Crain's Cleveland Business

VOL. 38, NO. 32

AUGUST 7 - 13, 2017

CLEVELAND BUSINESS

ERC AND CRAIN’S WORKPLACE PRACTICES SURVEY

Keys to hiring and keeping good people PAGES 6-8

The 2017 Archer Awards PAGES 13-24

Illustration for Crain’s by Robert Neubecker

Entire contents © 2017 by Crain Communications Inc.

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CRAIN’S CLEVELAND BUSINESS

ICP is shifting to Solon and ‘crushing it’ “We buy, we plan, we lease and we construct from here, then we hand it off to Richfield for (property) management.”

By STAN BULLARD sbullard@crain.com @CrainRltywriter

A waist-high table with no chairs is at the center of the lobby of the Cleveland office of Industrial Commercial Properties. It resembles standing desks that office-anchored workers use for a change of pace.

But there's little standing at the central office of one of Northeast Ohio’s largest real estate concerns. Chris Semarjian, ICP’s owner, said staffers hold quick meetings around designs and maps spread out on the table and then “run back to our desks.”

The hustle reflects the rapid pace of transactions from property purchases to leases emanating from the juggernaut that has developed over the past 20 years from multiple deals by Semarjian and serial business partner Stu Lichter, the owner of California-based Industrial Realty Group.

Today, that portfolio incorporates 37 million square feet of commercial property, mostly industrial, and more than 50 buildings in four states.

The concern has 280 tenants in all.

The duo most recently made headlines as the potential seller of the former Randall Park Mall property in North Randall to an Atlanta-based developer who is competing for an

— Chris Semarjian, owner of Industrial Commercial Properties

An affiliate of Industrial Commercial Properties, owned by Chris Semarjian, purchased the former Arrow Electronics Inc. building in Solon. ICP will move its 20 employees there. (Billy Delfs for Crain’s)

Amazon fulfillment center. If the Seattle online retailer chooses the site, it could produce an 880,000-squarefoot, $177 million warehouse and bring 1,200 new jobs to the site.

Semarjian declined to comment on the Amazon deal, but he has lots

of other developments to discuss, from recent acquisitions to retenanting the former 1.3-million-squarefoot American Greetings Corp. headquarters complex in Brooklyn.

An affiliate of ICP on June 30 spent almost $5 million to buy the Arrow

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Electronics Inc. building, 6675 Parkland Blvd. in Solon. The Centennial, Colo., components provider to commercial and industrial users leased back about 25% of the one-story building, and that leaves ICP with more than 60,000 square feet to lease.

ICP plans to move its staff of 20 to the building and subdivide the balance for office tenants as small as 7,000 square feet.

“It’s open plan office space that was converted from warehouse space to world-class standards that I really like,” Semarjian said of the deal, which included the work stations in the space that may be used by the next tenants.

The ICP staff bound for Solon includes leasing and administration personnel that services Semarjian and Lichter’s properties in the region as well as overseeing CR1, their jointly owned construction company that retrofits buildings for new tenants.

Another company Semarjian and Lichter share ownership of, IRG Realty Advisors LLC of Richfield, manages the portfolio.

“We buy, we plan, we lease and we construct from here, then we hand it off to Richfield for (property) management,” Semarjian said.

ICP did not ask for city incentives to move to Solon, he said, as the company prefers that its customers get them.

Peggy Weil Dorfman, Solon economic development manager, said the suburb is pleased “to attract an investment and office from a well-regarded firm” and believes efforts to retenant the empty space will pick up.

Terry Coyne, a Newmark Knight Frank vice chairman, and Kristy Hull, an NKF managing director, sold the Arrow property to the ICP affiliate.

Coyne said Semarjian outbid multiple parties for the property. “(Semarjian’s) crushing it,” Coyne said of the purchase and Semarjian and Lichter’s current activity level.

“They’re in the league of Weston (of Warrensville Heights) among companies that buy existing buildings and convert them to multitenant use. They have a system for redevelopment.”

For his part, Semarjian said it’s more than doing a deal.

“We don’t just lease space to companies and say, ‘Here it is.’ We have two process engineers on staff,” he said. “We help them find what layout is best for their company.” The cost for such service is built into the rents. It’s different from typical practice, where

companies hire their own consultants after committing to a location.

Semarjian said ICP toyed with moving its staff to part of the MidTown Cleveland building it owns at 3711 Chester Ave. Dealer Tire exited the space for its new nearby headquarters.

“I didn’t want to see them go,” Semarjian said. “But I’m happy for them.” ICP’s own office is on the move because the space it occupies on Hinckley Industrial Parkway is being leased to a tenant Semarjian would not identify.

Semarjian and Lichter also are beginning to take steps to complete the conversion of the former American Greetings Corp. headquarters in Brooklyn as a multitenant business park. The duo bought it in 2014; the American Greetings space became available last year when it moved to its newly built Westlake headquarters and studios. American Greetings continues to have a presence in the property in about 200,000 square feet of space it leased back from the new owners.

This year, three large lobbies will be added to the sprawling 1.6-million-square-foot building in Brooklyn. Each of the contemporary additions will serve multiple tenants and reflect its multitenant nature. The property now is known as One American Road, a name taken from the street it sits on.

Progress and setbacks are gripping the complex.

Inogen, a California provider of respiratory equipment, recently signed a lease for 22,000 square feet in the complex for a sales office and warehouse, and HKM, the Cleveland-based direct marketing and printing firm, leased 75,000 square feet for a warehouse.

Semarjian said letters of intent with three other companies to take space are out for signatures.

However, the complex lost some big tenants, including operations of the former Mr. Gasket, an automotive supplier that moved, and the regional warehouse of the Indianapolis-based HHGregg appliance retailer, which shut down in April.

Even with more space to fill, Semarjian said the 150-acre complex has four parcels available for businesses to build upon, the largest of which is 25 acres. Semarjian said he is confident the 300 people working on the site today will grow to more than 2,000 within three years.

For now, Andis Udris, Brooklyn’s economic development director, called the American Greetings property “a big hole” in the city’s economic development plan. He added that the available land is important because Brooklyn has little empty land left for commercial construction.

Even with so much on their plates, Semarjian and Lichter continue to have appetites for more.

Semarjian said they are sizing up another half-dozen property purchases in the region.

Semarjian won’t identify them, but did say with clear relish, the buzz from the next deal clearly apparent, one is “really cool, different from anything we’ve done before.”

CRAIN’S CLEVELAND BUSINESS

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PA G E 3

RNC was financial success, excellent PR

By JAY MILLER jmiller@crain.com @millerjh

So, the hosting of the Republican National Convention was a success. Two studies commissioned by the Cleveland 2016 Host Committee, the local entity created to put on the convention that ran from July 18-21 last year, came to pretty much that same conclusion in reports released last week.

The community got back more than double, maybe even triple, the roughly $60 million raised by the committee to get the city ready to host the more than 44,000 Republicans, media, even protesters who showed up for the four-day event that took two years to plan and prepare for.

One of the studies, by Tourism Economics, a British tourism marketing and forecasting firm, estimated the overall economic impact at $188.4 million. The other study, produced by the Center for Economic Development at Cleveland State University, put the overall economic impact at $142.2 million.

The host committee had said long before the convention that total spending could top $200 million. The Democrats, whose Philadelphia convention was the week following the Cleveland event, appear to have outspent the Republicans. The Philadelphia Convention and Visitors Bureau estimated the impact of that convention on the five-county metro Philadelphia area at $230.9 million, less than its pre-convention predictions, which ranged from $250 million to $350 million.

Hotels in Northeast Ohio were the big beneficiaries of convention week.

The Tourism Economics study estimated that visitors spent $24.2 million on lodging. Another $18.2 million was spent on construction involved in putting together media

operations and the staging of events, while $7.8 million was spent on food and beverages. The amount spent on things like legal fees, equipment rental, printing and other business services, and the accounting time needed to keep track of it all were also included in the overall total But from the beginning, when Cleveland was chosen in July 2014 by the Republican National Committee to host their once-every-four-year event, that short-term return on investment was never the main reason for pursuing a political event. For David Gilbert, president and CEO of the host committee, it was always about, in a phrase he used often, “changing the narrative about Cleveland.”

“I really believe, from what we know now, it had every desired effect we were hoping for,” said Gilbert in an interview last Thursday, Aug. 3, at the offices of Destination Cleveland, the regional convention and visitors’ bureau that Gilbert has led since before the host committee was created. “In terms of the short-term week of economic boost, the studies show the results (comparable) with every other convention. And one thing we hadn’t thought about was how it brought the community together. It was apolitical, it was all about Cleveland.”

As for how changing the narrative will affect the region longer term, Gilbert isn’t ready to say.

“What desired effect we are hoping for long term, we don’t know, because there is a look-back period of three years to five years,” he said.

The Cleveland State study suggests the turnaround began even before the convention ended. As part of its work, CSU had a team of researchers canvassing during the convention surveying visitors, asking, among other things, what words came to mind when they thought about the city. Among the terms mentioned

(just months after the local basketball team won the NBA Finals), “Cavaliers,” “LeBron James” and “Midwest” topped the list, but the words “old” and “Rust Belt” weren’t far behind. By the end of the week, though, the tune had changed and the words “friendly,” “clean” and “safe” led the list.

One other measure of the longterm impact of successfully hosting the RNC is how it has boosted interest among the meeting planners who decide where trade associations and other organizations hold their conventions.

“It’s given us tremendous credibility in the industry that we can host a largescale event,” said Dave Johnson, director of public relations and communications for the Huntington Convention Center of Cleveland and Global Center for Health Innovation complex, which was home for the 15,000 media members and their organizations during convention week. “The validation has been very important for our sales team that is selling Cleveland as a convention destination.”

The timing of the announcement in July 2014 couldn’t have been better for the new convention center complex. Cleveland had not been able to vie for convention business until the new buildings opened in July 2013, replacing an old, uncompetitive center.

“We were just getting back into the convention business, and all of the sudden people were noticing us, where it would otherwise have taken five, six, seven years for people to notice that Cleveland was back in the convention business,” Johnson said.

“This way they saw it right away.”

Since the convention, the number of convention planners contacting Destination Cleveland asking if the city wanted to compete for their business has nearly doubled since July

2014, growing from 43 per month to, in 2017, 75 per month.

One factor that played into the successful impression left by the convention was the capital investment made in the lead-up to the event. The renovation of Public Square, which became the convention’s outdoor gathering place, was sped up to be completed in time for the RNC. In addition, 11 hotels in the region, including the 600-room Cleveland Hilton Downtown, the Drury Plaza Hotel Cleveland Downtown and Kimpton Schofield Hotel, were opened in 2016.

And the hotels did well, as most hotels in the seven-county region were filled to or near capacity. The Tourism Economics study found that hotels in the seven-county region averaged 88% occupancy, and the downtown Cleveland hotels 99% occupancy, during the core nights of the convention.

As important for the hotels’ bottom line, room rates skyrocketed, according to Tourism Economics. Average room rates in the seven-county region, which were $108 a night for the first week in July, more than doubled to $232 a night during convention week. Downtown, the average room rate peaked at $322 a night on Monday of convention week.

Many downtown restaurants also benefited.

“For us, it worked really, really well,” said Andy Hata, general manager of Urban Farmer, the restaurant in the Westin Cleveland Downtown hotel at East Sixth Street and St. Clair Avenue, in a telephone interview.

Hata said his usual downtown business lunch crowd stayed away.

“The downtown business people were pretty much told that downtown was going to be a nightmare to get into, so work from home, so our usual lunch crowd was nonexistent,

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but they were replaced by hotel guests and convention goers,” he said. “At night, not only people who were convention goers but also a bunch of our usual dinner crowd came in, which was surprising.”

As for longer-term impact, Hata said it’s still wait-and-see. But because of a number of events over the summer — concerts and festivals — business has been good. “Surprisingly, financially we’ve done almost the same revenue as we did last July,” he said.

Even businesses away from the convention’s ground zero saw some benefit. The CSU study talked to a representative of Luca Italian Cuisine, an Italian restaurant on the Superior Viaduct, across the Cuyahoga River west of downtown.

Though not in walking distance of the convention site, Quicken Loans Arena, its business was helped by a party thrown by the attorney general of Michigan that was attended by other Republican attorneys general in town for the convention.

In addition, a restaurant spokesman told CSU researchers, while the number of diners served didn’t grow during the week, guest checks were higher since diners spent more on top-shelf liquor and expensive bottles of wine.

Gilbert, though buoyed by the outcome he has seen in the wake of the convention, isn’t ready to do it a second time.

“You need to breathe,” he said. “I think Cleveland will be a great host for a political convention again. I don’t know what the right time is: Is it eight years in between? Twelve years in between? Sixteen years? Hopefully, not 80.”

Before last year, the last time the city hosted a political convention was in 1936, when the Republicans nominated Kansas Gov. Alfred Landon in Public Auditorium.

PA G E 4

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Metro nonprofit amps up work on community plan

By LYDIA COUTRĂ&#x2030; lcoutre@crain.com @LydiaCoutre

It turns out, completely overhauling its main campus wasnâ&#x20AC;&#x2122;t quite enough for MetroHealth, which now is forming a nonprofit organization dedicated to developing and revitalizing its surrounding neighborhood. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re fully committed to the revitalization of West 25th Street and plan on designing the new campus with the community in mind,â&#x20AC;? said Dr. Akram Boutros, MetroHealthâ&#x20AC;&#x2122;s president and CEO, during an interview last week.

The health systemâ&#x20AC;&#x2122;s board of trustees in late July approved the creation of CCH Development Corp., a nonprofit devoted to revitalizing its West 25th Street neighborhood and developing nearby abandoned real estate in collaboration with various other partners. The articles of incorporation were submitted in the first week of August. Next up is electing directors, and once a board is seated, look for staffing and leadership.

The work will happen alongside MetroHealthâ&#x20AC;&#x2122;s campus transformation project, a complete overhaul of its campus, including replacing its iconic, but aging, patient towers. â&#x20AC;&#x153;Since we are not a private corporation that can take its dollars and send it back to shareholders, we reinvest in the community,â&#x20AC;? Boutros said.

In the weeks since the development nonprofit proposal became public, MetroHealth has had conversations with some of the largest nonprofits and funding organizations in the area who want to support development of the Near West Side.

Boutros said he has been approached

with development ideas for campus-like housing for medical and surgical residents, hotels, coffee shops, specialty food stores, a hightech business incubator and others.

The nonprofit will begin by looking at the work that has been done over the years and then begin contacting, meeting and coordinating with banks and other nonprofits interested in investing in the area. Theyâ&#x20AC;&#x2122;ll need mortgages, loans and various financial instruments to fund the work, because the dollars will not come from the MetroHealth System, Boutros said.

While other hospitals do work to support their neighborhood, creating a separate nonprofit for the work isnâ&#x20AC;&#x2122;t common. Spokespeople for Cleveland Clinic, University Hospitals, Summa Health System and Akron Childrenâ&#x20AC;&#x2122;s all confirmed that the systems donâ&#x20AC;&#x2122;t have such a model.

But the model isnâ&#x20AC;&#x2122;t unheard of.

Nearly a decade ago in Columbus, Nationwide Childrenâ&#x20AC;&#x2122;s Hospital partnered with a local community development corporation to form a nonprofit focused on affordable housing, said Angela Mingo, director of Community Relations at Nationwide Childrenâ&#x20AC;&#x2122;s Hospital. Since beginning in 2008, the nonprofit has developed, repaired or rented 300 properties.

In studying the best way to go about revitalizing its neighborhood, MetroHealth looked both at Nationwide Childrenâ&#x20AC;&#x2122;s and at Cleveland State University, which also took up a similar model several years ago in developing housing for students, Boutros said.

The nonprofit proved to be the best model for MetroHealth because it brings together the largest anchor institution (the health system) and partners, such as the city, philanthropic agencies and CDCs, Boutros

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said. The nonprofit also could participate in tax credits, such as historic or new market tax credits, that the system wouldnâ&#x20AC;&#x2122;t have access to.

Mingo said she believes this type of work is just starting to trend nationwide. For one, anchor institutions are inherently place-based, giving them a clear opportunity to improve the communities in which theyâ&#x20AC;&#x2122;re rooted.

And for hospitals in particular, thereâ&#x20AC;&#x2122;s a prevention aspect. With so much of a patientâ&#x20AC;&#x2122;s health impacted by what happens outside the walls of a hospital, it only makes sense to try to change some of that for the better.

The social determinants of health break down to about 20% genetics, 20% health care, 20% environmental and 40% behavior, Boutros said.

He compares ignoring the environment in which patients and staff live to ignoring MetroHealthâ&#x20AC;&#x2122;s dayto-day business of providing health care services.

For other anchor institutions looking to take on this kind of work, Mingo stressed the importance of collaboration, strong partners and community support and engagement. â&#x20AC;&#x153;This is not an opportunity for anchor institutions to define what the community needs, but itâ&#x20AC;&#x2122;s really an opportunity to listen and respond to what the community says they need,â&#x20AC;?

Mingo said. â&#x20AC;&#x153;Absent those key elements, challenges could undoubtedly arise in this level of work.â&#x20AC;? Although MetroHealth is not expected to fund the ongoing operations of the nonprofit, Boutros said no one but MetroHealth could fulfill the leadership role in this revitalization effort.

His hope is that by the 2023 completion date for the systemâ&#x20AC;&#x2122;s campus transformation, the surrounding area will be â&#x20AC;&#x153;substantially developed.â&#x20AC;?

Ohioâ&#x20AC;&#x2122;s largest fee-only registered investment adviser (RIA) has claimed a physical foothold in the Cleveland market as it furthers a growth trajectory across the state.

Cincinnati-based Johnson Investment Counsel has acquired the financial advising firm Magis Wealth Planning of Brecksville. Terms of the deal were not disclosed.

Magis, a three-person firm founded by Tony Kure in 2013, may be small, but it presents a major growth platform for Johnson, said president Jason Jackman. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been very interested in Northeast Ohio for some time,â&#x20AC;? Jackman said. â&#x20AC;&#x153;We first considered an acquisition there 10 to 15 years ago, (but) we just couldnâ&#x20AC;&#x2122;t get the cultural alignment right. Weâ&#x20AC;&#x2122;ve always thought of Cleveland as a natural expansion of building out our Ohio footprint.â&#x20AC;?

