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  • As a small business owner, you wear many hats – manager, leader, and mentor. When faced with an employee who isn’t meeting expectations, it’s essential to handle the situation constructively. Enter the performance improvement plan (PIP) – a structured approach that benefits your business and employees.

    What Is A PIP?

    A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement. Whether job-specific skills or soft skills such as leadership and professionalism, a PIP identifies where an employee falls short. Interestingly, PIPs aren’t just for underperforming employees; they can also guide high-performing individuals seeking career advancement.

    Why PIPs matter for small businesses

    1. Legal protection: PIPs protect your business from potential legal issues. By documenting performance concerns and providing clear expectations, you create a paper trail that safeguards your decisions.

    2. Productivity boost: Addressing underperformance promptly prevents productivity losses. A well-executed PIP can turn things around, benefiting the employee and the company.

    3. Positive company culture: PIPs reinforce a positive work environment. Employees appreciate knowing where they stand and receiving support when needed.

    4. Employee retention: Instead of resorting to termination, a PIP gives employees a chance to improve. Retaining talent is critical for small businesses.

    Creating An Effective PIP

    Crafting an effective PIP is a pivotal step for small business owners in fostering employee development, enhancing productivity, and maintaining organizational performance standards. To make it easy, we’ve created a step-by-step guide for you to follow to implement a PIP within your business:

    1. Assess the situation:

    • Determine if a PIP is appropriate for the specific employee
    • Consider the employee’s role, performance history, and potential for growth

    2. Develop a plan:

    • Collaborate with the employee’s supervisor to create a customized PIP
    • Specify areas for improvement, whether it’s technical skills, communication, or teamwork
    • Set clear expectations and realistic goals

    3. Meet with the employee:

    • Schedule a one-on-one meeting to discuss the PIP
    • Be empathetic and supportive – focus on improvement rather than blame
    • Involve HR if necessary

    4. Monitor progress:

    • Regularly check in with the employee
    • Provide constructive feedback and celebrate small wins
    • Adjust the plan if needed

    5. Evaluate results:

    • Assess progress within the specified timeframe (typically 30 to 120 days)
    • Determine if the employee has met the expectations outlined in the PIP
    • Decide on the following steps: continued improvement, termination, or other actions

    The Assistance Of A PEO

    PIPs are not punitive; they’re a lifeline for employees needing more support. Small business owners should embrace PIPs as a tool to foster growth, retain talent, and maintain a positive workplace. While we’ve provided you with the basics of creating a PIP, implementing it within your business is the next step. Fortunately, our HR experts at GMS are here to help; you don’t have to navigate this alone. Leveraging their expertise in performance management, employee development, and compliance, they assist you in crafting tailored PIPs and ensuring best practices. Ultimately, they’re here to drive performance improvement, foster employee success, and propel organizational growth. Contact us today to learn more.

  • In the bustling world of small businesses, where every decision counts and every action shape the company’s identity, core values serve as guiding stars, illuminating the path to success. But how do small business owners move beyond simple words on paper and root these values in their organization? Continue reading to learn how to go from articulating to implementing, exploring how core values can transcend and become the driving force behind every decision and interaction.

    Defining Core Values

    Core values are the deeply ingrained principles that guide a company’s actions; they serve as its cultural cornerstones. They encapsulate the beliefs, principles, and philosophies that define a company’s culture and identity. For small business owners, defining core values is not simply a box to check but a foundational step in shaping the company’s principles and direction.

    When considering core values for your business, choosing those that reflect the company’s identity, culture, and aspirations is essential. The following is a list of essential core values to consider:

    • Integrity: Upholding honesty, transparency, and ethical behavior in all business dealings.
    • Customer centricity: Prioritizing customer satisfaction and delivering exceptional experiences.
    • Teamwork and collaboration: Fostering a culture of collaboration, mutual respect, and shared goals among employees.
    • Innovation: Encouraging creativity, adaptability, and a willingness to embrace change to drive innovation.
    • Respect: Valuing diversity, treating everyone with dignity, and maintaining a respectful work environment.
    • Adaptability: Being flexible and responsive to changing market conditions, customer needs, and industry trends.
    • Inclusivity: Creating an inclusive environment where diverse perspectives are welcomed, respected, and valued.
    • Sustainability: Committing to sustainable practices and minimizing environmental impact in business operations.
    • Innovation: Encouraging a culture of creativity, experimentation, and forward-thinking to drive growth and differentiation.

    Small business owners must lead by example, living out the core values they proclaim and rooting them into all aspects of the business.

    Nurturing A Value-Driven Culture

    In small businesses, culture doesn’t happen by chance; it’s a deliberate creation nurtured by every interaction, decision, and celebration. Fostering a values-driven culture requires intentional efforts, from hiring practices and onboarding to performance evaluation and recognition. Aligning these practices with core values reinforces their significance and empowers employees to embody the company’s culture.

