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  • Handling the complexities of HR administrative duties is daunting for businesses of any size. From managing payroll to ensuring compliance with labor laws, the demands of HR management can quickly consume valuable time and resources, particularly for small to mid-sized businesses. However, partnering with a professional employer organization (PEO) can alleviate these burdens.

    A professional employer organization (PEO) enables businesses to outsource various aspects of human resource management, including payroll processing, benefits administration, workers’ compensation, and more. Through this partnership, you retain control over important decisions for your business, while the PEO handles administrative tasks to streamline operations and improve efficiency.

    The transition process to a PEO can be a pivotal moment in your business’s journey. This transition is essential as it will significantly impact your success to leverage the benefits of outsourcing HR functions. Thus, understanding and effectively managing this transition is crucial for maximizing the potential benefits of a PEO partnership.

    Understanding The Need For A PEO

    Many small business owners turn to a PEO to alleviate the stress of juggling numerous HR responsibilities on top of managing everyday operations. If you’re like many other small business owners wearing multiple hats, outsourcing your HR functions to a PEO can lead to a plethora of benefits for your business, including:

    • Saving money: Leveraging economies of scale, PEOS can negotiate better rates for services like health insurance, retirement plans, and other employee benefits. This strategic advantage enables PEO to provide cost-effective solutions tailored to your exact needs.
    • Access to HR expertise: PEOs employ seasoned HR professionals with expertise in various areas of HR management. By tapping into this knowledge pool, you can access strategic guidance, best practices, and personalized support for your business.
    • Compliance assistance: Staying compliant with federal, state, and local employment laws is crucial for businesses of all sizes. PEOs specialize in navigating complex regulatory frameworks, providing ongoing guidance and support.
    • Risk mitigation: PEOs can help reduce compensation costs and address Occupational Safety and Health Administration (OSHA) concerns while establishing a culture of workplace safety. Risk management services offer solutions for current issues and work to prevent future incidents.

    Finding The Right PEO

    Once you decide that partnering with a PEO is best for you and your business, the next step is to find one that aligns with your goals and needs. Choosing the right PEO partner requires careful consideration and thorough evaluation. Learn how you can assess the fit and find the PEO that best aligns with your business needs:

    1. Conduct an audit of current HR processes: Before choosing a PEO, conduct a comprehensive audit of your current HR processes, policies, and documentation. Identify areas that may need improvement or updating to ensure that all necessary HR documents are organized and up-to-date. This audit will not only help you better understand your HR needs but will also clarify your requirements when searching for a suitable PEO.

    2. Research options: Start by conducting comprehensive research to identify potential PEO partners. Use online resources, industry publications, and professional networks to compile a list of reputable PEOs that serve businesses like yours. During your research phase, consider factors such as industry experience, geographic coverage, and service offerings.

    3. Evaluate services: Once you’ve identified a list of potential PEO candidates, it’s essential to evaluate the range and quality of their services. Look beyond basic HR administrative functions and consider additional services such as employee benefits administration, risk management, payroll processing, and HR technology solutions. Assess whether the PEO’s service offerings align with your current and future HR needs.

    4. Engage in consultations and ask questions: Before making a final decision, schedule meetings with your shortlisted PEO candidates to discuss your specific needs and objectives. Prepare a list of questions to ask during these meetings, covering topics such as:

    • Their experience working with businesses of similar size and industry
    • Service agreements, pricing structures, and contract terms
    • HR technology platforms and the tools they utilize
    • Employee benefits offerings and customization options
    • Compliance support and risk management strategies
    • Communication channels and ongoing support availability

    Use these consultations to assess the PEO’s responsiveness, communication style, and willingness to customize solutions to meet your needs. Pay attention to how well the PEO understands your business and whether they demonstrate a genuine interest in helping you achieve your HR goals.

    Steps For A Smooth Transition

    Once you’ve selected the right PEO for your business, it’s time to focus on the transition. Careful planning and preparation are essential to ensure a seamless and secure transition from internal HR management to your new PEO partner. Follow these vital steps when going through the switch:

    1. Communicating with your employees: Open and transparent communication is key to effectively managing the transition. Inform your employees about the decision to partner and the reasons behind it. Be prepared to address any questions or concerns that may come up and reassure them of the benefits it will bring to them. You should keep your team updated on the progress of the transition and involve them in the process where appropriate to foster buy-in.

    2. Identifying key stakeholders and assigning roles: Specify individuals or teams within your organization who will oversee different aspects of the transition, such as data migration, employee training, and communication with the PEO. Establish clear lines of communication and accountability to ensure that each stakeholder understands their role and appropriately contributes to the transition process.

    3. Migrating the data: Support a smooth and secure transition of HR data to the PEO’s systems by developing a data migration plan. Collaborate closely with the PEO to determine the data formats, timelines, and processes for transferring employee information, payroll records, benefits data, and other relevant HR data.

    4. Onboarding employees: Coordinate with your PEO to develop a comprehensive employee onboarding process that introduces them to the new HR systems, policies, and benefits in a straightforward manner. Train and support employees as they navigate the transition to promote a positive onboarding experience.

