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  • Hiring is an exciting development for a growing business, but that doesn’t mean it’s easy. According to Glassdoor, it takes an average of 23.8 days to complete the hiring process. That timeline accounts for everything from creating the job description to extending an offer – and all the hard work in between.

    That amount of work is exactly why businesses turn to applicant tracking systems (ATS) to streamline this essential business function. Let’s break down what an ATS does and how it can support your business.

    What Does Applicant Tracking System Software Do?

    An ATS is a form of recruiting software designed to simplify the hiring process. This type of software, also referred to as a talent management system, helps businesses organize important processes and improve internal efficiencies to streamline the entirety of the hiring cycle.

    A typical ATS performs a variety of tasks to automate time-consuming responsibilities and provide additional information. These tasks can include, but are not limited to the following functions and capabilities:

    • An ability to post openings to various job boards.
    • Storage of applicant data as individuals apply to your open positions.
    • Application screening to identify potential matches based on set parameters, keyword filters, and other means.
    • Applicant ranking based on how well resumes match a specific job description.
    • Collaboration tools that allow employers and recruiters to comment on applicants and leave ratings for internal review.
    • Automated emails to schedule interviews, update candidates, and stay connected with priority individuals.

    The Benefits Of Applicant Tracking System For Employers

    When it comes to the hiring process, businesses can use every advantage they can get. An ATS is equipped to give organizations the tools and technology needed to stay competitive while improving their internal procedures. These benefits allow your business to do the following:

    • Find and hire better candidates.
    • Improve the candidate experience.
    • Make the hiring process shorter and more efficient.
    • Increase collaboration during the hiring process.
    • Streamline the onboarding process.
    • Stay competitive in the hiring market.

    Find and hire better candidates

    Between the need for skilled workers and the costs of employee turnover, it’s essential to find the right people for your positions. Tracking systems gives employers an advanced way to identify ideal candidates for each and every role. Employers can prioritize certain skills and other factors to call out more qualified individuals. Some systems can even utilize artificial intelligence to create an ideal profile for a position and predict new success factors for future candidates.

    Another way that an ATS can improve your candidate pool is by helping it grow. These systems can help distribute applications to as many job boards, recruitment sites, social media platforms, and other potential posting destinations as you deem fit for your business. Better yet, users can publish job posts on all these sites simultaneously (or pretty close to it). This streamlined approach to job distribution makes it easier for employers to reach more people without nearly as much of the legwork.

    Improve the candidate experience

    Tracking technology also allows employers to improve your reach is to simplify the application process for candidates. An ATS gives job seekers the ability to apply for your positions on their phone, laptop, tablet, or any other device. Better yet, applicants won’t need to create a new account and log in to apply to your openings. In turn, promising candidates won’t drop out early to pursue other openings with fewer roadblocks.

    Make the hiring process shorter and more efficient

    Manually reviewing applications is a long, tedious process. An ATS takes out a lot of the menial labor by organizing and optimizing the review process.

    As individuals submit their applications, an ATS automatically pulls every submission into a central database. These systems will then use varying means ranging from pre-set filters to AI machine learning to sort and even rule out certain applicants. These methods give your business a streamlined process to review organized, qualified applications.

    A good ATS also reduces time-to-fill for job openings is by simplifying the applicant management process. An ATS makes it quick and easy to message candidates through a single platform. Businesses can even automate large portions of applicant management through chatbots that screen questions and address frequently asked questions.

    Applicant tracking technology also automates the scheduling process. It takes time to review calendars, set up interviews, and send out information. An ATS typically offers integrated scheduling tools to set up interviews and send out meeting reminders. This process not only saves you from more initial work, but also keeps everyone on the same page to limit confusion and potential no-shows.

    Increase collaboration during the hiring process

    It’s not always easy to get everyone on the same page during the hiring process. It’s good to get input from different individuals within your company, but it can be difficult to collect everyone’s input and keep everyone in the loop. The right system gives users a space to work together in an organized fashion.