Kure, a former sell-side analyst at KeyBank who left to start his own firm, said he wasnâ&#x20AC;&#x2122;t actively planning to sell and had been approached about doing so a couple times before the opportunity with Johnson became a reality.

Kure

Jackman

â&#x20AC;&#x153;Knowing what I knew about Johnson and their reputation, they were on a short list of folks that Iâ&#x20AC;&#x2122;d listen to what they had to say,â&#x20AC;? Kure said.

The benefit to clients is the connection to a larger organization in Johnson, which offers deepened resource and additional planning services. Johnson has a trust company, for example. â&#x20AC;&#x153;We get to maintain our existing client base and think this is a better path going forward,â&#x20AC;? Kure said. â&#x20AC;&#x153;With the advantages of scale and the way they operate, this just made a lot of sense.â&#x20AC;?

Kure and his partner, Joe Radigan, both are now directors of the Northeast Ohio market for Johnson.

As the largest fee-only RIA in Ohio â&#x20AC;&#x201D; with $9.1 billion in assets under management, according to InvestmentNews, which also makes it the 17th-largest RIA of its type in the country â&#x20AC;&#x201D; Johnson was almost con-

spicuous by its absence here. The firm, with 114 employees and clients in 46 states, has some business here, but has never had a physical platform in the Northeast Ohio market.

A 2009 acquisition added the firmâ&#x20AC;&#x2122;s offices in Dayton and Columbus. â&#x20AC;&#x153;Not having a presence there with our desire to serve the whole state doesnâ&#x20AC;&#x2122;t make a lot of sense,â&#x20AC;? Jackman said, calling the deal in Cleveland a â&#x20AC;&#x153;significant milestoneâ&#x20AC;? for the company.

Growing the business in this market is an obvious goal, though Jackman hasnâ&#x20AC;&#x2122;t outlined any specific targets for Kureâ&#x20AC;&#x2122;s team yet. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to see what kind of momentum we gain from this,â&#x20AC;? he said. â&#x20AC;&#x153;We have a sense of what the growth trajectory has been to this point, and we think this will catalyze some of this growth a bit. Weâ&#x20AC;&#x2122;re looking forward to getting to know the market on the ground.â&#x20AC;?

Kure said he feels this market is â&#x20AC;&#x153;fertileâ&#x20AC;? ground to grow on, particularly with the affiliation with Johnson. â&#x20AC;&#x153;As competitors in the Cleveland market prior to being acquired, we had never run into them,â&#x20AC;? Kure said. â&#x20AC;&#x153;They've had clients, just no physical presence. So thatâ&#x20AC;&#x2122;s why itâ&#x20AC;&#x2122;s a hand-inglove fit for them because now they have feet on the ground in Cleveland.â&#x20AC;?

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Finding the best employees and keeping them loyal and productive remains the top challenge facing the areaâ&#x20AC;&#x2122;s human resources managers, according to the annual survey done by the Employers Resource Council in Highland Heights.

The ERC, in partnership with Crainâ&#x20AC;&#x2122;s Cleveland Business, surveyed 116 organizations earlier this year.

Representatives of 50 cited â&#x20AC;&#x153;hiring and retention of talentâ&#x20AC;? as their top concern. This issue has topped the survey for the past seven years, according to Margaret Brinich, the groupâ&#x20AC;&#x2122;s manager of surveys and research.

Brinich said the hiring and retention issue is an ongoing challenge, but she added it goes beyond the perennial complaints about the shortage of skilled workers or the overall qualifications of job seekers. â&#x20AC;&#x153;Employee expectations are on the rise. It appears to be a generational shift,â&#x20AC;? she said. â&#x20AC;&#x153;The job of human resources is tougher today,â&#x20AC;? she added, citing the complex and wide range of personnel policies that are outlined in the survey.

Brinich cited survey responses that underscored the importance of hiring. About one-quarter of the companies, a plurality of the answers, said the employees were their greatest strength as an organization. â&#x20AC;&#x153;After three years in a row, with executive/leadership positions cited as the No. 1 most important positions at organizations, this year saw a runaway return of â&#x20AC;&#x2DC;allâ&#x20AC;&#x2122; employees as most important,â&#x20AC;? she said.

Laura Oleska, manager of human resources for the 70-employee Aluminum Line Products Co. in Westlake, said she is constantly working on the hiring and retention issue. She said even if the company is not adding workers, hard work must be put in to maintain a potential pipeline for filling jobs should it be needed. â&#x20AC;&#x153;There is a lot of networking and the need to build relationships with the local colleges,â&#x20AC;? Oleska said.

In addition to the traditional legwork and networking, she said the use of internet technology is changing the game. Access to the internet has pluses and minuses. â&#x20AC;&#x153;People who already have jobs are the people you want,â&#x20AC;? she said. â&#x20AC;&#x153;But it makes it easier for employed workers to look for new jobs,â&#x20AC;? Oleska said.

The technology adds to the complexity of her job by creating more options for everyone.

Kent Castelluccio, president of Independence-based Area Temps Inc., said his firm locates and provides temporary and permanent workers for business clients who need assistance in keeping up with the hiring and retention pressures. â&#x20AC;&#x153;We minimize the risk that can be associated with adding permanent staff and increase the workforce flexibility that comes from hiring temporary workers,â&#x20AC;? Castelluccio said. â&#x20AC;&#x153;A skilled worker today could jump ship for a dollar-an-hour raise,â&#x20AC;? he said in commenting on the volatility of the labor market.

He said his firm is filling a need and indicated that his sales have in-

Some notable trends from the ERC & Crainâ&#x20AC;&#x2122;s survey Some significant trends revealed in the latest survey include the following: JJAbout

three-quarters of the organizations offer â&#x20AC;&#x153;flexible workâ&#x20AC;? options â&#x20AC;&#x201D; the largest percentage since the survey was begun in 2001.

JJThere

was an 8% increase to 29% in the number of employers testing employees randomly for substance abuse. It remains common for companies to require an employee be tested for drugs after a workplace accident.

JJPre-employment

drug screening is used by 78% of the organizations â&#x20AC;&#x201D; a figure that is high compared to previous years. Drug screening is more common among manufacturers, as 91% said it was used.

JJDuring

the hiring process, the survey showed 49% of the respondents reported using some form of psychological assessment to help their decision-making.

JJCompanies

that prohibit firearms and other weapons in the workplace stood at 88%, up about 10 percentage points from the 2016 survey.

JJFor

the first time in five years, there was a several-percentage-point increase in the number of employers offering cash bonuses to management and non-management workers. The average bonus increased to about $4,000. The median bonus size was $1,500.

JJUsing

a time clock to track employee hours rose to 79%, the highest percentage ever.

JJThe

use of Health Savings Accounts rose to 53%, part of a steady upward

trend.

JJVoluntary employee departures and turnover held steady at 11%, but ERC said

this figure continued the â&#x20AC;&#x153;general upward trajectory over the past several years.â&#x20AC;?

JJSocial media and networking in the recruitment of employees is gaining

popularity. The use of social media increased to 74% and has increased from 38% in 2011, when the question was first asked. Internet job boards are a popular recruiting tool, with 83% of the companies using them to find candidates.

JJAlthough

the question is new and no trend is clear, 23% of the companies said they have a documented policy regarding â&#x20AC;&#x153;equal pay for equal workâ&#x20AC;? when it comes to male and female employees. Written diversity plans are in place at one-third of the organizations.

â&#x20AC;&#x153;After three years in a row, with executive/ leadership positions cited as the No. 1 most important positions at organizations, this year saw a run-away return of â&#x20AC;&#x2DC;allâ&#x20AC;&#x2122; employees as most important.â&#x20AC;? â&#x20AC;&#x201D; Margaret Brinich, ERCâ&#x20AC;&#x2122;s manager of surveys and research

creased 10% in the past few years as demand for its services has grown. In the ERC survey, 7% of the manufacturers said they use temporary workers, and 8% of the smaller organizations use them.

The prevalent workplace practices that must be managed and monitored today were classified under eight general categories: business climate, benefits, compensation, recruiting, workforce data, communication, training and development, and safety.

Companies were asked questions ranging from whether they use psychological assessments and drug testing to screen applicants, to how often they are being sued by employees and whether they provide child care assistance.

The survey covered 10 Northeast Ohio counties, although 57% of the respondents were in Cuyahoga

County. About half of the organizations were manufacturing companies, and the remainder were divided between service companies and nonprofits. The 45-page report included more than 70 questions and provided a comprehensive profile of company policies.

The majority of the organizations employed between 51 and 200 people. The median number of employees was 93. The median sales figure was $26.6 million.

Brinich said the scope of the survey suggests that human resources managers may be playing â&#x20AC;&#x201D; and want to play â&#x20AC;&#x201D; a greater role in the development of business strategy, such as the amount of money that should go to employee training programs.

A distant second when it came to the hiring and retention challenge was â&#x20AC;&#x153;managing organizational growth.â&#x20AC;?

Twelve of those surveyed cited this as their main issue. Last year, the growth issue was third after hiring/retention and growing revenue.

Managing for growth and other standard business objectives becomes more important depending on the state of the business cycle.

Brinich said in the 2009 and 2010 surveys, the top challenge was dealing with the poor economy.

And, although the state of the economy didnâ&#x20AC;&#x2122;t dominate the 2017 survey, 10% of the organizations still said they were anticipating layoffs this year. This is up a few percentage points from the single-digit layoff numbers cited in the past five years, according to Brinich.

CRAIN’S CLEVELAND BUSINESS

Business climate

Benefits

What are the biggest challenges companies are facing today?

Companies with a 401(k) or 403(b) plan for employees, and if a plan is available, does the company match?

Challenge Hiring and retention of talent

Count 50

Offer Match All organizations

Managing organizational growth

12

Changes in marketplace/ industry

10

95%

83%

Industry

Average percent increase in company’s health insurance premium:

Average percent of health insurance premium paid by employees: All organizations

Average 27%

Industry

All organizations

|

A U G U S T 7 - 13 , 2 017

|

PA G E 7

Companies making significant changes to health care benefits as a direct result of the Affordable Care Act: Average 8.62%

Industry

All organizations

Percent 17%

Industry

Manufacturing

95%

83%

Manufacturing

26%

Manufacturing

8.71%

Manufacturing

15%

Service

98%

89%

Service

29%

Service

8.55%

Service

21%

Nonprofit

86%

58%

Nonprofit

19%

Nonprofit

8.42%

Nonprofit

14%

Generating revenue/ controlling costs

7

Employee engagement

6

1-50 employees

88%

76%

1-50 employees

28%

1-50 employees

1-50 employees

24%

Accountability and inclusion

4

51-199 employees

97%

88%

51-199 employees

26%

51-199 employees

7.96%

51-199 employees

12%

Competition

4

Over 200 employees

95%

74%

Over 200 employees

26%

Over 200 employees

6.50%

Over 200 employees

24%

Compliance with government regulations

4

Health care

4

Succession planning

3

Future strategy

2

Training

2

Light/seasonal workload

2

Diversity and inclusion

2

Fundraising/grant renewals

2

What are the greatest strengths of companies today?

Strength Employees

Organization size

Organization size

Quality of product/service provided

25

Knowledge and experience

12

Company culture

10

Innovation

8

Flexibility/agility

8

Reputation/history

6

Customer/client relationships

6

Growth opportunities

5

Mission/vision

4

Structure

3

Benefits package

3

Efficiency

2

More nonprofits were expecting layoffs than manufacturing and service firms. Only 7% of manufacturers were anticipating furloughs, compared with 12% of nonmanufacturers and 15% of nonprofits.

On a brighter note, the organizations projected an average 2.8% hike in base pay this year for hourly workers. The average increase in base pay for salaried workers was projected to be 2.9%.

The survey showed that almost all of the companies questioned offered a 401(k) or 403(b) benefit plan. Nonprofits offered a plan 86% of the time.

Many companies match employee contributions, but usually cap them at around 6%.

Health care issues were listed as a top challenge by only a handful of organizations, but quite a few (17%) of those asked said they made significant changes to their health care plans as a direct result of the passage of the Affordable Care Act (ACA).

The adjustments and changes described by the companies were largely designed to reduce costs. These adjustments included higher deductibles, the requirement that employees pay a greater share of premiums and dropping spouses from coverage.

The most changes occurred at small and large organizations (24%).

Only 12% of the organizations that employed between 51 and 200 people reported significant changes as a result of the ACA. Employees often are asked to contribute to the cost of a company’s health care insurance plan. The share

Organization size 11.60%

Compensation Average base increase projected for hourly workers in 2017: All organizations

Hourly Salary 2.79% 2.91%

Industry

Average bonus amount in dollars:

Minimum hourly rate paid to employees: All organizations

Average $11.51

Industry

All organizations

Companies with measures that guarantee “equal pay for equal work:” Bonus $3,959

Industry

All organizations

Percent 23%

Industry

Manufacturing

2.88% 2.97%

Manufacturing

$11.51

Manufacturing

$4,900

Manufacturing

21%

Service

2.73% 2.92%

Service

$11.85

Service

$2,241

Service

25%

Nonprofit

2.60% 2.67%

Nonprofit

$10.55

Nonprofit

$6,883

Nonprofit

29%

Organization size

Count 27

Organization size

Organization size

Organization size

Organization size

1-50 employees

2.69% 3.03%

1-50 employees

$12.21

1-50 employees

$2,971

1-50 employees

20%

51-199 employees

2.85% 2.91%

51-199 employees

$11.44

51-199 employees

$3,847

51-199 employees

21%

Over 200 employees

$10.98

Over 200 employees

$5,968

Over 200 employees

36%

Over 200 employees 2.71% 2.80%

Recruiting and hiring Companies routinely using internet job boards to find candidates: All organizations

Percent 83%

Industry Manufacturing

80%

Service

86%

Nonprofit

85%

Organization size 1-50 employees

68%

51-199 employees

85%

Over 200 employees

95%

Companies using social networks (i.e.

LinkedIn, Facebook) to find candidates: All organizations

Percent 74%

Industry Manufacturing

67%

Service

81%

Nonprofit

79%

Organization size 1-50 employees

63%

51-199 employees

78%

Over 200 employees

76%

Companies utilizing pre-employment drug screening: All organizations

Percent 78%

Industry Manufacturing

91%

Service

66%

Nonprofit

64%

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Organization size 1-50 employees

64%

51-199 employees

79%

Over 200 employees

90%

of the premiums that workers are asked to pay ranged from a high of 29% at service firms to a low of 19% at nonprofits. When looked at by size, the smaller firms require a 28% share,

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and the largest organizations, 26%.

The cost of insurance is on the rise again, according to the survey. The average increase for all organizations was 8.6%, and there was little difference in the size of the increases at manufacturing companies, service firms and nonprofits.

However, companies with fewer than 50 employees faced the steepest increases, at 11.6%. Organizations that employed between 51 to 200 persons were next at 7.9%. Organizations with more than 200 employees experienced a 6.5% hike. â&#x20AC;&#x153;Corporate-sponsored health insurance programs for employees continue to receive a great deal of attention due to rising costs and uncertainty in the general market,â&#x20AC;? said Pat Perry, president of the Employers Resource Council.

Human resources managers also have to deal with a litigious society.

The survey showed 16% of the companies said they have been sued by an employee during the past two years. Larger companies led the way by indicating 37% had been sued. As far as the type of organization was concerned, nonprofits led the way with 33%.

Peter Kirsanow, a labor lawyer and a partner at the Cleveland firm of Benesch, Friedlander, Coplan & Aronoff, estimates that about 30% of litigation at larger companies is linked to actions brought by employees. â&#x20AC;&#x153;There has been a proliferation of causes over the years,â&#x20AC;? according to Kirsanow. â&#x20AC;&#x153;For example, when I first began, there was no such thing as the Americans With Disabilities Act.â&#x20AC;?

He pointed out the types of actions can change depending on the circumstances. During the severe economic downturn of 2008 and 2009,

0

Workforce Companies anticipating any layoffs in 2017:

Industry

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7%

Manufacturing

10%

Service

12%

Service

13%

Nonprofit

15%

Nonprofit

12%

Organization size

Organization size

1-50 employees

0%

1-50 employees

8%

51-199 employees

14%

51-199 employees

13%

Over 200 employees

11%

Over 200 employees

12%

there were age discrimination cases that followed the layoffs. He also said litigation has grown along with the development of the employment bar. â&#x20AC;&#x153;One of the upshots is that companies anticipate there will be litigation and add it to the cost of doing business,â&#x20AC;? he said.

Kirsanow estimates that half of the companies that he knows about have

Respondents 116 organizations in Northeast Ohio participated in the survey.

Industry

Percent

some form of Employers Practice Liability Insurance. According to the survey, 85% of all organizations have such insurance.

The workplaces practices questionnaire was first conducted in 2001 and has been done annually since then. It is designed to give guidance to human resources managers interested in industry trends.

County Cuyahoga

Percent 57%

Lake

13%

Summit

9%

Geauga

6%

Lorain

4%

Manufacturing

50%

Service

38%

Nonprofit

12%

Medina

3%

Portage

3%

1-50 employees

22%

Ashtabula

2%

51-199 employees

59%

Stark

2%

19%

Wayne

2%

Organization size

Over 200 employees

Average 169 employees

Median 93 employees

Age of employees in NEO

47 years old

45 years old

Company annual sales

$94,384,970

$23,600,000

Company size in NEO

FORTY UNDER 40

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All organizations Industry

Manufacturing

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A U G U S T 7 - 13 , 2 017 |

CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

Ohio’s ‘middle’ is quite robust

Editorial

Pay attention Something that happens once is chance, a traditional sentiment in newsrooms holds, while twice is coincidence and three times is a trend. (And a story!)

But something that happens seven times? We don’t have a phrase for that, other than maybe, “You’d best pay this some attention.”

The Employers Resource Council in Highland Heights, which conducts an annual survey of Northeast Ohio human resources managers, for the seventh consecutive year just found that “hiring and retention of talent” was the top concern among respondents. (Turn to Page 6 for a recap of the survey.)

It’s not a surprising result, even if it is a frustrating one.

Talk for even a short amount of time with anyone who runs a business, or is in charge of hiring for one, and you’re almost certainly going to hear about their difficulties in finding qualified workers to fill available spots.

