemental Insurance Plans?

    Supplemental insurance plans are additional insurance policies that employees can purchase to complement their primary health insurance coverage. These plans are designed to cover health costs that fall outside of normal health insurance coverage, such as copayments, deductibles, and other out-of-pocket costs.

    These plans can include:

    • Life
    • Dental
    • Vision
    • Accident and critical illness
    • Long-term and short-term disability
    • Pet
    • Pre-paid legal
    • Home and auto
    • Telehealth

    If offered, employees can opt in to these plans. For example, not every employee may want or need a pet insurance plan, but an employee with a dog may be very interested in coverage.

    Benefits for Employees

    Offering supplemental insurance plans is a great perk for employees and shows they are cared for and valued.

    • Greater control: With supplemental insurance plans, employees can customize their benefits packages to fit their own needs as well as their spouse’s or children’s needs. They’ll also have greater control over how they utilize their benefits, helping them manage and utilize their plans more effectively and efficiently.
    • Access to specialized care: Plans like dental and vision insurance allow employees to access specialized care without worrying about high out-of-pocket costs. This encourages regular check-ups and preventive care, contributing to overall health and well-being. Supplemental insurance plans are beneficial because employees only pay for the specific care they need, rather than covering costs for services that other employees might require.
    • Flexibility: Employees can choose the insurance that best suits their needs and budget. This flexibility allows them to tailor their insurance coverage to their specific health requirements and financial situation.
    • Broader coverage: Depending on the plan, supplemental insurance can provide employees with broader coverage than a group health plan, ensuring they are protected against unexpected medical expenses that their primary insurance might not cover. This added layer of protection can be crucial in maintaining financial stability and peace of mind.

    Benefits for Employers

    As an employer, providing supplemental insurance for your workforce has several benefits for your business, including improving workplace morale, company loyalty, and your company’s bottom line.

    • Attracting top talent: Offering supplemental insurance as part of a benefits package can make a company more attractive to potential employees. In a competitive job market, comprehensive benefits can be a deciding factor for candidates choosing between job offers.
    • Employee retention: Supplemental plans can be a powerful tool to retain top talent. Providing robust benefits can increase employee satisfaction and loyalty because when employees feel valued and supported, they are more likely to stay with the company long-term.
    • Improved productivity: Healthier employees are more productive. By offering supplemental insurance, employers can help ensure their workforce has access to necessary medical care, reducing absenteeism and improving overall productivity.
    • Savings: While offering supplemental insurance can increase your premiums, it can lead to long-term savings. Healthier employees mean fewer sick days and lower health care costs, which can positively impact the company’s bottom line.

    Group Management Services and Supplemental Insurance

    Supplemental insurance plans are a valuable addition to any benefits package, offering significant advantages for both employees and employers. By providing enhanced coverage, financial security, and access to specialized care, these plans contribute to the overall well-being of employees.

    If you want to offer supplemental insurance for your employees, but aren’t sure where to start, consider partnering with Group Management Services (GMS), a professional employer organization (PEO). With the help of our knowledgeable team, GMS can help you offer great benefits and supplemental insurance packages at an affordable price. We offer a higher collective buying power that can lower your premiums and provide benefits comparable to those of a Fortune 500 company.. We will help you find the right package to offer to your employees and walk you through the entire process. that of a Fortune 500 company. We will help you find the right package to offer to your employees and walk you through the entire process.

    Contact us to learn more about how we can help your business!

  • As a small business owner, you may think offering a retirement plan to your employees is too costly or complicated. However, there are many benefits to providing a retirement plan, especially a 401(k) plan, that can help you attract and retain talent, save on taxes, and secure your own future. Of the 34% of small business owners offering retirement plans, 63% said they offer the plans because it’s the right thing to do, while another 53% said their employees appreciate and expect the benefit, and 51% said the plan helps recruit employees. Let the statistics speak for themselves. However, if you still don’t feel compelled to offer your employees a benefit they want and need, we’ve compiled a list of advantages. But first, let’s start with the basics.

    What Is A 401(k) Plan?

    A 401(k) plan is a type of retirement plan that allows employees to contribute a portion of their salary to a tax-deferred account, where it can grow over time. Employers can choose to match some or all of the employee contributions or make profit-sharing contributions to the plan. There are different types of 401(k) plans, such as traditional, safe harbor, SIMPLE, and solo 401(k) plans, that have different rules and requirements.

