Columbus Chamber Blog: Columbus Business News

Tis the season! Internship season, that is.

It's internship season! This is the time of year when college students traditionally seek internship opportunities to gain meaningful work experience, supplement their academic coursework and, in some cases, even earn some extra cash during their summer break from school. 

Internships are vital to preparing our future workforce and integral to retaining educated young people in the Columbus Region—after all, it is through real work experience with local companies that students better understand the employment opportunities available to them right here in our community. In addition, employers increasingly expect their entry talent to have previous experience—which students gain through internships. 

Supply vs. Demand | Benefit vs. Cost

The demand among students for internships, however, far outpaces the supply offered by employers. Many more students seek internships but are disappointed in the lack of offerings and opportunities. Businesses may be discouraged from offering internships because of the perceived hassle surrounding the process, from conceiving of an internship position to identifying qualified internship candidates to implementing and supervising the intern. The problem is compounded by stories in the national news suggesting that offering internships to college students puts employers at risk. 

In reality, internships are well worth the small amount of effort that goes into putting together a high-quality opportunity, and ColumbusInternships.com makes it easier than ever to find interns.

Tips and Best Practices - Paid & Unpaid Internships

The Columbus Chamber offers these tips and reminders to ensure everyone has accurate information about paid and unpaid internships:

• It is a best practice to pay wages to an intern.
• Small businesses and non-profit organizations are held to a different standard than large, for-profit corporations. An individual can volunteer for a non-profit, like the YMCA; one cannot volunteer for a Fortune 500 company.
• Employers (regardless of tax status) should ensure that interns work with their college or university to obtain college credit if the internship is unpaid. 
• Interns must be compensated for the work they do. Compensation does not necessarily mean wages. Most often, students earn college credit in place of earning a wage. There are other creative things that employers can offer, like paid attendance to events and conferences offered by the business. Also, grants, such as Ohio's Third Frontier Internship Program, may be available to businesses who qualify. I can help employers think through options and navigate funding sources.

Note that the intern portrayed in the article was not enrolled in college and, therefore, could not earn college credit to compensate her for the time she spent essentially volunteering for a large, for-profit corporation. 

Other Helpful Tips 

• Post internship position descriptions and source candidates at ColumbusInternships.com and OhioMeansJobs (narrowing search criteria to “interns”). I can help you navigate specific career centers and college campuses.
• The Columbus Chamber offers a series of brief, informational videos housed at www.ColumbusInternships.com regarding best practices on how to provide high quality internships so that both the employer and the intern get value from the experience.
• Finally, employers should seek legal advice from someone who specializes in employment law for specific questions.

As always, I am available to consult with employers on how to implement “high quality” experiences. Contact me at andrea_applegate@columbus.org.

With more than 140,000 students attending colleges and universities in the Columbus Region, there's an eager and skilled workforce just waiting for you. The Columbus Chamber and ColumbusInternships.com are here to help you get started.

 

Increase Hiring of Diversity Candidates With These Resources

A local employer with a global presence recently reached out to the Columbus Chamber to help them with “outreach efforts in our continuing endeavors to maintain a diverse workforce” as a part of their company affirmative action program. This employer strives to make job opportunities available to diversity candidates (i.e., minorities, women, veterans and others) who are traditionally considered to be under represented in the workforce. 

Resources to Connect with Diverse Workforce Populations

Register as an employer and source candidates at www.OhioMeansJobs.com. With all other criteria being equal, resumes of veterans will be delivered at the top of search results. Likewise, there is a way to set selection criteria for “diversity” candidates. In addition, OMJ scours company websites (and other job boards—which accounts for duplication) for positions descriptions, so it’s likely that your company’s available positions already appear on OMJ. However, you should post directly to OMJ. To learn how to maximize your OMJ account, set up a free training session with folks from OMJ. Contact Tanya Calbert, Ohio Means Jobs Project Manager. 

The Central Ohio Diversity Consortium is an excellent resource for employers who want to launch or enhance their diversity and inclusion program. Contact David Sullivan for membership in this employer-led organization comprised of diversity practitioners from great local companies like Ohio Health, Nationwide, Limited Brands, Abercrombie & Fitch, and Honda of America Manufacturing.

