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  • Are you a business owner considering selling your business? Selling a business can be daunting, especially when it comes to the administrative burden and HR management. However, with the right support in place, such as a partnership with a professional employer organization (PEO), the process can be streamlined, allowing potential buyers to see the true value of your business without getting bogged down by administrative complexities.

    Understanding A PEO

    Let’s start with the basics—understanding what a PEO is. A PEO is a strategic partner who helps businesses navigate the complexities of human resources and employment management. Think of a PEO as your one-stop shop for HR solutions. By teaming up with a PEO, businesses can outsource essential HR tasks such as payroll processing, benefits administration, and compliance management. Beyond administrative support, PEOs offer expertise, resources, and guidance to help businesses thrive.

    A PEO provides business owners access to a team of HR professionals who understand the nuances of employment regulations and industry best practices. In layman’s terms, a PEO allows business owners to focus on what they do best – growing their bottom line – while leaving the HR heavy lifting to the experts.

    Diving Deeper Into The Value Of A PEO

    When you sell your business, utilizing a PEO adds more value than you think. So, consider this analogy for clarity: selling your business that utilizes a PEO is like selling a furnished house. Just as a furnished house presents a more attractive and convenient option for potential buyers, a company with a PEO partnership offers a streamlined and well-managed operation ready for the new owner to step in and start generating revenue without the hassle of handling administrative tasks.

    Streamlined operations

    A business that partners with a PEO experiences streamlined operations, much like a furnished house saves a buyer the trouble of buying and arranging furniture. The administrative and HR functions are well-organized, making the business more appealing to potential buyers due to its operational efficiency and ease of takeover.

    Administrative simplicity

    Just as a furnished house eliminates the need to handle multiple vendors for furniture, a business with a PEO in place reduces the need for the buyer to coordinate and understand various administrative vendors. A PEO handles HR, payroll, benefits administration, and compliance, all under one roof, simplifying the administrative burden for the seller and the potential buyer.

    Financial efficiency

    A furnished house often commands a higher price due to the added convenience it offers. Similarly, a business with a PEO is more attractive to buyers due to the cost savings and operational efficiency it provides. The buyer can see the potential for financial efficiency and reduced operational costs, making the business a more appealing investment opportunity.

    The Benefits Of A PEO When Selling Your Business

    A PEO brings professional HR expertise to the table, ensuring that the HR aspect of a business is well-managed and compliant with regulations. This expertise adds significant value to a company, making it an appealing prospect for potential buyers looking for a well-structured and compliant acquisition.

    Risk mitigation

    By partnering with a PEO, business owners can mitigate risk and ensure compliance with employment laws and regulations. This reduces the potential liabilities for the buyer, making the acquisition more attractive and less risky.

    Focus on core business

    With a PEO handling administrative tasks, the business owner can focus on the core aspects of the business, such as growth strategies, customer relationships, and product development. This hands-off approach to administrative tasks makes the business more appealing to potential buyers looking for a well-organized and efficient operation that allows them to focus on business growth.

    Cost savings

    A PEO can help businesses save on administrative costs by streamlining processes and providing access to cost-effective benefits packages. This ultimately increases the business’s value and makes it a more appealing investment opportunity for potential buyers looking for a financially efficient acquisition.

    Meet GMS

    If you’re considering selling your business, the benefits of partnering with a PEO are unmatched. Let us welcome you to Group Management Services (GMS), a certified PEO (CPEO), who can help you during this time of change. At GMS, we understand that selling your business comes with challenges; however, don’t let that be the stopping factor. By simplifying the process, we reduce the burden on business owners. Our experts are here every step of the way. Look no further and contact our team today to get your journey started.

  • As a small business owner, the day-to-day can feel like an endless cycle of putting out fires and being pulled in conflicting directions, leaving you with little to no time to work on the aspects of your business you’re most passionate about. However, HR can’t be ignored; it involves intricate and time-consuming tasks that demand ongoing attention. If mismanaged, your company could face harsh penalties and reputational harm that could take months or years to recover.

    While handling it all yourself may seem doable, as your business grows, it may not be possible to juggle the many moving pieces that make up successful and compliant HR policies and procedures – even with the best intentions, mistakes and oversights happen. Professional employer organizations (PEOs), such as GMS, help ensure nothing falls through the cracks.

    What Is A PEO?