    5. Monitoring compliance and performance: Establish protocols for ongoing compliance monitoring and performance review in collaboration with the PEO. Define key metrics and benchmarks for evaluating HR performance and compliance with legal requirements. Regularly review performance metrics and compliance reports to identify areas for improvement and ensure continued alignment with organizational goals.

    Tips For Organized Transition Management

    The transition process can seem overwhelming, but with careful planning, you can minimize disruptions and maximize success. The following can help keep you organized:

    Develop a detailed implementation plan

    Create a comprehensive transition timeline and checklist to guide the implementation process. Define key milestones, deadlines, and tasks to ensure a structured and organized transition.

    Appoint a transition leader

    Assign a dedicated transition team or point person to oversee the implementation process. Establish clear roles and responsibilities so team members feel empowered to effectively collaborate with the PEO and other stakeholders.

    Prepare for challenges with a contingency plan

    Anticipate potential challenges and develop contingency plans to address them proactively. Identify potential risks, such as data migration issues or employee resistance, and establish mitigation strategies to minimize their impact. Stay agile and responsive to emerging challenges to foster a smooth transition process.

    Document transition processes and decisions for future reference

    Document all processes, decisions, and agreements related to the transition for future reference. Maintain detailed records of meetings, discussions, and action items to facilitate continuity and accountability. Create a centralized repository for documentation to ensure easy access and retrieval by relevant stakeholders.

    Best Practices For Maximizing PEO Partnership

    Now that you have successfully transitioned your business to partner with a PEO, what’s next? You have a wealth of resources and expertise at your disposal, but consider the following to make the most of your new collaboration:

    Establishing clear lines of communication with the PEO

    Effective communication is the cornerstone of a successful PEO partnership. Establish clear channels for communication with your PEO, including designated points of contact and regular check-in meetings. Foster open dialogue to address any concerns, share updates, and collaborate on strategic initiatives.

    Leveraging resources and expertise

    Tap into the resources and expertise offered by your PEO to drive strategic HR initiatives. Collaborate with your PEO to develop tailored HR strategies that align with your business goals and objectives. Utilize their insights and best practices to optimize recruitment, talent development, and employee engagement initiatives.

    Regularly reviewing and optimizing services

    Consistently review the performance of PEO services to ensure alignment with your evolving business needs. Collaborate with your PEO to identify areas for improvement and optimize services for maximum efficiency and effectiveness.

    Implementing a feedback system

    Establish a feedback mechanism to provide ongoing input to the PEO and foster continuous improvement. Encourage employees to share their experiences and suggestions for enhancing HR services. Use feedback to identify strengths, address concerns, and drive innovation within the partnership.

    By implementing these best practices and tips for organized transition management, you can optimize your partnership with a PEO and achieve your HR objectives with confidence and efficiency. With clear communication, strategic collaboration, and proactive planning, you can navigate the transition process smoothly and unlock the full potential of your PEO partnership.

    Choose GMS For A Seamless PEO Transition

    As you start on your journey to transitioning to a PEO, selecting the right partner is paramount to success, and GMS stands out as a trusted partner. With over 25 years of experience, we understand small businesses’ unique needs and challenges. We’re committed to providing comprehensive HR solutions tailored specifically to your business needs. From ensuring workplace compliance to handling payroll, GMS has a qualified team ready to support you and your business.

    Take the next step towards optimizing your HR operations and achieving your business’s full potential by partnering with GMS. Contact our team of HR experts today to learn more about how we can support your PEO transition journey and help you unlock your business’s full potential.

  • Running a small business gives you the freedom to set the rules, but that doesn’t mean you’re free from laws and regulations. From employment laws to safety standards, staying on the right side of compliance is crucial. These continuously evolving laws aim to ensure fairness, safety, and accountability in business operations. Failure to meet compliance can result in severe consequences such as fines, legal liabilities, and reputational damage.

    It can be difficult to keep track of every single law and avoid non-compliance fines on top of handling the other responsibilities necessary to run your business. Investing in human resource outsourcing through a professional employer organization (PEO) can save you time and money, allowing you to maintain focus on operating your business. By managing HR functions, a PEO can help your business stay in line with complicated laws and regulations.

    The following dives into how non-compliance can cost your business money and how a PEO can help manage these essential tasks.

    Non-compliance Risks And PEO Solutions

    Workplace safety

    Workplace safety is a crucial aspect of sustaining a healthy work environment, as these practices and procedures protect employees and prevent accidents. The Occupational Safety and Health Administration (OSHA) takes safety seriously and will issue significant fines if your workplace is not compliant. According to the OSHA Penalties list, serious violations can cost a business $16,131 per violation. It’s 10 times that amount for willful or repeated penalties.

    Partnering with a PEO for risk management services can provide resources and expertise to uphold safety standards and keep your business compliant. A PEO can complete regular risk inspections and catch hazards before an incident occurs, saving your company from potential fines. In addition to helping you steer clear of expensive OSHA fines, workplace inspections and guidance on compliance can make your work environment safer and minimize the risk of workplace incidents.