    Why Offer A 401(k) Plan?

    There is a plethora of benefits to offering a 401(k) plan to your employees. Beyond being a cornerstone of financial security for employees, a 401(k) plan serves as a beacon of loyalty, attracting and retaining top talent in today’s competitive job market. Let’s get into the benefits:

    • Employee retention: Offering a 401(k) plan can enhance employee retention by providing a valuable benefit that encourages loyalty and long-term commitment to the company.
    • Competitive advantage: A comprehensive benefits package, including a 401(k) plan, can make your company more attractive to top talent, giving you a competitive edge in recruitment efforts.
    • Tax advantages: Both employees and employers can benefit from tax advantages associated with 401(k) contributions. Employees can enjoy tax-deferred growth on their investments, while employers may be eligible for tax deductions on contributions made to the plan. In addition, there are tax credits resulting from SECURE 2.0 legislation that may help lower the cost for some employers starting a new 401(k) plan.
    • Employee financial security: A 401(k) plan helps employees save for retirement, fostering financial security and peace of mind. It empowers them to take control of their future and plan for a comfortable retirement.
    • Employee engagement: Providing a 401(k) plan demonstrates a commitment to employee well-being and financial literacy. It can lead to increased employee morale and overall satisfaction, which can positively impact productivity and workplace culture.
    • Flexible contribution options: 401(k) plans typically offer flexible contribution options, allowing employees to contribute a percentage of their salary and adjust their contributions over time to suit their financial goals and circumstances.
    • Employer matching contributions: Many employers offer matching contributions as part of their 401(k) plan, providing employees with an additional incentive to participate and save for retirement.
    • Automatic enrollment features: Some 401(k) plans offer automatic enrollment features, making it easier for employees to start saving for retirement without taking proactive steps to enroll.
    • Investment options: 401(k) plans allow employees to tailor their investment strategy based on their risk tolerance, investment objectives, and time horizon.
    • Portability: 401(k) plans are portable, meaning employees can typically roll over their account balances into another qualified retirement plan if they leave the company, providing continuity in retirement savings.

    Offering a retirement plan to your employees is not only a smart business decision but also a way to show them that you care about their well-being and future. By providing a 401(k) plan, you can help your employees achieve their retirement goals while also benefiting your own business and personal finances.

    401(k)s For Small Businesses With A PEO

    To recruit and retain quality employees, retirement plans are an essential benefit; however, they come with a lot of complexity and risk. At GMS, we understand that’s probably the last thing you want to worry about. That’s why when you partner with us, we take on that administrative burden. As a small business owner, you can finally offer that retirement plan you’ve debated adding to your benefits package for years.

    By partnering with us, we cut costs, reduce stress, save time, and offer benefits your employees want the most. Contact us today to learn more about our retirement plan offerings so you can attract and retain the top talent you want and need.

  • Employee retention is a critical aspect of any successful organization. High employee turnover can be costly regarding financial resources and the loss of valuable talent and institutional knowledge. In today’s competitive job market, creating a work environment that attracts and retains top talent is more critical than ever.

    After you’ve finished the recruitment process and you’ve hired your employees, keeping them happy on the team is essential. In addition to the cost benefits of employment continuity, there are also morale and productivity benefits.

    What Is Employee Retention? 

    Employee retention refers to an organization’s ability to retain its employees for a significant period of time – its aptness to keep employees engaged, motivated, and committed to their goals, mission, and vision.

    Just because you hire a new employee doesn’t mean the recruitment process is over; rather, it’s time to switch your focus to retention. Retention is a holistic approach involving a comprehensive plan to create a positive work environment that not only attracts top talent but encourages them to stay.

    Why Is Employee Retention Important? 

    Employee retention is crucial because it impacts every organization’s bottom line, productivity, and overall success. Thus, it is not something you should overlook. Here are just a few of the many reasons why you need to take the time to retain your workforce:

    High employee turnover can be costly for organizations. 

    The cost of hiring and training new employees can be substantial, in fact, the average cost of employee turnover is 33% of the worker’s annual salary. Plus, the loss of valuable talent and institutional knowledge can negatively impact your business’ productivity and performance. Retaining employees can help reduce these costs and ensure you maintain a stable and experienced workforce.

    Improves employee productivity and performance. 