Employers interested in providing employment opportunities for individuals with disabilities (the hidden “D” in diversity) in the Central Ohio area:

Ohio Business Leadership Network helps build workplaces, marketplaces, and supply chains where people with disabilities are respected for their talents; and recognizes and supports best practices in the employment and advancement of people with disabilities; etc. Contact Leslie Wilson for information about membership to the Ohio BLN and to be alerted on upcoming training and workshops. Sign up for the USBLN e-newsletter.

There is funding available for employers who hire candidates who meet specific eligibility criteria—many of whom are considered “diverse”:

• COWIC is the employment “one-stop” in Columbus and Franklin County. Contact Jo Youngs, Project Manager.

• Ohio Works First allows employers to 1) add workers without adding overhead, 2) get tax credits for every participant you hire—upto $9,000, and 3) find workers who are ready to work for your company 

• The Work Opportunity Tax Credit Program provides Ohio Employers with a tax credit against their federal tax liability when they hire individuals from nine targeted groups of disadvantaged job seekers. There are no limits to the number of new hires who can qualify an employer for the tax credit. 

• Ohio Department of Job & Family Services provides employment services and training for veterans who are job seekers, and helps businesses navigate any funding opportunities and incentives that may be available. Contact John McClure, Veteran’s Program Manager, Region 6.

Some other places to source “diversity” candidates:

• GrapeVine Columbus | Central Ohio’s newest way to connect to minority professionals. Perfect for: Career/Job Postings, Company Press Releases, Event Announcements (click Advertising/Pricing or contact Shanelle Lewis). 

• Empleos and Employment | Professional Hispanics and Latinos contact Cristina Villacinda-Farr

Of course, diversity does not simply mean race or ethnicity. It is in the best interest of business to employ a workforce that represents your customer base and your leadership represents your workforce. 

• Connect with college students and recent college graduates seeking internships:  www.ColumbusInternships.com
• Connect with graduates of Historically Black Colleges & Universities
• Connect with mid-career professionals through Scioto Ridge Job Networking Group and Forty-PLUS.

Employers and Third Party Recruiters can gain free access to Talent Profiles of Right Management candidates and a Job Bank to post jobs to the same group The process is very simple:

• Go to www.right.com
• Place your cursor on the orange “I Am Looking For…” banner
• Click on the “Are you hiring?” link in the drop-down menu
• Click the “SIGN UP NOW” button and complete the brief registration form
• Or contact Susan Foote, the Right Management Job Resource Consultant

Many companies seek older workers to fill key positions, particularly customer-facing roles. Reasons these employers cite include for the advantages of older workers over younger counterparts:

• Are more flexible regarding work hours and locations; can accommodate non-traditional shifts
• Can fill temporary, seasonal or parttime work
• Have strong desire to apply their knowledge and skill to benefit the company and mission
• Serve as role models and mentors

Organizations that reach out to “senior” workers and retirees in the Central Ohio area:

• “Mature Staffing Systems” via Mature Services  
• Employment for Seniors

By the same token, it is as important to bring younger people, especially high school students and young adults, into the workplace to help them get acclimated to "real" work environment. Take advantage of the opportunity to bring young people into the workplace through the SOAR Hire program.

 

 

Recruiting Candidates from Outside the Columbus Region

There are many reasons why local employers recruit candidates from outside the Columbus Region. Hospitals and research institutions seek individuals with exceptional reputations to, among other things, elevate their own national and international status. Other businesses source talent from well-known industry locales, such as NYC for the fashion industry, Hartford, CT for actuaries, or Cincinnati for experienced brand managers. Sometimes, employers build pipelines for entry-level talent with universities across the country because specific degree programs are not offered locally.

Consequently, the Columbus Region has a proud history of welcoming people who come from someplace else. The diversity that comes with people who possess different backgrounds, experiences, and ways of approaching the world makes Central Ohio a richer, vibrant, more interesting community in which to live, work and start a business.

The Columbus Chamber has long provided leadership in workforce attraction and retention. When a group of human resource executives from Columbus Partnership companies assembled recently to discuss ways to make it easier to recruit talent from outside the Columbus Region, the Columbus Chamber compiled a list of information and links to resources to help them market Columbus to talent from outside the region to address their hiring needs. 