    Hiring

    Hiring employees can be a costly experience if you aren’t compliant with appropriate policies and practices. With several laws enforced by the Equal Employment Opportunity Commission (EEOC), companies must stay informed to avoid legal pitfalls. Missteps during the hiring process can lead to lawsuits from disgruntled applicants over improper job applications, discrimination, or other issues. These lawsuits are not only costly, but they can tarnish your business’s reputation.

    Acquiring HR services through a PEO can help you avoid these hiring mistakes and possible lawsuits. From cohesive hiring and onboarding to HR auditing, a PEO like GMS offers plentiful solutions to streamline your HR processes. With expertise in HR regulations, a PEO can ensure compliance and safeguard your business against legal liabilities.

    Health care

    Under the Affordable Care Act (ACA), businesses with 50 or more employees or full-time equivalents (FTEs) are required to offer health insurance coverage. Failure to offer coverage under current legislation could end up costing a business thousands of dollars each month, depending on the number of employees at your company and how or if you have offered employees coverage in the past. Since the specifics can get complicated, use this simple guide from The Henry J. Kaiser Family Foundation to see where you fall.

    One of the best ways to maintain compliance is by collaborating with a PEO to find a group health insurance plan that makes the most sense for your business and employees. A PEO can negotiate with insurance providers for competitive rates so you can receive premium care at a reduced cost. PEOs also handle administrative tasks associated with managing health insurance, including keeping up with health care compliance regulations.

    Payroll

    Managing payroll comes with a host of tax obligations for businesses. Mishandling payroll or filing inaccurately can result in hefty penalties due to non-compliance with tax regulations. In fact, if there’s negligence or disregard for rules or regulations, the accuracy-related penalty stands at 20% of the tax underpayment attributed to these actions. Failing to file on time can also be costly, with fees increasing for each month overdue. The Failure to File penalty is 5% of the unpaid taxes for each month that a tax return is late, capped at 25% of your unpaid taxes. These penalties highlight the importance of timely and accurate payroll management practices to ensure compliance and avoid financial setbacks.

    By optimizing payroll management, a PEO can efficiently handle responsibilities such as strategic planning, processing payroll, benefits administration, and more. A PEO like GMS not only offers payroll administration services but also provides payroll tax management. With a PEO, businesses can benefit from expert assistance navigating complex tax regulations, ensuring accurate tax filings, and avoiding expensive penalties.

    Stay Compliant Through Changing Regulations With GMS

    Some businesses need help remaining compliant with every existing rule and regulation. It gets even more complex when laws are created or updated. A PEO like GMS has a dedicated team of HR specialists who can help you stay up-to-date on the legislation and regulations, keeping your business compliant and avoiding penalties.

    With a PEO, you don’t have to spend hours trying to make sense of every little detail concerning laws and regulations that may affect your business. Our experts handle the complexities of compliance, so your business is safer and stronger in the long run. Contact us today to talk about how GMS can help your business!

  • Navigating HR responsibilities is a complex task, and while there isn’t a perfect approach to managing them, several courses could land you in hot water. Employers often overlook their HR duties, setting up policies and procedures only to leave them for long periods without review.

    As a small business owner, you have a lot on your plate, and though you may not be intentionally neglecting your HR responsibilities, things slip through the cracks. Creating and implementing a plan for your company’s HR needs is the best way to ensure your business is protected and compliant.

    But what’s the right choice for your company – building an in-house team of HR experts or partnering with a professional employer organization (PEO) to tackle your HR needs? While only you can answer that question, we’ve compiled a short comparison of your options to help you make the best decision for you and your business.

    Cost Of A PEO VS. In-House HR

    It’s essential to understand the cost of each option to determine the best option for your business. While PEOs can offer access to various benefits, they may not be the best choice depending on your goals, business size, and current needs.

    Economies of scale vs. variable cost

    One of the most compelling financial arguments for partnering with a PEO is the benefit of economies of scale. The co-employment model allows PEOs to pool employees from multiple client companies, creating a larger collective workforce. This scale enables PEOs to negotiate better rates for health insurance, retirement plans, and other benefits compared to what a small or medium-sized business could achieve on their own. If you’re struggling to offer competitive benefits due to high costs, a PEO could be a game-changer, providing access to premium benefits packages that attract and retain top talent.

    Depending on your size and complexity, you may need to outsource certain services to third parties, such as legal counsel for compliance issues or specialized payroll services, if you opt for an in-house HR team. These variable costs can fluctuate significantly, making budgeting for HR more challenging.

    While larger companies may absorb these costs more easily, small to medium-sized enterprises (SMEs) must carefully consider these potential expenses, as they can significantly impact the cost-effectiveness of maintaining an in-house HR department.

    Fee structure vs. salaries and overhead

    PEOs typically charge businesses a percentage of the overall payroll or a per-employee per month (PEPM) fee. This structure allows PEO services to scale seamlessly with your business as it grows, with the key advantage being the bundling of services. However, for some companies, particularly smaller ones with minimal HR needs, the cost of partnering with a PEO might exceed the expense of maintaining a small, in-house HR team.

    Opting for an in-house HR department introduces different costs, primarily the salaries for your HR professionals, in addition to the overhead associated with supporting these functions internally. This includes the cost of HR software platforms, ongoing training and development for HR staff, and other resources necessary to maintain an effective HR department.