    Integration Into Daily Life

    Core values should fill every aspect of business operations, from the big strategic decisions to the smallest day-to-day interactions. Small business owners can weave their values into operational frameworks and decision-making processes. By embedding values into daily practices, businesses ensure that every action reflects their principles and contributes to their vision.

    Open Communication And Trust

    Transparent communication is the lifeblood of a values-driven organization. Small business owners should foster open dialogue, inviting feedback, and fostering constructive conversations around core values. Transparent communication builds trust, resolves conflicts, and empowers employees to uphold the company’s values, even in challenging situations.

    Embracing Change And Growth

    As small businesses evolve, so do their core values. Embracing change and remaining adaptable allows businesses to develop their values alongside their growth. Small business owners should regularly revisit and reassess their core values, ensuring they remain relevant and reflective of the organization’s journey and aspirations.

    The Assistance Of A PEO

    When integrating core values into your business culture, professional employer organizations (PEOs) serve as a strategic partner. A PEO like GMS provides expertise and support to ensure your values fill every aspect of your organization seamlessly. From recruitment and training to day-to-day HR functions, a PEO enables businesses to establish cultures rooted in integrity, collaboration, and excellence. By partnering with GMS, businesses uphold their core values and gain the freedom to concentrate on strategic growth initiatives while leaving HR complexities in our hands. Contact us today!

  • In today’s job market, employees have high expectations for employers beyond benefits and compensation packages. In addition to competitive compensation, employees desire a workplace that values and respects them and prioritizes a positive culture. Employees are quick to switch jobs if they encounter a negative or toxic work environment. To attract and retain top talent, it’s vital that, as a business owner, you understand what employees are seeking to address any issues preemptively.

    Employees seek out companies whose actions align with their communicated values. In other words, if you say work-life balance is essential, but the level of work assigned requires regular overtime, or you preach education as a company pillar but rarely offer training or pay for external certifications, your values and actions are misaligned. Employees will take this to heart, which can negatively affect morale, productivity, and more.

    Strong Company Cultures

    Company culture may seem abstract however, there are tangible ways it impacts your business. Company culture is a work environment’s shared values, attitudes, behaviors, and standards. It describes not only your staff’s experiences but also how customers experience your brand.

    Positive cultures tend to include:

    • Clear and open communication. Between employees, across departments, and with management – open and non-ambiguous communication is a critical factor for a healthy culture. Managers should offer plenty of opportunities for their team to provide feedback and be readily accessible to help guide employees and provide clarity when needed.
    • Professional development opportunities. In addition to open communication, companies with positive company culture offer employees the opportunity to grow professionally. Access to training, education stipends, mentorship programs, and other resources can help employees to succeed. In addition, communicate a defined process to the team that explains how employees can get promoted or receive a raise.
    • Collaboration mindset. Positive cultures allow plenty of opportunities for teams to collaborate. Although rewarding individual contributions is essential, a positive work culture fosters a deep sense of belonging through consistent collaboration with peers and across departments. Individuals who feel supported and part of a team often experience more job satisfaction, which boosts productivity and retention.
    • Defined purpose and core values. Core values should be purpose-driven and align with long-term company goals. For example, environmentally conscious companies may aim to become carbon neutral by a specific date – their decisions and actions on a small and larger scale are then all informed by this value. Positive cultures have a clearly defined purpose and core values are easily accessible to employees.
    • Intentional focus on boosting morale. Positive work cultures aren’t built overnight. There is a careful strategy behind them. Leadership plays a critical role in building and maintaining a positive culture, from hiring staff that aligns with company values to creating opportunities for team bonding and implementing recognition and reward programs.
    • Employee recognition. Recognizing the achievements of individuals and departments is essential to a healthy work environment — monetary rewards, public recognition during meetings, a social media post, bonus days off, etc. Positive cultures value acknowledging the efforts of the team regularly.

    Negative Company Cultures

    Even if your company has one or several characteristics of a positive culture, your business might still struggle with culture. Generally, you can identify the health of your work environment by looking at employee engagement, productivity, turnover, and absenteeism. Ensure you look at historical data to identify abnormal spikes and patterns. Suppose a specific team or role has a perpetual turnover or struggles with productivity. In that case, it might be time to carefully examine the team manager, offer additional leadership training, or restructure the role.

    Another way you can assess your work culture is by how often your team stays late, skips lunch breaks, or works on the weekends. When staff consistently work overtime, they likely have too much on their plate and need additional resources to accomplish their tasks. When overtime becomes a pattern, employees can suffer from burnout and increased health issues, which can ultimately affect your bottom line.

    Furthermore, conducting surveys and feedback sessions can offer valuable insights. These should include questions about job satisfaction, relationships with managers, and perceptions regarding the company’s values. When employees leave your organization, ensure exit interviews are part of your off-boarding process. While regular feedback sessions with current employees are helpful, individuals who are leaving may feel able to offer more honest answers.