1. “Awesome Relocation Services”

LiveWorkPlayColumbus is a great resource for companies to use to help prospects and their families get a first look at Columbus and recognize they can replicate, if not advance, their lifestyle by moving to Columbus. In addition to the website, recruiters can leverage the “recruiter tool” which allows them to easily create and send customized emails to prospects who may be considering relocating to the Columbus region. Register as a New User here.

At LiveWorkPlayColumbus.com, check out the Best of Everything video. Embed code is provided so companies can post the video to their own Careers webpage. 

Other great videos touting Columbus

• Check US Out | see what makes Columbus unique, exciting, unexpected, open & smart

• 2010 National Number 1’s | Columbus is home to the best science museum, the best zoo, the best ice cream...and much, much more!

• Columbus: An Open Look | open for business and open for your life

• YPs declare I Choose Columbus and Columbus is A Vibrant City for Young Professionals

• It Is Here | history resounds and opportunity abounds

• Seeing is Believing | a variety of videos showcasing different parts of Columbus

The Columbus Chamber and Columbus2020 keep a running tally of accolades, rankings and superlatives regarding the Columbus region. Check out the latest (or search by key words for rankings that may resonate with individual recruits): Columbus Region Rankings and Columbus In The News 

Other websites

• Transplants to the Columbus region: liveworkplaycolumbus.com

• Columbus from a business perspective: columbus.org and http://columbusregion.com/. And the 2011 Columbus Region Factbook

• Plan a weekend visit via Experience Columbus, the travel and tourism bureau

• Check out the vibrancy of Columbus’ Downtown: downtowncolumbus.com and http://columbushighfive.com/ 

2. Effectively Selling Columbus

The Columbus Chamber’s manager of young professionals, Robbie Banks (robbie_banks@columbus.org), is available as a resource to companies to conduct trainings or “brown bags” to share the resources that are available to sell Columbus to people considering relocating and to connect people to the community so they’ll be more satisfied—and more likely to stay. 

As a regular part of her job, Robbie works very hard to make Columbus famous as a destination where young and talented artists, entrepreneurs and professionals can achieve their career/life aspirations. She has many tools and resources available to help connect people to each other, to non-profit and YP organizations, and to the community. One of those tools is the weekly email promoting Activities and Events for YPs. Sign up for it here.

Learn more about the importance of YPs to our community at the Columbus Chamber's website.

3. What Makes Columbus Cool?

As a part of our on-going research of the young and talented (originally conducted by Rebecca Ryan’s firm in ’06 and ‘07), the Columbus Chamber recently released the report, titled What Makes Columbus “Cool” for the Young and Talented: 2011 State of the Young Professional, which highlights how people feel about Columbus relative to factors like Earning, After Hours, Cost of Lifestyle, etc. based on a survey done over the summer. Columbus is, indeed, a place where creative-types—regardless of age—can feel energized and engaged. 

4. Connecting Out-of-Town Recruits to Columbus “Ambassadors”

In the event you have an executive you’d like to introduce to peers in the Columbus Region, we can work with you to help organize a welcome dinner, reception, etc. for that executive. Indeed, the Columbus Partnership can help ensure the right people are in the room.

Sharon Cameron owns Connections, an executive “concierge” service to help executives get connected to the Columbus community (dinner parties, country clubs, private schools, etc.). “Our goal is to assist you in landing the candidate and then transitioning that new hire and their family into the Columbus area.” (Connections is a Chamber member.)

Also, Robbie (robbie_banks@columbus.org) is your contact for the “YP Ambassadors” program. In the event you’d like to connect a recruit with a neutral third-party who can, nonetheless, give an enthusiastic endorsement of living in Columbus, Robbie can help make that happen. By the way, recruits don’t necessarily have to be “YPs.” We match people based on interest and life-stage rather than age, which is more relevant. 

Onboarding Columbus, offered through Leadership Columbus, is an unforgettable two days of community orientation and networking where participants learn about and connect with the Columbus community from the inside. Gain access to valuable information about the issues facing our community, as well as meet new people, explore the places and experience the leadership that makes Columbus extraordinary. Program is relevant for recent transplants as well as those who have lived here their entire lives. 