    PEOs manage various HR tasks, such as benefits administration, payroll processing, recruitment, risk management, and other operations responsibilities. PEOs help safeguard your business against potential legal and reputational pitfalls. They specialize in maintaining compliance, ensuring that your HR policies align with federal and local employment regulations.

    In addition to compliance, they serve as a partner in the strategic management of HR functions. Through optimizing processes and introducing best practices, PEOs can significantly enhance your overall efficiency and productivity, which help attract and retain top talent.

    PEOs act as an extension of your business and provide the support needed to navigate the complexities of HR. While PEOs take on the administrative burdens of HR, they follow your lead. This arrangement ensures that your business’ core identity and operational direction remain firmly in your hands. In other words, PEOs don’t take over your business. Instead, they free up your time and energy by taking over the administrative aspects of HR processes so you can focus on core business activities such as strategic planning, business development, and customer engagement.

    Benefits Of Working With A PEO

    PEOs allow you to offer exceptional and competitive benefits to your team. PEOs pool their buying power and can negotiate with insurance and benefits vendors, giving you access to broader and more competitive benefits packages. These can include health insurance, dental and vision plans, retirement savings plans, and even wellness programs, which might not be possible for you to offer as a smaller business on your own.

    The ability to offer top-tier benefits packages can significantly impact your company’s recruitment and retention efforts. In a competitive job market, attractive benefits packages stand out to high-performing talent, making them more likely to join and stay with your company long-term.

    In addition, partnering with a PEO can lead to the following:

    • Financial savings: One way PEOs can save money is by reducing employee turnover costs. Not only is hiring simplified and faster, but partnering with a PEO can help refine your HR processes, helping with overall job satisfaction and retention.
    • Technology system access: Partnering with a PEO provides access to several technology platforms, including human resources information systems (HRIS), online payroll solutions, and more. These user-friendly platforms can seamlessly integrate with your existing systems, enabling straightforward access to employee information, report generation, and data storage capabilities.
    • Scalability: As your business grows, a PEO can quickly adapt to your changing needs, from adding new employees to expanding into new cities or states. This scalability can be a significant advantage for rapidly growing businesses.
    • Enhanced recruitment: PEOs equip you with the necessary tools and expertise for efficient employee recruitment, onboarding, and ongoing training processes. From creating a job posting to screening various candidates, PEOs free up your time so you only interview qualified applicants. Beyond screening talent, PEOs help establish a complete onboarding process, ensuring new hires are effectively integrated into your company and receive the training they need to succeed.
    • Employee development and training: Ongoing training is necessary to ensure your team is well-versed in their responsibilities and the company’s procedures. PEOs can help facilitate this through learning management systems (LMS), enabling you to establish and track employee training programs.

    Is A PEO Right For My Business?

    There are many factors to consider when deciding if a PEO is right for your business. First, it’s crucial to take inventory of your specific pain points. Are you looking for help with payroll, compliance, employee benefits, workers’ compensation, or all of the above? Understanding your needs will help you choose if a PEO is right for you.

    Additionally, consider the cost of a PEO. PEOs will save you time and money in the long run; however, it’s crucial to understand the pricing structure and compare it against the potential cost savings to ensure it’s truly the best decision for you.

    Overall, PEOs offer an excellent solution for small businesses aiming to develop and sustain a strong workforce. Securing top talent involves more than just an appealing job title; employees seek organizations that provide competitive benefits and have comprehensive processes and policies in place.

    HR With GMS

    Our goal is to help employers make their business simpler, safer, and stronger through dedicated HR support. We provide comprehensive HR solutions to companies small, medium, and large throughout the United States, allowing them to increase operational efficiencies, save money, and enhance the overall employee experience.

    With GMS, is a one stop shop, you won’t have multiple vendors providing multiple services. You get one team with years of experience managing HR, payroll and tax, benefits, and risk management. We provide:

    • Expertise: GMS offers a wide range of services and customized support. For the best fit, explore our offerings to ensure our capabilities align with your needs.
    • Peace of mind: GMS is a certified professional employer organization (CPEO), meaning we meet the requirements set by the IRS and can provide specific financial protections and tax benefits.
    • HR in a crisis: Are you ready to handle an HR crisis? GMS can help your business navigate various challenges, from handling sexual harassment complaints to managing workers’ compensation claims. We can ensure your policies remain current and your team is well-equipped to address any challenges. We are always ready to provide support during crises.