    Services Provided By PEOs Vs. In House HR

    PEOs offer comprehensive HR services, including managing payroll, administering benefits, handling workers’ compensation claims, and overseeing risk management. In other words, PEOs are a one-stop shop where the complexities of HR management can be outsourced to a team of specialists, allowing your company leaders to focus on core business strategies and growth. The breadth of services offered by PEOs can be particularly appealing if you want to streamline operations and reduce the administrative burden associated with HR tasks.

    In addition, partnering with a PEO can help ensure compliance with federal and local labor laws and implement best practices in HR management. As rules and regulations are subject to change, PEOs can give you peace of mind that your policies are up-to-date, and your business is safeguarded. PEOs offer the support needed to manage a workforce effectively, avoiding common pitfalls and legal risks, particularly for SMEs.

    Unlike the co-employment model used by PEOs, traditional HR management means that all employment tasks, responsibilities, and liabilities remain solely within your company. If you prioritize a unique company culture or have specific HR management needs, in-house HR provides the flexibility to implement customized solutions. This direct relationship between employer and employee can facilitate a closer connection and potentially more personalized management of your team’s concerns and needs. However, it also means that your business retains all legal responsibilities and risks associated with employment – so you’ll need to stay vigilant to protect your team and your business.

    Value Of PEOs Vs. Traditional HR

    Beyond the day-to-day management of HR tasks, PEOs bring a strategic edge to human resources planning. With access to extensive data analytics and industry insights, PEOs can guide businesses in making decisions that enhance HR functions. This strategic approach can lead to higher employee retention rates and increased job satisfaction, as initiatives are backed by solid data and tailored to meet your team’s and your company’s needs.

    Having an on-site HR team means employees can access HR support whenever needed. An in-house team is also deeply integrated into a company’s culture and daily operations. This proximity allows HR professionals to develop a nuanced understanding of your company’s ethos, values, and interpersonal dynamics, enabling them to tailor HR strategies and initiatives that align closely with your business goals.

    Ultimately, a thorough cost-benefit analysis should guide you in choosing between partnering with a PEO or hiring in-house HR professionals. Your decision should not only fit within your financial framework but also align with your long-term business objectives. In other words, consider the immediate costs and savings in addition to the broader impact this decision will have on your company’s operations, culture, and growth potential.

    How GMS Can Help

    GMS provides comprehensive HR solutions to small, medium, and large companies throughout the United States. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    If you haven’t made up your mind and are still turning over that question of which option is the best one for you, GMS can help. Our primary goal is to help you navigate your options with clarity and confidence. Contact us today, and let us help you make the most informed decision possible.

  • Employee handbooks are not just an easy-to-access resource for your team but an essential component of your company’s infrastructure. They provide employees with a clear understanding of company policies, expectations, and culture, making it crucial to have a comprehensive and up-to-date handbook. However, the value of an employee handbook diminishes if it’s not regularly reviewed and updated.

    Leaving your handbook unattended on the shelf year after year without revisions can result in several negative outcomes, such as reinforcing outdated and potentially non-compliant laws and regulations. Employment laws, workplace safety standards, and industry regulations evolve. Failing to update your handbook accordingly can leave your business vulnerable to legal challenges, financial penalties, and damage to your business’ reputation.

    What Is An Employee Handbook?

    Employee handbooks are an excellent tool for business owners to share relevant information with employees. Separate from an employee agreement, which details salary, job title, job description, etc.; employee handbooks are an opportunity to provide easy-to-understand explanations of your policies and procedures, including company programs such as paid time off (PTO), sick leave, and more. While you should regularly share reminders with your team regarding specific policies and company programs, employee handbooks allow staff to review information whenever needed.

    Benefits Of Having An Employee Handbook

    Handbooks are a foundational tool for everyone on your team, from your newest hire to senior leadership and managers. They ensure everyone operates from the same set of standards, which is essential for creating a cohesive company culture. In addition, they help set expectations and provide clarification when challenging questions or situations arise.

    For new hires, employee handbooks are an excellent resource for learning about your company’s mission and values. Onboarding is an overwhelming time for new employees; providing them with a handbook can help them review important information later when they are more comfortable in their new position.

    Furthermore, a well-structured employee handbook can significantly enhance decision-making by providing a clear framework for managers and employees. This clarity reduces the time spent on deliberations and increases the efficiency of resolving issues, allowing for more focus on productive work and innovation.

    Why Update Your Handbook?

    As your business grows and develops, so should your employee handbook. As laws evolve and new technologies emerge, your internal policies must adapt accordingly. Since your handbook is a key reference point, outdated information could lead to unintentional non-compliance. It’s essential to inform your team about these updates and incorporate them into your handbook. This ensures that everyone is in sync with your policies and procedures.