    ATS software allows different team members to take notes, see resumes, and review other information all in one place. The recruiter can use this system to assign out roles and set up alerts for anyone needed in the hiring process. These tools help ensure that everyone can take part in selecting the right candidate without adding extra complications.

    Streamline the onboarding process

    An ATS offers benefits that extend beyond job applications and interviews. These systems also allow businesses to speed up the onboarding process and help qualified candidates start their new careers off right.

    Once you fill a position, the ATS starts the welcoming process for your newest employee. Employers can set up their ATS to provide new hires with key information about their role, the business, and expectations for the initial few weeks. These systems can also prompt individuals to fill out new employee forms and other necessary paperwork.

    Stay competitive in the hiring market

    The vast majority of Fortune 500 companies use some form of ATS in their hiring process. Based on all the benefits listed above, that makes sense. However, that doesn’t mean that this type of software is exclusive to larger companies.

    Businesses of all sizes can reap the benefits of an ATS. A good system can help your company stay ahead of big corporations by making your openings more visible and giving applicants quick, easy access to your business.

    Streamline Your Recruiting And Hiring Process

    As the labor market tightens, hiring is only getting harder for small and mid-size businesses. That’s why GMS partners with businesses to manage this essential process. Between our team of HR experts and cutting-edge applicant tracking technology, we can help you recruit top talent while saving you from the time it takes to do so.

    Ready to simplify your business? Contact us now to talk to our recruiting and hiring managers about how GMS can help solve your talent acquisition challenges.

  • COVID-19 has brought many unforeseen challenges, however, one that employers can get ahead of is the Great Resignation. The term was coined in 2019 by Texas A&M’s Anthony Klotz. This prediction displayed a widespread voluntary removal of those within the workforce. As we come to the end of the year, the Great Resignation has continued to gain momentum. According to Harvard Business Review, beginning in April 2021, over four million employees quit within that month alone. This led to a record-breaking number of open positions reaching 10.7 million by July.  

    Is the worst yet to come? Experts are telling employers to brace themselves as they expect even more employees to quit after year-end benefits, such as bonuses, commissions, celebrations, and PTO, all diminish.  

    Heading into 2022, this is going to play a major role in the way businesses operate. To attract and retain top talent, one must understand why employees are leaving. Spoiler alert, contrary to popular belief, the once generous government benefits that may have encouraged people to opt-out of actual work are actually not to blame.  

    There are two key trends that have been identified thus far. First, mid-career employees (those aged 30 to 45 years old) have the greatest increase in resignation rates. It’s possible that this is caused by “pandemic epiphanies,” meaning employees have simply reached their breaking point and are choosing to step away from the heavy workloads and stressors that come along with their current 9-5. The second trend points out that the dramatic variance of turnover rates in different industries. Specifically, both the technology and health care industries have seen much higher attrition. It’s assumed that these industries witnessed such change due to the increase in demand for both during the pandemic, ultimately leading to burnout.  

    Strategies To Combat The Resignation: 

    Knowing that the cost to onboard a new employee exceeds $4,000, now more than ever employers need to focus on keeping the talent that they already have. Consider these strategies to help: 

    1. Put work-life balance at the top of your organization’s list 
    2. Invest in your employees – give them competitive compensation, top-notch healthcare, and retirement 
    3. Train leaders to recognize and address burnout 
    4. Create a clear pathway for employee growth by investing in training and development 
    5. Implement “stay interviews,” which consist of management interviewing employees to get a better pulse on their experience and allows the employee to share any recommendations or feedback that they may have. 

    How GMS can make a difference:  

    Partnering with GMS allows business owners to have valuable tools to continue to increase employee retention. The Great Resignation is by no means coming to an end as we head into 2022. Partnering with GMS can combat the challenges that await. Contact GMS today to learn how we can help you tackle The Great Resignation.  

  • On November 19th, President Biden’s $1 trillion Infrastructure Law (Infrastructure Investment and Jobs Act) was passed by the House after months of delays and will now be sent to the Senate to approve. The White House is projecting that this bill will create 2 million jobs over the coming decade. However, many are worried about where the funding will come from. 