    Whether you know exactly what you need help with or aren’t sure where to start, our team is ready to help. Contact us today to connect with one of our experts!

  • In the dynamic landscape of small businesses, owners often find themselves juggling multiple roles, from managing operations to ensuring compliance with labor laws. With limited resources and personnel, handling HR tasks can be daunting, time-consuming, and prone to errors. However, partnering with a professional employer organization (PEO) can offer substantial benefits. Let’s dive into why outsourcing to a PEO could be a game-changer for businesses, even those with as little as five employees.

    Expertise At Your Fingertips

    Small businesses often lack dedicated HR departments or personnel with extensive HR expertise. PEOs bring seasoned professionals to the table who specialize in various HR functions, including the following:

    • Payroll processing
    • Benefits administration
    • Compliance management
    • And more

    By outsourcing to a PEO, small businesses gain access to knowledge and experience without the overhead costs of hiring full-time HR staff.

    Enhanced Benefits Package

    Attracting and retaining top talent is a constant challenge for small businesses, especially when competing against larger corporations with robust benefits packages. PEOs pool together employees from many companies (the PEOs clients), creating economies of scale that enable access to high-quality benefits at competitive rates. From health care and retirement plans to wellness programs and employee assistance services, PEOs empower small businesses to offer comprehensive benefits that are competitive with larger businesses.

    Streamlined Compliance

    Navigating the ever-evolving landscape of employment laws and regulations can be daunting for small business owners. Non-compliance can result in hefty fines, legal liabilities, and reputational damage. PEOs specialize in staying on top of these changing regulations, ensuring their clients remain compliant with federal, state, and local laws. By outsourcing compliance management to a PEO, small businesses can mitigate risks and focus on growth initiatives with peace of mind.

    Time-Saving Solutions

    Time is precious for small business owners wearing multiple hats. Handling HR tasks, such as payroll processing, employee onboarding, and performance management, can eat into valuable time that could be spent on strategic initiatives. PEOs automate these mundane HR processes, streamline workflows, and provide self-service tools that empower employees to manage their information more efficiently. This frees up valuable time for small business owners to focus on driving innovation, expanding market reach, and nurturing client relationships.

    GMS – The One-Stop Shop For Your Outsourcing Needs

    In an increasingly competitive business landscape, small businesses must leverage every available resource to thrive and succeed. Partnering with a PEO offers small businesses a strategic advantage by providing access to expertise, cost-efficient solutions, enhanced benefits packages, streamlined compliance, and time-saving tools.

    At Group Management Services (GMS), a certified PEO (CPEO), we’re here to help businesses in all different industries with as few as five employees to hundreds. If you’re that small business owner hanging on by a thread, look no further – we’re your one-stop shop. Let us unlock your full potential, maximize operational efficiency, and position your business for sustainable growth in the marketplace. Contact our HR experts to get started!

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

    Understanding The Hard Cost Of HR Outsourcing Savings

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

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

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

    What Are Soft Cost Savings And Why Are They Important

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

    Examples of soft cost savings include the following:

    Improved employee retention

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

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

    Enhanced HR compliance

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

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

    Improved employee satisfaction and engagement 

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

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

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

    Comprehensive recruiting and onboarding practices

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

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

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

    Effort

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

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

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

    GMS Has The Solutions You Need

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

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

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

  • We’ve heard it all. From quiet quitting to quiet firing and now, quiet hiring, there are plenty of new buzzwords that business owners should familiarize themselves with. Let’s start with understanding what quiet hiring is. Quiet hiring is the idea that a business can add new skills and fill gaps without hiring full-time employees.

    This can come in two different forms, which include: 

    • Internal
    • External

    Internal quiet hiring means current employees might temporarily move to another role or take on different organizational assignments. External quiet hiring means hiring short-term contractors to keep the business running without taking on more full-time employees.

    Is Quiet Hiring Right For Your Business?

    While the concept of quiet hiring has been around for some time, it’s becoming increasingly popular. Quiet hiring could be the right solution for employers to ensure workplace efficiency without causing financial strain. The following are potential benefits of implementing quiet hiring within your business:

    • Gives employees a reason to care more about their job
    • An excellent opportunity for workers’ professional development
    • Makes companies more agile and ready to take on change
    • Companies can save resources by not spending money on training and onboarding new staff

    In addition, quiet hiring impacts the job market by cutting down on job eliminations. Instead of letting an employee go because their job is no longer cost-effective, the company retrains and moves them elsewhere.

