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Category: Business Education

Workplace Culture is Your Biggest Asset

Posted on by Jeannine Lozier

SUMMARY

  • CEOs agree that workplace culture is their most powerful asset, yet it ranks low on their list of priorities.
  • According to research, a great culture affects reputation, hiring and employee retention.
  • Mark Miller suggests leaders start by making space for hopes and dreams, amplifying vision and values often, and adapting the aspiration as needed.
  • Systems like polls and surveys can help monitor the health of an organization’s culture.

586 words ~ 3 Minute Read

Leaders know that culture matters. But with so many problems to solve and goals to reach, it’s hard to make workplace culture a priority. In bestselling author Mark Miller’s recent book Culture Rules: The Leader’s Guide to Creating the Ultimate Competitive Advantage, he surveyed more than 6000 individuals from 10 countries. Although 67% of global leaders agreed that culture is their most powerful tool, workplace culture failed to show up in a top 10 list of priorities. 

Unfortunately, this disconnect has far reaching consequences. Culture affects everything from reputation to hiring to employee retention. In a Glassdoor survey, 56% of employees said workplace culture was even more important than salary. Elevating your company culture doesn’t have to be daunting, according to Miller. His book outlines a simple strategic framework to create a thriving high-performance culture. Below are three rules to help you define the culture you want, integrate your message into the workplace, and find success by listening, learning, and adjusting. 

Get Clear

Humans want to feel connected to something bigger than themselves. That’s why Miller’s first rule is called Aspire. Most leaders have already identified their organization’s aspirations—the difference here is communication. Miller advises leaders to translate their vision, mission, purpose, and core beliefs for employees. When aspirations remain unsaid, confusion reigns instead of culture. Maintaining values and articulating your vision not only outlines boundaries and expectations, it also creates a sense of shared purpose.

Repeat Often 

It’s not enough to announce your organization’s expectations. Instead, Miller says you have to Amplify them, which is the second rule in his strategic framework. Leaders can amplify their vision, mission, and core values in many ways, and Miller suggests using a variety of methods. The world is loud and distracting, and to build a better culture, employees need reminders. 

One technique Miller recommends involves looking at the last 30 days of your calendar and finding activities you personally engaged in that match your aspiration. Then, the goal is to strategize how you can use these same activities in the future to amplify your aspiration. This process can be far reaching, affecting everything from hiring descriptions to onboarding of new employees to recognizing team members who embody the mission and core values of your organization. 

Listen & Learn

Enhancing workplace culture is not a one and done proposition. The last rule Miller wants leaders to understand is Adapt. In other words, clarifying your vision and values is important, but how do they actually land with the people that work for you? Miller advises leaders to prioritize listening so that you understand if your aspiration is on target or if it needs an adjustment. Systems that help identify problems that affect workplace satisfaction are important ways leaders can monitor the health of the culture they’ve worked so hard to build. Listening sessions and surveys are great ways to take the pulse of your organization. HR morning has cataloged 45 sample questions to help employers build their own customized survey to measure workplace engagement and satisfaction. 

The Bottom Line 

Taking the time to reflect on the three rules of Miller’s framework—Aspire, Amplify, and Adapt—will help you develop and maintain a healthy workplace culture. The long-term benefits for organizations are huge when people are more connected to their idea or mission because that will make them more invested in it. It’s up to leaders to carve out space for the hopes and dreams of their team members, so they can create a culture that allows all members of their organization to thrive.

The Best Business Tax Strategy? Being Tax-Free, of Course. Here’s How.

Posted on by Chamber of Business & Industry Centre County

In 2006, second generation business owner Ken Baker needed to create some liquidity to address some financial obligations. His company, NewAge Industries in Southampton, PA was a small but successful manufacturer of plastic tubing and hose. The company was started from scratch by his father, who decided to retire after many years at the company.

Ken looked into taking on a loan, but was not enamored with the additional debt. He then learned about an “ESOP” an Employee Stock Ownership Plan. After much research and deliberation, Ken sold 30% of the company to his employees. Because an ESOP is part of an ERISA sanctioned trust, with employee shares held within that trust, the profits of Ken’s company were now 30% tax free. That’s right, TAX FREE, both Federal and State of PA. And in addition, the employees pay nothing. Not a penny.