    Employees who feel valued and engaged are more likely to be motivated and committed to the organization’s goals, mission, and vision. This can lead to increased productivity, improved quality of work, and better customer service.

    Helps to build a positive organizational culture. 

    Employees who are rewarded and recognized for their hard work are more likely to have a positive attitude toward their work and their colleagues, fostering a more collaborative and supportive work environment.

    Improves the organization’s reputation. 

    Word of mouth continues to be one of the most authentic and influential forms of recruiting and referrals. Happy and engaged employees are more likely to speak positively about the organization to others, including potential customers and job candidates. This can attract top talent and improve your brand’s image.

    Support the organization’s long-term success. 

    Long-time employees develop a deep understanding of your culture, values, and operations. Their commitment to your business is valuable as it can lead to increased innovation, improved decision-making, and better problem-solving from your team.

    How Do You Retain Top Talent? 

    In today’s fast-paced job market, retaining top talent is crucial for any organization looking to maintain a competitive edge, and there are several strategies that can be implemented to achieve this goal. We’ve compiled a list of effective tactics worth considering to keep your employees happy and your team strong.

    Train your managers.

    The majority of the time, employees do not leave organizations—they leave managers. You may have excellent managers that can perform many functions of the job, but if they don’t know how to manage, motivate, and treat employees fairly and effectively, you will face employee dissatisfaction and turnover.

    Offer extrinsic and intrinsic rewards.

    Ensure you are offering an equitable salary and bonuses within your geographic area and industry. Additionally, benefits such as health insurance, retirement plans, and other perks, including flexible work arrangements and paid time off (PTO), should be equitable (extrinsic rewards).
    Employees don’t stay just for the pay. They also need to know that their work makes a positive difference to the goals of the company, their managers, customers, and fellow employees (intrinsic rewards).

    Consider company culture during the hiring process.

    A positive work environment is essential for employee retention. This should include promoting a culture of respect, open communication, and teamwork, as well as providing a safe and comfortable physical environment.

    While a candidate may possess all the skills necessary to perform the job, if they are not a good fit with your company culture and fellow employees, they are not a good fit for the company. Hiring them anyway will result in increased turnover.

    Promote from within.

    When employees have the opportunity to create a career path within their company, they are motivated to stay. Employees want to feel that they are growing and developing in their careers. If you pass over suitable, qualified employees for promotions or even desired lateral moves, they will leave and go to a company that recognizes and rewards their efforts.

    Give frequent feedback.

    Don’t wait until review time to give feedback. Your employees want to know how they are doing and how they can improve their performance. Give clear examples and specific tactics they can use to improve their performance. Set goals together. Engage your employees by asking how they can resolve performance issues. Don’t forget to give positive feedback to those doing a good job. Nobody wants to hear about their performance from their manager strictly when it’s negative.

    Listen to employee feedback.

    It’s essential to listen to employee feedback and take action to address their concerns. Conducting employee satisfaction surveys, holding focus groups, and providing opportunities for open communication can help identify improvement areas and demonstrate that the organization values employee input. After all, they are performing the job every day and can give you the best feedback and offer great suggestions for improvements or changes.

    Encourage executive conversations.

    Employees want to hear from executive-level management about what’s happening in the company—the good and the bad. Did you have a really good year? Let your employees know and thank them for their part in that success. Take time to share your goals for your company’s future with your employees and help them understand their role in meeting these goals. If your organization has significant changes, your employees need to hear that from you because adaptations can often cause fear and stress. You need to address these changes and alleviate your employees’ concerns.

    Recognize employee successes.

    Employees want to feel valued and appreciated. Recognizing and rewarding employees for their hard work and contributions can go a long way toward building loyalty and retaining top talent.
    Recognition does not have to be complicated. Let your employees know if they are consistently doing a great job or excelling on a particular project. Send an e-mail, write a letter. Even a high five and “great job!” from you can mean a lot. Be specific when you express your recognition. This can be incredibly influential when it comes from top management.

    Offer autonomy.

    Employees want direction from their manager but also value a certain degree of autonomy in their jobs. Employees need a clear job description, and their manager must clearly express what their expectations are from an employee for their overall performance and day-to-day responsibilities. With this clarity, employees can direct their workflow and performance without being micromanaged. Employees can take ownership of their roles and responsibility for their performance.

    Facilitate teamwork.