    Align Your Actions And Values

    Creating a positive culture takes work. You need to establish your values and create a clear implementation plan. Ensure you include your team in decisions affecting their day-to-day and implement their ideas when possible.

    In addition, make sure your leadership team is embodying your values. If collaboration is something you value and there’s a lot of unhealthy competition within a particular department – investigate where that is coming from. Train your managers regularly so they don’t inadvertently promote behaviors misaligned with your values and know how to interrupt them as they arise.

    GMS Resources

    Your employees are your biggest assets, and investing in creating a strong work culture, ensuring your team is engaged, valued, and supported will positively impact your business in the long run. Partnering with a professional employer organization (PEO) like GMS can allow your small business to offer competitive benefits so you can attract and retain top talent. Beyond benefits, GMS can also help you assess your company’s HR practices.

    Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in the following:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Inefficiencies in your HR processes can lead to unforeseen costs that weigh heavily on a small business. PEOs like GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability.

    Let us help you maintain or improve your competitive advantage. Connect with an HR expert today!

  • As a business owner, employee turnover is a common occurrence. Employees move on for a variety of reasons, some personal, such as moving out of state, and others professional, such as a career change or a new opportunity. When current employees leave your organization, though it may be stressful news at first, you have an excellent opportunity to gain insight into your company and culture. Exit interviews and exit surveys can help you understand areas for improvement.

    Even if you have the best relationship with your team, as leadership, there are likely elements within your processes, policies, or culture that your employees dislike but have yet to voice their concerns about. Exit interviews are your window-in. When done correctly, they’ll give you honest and in-depth responses that can help address aspects affecting employee satisfaction and retention.

    Because you can’t always predict when team members will leave your company, it’s vital to have an exit interview or survey established and integrated into your offboarding process. This ensures you aren’t caught off guard and have the tools ready to capture invaluable information.

    What Is An Exit Interview?

    Like a job interview, an exit interview or exit survey is a series of questions you ask departing employees. These questions should include their reasons for leaving and their perceptions of company culture and leadership. In addition, inquire about salary and benefit expectations to understand what it takes to retain or attract top talent.

    Generally, exit interviews and surveys should take 30 minutes to an hour, depending on how many questions you include. An HR representative or a member of senior leadership should be present during interviews to hear answers first-hand. Take thorough notes during interviews, so your team can evaluate the answers afterward.

    In addition, store all the information collected in exit interviews and surveys in a clearly defined and easy-to-access place. Keep the stored information confidential and remove anything that would identify a former employee. This ensures you can refer to past interviews and identify patterns over time.

    Questions To Ask

    While general questions are helpful, it’s essential to carefully assess your business and the specific insights that would be the most beneficial. For example, if you aren’t aware of how your staff feels about leadership or benefits, tailor most of your questions around those areas.

    We’ve gathered a list of questions to help you get started:

    Why did you start looking for alternative employment?
    Starting with an open-ended question allows you to get directly to the root of why an employee is choosing to leave. Their answer can help direct your other questions. For example, if their answer is because of a lack of professional development, you can delve into more questions about what development opportunities would be beneficial in the future.

    Did you have a positive relationship with your manager/supervisor?
    Managers play a huge role in job satisfaction. In fact, 69% of people say their managers had the most significant impact on their mental health, which greatly impacts day-to-day productivity and satisfaction. As a leader, you’re likely only hearing from your managers and supervisors; this question allows employees to share any minor and major issues they may not have felt comfortable sharing while still employed.

    What was your relationship with your team like?
    Just like managers, team members play a vital role in day-to-day job satisfaction. Unhealthy or cruel team dynamics can take a significant toll on individuals. Understanding team dynamics can help you create a better work culture.

    Was your role and responsibilities clear from the start?
    As the needs of your company evolve, roles often transform. Asking this question can assist you in identifying areas where increased transparency and clarity with your team might be beneficial.

    Did your responsibilities change since you started? If yes, did you perceive these changes as positive or negative?
    Depending on the employee’s tenure with your company, their role may change significantly. This question will provide insight into whether there are ways you can improve the experience of others at your company on similar paths. Do you need to reevaluate job titles or compensation packages when roles develop? Does your team need more say in these changes, etc.?

    What advice would you give management or your team?
    This question can lead to surprising answers and give you ideas on how to improve the experience of everyone in your company. Although there may be ideas that aren’t realistic to implement, other suggestions can prove invaluable.

    Other questions you can ask include:

    • What was your favorite and least favorite aspect of your job?
    • Would you recommend this company to a friend?
    • Did you feel valued and appreciated during your time here?
    • If you ever flagged an issue to leadership, were you satisfied with the outcome?
    • What are you looking forward to in your new role?
    • Is there anything we didn’t cover you would like to add?

    Next Steps

    The work doesn’t end after you’ve gathered your departing employee’s responses. Have your leadership carefully review each answer. Flag areas that need to be addressed and make a clear plan for implementing changes. Ensure you communicate any developments with your remaining team members and allow them to share ideas or pain points.