 Immediately after converting to employee ownership, Ken’s company began to grow. The employees now had a real stake in the organization’s profits. Employee owned companies are, on average, as much as 8-12% more productive, year-over-year, than traditional companies, according to the National Center for Employee Ownership. Over the next 12 years, the company share price grew over 1,100%, with Ken still owning the vast majority of the profits. In 2019, Ken sold the balance of the company to the employees at a dramatically higher share price, reaped tremendously greater rewards than he would have, and NewAge is now a 100% tax free organization. Ken remains as CEO, managing all day-to-day operations, and even owns shares as an employee in the ESOP. The tax benefits have created additional cash and contributed to the growth of the company.

Here is how it all works.

Employee Ownership rewards owners, preserves legacy, creates real financial futures for workers, keeps businesses here in Pennsylvania and bolsters the economy. And yet very few know about ESOPs.

ESOPs are not a trick or a loop-hole device. They are a US Department of Labor program, established in 1974 by Senator Russell Long and economist Lewis Kelso. Generally designed for businesses with 20 or more employees, the goal was to create a deferred tax program that would allow business growth and address the ever concerning problem of retirement for workers. When employees leave the business, via retirement or otherwise, they can cash in their shares and pay ordinary income tax, just like a 401(k). The difference is that employees pay nothing for this benefit.

 The Exit Planning Institute estimates that, due to the aging of the Baby Boomers, as many as 4 million companies, large and small, will transact within a 10-year period. It is further expected that up to 30% of those businesses will simply disappear. These facts make succession planning a critical business issue. So what is your strategy for succession? For growing the business? For caring for your family? Employee Ownership is not only an exit/succession planning alternative but is also a business growth strategy. 

But what if your business does not have 20 employees? What if you are a Main Street or Commercial Corridor business? A café, hardware store, retail, or service organization? There’s a relatively new program called an Employee Ownership Trust that is designed specifically for smaller organizations. Just like an ESOP, a business owner can sell some or all of the shares to the employees for an agreed upon amount. The shares of the business are held in a Perpetual Trust, and the profits of the business belong to the employees in a way designed by the selling owner and the employees.

 The owner(s) reap value from their years of work and the employees now profit from their daily efforts. Although relatively new in the US, EOTs have been common in the UK for generations. The large UK Department Store, John Lewis, has been employee owned for over 100 years! You can read about them here.

The Pennsylvania Center for Employee Ownership is a 501(c)(3) nonprofit that exists for one reason, to raise awareness about a remarkable program that can benefit business and business owners. We sell nothing and charge nothing for our work. We do not provide accounting or professional services. We are a volunteer collective of CEOs with experience in various forms of employee ownership; professionals in the industry (CPA’s, Attorneys, Wealth Managers, etc.); and Foundations and Universities (Rutgers, University of California San Diego, University of Pittsburgh, Chatham University). We are dedicated to simply helping to raise awareness about an important program.

If you would like to learn more about ESOPs and employee ownership, join us for the Chamber’s next Coffee Conversations on Thursday, September 7, from 8:30 – 10:00 am at the Chamber office, 131 S. Fraser Street, Suite 1, State College, PA 16801.

3 Qualities Successful Business Owners Share

Posted on by Jeannine Lozier

SUMMARY

  • Good leaders have the ability to share a clear, compelling vision that attracts top talent and serves a greater purpose.
  • Great leaders are capable of adapting to change and leveraging diversity while creating an environment of psychological safety.
  • Business owners who build authentic relationships with their peers, team members, customers, and partners make better leaders
  • Developing skills related to personal and professional growth can help small business owners innovate around challenges and inspire others effectively

716 Words ~ 4 Minute Read

What’s the difference between a good leader and a great one? When it comes to entrepreneurship, successful small business owners have certain qualities that serve them and their business. The reality is most entrepreneurs aren’t born with these characteristics but acquire them over time. The ability to communicate a compelling vision, adapt to change, and build relationships are three qualities that successful small business owners share. This article outlines the importance of each quality and how you can develop these traits for yourself. 

Clear Vision 

A compelling vision is like a magnet that attracts the right people. In an age where hiring and retaining top talent matters more than ever, the ability to share your vision is a difference maker. Humans naturally want to feel inspired and to connect to something bigger than themselves. Unfortunately, many employees have no sense of their company’s vision. They simply show up, do their work, and go home. Successful business owners have a vision that excites and inspires their employees. 

What makes a vision compelling? According to Building Champions, an Oregon executive coaching firm, casting a clear vision requires asking yourself the three Bs: 

  1. Belong. What do you want your team members to belong to? Your answers are tied to your convictions and sense of purpose. 
  2. Become. What’s your ideal version of your company? Your vision asks you to see the future and imagine the story of your ideal brand, business systems, partnerships, employees, and reputation. 
  3. Build. What do you need to work on? Rather than short-term, your business ambitions should sync up with the story of who you want to become. 