    People spend most of their time at work and with their fellow employees. It’s crucial to build strong, functional, well-led teams. Successful teams communicate, are respectful of other team members, and are focused and committed to their organization and to achieving goals. Good teamwork facilitates positive relationships with coworkers. It helps bond them together as they work to achieve common goals—an important factor in retaining employees.

    Offer work-life balance.

    Work-life balance is becoming increasingly important to employees, particularly younger generations. Offering flexible work arrangements, such as telecommuting and flexible schedules, can help to attract and retain employees who value work-life balance.

    Investing In Your Employees

    Your employees are the backbone of your company. When your employees are happy, it shows in their performance—and it will be one the most important factors in retaining your customers and increasing the overall profitability of your organization. Investing in employee retention strategies can create a workplace in which employees want to stay, leading to increased innovation, growth, and success.

    Trust GMS as your HR partner for the complete employee lifecycle – from hire to retirement. By outsourcing your recruiting efforts to us, our highly trained recruiters will deliver the candidates you deserve, especially for those hard-to-fill positions. Once you’ve found the perfect match and an offer has been accepted, our paperless onboarding, benefits enrollment, and learning management system will help your new hire get acclimated to your organization and their new career.

    As their career continues and they grow with your company, we’ll be there to assist with employee management and development – from handbooks to employee surveys and even performance management.

    Make no mistake, investing in your employees is not a one-and-done ordeal; it’s an ongoing effort that has a direct correlation with your attrition. We’re here for you every step of the way – contact us today to learn more about what we can do for you and your business.

  • Human resources (HR) management is a crucial aspect of running a successful business. However, it can be a complex and time-consuming task that can take away from the core business activities. This is where HR outsourcing can come in handy, especially when done through a professional employer organization (PEO). Partnering with a PEO cuts obvious hard costs and also has significant soft cost savings. Continue reading to discover how HR outsourcing with a PEO can lead to significant soft cost savings.

    Understanding The Hard Cost Of HR Outsourcing Savings

    If you’re a business owner, you’re probably all too familiar with the challenges and costs associated with managing HR in-house. From recruiting and onboarding to benefits administration and compliance, HR tasks can be complex, time-consuming, and expensive. However, outsourcing HR to a PEO can help businesses save on hard costs, including the following:

    • Administrative expenses 
    • Employee benefits 
    • Payroll errors 
    • Implementing HR technology to automate processes and streamline systems 
    • Workers’ compensation insurance 

    A recent study showed that businesses that partner with a PEO can save an average of $1,775 per employee per year on these hard costs alone. That’s a significant amount of money that can be reinvested in the business. These savings are just scratching the surface of the potential hard cost savings that come with HR outsourcing through a PEO.

    What Are Soft Cost Savings And Why Are They Important

    While hard cost savings are more tangible and easier to measure, soft cost savings can significantly impact a business’s bottom line over time. Soft cost savings refer to the indirect and intangible benefits businesses can achieve by outsourcing HR to a PEO. These benefits may not be immediately apparent but can add up to significant savings in the long run.

    Examples of soft cost savings include the following:

    Improved employee retention

    Employee turnover can be a significant headache for businesses, and it’s not just the direct costs of recruiting and training new hires that can hurt your bottom line. High turnover rates can also lead to decreased productivity, lower morale among remaining employees, and a tarnished employer brand. This is where partnering with a PEO can help. PEOs provide businesses with access to various HR services and resources that can improve employee retention.

    A PEO can help businesses offer more competitive benefits packages, including health insurance, retirement plans, and other perks that make employees feel valued and supported. In addition, they provide training and development programs that help employees grow and advance within the company, reducing the likelihood that they’ll look for opportunities elsewhere. When you can improve retention, businesses can reduce the costs and headaches associated with high turnover rates and create a more stable and productive workforce.

    Enhanced HR compliance

    Staying on top of HR compliance can be a daunting task for businesses, especially those operating in multiple states or having a geographically dispersed workforce. However, failing to comply with HR regulations and laws can result in costly fines, penalties, and even legal action. PEOs have a deep understanding of HR compliance issues that can help businesses navigate the complex regulatory landscape.

    Should you choose to partner with a PEO, you’re provided with guidance on everything from wage and hour laws to workplace safety regulations. PEOs can also help businesses implement policies and procedures that ensure compliance. You can rest assured that their HR practices align with the latest regulations, reducing the risk of costly fines and legal issues. This saves businesses money and frees up time and resources that can be redirected toward core business activities.