On a company-by-company basis, this is completely understandable. It’s hard to get just the right worker, at just the right time, in an economy that demands more skills from everyone.

Frustration comes from the macro perspective. The U.S. Bureau of Labor Statistics’ employment report for June, which found unemployment was at just 4.4%, nonetheless noted that the number of long-term unemployed — those jobless for 27 weeks or more but still looking for work — was 1.7 million. They account for nearly 25% of the people the government counts as employed.

Surely some of those people long looking for work have tried to find it at companies that say they can’t find workers.

The disconnect, whether it’s skills or something else, is harmful to the prospects for economic growth and devastating for the personal prospects of people trying to make a living, to no avail.

Job-training programs are plentiful, but they don’t seem able to keep up with employer demands. Even an ambitious venture like Cuyahoga County’s new SkillUp service, which has $4.5

million set aside for 2017, is projected to train about 900 people this year.

If it’s hard to find workers, why is wage growth so tepid?

In a report last month, the Federal Reserve pointed out that wage growth “has been only modest, possibly held down by the weak pace of productivity growth in recent years.” The BLS report found that over the last year, average hourly earnings have risen by 63 cents, or 2.5%. ERC’s survey projects salary hikes for workers of about 2.8%.

It makes sense that employers could solve some of their talent problems by offering higher wages, but rising health insurance premiums and other costs make that difficult.

Another concern for employers is becoming more prominent: finding applicants who can pass a drug test.

In a July 24 story that focused on Youngstown, The New York Times reported that the economic impact of drug use on the workforce “is being felt across the country, and perhaps nowhere more than in this region.” The Fed’s Beige Book surveys of economic activity across the country routinely note the inability of employers to find workers able to pass drug screenings.

Alan B. Krueger, a Princeton economist who wrote a paper on the subject last year, told The Times that were it not for the drug issue, “workers trapped in low-wage jobs might be able to secure better-paying, skilled blue-collar positions and a toehold in the middle class.”

Nearly 80% of respondents to the ERC survey reported they’re using pre-employment drug screening, higher than past years, and nearly 30% now test employees randomly for substance abuse.

Our current conundrum — a pretty healthy economy that’s held back by labor shortcomings — has no easy or quick answer. What might help? Employers, examine your wage structure and training offerings. Job-seekers, sharpen up your skills.

And policymakers, make drug treatment easier to access and make doable fixes to health care.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

CLEVELAND BUSINESS

Managing Editor:

Scott Suttell (ssuttell@crain.com)

Sections Editor:

Timothy Magaw (tmagaw@crain.com)

Contact Crain’s:

216-522-1383

If you’re looking to get to the top of the economy, aim for the middle.

Despite making up less than 1% of all U.S. businesses, the mighty middle now contributes $9.3 trillion to the U.S. economy and accounts for more than half of total national job growth since 2011, according to a 2016 report from American Express and Dun & Bradstreet.

In business, the middle is known as the middle-market, companies with annual revenues between $10 million to $1 billion.

Now that’s a pretty big revenue range.

The bottom line is these are the companies that aren’t the mom-and-pop stores or the giant corporations.

Ohio, and especially our part of it, thrives on the middle market. In NorthElizabeth east Ohio, think of companies such as McIntyre Nordson, Lubrizol, Heinen’s and GOJO. In fact, a think tank on the middle market is based in Columbus, at Ohio State University’s Fisher College of Business.

On July 26, that think tank, the National Center for the Middle Market (NCMM), released its second-quarter Middle Market Indicator report, which showed that Ohio’s midmarket companies continue to forecast a higher growth rate, at 11.8% through the next 12 months, than the rest of the nation, which is projected to be 5.3%.

These types of numbers are making our region attractive to investors, Crain’s Jeremy Nobile reported last week, and it’s not surprising. Nearly 5,400 businesses in Ohio are in the middle market, and bring in more than $225 billion in annual revenue, according to the NCMM. While they represent just 0.9% of all Ohio companies, they employ almost one-third of Ohio’s workforce and generate 19% of all Ohio business revenue. Manufacturing firms make the largest percentage of middle-market firms in the state.

And how could we not feel so strongly about the midmarket? Ohio is one the country’s middle-market powerhouses, according to the American Express and Dun & Bradstreet report. In the past five years, Ohio led the country in the growth of middle-market firms, with a 106.2% increase in the number of midmarket companies.

By any measure, it’s clear the middle is where growth is happening, and we at Crain’s Cleveland Business hope that our MidMarket Perspectives program on Wednesday, Aug. 23, will help you capitalize on that. Our goal is to help you gain key insights and strategies on how your company can compete locally, succeed nationally and impact globally.

We are once again partnering with Buckingham, Doolittle & Burroughs for the event. This year’s program will pull insights and inspiration from business leaders who will talk about the importance of culture and how it plays a role in driving the success of your company; how focusing on customer experiences and feedback can influence positive change and growth; and ways to develop new business to take your company to the next level.

The keynote speakers will be Mark Smucker, CEO and president, and other executives from the J.M. Smucker Co., one of the premier middle-market companies in Northeast Ohio.

Whether you live in the middle of the country or you were born the middle child, you know that sometimes the middle can feel overlooked. The same can be true for business.

Yes, small businesses are crucial to our economy, and big corporations are vital, too. But the middle — populated by companies that manufacture sealants, industrial lubricants, hand sanitizers, and delicious jams and jellies, among countless other products — deserves notice.

If you’d like to join us in doing that Aug. 23, consider yourself invited. Just go to crainscleveland.com/events or contact Megan Lemke at 216-771-5182 or mlemke@crain.com.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com.

Please include a telephone number for verification purposes.

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A U G U S T 7 - 13 , 2 017

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PA G E 11

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LIST ANALYSIS

Staffing firms rank high on 100 Largest Employers list

By CHUCK SODER csoder@crain.com @ChuckSoder

The Cleveland Clinic is the largest employer in Northeast Ohio — but can you guess who’s No. 2?

No, you’re not allowed to look at our 100 Largest Northeast Ohio Employers list on page 41. Guess.

And no, it’s not University Hospitals. At least not technically.

We’re going by how many employees are on each organization’s payroll. And by that standard, Minute Men Cos. is technically the region’s second-largest employer.

They are one of three staffing firms in the top 10. The other two are Group Management Services

100 Largest Northeast Ohio Employers: Find the entire list on Pages 41-43.

(No. 5) and Area Temps (No. 10).

Granted, the vast majority of their employees work on behalf of other companies. But the staffing firms issue their paychecks and W2 forms.

That puts UH at No. 3, one spot above the nation’s largest employer: The federal government.

Most of the top 15 is dominated by hospitals, staffing firms and government entities. Other than the staffing firms, only two private companies broke the top 15: Progressive Corp. (No. 6) and Giant Eagle (No. 7).

General Motors used to be in the

top 15, but last November GM said it would end the third shift at its assembly complex in Lordstown. GM only reported 4,500 Northeast Ohio employees this year, down from roughly 6,000 last year.

Huntington National Bank moved further up the list than any other employer. It was ranked 49th last year. Then its holding company merged with FirstMerit Corp. (No. 44 in 2016). Now Huntington is in the No. 27 spot.

Invacare (No. 100) nearly fell off the list this year, but keep an eye on the company: In July, federal regulators lifted a restriction that had forced Invacare to severely scale back wheelchair production in Elyria. So don’t be surprised if it starts moving back up the list.

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A U G U S T 7 - 13 , 2 017 |

CRAIN’S CLEVELAND BUSINESS

Akron Children’s plots out regional plan

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Seeing steady growth, Akron Children’s is focusing on a more strategic regional approach to delivering care to children in Northeast Ohio and beyond.

For the first time, Akron Children’s surpassed 1 million outpatient visits last year.

“And we’re going to hit it again,” said William Considine, Akron Children’s president.

The system is growing in every category, said Shawn Lyden, executive vice president for the hospital. Outpatient and ambulatory visits were up 8% to 10% in the first several months of the year, and inpatient visits were also growing after having been flat for a few years.

As it continues to grow, Children’s, which now has 27 primary care practices, is looking at its regional strategy.

“Our facilities — because they were started at different times as we’ve evolved in different communities — have been a little bit fragmented,” Lyden said. “And what we’re doing right now is trying to bring them together under one roof and build what we’re calling regional health centers.”

Akron Children’s already has created two such centers and plans to break ground on two more this year.

A 38,000-square-foot facility in North Canton and a 30,000-square-foot facility in Mansfield are both scheduled to open in fall of 2018, and will collect the various services Akron

Children’s offers in each community, and put them under one roof.

Fragmentation of services is easy, and common, said Amy Knight, chief operating officer with the Children’s Hospital Association, a national association working to advance child health.

As is the case in Akron, children’s hospitals across the country have grown their regional footprint, reaching out to where families live, by adding services one at a time over the years. A rehab center here. A primary care practice there.

“So at some point, you step back and say, ‘Wow, we could provide care even better if we had all of this in one place,’ ” she said. “If you’re really going to provide patient-centered care, you don’t need them driving to the hospital for one ambulatory visit and out to a strip mall for a rehab visit, so you try to make the care convenient for the family.”

Genesis of regional health centers In 2015 and 2016, Akron Children’s began offering urgent care as a new service line, converting two satellite freestanding emergency rooms into urgent cares in Montrose and Hudson.

There was no incentive for the shift, but rather, the hospital wanted to build a better model, Considine said, calling the move both economical for the payer, and “just the right thing to do.”

The way that emergency rooms are reimbursed compared to urgent cares meant the hospital took a fi-

“There absolutely will be efficiencies in having one roof from a facilities standpoint and also from a staffing standpoint,” said Lyden, who didn’t have specifics.

‘Create a destination’

Akron Children’s Hospital had more than 1 million outpatient visits in 2016 — the most in its history. (Crain’s file photograph)

nancial hit for the change, said Lyden, who agreed it was “absolutely” the right move for patients.

“This is all about investing in our young people,” Considine said.

Akron Children’s also started urgent care services in Mansfield and Warren, where open space in an existing facility was the perfect location.

The space in Warren initially had primary care, then later added rehab and specialty services, and with the addition of the urgent care center, it organically became a regional health center and the genesis of the whole concept, Lyden said.

In Medina, another regional health center evolved similarly, with an opportunity to put fragmented services in the market under one roof.

With the success at these centers,

Akron Children’s is building two new facilities in North Canton and Mansfield to gather all services in those communities together. More are in the queue, but the hospital isn’t prepared to announce where.

In North Canton, the hospital is working with Aultman Hospital to lease land and build a facility on their Aultman North campus, where Akron Children’s already has a primary care pediatric practice that will move into the new building along with rehab and specialty services from other sites.

Akron Children’s also has identified land in Mansfield, where they plan to consolidate their services, including two primary care pediatric practices, subspecialty services, rehab services and the urgent care center.

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For children’s hospitals serving a broad range of people, it’s important to have a variety of solutions for families. For instance, a small ambulatory facility might be easier and much closer to home for a family than the nearest children’s hospital, Knight said.

“You don’t have to pay for parking.

You don’t have to walk across a large swath of land to go into a setting that you don’t need all the full services that are there,” she said.

And Akron Children’s certainly serves a wide geography, reaching as far west as Norwalk, as far east as western Pennsylvania, as far south as Mansfield, Dover and New Philadelphia and then up to Cleveland.

The regional strategy also aims to “create a destination in these local communities and enhance our visibility and our brand, by putting everything together in one site, versus having a more fragmented service.”

Lyden said hospital officials consider their entire service area to be 27 counties, but last year the system treated a patient from 85 of Ohio’s 88 — and a patient from every state in the country.

He hopes that by building critical masses of services under one roof, the hospital will continue to grow its volumes.

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2017

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ARCHER AWARDS

HR professionals who ‘hit the mark’ They are our guardians of talent, culture and integrity

HR EXECUTIVE OF THE YEAR | 14-16

Now in its seventh year, Crain’s Archer Awards program celebrates Northeast Ohio’s human resources professionals Brunecz Chess who “hit the mark.” In partnership with Anspach Howard & O’Brien Executive Search, we LEADERSHIP AND DIVERSITY | 17 are honoring human resources professionals who are building companies with the best people, talent, development and culture.

Winners for the HR Executive of the Year nonprofit and private categories, as well as the Innovation, Rising Star, Leadership & Diversity and Organizational Development categories, will be announced at the Aug. 17 event.

The judges’ panel that reviewed nominations in the HR Executive of the Year, HR Team, Innovation, Leadership & Diversity, Organizational Development, Rising Star and Total Rewards categories consisted of: J Thomas Hopkins, senior vice president, human resources, retired, Sherwin Williams (2012 Lifetime Achievement recipient) J Robert S. Gilmore, partner, Kohrman Jackson & Krantz J Denise Smudla, director of human resources, Jennings Center for Older Adults (2016 Archer winner) J Ann Killian, vice president, human resources, retired, Ferro Corp. (2016 Lifetime Achievement recipient) J Jacquelyn A. Bovinet, vice president, human resources, ClinicalRM (2016 Archer winner) Additionally, the Lifetime Achievement Award winner, presented by Howard & O’Brien Executive Search, will be recognized during the event. The honoree, Richard E. Boyatzis, is a distinguished university professor and a professor in the departments of organizational behavior, psychology and cognitive science at the Weatherhead School of Management at Case Western Reserve University.

The winner of the PRADCO Professional Development Award — which was decided upon by a panel of judges consisting of James Lundquist, director of talent development, PRADCO; Harold Harrison, chief human resources officer, Cleveland Metroparks; and Kathy McCarthy, senior director organizational effectiveness, TREMCO — also will be announced during the event.

Bennett

Cleveland Clinic team

Gregory

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Snowberger

PRADCO AWARD | 18

DiCapua

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KeyBank merger team

Harrison

Brown

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LIFETIME ACHIEVEMENT AWARD | PRESENTED BY HOWARD & O’BRIEN EXECUTIVE SEARCH

Richard E. Boyatzis

Distinguished university professor, Weatherhead School of Management,Case Western Reserve University

By DOUGLAS J. GUTH clbfreelancer@crain.com

Richard Boyatzis has spent most of his career determining the attributes of effective leadership and organizational change. He can point to his own life for inspiration, as his willingness to lead and make large-scale change has helped him become a giant in his field.

Boyatzis — a professor of organizational behavior, psychology and cognitive science at Case Western Reserve University — is the author of eight books and 200 articles on subjects including leadership, emotional intelligence, coaching and manage-

Boyatzis

ment education. In addition, he has logged over 5,500 hours coaching business executives, nonprofit leaders and government officials. An online course he co-created on leadership and emotional intelligence has educated more than 510,000 students enrolled from 215 countries. If that’s not enough, Boyatzis also is the father of Intentional Change Theory (ICT), which posits how people and organizations engage in what the professor calls “sustainable, desired change.”

“All of them excite me,” Boyatzis said regarding the various streams of his work.

After receiving tenure from Case in 1987, the New York City native got busy evolving entrenched academic

thought in how individuals, teams, organizations, communities and even countries brought about necessary change. Boyatzis’s best-selling 1982 book, “The Competent Manager,” shook academia by relaying how abstract characteristics such as emotional intelligence — rather than just cognitive abilities — allowed managers to be successful in their jobs.

“I’m variously a troublemaker, innovator or pain in the ass, which can threaten people who like the things they way they are,” Boyatzis said.

Central to his work is how individuals achieve manageable, meaningful change, whether a behavior, attitude or their current circumstances.

Boyatzis’s Intentional Change Theory

envisions how transformation is realized through self-discovery and the application of strong habits to create an idealized self.

Boyatzis’s long and varied career has been a roadmap of change. His first job in 1966 was in aerospace, at the time fulfilling a love for the space program he’d had since childhood.

Following two weeks of intensive work on an engineering issue related to window outlets on a space shuttle, Boyatzis realized how little his research managers were getting out of their skilled staff.

“These were great scientists, but they didn’t know how to organize people and keep them juiced,” Boyatzis said.

SEE BOYATZIS, PAGE 19

To register for the Aug. 17 Archer Awards event, contact Megan Lemke at 216-771-5182 or mlemke@crain.com.

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2017

A

HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

Vice president for human resources, Case Western Reserve University

Chief human resources officer, University Hospitals

Chief talent officer, Breakthrough Charter Scho

Carolyn Gregory In the decade since she joined Case Western Reserve University, Carolyn Gregory’s “signature strength” has been a commitment to ongoing conversations to keep a pulse on the university community.

“Carolyn Gregory is one of those people who dramatically advances an organization yet never seeks credit,” the nomination said.

She stepped into her role as vice president for human resources just a few months after extensive staff layoffs at Case Western Reserve were required to help reduce a nearly $19 million deficit.

Given this climate, Gregory focused on implementing and leading programs designed to assist employees, such as paid parental leave and emergency back-up child care.

Alongside this effort to support employees helped enhance morale, substantial benefit changes were met with “astonishingly little objection” thanks to advanced communications explaining the need for the changes, as well as continuing certain aspects of the prior plan that employees said were most important to them.

“This process was a powerful example of Carolyn’s immense skill at navigating challenging issues in ways that

all sides ultimately embrace,” the nomination said.

The nomination highlights two campuswide initiatives that show her commitment to employee developGregory ment.

In launching the university’s wellness program in 2011, Gregory balanced the needs that it be modest in cost while drawing significant campus participation. A 2014 employee survey showed a desire for more coordinated professional development efforts. So she repurposed existing funds to hire someone into a newly-created HR position to design a high-quality Professional Development Center.

“Carolyn’s contributions have helped Case Western Reserve demonstrate that it strongly values employees, treats them equitably, and at the same time makes fiscally responsible choices to help ensure the organization’s sustainability,” the nomination said. “In short, she makes the university a better place for everyone.” —Lydia Coutré

Tom Snowberger As the health care industry evolves, Tom Snowberger has set University Hospitals “on a path to determine how we must proactively anticipate, plan for and invest in our workforce,” according to his nomination.

To begin the creation of a detailed workforce development plan, Snowberger, UH’s chief human resources officer, commissioned a first-of-itskind survey to gauge employee preferences in benefits, compensation programs and other offerings.