    While quiet quitting can provide internal opportunities, there is a potential risk that this process could be utilized to give more work to a single employee instead of filling roles that are actually needed. Giving employees more work leads to burnout. When employees experience burnout, they’re more likely to have lower morale (36% of individuals), be less engaged (30%), make more mistakes (27%), and miscommunicate (25%). It’s a never-ending cycle that could end up hurting your business in the long run.

    Allow GMS To Help With Your Decision

    Should you choose to implement quiet hiring within your business, it’s essential that you relay the message in a way that makes your employees feel valued. You don’t want them to think that they’re interchangeable or not good enough for the job, but rather you just want them in a position where they can have the biggest impact on your business. In addition, compensation must be considered. If you’re asking employees to take on more responsibilities, you must compensate them for that. Group Management Services works with business owners to provide them with HR outsourcing services such as benefits, payroll, human resources, and risk management. Whether you want to start by implementing a career development program or leadership program where you train employees to take on more responsibilities in a scenario such as quiet hiring, we’ve got you covered. If you need to ensure you’re compensating your employees the correct amount, we do a job market analysis to compare the salary to similar positions elsewhere. We take all the burdensome administrative tasks off your shoulders.

    Joe Wenger, PHR, GMS’ Senior HR Generalist, explained, “With Gen Z entering the workforce, it’s more important than ever for companies to develop programs that offer growth and promotion opportunities. Career advancement is one of the top priorities listed among the majority of this incoming generation. Internally at GMS, we’ve been ahead of the curve by implementing a Leadership Development Program for top-performing frontline employees, aiming to groom them as the future of our management team.”

    Contact us today to learn more.

  • Human resources (HR) outsourcing is an essential aspect of HR management. The hectic schedule of managing a company makes it nearly impossible for a manager to handle all the duties connected with HR. That’s where HR outsourcing comes in handy. It allows a business leader to focus on the day-to-day activities that are falling behind due to HR tasks.

    In today’s competitive market, finding the right partner for HR outsourcing can be challenging. Firms need to determine what they are looking for in a partner and what they need to focus on when evaluating them. You want to work with a company that will make your life easier, not harder. Similar to anything else, it requires the right research and knowledge beforehand so you can identify which firms best fit the job.

    Your Needs

    The first part of this process is asking yourself, “What do I want to gain from this partner?” “What are our needs?” This is not only a big step in identifying what needs to happen, but the HR consulting partner will want to know this too.

    Recruitment and payroll are two big services that you should consider outsourcing. These services take an extensive amount of time, focus, and resources. However, an HR consulting firm can easily handle this for you. The following are additional aspects to consider on your end:

    • Budget and costs
    • Who will be the key point of contact
    • Who will help vet this new partner
    • Who will assist with onboarding this new partner

    Specific Area Of Expertise And Experience 

    There is a whole market of HR consulting firms, but not all of them are alike. Some may specialize in specific services, while others are not niche enough. Choosing this partner will be dependent on what your needs are and whether their services align with these needs.

    Take a look at their knowledge, portfolio, and experience to gain a better understanding of what companies they have serviced in the past. Are these companies similar to yours? Did they have the same needs? What solutions did they offer? These are all important factors to consider when choosing the right partner.

    The best way to determine whether a provider is a good fit for your business is by interviewing them and asking questions about their experience and expertise with similar clients. This will also help you understand how well they will work with your team and handle specific challenges related to your industry or company culture.

    Proof Of Trustworthiness

    An important trait for anyone who wants to work closely with clients is integrity, a quality that can only be achieved through experience and hard work. The best partners are those who know how important it is for them to maintain their reputation. Not to mention, honesty and trustworthiness are a priority in HR, so you want to make sure your partner exhibits these qualities before you sign on the dotted line. Asking for proof of results and case studies for the firm is not only okay but it’s encouraged. This is a great time for the firm to discuss its skills and accomplishments with other clients.

    You need to find a service provider with a good reputation in the industry and one who can meet your needs and expectations. If you still don’t know where to start, ask around or look at their website for testimonials from past clients.

    Understanding Changes And Delivering Results

    A cookie-cutter approach is not the way to go with an HR partner. You want a firm that will tailor their approach to best fit your needs. Because of this, services will ultimately change and evolve over time to continue delivering great results. Trust your partner in this and talk through it accordingly. The goal is for them to provide solutions, and change is a key sign that it’s working.