    Improved employee satisfaction and engagement 

    Employee satisfaction and engagement are crucial for businesses looking to attract and retain top talent. Happy and engaged employees are more likely to be productive, creative, and committed to the company’s success. Fortunately, a PEO provides businesses with access to a range of HR services and resources that can improve employee satisfaction and engagement. They can help businesses create a positive workplace culture by providing the following:

    • Training and development opportunities 
    • Employee recognition programs 
    • Wellness initiatives 

    In addition, a PEO can help businesses offer more competitive compensation and benefits packages, including health insurance and retirement plans. Improving employee satisfaction and engagement allows businesses to create a more productive and motivated workforce, leading to improved business outcomes such as increased revenue and profitability.

    Comprehensive recruiting and onboarding practices

    Recruiting and onboarding are critical stages in the employee lifecycle and getting them right is essential for businesses looking to attract and retain top talent. However, these processes can be time-consuming, complex, and costly for businesses to manage in-house. This is where a PEO can help. PEOs provide businesses with comprehensive recruiting and onboarding practices that are designed to attract and retain top talent. They help businesses with the following practices:

    • Create job descriptions 
    • Screen candidates 
    • Conduct interviews
    • Negotiate job offers
    • Implement training programs 

    PEOs help businesses onboard new hires, including handling all necessary paperwork, setting up payroll and benefits, and providing training and development opportunities. By outsourcing recruiting and onboarding to a PEO, businesses can free up time and resources that can be redirected toward core business activities. This not only saves businesses money but also ensures that they’re able to attract and retain the best talent in the market, giving them a competitive advantage in their industry.

    Effort

    As a small business owner, you already juggle various tasks. Therefore, it’s crucial to ask yourself if you truly have the energy and inclination to engage in the day-to-day work of overseeing HR. Do you have the extra energy to handle the following tasks?

    • Recruit and train new employees
    • Administer payroll and benefits 
    • Document policies 
    • Develop employee handbooks
    • Track employee PTO
    • Write job descriptions 
    • Engage with potential job candidates 
    • Keep up with employment laws 
    • Research and compare benefits plans 

    The list could go on and on. If you’re honest with yourself, the answer would be no, which is perfectly normal. There’s simply not enough time in the day for you to manage all of these tasks on your own.

    GMS Has The Solutions You Need

    Imagine the relief of not having to worry about the countless responsibilities of HR management and instead entrusting these tasks to knowledgeable experts. This can be a massive weight lifted off your shoulders, allowing you to focus on the aspects of your business that you’re passionate about and that generate value.

    Stacey Larotonda, GMS’ Vice President of Client Services, expressed, “Think about your time spent on HR-related tasks such as recruiting, turnover, and onboarding a new employee. If you could relate that time to dollars, what would it be? Could you spend it doing something else, such as growing your business or implementing a new service? GMS helps take over HR functions that save you time which equates to money.”

    Partnering with a PEO allows businesses to achieve both hard and soft cost savings, making it a smart and strategic decision for any business looking to grow and succeed. Contact us today to learn more.

  • Employees are the backbone of every company, making employee retention vital. Business Insider called 2021 the “year of the quit.” In October of 2021 alone, 4.2 million people left their jobs in a mass workplace exodus known as the Great Resignation. Even now, the latest employee turnover statistics find that one-third of employees quit after six months of being on the job.

    Employee retention is about not only keeping employees happy and engaged but also setting your business up for long-term success. Let’s examine why turnover happens, how much it can cost a business, and how your business can reduce high employee turnover.

    What Is Employee Turnover And What Causes It?

    Employee turnover is defined as the number or percentage of employees that leave a company on a monthly, quarterly, or annual basis. Employee turnover can be voluntary (the employee chooses to go) or involuntary (you decide to terminate the employee). Regardless of who made the decision, high employee turnover is an indication that employee retention is low. There are various reasons for this, including:

    • Employee burnout
    • Inconsistent expectations set by managers and supervisors
    • Lack of employee appreciation and recognition
    • Lack of professional growth and career advancement
    • Low pay
    • Less comprehensive benefits
    • Poor workplace culture

    What Is The Cost Of Employee Turnover?