Snowberger leads through tough situations on a daily basis, but his true passion is in people and development. He has worked to build and strengthen leaders’ capabilities through the launch of the UH Leadership Institute, the system’s most comprehensive approach yet to enable leaders to meet their full potential.

“Tom believes that a strong employee value proposition that is aligned with the organization’s values and business objectives will attract the right talent to our workforce,” the nomination said. “It then becomes our responsibility to nurture and develop this talent throughout all stages of their career with UH.

Diana Harri son

Leaders are the differentiator in this equation and Tom’s goal is to equip each leader with the right skills and resources to deliver the value proposition and inspire Snowberger their teams to achieve excellence.”

He has led significant budget-reduction projects, complex benefit changes and willingly engages stakeholders and seeks out dissenting voices.

In a letter to the judges, UH CEO Thomas F. Zenty III called Snowberger “one of the most influential leaders in our health system.” Zenty points to Snowberger’s strong business acumen, ability to directionally align people strategies with business objectives, engaging leadership style that invites collaboration.

“As Tom often says, ‘leadership is hard.’ But if our leaders can set a clear vision for their teams and display the courage necessary to achieve it, we will fully advance our mission,” the nomination said. — Lydia Coutré

As Breakthrough Schools underwent massive growth, Diana Harrison has helped create order out of the chaos that comes with tripling the number of students it serves in just six years.

“We would not have been able to meet the talent needs of that kind of aggressive growth without Diana’s increasingly effective efforts,” the nomination said.

The charter school organization has grown from four schools with 1,100 students to 12 schools with 3,400 students during Harrison’s tenure, and it increasingly has used technology to handle the growing employment load with minimal staff increases.

Harrison leads a “small, but capable” human capital team that is consistently rated among the highest departments for customer service and responsiveness.

“On the hiring front, in serving an organization that continues to add schools and is therefore in constant need of additional high quality talent, Diana and her team have been able to create hiring events, implement on-line interviewing and screening tools, and develop relationships with outside organizations to

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ARCHER AWARDS

HE YEAR

rri son

HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

Chief human resources officer, ACRT Inc.

Chief human resources officer, US Acute Care Solutions

Robert E. Chess

arter Schools maintain an effective talent pipeline, even though our schools are not able to pay competitive wages relative to district schools due to inequitable public funding,” the nomHarrison ination said.

In that effort, Harrison and her team have worked to recruit more school leaders and teachers of color, which is crucial for an organization serving a student body of more than 80% minorities. They’ve also worked to develop cultural sensitivity awareness and training programs.

She has led several key strategic initiatives, including a unique performance-based compensation model that has received positive feedback from the U.S. Department of Education and could be seen as an example for others.

“Diana is smart, incredibly efficient and productive, and has proven to be a fine judge of talent and a demanding, yet supportive boss,” the nomination said. — Lydia Coutré

Robert E. Chess has put a strong focus on employee engagement and development as Akron-based ACRT Inc. has grown.

Chess has been with the utility vegetation management company for about seven years, and according to the nomination, it would be “hard to imagine what ACRT would look like today” without him. In that time, the company has grown from about 300 employees in 26 states to about 1,100 employees in 46 states. That growth in general, and the acquisition of Bermex Inc. in particular, means Chess has had to work with his fellow leaders on initiatives to “align priorities, standardize leadership practices, and promote strategic synergy,” the nomination said.

Overall, Chess has made a particularly large impact in the area of employee engagement, using an annual survey to address initiatives on communication, culture and employee recognition. Participation is consistently above 90% on that survey.

“Any one of these initiatives might read like standard fare for an executive in Bob’s position,” the nomination said.

“What sets him apart is the extent to which he remains engaged on the front

line of ACRT, dedicating significant portions of his personal time to the coaching, development, and mentoring of leaders at all levels of the organization. In this way, Bob embodChess ies his own guiding vision, engaging in the success of everybody else, and there are few if any at ACRT who can say that they would be the leaders they are today without his active influence and example.”

The company’s president and CEO, Michael B. Weidner, in a letter highlighted Chess’ work on leadership development, including a oneweek bootcamp for managers and supervisors, and on education opportunities for employees.

Chess also is highly involved in the community. For example, he’s on the board of the Akron Urban League in addition to being a member of a number of industry groups, including the Ohio Employee Ownership Center and the HR Leadership Group of Northeast Ohio. — Rachel Abbey McCafferty

Sharon Brunecz Sharon Brunecz has been an integral part of helping Canton-based, physician-owned emergency medicine group US Acute Care Solutions grow.

The group got its start in May 2015 when Emergency Medicine Physicians in Ohio partnered with private equity firm Welsh, Carson, Anderson & Stowe to form US Acute Care Solutions. In the months that followed, the organization acquired another eight groups across the country to grow the platform.

Under Brunecz’s leadership, US Acute Care Solutions has consolidated those companies’ separate human resources operations into one, a change that was effective at the start of 2017. This consolidation involved working with other company leaders to come to a consensus on the policies and benefits and moving the information systems used to track the policies onto one platform. “...Sharon navigated some choppy waters,” the nomination stated. “Companies that were acquired needed to abandon their HR policies, compensation policies, retirement, health care, system of record for payroll, etc. Some were not thrilled with the changes on the horizon. Sharon was able to com-

municate the value of the ‘new’ Total Rewards and HR programs at USACS and attract the alignment and support needed to make such monumental transitions successful.”

Brunecz While doing all that, Brunecz was able to both cut costs and improve the benefits available to employees. The nomination highlighted one change in particular: the company’s parental leave policy. The policy is available to all parental caregivers, but of particular note is the 12 weeks of paid leave for birth mothers. Parents also can take advantage of flexible scheduling for three months after leave, and the company’s website notes that birth mothers can have flexible scheduling the month before leave.

“And in so doing this herculean work, she created an environment that makes USACS a destination employer for female physicians,” the nomination said. — Rachel Abbey McCafferty

The human-resource professionals at Koinonia Homes embody the very core of our mission: identifying, motivating and training highly passionate employees

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Passion FOR People

It’s a tall task, and funding is limited.

disabilities achieve their life dreams.

Still, through an unwavering commitment to their work, the Koinonia HR team maintains an employee retention rate more than three times our industry’s average.

The numbers are impressive, but the results are very real. They carry enormous human impact on the quality and continuity of service we provide to more than 500 people

Congratulations to everyone in the HR Department for winning the 2017 Archer Award! Your work is truly invaluable.

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every day.

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CRAIN’S 2017 HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

HR EXECUTIVE OF THE YEAR (PUBLIC) AWARD RECIPIENT

Assistant vice president of human capital, Safeguard

Executive vice president, chief people officer, Fairmount Santrol

Jennifer Anspach In the first year of moving Safeguard from a fully insured to self-insured program, Jennifer Anspach reduced the cost of health care premiums by almost $2 million.

Those savings were maintained in the second year of the program with little or no impact on associates, according to the nomination. She’s also saved more than $600,000 in worker’s compensation, unemployment and reducing the full-time employee requirement.

Prior to her current role, Anspach worked in accounting and finance for Safeguard. The transition has been “seamless,” and her background has helped in her new role, the nomination said.

“Jennifer exemplifies what it means to be a successful HR executive,” the nomination said.

Anspach is focused on the needs of employees and their work-life balance. In the three years that she has

taken on the leadership role in human resources, she has implemented a casual dress code, wellness initiative and career enhancement and tracking opportu- Anspach nities, as well as work from home, part-time and flex schedules.

She’s focused on initiatives that aid in talent development for the more than 1,300 employees at Safeguard, as well as newly hired employees.

Most recently, she oversaw multiple initiatives focused on hiring and developing recent college graduates; providing enhancement opportunities to associates who have leadership potential; and identifying and coaching employ-

Brian Richardson “Jennifer exemplifies what it means to be a successful HR executive.”

— from the nomination letter

ees who need more skills to position themselves for professional growth.

What makes her stand out, according to the nomination, is her team-player attitude and willingness to take on other responsibilities, from helping the accounting department to working a registration booth at an industry conference.

“We are fortunate to have Jennifer leading our associates,” the nomination said. “She is always up for a challenge and deserves recognition for all of her hard work and innovative strategies and initiatives she has brought to Safeguard.” —Lydia Coutré

Congratulations Archer Award Honorees!

Brian Richardson has only been with Chesterland-based Fairmount Santrol for a little more than two years, but he’s already had to navigate a number of drastic changes.

The company was facing low demand for its products when Richardson joined, due to the low cost of oil at that time. That meant it was important for Fairmount Santrol to reduce its footprint — a challenge Richardson faced by “moderating reality with empathy,” according to the nomination.

“Under his leadership, the Human Resources team performed the task of reducing our footprint with paramount concern for how these changes impacted people,” the nomination stated.

“While helping to make some tough decisions about the size and structure of the company, Brian simultaneously led an enterprise wide cost reduction effort. The cost reduction team was comprised of 18 different functional aspects of the business and ultimately identified opportunities to reduce expenses in excess of $20 million.”

But near the end of 2016, as oil prices stabilized, the challenge changed, and Richardson helped Fairmount create a plan to reopen plants and in-

crease production.

Richardson is a part of Fairmount Santrol’s executive leadership team, the first human resources professional to hold such a role Richardson with the company. This allows him to share the “people impact” of possible decisions with the rest of the leadership team, the nomination said.

Richardson oversees a number of traditional human resources functions like benefits and compensation and employee relations, as well as less traditional areas like information technology and sustainable development. On the IT side, Richardson makes sure the company’s technology strategy aligns with its “organizational priorities,” the nomination said. In terms of sustainable development, the nomination said Richardson knows they offer “tangible value” through factors like energy efficiency, as well as value through engaging employees. — Rachel Abbey McCafferty

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ARCHER AWARDS LEADERSHIP AND DIVERSITY FINALIST

Robin Bennett Human resources director, AmeriWound LLC In four years at AmeriWound LLC, Robin Bennett has helped transform what was then a startup with a few founding employees into what the nomination calls a "diverse, professionally staffed and growing company operating in five states."

The company provides physician staffing for nursing home-based wound care. Bennett was responsible for establishing an HR system "along with initiaitves that assisted AmeriWound to move from its first lean months to seeing more than 60,000 patient visits nationally in 2016," the nomination stated.

AmeriWound's CEO and chief operating officer "consult directly with Robin on company strategy, which most recently included an initiative to increase full-time employment of recent graduates from residency/fellowship programs," chief financial officer Milton Leighliter wrote in the nomination.

"Nothing is more important than the culture of respect Robin has established at AmeriWound," he wrote.

"In more than 35 years of professional employment, I have never personally worked in a company with a more diverse workforce at every level. AmeriWound office staff is a blend of urban, suburban and rural em-

ployees that have established a true community."

Leighliter added that AmeriWound "deploys a physician staff that includes many members of traditionally Bennett underrepresented groups in health care."

Staffing is particularly challenging for companies that serve nursing homes, the nomination noted, because patients there "are some of the most vulnerable in health care, and not every physician is the right candidate to provide care at the patient bedside."

Bennett "has developed an extensive credentialing framework to provide for the needs of AmeriWound's clients," according to the nomination. Under her leadership, AmeriWound "has been able to establish such a strong diverse workforce largely due to a hiring process that is based more on objective rather than subjective measures.

This includes testing of employee skills for many positions, which puts the focus on the candidate's fit with the work needed." — Scott Suttell

LEADERSHIP AND DIVERSITY FINALIST

Cleveland Clinic

Office of Diversity and Inclusion The Cleveland Clinic is a massive enterprise, with 2016 gross revenue of $8 billion and more than 45,600 employees, which means its Office of Diversity and Inclusion faces a huge task in making sure that diversity is fully integrated into the health system's daily operations.

The office is more than up to the task, having ranked second in the 2016 DiversityInc list of the nation's top 10 hospitals and health systems for employee diversity.

According to the nomination, the office, known as ODI, has a broad scope, with three core focus areas: enterprise demographics, cultural competency education and training, and health equity and economic vitality.

Its efforts cut across all aspects of the Clinic's operations.

It collaborated, for instance, with the market research team to "develop a Hispanic market study to better understand, better serve and decrease health disparities of the Hispanic community living in Northeast Ohio."

ODI works with internal and com-

Cleveland Clinic Office of Diversity and Inclusion

munity stakeholders to "make advancements in research, patient access, patient education, patient satisfaction and patient outcomes" to reduce disparities in health care, the nomination stated.

Among its 2016 initiatives were one in which the African American Employee Resource Group, the SALUD Hispanic/Latino Employee Resource Group and Employee Health "assessed health outcomes for caregivers enrolled in the Cleveland Clinic Employee Health Plan," the nomination stated. "It was determined that African American and Hispanic caregivers were not taking advantage of reduced health care premiums offered by par-

ticipating in wellness programs, nor successfully participating in coordinated care programs. As a result, a Minority Health Taskforce was launched to better market and increase outreach to these caregivers with the goal of improving future health outcomes."

Other initiatives included ACTiVHOS, billed as the first fully bilingual health and wellness youth outreach program in Northeast Ohio; Tu Familia, Su Salud, a bilingual series of community health dialogues; and Men's Health at Club San Lorenzo, which featured an event at which Hispanic physicians spoke to 40 men about prostate and colon cancer risk.

— Scott Suttell

LEADERSHIP AND DIVERSITY FINALIST

Lisa DiCapua

Director of human resources, Greater Cleveland Food Bank The important work of the Greater Cleveland Food Bank can't be done unless employees are committed to the organization's social mission.

That's why Lisa DiCapua has worked hard to make sure workers and supervisors receive training in diversity and inclusion.

In the area of diversity, the nomination states, DiCapua believes that "building relationships and understanding each other is key to being a cohesive team." Among her initiatives: implementation of a "comprehensive and mandatory supervisory training program for all employees with a focus on diversity/inclusion and on how to promote multicultural competency among employees;" and "conducting(ing) training for managers on knowledge and skills needed to prepare hiring managers creating an openness to candidates from various backgrounds and ensuring that we create a workforce that resembles the city we work in."

She also worked to provide "easy, online access to policies (diversity, anti-harassment, hiring practices, etc.), data and other resources pertaining to the Food Bank's diversity/ inclusion initiatives, policies and requirements," according to the nomination.

But building a sense of inclusion among staff members isn't just about policy.

According to the nomination, "Staff are encouraged to have fun together. We have an annual retreat where we shut down operations for a day and have team buildDiCapua ing, volunteer and one of our agencies handing out food to those in need, and going out to lunch together."

In addition, Food Bank workers "take off a half day and host an employee-only summer picnic with friendly competition" between teams to get to know each other a little better. The Food Bank hosts other activities for team building and inclusion, such as bowling, kickball and cornhole competitions.

Those activities are consistent with DiCapua's belief that "the primary ingredient for success in HR is relationship-building with employees," the nomination stated.

"Lisa is always open to talking through difficult situations with employees," a co-worker said in a testimonial included in the nomination.

"She gives good advice and can be trusted to keep it to herself. I have gone to her many times and have suggested other managers do the same.” — Scott Suttell

CONGRATULATIONS Richard Boyatzis, PhD

Congratulations to Richard Boyatzis, PhD, the Archer Award’s 2017 Lifetime Achievement Award Recipient, for his significant contributions to the human resource profession over the past five decades.

Boyatzis is the H.R. Horvitz Professor of Family Business at the Weatherhead School of Management and a Case Western Reserve University Distinguished Professor. His groundbreaking work in Emotional Intelligence continues to influence positive change and resonant leadership in business environments around the world.

weatherhead.case.edu

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2017 PROFESSIONAL DEVELOPMENT AWARD FINALISTS PRESENTED BY PRADCO

Monica Brown, vice president, human resources

and administration, The Cleveland Foundation Tim Michalk, vice president, human resources, AMETEK Allison Valencic, HR generalist, American Greetings Three HR professionals have been selected as finalists for the PRADCO Professional Development Award.

The PRADCO Professional Development Award recognizes a human resources professional who has demonstrated a commitment to the importance of professional development.

Monica Brown, vice president, human resources and administration, The Cleveland Foundation; Tim Michalk, vice president, human resources, AMETEK; and Allison Valencic, HR generalist, American Greetings were chosen by a panel of judges assembled by PRADCO. The judges were: James Lundquist, director of talent development, PRADCO; Harold Harrison, chief human resources officer, Cleveland Metroparks; and Kathy McCarthy, senior director organizational effectiveness, TREMCO. The PRADCO Professional Development Award is designed to honor a mid-career or senior HR professional who:  Devotes time and energy into people who want to improve and get ahead;  Promotes the development of others through coaching and/or learning opportunities;  Participates in career pathing discussions/exercises for employees;  Prioritizes and focuses on the advancement of individuals within the organization.

According to the finalists’ nominations:

Brown

Michalk

 “As vice president of human resources and administration for the Cleveland Foundation, Monica Brown is charged with all the typical responsibilities you’d expect – overseeing day-to-day things like HR strategy, recruiting, benefits, payroll, compliance, training and development, and communication.

But her true calling and passion lies in building a dynamic, engaging and inspiring culture that attracts talented employees and makes them want to work and stay. She believes wholeheartedly that helping people thrive and advance in their careers is her paramount responsibility, and one she takes very seriously. …”  “The purpose of the Professional Development Award is to recognize a person who is passionate and progressive in developing individuals to be greater than they previously thought, and to support them in achieving their career aspirations.

Tim Michalk is a HR professional who embodies this in each interac-

tion that he has with his peers as well as the people who he serves. As the vice president of human resources for the Advanced Motion Solutions Division of AMEValencic TEK he has been instrumental in transforming the culture to be one which allows people to develop, to grow and to advance. …”  “Allison Valencic has contributed greatly to the professional development efforts at American Greetings.

Along with her comprehensive HR expertise, Allison’s ability to practically solve problems, provide guidance and achieve results in a variety of areas are just a few of the characteristics that have contributed to her success at American Greetings.

Thanks to Allison, several of our initiatives including associate engagement, performance management, talent development, benefits, employee relations and culture efforts have yielded positive results for associates at all levels. And … the benefit of her efforts? Increased associate engagement and productivity across the company. …”

The winner will receive an executive coaching package from PRADCO for themselves or for someone that they appoint.

HR TEAM (PUBLIC) AWARD RECIPIENT

KeyBank

The KeyBank merger team

The 2016 merger of KeyBank and First Niagara in 2016 came with a host of HR challenges, though none of which the Cleveland-based bank was fully equipped to handle.