5. Trailing Spouse Employment

Sometimes your recruiters are challenged to close the deal because the decision to relocate to the Columbus Region is predicated on finding employment for the trailing spouse. Feel free to email me (andrea_applegate@columbus.org) the resume of the trailing spouse and I will share it with my network of corporate recruiters and staffing agents to uncover potential opportunities. At your request, I can also provide information and links to resources for to assist the trailing spouse when conducting a local job search. 

A key to economic growth in Ohio is a highly skilled workforce

A key to economic growth in Ohio is a highly skilled workforce. 

That according to the monthly newsletter (March 2012) published by the University System of Ohio | Ohio Board of Regents to connect the higher education community to the local business community. The article, Industry Spotlights Shining Bright, goes on to outline the training and education opportunities that are available to meet the workforce needs of employers in these specific high-demand industries:

• Oil and gas

• Insurance

• Manufacturing

• Information Technology

Read the full article here.

In my role with the Columbus Chamber in support of the Columbus2020! strategic approach to economic development, I interact with business owners and HR executives from a workforce perspective. Through personal interviews, I gather information on hard-to-fill positions, skill gaps, and challenges in sourcing talent so that we can identify and better understand themes and trends that impact the business community in the Columbus Region. In addition, through these interactions, I am able to connect these businesses to information and resources that will be immediately helpful to address their workforce needs, including training and education programs to source qualified candidates and to upgrade the skills of their existing workforce. I am eager to chat with you about your workforce needs.

To schedule a meeting, you can check out my availability on my public calendar or send me an email with potential dates and times.

Chamber Members Make Best Places to Work List

By Andrea Applegate, Director, Workforce

At the Columbus Chamber, we’ve always said that Columbus is a great place to live and work. We applaud all the businesses in our community who “walk the walk” by providing a workplace that is productive, supportive and fun.

In 2011, 20 members of our Chamber have been named finalists in Columbus Business First’s list of Best Places to Work. They include:

Accenture
Axia Consulting LLC
Cardinal Solutions Group Inc.
Delta Energy LLC
Dynamit Technologies LLC
Fifth Third Bank
GBQ Partners LLC
Glimcher Realty Trust
Navigator Management Partners LLC
OCLC Inc.
Parallel Technologies
Plante & Moran PLLC
Portfolio Creative LLC
Quantum Health Inc.
Riverside Radiology and Interventional Associates Inc.
Safelite AutoGlass
Schottenstein Zox & Dunn Co. LPA
Sogeti USA LLC
Total Quality Logistics
Zipline Logistics LLC

See the full list on the Business First website. Honorees will be announced at an awards program Nov. 9.

Join the Chamber's Board of Directors in Youth Development and Employment

By Andrea Applegate, Director of Workforce

Michael Dalby, the Chamber's new president and CEO, recently congratulated the representatives on the Chamber's Board of Directors for their participation in developing the next generation workforce: today's high school and college students. There are many opportunities for your business to get involved.

One such opportunity, which is offered through the Central Ohio Workforce Investment Corporation, matches 16- to 24-year-old job seekers to seasonal or short-term employment opportunities. Not only is this a great way to introduce young people to what it means to be in the workplace, it helps uncover for them the variety of companies, industries and occupations in our community, and it gives them something productive to do over the summer. Contact COWIC’s Employment Relations Team Leader, Jo Youngs (614-583-1333 or jayoungs@cowic.org), for more information.

Lonnie Miles, CEO of Miles-McClellan Construction Co., Inc., serves on the advisory board for East High School’s Academy of Engineering, which prepares high school students to pursue college admission in STEM fields. This nationally accredited program is one of the first chosen to participate in the program. They are currently seeking summer internships for their junior students. Contact Monique Jacquet (614-365-6096 or mjacquet3317@columbus.k12.oh.us) for information.

The Columbus Partnership established a successful relationship with OSU’s Fisher College of Business to provide a two-year work experience for an MBA student. Through this internship arrangement, the Partnership leverages the knowledge, skills and fresh perspectives of our region’s abundant student population to successfully continue its economic development strategy. The internship also offers these bright young people the opportunity to network and build their careers in Columbus. Getting started with internships is easy. Register as an employer on www.ColumbusInternships.com to post your positions for free.