    There are many ways that losing an employee can hurt your bottom line. Turnover creates several direct and indirect costs that affect your business, including:

    • Hiring expenses: It costs money and time to advertise for a new position, interview candidates, perform background checks, and hire a candidate.
    • Productivity loss: While a company looks for a new employee, other employees might have to cover that employee’s tasks while taking care of their own, resulting in productivity loss.
    • Training issues: New employees need to be onboarded and trained, and it takes the average company 31.5 hours to train a new hire, which, on average, costs $1,888 for companies with fewer than 500 employees.
    • Lower employee morale: Low employee morale leads to increased absenteeism, costing an organization money and productivity.

    The exact costs caused by turnover can vary from employee to employee. Investopedia reported that it costs a company, on average, $3,500 in turnover costs to replace an employee only making $8 an hour. Their report also shows that it takes up to six months or more for a company to break even on its investment for a new hire.

    Salaried employees who leave cost businesses much more than their hourly counterparts. The Society for Human Resource Management (SHRM) found that turnover costs an average of half to three-quarters of an employee’s salary. For someone making $100,000, that’s a potential loss of $50,000 to $75,000 caused by turnover. Those numbers can range even higher for more specialized or upper management positions. For salaried employees, LinkedIn reported that turnover costs can cost 1.5-2 times their salary.

    A group of coworkers strategizing how to reduce high employee turnover.

    Different Ways Small Businesses Can Reduce High Employee Turnover

    Employees are more likely to stay at a company that they feel meet their needs on multiple levels. The following measures can help you reduce high employee turnover.

    Offer your employees competitive pay

    In 2021, Pew Research Center reported that 63% of employees left their jobs because of low pay. If you find that employees are regularly leaving for more money elsewhere, it may be time to examine your compensation structure to see if you’re competitive with the rest of the industry.

    You may also want to identify specific employees who would be particularly painful to lose. Sometimes paying an employee a few thousand dollars more is a smart way to retain top talent and lessen the chances of losing tens of thousands of dollars in turnover costs.

    Provide your employees with comprehensive benefits packages

    An alternative to paying employees more money is enhancing your benefits package. According to the Association of International Certified Professional Accountants (AICPA), 80% of Americans prefer workplace benefits over extra salary. Policy Advice also reported in 2021 that only 49% of the country’s total population receives group health insurance.

    If your company isn’t a part of this percentage, you’ll be more likely to recruit and retain more employees by offering them group health coverage. If your company is a part of this percentage, you can offer supplemental benefits to give your company an even greater competitive advantage. These benefits include:

    Foster workplace flexibility

    Allowing hybrid or remote work styles gives your business a competitive edge when it comes to retaining talent and recruiting new employees. A 2022 poll conducted by Forbes revealed that 63% of employees would feel more empowered if they had more flexibility. In addition, employees say having the freedom to choose when to come into the office matters as much as traditional benefits such as a 401(k) plan.

    Flexibility can also help eliminate or potentially offset turnover costs in other surprising ways. A Gartner, Inc. CFO survey revealed that 74% of companies planned to permanently shift to remote work after the pandemic ended, partly because of a decrease in operating costs and increased business profits. It Is estimated that business owners can save up to $11,000 a year by switching to remote work because they’ll pay less in overhead and utility costs.

    Make recruiting and retaining employees a priority

    An excellent hiring and onboarding experience can help limit the odds that new hires will leave within their first year. According to the Brandon Hall Group, a well-organized onboarding process improves new hire retention by 82%.

    For this reason, many companies outsource a company to take care of their employee recruiting services. You can partner with a professional employer organization (PEO) to write a quality job description that attracts top talent. Also, recruitment process outsourcing (RPO) reduces recruitment costs, ensures candidate quality, and uses applicant-tracking systems (ATS) to lead to cost savings and an improved recruitment process.

    Care about culture

    Even though it’s almost been a year since the Great Resignation, employees leaving their jobs is still trending. A 2022 survey from Flex jobs revealed that 62% of people leave their jobs because of company culture issues. Implementing a positive workplace culture includes:

    • Creating employee recognition programs
    • Setting clear and consistent departmental goals
    • Promoting diversity and inclusion
    • Accepting and utilizing your employees’ feedback

    You also want to create a workplace culture that doesn’t lead to employee burnout. Employee burnout leads to more absenteeism, resulting in lower productivity and higher profit loss. Offering your employees ample paid time off (PTO) ensures that they return to work feeling revitalized and refreshed. Ernst & Young reported that for every 10 hours of PTO taken, employee performance ratings improve by 8%. Unsure of how much PTO to offer your employees? Check out our post on How To Create A PTO Policy For Your Business.