    This bill will deliver $550 billion of new federal investments in American infrastructure over five years, which will touch everything from bridges and roads to the nation’s broadband, water, and energy systems. Also included in this bill are expanded child-care, paid leave, expanded healthcare coverage, an extension on child tax credit payments, green energy investments and tax credits, universal pre-K, affordable housing, and various other programs.  

    One upside for some is that this could create many jobs in construction, transportation, and energy. The New York Times goes on to describe that if there isn’t enough labor to keep up with the demand, then Biden’s plans could be set back. In an already-tight labor market, employers can expect even more hiring hurdles, should the bill be approved. 

    Employers in the construction, transportation, and energy industries should be proactive in recruiting talent and growing their workforce. GMS can help by creating a hiring plan for your company, streamlining your onboarding process, and ensuring a seamless payroll. Contact us today.  

  • Take off the Recruiter Hat

    Life-work balance for small business owners begins with self-control. Owners say they have too many roles to play but stubbornly hang on to them all. Sooner or later, owners like you have to give up something. I would start with recruiting.

    Just for a moment, apply some time management to the task. List the minutes you spend on framing an ad or posting, on qualifying phone calls, on live interviews, and background checks. Add it up, and you will find you spend 4-5 hours on each candidate. If you are doing it well, that is about 30 hours out of your week.

    Assign your hourly rate to the 30, and add the hours it will take to train and orient the new hire. Lastly, determine how long it will take to regain the lost cost.

    Why Do it at All?

    Structured recruitment, expert interviewing, and regulatory compliance are some of the benefits of an established PEO.

    Leave it to Them

    One you are confident that your PEO understands your staffing needs and business culture, job descriptions and required skills, delegate the recruiting to the real pros. Among other reasons, the PEO has a fully functioning pipeline tapping the available labor pool for your needs and those of other clients. They have a constant figure on the pulse of available candidates. They also have a greater playing field, interview within Federal and state labor laws, and place those candidates who are ready and anxious to prove themselves.

    About the Author

    Carolyn Sokol is founder and President of PEOcompare.com, a current member of SHRM (Society for Human Resource Management) and writes on issues that affect small businesses.

    Image Credit: www.akersassistants.com

  • In the recruiting world we have heard it all before… 

    • “I don’t want to post a compensation range because everyone will expect the high end.” 
    • “I don’t want my current employees to know what others are paid.”
    • “I don’t want my competitors to know our salaries.”
    • “Other postings online do not include a compensation range, so why should I?”

    Although these are common thoughts for all business owners, it can be directly affecting your candidate pool numbers. In fact, SMART Recruit Online found that job advertisements with a compensation listed increased the total number of candidates by 30 percent. Small and mid-sized companies are at a disadvantage by not posting a wage since larger companies have known salary and hourly rates.

    Image of a job interview. Listing compensations ranges can help businesses with employee recruitment.

    The Benefits of Listing a Compensation Range

    If you post a compensation range, then you are more likely to attract candidates not yet earning your listed range. When it comes time for an interview and compensation negotiations, you will have more opportunity to agree upon a reasonable pay based on the candidate’s experience. When posting a pay range, adding text like “commensurate with experience” will give applicants a realistic idea of what pay relates to them.  

    In fact, wide pay ranges can lead to more applicants in different stages of their career. If you have an open position in a field with a struggling work force, then a range with a low and high end will allow more room for trainable new hires. You will be able to weigh your options when deciding if you want to hire based on experience and commit time and effort into training.   

    According to a study by Ongig, the average candidate spends approximately 55 seconds viewing text ads. Only seconds determine if you will grab a candidate’s attention. Having the most important information in your ad can make or break your chances of receiving applicants. Not to mention, you will waste less time getting your applicants all the way to the interview stage to learn that they are out of your pay range.

    Score Top Talent at the Right Price

    Group Management Services offers national and local compensation studies for businesses looking to hire. We also provide interview and compensation negotiation coaching so that you score the top talent at the right price. Our recruitment staff is able to create custom job ads based on your needs and other effective recruiting strategies. Contact GMS today for more information about how our employee training and recruiting services can help you find the right employees. 