    In addition, updating your handbook helps:

    • Adapt to organizational growth: As your business grows, it may become subject to new regulations. For example, exceeding 20+ full-time or full-time equivalent (FTE) employees will bring your business under the purview of the Age Discrimination in Employment Act (ADEA). It’s crucial to regularly review and revise your policies to ensure compliance with applicable laws as your business evolves.
    • Health and wellness: Policies must stay current to reflect the changing health landscape and societal needs. The COVID-19 pandemic highlighted the need for flexibility in policymaking, as companies had to introduce or revise policies concerning leave, remote work, and bereavement to accommodate unprecedented circumstances. Your handbook should be responsive and allow for quick policy changes when needed.
    • Align with the current company mission: As your business develops, your core mission and goals may shift. Ensuring your handbook is updated will help keep your managers and employees aligned with your mission. This alignment is essential not only for internal work but also for presenting a consistent message to your clients and stakeholders. 
    • Ensure fair treatment: An updated handbook ensures you have proper policies to address potential issues. This includes establishing clear protocols for dealing with harassment and outlining the steps to take when employees do not comply with established guidelines. Such measures are crucial for maintaining a workplace where every team member is subject to the same rules and expectations, which in turn help promote a culture of fairness and respect.
    • Hold your team accountable: A handbook can safeguard your business. Having a paper trail of your policies and their updates in your handbook shows that you communicated them to your team. It keeps your staff aligned with your goals, and should any situation escalate to the point of employee termination, this documentation provides solid justification for the action taken due to non-compliance.

    When And What To Update

    Most information in your employee handbook won’t need updating very frequently, but it’s good practice to review your handbook on at least a yearly basis. Delaying this review can result in a backlog of necessary changes, significantly extending the time required to update the handbook. Unless your organization is experiencing rapid growth or undergoing shifts in its mission and values, an annual review will be enough to keep your handbook current and relevant.

    During your review, be sure to examine the following:

    • Federal and local laws and regulations
    • Wage and hour policies
    • Staff training and processes
    • Leave and benefits
    • Employee conduct policies
    • Technology and systems policies

    Reviewing your employee handbook will take time and can be done internally; however, it’s essential that an HR professional checks it. If you don’t have a designated HR professional on staff, partnering with a professional employer organization (PEO) is one way to ensure you’re up to date with best practices and are compliant with legal regulations.

    HR Outsourcing With GMS

    As a business owner, you may discover that you no longer have the capacity to manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. PEOs like GMS can manage a range of responsibilities for your business. By outsourcing aspects such as payroll tax to employee benefits and more, we save you time and money while ensuring your business’ compliance with local and federal laws. We focus on administrative work so you can focus on what matters most in your business.

    Our HR professionals are ready to help make your business simpler, safer, and stronger. Contact us today!

  • It’s likely that as a small business, you don’t have a dedicated HR team. You may divide the tasks amongst a group of people, you may spend your nights and weekends making sure you’re keeping up to speed on the various HR regulations out there, or, even worse, you ignore it all together and just ‘wing’ HR management.

    If you find yourself spending more and more time dealing with HR functions and less and less time growing your business, you have a couple options: hire a professional employer organization (PEO) to handle the tasks for you, or hire someone dedicated to the management of your HR needs.

    Of course, we’d love it if you chose the option of hiring a PEO, but if you opt for hiring an HR manager, we’ve compiled a helpful list of 8 traits you should watch out for.

    Multitasking is an essential skill for successful HR managers “inbox” by khrawlings is licensed under CC BY 2.0.[more]

    8 Traits of Effective Small Business Human Resource Managers

    1. Strong Communication skills

    HR managers must have the ability to interact with a variety of audiences – from executives, all the way to job applicants. More importantly, effective HR managers must be able to listen and take into consideration everything from employee concerns and comments about the workplace to executive speeches about strategy. 

    2. Organized 

    HR managers need to be quick and organized in order to keep up with ever-changing regulations. Organized files, strong time management skills, and personal efficiency are key to managing a company’s HR responsibilities.

    3. Fair & Ethical

    Basic principles such as fairness and equality are the foundation for fair employment practices, and it takes a clear understanding of employment and labor laws to support compliance with laws that regulate the workplace. HR managers are also the keepers of highly confidential information. You must trust that they will handle confidential information appropriately and never divulge it to any unauthorized person.  

    4. Compassionate

    HR managers will have to deal with sensitive issues. Whether it’s employee termination, employee leave due to medical issues, or issues surrounding workplace harassment; the HR manager will need to possess compassion and empathy in order to effectively navigate these tricky situations for the company.

    5. Multitasker

    HR managers, especially at small businesses, often wear many hats and are placed in the position of recruiter, benefits administrator, payroll processor and more. Balancing each of these responsibilities is essential and can lead to stress in the workplace…

    6. Balance stress management

    While some stress is common, HR managers shouldn’t feel overwhelmed or burdened to the point that their productivity suffers. Having a plan to deal with stress will help maintain a healthy work-life balance. Some tips to reduce stress include: take a deep breath or get up  and walk around, adding plants to the office (lowers noise levels), reduce interruptions and keep spaces organized.  

    7. Comfortable dealing with grey areas

    HR managers deal with many issues that are “in the grey area”. Discrimination, harassment, “reasonable” accommodation are just a few of the areas that HR managers have to be able to act with incomplete and “best available” information. It’s also key to know when it’s time to seek the professional help of colleagues, attorneys, and other experts. 