For the second year in a row, Nationwide Insurance will host 10 high school interns from Columbus City Schools. This partnership between a corporation and a school system is another great example of how Nationwide grows talent for the future and provides support to students who might otherwise not have an opportunity to participate in a corporate internship program.

OhioHealth offers an Explorer program, through the Simon Kenton Council, Boy Scouts of America, that provides work-site based career discovery opportunities for high-school aged youth. Local community organizations and businesses, like OhioHealth, can initiate an Explorer post by matching their people and program resources to the career interests of young people in the community. The result is a program of activities that helps youth pursue their special interests, grow, and develop. To develop an Explorer Post for your business, contact Ken.Ruppel@skcbsa.org or 614-310-1567

Because of their concern for developing their future workforce with proficiency in the STEM fields (science, technology, engineering and mathematics), Battelle and Sterling Commerce actively participate in the St. Stephens Community House program: STEM L.A., that partners with the Linden-McKinley High School’s STEM Academy. The summer STEM L.A. program matches business professionals with students in four-hour mentoring sessions offered every Friday for six weeks during the summer. Mentors help students work on projects that advance their academics and prepare them for internships.

In addition to a number of Chamber staff, many board member companies participate in Project Mentor, administered by Big Brothers Big Sisters of Central Ohio. Project Mentor's mission is to empower Columbus City School students for success through strong mentoring relationships. They are currently recruiting thousands of mentors from our community to start next school year, one for each student who could benefit from having an adult role model in their life. Become a mentor and in just one hour a week you can change a child's life (and probably your own) while transforming our community.

There are so many opportunities for businesses to connect with young people. I encourage you to participate in whatever manner is best for your business. Contact Andrea Applegate (614-225-6900 or andrea_applegate@columbus.org) at the Columbus Chamber for more information about how to get connected to these different programs or to help you determine the most appropriate opportunity for your business.

Businesses can benefit from wage reimbursement for new employees

By Andrea Applegate, Director of Workforce Development

Central Ohio businesses with plans to hire over the next weeks and months may be eligible to receive a reimbursement for wages paid to newly-hired, previously unemployed individuals (i.e., “dislocated workers” – see call-out box) for hours spent in on-the-job training. On-the-job training helps long-term unemployed workers gain new skills to find employment; it increases productivity and reduces turnover of new hires; and, through cash reimbursements that offset costs for on-the-job training, it provides incentives to businesses to hire the long-term unemployed. 

Businesses are reluctant to hire.  As a result of the worst recession in decades, many job seekers find themselves among the long-term unemployed. These individuals, who are otherwise qualified and possess excellent employment histories, face a variety of challenges to finding new jobs.  They may be passed over for consideration because they lack specific skills and experiences required of an industry or occupation, or due to concerns that their skills have eroded. In an “employer’s market,” businesses can afford to be choosey. Right? 

Unfortunately, that choosiness may do more harm than good. According to Federal Reserve Chairman, Ben Bernanke, who spoke about the economy on a panel at The Ohio State University’s Fisher College of Business, job creation is key to economic recovery.  “Getting new jobs and getting unemployment down is of critical importance,” he said.

Funding through the federal Workforce Investment Act enables—even encourages—businesses to take a chance on potential employees by paying for on-the-job training (OJT) for those who are new to an industry or have been unemployed for an extended period. The skills gaps that these untested individuals possess can be readily addressed through OJT, and the costs employers incur for providing OJT will be offset through a reimbursement of wages paid. After all, employers often over-state their requirements. Indeed, many admit, “Give me a good person with a great work ethic, and I can train them to do the job.” 

OJT has the dual benefit of helping dislocated workers get into employment and encouraging businesses to resume hiring. Because the attention paid in the probationary period ensures a good fit, OJT increases productivity and reduces turnover of new hires. In addition, because each employer defines the plan for on-the-job training, businesses can ensure that new employees are trained to their exact specifications. 