    Remember that an exit interview shouldn’t be the only time you gather your team’s input. Regularly check in during one-on-ones, team meetings, or even performance reviews. Regular feedback sessions allow you to get ahead of any issues and address concerns before an employee departs.

    While it is too late to address the concerns of former employees, the changes you implement can have lasting impacts on your business, improving job satisfaction, retention, and recruitment efforts.

    Human Resources Information System

    Partnering with a professional employer organization (PEO) like GMS gives you access to powerful tools such as GMS Connect. GMS Connect is a fully integrated, cloud-based human resources information system (HRIS) that enables your services and drives your efficiencies from anywhere and on any device with internet access. Our software allows world-class payroll, benefits, HR, recruiting, performance management, and more – covering the entire HR spectrum from hire to retire.

    If you’re looking for a secure place to store information, such as exit interviews or survey data, GMS can help. Contact us today and let us help you manage your employee data.

  • COVID-19 is, in a way, a thing of the past. However, the impact of COVID-19 on the workforce continues to affect business owners, especially small business owners. As we’ve geared towards normalcy of life before the pandemic, employers are looking to bring their employees back into the office. However, convincing employees to leave the comfort of their home office and return to the office can be a challenge.

    Return To Office (RTO) Efforts

    New data shows employers are taking a two-pronged approach, which includes the following:

    • Offering incentives to make the office more inviting
    • Cracking down on those who fail to comply 

    Eight hundred employers who were surveyed in December plan to offer happy hours, provide catered meals for their employees or upgrade their office space to incentivize employees to come back into their office. However, 40% of these surveyed employees are less likely to offer raises, and 37% are less likely to offer childcare benefits as incentives. In addition, 95% said employees who don’t comply will suffer the following consequences:

    • 57% will see their bonus affected
    • 54% will see their benefits affected
    • 53% can expect a reduction in pay
    • 33% will be fired

    Alongside these efforts, 79% track employee office attendance using badge swipes. Ninety-one percent of employers require employees to come into the office at least once per month, while 75% will require employees to go in weekly.

    What The Employees Are Saying

    At the end of the day, your employees are your biggest asset. You want to ensure you listen to what they have to say and what they want. In response to employers’ actions, employees are fighting back against their employers’ RTO plans. For example, Amazon and Disney workers have been petitioning for their employers to reconsider the mandates they have in place. Amazon responded by telling employees if they didn’t comply, they would be blocked from promotions.

    Employers must consider why employees prefer working from home. Companies need to provide RTO incentives. Compensation is how to get people back to the office. Think about it. Working from home saves money on food, gas, car maintenance, clothing, and more, giving workers time back in their day without a commute. While catered meals are a good start, compensation for commuting, childcare, clothing, and more would go much further.

    Strategies To Ensure A Smooth RTO

    The transition back to the office represents a pivotal phase for employers and employees. Encouraging employees to return to the office requires a delicate balance between addressing concerns, promoting a safe environment, and fostering a sense of purpose and belonging. We’ve compiled a handful of strategies business owners can utilize to facilitate a seamless return:

    1. Clear and compassionate communication: Transparent communication is the key to a successful return. Engage with employees proactively, addressing their concerns and providing comprehensive information about the safety measures and protocols put in place. Express empathy and understanding towards individual needs, fostering an environment where employees feel heard and supported.
    2. Flexible work arrangements: Recognize and accommodate the new preferences for flexibility. Offering hybrid work models allows employees to ease into the transition gradually. By providing options for remote work or flexible schedules allows individuals to balance their personal and professional lives effectively.
    3. Emphasize safety and well-being: Prioritize health and safety. Implement safety protocols aligned with Centers for Disease Control (CDC) guidelines. If bringing your employees back to the workforce is new for you since the COVID-19 pandemic, employees might be hesitant about the new surroundings you’re throwing them into. Ensure a clean and sanitized workspace and provide necessary protective equipment to instill confidence in employees about their well-being in the office environment.
    4. Revamp the office experience: Reimagine the office as a space conducive to collaboration, creativity, and social interaction. Create an inviting workplace atmosphere by incorporating elements that encourage connection and teamwork. Organize team-building activities, workshops, or social events that unite people, fostering camaraderie and a shared purpose.
    5. Leadership by example: Leadership plays a pivotal role in setting the tone for the return to office. As a business owner, you must lead by example by being visible, engaged, and supportive. Demonstrating a commitment to the office transition encourages employees to foster a collective sense of purpose.
    6. Employee involvement and feedback: Involve employees in the decision-making process. Encourage feedback and suggestions regarding the RTO strategy. This involvement not only empowers employees but also creates a sense of ownership and commitment to the well-being of the workplace.

    Implementing these strategies allows business owners to pave the way for a smoother and more receptive return to the office. Embracing flexibility, prioritizing safety, fostering communication, and nurturing a sense of community are instrumental in ensuring employees feel valued and supported during this transitional phase.