    8. Skilled conflict manager

    You may have noticed that not everyone gets along when they work together. In order to be productive, people must be able to at least work together civilly, and HR has to find ways to make that happen. As an HR professional many new and uncharted problems will come your way so a keen problem-solving ability is necessary. 

    What traits make your HR manager a superhero? Or what do you look for in a super HR manager? Share with us in the comments below. 

  • Why did you start your business? Maybe because you are good at doing something. Maybe because you can offer a service that not many others can.

    You worked hard to grow your business, to show everyone why they should use your company for their needs. You are a professional, and nobody knows your business better than you do. So why would you ever consider outsourcing back office tasks to a PEO if you can do them yourself?

    At the end of the day, we all want the same thing: to be successful. Sometimes, to succeed we need to embrace the fact that we can’t always do everything ourselves.

    Image of a human resources outsourcing company.

    Why it Can Pay to Outsource to a PEO

    PEO stands for Professional Employer Organization. Just like you are a professional in your industry, GMS is a professional in ours. If you care about your business and your employees, you want to make sure that your company is a well-oiled machine! That’s why our team of well-versed, educated, and honest specialists help small to mid-sized businesses thrive every day. 

    We believe that just because you don’t have thousands of employees doesn’t mean you shouldn’t have access to the same buying power or experts! 

    As a business owner, doing everything yourself can be overwhelming, especially when you find that some areas are getting neglected or are distracting you from the business. 

    By outsourcing basics like payroll management, workers’ compensation claims, benefits administration, and any human resource function to GMS, you can acquire better, less expensive services than if you were to go hire an individual to do that for you. 

    A PEO can help you go back to focusing on your business knowing that these things aren’t just being done, but that they’re being done right. Contact us today to talk to a GMS representative about how we can help you and your business.

  • The end of a calendar year usually causes business owners to do two things: Review the past year and learn from its successes and failures. They also start looking to the new year and set their expectations of what they want to accomplish. While a Professional Employer Organization (PEO) can’t help you with the former, it can help you tackle the latter.

    Image of a small business owner planning for 2018 HR challenges.

    HR Challenges for 2018

    Employee Benefit News recently published an online article about the 15 biggest HR challenges businesses will face in 2018. [link to https://www.benefitnews.com/slideshow/the-15-biggest-hr-challenges-in-2018]. The good news is that apart from cyber breaches and data security, a PEO can help your business with 14 of them.

    1. Republican administration and federal issues
    2. State and municipal issues
    3. Workforce planning
    4. Cyber breaches and data security
    5. Recruiting
    6. Technology
    7. Workplace violence and active shooter situations
    8. Employee leave
    9. Benefits and the Affordable Care Act
    10. Employee well-being and mental health
    11. Employee handbooks
    12. Drug testing and substance abuse
    13. Diversity and inclusion
    14. Pay equity and salary history bans
    15. Harassment

    Large companies with internal HR departments have the resources to hire people to help them navigate these minefields. How can a small business owner compete with that?

    The simplest way possible is to partner with a PEO.  A PEO works with small business owners to give them the same buying power and infrastructure as a large organization through a co-employment relationship. This relationship allows the PEO to act as a large company with the same buying power as any company with thousands of employees. It also gives small companies certified experts in payroll, taxes, benefits, risk management, and human resources, typically for less than it would cost to hire one of these people.

    Partner with a PEO to Tackle 2018’s HR Challenges

    Now, with the implementation of the federal government’s Certified PEO program, business owners can have even more confidence in the financial stability and liability assumption of a CPEO. If you have questions about how GMS can help you tackle the latest HR issues, contact us today.

  • As the years go by, HR administration continues to evolve. The growing need for improved operational efficiency and compliance has led more business owners to turn to HR experts for help managing crucial business functions. 

    This expansion has been so great that the Professional Employer Organization industry has nearly doubled to around $168 billion dollars in the past six-and-a-half years. The need for human resource outsourcing isn’t just a need for one or two different industries, as HR providers saw a 23 percent or greater increase in business from blue collar, white collar, and grey collar businesses. 

    While businesses often turn to PEOs for help with benefits administration and risk management services, there are other additional HR functions and benefits that have become more popular in recent years. Two of the more intriguing recent trends in human resource outsourcing is a move toward investing in online payroll and workplaces wellness programs.

     Image of a workplace wellness program, a recent human resource outsourcing trend.

    Online Payroll

    Technology is giving businesses a greater ability to track and store crucial business information. Outsourcing online payroll services to a PEO is one way businesses are taking advantage of advancing online capabilities to improve business efficiencies and save money.

    According to a survey conducted by cashflow management site Bill.com, nearly half of accounting professionals wish that they could eliminate paper checks. With online payroll services, you can. Nearly half of CEOs name sustainability as a top-three initiative for their organization, and a paperless workplace can help your business take a big step toward that goal.

    More businesses are turning to online payroll because it benefits your business, your employees, and the environment. Businesses benefit from a streamlined payroll solution that cuts down on management time and allows you to manage and access all your important information from anywhere. This easily-accessible system also makes it easier for employees to track time and access W-2s and paystubs. Finally, the lack of physical checks and files lowers your paper usage and storage, aiding the environment and allowing you to “save between $2.87 and $3.15 per pay run by paying employees electronically” according to Business News Daily.