Building Champions offers a free Vision Tool for leaders ready to do the work of vision casting. 

Adaptability 

One thing business owners know is that nothing stays the same. The ability to pivot and innovate is a hallmark of businesses that survived the pandemic and a common denominator for the ones that thrived. 

Adaptability isn’t a trait that comes naturally to everyone. Yet, as a leader it’s essential. Monica Thakrar, President of MTI, a leadership and mindfulness training, coaching and consulting firm based in Washington DC, believes adaptive leaders know how to do these things: 

  • Leverage diversity to remain flexible and open to different perspectives
  • Continuously learn new ways of thinking inside and outside of their specific industry
  • Create an environment of psychological safety, where others feel comfortable sharing their views and opinions without judgment
  • Practice emotional agility with the help of supportive relationships, self-awareness, and optimistic mindsets.

If you don’t feel like an adaptable leader today, Thakar recommends starting by developing self-awareness around how you deal with setbacks. Are you able to learn from them or do they create unhelpful judgment or blame? She also encourages leaders to build relationships with peers who can provide support when things get tough. Thakar reminds business owners that the time to build your adaptability muscles is today — so you’re ready when the next challenge arrives.

Builds Relationships

Successful entrepreneurs are good at building relationships. And that’s different from enjoying small talk, as evidenced by how many successful entrepreneurs describe themselves as introverts. Leaders who cultivate relationships with industry partners, employees, and customers know a simple truth: you can’t do business alone. Research has even shown that investing in relationships at work will make you happier. 

Sam Kaufman, a business coach and Forbes’ contributor, recommends getting to know your team members on a personal level. According to Kaufman, one-on-one meetings are crucial for maintaining a positive, collaborative work environment. These meetings should focus on personal goals, family, and other topics important to the employee. Additionally, Kaufman coaches leaders to allocate a few minutes at the start of team meetings for personal updates to emphasize the value of life outside of work. 

When it comes to external relationships, Kaufman says that sharing your life with your customers promotes closeness. Use your current systems like blog, email, or social media to share your business story, updates on projects, and profiles of employees. 

The Takeaway

There’s no one-size-fits-all approach to becoming a successful entrepreneur. Being a good leader requires that you take time to hone skills specific to your personal and professional growth. With persistence and practice, anyone can become an excellent leader capable of innovating around challenges and inspiring others along the way.

 

Are ADUs an affordable housing solution 

Posted on by Jeannine Lozier

SUMMARY

Accessory dwelling units (ADUs) are being considered as a compact and affordable solution to address the housing scarcity in urban areas, with their potential to utilize some of the 75% of residential land reserved for single-family homes.
Despite some opposition due to concerns about parking, infrastructure, and property values, ADUs are seen as an innovation that benefits individuals, businesses, and communities especially given the current lack of affordable housing for first-time home buyers and workers.

While awareness about ADUs remains low, progress has been made through programs and incentives encouraging ADU construction, such as Los Angeles’ Accessory Dwelling Unit Standard Plan Program and Santa Cruz’s Forgivable ADU Loan Program.

881 Words ~ 4.5 Minute Read

Across North America, people are asking their city and town councils to take action on property development fees that drive high new home prices, which in turn drive up the market for existing single family homes. As urban areas grapple with housing scarcity, an innovative approach is steadily gaining ground. With 75% of residential land in the United States reserved for single-family homes, many housing experts see accessory dwelling units, or ADUs, as a compact and affordable solution to the widespread residential crunch.

While the conversation around ADUs may seem new, ADUs have been around a long time. Granny flats, in-law suites, garage apartments, and backyard cottages are some of the more familiar names for ADUs.

ADUs come in all shapes and sizes, but typically have less square footage than the main residence. They can be attached or unattached, brand new, or a remodeled section of the main house. ADUs come with all the amenities required for private and independent living, including a separate entrance, kitchen, bathroom, bedrooms, as well as other living spaces. Many ADUs are one-level, which makes them a good fit for seniors. In some places, you’ll see the term DADU, alongside ADU. DADU is the more precise term for a ‘detached’ ADU.

The ADU Conversation

Not everyone supports ADUs as a housing solution. Opponents have raised questions about the demand for parking, a lack of infrastructure, and concerns about decreased property values. Some worry that easing zoning restrictions could make way for institutional investors to build multifamily housing in single family neighborhoods.