    How Partnering With A PEO Can Help With Your RTO Plan

    In an era where business landscapes rapidly evolve, leveraging the expertise and support of a professional employer organization (PEO) is a strategic advantage for businesses navigating complex HR challenges. A PEO like GMS serves as a partner, offering a comprehensive suite of HR solutions that streamline operations, mitigate risks, and elevate the employee experience. By entrusting your HR functions to GMS, you unlock the freedom to focus on core competencies and growth initiatives.

    A PEO becomes an invaluable partner through access to HR expertise, compliance guidance, robust benefits packages, and streamlined administrative packages. At the end of the day, a partnership with GMS isn’t just an investment in HR support – it’s an investment in long-term efficiency, resilience, and sustainable success. Contact us today to learn more.

     

  • The Raise the Wage Act of 2023, aiming to incrementally raise the federal minimum wage to $17 an hour by July 2029, has stirred an argumentative debate. The Congressional Budget Office (CBO) study highlights its potential to positively impact over 18 million workers but also forecasts potential job displacement for around 700,000 Americans.

    What Are The Impacts?

    Positive wage impact

    The CBO’s findings emphasize the potential for substantial wage hikes for workers currently earning at or slightly above minimum wage levels. This move could significantly improve the economic situation for many individuals, lifting around 400,000 workers out of poverty. In addition, an analysis by the Economic Policy Institute in Washington, D.C., found that raising the federal minimum wage to $17 an hour by 2028 would positively impact nearly 28 million workers across the country. The average affected worker who works year-round would receive an extra $3,100 per year. President Joe Biden and Senator Bernie Sanders both advocate for a shift from a “starvation wage” to a “living wage,” supporting a gradual increase after over a decade of stagnation at $7.25 an hour.

    Concerns about job loss

    However, the flip side of this wage increase is the projected reduction in employment opportunities, particularly affecting younger and less educated individuals. The CBO suggests that by 2029, a substantial portion of those rendered jobless by the bill might exit the labor force, raising concerns about long-term economic participation. The average estimate is about 700,000 workers would lose their jobs.

    Economic Ramifications

    The proposed wage hike could set off a chain reaction in the economy. Increased labor costs could lead to higher consumer prices, potentially decreasing overall buying power and reducing employment across various wage brackets. Employers must also pivot towards automation to mitigate increased labor expenses.

    Alternative Approaches

    Senator Bill Cassidy and Senate Republicans advocate a more gradual approach, proposing the Higher Wages for American Workers Act. They aim to reach an $11 federal minimum wage by 2028, prioritizing the protection of small businesses and preserving job opportunities. In contrast, advocates for the $17 minimum wage underscore its potential to positively impact around 28 million workers nationwide. They emphasize the need to fortify existing state-level standards and solidify wage gains, especially crucial in post COVID-19 pandemic economic recovery.

    State Variances

    While 30 states and Washington, D.C. already exceed the federal minimum wage, the impact of a $17 federal minimum could vary. Workers in these states may have already experienced wage hikes above this proposed threshold. In addition, the debate isn’t solely about the numbers; it’s about balancing economic progress and job security. Crafting legislation that uplifts workers without compromising employment opportunities requires navigating complexities.

    Tackle Labor Laws With GMS

    When all is said and done, navigating the complexities and unknowns of the minimum wage debate necessitates a careful balance between uplifting workers and safeguarding employment opportunities. As a small business owner, it’s essential to follow all laws and regulations and, in this case, those associated with minimum wage increases. However, you did not start your business to be an expert in wages and labor laws.

    Consider partnering with a professional employer organization (PEO). PEOs like GMS provide expertise in navigating evolving labor laws, providing vital insights into adapting compensation structures and HR strategies. By leveraging the resources and guidance of GMS, business owners can proactively analyze their workforce dynamics, streamline operations, and implement measures to mitigate the potential impacts of minimum wage adjustments. This partnership allows you to focus on areas that allow you to grow and not hold you back from doing what you do best. Contact our experts today to learn how we can lend a helping hand.

  • Employee theft is a significant issue, costing companies around $50 billion annually. Small businesses are especially vulnerable, with 22% reporting employee theft. It’s important to note that theft isn’t limited to physical items; it can also involve misusing company data, time, or other resources. While addressing this concern is vital, relying solely on intense monitoring and harsh penalties isn’t the best solution, as it can harm employee morale and lead to retention problems. A better approach is to take a closer look at your company culture.

    While having clear policies against theft is necessary, the real game-changer is creating an environment where integrity is the norm. The process involves creating a positive workplace culture where employees feel valued, fulfilled, and engaged. Happy and content employees are less likely to engage in unethical behavior.

    Creating a positive work environment begins with effective leadership and requires employee buy-in. This can be difficult to accomplish and needs ongoing work to maintain. However, the benefits are substantial, including saving your business time and money and improving employee retention rates. To assist you in building a more positive culture, we’ve put together tips and strategies to help you build a more positive and ethical culture.