    Communication Is Set In Stone

    Communication in HR is one of the most important factors. How does this firm communicate with your employees? Do they listen to their needs? These details could make or break a business partnership. Take good note of how responsive they are at the start and how regularly they touch base with you. Are you consistently talking about goals and deadlines you agreed to? You should be speaking regularly with your partner and have frequent reporting calls.

    Updated On The Latest Trends

    The right partner will be well-versed in the latest trends in the field of HR. They should be able to keep up with new laws and regulations, which may affect your business. A good partner will also have access to industry news and information, which they can use to help you make decisions regarding your company. The ability to adapt quickly is critical for any business that wants to succeed in today’s economy.

    A good candidate will not only know all the latest legislation, but they’ll also be able to provide ideas on how these changes may affect your company — and what steps you should take now to prepare yourself for what’s coming down the pike.

    Good Organizational Skills

    An experienced HR consultant should be able to organize all the information you give them into a coherent report that outlines what needs to be fixed and how best to address these issues going forward. A good sense of organization means that they will be able to manage their time, prioritize tasks, and work with you to create a realistic plan of action. They should be able to communicate effectively and clearly and be able to answer your questions in a timely manner.

    Your Goals Align 

    An HR partner should understand what matters most to you and what goals you have for your organization. They should be able to provide insights into how they can help move those goals forward while also offering recommendations. They’ll be able to provide you with insights into what you need to do in order to attract and retain top talent, and they’ll also be able to help you develop strategies for building employee engagement.

    If you want to find an HR partner who will add value to your business, keep an eye out for the following:

    • They have experience working with startups
    • They understand your industry 
    • They have worked with other companies like yours
    • They are familiar with your specific challenges

    The Price Is Right

    Budget is another consideration when choosing an HR consulting partner. With any business relationship, you don’t want to get yourself into something that could cost more than expected or take longer than expected. However, it’s also important to have realistic expectations here, too. A good quality partner will not come cheap. If a vendor is charging less than average for their services, then it’s possible that they’re cutting corners in other areas, such as quality of service or experience level. This is definitely something to steer away from.

    While it’s tempting to go for the cheapest option, this may not be the best decision. It’s important to look at the total cost of ownership and see how much time and money each option will save you in the long run.

    New Year, New HR Partner!

    Now is the best time to consider your business efforts and find ways to improve next year. This might mean improving your HR solutions, too. GMS is here to help you. Whether you want to revamp your benefits offerings to provide more paid time off (PTO) or begin implementing a shorter workweek, our experts are here every step of the way. Ready to get started? Contact us now.

  • Between making high-stakes decisions, budgeting, and strategizing, it’s safe to say business owners have their hands full. However, with a growing business comes more employees and a greater need for a reliable human resources team. This sounds like a great idea until business owners realize how expensive an in-house HR team can be, not to mention how much work goes into building one.

    But what if we told you about another alternative? HR outsourcing is the solution to all your HR problems, no additional staff is needed. If you’re not sure what all HR Outsourcing entails, we’re here to help!

    What Is HR Outsourcing?

    HR outsourcing is the practice of delegating some or all of an organization’s human resource functions to a third-party service provider. This can include functions such as payroll, benefits administration, recruiting, training and development, employee relations, and more.

    It allows companies to focus on their core competencies while outsourcing the complex aspects of HR management. Companies that outsource HR services can focus on improving their core business processes and procedures without having to worry about managing the day-to-day operations related to human resources. Sounds like a win-win!

    What Does HR Outsourcing Include?

    Outsourcing your HR department can save you money while also providing you with access to a wide range of resources. You’ll gain access to a dedicated team that can handle all your staffing needs without ever having to worry about hiring an employee or finding space for them in your office. The following are a variety of services that HR outsourcing includes:

    Benefits

    Putting together a benefits package takes work, but with HR outsourcing, all the benefits you want to provide for your employees are rolled into one package. If you use a professional employer organization (PEO) for this, they can give you access to high-quality, affordable benefits while also assisting you throughout the entire process. These benefits can include:

    • Access to top health care, dental, vision, life, short-term disability, long-term disability, and other types of insurance
    • Voluntary benefits and employee assistance programs
    • COBRA administration
    • 401(k) plan and administration
    • Section 125 plan administration
    • Paid time off (PTO) tracking