    Workplace Wellness Programs

    These days, businesses are looking to pump up their health-related benefits offerings, especially workplace wellness programs and other related wellness perks. According to a research report by the Society for Human Resource Management, 24 percent of organizations increased wellness benefits in 2016, more than any other specific type of benefit. 

    Why are businesses gravitating toward adding wellness benefits? SHRM offers the following reasons:

    • 88 percent of organizations with a wellness program rated their initiatives as somewhat or very effective in improving employee health
    • 77 percent of organizations indicated their wellness program was somewhat or very effective in reducing health care costs
    • 53 percent of organizations wanted to create a culture that promotes health and wellness

    A workplace wellness program is a great way to benefit both your employees and your business by actively promoting a healthier lifestyle inside and outside the workplace. The CDC Foundation notes that the average productivity loss linked to absenteeism was $1,685 per employee. Promoting wellness can improve the lifestyles of your employees and help you cut down on productivity loss and rising healthcare rates.

    Take Advantage of HR Outsourcing Trends

    Whether you’re looking for help managing the latest HR trends or more traditional business functions, a PEO can be the way to go. A PEO can help you manage a wide variety of critical tasks through, offering a variety of the benefits associated with HR outsourcing, such as saving yourself time and money while protecting your business from compliance concerns or retention woes. Contact GMS today to talk to one of our experts about how we can help your business manage HR.

  • It’s difficult to run a small business without much support, which is why more employers are turning to human resource outsourcing. According to market research company Global Industry Analysts, Inc., the HR outsourcing market is projected to grow to nearly $54 billion by 2020 as business owners turn to other organizations for help managing important HR functions.

    So why have so many businesses turned to HR outsourcing? Here are four big reasons:

    • Time savings
    • Improved compliance
    • Better recruitment and training capabilities
    • Cost savings

    The benefits speak for themselves, so now it’s a matter of finding out exactly what business responsibilities you can outsource and which ones make the most sense for your business.

    Image of a woman selecting human resource outsourcing options for his business.

    What Falls Under Human Resource Outsourcing?

    Human resource outsourcing can involve more than just the hiring, training, and potential firing of employees. While those are important tasks, human resource management covers a wide range of other crucial administrative functions. 

    However, not every outsourcing company can handle every aspect of human resources. Some specialize in specific focus areas, leaving you out of luck if you need help with some tasks or forcing you to find another vendor if you have multiple functions where you could use assistance. 

    A Professional Employer Organization (PEO) allows you to turn to a single, trusted partner for all your human resources needs. A PEO provides comprehensive HR services for business of all sizes, including all the following functions.

    Traditional HR Responsibilities

    Your employees are a critical part of the success of your business. That’s why 78 percent of business leaders name retention as an important or urgent area of focus for their company. The right HR outsourcing partner can offer the HR support you need to improve retention rates. 

    Outsourcing traditional HR responsibilities to a PEO can help your business find the right employees for your business and prepare them for their roles through employee recruiting and training services. From there, a PEO can also provide performance management services to keep track of performance, develop rewards programs, and assist with promotions and terminations. 

    Payroll Outsourcing

    Payroll management is a time-consuming task that can consume your work schedule, with nearly 30 percent of small business owners spending more than six hours each week on payroll tax administration alone, according to the National Small Business Association. Failing to pay taxes on time or other related mistakes can also lead to financial penalties.

    A PEO can help you save time and money through payroll administration. This allows true payroll experts to manage your payroll taxes so you can reduce your tax liabilities and responsibilities and make sure that you’re compliant with any payroll rules and regulations. A PEO can also give you access to online payroll services, allowing you to keep track of payroll information, offer access to paystubs, and track time in one web-based location.

    Risk Management Outsourcing

    Another advantage of outsourcing HR is that it can help you can safeguard risk management practices associated with both workers’ compensation and unemployment claims. When it comes to workers’ compensation, you should worry about not only limiting injuries in the workplace, but also the ongoing costs of workers’ compensation insurance. 

    Whether you run a construction company or a quiet office, there is always the risk of a workplace injury. According to Occupational Safety and Health Administration, “it has been estimated that employers pay almost $1 billion per week for direct workers’ compensation costs alone.” A PEO can help you limit workplace injuries and rising costs through a combination of cost containment and loss prevention strategies. These include workplace safety measures, such as safety training programs, developing a safety manual, and creating guidelines that reduce injury risks. By minimizing exposure and keeping good records, you can receive rate discounts, as well as making your business a safer place.

    Another issue is the impact of unemployment taxes on your bottom line. While unavoidable, these taxes can be managed, you can still take measures to reduce them so that you limit the financial damage to your business. A PEO can create or improve employee handbooks and detailed job descriptions that make work expectations clear. PEO’s can also keep records of any written warnings, examples of poor performance, and other documentation that can help protect you against unemployment claims that will lead to higher rates.