    Workplace Ethics

    Workplace ethics encompass the principles and values, including honesty, integrity, respect, fairness, and responsibility, that guide individuals and organizations in their professional conduct. An ethical workplace not only prioritizes treating employees, customers, and stakeholders with respect and dignity; it also makes adherence to laws, regulations, industry standards, and best practices a top priority.

    Why Does It Matter?

    One of the most significant advantages of maintaining an honest workplace is the time and money you can save. Content and engaged employees are less likely to participate in any form of theft, saving you thousands of dollars annually. Moreover, they tend to be more productive and contribute positively to their teams, fostering a collaborative and efficient work environment and driving business success.

    In today’s market, where consumers and employees prioritize values, having a reputation for moral conduct helps you stand out. Employees who resonate with their company’s values are more likely to remain engaged and committed, reducing the frequency and costs associated with recruiting and training new personnel. Similarly, customers who trust a company tend to stay loyal, providing a consistent revenue stream.

    In addition, ethical work cultures avoid behaviors such as discrimination, harassment, or fraud. These corrupt actions can lead to legal battles and regulatory fines, often resulting in long-term consequences that are difficult to recover from. Establishing a workplace grounded in integrity helps ensure that your team adheres to laws and regulations, safeguarding the company from potential legal and financial pitfalls. An honest workplace goes beyond a moral obligation; it’s a strategic advantage promoting ongoing growth and success.

    Creating An Ethical Culture

    Creating a code of ethics is a foundational step in establishing an ethical work environment. This code needs to include clear expectations and guidelines for proper conduct. It’s crucial that it effectively communicates your organization’s core values and principles, acting as a dependable guide for employees when deciding on the right actions to take.

    Once your code of ethics is in place, it’s essential to communicate and reinforce it with your team consistently. When employees are well-informed about the organization’s values and understand that everyone in the company follows the same standards, they are more likely to act honorably. The staff’s collective understanding and commitment play a vital role in maintaining a positive, compliant, and theft-free workplace.

    Beyond a code, you can help foster a more ethical workplace through the following:

    Transparency

    Be straightforward with your team. Open communication and a commitment to transparency are vital in cultivating employee trust. This trust can lead to improved collaboration and heightened employee engagement. Additionally, a transparent environment helps prevent conflicts and misunderstandings, often resulting from poor communication.

    Accountability

    Hold everyone on your team, including leadership, accountable for their actions. Ensure your team feels comfortable acknowledging mistakes and offer them opportunities to make corrections when possible. Discuss strategies to avoid similar errors in the future rather than dwelling on the negatives. For more significant mistakes, have straightforward policies that outline potential consequences based on the severity of the misstep. This approach guarantees fair treatment for all team members and equal opportunities for addressing errors.

    Long-term focus

    Prioritize your business’ long-term success over short-term gains. This approach often involves making beneficial decisions in the long run, even if they are not the most profitable in the short term. Focusing on sustainable practices builds trust among stakeholders who see the company as committed to enduring values.

    Quality assurance

    Commit to delivering superior products and services that exceed basic compliance standards. This promise not only enhances your company’s reputation but also fosters trust and loyalty among customers. In addition, employees who take pride in their high-quality work contribute to a positive company image and assist in attracting and retaining top talent.

    Reward and incentivize positive behavior

    Positive reinforcement can go a long way. Encourage ethical behavior through recognizing efforts in company meetings, newsletters, or personally. Consider providing incentives such as financial bonuses, additional days off, or salary increases. By rewarding moral behavior, you inspire other team members to follow suit and demonstrate a genuine dedication to fostering a positive workplace culture – moving beyond mere policy statements to tangible commitment.

    Building an ethical workplace isn’t a one-and-done action. It requires consistent effort from everyone on your team. However, the long-term benefits are well worth the time and energy.

    Human Resource Audits With GMS

    Crafting policies on employee theft and establishing a code of ethics can be challenging. Ensuring your policies are compliant with laws and regulations is an added struggle. Partnering with a professional employer organization (PEO) like GMS can alleviate some of the stress.

    We offer a range of HR audits that ensure your business is compliant and up to date with best practices and help you strategically find your strengths and weaknesses. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time.

    No matter what type of HR audit you need, our dedicated specialists are ready to:

    • Take the time to learn how your HR functions are currently 
    • Draft a comprehensive report that outlines your current HR status
    • Provide recommendations on how you can improve your internal HR processes
    • Offer guidance on HR functions that can be outsourced

    Contact us today, and let us help you establish and maintain a positive work environment. 

  • With 2024 in full swing, employers are starting to plan for employee salary increases this year. While economic concerns have prompted some employers to take a more conservative approach with compensation compared to 2023, the consensus remains positive for employees. Research shows that U.S. employers are expected to provide an average salary increase of four percent in 2024. Although this is slightly lower than the previous year’s increase, it is still significantly higher than salary budgets in recent years.