  • Most entrepreneurs start a business based on something they are passionate about. For the majority of auto shop owners, their dream started working on cars. When that passion turns into a business venture, it quickly becomes apparent that running your own auto shop requires more than just a love of cars.

    Leading a group of people, keeping systems in place to track hours, and tracking employee history are just a few of the tasks that shop owners handle on an everyday basis. Owners have enough on their plate in handling day-to-day business, but the work is not done when the shop closes. Here are some of the most common HR issues facing these small business owners.

    Image of an auto repair employee. Contact GMS about human resources help for the auto industry.

    Employee Recruitment and Retention

    Through the combination of an aging workforce and a lack of good, young workers, an inevitable skills shortage looms near. As the industry grows with technological advancements driving consumer demand, the need for quality employees is greater than ever, but younger workers are shifting away from a career path as an auto technician.

    According to the U.S. Bureau of Labor Statistics, “more than 237,000 jobs are expected to open up in the automotive repair field between 2014-24.” With a large volume of auto techs retiring in the coming years, and a lack of skilled replacements entering the industry, there is a huge emphasis on recruiting and retaining quality workers. 

    Record Keeping

    Documentation is an often overlooked aspect of running any business. Shop owners must have detailed manuals setting the expectations of the position. These documents must be updated every year to make sure you are keeping up to date with any changes in the industry. 

    If you fail to provide this information to employees, it is difficult to hold them accountable. Throughout their employment, you must keep detailed records of their employment history, including any disciplinary actions taken throughout their time with the company. Should their actions require termination, you will have all of the information in their employee file to help protect your company from any claims of wrongful termination or other legal action. 

    According to the Hiscox Employee Lawsuit Handbook, “19% of employment charges resulted in defense and settlement costs averaging a total of $125,000.” The time and money associated with these potential lawsuits only further support the need to document everything.

    Compliance

    Automotive technicians face a much higher volume of potential workplace hazards than employees in most other industries, therefore the Department of Labor and the Occupational Safety and Health Act has stringent workplace standards for employees. 

    The use of tools and machinery, as well as toxic chemicals, creates an environment that justifies regulation. OSHA breaks down the primary risks stating, “Chemical hazards may include volatile organics from paints, fillers and solvents; diisocyanates, polyisocyanates, and hexavalent chromium from spray painting operations; silica from sandblasting operations; dusts from sanding; and metal fumes from welding and cutting. Physical hazards include repetitive stress and other ergonomic injuries, noise, lifts, cutting tools, and oil and grease on walking surfaces.”. A list of the most common citations can be found here.

    Partner with a PEO

    Many shops across the country are turning to Professional Employer Organizations to handle all of these Human Resource functions, so owners can focus on the business. No more late nights in the office running payroll, reviewing candidates, and updating handbooks. Contact GMS today to see how we can make your business simpler, safer, and stronger!

  • If you think it’s hard to find good talent these days, you’re not alone. The Society for Human Resource Management conducted a survey of more than 3,300 HR professionals and found that “more than two-thirds of surveyed organizations hiring full-time staff indicate[d] they are having a difficult time recruiting for job openings.”

    Thanks to a combination of factors, hiring employees that truly fit your requirements can be a tricky process. SHRM’s Jennifer Schramm cites “a low number of applicants, lack of needed work experience among those that do apply, competition from other employers, and a lack of technical skills among job applicants” as obstacles that employers face these days.

    When it comes to finding the right applicant for the job, it’s important to know where to look. Here’s where you should consider looking to find the quality talent your business needs to grow.

    Image of employee recruiting for businesses.

    Consider Employee Referrals and Networks

    Employee referrals are a way to utilize the way to utilize personal and professional networks to your company’s advantage. An internal referral program can be a very effective way to find quality employees, particularly if the referrals lead to new company leaders or management. 