    Benefits Outsourcing

    A good benefits package plays a key part in attracting and retaining key talent. Just consider the following information from a 2017 Harvard Business Review article on employee benefits:

    • Nearly three in five people name benefits and perks as a top consideration before accepting a job
    • 80 percent of employees would choose additional benefits over a pay raise
    • 88 percent of people said better health, dental, and vision insurance would receive either some or heavy consideration when choosing a job

    Employees appreciate great benefits, and outsourcing benefits administration to a PEO can provide you with more buying power to offer a better group health insurance coverage to your workers. Not only will this please your employees, it will as save you from spending time administering the plan yourself. A PEO can also offer assistance with other attractive benefits, such as:

    • 401(k) plans and profit sharing
    • Supplemental insurance plans
    • Workplace wellness programs
    • Telemedicine

    A Single Human Resource Outsourcing Partner

    Once you decide to outsource HR functions, you need to figure out who you’re going to turn to for help. With a PEO, you can work with a single company for all your HR outsourcing needs.

    As you can tell, there are several HR functions that require regular attention. Partnering with a PEO gives you access to HR specialists who specialize in all areas of human resources, allowing your business to take advantage of any or all the services we provide. Contact GMS today to talk to one of our experts about HR outsourcing and what we can do to strengthen your business and take the burden off your shoulders.

  • As a business owner, you get used to making tough decisions every day. One critical question is whether you should handle every human resource function internally or if it’s in your business’ best interest to consider outsourcing. 

    To insource or to outsource may not be as difficult of a question as you may think. Here are four reasons why it may make sense for your business to consider human resource outsourcing.

    Image of a human resource outsourcing company helping a small business owner.

    Time

    Your time is crucial. The problem is that you only have so much time to spread around, even if you’re working extra hours each week. 

    A survey by business advising organization The Alternative Board found that the average small business owner worked around 50 hours per week, but that only 32 percent of that time was spent working on the business itself. According to a survey by the National Small Business Association, roughly 30 percent of small business owners spend more than six hours each week on payroll tax administration, and that’s just one of many HR functions that you have to deal with. 

    You can’t slow down time, but you can outsource key HR functions. Not only will this free up critical time for you to spend on core business needs, your HR functions be handled by people who are experts in their respective fields.

    Compliance

    Let’s face it; you likely didn’t train to be a HR specialist. You may be able to handle many HR functions, but you might not have the time or know-how to keep up with labor and tax laws, compliance regulations, and avoid mistakes that could lead to everything from financial penalties to litigation.

    Regardless of if you run a small five-person organization or a business with 50 employees, there are specific HR processes that you need to follow. Over the past five years, compliance rules and regulations have increased, adding even more concerns for your business. These compliance laws cover everything from proper employee classification, safety requirements, and more. A PEO can help you track everything you need to know and help you stay compliant so that you avoid future penalties.

    Recruitment and Training

    A good company needs good employees. Outsourcing certain HR functions can help your business attract top talent and retain the workers you already have.

    Recruitment is about more than just hiring a job candidate; it’s about hiring the right candidate. A PEO can help you set up an efficient, organized process that allows you find people who are a good fit for your company. These experts can deal with the interview process, review applications, post job ads, evaluate candidates, and other time-consuming tasks, allowing you to speak to the most qualified candidates so that you can decide who’s right for your company.

    Once you hire a new employee, a PEO can also ensure that they receive proper training. The Society for Human Resource Management cites that “66 percent of companies with onboarding programs claimed a higher rate of successful assimilation of new hires into company culture.” A PEO can set up training programs that are customized to your business. This helps your new employees be properly prepared for their jobs so that they are more likely to stay at your company and succeed.

    Money

    Of course, the decision to outsource HR functions can come down to the investment. While some business owners might think of hiring an outside company as just another expense, professional HR management can result in notable savings across several HR functions.

    Remember how we already discussed how HR outsourcing helps you save time, stay compliant, and improve recruiting and training? There are plenty of savings to be found in all those areas.

    To start, time is money. The ability to free you up to work on building your business can be a huge asset to your business. That free time can be spent focusing on strategic planning, marketing efforts, and sales tasks, all of which can help you bring in additional revenue. That’s better than spending hours staying up-to-date on the latest compliance laws.

    Speaking of compliance concerns, those penalties can really cost your business. Avoiding HR penalties keeps you out of the government’s crosshairs, protecting your business from unexpected fees, such as payroll tax fines or penalties associated with a safety violation. In addition, a PEO can also employ cost-prevention strategies to help lower unavoidable expenses, such as unemployment or workers’ compensation rates. 

    There’s also all the costs associated with recruitment and training. In 2016, SHRM found that the average cost per hire is $4,129. Add that to an average cost of $1,208 for training and development and you have a pricey investment. A PEO can help your company make that investment worthwhile, finding and training the right person so that your new employee doesn’t leave in less than a year and force you to start the process all over again.

    Outsourcing your HR to a PEO can also lead to additional cost savings due to economy of scale. Since a PEO manages benefits administration and other HR functions for several companies, they can give your company greater buying power that can allow you to get more for your money. For example, your newfound buying power can give you access to a better benefits package, which can help you attract and retain that top talent you want.

    Invest in Human Resource Outsourcing

    Business owners have plenty to worry about. HR outsourcing is an investment that can help you strengthen your business and save you money in the process. Contact GMS today to talk to an expert about how a PEO can help your business through HR outsourcing.