For one, the $4.1 billion transaction meant migrating a million customer accounts as well as more than 5,000 employees into what the nomination form described as the “new KeyBank.” The team was led by Jennifer Koch, KeyBank’s director of HR solution delivery and optimization.

As such, KeyBank’s HR integration team brought the two companies together in an “accelerated, controller manner.” Some of the highlights of the team’s work, according to the nomination, include placing talent into appropriate roles while reducing voluntary turnover from 17% (the baseline) to 14% (post-merger); developing an onboarding program for the First Niagara employees, which led to a new onboarding program for all new KeyBank hires; conducting “culture integration sessions” in First Niagara markets to connect employees to the “values and strategy” of the newly combined company; and leading the

systems conversion of First Niagara employees to KeyBank’s pay and benefits platform with “no critical incidents or issues.”

Moreover, the vast majority of the programs and processes the HR integration team led to support the merger were custom designed and have now been documented into an HR merger playbook for future use.

“When we announced that KeyCorp and First Niagara Financial Group, Inc. were combining forces to form the 13th largest U.S. commercial bank, we realized there was a tremendous amount of work ahead of us — some of which we knew immediately, some presented itself in flight,” wrote Chris Gorman, KeyBank’s senior executive vice president and head of merger integration, in the nomination.

“Through it all, we maintained the belief that our cultures, our strategies, and our collective commitment to the communities we serve were a great fit and provided us with an extraordinary opportunity to build on the remarkable talent and tremendous presence that KeyBank and First Niagara created in our markets.” — Timothy Magaw

Congratulations,

Anna Gluck!

CRAIN’S ARCHER AWARD 2017 FINALIST

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ARCHER AWARDS HR TEAM (NONPROFIT) AWARD RECIPIENT

Koinonia Homes

The Koinonia Homes team

According to Koinonia Homes, people with intellectual and developmental disabilities are far more likely to fulfill their life dreams if they have well-trained, experienced and, most importantly, motivated people at their side.

In the industry, those individuals are commonly known as direct support professionals —a role that inherently faces a significant amount of turnover. That’s where the HR team at Koinonia, a 43-year-old nonprofit serving more than 500 adults in Northeast Ohio, comes into play.

The statistics perhaps tell the story best. According to the nomination, the industry average turnover rate for direct support professionals, or DSPs, is 75%. Contrast that with Koinonia’s 72% retention rate among its DSPS. Moreover, the organization boasts an 82% retention rate for those hired in 2016.

“Their approach has a very personal touch. They lead efforts to train, equip, and support our DSP’s to perform their best and are working to develop a culture of excellence at Koinonia,” the organization's president and CEO, Diane Beastrom, wrote in the nomination.

Also, the HR team identified four areas for improvement in leadership qualities and soft skills among the or-

ganization’s front-line supervisors.

The group worked with Cuyahoga Community College’s Corporate College to create a curriculum and conduct training for 48 of its supervisors that “bolstered their leadership, professionalism, and interpersonal effectiveness, while also addressing competencies specific to serving people who have developmental disabilities,” according to the nomination.

The team also conducted an analysis of Koinonia’s benefits package, which resulted in savings of nearly $500,000. Savings were used to create a new merit-based reward program that provided bonuses to all Koinonia employees based on their 2016 performance.

In 2016, the Koinonia HR team included Mary Miles, chief people officer; Carol Harnett, HR manager; Michelle Meyer, talent acquisition manager; Tom Sigman-Caple, manager of compensation and HR; Vanessa Lee, organizational learning manager; Carmen Gandarilla, organizational learning manager; Margaret Sullivan, benefits, compensation and compliance specialist; Paula Siefert, HR benefits and compliance generalist; and Sheree Carroll, HR administrative coordinator. — Timothy Magaw

BOYATZIS

Boyatzis that required video-based instruction.

“That was very new to me, but Rich is a natural in front of the camera from doing other online courses,” Van Oosten said. “When you work with him, you can’t help but learn something new about the topic and about yourself.

He’s a bold, innovative thinker.”

Boyatzis acted as mentor for Case professor Melvin Smith, whose expertise includes the role emotional intelligence plays in work relationships. Not only is Boyatzis a world-renowned academic named a “most influential thinker” by HR Magazine, noted Smith, but he’s able to relay those complex thoughts in an accessible manner.

“He’s an incredible individual in combining intellect while being very warm and personable,” Smith said.

“The blend of those things is what I admire most about him, and try to take away in my own work.”

Boyatzis’ research is fueled by what he deems a “leadership crisis” impacting organizations worldwide. Coaching to people’s dreams and values rather than their weaknesses can create a generation of leaders able to harness the powerful engine of change.

“Human accomplishment is amazing,” Boyatzis said. “We need to build our organizations to capture talent and engage people’s sense of hope and openness.”

CONTINUED FROM PAGE 13

Organizational psychology was Boyatzis’s next move, and he worked with Vietnam War veterans on meditation practices and ways to improve their self-control. Before becoming a professor, Boyatzis served in top-level positions for a research consulting company and a market research firm, where he further honed his ideas on leadership and organizational change.

Leading 30 years of compelling research at Case alongside a bevy of talented colleagues has Boyatzis happy in Cleveland. He’s also learned a few things in his various leadership positions, whether chairing a department, writing a book, or spearheading a research project.

“How do I capture the hearts and minds of people and create a shared sense of purpose?” Boyatzis said.

“Something that’s an emotional commitment; something that does well and does good at the same time.”

According to his colleagues at Case, Boyatzis has created a vibrant learning atmosphere within his department that’s energized staff and students alike.

Executive education faculty director Ellen Van Oosten recently shaped an online coaching course with

HR TEAM (PRIVATE) AWARD RECIPIENT

Western Reserve Hospital Managing any workforce is a complicated task, but in the ever-turbulent health care industry, that’s an even greater challenge.

The HR team at the physician-owned Western Reserve Hospital in Cuyahoga Falls hasn’t backed away from the task at hand — an attitude that starts at the top with Heather Milicevic, the hospital’s chief human resources officer. According to the nomination, Milicevic’s team treats its associates “like customers, providing top level customer service, but they treat them like family.”

“In the extremely competitive health care industry, our ability to lead the region in patient satisfaction, safety and quality surveys could not happen without having the best staff around,” Western Reserve president and CEO Dr. Robert Kent wrote in a letter supporting his team’s nomination. “Health care is personal — it is all about people, and the fact that our scores say we are the best in Northeast Ohio means we have the best people in place to serve others.

That wouldn’t happen without our

“In the extremely competitive health care industry, our ability to lead the region in patient satisfaction, safety and quality surveys could not happen without having the best staff around.”

Milicevic

— Dr. Robert Kent, Western Reserve president and CEO

dedicated Human Resources department.”

One of the team’s many successes has been in the area of expense management. As both a provider and consumer of health care for nearly 1,000 employees, the hospital has made a number of inroads this year, according to the nomination. One is through the hospital’s participation in a community-based captive health insurance company and also developing a hospital-wide wellness and health management program. Western Reserve Hospital estimates it’s saved more than $5 million over the last three years compared to a fully insured program.

“By implementing a hospital-wide wellness and health management program, WRH helps its employees understand their own health and build their own personal wellness plans to improve and/or maintain their health at an optimum level,” the nomination said. “The overall benefit to employees is better health and lower costs over time.”

“Our Human Resources team has what I believe is a one-of-a-kind ability to find — and keep — the best and brightest individuals to fill the vital roles involved in providing health care in a compassionate, respectful and people-pleasing manner,” Kent wrote. — Timothy Magaw

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2017

Need a Friend in the

ORGANIZATIONAL DEVELOPMENT FINALIST

Banking Business

Jeff Deel

Human resources director, The Austin Co.

The Middlefield Banking Company’s Bernie Dietzel has the experience.

Though its roots go back to the late 19th century, a firm like The Austin Co. — an architectural, engineering and construction firm with more than 2,000 employees — needs a 21st century plan for finding and developing talent. That’s what Jeff Deel’s been work- Deel ing on for the last decade.

The 1991 graduate of Bowling Green State University came to Austin in 2006 without a background in engineering or construction, wrote J. Brandon Davis, Austin’s vice president of operations and Cleveland general manager, in the nomination, but he caught on quickly.

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In the last five years, Deel has been a core leader behind a new, young professional recruiting and development program; implemented a massive training, development and community engagement effort; created a detailed on-boarding process for new hires to the company; and created a process improvement group of early and mid-career professionals who volunteer their time to identify and then develop potential process improvements.

“Jeff is simply an unmatched leader,” Davis wrote. “Jeff always helps keep the team focused on the devel-

ORGANIZATIONAL DEVELOPMENT FINALIST

Laura Rohde

middlefieldbank.bank • 888.801.1666

Director of human resources, Skoda Minotti

Northeast Ohio Region Offices in: Beachwood • Chardon • Cortland • Garrettsville Lake County Loan Production Office • Mantua • Middlefield • Newbury • Orwell • Solon • Twinsburg Central Ohio Region Offices in: Dublin • Sunbury • Westerville

NOMINATIONS OPEN FOR 2017 Crain’s Cleveland Business’ award and recognition programs honor those throughout the Northeast Ohio community who are excelling and thriving in their industry.

CrainsCleveland.com/Nominations

At the accounting, business and financial advisory firm Skoda Minotti, Rohde helped the firm improve what it refers to as its qualitative, or human relations side.

With a combination of intelligence, grace, forethought and drive, Rohde introduced the strategies Rohde after she joined Skoda Minotti in 2014 and won acceptance for them, according to the nomination.

One approach uses the Birkman method to evaluate the personalities and work styles of team members so they work better together. The other uses a matrix, dubbed a “nine-box method,” to evaluate staffer perfor-

mance and ability to advance within the firm.

The strategies were a big change for Skoda Minotti, which has grown quickly and innovated in many ways but continued to use traditional human resources practices.

Danielle B. Gisondo, a Skoda Minotti partner, said in the nomination Rohde geared the training to each individual’s learning style and she found them personally beneficial.

“As a result my interactions with individuals and teams are highly personalized,” Gisondo wrote, “and they are geared toward accomplishing

TOTAL REWARDS AWARD RECIPIENT

KeyBank

Congratulations, Brian Richardson and all of the Archer Award winners!

Total Rewards Statement team

The Fairmount Santrol Family is proud to have one of our own as a 2017 Archer Award winner - Brian Richardson, Executive Vice President, Chief People Officer.

KeyBank Total Rewards Statement team

We applaud your leadership, which has aided in providing the best opportunities, development and culture to our organization.

Acutely aware that employees were seldom taking advantage of — let alone are even aware of — the full suite of perks KeyBank offers them, the company sought to increase engagement with those awards through clearer messaging and targeted reports for each employee.

It’s a massive undertaking. Key delivered 15,000 “Total Rewards” statements to employees in 2016 and is on track for 19,000 this year. The statements are designed to explain programs — in areas including compensation, health and retirement, among

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other things — by cutting out jargon while providing a comprehensive snapshot of the perks from which employees can benefit.

Key estimates there are between 80100 unique versions of those rewards statements, with each focusing on specifics like benefits each employee selects. At least 25% of each statement reviews perks that were seemingly underutilized at the bank, like reminding employees about the company’s commitments to volunteerism and offering financial, personal wellness and career development in varying ways.

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ARCHER AWARDS ORGANIZATIONAL DEVELOPMENT FINALIST opment of the best talent in the industry, and creating an environment where the best talent in the industry can thrive, both at our headquarters in Cleveland as well as across six offices throughout North America and dozens of field operations.”

Austin is a subsidiary of Kajima Corp., a Tokyo-based construction firm. Austin has seven offices, with its headquarters in Mayfield Heights. Its primary markets include facilities for the aerospace and defense industries, manufacturers and distribution facilities.

“Jeff is a true business partner and has been and should be for many years an important driver behind our success as an organization,” said company president Michael Pierce.

“His passion for the team, for the development of our resources, and for driving our business and team to success are contagious and an important part of our future.” — Jay Miller

shared goals with a stronger sense of unified purpose.” She added that over time, the firm’s partners have been impressed by the impacts the changes produced in the firm’s culture and operations.

Moreover, Rohde instituted a program of internal training at Skoda Minotti. The firm calculates that cost as $283,976 less than outside training.

Rohde also organized an in-house university at Skoda Minotti, updated the way the firm welcomes new employees and led initiatives for women, diversity and inclusion.

Rohde has also worked in human resources roles in financial and legal services since launching her career in 1994 after earning a bachelor’s at Cleveland State University in marketing and finance. She holds seven certifications in personnel methods and also writes for professional journals.

— Stan Bullard

The undertaking commenced as the bank embarked on its massive acquisition of First Niagara Financial Group.

With support from the executive team, the effort to better explain and increase engagement in total rewards was necessitated by the influx of staff, many of which were in new markets, which would soon join Key in the merger.

The concept for the total reward statements was signed off by executives in May 2015. The first statements were being made available just 10 months late.

The bank is already seeing engagement in its rewards grow, and seems to be generally benefiting from a better understanding by staff of what perks the company can offer.

“Leveraging each other’s talents and business perspectives, this seasoned team of HR professionals managed to capture the underlying pulse of employees,” said director of compensation and benefits Alan Duffy.

“By providing a employees a true dashboard of their individual benefits through the statement, we’ve seen exceedingly positive inferential and substantive outcomes to date.”

In addition to Duffy, the team includes Cathy Fyffe, Debbie Summers, Kate Arzuaga, Eric Rozea and Joyce Rudy. — Jeremy Nobile

Mary Vales

Manager, organizational development, Hyland Software When Vales joined Hyland in 2014, it was already known as a cool place to work. So where would the new human resources exec make her mark?

The short answer: at the top. Vales spearheaded an effort to define what constitutes leadership at the Vales Westlake software company and define what makes staffers the superstars who move up the ranks.

As a result, Hyland managers and

their direct reports understand what it takes to become a leader at the company and where they need to improve or gain more training.

Hyland’s traditional human resources evaluation system was also replaced with a more contemporary one.

All told, the programs help keep employees “hungry” at the firm. The company also encourages a program

she championed that asks managers to take five minutes at the end of the day to reflect on what they need to work on as a way to encourage consistent behavior change and improvement at the firm. A mentor program is currently in the works.

Debbie Connelly, Hyland’s vice president of human resources, said Vales partnered with the firm’s leadership team to win support for updating its policies. “(Vales) is an authentic and transparent leader within Hyland,” Con-

nelly wrote in the nomination. “Her team is well respected and consulted on a wide variety of topics not limited to organizational development.”

Vales brought to Hyland experience in human resources at several different types of business, including PNC, Medical Mutual and Catholic Charities Services Corp. of Cleveland, where she revised personnel policies in a startup HR unit. At NYCB Mortgage Co. LLC (best known as Ohio Savings) she started in HR but wound up overseeing its residential mortgage underwriting unit.

Vales earned an MBA from Baldwin Wallace University. Her bachelor’s degree in business administration, management and labor relations is from Cleveland State University. — Stan Bullard

Congratulations Western Reserve Hospital Human Resources Department Award 2017

Recognized as a Crain’s Cleveland Business leader among Northeast Ohio human resources professionals who build companies and organizations with the best people, talent, development and culture.

Heather Milicevic Vice President and CHRO

Julia DiMatteo %HQHÀWV HRIS Administrator

Linda Alexander Secretary

Lisa Keeley Sr. HR Generalist

Judy Bishop HR Generalist

Pamela Brown HR Specialist

Jennifer Miller Manager, &RPS +506 %HQHÀWV

Christi Cole Comp/HRIS Specialist

Carolyn Mourton Payroll Program Manager

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CRAIN’S 2017

Congratulations Tim, from the workforce you helped to build.

AMETEK salutes our Crain 2017 Archer Award finalist, Tim Michalk, for his many years of HR leadership.

You’ve always been a winner for us.

ametekams.com

INNOVATION FINALIST

Heather Adamson Vice president, human resources, Area Wide Protective Inc.

“Heather tackled the difNorth Canton-based ficult task of high volume Area Wide Protective (AWP) traffic control hiring with Inc. hires traffic control the open mind of a college specialists, or flaggers, at an freshman and the grit of a incredibly high rate of 300 prize fighter” AWP presiworkers per week — a pardent and CEO John P. Sypek ticularly challenging task wrote in the nomination. given the high rate of turn“She assembled a team to over in the field. research best practices, Making this task even Adamson flexible technology, and more cumbersome is the intensive hiring and onboarding pro- performance metrics, hired a team of cess. That’s where Heather Adamson like-minded, ‘accomplish-the-miscomes in, as she was charged with sion’ professionals, and the outcome putting in place a process that could has been a recruiting and hiring platform that provides us a sustainable, handle this high volume.

She led the charge on selecting competitive advantage in the marand implementing a new applicant ketplace meeting the ever increasing tracking system and establishing a demands of our customers with process that allowed online appli- quality people.”

Also as part of this transformacants to move through the hiring process with incredible speed, the nom- tion, AWP’s orientation and hiring ination said. Also, this process was process has been shortened draimplemented over only five weeks, matically. According to the nomiallowing the company to immediate- nation, applicants who apply on ly improve its recruiting, according to Thursday are scheduled to start orientation and training the following the nomination.

Now, the background check pro- Monday.

“Given current hiring benchmarks cess, drug screen and personality assessment are integrated in the re- of 300 confirmed new employees per cruiting process to “eliminate these week, this reduction in time and extouch points” that were historically pense represents a tremendous savhandled manually, the nomination ings,” the nomination said. — Timothy Magaw said.

© 2017, by AMETEK. All rights reserved.

LEARN ARN MORE TODAY ABOUT HOW CRAIN’S CAN HELP YOU AND YOUR CONTENT MARKETING PROGRAM. Contact Amy Stoessel at 216.771.5155 or astoessel@crain.com.

INNOVATION FINALIST

Cleveland Clinic

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Given its growing footprint here and abroad, the Cleveland Clinic needed some “innovative and agile technology” that could advance and keep up with its growing global footprint, according to the nomination.

That led to the creation of a new, web-based human resource service — dubbed the One HR: Workday and Portal — that according to the Clinic “empowers caregivers” to manage their personal information in one place, from work or home, 24/7. Adding to that convenience, the Clinic also made available a mobile app where employees can access their HR information.