    Engaged employees will have a good understanding of what it takes to fit in at a company and are more likely to want their company to succeed. Because of this, they may refer friends and colleagues who may suit your open positions. They’re also less likely to refer unqualified friends and family because their reputation may be affected by a bad suggestion. Ultimately, a 2016 Gallup study showed that “internal referrals were more than 40% more likely to interview successfully and be offered a spot in the program than candidates who applied through the company’s media channels.”

    Use Social Media

    If you’re looking for a very specific type of applicant, social media may work for you. Social media recruitment ads can help you get your open position in front of a large audience of people that match your qualifications. Facebook advertising in particular allows you to get extremely granular in your targeting. You can narrow down your search to people with certain job titles, who work in specific industries, and live in a certain area. With a well-made social media ad, you can reach a large group of targeted people.

    Another benefit of using social media is that it can allow companies to weed out bad candidates. According to a Forbes article by TalentCulture CEO Meghan M. Biro, “61% of hiring managers found something they didn’t like on a candidate’s social media account, and 55% of hiring managers reconsidered the hire based on what they found.” A little bit of detective work on social media can help you whittle down exactly who you bring in for interviews and save you and your team some valuable time.

    Hire Internally

    Internal hires are already familiar with the company, so you know where they’ll stand when it comes to your corporate culture. You also won’t need to spend nearly as much time on orientation just to get them up to speed. University of Pennsylvania Wharton School professor Matthew Bidwell has also done research indicating that external hires can “earn 18 percent to 20 percent more than existing employees promoted to similar positions.”

    If your business requires somebody with a new skill set or a fresh set of ideas, external hires make sense. If you have people in your company that you believe can step up and do the job, an internal hire can be an effective – and cheaper – solution that can lead to more immediate results.

    Find the Right People for Your Business

    A targeted recruitment approach can help you find the right employees for your business. Of course, the search is just one part of a long, and potentially costly, process. 

    A Professional Employer Organization can help you recruit, train, and retain quality employees. Our experts can help you identify the most qualified job candidates and offer them attractive benefits. Contact us today to talk with one of our experts about employee training and recruiting services that will help you grow your business. 

  • From payroll to benefits to recruitment, human resources is an important function that keeps a business running. And like any other business function, the management and implementation of these HR responsibilities all incur costs that you’ll need to factor into your budget as you plan for the new year.

    Whether you’re basing your budget on last year’s expenditures or planning every budget item from scratch, it’s important to review your different HR needs, so you don’t come up short in the places where you need extra funds. The better you can understand these HR costs, the better you can plan what the next year will look like for your company. Done well, an HR budget will help to prevent over-hiring and understaffing and ensure you have the resources to keep your team engaged on the job. Here are some key HR components that you should consider when planning a yearly budget.

    Image of money set aside for HR budgeting items for next year.

    Recruitment

    There is one big question when it comes to employee recruitment: How many people do you expect to add next year? The answer to that question will dictate how much you’ll need to put into recruitment efforts for your business.

    Employee recruitment can be expensive. The Society for Human Resource Management (SHRM) writes that companies spend an average of $4,129 per hire in recruitment costs. These costs include attempts to find candidates and actions to help qualify those targeted recruits, such as:

    • Advertising
    • Travel and events (e.g., College job fairs)
    • Drug testing
    • Background checks
    • Agency fees
    • Relocation

    Not to mention, you’ll have to account for the time it takes to screen and interview candidates, which could take anywhere from a couple of weeks to a few months. Every hour spent during the hiring process is an hour taken away from other essential business tasks. 

    Whether you’re looking to expand your staff or work in a high turnover industry, you should create a budget for your planned recruiting efforts. If you’ve been keeping track of how much you’ve spent on recruiting in past years, extrapolate that number based on how many candidates you want to hire in the coming year so that you don’t come up short when you need to fill an important position.

    Training and Development

    Once you hire new employees, you’ll need to train them. Not only can training better prepare your new employees for their positions, “95 percent of hiring managers considered employee training as a key retention tool,” according to a study conducted by the Chartered Institute of Personnel and Development.