    Payroll

    Payroll is yet another time-consuming and challenging task for business owners. But with payroll management services, paying your employees is completely hands-off and handled by a professional. Small and mid-sized companies spend an average of $2,250 per employee per year to manage payroll, and if you’re doing the math right, that’s a significant amount of cash. Payroll management allows you to save money and gives you peace of mind knowing your finances are in good hands. These services often include:

    • Payroll processing
    • Payroll software
    • Payroll tax management
    • Employee self-service

    Human resources

    HR doesn’t just stop at payroll and benefits. There are many functions when it comes to human resources management such as recruiting and retaining talent, tracking vacation time and having a trained professional to answer employee questions. HR outsourcing companies allow you to spend more time growing your business and less time on human resource management.

    Risk management and workplace safety

    Lastly, risk management and workplace safety are among the most important services. U.S. employers are responsible for dealing with the consequences of workplace injuries. According to OSHA, millions of workers suffer serious job-related injuries or illnesses every year. In addition to the resulting downtime and lost productivity, these incidents result in workers’ compensation claims for employers, increasing their insurance rates. Taking proactive measures can help create a safer work environment for your employees, which HR outsourcing companies can assist with.

    How Outsourcing HR Services Can Benefit Your Business

    A few years ago, the term “HR outsourcing” was a foreign concept to most people. But today, it’s becoming more common for companies to outsource their human resources management responsibilities to third parties.

    It’s easy to see why there are many benefits to outsourcing your HR functions, including reduced costs and increased efficiency. The following are additional benefits HR outsourcing includes:

    • Flexibility: You have the ability to choose how many employees you want to hire and how much time you want them to work. In addition, you can adjust your needs, which might mean adding or removing employees from your team depending on the season or other factors.
    • Cost savings: By outsourcing your HR functions, you can save money by not having to hire an entire department of people just for HR tasks. This can help reduce costs while still providing the same level of service as if you were hiring an entire team internally.
    • Efficiency: Outsourcing allows companies with limited resources or expertise in specific areas, such as compliance or payroll management, to receive additional help. This way, they have support from outside experts who specialize in those areas without having to hire an entire team internally (e.g., only payroll experts).

    Difference Between A Professional Employer Organization (PEO) And HR Outsourcing

    As we’ve covered, HR outsourcing is the act of outsourcing the functions of human resources to a third party. A PEO, or professional employer organization, is an organization that provides these services. They are not a staffing agency, and they don’t just provide payroll services—they provide all the administrative support that comes with managing employees, including benefits administration, employee screening, recruitment, payroll processing, and tax reporting.

    In addition to providing administrative support for your business operations, PEOs also offer several other benefits:

    • Reduced risk: By outsourcing HR functions, you’re able to reduce your legal liability and exposure to regulatory fines by hiring professionals who specialize in these areas.
    • Improved efficiency: PEOs can process paperwork faster than you could ever hope to do on your own — saving you time and money!
    • Hassle-free administration: Many small businesses find it difficult to keep up with the ever-changing regulations required by law. Outsourcing those responsibilities allows you to focus on what really matters—running your business.

    Common Myths About HR Outsourcing

    HR outsourcing is surrounded by many myths however, we’re here to set the record straight. The following are the most common myths we’ve heard, and why they aren’t true:

    Myth: You’ll have to deal with a bunch of different people from one company who all have different ideas about how things should be done.

    Reality: A PEO is made up of experts in their field, so you won’t have to worry about having multiple people working on your account. You have one HR expert as your point of contact. There’s no more calling a 1-800 number and having to wait on hold.

    Myth: It’s expensive.

    Reality: Most PEOs charge on a per-employee basis, and you are only paying for what your staffing levels required. This saves you money in the long term.

    Myth: You’ll be losing control over your employees.

    Reality: If you’re outsourcing your HR functions, you’ll be able to maintain your own compliance standards alongside their services, including employee benefits programs and payroll management. You’ll also have access to all their resources, so if there are any issues with your employees’ performance or attendance policies, you can contact them directly instead of having to wait for an answer from someone.

    Myth: A PEO is the same as a staffing agency.

    Reality: PEOs don’t hire people on behalf of clients. Instead, they provide them with all the tools they need to manage their own HR needs themselves-from recruiting to hiring to payroll administration. They do this by working directly with clients’ existing employees to make sure everyone has what they need to do their jobs well and efficiently—and that no one falls through the cracks.