As noted in a recent article in the Columbus Dispatch:

"The economy is growing again after the worst recession in decades, but not quickly enough to deal with what Federal Reserve Chairman Ben Bernanke said is the top problem -- a lack of jobs...Bernanke said an economy that lost 8.5 million jobs during the recession has added back only about 1 million so far."

Increase hiring by taking advantage of OJT.  OJT funding is immediately available through a variety of programs, each with its own set of criteria. The level of reimbursement varies by program and is dependent on things like the size of the business, the wages paid, and the duration of the training plan.  For one OJT program, the typical reimbursement is 50 percent of wages paid, capped at $8,000; for another, it can be as much as 90 percent, capped at $12,500. OJT is only applicable to individuals who qualify as dislocated workers. Funding is not retroactive. To take advantage of OJT, employers must make arrangements for it in advance of making hiring decisions. The Columbus Chamber’s workforce department can help individual businesses determine which OJT program is a best fit.

On-the-job Training.  OJT introduces new employees to the industry and helps them learn the skills necessary to become proficient in the position (though OJT should not be confused with on-boarding).  OJT is defined by the employer to address the specific needs of the individual new hire and is conducted by the employer, likely the new employee’s supervisor. OJT is short in duration, typically no longer than six months, but at least 160 hours, and results in specific measurable outcomes for the new employee. OJT may be particularly relevant for someone transitioning from one business sector or occupation to another (i.e., shifting from residential design to commercial design). 

Last Word.  OJT has a proven track record of helping unemployed workers gain new skills to find employment.  OJT is a great resource for employers to help create jobs and increase hiring.  Businesses should understand that OJT is not retroactive; therefore, employers must have an approved OJT plan in place for each candidate prior to that individual’s first day of work.  Employers who plan to hire soon should contact Andrea Applegate (andrea_applegate@columbus.org or 614.225.6900) in the Columbus Chamber's workforce department for assistance.



Is that conference REALLY worth it? Let's do the math...

Not too long ago, the “Columbus 2010 Young Professionals Career & Professional Development Conference” took place at the Arena Grand Movie Theater. Did you attend? Did you send any of your younger associates? If not, you missed an outstanding event with panel presentations ranging from Personal Financial Planning to Mentoring for Success and Personal Branding & Professional Networking.

The half-day event was capped by a keynote speech from Simon T. Bailey who inspired the audience to take charge of and transform their lives—both personally and professionally—from the inside out. Everyone in attendance received a free copy of Bailey’s, “Release Your Brilliance.” All of this for the low, low admission price of $50. 

Fifty dollars.

Even with a half-day away from the office to attend the noon to 7 p.m. event, it probably cost you more not to send your employees.  Let’s do the math:

$  49.95 = Admission
$   7.00 = Parking
$  83.20 = Wages paid for 4 hours off work * $20.80/hr [$33,280 annual salary + 30 percent benefits]
$400.00 = Lost productivity [4 hours * $100/billable hour]
$540.15

Granted, $540 seems like a lot of money--especially in this economy when budgets are tight and expenses are reserved for only the most essential outlays.  And this event was not specific techincal training. Rather, the information presented focused on personal improvement. On closer inspection, though, spending $500 to send your junior talent to a conference like this is actually money well spent.  Dare I say essential? 

Janine Moon, of CompassPoint Coaching, counsels businesses to pay attention to employee engagement. Employees who are better engaged at work, who are more connected to the business, have increased capacity to better serve the business. Moon cites recent research conducted by the Gallup organization which shows that "engaged employees are more productive employees."

The research also proves that engaged employees are more profitable, more customer-focused, safer, and more likely to withstand temptations to leave. Many have long suspected the connection between an employee's level of engagement and the level and quality of his or her performance. Our research has laid the matter to rest."

There's a whole consulting industry built up around answering the question of how to ensure employees are engaged. Suffice it to say, enhanced self-awarenss combined with a solid understanding of the importance of their individual contribution to the business helps foster employees who are truly committed to the organization. 