    Of course, training and development costs money. According to the Association for Talent Development, the average cost of training is $1,888 per employee for businesses with fewer than 500 workers. These costs can include:

    • Internal training programs
    • Event registration fees
    • Travel expenses
    • Educational materials
    • Consulting fees

    Employee Wages and Salaries

    Payroll is one of the biggest items that you’ll have in your HR budget. The Houston Chronicle estimates that the average business spends somewhere between 15 to 30 percent of its gross revenue on payroll, although companies in the service industry may be closer to the 50 percent range. Regardless of your industry, make sure to take employee salaries into account, plus any estimated costs for any new employees you expect to add on in the coming year.

    While salaries are a huge part of your compensation budget, there are other considerations as well, such as payroll management costs, potential overtime hours, and any incentive programs. This also includes any raises, whether you give employees raises that coincide with performance evaluations or annual cost of living raises to account for inflation.

    Employee Benefits

    In addition to employee pay, there’s also a wide variety of benefits, such as health insurance, 401(k) contributions, and any other ancillary benefits, that you may offer as part of your overall employee compensation package. These costs will require a portion of your HR budget, too. 

    If you offer health insurance, as many small businesses do, it will likely take up a sizable portion of that budget. According to SHRM, the “average cost of providing healthcare makes up 7.6 percent of a company’s annual operating budget.” As an employer, you can control some of these costs by electing how much of the health insurance premium you’ll contribute and how much will be your employees’ responsibility. As you go through the budgeting process, you’ll want to account for any possible increases for next year’s health insurance premium, as well as review your contribution strategy. Keep in mind, these healthcare costs don’t necessarily include other insurance benefits you may offer, such as dental, vision, and life insurance. 

    Additionally, if you contribute to your employees’ 401(k) retirement plans, you’ll need to factor these amounts in to your budget as well. Fortunately, this should be an easy line item to budget for next year. Since it’s a fixed percentage, you can estimate that all employees will receive a specific amount.

    Employee and Labor Relations

    While compensation, benefits, and training can go a long way toward improving employee morale, there are some other measures you can take to reward workers. These include:

    • Service awards
    • Recognition efforts
    • Performance and attendance incentives
    • Company events
    • Employee birthday perks and gifts

    These items may not make up a massive part of your budget compared to other key HR needs, but they can be important additions to your company culture. Also, you never want to find out that you have to cancel those service awards because you forgot to plan ahead for them in past budgeting meetings. 

    On the flip side, you may also want to consider setting aside a small portion of the budget in case you face any labor relations issues. Budgeting for outplacement or legal fees can help your business prepare in case you have any unexpected issues in the upcoming year. 

    Health, Safety, and Security

    HR budgeting also gives you a chance to invest in the well-being of your employees by making your work environment a safer, healthier place. By putting aside some of the budget for certain programs or initiatives, your business can reap the rewards of focusing on health, safety, and security.

    In terms of workplace safety, GMS’ own Jeff Costin notes that workplace safety programs can increase workplace productivity, improve retention rates, and reduce costs affiliated with injuries at work. Budgeting for safety training programs, new safety manuals, regular inspections, and other strategies can help you manage workers’ compensation claims costs and make your workplace safer in the coming year.

    Budgeting for health-related programs can also be a worthwhile expense to plan for the next year, as 75 percent of all healthcare costs are attributed to preventable conditions. A workplace wellness program can help your employees develop a healthier lifestyle through a variety of initiatives, such as:

    • Smoking cessation programs
    • The addition of a fitness facility or space
    • Health screenings
    • Lunch and learn events

    An HR Budgeting Partner

    Once you have your HR budget in place, you’ll need to have the support to move forward with all your plans and manage your HR administration needs. A Professional Employer Organization (PEO) like Group Management Services (GMS) can help businesses manage these HR functions, including payroll and benefits administration. 

    If you have any questions about how to get the most out of your HR budget or are worried about any compliance concerns associated with managing HR, contact GMS today to talk with one of our experts about how we can help your business prepare for the future.