    Who Should Use HR Outsourcing? 

    You may have read this far and are still wondering whether HR outsourcing is a good move for you. But believe us when we say HR outsourcing is truly for every business, big or small. HR plays a critical role in protecting your business from legal issues and creating the right policies, practices, and strategies. Without a solid HR team, your business will likely face these issues:

    • Compliance risks
    • Bad hiring practices
    • Low morale and toxic work environment (sexual harassment, bullying, discrimination, and more)
    • High turnover rates
    • Poor performance

    Any of these issues could seriously derail your business. What if you’re not sure if it’s right for you? Here are questions to ask yourself when deciding:

    • Do I need to add or change my company’s benefits package?
    • Are there any HR processes that are taking up too much time?
    • Do I have specific knowledge and expertise in an area that isn’t related to my core business? (For example, if you’re an insurance company and want to start offering 401(k) plans but don’t have the knowledge or experience in this area.)
    • Have my employees brought various HR issues to my attention? 
    • Do I feel like my time would be better suited somewhere else?
    • Could I provide more benefits or HR services to my employees?

    Where To Get HR Outsourcing

    All of this information about HR outsourcing may have given you a better understanding of what is provided, but you may not know whom to choose. With GMS, you can be sure that your HR outsourcing is handled by trained professionals who understand the industry and have the experience to get the job done. We’ve got a team of experts who can help you find the right people for your business and manage them so that they’re at their best. We also offer benefits administration, payroll services, and more. If you’re interested in learning more about what we can do for your business and how we can help you reach your goals, contact us today!

  • Human resources plays an important role in the daily operations of any business. As a business owner, you could be handling these tasks – payroll, benefits, and training employees. Have you ever felt overwhelmed by the number of hats you’re wearing at once to keep your business running? If so, HR outsourcing might be your new best friend.

    What Is HR Outsourcing?

    HR outsourcing is the practice in which a third-party organization handles some or all of a business’ internal HR responsibilities. Whether you need assistance with one aspect of your business, such as payroll, or you need assistance with a variety of different departments of your business, HR outsourcing can help. Any company that chooses to outsource its HR department may have the opportunity to enjoy the following benefits:

    • Save money 
    • Improve benefits 
    • Lower hiring costs
    • Ensure compliance 

    Before we continue to get into the benefits of outsourcing your HR functions, learn more here about the different outsourcing options available to you.

    Functions HR Processing Provides Small Businesses 

    Payroll processing 

    Managing payroll and tax filings can be one of the most time-consuming and challenging tasks for a small business owner. Your payroll process should be one of your first priorities as you don’t want to upset your employees by paying them late or incorrectly. Although you may think outsourcing your payroll may be more expensive than doing it in-house, in the long run, there are a variety of benefits. On average, small and mid-sized companies spend $2,000 per employee per year to handle payroll. Outsourcing payroll to a PEO like GMS will guarantee compliance with local laws and ensure that your employees are paid appropriately.

    The access to HR tools and resources allows businesses to enjoy the following benefits when they outsource payroll to GMS:

    • Payroll processing 
    • Payroll software 
    • Payroll tax management 
    • Employee self service 

    According to the National Small Business Association, 30% of small business owners spend more than six hours each week on payroll tax administration alone. Stop holding yourself back from what you do best, growing your business, and outsource your payroll.

    Employee benefits 

    Providing your employees with benefits like health insurance and a retirement plan will give your company a competitive advantage in your recruiting efforts. You want to keep and attract quality employees so you can continue to grow your business.

    You can offer your employees the following through a PEO:

    • Master health plan 
    • 401(k) or profit sharing 
    • Life insurance 
    • Dental 
    • Vision
    • Disability 
    • Supplemental insurance

    Outsourcing your employee benefits will save you time, money, simplify employee management, and allow you to spend less time worrying about benefits packages and more time growing your business. At GMS, we offer flexibility, control of premiums, access to data and networks, and overall options that you can’t find anywhere else.

    Risk management 

    As a small business owner, you might find yourself struggling to stay ahead of the risks associated with workers’ compensation and workplace hazards. You’ll need to comply with more rules than just benefits and tax laws. When it comes to workers’ compensation, you should focus on limiting injuries in the workplace and the rising costs of workers’ compensation insurance.