    Analyze employee turnover

    If you have high employee turnover, it’s best to analyze why. One way to do so is by implementing employee exit interviews and surveys and looking at the data. Staff feedback about current workplace culture and practices is also helpful and can help identify potential reasons employees are leaving your company.

    Save Time And Money By Reducing High Employee Turnover

    It’s not easy to find good employees, and it’s even harder to replace them. Between turnover costs and the impact of losing good talent, companies must have retention and recruitment strategies in place to protect their bottom line.

    Of course, employing those strategies takes a lot of valuable time. That’s why GMS partners with employers to help you save time and money and reduce high employee turnover. Contact GMS about our benefits administration, recruiting, onboarding, and training services today.

  • Once you’ve hired your employees, it’s important to keep them happy on the team. In addition to the cost benefits of employment continuity, there are also morale and productivity benefits.

    Now that you’ve got great workers, how do you keep them?

    • Train your managers.
      Much of the time, employees do not leave organizations—they leave managers. You may have excellent managers that can perform many functions of the job, but if you don’t have a manager in place that knows how to effectively manage, motivate and treat employees fairly, you will face employee dissatisfaction and turnover.
    • Offer extrinsic and intrinsic rewards.
      Yes, you need to make sure that pay, benefits and bonuses are equitable within your geographic area and industry (extrinsic reward). But when employees are motivated only by financial incentives, they tend to focus more on the financial reward than doing good work. Employees don’t stay just for the pay. They also need to know that their work makes a positive difference to the goals of the company, their managers, customers and fellow employees (intrinsic reward).
    • Consider company culture during the hiring process.
      A candidate may possess all the skills necessary to perform the job, but if they are not a good fit with your company culture and fellow employees, they are not a good fit for the company. Hiring them anyway will result in increased turnover.
    • Promote from within.
      When employees are given the opportunity to create a career path within their company, they are motivated to stay. However, if good, qualified employees are passed over for promotions or desired lateral moves, they will leave and go to a company that will recognize and reward their efforts.
    • Use satisfaction surveys and foster engagement.
      Ask your employees what’s important to them, what’s working and what’s not. Yes, in some instances you may open for the door for negative feedback, but the majority of employees will appreciate that you care what they think. After all, they are performing the job every day and can give you the best feedback and offer great suggestions for improvements or changes.
    • Give frequent feedback.
      Don’t wait until review time to give feedback. Your employees want to know how they are doing and how they can improve their performance. Don’t be negative. Give clear examples and specific tactics they can use to improve their performance. Set goals together. Engage your employees by asking what they can do to resolve any performance issues. Don’t forget to give positive feedback to those who are doing a good job. Nobody wants to hear about their performance from their manager only when it is negative.
    • Encourage executive conversations.
      Employees want to hear from executive level management about what’s happening in the company—the good and the bad. Did you have a really good year? Let your employees know and thank them for their part in it that success. Take time to share your goals for the future of your company with your employees. Help them to have a clear understanding of their role in meeting these goals. If there are major changes in your organization, your employees need to hear that from you. Changes can often cause fear and stress. You need to address these changes and alleviate your employees’ concerns.
    • Recognize employee successes.
      Appreciation is a fundamental human need. This is one of the most important factors in employee motivation and retention. Employees need to feel connected to their organization and know that their work matters. Recognition does not have to be complicated. If an employee is consistently doing a great job or excelling on a particular project, let them know. Send an e-mail, write a letter. Even a high five and “great job!” from you can mean a lot. Be specific when you express your recognition. This can be especially influential when it comes from top management.
    • Offer autonomy.
      Employees want to have direction from their manager, but they also value a certain degree of autonomy in their jobs. Employees need a clear job description, and their manger must clearly express what their expectations are from an employee for their overall performance and day to day responsibilities. With this clarity, an employee can direct their work flow and performance without being micromanaged. The employee can take ownership of their role and responsibility for their own performance.
    • Facilitate teamwork.
      People spend a large majority of their time at work and with their fellow employees. It is important to build strong, functional, well-led teams. Successful teams communicate, are respectful of other team members, and are focused and committed to their organization and to achieving goals. Good teamwork facilitates positive relationships with fellow coworkers. It helps bond them together as they work to achieve common goals—an important factor in retaining employees.