Still, in many regions around the US and Canada, there’s simply not enough affordable housing for first-time home buyers in their 30s and 40s. Rents are also at a new all-time national high, with the average renter spending 30% of their income on housing. In places like New York City, renters pay a whopping 68% of their income toward where they live. The shortage isn’t limited to millennials hoping to buy their first home. A lack of affordable housing also affects businesses dealing with hiring and workforce issues because workers simply can’t afford to live near their jobs. That’s why many cities see ADUs as valuable innovation that benefits individuals, businesses, and communities.

Good for People and Places

While ADUs bring many benefits to residents and communities, a lack of awareness is perhaps the biggest issue keeping ADUs from becoming an affordable housing solution. In a recent Freddie Mac consumer survey, they found that 71% of respondents were unfamiliar with ADUs. However, after learning the definition of an ADU, 32% said they were interested in adding an ADU to their property in the future.

Organizations that support seniors are also helping get the word out about the potential of ADUs. AARP champions the construction of more ADUs because they provide housing and rental income for people of all ages. As older adults retire, the addition of an ADU can provide a supplemental income stream. Alternatively, seniors who move into ADUs are often renting from family members, which helps provide stabilized rent and a predictable cost of living.

Jeff Kruth and Murali Paranandi, professors of architecture at Miami University and contributors to Fortune, note that ADUs bring more residents into a given area. The affordable rents and lower construction costs of ADUs provide low-barrier opportunities for intergenerational living. Kruth and Parandi believe that ADUs enhance rather than hurt communities: “As neighborhood populations grow, they become more attractive to small businesses. Coffee shops, restaurants, and grocery stores are more likely to flourish with more residents in a given area.”

Partnerships to Promote ADU Living

While ADUs help communities, businesses, and homeowners, local governments can make it easier or harder to build. In some places, homeowners may need as many as six permits for ADU construction. Some cities are working hard to get ahead of the hassle. Los Angeles has launched the Accessory Dwelling Unit Standard Plan Program, offering homeowners and developers 20 pre-approved ADU designs. To offset construction costs, a $40,000 subsidy is available from the state of California. Additionally, CityLAB, a UCLA research center, has created a guidebook detailing a step-by-step process for building an ADU.

Los Angeles also has a program to incentivize homeowners to build ADUs specifically for seniors. The LA ADU Accelerator Program works by pairing homeowners with older residents who need affordable housing. In exchange, the program finds qualified tenants, offers tenant case management, and landlords receive stable rental income. In Santa Cruz, the city will loan homeowners up to $40,000 to add an ADU along with loan deferment. If the family rents to a low-income household for 20 years, the entire loan will be forgiven through their Forgivable ADU Loan Program.

California is not the only state that offers financial incentives and resources for ADU construction. Cities from Boston to Seattle are finding ways to encourage residents to be part of the affordable housing solution.

The Bottom Line

In the face of rising home prices and a shortage of affordable housing options, ADUs are gaining attention as a solution. Despite their potential benefits, a lack of awareness and complicated permitting processes can hinder ADU construction. Overall, ADUs provide an innovative approach to addressing the affordable housing crisis, benefiting individuals, businesses, and communities alike.

Chamber Presents Final Slate of Voice of Business Luncheons for the Year

Posted on by Jeannine Lozier

The Chamber of Business & Industry of Centre County is pleased to announce the concluding events in this year’s Voice of Business luncheons. These luncheons provide an opportunity to focus on important issues impacting our business community, hear from business and community leaders and ask questions directly to speakers. 

Healthcare Forum
Friday, September 15
11:30 a.m. – 1:15 p.m.

Dive into a candid conversation with top executives from Geisinger, Mount Nittany Health, and Penn Highlands Healthcare. They’ll offer insights on contemporary developments in their institutions and the broader implications for our community.

State of the County
Thursday, October 5
11:30 a.m. – 1:15 p.m.

Stay informed at this anticipated annual event. Centre County commissioners will provide valuable updates on county services, initiatives, and projects.

Building Resilience – Workforce Strategies For Post-Pandemic World
Friday, November 10
11:30 a.m. – 1:15 p.m.

Join us for a deep dive into top industry leaders’ strategies to craft resilient workforces in our ever-evolving work climate, emphasizing Pennsylvania’s workforce trajectory.

Take advantage of the chance to network, establish valuable contacts, and actively engage with leaders and peers at the Voice of Business luncheons. Be part of the voice that drives our community forward. Join us, collaborate, and make an impact.

Register Now to Attend

Interested in greater visibility? Explore sponsorship options by emailing info@cbicc.org.