Committed employees, however, are looking for assurances of advancement within the organization.  According to “The Guide to Managing and Developing Young Professionals," which is based on a nationwide, multi-generational survey of 2,300+ respondents and which provides advice to employers regarding solutions to attracting and retaining Gen Y, these types of development opportunities are highly valued by young talent.  Indeed, more than any other generation surveyed, 53 percent of Gen Y respondents said that “opportunities for career advancement” were the most important element of a position.  Further:

“Advancement Opportunities” were more important to them than the challenge of the position, job security, opportunities for learning, fun, ability to work with effective teams or access to job rotation opportunities.

If young professionals feel they are not getting adequate career development and leadership opportunities from their current employers, they are likely to look for it someplace else. From some other employer.  Perhaps even a competitor.

Turnover costs employers much more than they typically realize.

Even if employers do not believe it is their responsibility to develop their employees, to engage them and to offer them opportunities to take on meatier roles, greater responsibility and more leadership within the organization, it makes good business sense to do so simply because...well, it’s really, really expensive to replace an employee. 

While the actual losses will differ across work category (i.e., exempt vs. nonexempt), occupations, industries and types and sizes of employers, according to Keep Employees Inc., the estimated turnover costs associated with nonexempt employees (hourly) are .25 to .5 times the annual wages and benefits paid, and for exempt employees (salary), it is even higher: one to 1.5 times the annual salary.  (Of course, for senior managers and executives, it can cost five times the salary to replace someone!)  Turnover costs include:

• Separation processing costs
• Replacement hiring costs
• Training new hire costs
• Lost productivity and lost business cost

Returning to our example of the junior employee who earns $16 per hour (or, including benefits, $43,264 annually), let’s assume he is nonexempt.  Even at the most conservative calculation (.25), it will cost nearly $11,000 in tangible costs alone to replace him if (and when) he turns in his resignation ($43,264 * .25 = $10,816).

$11,000 vs. $540.15.

According to Richard Needles, president and founder of Productive People Strategies, LLC, who consults on coaching for performance with individuals and companies, “When employers invest just a few dollars in professional development, they can save thousands of real dollars in the long run AND keep employees motivated and productive.”

Spending $50 to send an employee to a conference seems well worth it compared to the alternative.

 

Small Businesses Can Benefit from Incentives & Tax Credits

Financial incentives and tax credits are available--under certain circumstances--to small businesses to ease their burden and help them grow. 

In addition to the two programs outlined below, the Columbus Chamber seeks small businesses (250 or fewer employees) who plan to hire new employees in October and November.  Under certain circumstances, we can connect you to a funding source to reimburse you for on-the-job training.  Contact the Chamber's director of workforce development, Andrea Applegate, for more information.

Federal Hiring Incentives to Restore Employment (HIRE) Act

The following information pertains to the federal Hiring Incentives to Restore Employment (HIRE) Act. (NOTE: The HIRE Act is unrelated Ohio's Project HIRE program.) 

The HIRE Act creates a payroll tax credit for employers who hire workers who have been unemployed for at least 60 days and who are not replacement hires. For qualifying new employees hired after February 3, 2010 and before January 1, 2011, the employer can claim a credit equal to the employer’s share of Social Security taxes on wages paid in 2010. The bill also provides a credit of up to $1,000 for employers who retain such employees for at least 52 weeks.

The Internal Revenue Service (IRS) released new Form W-11 for certifying that employees are qualified employees for purposes of tax benefits under the HIRE Act (PL 111-147). 

Employers must collect affidavits from each new employee in order for the employee to count as a qualified employee for purposes of the payroll tax credit and the employee retention credit. However, the employer should not send the affidavits to the IRS, but should retain them in its records.

The IRS has also posted questions and answers for employers regarding both the payroll tax exemption for hiring unemployed workers and the credit for retaining new hires. On the payroll tax exemption, the FAQs cover employer eligibility, employee eligibility, and how to claim the exemption. 

Additional information regarding the HIRE Act, please contact the IRS.

Small Business Health Care Tax Credit

This new credit helps small businesses and small, tax-exempt organizations afford the cost of covering their employees.  It is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small businesses to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to employers who pay at least half the cost of single coverage for their employees. Additional information is available from the IRS at Small Business Health Care Tax Credit for Small Employers

Eligibility Rules

• Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
• Business size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• Average annual wage. A qualifying employer must pay average annual wages below $50,000.
• Both taxable (for profit) and tax-exempt firms qualify.