One HR is now a go-to portal where Clinic staff can apply for jobs, view paychecks and PTO balances, tweak benefits, view the status of their retirement accounts, among other tasks. And, of course, housing all of these abilities under one central platform was no easy task.

“Key to the successful implementation of the system was the creation of a

team selected from multiple disciplines from across the enterprise,” the nomination said. “The team members first engaged in deep dive sessions to assess the needs and resources that would be necessary to create this new system, how it would be rolled out and how thousands of caregivers would be prepared for the ‘switch to flip’ for everyone, at the same time.”

The end result, according to Linda McHugh, the Clinic’s chief human resource officer, was “revolutionary technology designed to meet the needs of an ever changing enterprise.”

“The team had to balance the needs of each division and institute as well as the needs of the HR division, which was also going through significant organizational change,” McHugh wrote in the nomination.

“Being mindful of each major HR discipline, the team tied key functions from recruiting, benefits, and absence management around a core HR experience, focused on the caregiver.” — Timothy Magaw

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ARCHER AWARDS INNOVATION FINALIST

HR EXECUTIVE OF THE YEAR FINALIST

Anna Gluck

Name

Vice president, human resources, Q Holding Co. When Anna Gluck arrived at Twinsburg-based Q Holding Co. about a year ago, she wasn’t met by a single person on the company’s existing human resources staff.

In fact, she had to ask around to find them before she was met with a Gluck stack of benefits paperwork on her desk. It didn’t take long for her to realize that much needed to be done to transform the company’s HR function from an administrative and siloed function into a more strategic and global organization, according to her nomination.

“Before she started, our organization was lacking new technology practices and implementations and now, Anna has taken our HR department to new heights,” wrote Cary Glay, the CEO of Q Holding, a global manufacturer in electrical management and life sciences spaces, in her nomination.

“She has started new implementation processes and technology programs as well as assisting on major projects,” Glay wrote. “Anna has truly taken our organization to a new professional level. She has de-

Title

fined HR in our company and has made a difference in our strategy going forward.”

One of her first orders of business was revamping the company’s talent acquisition process, making it consistent for all of Q Holding’s facilities. At the time, the organization had antiquated or nonexistent policies within its six facilities in the United States and those abroad, the nomination said. Moreover, the job descriptions were substandard, if there were any at all. Also, there were no compensation plans or rationale behind an employee’s starting pay and how raises were administered.

“Although Anna was met with resistance from many within the organization, she has shown resolve in working through many challenges on her way to developing a comprehensive and meaningful talent acquisition process,” the nomination said. “She collaborated with key stakeholders, held strategic planning sessions, kept open lines of communication, and remained open to feedback.” — Timothy Magaw

Lastname/base

Future

INNOVATION FINALIST

Meet Your^ Clients

John Corn

Crain’s 2017 event sponsorships are limited. To reap the benefits of the ultimate in-person marketing opportunity, contact Nicole Mastrangelo at 216-771-5158 or nmastrangelo@crain.com.

Human resources manager, training and development, Northeast Ohio Regional Sewer District John Corn faced a daunting reality when he was hired by the Northeast Ohio Regional Sewer District more than three years ago: The district was poised to lose a third of its workforce to retirement over the next three to five years.

“If ignored, we would Corn find ourselves without properly trained workers for very critical positions to operate our three plants,” wrote NEORSD human resources director Angela G. Smith in the nomination. “John has been instrumental in creating cutting edge measures and efficient training programs to address this extremely critical reality.”

As such, Corn developed an internal training program that will allow the sewer district to grow its own internal employees into higher-paying critical positions.

According to the nomination, he essentially created a “grow-yourown program for internal candidates (and) the beauty of the program is that they receive thousands of hours of customized training free.”

The nomination said the state has reviewed the program and may certify it as an apprenticeship program.

Also, Corn developed and launched an “M3” training process

for newly hired craft-trade persons, shrinking and closing skills gaps within a year of hiring for six graduates. That program enabled them to be “more productive and efficient in less time,” according to the nomination.

The district also dispatched “tiger teams” of current trainees to all of the various plants to correct outstanding repair work and maintenance that would have been completed by consultants.

Corn transformed an abandoned facility into a training center that would provide training opportunities to more than 30 wastewater plant operators, according to the nomination.

The wastewater licensing pass rate increased to 89%, up from 29% the previous year, according to the nomination.

“John’s work ensures that diverse candidates from across the District are being provided with the opportunity to receive training that makes them eligible to receive even higher paying positions,” the nomination said. “They are more likely to be better engaged and retained as employees at the District as opposed to working for our competitors or colleagues.” —Timothy Magaw

Congratulations Safeguard Properties congratulates Assistant Vice President of Human Capital Jennifer Anspach for being named an HR Executive of the Year finalist for the Crain’s Cleveland Business Archer Awards.

As a key member of the management team at Safeguard, Jennifer has made a huge impact on the company as a strategic leader in the human resources department. She is focused on the needs of the company’s associates and their work-life balance through the

Jennifer Anspach

HR EXECUTIVE OF THE YEAR FINALIST

implementation of innovative initiatives.

Jennifer exemplifies what it means to be a successful human resources executive. Thank you, Jennifer.

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CRAIN’S 2017

Giving the C-suite top billing at Crain’s gala This year, Crain’s Cleveland Business is honoring Northeast Ohio’s executives in one unified program that celebrates the entire C-Suite.

From general counsel all the way up to the CEO, it takes an entire team to steer a successful enterprise. After all, a company is only as strong as its top leaders.

Finalists and winners will be honored at a gala in December. They will also be profiled in the Nov. 6 and Nov. 27 issues. Winners will be selected by independent panels of judges.

We now are accepting nominations, which are due Aug. 31, for individuals from both the for-profit and nonprofit realms in the following roles: J CEO J Chief operating officer J Chief financial officer J Chief information officer J Chief marketing officer J General counsel J Chairperson J Director/trustee Nominations can be submitted at www.crainscleveland.com/section/ nominate.

Human resources professionals are honored separately through the Archer Awards program.

Please refer nomination questions to Megan Lemke at 216-771-5182 or mlemke@crain.com. If you are interested in sponsorship opportunities, contact Nicole Mastrangelo at 216771-5158 or nmastrangelo@crain. com.

ARCHER AWARDS

RISING STAR FINALIST

Anna Cozzone

Executive compensation manager, KeyBank Through her time at KeyBank, Anna Cozzone has distinguished herself among executives, peers and others in the wider banking industry.

As executive compensation manager, she leads a small team for her own, but regularly works with direc- Cozzone tors and financial regulators — either of which could be a naturally stressful dynamic — and her behavior at the company has been demonstrably modeled by various

program leaders and participants in their programs, according to her nomination.

Those are some impressive accolades for a professional who joined Key out of college just eight years ago, earning a reputation as a leader with the gumption to take on nearly any project that comes her way. Cozzone, among other things, is credited with establishing the bank’s HR Employee Engagement Team, which she co-

leads today, and harnesses a lead role with the KeyBank Young Professional Networking Group.

Yet, it’s her work representing Key within the wider banking industry that deserves at least equal praise. A relatively young resource for the bank, Cozzone represents Key at the Large Banking Organization Compensation Roundtable, a group that features 17 of the country’s largest banks where members discuss best practices in the HR world. She has become an authority there for topics ranging from engaging and retaining

millennial employees to steering educational and philanthropic opportunities to better understanding the millennial segment as clients.

What’s more, her work on incentive compensation was one of many key elements that helped the bank secure its acquisition of First Niagara Financial Group in 2016, the largest bank acquisition since the financial crisis.

“Outside of the technical space, Anna has demonstrated the flexibility to balance a variety of managerial roles from interns and rotational analysts, to junior and more seasoned analysts,” said Key senior human resources executive Kate Terrell. “Although her teams have been small, her influence has been large.” — Jeremy Nobile

RISING STAR FINALIST

Akeem Perry

Chief training officer, department of public utilities, city of Cleveland Cleveland’s public utilities department used to be plagued by personnel and technical snags that led to service and billing problems.

Under Mayor Frank Jackson, new management and new technologies have been installed and the department is being transformed Perry with new leadership and new, automated systems. Wait times on customer calls have been reduced, bills are delivered more accurately and timely and collection rates have

improved.

Akeem Perry, now the department’s chief training officer, has been an integral part of that improvement.

He has designed internal training courses and trained employees on new customer care and billing systems, according to the nomination. Perry also created and implemented training modules for current employees and new hires in new automated meter reading technologies.

“Mr. Perry’s tenacity and intellect have brought a sense of organizational structure to the training department,” wrote Hernando Harge, the department’s chief of human resources, in the nomination. Harge added that Perry’s knowledge of adult learning and expertise in internal systems have been “a huge advantage to our entire office.”

Perry is a graduate of Notre Dame College in South Euclid, earning both a bachelor of arts degree in 2009 and a master’s in education in 2014. He joined the city’s water division, a unit

of the public utilities department, in 2012 as a billing services supervisor.

He was promoted first to labor relations officer and then to talent development specialist before being named chief training officer in December 2016, supervising a team of talent development specialists and scheduling all internal training. In addition, he engages employees in health and wellness initiatives and “Lunch and Learn” sessions designed to promote personal and financial well-being.

“As the manager of training and employee programs it has been an honor to work with and mentor Akeem,” wrote Denise McCray, manager of training and employee programs, in the nomination. “I have watched his progress and, as his manager, have great expectations for his future.” — Jay Miller

RISING STAR FINALIST

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Director of human resources, Dwellworks LLC While all professionals in human resources should be inherently conscientious of their employees, Jessica Shook has sown such a connection with staff she’s become known as the “office therapist.”

It’s an endearing title that speaks to Shook’s character Shook as much as her impacts at Dwellworks speak for themselves.

In just five years at the relocation services company, Shook has been promoted three times to become director of human resources.

Beyond developing current inhouse recruiting procedures for the firm’s bevy of global offices, Shook developed Dwellworks’ internship and mentorship programs, which have earned accolades on eight different occasions by the Northeast Ohio Council on Higher Education.

In a natural extension of those efforts, Shook leads four internal employee-led committees and four volunteer programs in the Greater Cleveland area.

Global recruitment efforts were improved with Shook’s help overseeing development of the human re-

sources information technology system, which basically analyzes internal data. That work is directly attributed to helping Dwellworks recruit 55 new employees and 16 interns across their global offices in 2016. And ongoing collaboration with the firm’s social media and marketing teams is building additional momentum for hires this year.

Outside the office, Shook aims to help others as well. She’s a volunteer counselor for Crisis Text Line, meets weekly with a Nepalese refugee family to help them assimilate to life in the United States and brings her certified therapy to nursing homes. According to her nomination, Shook considers her career a hobby, not a job, which is likely why she injects a personal feel into her work that has earned her the “utmost respect from both associates and leaders.”

"She truly cares about our employees and is willing to go above and beyond to provide a positive experience for all,” said human resources vice president Shana Zollar in the nomination. — Jeremy Nobile

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S2 August 7, 2017

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PRESIDENT’S LETTER

ASKING TOUGH QUESTIONS SHAPES CULTURE, FOSTERS COMMITMENT

By PAT PERRY

B

ack in first grade, when my teacher, Mrs. Vleck, asked a tough question, my classmates and I would routinely bow our heads and attempt to avoid eye contact with her. Evidently, we were of the belief that if we looked busy, staring down at whatever was on our desk, we would not be called upon for an answer. I assume that Mrs. Vleck must have really been amused when this occurred.

Fast forward 40-plus years. I now find it interesting that this same phenomena is played out among some executive teams during management retreats we facilitate. For the dialogue to have a chance at being successful, we encourage the CEO to not participate

in the conversation. In addition, we ask that all laptops, smart phones and any other distractions be “left at the door.”

Consider taking a different approach at your next management get-together, just for once.

When critical questions about workplace core values, beliefs, strategies and game plans are asked, heads go down. During these awkward Perry moments of silence, the only executive with their head upright is the CEO, sitting there dismayed, typically with arms crossed looking around the room for one of his/her leaders to participate in the discussion. While the CEO is seeking thought leadership, his/her ex-

ecutive team members are all hoping that the CEO will answer the “tough” questions. This reaction is reminiscent of how our first-grade class hoped Mrs. Vleck would give up on us and provide the class the answer.

We see this all too often with executive teams. It suggests underlying issues related to communication, intimidation, shared beliefs and/or leadership. More importantly, the fact that the team does not answer implies that some of these questions have never been raised, discussed nor answered with conviction or commitment.

Questions like expanding a service, buying versus leasing, product development and/or branding are pretty straightforward and much easier to answer than strategic workplace inqui-

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YOUR TRAINING PARTNER We believe it is your organization’s people who generate your competitive edge. The investment in your employees’ learning and development is essential in supporting your growth and success.

ries. This is pretty scary when you consider that the workplace environment, philosophies and strategies should drive everything in the organization.

Amazingly, these areas are seldom explored, dissected and pursued.

So, at your next management retreat, try asking your executive team a few of these questions: n Are

we committed to only hiring and keeping top performers? If so, how are we implementing this strategy? n Do we have the right work environment to hire and retain top people? If so, how do we know? n How do we define a top performer? n Are we committed to becoming one of the top places to work in the area?

Why or why not? n Is HR a key member of our executive team and one of the drivers of our organization’s success? If not, why not? n What is our philosophy on employee compensation, and why? n Do we treat our employees like adults or like children? n Why do we have a probationary period for new employees? n When is the last time any of us thoroughly reviewed our employee handbook and general workplace policies? Are they consistent with our beliefs and organizational core beliefs, values and strategies? n Do we trust all or some of our em-

»

SEE PAGES 6-7

ployees? And, why retain employees we don’t trust? n How would our nonmanagement employees describe our executive team? n If HR does not report directly to the CEO, why not? n How do we define organization success?

These are a sampling of questions that can provide terrific dialogue and insight into your executive team’s mindset, organizational understanding and individual beliefs. The answers can set the foundation of your workplace game plan and strategy. You’ll glean additional insight through the editorial analysis of our “2017 Workplace Practices Survey,” published in this issue of Crain’s Cleveland Business.

So at your next management get together, ask some of the tough workplace-related questions. I think you will be amazed at what gets discussed and concluded. If done right, the true character of your organization will emerge. That could be a good or bad thing. But at least you’ll know.

Most importantly, when the tough questions get asked, don’t hide from the answers. Mrs. Vleck would be proud of you.

Pat Perry is the president of ERC, a provider of human resources, training, consulting and coaching services. Contact him at 440-6849700 or pperry@yourERC.com.

for an analysis of this year’s ERC Workplace Practices Survey.

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A multigenerational workforce is changing the benefits landscape Employers should re-evaluate programs to attract, retain talent

By GREG HUBBELL

W

e are just a few short years from having a workforce composed of five separate generations — traditionalists, baby boomers, Gen X, Gen Y/millennials and Gen Z/ centennials. And guess what? There are profound differences between these generations in their approach to worklife balance, benefits, use of technology and communication. How employers react to these factors may influence whether a company succeeds or fails, or attracts and retains the right talent.

As if remaining relevant, competitive and above all else, profitable isn’t challenging enough, now more than ever, employers must work hard to strike the right balance between the benefits to offer, how they are offered and the perceived or inherent value to the millennial as well as the traditionalist and everyone in between.

If that balance is ignored, there will be workforce issues.

According to the 2017 Aon Health Survey results, when asked what are the top three outcomes employers would like to achieve in 20172018 through their Hubbell health and benefit strategy, 72% of respondents listed meeting cost/budget targets and offering competitive benefits that meet the needs of an increasingly diverse workforce, while 67% responded with improving employee health and well-being.

Keeping cost targets and agediversity in mind, employers must focus on what it will take to improve health and well-being within the workforce. The healthier a workforce, the more productive it is. Improved productivity is a key benchmark to better earnings and company profit.

The definition of well-being is expanding so that it now encompasses physical, emotional, financial and social health.

According to Aon’s recently released 2016 Consumer Mindset Study, consumers are thinking more broadly and deeply about their health. The concept of total well-being resonates with consumers, with emotional (mental) well-being ranked as the most important attribute.

And it doesn’t end there. The emergence of the Gen X, Y and Z is pushing employers to reconsider how benefits are communicated and offered. Technology is driving change, which provides a better employee experience when it comes to an employer’s benefit offering.

Consumers expect employers to

communicate health plan choices through a variety of deliveries. They increasingly expect to digest health communication like the information they consume from the public media. They want it quick, simple and personalized. The bottom line: consumers know they’re being asked to do more with less. They often have fewer health plan options, and their costs are rising. They expect their employers to provide useful resources to help with decision-making.

Communicating with employees is complicated. As plans and programs evolve, employees may find them con-

fusing because what they really want are simple solutions that are easy to understand and use. That’s a tricky situation in the complicated world of benefits.

Employee benefits firms can help employers navigate these complexities by developing practical actions that guide employees through retirement plans, health choices and beyond. Here are three examples:

We understand the changing human resource landscape

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• Employee Handbooks • Job Descriptions • Operating Procedures • Employee Communication • Performance Concerns

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1

SHAPE THE BIGGER PICTURE

A strictly physical and financial benefits focus is outdated. Employees

Call or email to find out how we can help meet your HR needs, Robin Carlin, Principal, 216.650.0220 or robin.carlin@rustbelthr.com

are also asking for guidance in their emotional and social well-being.

Expand your horizons. Provide support programs and incentives, and equip managers to advocate for work-life balance so employees feel safe taking care of their emotional health needs.

2

MAX OUT THEIR SENSES

Whether the well-being experience is in person or virtual, engage as many of the senses as possible. Foster connectedness and engagement with podcasts, social networks, online

chats with leadership and local group events. Don’t forget to reach the whole family by sending fun, engaging print communications home.

3

REMEMBER YOUR AUDIENCE

Are they 25, 45, 65 or older?

Prepare your benefit programs and communication means accordingly.

Gregory M. Hubbell is senior vice president of Aon Health & Benefits.

Contact him at 216-623-4126 or gregory.hubbell@aon.com.