    Factors Influencing Salary Increase Strategies

    There are two key factors driving employers’ decisions regarding salary increases in 2024. The first is high inflation, which has led to steep prices for essential goods and services such as food, housing, and health care. It now requires $119.27 to buy the same goods and services a family could afford for $100 before the pandemic. Although inflation has decreased minimally since reaching a 40-year high in the summer, workers continue to struggle with the rising cost of living. The second factor is the tight job market, which has increased competition for talent. To attract and retain skilled employees, employers must offer competitive pay to combat the increasing prices.

    The Impact Of Inflation

    Even though inflation has eased somewhat, its effects continue to be felt by employees. A recent survey showed that months of high living costs have pushed employee financial well-being to an all-time low. Workers are burdened with credit card debt, and many find it challenging to save for retirement due to inflation pressures. Employers recognize this and have responded by increasing salary budgets. Surveyed employers cited inflation as the primary reason for the salary increases planned for 2024.

    In addition, voluntary turnover and attrition rates are at 11% overall, indicating the importance of offering competitive compensation packages. However, this survey revealed that fewer organizations report difficulties finding and retaining workers compared to previous years, suggesting a slight improvement in the labor market.

    Employers’ Strategies Beyond Salary Increases

    In addition to salary bumps, employers are adopting various strategies to attract and retain talent. 58% of employers are embracing workplace flexibility, recognizing the importance of work-life balance for employees. Furthermore, 59% of employers are placing a greater emphasis on inclusion, equity, and diversity, acknowledging the need for a diverse and inclusive workforce. In response to these ongoing pressures, organizations are taking the following actions:

    • 50% of respondents have reviewed the compensation of specific employee groups
    • 43% are increasing starting salary ranges
    • 42% are reviewing the compensation of all employees
    • 40% are enhancing the use of retention bonuses or spot awards
    • 36% are increasing training opportunities 

    These efforts reflect a commitment to creating a positive and rewarding working environment in the face of economic challenges.

    In Times Of Uncertainty, Partner With A PEO

    For small business owners, staying informed about salary trends and the challenges employees face in the current economic climate is crucial. By understanding the impact of inflation and the tight labor market, small business owners can make strategic decisions regarding salary increases and employee retention. Or you can partner with a professional employer organization (PEO) with experts to help you every step of the way, including answering questions and concerns about employee compensation and benefits.

    GMS, a certified PEO (CPEO), helps small businesses navigate the complexities of salary planning, ensuring competitive pay for employees while managing costs effectively. In addition, we provide access to resources and tools to support recruitment, compliance with employment regulations, and more. Partner with us so you can focus on what you do best – growing your business. Start the new year off on the right foot and partner with GMS. Get a quote from us today!

  • In today’s rapidly evolving business landscape, where competition is fierce and technological advancements are reshaping industries, companies face the constant challenge of staying ahead of the curve. To thrive in such an environment, organizations must foster an innovative culture that encourages employees to think and act like entrepreneurs within their existing roles. This approach, known as intrapreneurship, has gained traction as a crucial strategy for driving growth and ensuring long-term success.

    By empowering employees to take risks, explore new ideas, and drive change from within, intrapreneurship can unleash the full potential of a company’s workforce and fuel its competitive advantage. Continue reading to dive deeper into the concept of intrapreneurship and its benefits and learn how companies can integrate it into their HR strategies.

    Defining Intrapreneurship

    Intrapreneurship is a practice allowing an employee to act like an entrepreneur within a company or other organization. Intrapreneurs are self-motivated, proactive, and action-oriented individuals who take the initiative to pursue an innovative product or service. They’re empowered to challenge the status quo, propose new ideas, and execute projects that generate value and drive growth.

    The Benefits Of Intrapreneurship In HR Strategy

    1. Nurturing a culture of innovation 

    Intrapreneurship fosters a culture that encourages employees to think creatively, experiment, and bring forth innovative ideas. By integrating intrapreneurial practices into HR strategy, companies can create an environment where employees feel empowered to take ownership of their work and contribute solutions to business challenges. 

    2. Retaining top talent

    Intrapreneurship offers employees a sense of autonomy and purpose, which can significantly enhance job satisfaction and engagement. Companies can retain top talent and reduce turnover rates by providing opportunities for employees to pursue their own ideas and projects. Intrapreneurship also attracts ambitious individuals who are passionate about making a real impact. 

    3. Driving organizational agility

    In today’s fast-paced business environment, companies need to adapt quickly to changing market dynamics. Intrapreneurship equips organizations with the ability to respond swiftly to emerging trends and capitalize on new opportunities. By empowering employees to take calculated risks and experiment, companies can improve their agility and stay ahead of the competition. 

    4. Fostering continuous learning

    Intrapreneurship encourages a growth mindset by promoting continuous learning and personal development. Employees are encouraged to acquire new skills, seek knowledge, and embrace challenges. By integrating entrepreneurial practices into HR strategy, companies can create a learning culture that fuels innovation and keeps employees engaged. 