Amount of Credit

• Maximum Amount. The credit is worth up to 35 percent of premium costs paid by the small business in 2010. On January 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
• Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

Three Simple Steps for Employers to Qualify

• To determine if your small business or tax exempt organization qualifies for the Small Business Health Care Tax Credit, follow this link to the IRS fact sheet.

Project Mentor, or "Aren't You Going to Say Magenta?"

By Andrea Applegate

James and I got off to a rocky start. If you had asked any of my Chamber colleagues to rank the mentor matches at the time, James and I would likely have landed at the very bottom, the Least Likely to Succeed.  Now that we have completed our third school year together, there’s no question that we have a fantastic relationship.

It was the beginning of the 2007/2008 school year when a handful of Chamber staff signed up for Project Mentor, a program that matches volunteers—primarily from the business community—with 8th graders in Columbus City Schools for long-term mentoring relationships. Ideally, mentors will continue through to see these students graduate from high school in 2012.  It seems like a big commitment, but it’s actually very easy.  Students and mentors meet as a group once a week at the school during the students’ lunch period.  (The Chamber was assigned to a middle school less than a mile from our office.) 

To keep each other on track, my colleagues and I block off that time on our calendars, and we carpool over to the school. The school-based coordinator facilitates planned activities. Essentially, all we need to do is show up. 

Who knew that a simple action—just showing up—could have such positive impact? Upon receiving my mentor match assignment, I learned James was autistic. I had no idea what that meant for James—or for me. I anticipated that he might have trouble interacting with his environment and maybe it’s difficult for him to establish relationships with people. I decided to take it slow, be patient, and take my lead from James:  supporting him in things he wanted to do, not pressuring him into things he didn’t want to do. And I counseled myself not take it personally…whatever it was.

The first day, James refused to come to the library where the group was meeting. The second week, when he again refused to come to the library, they suggested I go to the classroom to sit with him and his teacher. That worked well, except he didn’t acknowledge my presence. By the third week, James came to the library, but would not engage in conversation with me. He’d speak to everyone around me, but not to me. I bagged the activities the school-based coordinator had planned for us. Instead, James and I played games: Connect Four, Apples to Apples, UNO. Though I gradually learned some things about him (he’s the youngest of three, his parents are married, and he loves to play video games), I did most of the talking.  He alternated between ignoring me and rolling his eyes. 

One day, I pulled a dictionary off the shelf, randomly paging through it, stopping on words that caught my interest.  “You know, James, I believe that magenta is the greatest word in the English language.”  I waited a moment to see if he would take the bait. Nothing. “Magenta is one of those words that makes you happy just to say it: magenta. Try it with me. Magenta. Magenta, magenta, magenta.” He winced and shook his head slightly, as if to say this observation was so stupid, it barely warranted acknowledgment. 

I am nothing if not persistent. Every week for the rest of the school year, I managed to toss magenta into our mostly one-sided conversations. One day, however, I forgot. But James was paying attention. When he stood to go back to his classroom, he turned to me and asked, “Aren’t you going to say magenta?”

James is in high school now. He just completed the 10th grade and successfully passed all five parts of the Ohio Graduation Test the first time he sat for the test. James wants to be a computer programmer creating video games, and he plans to attend DeVry University after high school. I have every confidence he will achieve that goal.

I don’t tutor James. That’s not the purpose of our time together. We don’t talk about anything all that serious, nor do I make it a point to give him advice or guidance. In fact, most of the time, we simply play cards. But, we have a great relationship.

Early on, when the bell rang, James would call over his shoulder as he leaped out of his chair and headed back to class, “Goodbye forever.” But, it wasn’t forever.  In fact, I came back the next week.  And the next.  And the next after that. 

I can’t recall a day that James has missed, either. Indeed, this year, even though his birthday landed the same day as Project Mentor, he came to school that day—an impressive feat, considering his mother lets him stay home from school on his birthday. Our commitment to each other is reciprocal.

I encourage you to participate in Project Mentor. If you are a supervisor or a business owner, please allow your staff to get involved by giving them release time. Many more mentors are needed. 

It's easy.  It costs nothing but your time.  And you get so much out of it.  As do our kids, our schools, and our community.