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Stock your communications toolbox A multifaceted approach sets up employees for success

By HAROLD G. HARRISON

T

he goal of any internal communication strategy is to inform employees of your organization’s mission, core values and strategic goals. Communicating to an expansive organization composed of diverse roles can be challenging, but with flexible mediums, timely delivery, and thoughtful content, you can ensure that employees are not only informed, but also connected and engaged.

When employees are aligned with an organization’s mission, they are empowered to build a successful career and become brand ambassadors.

Employee orientations help convey these benefits by educating staff on the organization’s overall values and goals, and how they can contribute.

Involve members of your chief executive staff and employees across your network to communicate that mission. This approach shows how the organization’s message resonates among employees in different depart-

“

When employees are aligned with an organization’s mission, they are empowered to build a successful career and become brand ambassadors.”

ments. Be sure that your orientation presenters are employees across a variety of roles so that new employees are able to build connections with peers they may not see on a daily basis. Once employees complete this in-depth orientation process, they should step into their position Harrison with a clear understanding of your organization and how they fit into it.

Technology provides innovative ways to enhance your organization’s interpersonal communication.

While it may be impossible to deliver an in-person message to all

staff at the same time, video messages disseminate important communication in a timely manner. With a monthly video, leaders of your departments can share high-level messages, important updates and other news within the organization. The shorter the video, the better. A two- to threeminute video communicates important messages and respects employees’ time. Mobile-friendly videos reach staff whether they’re at their desk, traveling or working in the field. They not only keep employees informed, but offer transparency and connection to the organization.

An intranet system is another effective way to incorporate

technology into your communication strategy. This database of information enables employees to stay up to date on important announcements, register for necessary training and access vital documents. The intranet will also save your employees’ in-boxes from being inundated with all-staff emails.

Departments should manage their own pages so that employees can quickly access information pertinent to their role. Use your homepage for broad communication messages. Be sure that your site is ADA-accessible and mobile friendly.

While technology affords ways to enhance interpersonal connections, face-to-face interactions are a powerful communication tool.

Localized seminars connect staff and executive leadership. When possible, your executive team can travel to work stations throughout your organization and allow employees the ability to not only hear from leadership, but share their own feedback and knowledge.

Transparent dialogue provides deeper connections between employees and leadership.

Employee recognition programs

also foster ongoing companywide communications and provide employee validation and motivate both recipients and their peers.

Be sure recognition programs are inclusive and not competitive.

Whether you are having frequent one-on-one meetings with your staff, delivering a thank-you message when warranted, or participating in an organized award system, recognition promotes purpose.

Communication is a part of culture.

How you deliver the message of your mission, values and goals is a reflection of your organization. Staff members can build a successful career when they are connected with the organization for which they work.

With effective tools, you can ensure that your employees are engaged on every level with your mission and empowered to represent and advocate for your organization internally and externally.

Harold G. Harrison is chief human resources officer at Cleveland Metroparks. Contact him at hgh@clevelandmetroparks.com.

YOU NEED THE RIGHT PEOPLE TO SUCCEED We believe in people and their amazing potential. We work hard to connect great people with great organizations where they can succeed and thrive. Whether you’re seeking new hires or contract support, you’ve come to the right place.

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Aerotek is an equal opportunity employer. An Allegis Group Company. ©2017

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Drive deeper value through total reward strategies

By KYLE ANTHONY

A

s a business owner or executive, you understand the cost and value of the benefits you offer employees. You know the challenge of balancing escalating costs with employee demands as you navigate the talent war.

Do your employees understand and appreciate the rewards they receive in exchange for being a part of your organization? Perhaps more importantly, do they know your organization’s total reward strategy and value exchange?

With the average employer investing 32% of its total compensation on rewards other than direct compensation, ensuring employees value their total compensation has become a business critical objective.

Total rewards packages encompass more than the traditional tangible benefits such as insurance coverage and paid time off. Rewards also include “soft” benefits such as flexible work arrangements, dependent care, employee assistance programs, tuition reimbursement, wellness incentives, retirement planning services and oth-

ers. It takes more than a balance sheet to recognize the impact your total rewards package has on your business and your employees.

The companies that best leverage total rewards rely on a 360-degree view of their employee population and benefits usage. They Anthony spot emerging trends and create unique solutions to offer the right mix of traditional and nontraditional rewards in ways that make financial sense.

It’s worthwhile to use data-rich tools to contrast and compare your benefits packages with others in your industry, geography and with similar workforce populations.

But that’s not enough to drive the value proposition for your employees.

Ensuring that they understand and appreciate the total rewards you offer requires ongoing effort.

Strategically communicating the value of total rewards shouldn’t stop with a new hire or occur only during benefits enrollment periods. Savvy employers keep total rewards top of mind for

employees by delivering well-managed communication campaigns through every channel employees access.

While benefits design is critical to financial success, touting total value can engage your employees. They become more loyal, more productive, and your company becomes a great place to work and grow.

Kyle Anthony is director of Strategic Accounts and the Human Capital Practice at Oswald Cos. He can be reached at 216-487-7408 or kanthony@oswaldcompanies.com.

Key ways to improve team dynamics in negotiations

By ROBIN J. CARLIN

A

t some point in our career, we have been part of a team negotiating an outcome — whether a labor union contract, acquisition, large equipment purchase, real estate deal or a complex work agreement, to name a few.

Your team most likely represented different departments, skill sets or job functions and, without a doubt, different points of view. Most took

different paths to get to their positions.

How did you lead your team to get the best outcome for your employer or client? Were you faced with challenges, team harmony or dysfunction during the process?

There are three critical components to improving team dynamics in negotiations: BUILD AND ALIGN A STRONG TEAM. Explain how each person has an important role. Highlight their strengths. Share information and seek

input when developing proposals.

Clarify team goals and work to build team unity through a shared strategy.

EDUCATE YOUR TEAM. What can they realistically expect in the process? Know the right behaviors and share how patience and active listening Carlin can go a long way. Encourage your team to ask for clarification — this will prevent misunderstandings later.

Never negotiate against yourself. Role playing is good preparation.

BE READY TO MANAGE EGOS AND EMOTIONS. Have a plan for handling disagreements, problemsolving, making decisions and communicating in and out of negotiations. How will you handle a key absence? Do you reschedule or move forward with discussions, and is your team on board with this decision?

There also will come a time that you will have to address an unpredictable

behavior, improper body language or a negative response.

By building and aligning your team, educating them in the process, and having a plan for managing egos and emotions, you will undoubtedly improve the dynamics of your team in negotiations.

Robin J. Carlin is owner and principal of Rustbelt HR. Contact her at 216-650-0220 or robin.carlin@ rustbelthr.com.

Lawyers who are intuitive

Chapman and Chapman Chapman and Chapman is a 5th generation, family-owned advisory practice focused in the employee benefits and financial services industries. The Chapman family has been providing insurance and employee benefit services to corporate and individual clients for over 130 years. We distinguish ourselves by the strength and depth of our service model, which we believe to be unmatched by any area firms. As a member of NFP Benefits Partners, a national corporate benefits organization of more than 180 offices across the country, we have access to greater solutions, greater insight and greater support.

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INTUITIVE

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Chapman and Chapman, Inc. is a member firm of BenefitsPartners.

Kestra IS and Kestra AS are not affiliated with Chapman and Chapman, Inc. or BenefitsPartners.

Copyright © 2017 Chapman and Chapman, Inc. All rights reserved.

Cleveland | 216.781.1212 | walterhav.com

If this is your definition of the type of attorney you want working for you, give us a call.

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S6 August 7, 2017

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Automation a harbinger of new talent investment

By MARY ST. CYR and PAUL LIPINSKI

causing anxiety in the workforce. According to KPMG’s recently released “U.S. CEO Outlook 2017,” 61% of CEOs who responded say they are concerned about integrating cognitive processes and artificial intelligence.

But listen to any CEO discuss the use of artificial intelligence, St. Cyr machine learning and cognitive computing in their organization, and it’s clear that the question of talent management is far more important than the technology behind these new capabilities.

To help address this challenge, CEOs say they expect to add headcount in the next three years to deal with emerging cognitive technology. These technologies will have the greatest impact on hiring middle and senior

W

ill machine learning replace some of your workforce?

Despite the perceived bleak views of the rising role of cognitive automation and robotics in the workplace, automation addresses business demands and a driven workforce, and could not be occurring at a better time.

“Aging workforces, millennial expectations, market disruptors, changing business models and new skill sets are creating the perfect storm for finding, developing and keeping people with the skills and ability to create competitive advantage,” says Paul Lipinski, principal of Advisory, People and Change at KPMG. The advent of the cognitive era is not causing massive redundancies, but it is

management, research and development and human resources personnel.

Some jobs will disappear, but others will be created. This is always the case with business model changes. The paralegal profession, for example, once feared that automation and the ability Lipinski to search vast databases of legal case history would eliminate the need for paralegals, says Constance Hunter, chief economist at KPMG. “Instead, we’ve actually seen a surge in paralegal demand because better analytical tools and data created an increase in demand for more robust evidence,” she says.

Paralegal employment has grown by 15% since 2007. The Bureau of Labor Statistics predicts it will

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grow by 6.8% over the next decade, compared to a growth rate of 4% for overall employment since 2007 and 6.5% over the next decade.

Meanwhile, 80% of CEOs are increasing budgets for recruiting, according to the study. As new businesses and offerings are developed, people will be needed to build, lead, maintain and market them. It will be incumbent on these organizations to grow their agility — and the agility of their workforce — to take on these new challenges.

It is nothing less than a call to arms for the leaders of enterprises and human resources functions alike to take principled and proactive stands.

Lipinski encourages organizations to be proactive in having conversations with employees around cognitive automation. Rather than be reactionary first responders, they should lead the conversation and preempt, understand and manage the changes. Very few skilled jobs can be replaced completely by automation, but many can be greatly enhanced with cognitive capabilities.

In an environment of constant disruption, learning will likely be a feature of work in the future — learning both for the known future needs and to position for unknown and emergent needs. Indeed, six out of 10 companies plan to invest in workforce training over the next three years, according to the study.

We need to infuse cognitive capabilities to create the greatest impact. Most of these systems require training by the humans who do these jobs now. We also will need to rewrite the job descriptions for those positions that change dramatically.

Many organizations already are automating back-office functions in finance and accounting, which frees up those professionals to play a more strategic role in assisting managers and operational managers with real-time problem solving and “what-if” scenarios.

Technology may be driving transformation, but succeeding in the cognitive era requires a coherent strategy, enlightened workforce and talent strategies and an understanding of how an organization can create value. It’s not just technology — it’s about people and values and the ability to create an organization that can adapt to accelerating change.

“The reduced talent supply is a costly challenge for most organizations and, at the same time, cognitive technologies are becoming smarter and easier to integrate,” says Mary St. Cyr, managing director of Advisory, People and Change at KPMG. “It’s no surprise digital labor has surfaced to the top of the CEO agenda.”

Ultimately, integrating digital labor creates new opportunities for innovation and agility. These technologies empower organizations to conceive new products and services, which are only limited by the scope of one’s imagination.

Mary St. Cyr is a member of KPMG Cleveland’s People & Change practice. Contact her at 216875-8168 or mstcyr@kpmg.com.

Paul Lipinski leads the Talent Management and Organizational Design for Performance practices at KPMG LLP. Contact him at 321-720-3873 or plipinski@kpmg.com.

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August 7, 2017 S7

Is high employee turnover hurting your company’s bottom line?

Develop team-based activities that engage all employees

By ROBERT J. PETERSON

T

he average annual turnover rate for all occupations nationwide was 16.7% in 2015, according to the U.S. Bureau of Labor Statistics.

Experts estimate the cost of turnover for nonexempt employees can be up to 50% of their annual salary and climbing as high as 150% for exempt employees.

Causes of frequent turnover include supervisors lacking management skills; Peterson lack of professional development opportunities; no clear path for employees to advance their careers; and a toxic work environment.

Employee solutions to battle these key issues affecting high employee

“

In today’s changing work environment, teamwork and collaboration are critical elements to achieving your organization’s goals.”

turnover include training in: leadership; organizational development; corporate team building; quality and business process management; technical training; project management; and soft-skills training. By investing in employee training, your organization and its employees will see greater retention and professional growth. Your bottom line and productivity will improve.

First, figure out problems by diagnosing your current level of team

effectiveness and honing in on your team’s strengths and development areas. It may be a challenge to tackle every problem at once. There are simple solutions that any organization can act upon to improve teamwork immediately.

Get to know each other to work better as a team. In today’s changing work environment, teamwork and collaboration are critical elements to achieving your organization’s goals.

Improve effectiveness at all stages

of team development, whether you have a new team or an existing team that is struggling, through activities to enhance communication, problemsolving, creative thinking and business results. For example, get your employees at all levels to take up a cause and volunteer as a group, or host a fun competition for teams of employees (cooking challenges are always a big hit).

Communicate effectively. The best leaders have learned that effective communication is as much about listening to others as the words they speak. Make sure your leaders practice this and do it.

The importance of the exchange of information in the workplace makes

»

SEE PAGES 6-7

Robert J. Peterson is president and CEO of Corporate College, A Division of Cuyahoga Community College.

Contact him at 216-987-2836 or robert.peterson@tri-c.edu.

to find out how employers are handling these and other issues, and for an analysis of this year’s ERC Workplace Practices Survey.

Plan your next corporate event at

Visit clevelandmetroparks.com/rentals or call 216-635-3304 ©Cleveland Metroparks Zoo is a registered trademark of Cleveland Metropolitan Park District. #47748/6/2017

effective communication skills a critical business tool and an essential employee attribute.

Embrace change. Change happens all around us — at home, in our communities and at work. The only constant of change is that it is unavoidable. Anxiety over the unknown, changes in roles and responsibility and/ or processes can result in unhappy, unproductive and stressed-out employees. Embracing change is easier when we know what changes may be and why they might happen. To overcome barriers to change, develop a plan to keep employees updated on possible changes so it becomes easier for them to embrace change.

Ideally, a comprehensive strategy to solve employee turnover is the best strategy and worth the investment.

HRGUIDEBOOK

S8 August 7, 2017

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Virtual world’s real effects at work

By SHANNON M. BYRNE, ESQ., and JOHANNA FABRIZIO PARKER, ESQ.

W

ith the ever-expanding popularity of social media and online employer review sites, the virtual world directly impacts the work environment — for both employers and employees.

A TREASURE TROVE OF INFORMATION — DO YOU LOOK INSIDE? Now that nearly all applicants maintain some social media presence, employers easily can conduct background research, and in doing so, learn information about the applicant’s age, religion or race — information that the employer would have no other reason to know.

Before conducting such an investigation, an employer should first confirm there is no law prohibiting or limiting social media review. (For example, the Fair Credit Reporting Act

applies to consumer reports compiled by a consumer reporting agency).

Then, to minimize risk, an employer could: designate an individual without authority to make a hiring decision as

n

the person authorized to conduct social media searches and create a summary of relevant findings without any mention of an applicant’s protected characteristics; n reinforce to both individual(s) conducting the search and those

making the hiring decision that protected characteristics should not be considered when deciding whether to make a job offer; and n document the reasons for all hiring decisions.

WILL YOU ACCEPT MY FRIEND REQUEST? Much like the challenges posed by using information obtained through social media in hiring, employers whose managers follow or friend

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employees on social media create additional ways of getting more personal information about the employee. If the employee is later terminated or disciplined, he could claim the employment decision was made based on this kind of information learned through social media.

If an employer does not take action for a known policy infraction apparent on social media, that too could create potential issues. And, if a supervisor only accepts invitations from certain subordinate employ- Byrne ees, this could breed sentiments of alleged discrimination or even just favoritism.

When considering whether to take disciplinary action based on information obtained Parker on social media, employers should: analyze whether the posting is protected (for example, is the employee complaining about treatment or safety?); n determine if the posting is so outrageous and/or disparaging that it loses any potential protection; and n take disciplinary action that is consistent with past practices of the company.

should be evaluated and addressed in the same way as any other anonymous complaint, such as a complaint made to an employee hotline. If the employer does not have such a procedure, consider using a response post to encourage the complaining party to come forward.

CAN’T I JUST HAVE A POLICY FORBIDDING ALL THIS? Employers can regulate social media by implementing policies, but

need to be aware of the National Labor Relations Act, which generally protects employees’ collective discussions about wages, hours and conditions of employment. This includes discussions on social media and can apply to nonunion and union employers alike.

Under the previous administration, the National Labor Relations Board had taken a particular interest in social media claims. Employers who disciplined an employee in response to posting critical comments were found

August 7, 2017 S9

to violate employees’ NLRA rights.

Recent case law is beginning to distinguish employer review sites (such as Vault or Indeed) from traditional social media sites (such as Facebook) where users “talk” with each other. (See IXL Learning, Inc., Case No. 20-CA153625, 2016 NLRB LEXIS 306, Apr. 28, 2016). A post may not be protected concerted activity if it was not a group discussion like a post on Facebook.

Employers should review their policies — and how they are

implemented — to be in line with this evolving trend.

Shannon M. Byrne is an associate of the Labor & Employment Practice Group at Benesch.

Contact her at 216-363-4578 or sbyrne@beneschlaw.com. Johanna Fabrizio Parker is partner and vice chair of the Labor & Employment Practice Group at Benesch.

Contact her at 216-363-4585 or JParker@beneschlaw.com.

n

Managers should be reminded that if they have information about a complaint or issue at work learned through social media, they need to report it to the designated individual or individuals, just as if they had witnessed “IRL.” And all employees should be aware that people are watching. Just recently, Yale University announced that a dean had left her position following her posting on Yelp Elite regarding patrons of a movie theater. A studentrun newspaper reported on the post.

(See Hayley Miller: “Yale Dean Who Called People ‘White Trash’ and ‘Low Class’ on Yelp Leaves Position, at huffingtonpost.com/entry/ yale-dean-june-chu-yelp-resigns_ us_594a547ee4b0177d0b8ab4a0.)

HE

AL TH

YS MIL M E E S = H A P PY

Y O PL

S E E

BUT HE CRITICIZED ME PUBLICLY? An increasing number of employees are now online talking about work, including complaining about mistreatment or just about managers in general. If an employer takes action against that employee, this too could lead to potential claims.

For example, the U.S. Equal Employment Opportunity Commission recently filed a complaint against an employer on behalf of a transgender employee who posted a negative review on an employer review site and was subsequently fired. (EEOC v.