    Any U.S. employer must take responsibility for dealing with the consequences of workplace injuries. Every workplace injury results in a workers’ compensation claim for the employer, increasing their insurance rates. According to the U.S. Bureau of Labor Statistics employers spend an average of $0.45 per hour worked for workers’ compensation.

    To avoid workplace conflicts, and worst-case scenarios, or lawsuits, you can outsource your risk management efforts to an HR expert like GMS. From cost containment to loss prevention, we do it all. Protect your employees and your business by outsourcing your risk management functions today.

    Human resources 

    Managing HR can be quite challenging and may often be intimidating. When you outsource your HR functions like performance management, recruiting, and training, it allows you to spend more time focusing on growing your business, and less time on human resource management. Should you choose to outsource your HR to a PEO like GMS, you will gain assistance and expertise in the following areas:

    • Employee performance management
    • Employee recruiting and training services
    • Human resource audit
    • Human resources information system (HRIS)
    • Learning management
    • Unemployment claims management

    If you choose to outsource your HR functions, the HR partner of choice will assist in determining your performance goals and disciplinary routes for poor performance. Annual reviews, salary negotiations, and other performance-related conversations are always going to be a vital part of your business operations. It’s difficult to run a small business without much support, which is why more employers have turned to an HR outsourcing business.

    Outsource Your HR Functions Today!

    GMS is here to assist with any aspect of your business you need assistance with. From payroll tax management to hiring and recruiting employees for your business, we have experts in every area. We understand you may have questions about the transition process and where to begin. Contact us to learn more!

  • Since its beginnings, artificial intelligence (AI) has helped businesses automate important tasks and make their operations more efficient. It has helped companies identify changing trends and consumer habits, automatically detect fraud and irregular behavior, and provide sales and marketing teams with targeted audiences. There are many benefits of implementing AI in your business however, amidst the COVID-19 pandemic, viewpoints have changed. We all anticipate a bright future for technology, but we’ve also feared things going wrong.

    Studies show that nine out of ten leading businesses invest in AI technologies, but only 15% deploy AI capabilities within their own business. Executives of businesses say that AI makes their business more competitive than ever before. Unfortunately, HR professionals have faced challenges adapting to the potential AI can provide them. It is difficult to implement AI in your business due to the fact that it’s complex and ever-changing. Today, the main challenge for HR professionals is finding AI technologists.

    Reign, an application development firm, conducted a study that showed a 21 percent increase in the number of AI jobs available in the U.S. Research also showed that there was a 27 percent increase in job wages associated with AI-related jobs. Felipe Silberstein, Vice President of Strategy for Reign, said job positions that require AI or machine-learning skills are projected to increase by 71 percent within the next five years.

    You may ask yourself what the problem is if the demand for AI jobs is increasing. Individuals found that the root of the problem is the COVID-19 pandemic and the Great Resignation, based on research and surveys that were conducted. It was reported that 48 percent of executives began utilizing AI at the very beginning of the pandemic. Millions of employees started quitting their jobs in 2021 which left most companies short-staffed and struggling to find good talent. Due to these pandemic-related issues, executives put maximizing their AI capabilities at the bottom of their list of importance.

    Individuals have stated they feel AI imposes a negative impact on their industry because it requires more training or upskilling of workers. It has become increasingly common for executives to say that AI does not improve their businesses’ competitiveness. Negative impacts of AI on businesses that you may want to consider include:

    • AI bias
    • Loss of certain jobs
    • A shift in human experience
    • Global regulations
    • Accelerated hacking
    • AI terrorism

    Upskilling the workforce is a much-needed task that needs to happen amongst the majority of companies. There is a portion of individuals who said they would consider learning tech skills relevant to working with AI technology in the future. However, the number was less than 50% of individuals. This means that individuals with substantial financial resources now have an advantage. Businesses are concerned that once they retrain their employees and invest all this money, these employees will be picked up by their competitors.

    Human resources are one of the most time-consuming components for any small business to manage. Between recruiting and retaining employees to payroll to tracking vacation time, there are many functions when it comes to human resources management. However, you didn’t start your business to become an HR expert, did you? When you outsource your HR functions, it allows you to spend more time focusing on growing your business, and less time on human resource management. Our clients trust that despite our advanced technologies, they’ll receive dedicated GMS experts handling their needs. Learn how outsourcing human resources to an HR outsourcing company like GMS can help.