    ***

    Your employees are the backbone of your company. If your employees are happy, it will show in their performance—and it will be one the most important factors in retaining your customers and increasing the overall profitability of your organization.

    ***

    Check out Part I of this series: Employee Retention: What Does Employee Turnover Cost?

    ***

    “Happy Coffee,” © 2012 Jim Wolffman, used under a Creative Commons Attribution 2.0 Generic license.

  • Sometimes simple gifts or notes won’t cut it when it comes to rewarding an employee. Earlier this month, we provided nine gift ideas and eight free suggestions for good employees, but this post is for bosses who are looking for some alternative ways to show a worker just how much they mean to a company.

    Consider some alternative ideas for rewarding employees, such as letting them work from home for a day.

    Five Alternative Employee Rewards

    While notes and coffee make for nice treats, sometimes an employee deserves a little something extra. If you really want to reward an employee for doing a great job, consider one of these ideas:

    • Offer to swap a task with them for a day or week
    • Reserve them a special parking spot for a week or month
    • Send something personalized to their significant other  or treat both of them to dinner
    • Let them work from home for a day
    • Offer to let them represent the company at a work conference so that they can get more experience and get out of the office

    Appreciating Your Employees

    Every employee is different, so some reward ideas may work better for some people than others. The same goes for businesses. For example, bringing a pet in to work may be out of the question at some companies, but others might see it as a great idea to improve morale. Choose a reward option that best fits your company and go from there.

    At GMS, we know how important your employees are. Contact us today to see how partnering with a Professional Employer Organization can help you and your workers.

  • A happy employee is a good employee. Rewarding employees for their hard work shows that you appreciate them, which can in turn give them extra motivation to not only maintain their quality of work, but exceed it.

    Whether you’re rewarding one particular employee or a group of people, a special gift or show of thanks can make a big difference.

    Reward good employees to show your appreciation.

    Nine Ways to Reward an Employee

    People like to feel appreciated, so a gift or a special treat can not only increase morale, it can help drive the employee to feel even more passionate about his or her job. Try treating an outstanding employee with one of the following nine rewards:

    • Throw a pizza party to celebrate
    • Buy the office donuts and announce that it’s in honor of the outstanding employee
    • Gift them flowers or candy
    • Take them out to lunch
    • Give them a personalized card with a gift card inside
    • Give them a framed photo that’s signed by the rest of the team
    • Send a gift basket to their residence
    • Give them a certificate for a free car wash
    • Give them an extra-long lunch or some comp time

    Match the Gift to the Employee

    Each of the listed treats are great ways to reward an employee, but different people may value some rewards more than others. Have a worker who loves coffee? A gift card to the coffee shop of their choice would be a great gift. If an employee spends a lot of time taking their kids to various activities, some extra free time could be a welcome bonus.

    Another way to reward your employees is to offer them a robust benefits package. If you are looking to partner with a Professional Employer Organization to manage your HR, contact us today to find out how GMS can help you keep your employees happy while saving some money in the process.

  • As we mentioned earlier this month, it’s good to reward your employees. However, sometimes you want to reward an employee, but you have a strict budget. Even if you don’t have a spare few bucks to spend, there are plenty of ways to show your appreciation to a worker without having to take out your wallet. 

    Even simple rewards can make an employee feel appreciated.

    Eight Free Ways to Reward Employees

    You don’t always have to spend money to show appreciation. There are plenty of ways that you can thank your employees for their hard work. Here are eight different ideas of how you can treat your workers for free:

    • Let them dress casually for a day
    • Give them some freedom with their work schedule
    • Feature them in a company newsletter
    • Arrange for a boss several levels up to stop by and say thanks
    • Honor them at the start of a staff meeting
    • Congratulatory company email
    • Post a thank you note on their door or desk
    • Send them a sincere, handwritten thank-you letter

    Small Things Matter

    It doesn’t take much to make someone feel appreciated. Even a simple, genuine “thank you” can show that a worker that they’re doing a good job.

    Another way to help your employees is by partnering with a Professional Employer Organization. If you’re looking to save money on your HR management, contact us today to find out how partnering with GMS can keep your employees covered.