    5. Boosting employee engagement and motivation 

    Intrapreneurship allows employees to work on projects they are passionate about, providing a sense of purpose and intrinsic motivation. This increased engagement leads to higher levels of productivity and performance. By incorporating entrepreneurial opportunities into HR strategies, companies can tap into the untapped potential of their workforce. 

    Harnessing HR Expertise And Tools For Intrapreneurship

    Unlocking the potential of intrapreneurship requires more than just a leap of faith – it demands strategic support and expert guidance. That’s where a professional employer organization (PEO) like GMS steps in, transforming how business owners navigate this revolutionary approach. By partnering with GMS, companies gain access to an arsenal of HR expertise, cutting-edge tools, and tailor-made solutions that empower them to cultivate a culture of intrapreneurship.

    From comprehensive employee training programs to streamlined HR processes and invaluable advice on incentivizing and rewarding entrepreneurial endeavors, a PEO is an ally for business owners on their journey toward success. With GMS as your trusted partner, organizations can confidently embrace the limitless possibilities of intrapreneurship, revolutionizing their growth trajectory, fostering innovation, and creating an extraordinary workplace that inspires their employees to reach new heights. Contact us today to learn more!

  • As a small business owner, you understand the importance of nurturing a talented and motivated workforce. One of the key aspects of employee development is providing effective feedback. Constructive feedback improves performance and fosters a culture of continuous growth and improvement within your organization. Companies that conduct regular feedback experience 14.9% lower turnover rates.

    In this era of transformative workplace trends, recalibrating feedback strategies has never been more important. As we embark on a new year, it’s the perfect time to revisit how we’re delivering feedback. This blog aims to provide tips for employee feedback and emphasize the opportunity for organizations to reevaluate and enhance their feedback mechanisms to empower their employees and company as a whole.

    1. Establish a feedback culture

    To create a feedback-driven environment, it’s essential to establish a culture that values open and honest communication. Encourage employees to seek feedback and provide suggestions. Foster an atmosphere where feedback is seen as an opportunity for growth, not criticism.

    2. Be specific and timely

    Feedback loses its impact when it lacks specificity or is delivered too long after the event. Ensuring your feedback is timely and addresses specific behaviors or actions is essential. This allows employees to understand the context and make relevant improvements.

    3. Focus on behavior, not personality

    When giving feedback, it’s crucial to focus on observable behaviors rather than personal traits. By doing so, you ensure that the feedback is objective and actionable. Instead of saying, “You’re lazy,” say, “I noticed that you missed the deadline twice last week, which impacted the team’s progress.”

    4. Use the feedback sandwich technique

    The feedback sandwich technique involves sandwiching constructive criticism between positive comments. This approach helps balance negative and positive feedback and makes feedback more acceptable. Start with a positive remark, provide constructive feedback, and end on another positive note.

    5. Be respectful and empathetic

    Feedback should always be delivered with respect and empathy. Understand that employees may have different perspectives and emotions tied to their work. Show compassion and actively listen to their concerns. By demonstrating understanding, you create an environment where employees feel safe and supported.

    6. Encourage two-way communication

    Feedback should be a dialogue, not a monologue. Encourage employees to share their thoughts and perspectives during feedback sessions. Engage in open and honest conversations that allow for a better understanding of each other’s viewpoints. This promotes mutual trust and respect.

    7. Set clear goals and expectations

    Effective feedback should be linked to clear goals and expectations. Ensure that employees have a clear understanding of what is expected of them. Use feedback sessions to align their performance with organizational objectives and help them identify areas for improvement.

    8. Offer growth opportunities

    Feedback should not solely focus on shortcomings. Highlight areas where employees excel and recognize their strengths. Identify growth opportunities and provide resources or training to help them develop their skills further. This approach motivates employees and shows your commitment to their professional growth.

    9. Follow up and track progress

    Feedback is an ongoing process. After providing feedback, schedule follow-up sessions to discuss progress and provide additional guidance if needed. Track employees’ improvement over time and acknowledge their efforts and achievements.

    Give Feedback With The Help Of A PEO

    Giving effective feedback is an essential skill for small business owners. By establishing a culture of feedback, you can create a workplace that fosters continuous improvement and drives success in the new year and beyond. Have you considered partnering with a professional employer organization (PEO)? A PEO like GMS provides feedback on employee performance and training and development, allowing business owners to make informed decisions and improve their business operations.

    GMS’ HR Account Manager Julie Grund shared, “Giving consistent and valuable feedback to your employees is one of the most important aspects of growing and retaining your staff. Employees who receive constructive feedback on a regular basis will feel more valued by the organization, and in turn, they will likely be more productive while maintaining a greater sense of loyalty to the company. Providing feedback will increase employee performance, increase motivation, foster collaboration and teamwork, and improve organizational processes.

    Take your business to new heights with the power of feedback and the expertise of a PEO by your side. Contact us today to learn more!