IXL Learning, Inc., Case No. 17-2979, N.D. Cal. filed May 24, 2017). And, even if no adverse action is taken, does such a posting require action by the employer? How do you address an anonymous complaint?

Online anonymous complaints

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Employee engagement eludes many who seek it Focus on more than a survey score

By ANGELA CRAWFORD

W

ith unemployment low, and turnover rising, understanding employee engagement is critical in today’s workplace. Retaining employees has real financial benefits and risks — recruiting and training costs for one employee averages more than 30% of her yearly salary.

Companies cannot afford to lose their most valuable resource — humans.

Conducting employee research can help companies understand why employees are engaged or disengaged and build a more powerful brand. Done

correctly, employee survey research uncovers actionable insights and drives retention rates with real financial benefits. Failing to provide employees with such an outlet, or conducting the research without expertise in this area, can backfire and foster a more elevated level of distrust between the organization and employees.

Although many firms are using employee surveys, a few common mistakes can limit the effectiveness: 1. FOCUSING TOO MUCH ON DRIVING SCORES. Many organizations track year-over-year departmental

engagement results, and some even use the information for evaluations or awards. Unfortunately, this myopic focus on the numbers often has unintended negative consequences, as managers place undue pressure on employees to respond positively, invalidatCrawford ing results, and breeding resentment among employees.

2. COLLECTING THE DATA INTERNALLY WITHOUT CONTROLS FOR ANONYMITY. Employees know that every organization tracks their IP address, and so no matter how many times you promise the survey will be

anonymous, if the company is collecting the data directly, someone internally knows their name. A third party research provider can help ease this perception. However, organizations must also commit to protecting employee confidentiality by focusing on key trends versus individual responses.

3. FOCUSING ON THE NEGATIVE. Many employers misunderstand the purpose of employee-focused research and believe the main goal is to compile lists of problems. The most effective employee research includes both qualitative and quantitative research methods, brought together in a way equally highlighting areas of success and improvement, along with generating innovative ideas. Inte-

grating what is going well, along with improvements, allows organizations to capture the true voice of the employee and discover ideas that drive growth.

By focusing on more than the score, ensuring confidentiality and expanding a focus on the positive, we learn insight from employees that will strengthen brands. Standard survey questions give you percentages to track, but designing research to learn from employees provides you with insight that can transform your organization now and prepare you well into the future.

Angela C. Crawford is chief marketing officer at Direct Opinions. Contact her at 513-702-2237 or ACrawford@ directopinions.com.

A safe workplace creates a healthier bottom line

By SCOTT BICKSLER

M

ost employers understand the value of providing a safe and secure environment for their workers. Employers who invest in workplace safety and health can expect to reduce fatalities, injuries and illnesses, according to the U.S. Department of Labor.

Creating a safe work environment

also results in cost savings in a variety of areas, such as lowering workers’ compensation costs and medical expenses, avoiding Occupational Safety and Health Administration penalties, and reducing costs to train replacement employees and conduct accident investigations.

For employers, it’s a win-win because changes made to improve workplace safety and health significantly improve

their organization’s productivity and financial performance. A safer work environment may lead to lower insurance costs.

They’ll also build a reputation as a desirable workplace.

Although manufacturing or industrial sites most often come to mind when discussing workplace safety, OSHA regulations include every job site. While the danger may not come

from heavy equipment or electrical circuits, the risk is real even in an office environment.

Workplace violence and emergency evacuation procedures ensure that office workers are prepared to handle unforeseen incidents Bicksler such as tornados. But some companies seem to be missing the mark — OSHA conducted 31,948 federal inspections in fiscal year 2016.

“It’s easy to say your firm cares about safety,” according to “Reaching the Highest Standard of Temporary Worker Safety,” a 2017 article in Staffing Success Magazine. But some employers find that developing and implementing a healthy workplace strategy can be difficult.

— Katheryn Robinson Director of Human Resources, Impact Products

New Heights

With some of the highest customer satisfaction ratings in our industry Nesco Resource isn’t just another choice in staffing...it’s the smart choice.

nescoresource.com

Scott Bicksler is lead safety manager at Aerotek. Contact him at 951-9026345 or sbicksle@aerotek.com.

Reach

“Our representatives are quick to respond to our needs with people who show up. That is critical to us. The people supplied tend to stay better than other agencies’ placements.”

Nesco Resource: Smart recruiting.

Companies may be unaware of their responsibility to temporary employees and to follow the full scope of OSHA regulations. Some think the issue is too complicated to deal with. A trustworthy recruitment partner, with extensive experience in mitigating health and safety risks, can be your largest ally in avoiding unnecessary legal exposure.

Recruiting and staffing service providers educate companies on safety standards — including what’s required and what’s at risk — and otherwise help prepare companies for the future.

In this industry, the bottom line is ensuring that we’re all doing everything we can to keep our employees safe and healthy.

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August 7, 2017 S11

Nature provides positive benefits for employees

By CAIT ANASTIS

S

tudies have shown that spending time in nature can decrease stress and increase productivity.

New research indicates that it may also stimulate creativity.

During a study conducted at the University of North Florida, employees who had access to nature during the workday reported decreases in stress and stress-related problems.

In 2003, researchers at Texas A & M University conducted an eight-month study with 101 participants Anastis to see if flowers and plants promoted innovation and ideas. They found that both men and women demonstrated more innovative thinking in an environment with flowers and plants.

The Texas A & M study indicated that men generated about 15% more ideas when exposed to plants, while women “generated more creative and flexible solutions,” according to the study. Subsequent studies continue to

show the benefits of nature. In 2008, researchers at University of Michigan conducted a study that found “simple and brief interactions with nature can produce marked increased in cognitive control.” In 2014, researchers in Japan found that participants who walked in forests had less anxiety than those who walked in urban settings.

Some companies are taking advantage of nature’s impact on their employees’ well-being by adding walking trails to their facilities or reworking their office spaces to include elements of nature. However, not every company can make these changes. Stepping outside the box and hosting corporate board meetings, off-site employee work ses-

sions or employee appreciation events at a nature-based site is one solution.

A Cleveland marketing firm recently visited the Holden Arboretum for a strategic planning session and staff retreat. Staff members utilized classroom space and an adjacent patio for small group sessions. Employees received breaks throughout the day,

People are assets, too.

Are you focused primarily on retention when a more holistic view is needed?

To reduce talent risk and drive long-term success, KPMG can help develop strategically driven talent risk management programs for your entire organization.

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during which they visited the gardens, the Murch Canopy Walk and Kalberer Emergent Tower.

The Canopy Walk and Tower provide guests with a new perspective on nature, as well as breathtaking views of the surrounding area, including Lake Erie. The experience can add new energy to group discussions, as well as providing a break that makes work more pleasant, said Shannon Bradick, the Arboretum’s private events coordinator.

“We want to help employers create events that will be memorable and enjoyable, as well as productive,” Bradick said. “The combination of indoor and outdoor spaces available allows employees to step outside of the box and view their work and their coworkers in a new setting.”

Cait Anastis is editor at Holden Arboretum. Contact her at 440602-3827 or canastis@holdenarb. org. For more information about hosting private events, contact Shannon Bradick at 440-602-3835 or sbradick@holdenarb.org.

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4 ways to revamp your leadership development program

By TOM AULT

E

ngaging in a sound, well-constructed leadership development process is essential to helping an organization achieve its organizational strategy. Even though 58% of organizations have identified closing leadership skill gaps as their top priority, only 19% of organizations state they are “very effective” at developing leaders, according to “The State of Leadership Development,” a report conducted by Brandon Hall Group, a human resources research and analyst firm. If you are a part of that 19%, here are four key ways to revamp your leadership development process:

1

DEFINE YOUR LEADERSHIP STRATEGY

Organizations often make the mistake of not defining a strategy before they develop leadership. Without articulating a strategy, the organization will not have a clear understanding of what they are attempting to achieve, and why. It is better to provide leaders with a combination of leadership assessments or 360-degree feedback, developmental coaching and stretch assignments that align with the overarching goals of the company.

Here’s what you need to determine to create a successful leadership development strategy: n What is the key business objective that is highlighting our need for leadership development? n What role will the organization’s leadership play? n What are the critical competencies a leader must possess to achieve and support the organizational strategy? n What timeframe will be required to ensure these competencies are in place? n How will leaders be developed? Will the process be internal, using their own learning and development group, or through an outside training and consulting organization, or both?

Answering these questions will help pave the way for your organization to get the most out of its leaders.

2

INCLUDE EMERGING LEADERS

It’s important to consider your emerging leaders. Identify who these top-performing potential leaders are within the organization. Place them in a planned, strategic process to help them achieve the necessary knowledge and skills and experience

to become successful. Investing in their development early on can lay the necessary groundwork to create a network of future leaders.

You can implement different models and approaches to learning and development.

For example, you could go the route of Ault the 70:20:10 model, which attributes 70% of learning through job-related experiences, 20% of learning from interactions with others and only 10% from formal education.

Another similar model is the 3-33 model, in which 33% of learning is formal, 33% of learning is informal and 33% of learning is social.

You can also adopt an approach that focuses on formal in-person learning, e-learning or a mix of both.

No matter which model or approach you choose for your leaders, having a strategy in place sets your leaders up for succeeding in a long and fruitful career.

3

ASSESS THE GAPS

After you’ve determined your strategy, you must identify the gaps.

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Begin by giving your leaders a training needs assessment, which evaluates critical areas such as skill proficiency, how often they apply those skills, and the level of skill critical for job performance.

Data collected can reveal deficient skill sets, identify training priorities and focus the investment of your organization’s time and money on the development initiatives that matter most.

Assessing the gaps helps widen the scope of your leadership team development. You may have a team of five leaders who on their own are extremely effective, but lack trust, communication and accountability when they come together at a management retreat.

Team assessments can help uncover the critical skills that your teams need to embrace to be as effective as possible.

4

REVAMP YOUR LEADERSHIP PROGRAM

Now that you know where your gaps are, revamping your leadership program will help close the gap between leadership capabilities today and what is needed in the near term.

Your leadership program should align with the specific leadership

development objectives. Measurable outcomes should follow, usually in the form of a project completed that involves requisite skills and education.

Leadership programs should also include the following: n A full and comprehensive list of leadership competencies and core values that will help identify what it means to be a good leader n Optimum exposure to quality developmental resources.

Regardless of the strategy you decide, the gaps you need to fill, and the leadership program you develop, your leadership development is a vital and fundamental process to the long-term success of an organization.

Leaders set the tone and expectations for the rest of the employees. If they are not properly developed, bad habits could infect the entire workforce.

Start from the top and ensure your leaders are properly equipped to coach others and to lead by example.

Tom Ault is the director of Technical Training and a senior training consultant at ERC, a provider of human resources, training, consulting and coaching services.

Contact him at 440-684-9700 or tault@yourERC.com.

Contingent labor trends signal shift in employment needs

By NICK BAILEY

C

ontingent staffing has reached an all-time high in the U.S., while unemployment figures continue to decline. Staffing Industry Analysts, a global research firm, reported in May that “year-on-year temporary help employment maintained a multi-year high rate of growth at 3.9%.”

If this seems counterintuitive, that’s because it is. In the past, contingent labor was only seen as a harbinger of Bailey bad economic indicators. Economic uncertainty led many companies to delay hiring to hedge their bets against an imminent downturn. But the motivation today is quite different than in a down cycle economy.

Companies are increasingly using contingent labor as a pipeline for their permanent workforce.

Everything from training to background checks can be an expensive process. Hiring a potential employee on a contingent basis is a way to increase the chances that a full-time hire will work out.

A second factor is how much more nimble companies need to be today to satisfy the needs of their customers.

From consumer products to B2B services, delivery has become more closely tied to seasonal ups and downs.

Retail holiday shopping, for example, was once tied to December shopping.

Today, retailers market to holiday niches throughout the year. This one indicator impacts employment from warehouse workers to IT professionals.

Finally, it’s important for workers to be educated on contingent labor opportunities. Full-time employment remains a goal for most people.

However, contingent labor may be a pathway into a company or industry segment.

The continued growth in contingent labor points toward a long-term trend that benefits the industry that supplies contingent labor as well as the industries that utilize their services.

We are a long way from the gig economy impacting most employment.

But the rise in contingent labor in the face of low unemployment points toward a market in need of flexibility.

Instead of an indicator of bad news, contingent labor represents a new path toward growth.

Nick Bailey is area manager for Nesco Resource in Northeast Ohio.

Contact him at 440-341-5623 or nbailey@nescoresource.com.

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August 7, 2017 S13

A collaborative approach to professional development

Have a plan in place to help build employee skillsets

By ROBIN DOERSCHUK

E

mployers and employees are constantly searching for the best return on their investments, especially when it comes to how they spend their time. Employees want to keep building their skillset but may feel pressured to pursue professional development on company time.

Meanwhile, employers want to get the most out of their workforce today and into the future. Is there a happy medium?

The answer is yes. Doerschuk While the costs of allowing employees to participate in outside workshops, conferences and net-

working events can add up, a thoughtful employer can reap big rewards to enhance the bottom line. Giving employees time and resources to pursue their professional development can:

n bring new talent into your organization through employee networking and referrals; n increase awareness of the employer’s brand in the labor market; n bring fresh ideas into your organization; and n lead to new business opportunities.

sharpen employees’ skills and enhance their on-the-job productivity; n increase employees’ sense of engagement and loyalty;

With all these benefits, the choice isn’t whether employers should support their employees’ professional development, but how they can help facilitate.

n

Local human resource management societies can help advise your organization on how to fashion a professional development plan to meet your unique needs and ensure a great return on your investment.

Robin Doerschuk is president at Cleveland Society for Human Resource Management. Contact her at 216-503-1690, ext. 2310 or rdoerschuk@mytalentlaunch.com.

Employers must focus on objective criteria to justify pay

By JACK E. MORAN

P

ay equity seems to be in the headlines almost every day. New studies are constantly emerging that reflect the current disparity in pay between men and women.

While the expanse of the pay gap fluctuates based on the source, the implication is the same.

Given the level of scrutiny applied to this issue, employers who do nothing to address it put themselves at risk.

The Equal Pay Act Moran requires that men and women who work in the “same establishment” must receive equal pay if they are performing “equal work,” unless the employer can justify a pay differential for a reason “other than sex.”

Unsurprisingly, any such factor must be adopted for a legitimate business reason. There are other federal and state laws that similarly prohibit pay discrimination.

Recent court decisions stress that employers should be careful when relying on some of the typical justifications often used, particularly if a factor is arguably “subjective.”

For example, several recent judicial opinions emphasize that an employer that relies on “prior experience” should develop an empirical way to measure it. Otherwise, the employer risks subjectively evaluating employees’ experience. An employer’s method for measuring experience should be applied consistently, including when differentiating between how the employer pays two different men or two different women.

Also, an employer that justifies a pay difference based on “varying duties” should be cautious when dealing with employees who work in the same division. If the duties of two employees are technically different, but they are on the same level of the organization, their work is in the same field or department, and the work requires substantially equal skill, effort and responsibility, then an employer

“

It is vastly preferable to conduct a pay audit that focuses on job requirements and duties instead of wage history, classifications or titles.”

may be exposed to liability unless there is some other legitimate reason for the pay difference.

There are serious risks with putting off an evaluation of pay equity, the first of which is that employees may resign. The talent departure will likely harm the organization. It is vastly preferable to conduct a pay audit that focuses on job requirements and duties instead of wage history, classifications or titles.

Pay equity audits also reveal that decisions made years earlier result in a female employee getting paid less, which has reverberated into a present disparity that cannot be justified objectively. Under some

Adopting a cross-disciplined approach to benefits communications Selecting the right broker, consultant makes an impact

By PHILIP AMOS

W

hen it comes to providing a comprehensive benefits program, employers should be sure to develop a communication strategy that clearly defines each option so employees understand and elect their benefits appropriately.

As the saying goes, “To the hammer, everything looks like a nail.” To the voluntary benefits specialist, the solution relates to voluntary benefits. To the retirement plan representative, the answer points toward to retirement savings.

In today’s benefits world, the benefits packaging needs a more holistic

perspective. A health savings account should be connected to a retirement plan and a 529 college savings plan.

A medical insurance election should be linked to a menu of supplemental benefits, including an HSA, or a Section 125 plan, which allows employers to offer certain Amos benefits on a pre-tax basis. Wellness plans are no longer just about fitness and diet but have evolved to include a financial wellness perspective.

Insurance and employee benefits service providers offer the kind of ex-

pertise that help companies develop and manage participant-centered communication strategies. Collaboration among consultants, account managers, supplemental benefit experts, retirement plan consultants, compliance specialists and financial advisers all factor into a properly executed benefits strategy.

These services enable communications specialists to have a personal dialogue with participants rather than delivering a sales script for a particular product.

Philip Amos is president of Chapman and Chapman Financial Services.

Contact him at 440-934-4103.

laws, each paycheck constitutes a new violation, so the employer cannot avoid a potentially sizable claim of pay disparity through the passage of time.

Employers who don’t address the issue until an employee raises a

concern do so at their own peril. A complaining employee is protected by anti-retaliation provisions and, once the complaint is made, it is often too late to develop a more coherent basis for a pay difference. Given the need to retain top talent and the risk of liability, employers should vigilantly be reviewing their pay practices to ensure legal compliance.

Jack E. Moran is a principal in the employment law practice at McCarthy Lebit. He can be reached at 216-696-1422 or jem@mccarthylebit.com.

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Three key policies for your 2017-18 employee handbook

By JON HYMAN and SETH BRISKIN

gay, bisexual or transgender. It sends the right message that you are an employer of inclusion, not exclusion.

he Golden Rule of employee relations says, “Do unto your employees as you would have your employer do unto you.” In a simpler world without our alphabet-soup of employment laws and regulations, this Golden Rule would suffice as your employee handbook. Our employmentlaw world, however, is not that simple.

As a result, our handbooks must serve as comprehensive guideposts for each aspect of the employer-employee relationship, and, as laws evolve, so must they. Here are three issues that should be on your radar for your handbook in 2017-2018.

2

1

3

T

LGBTQ

rights:

Even though our national attitude towards LGBTQ rights is moving toward full inclusion, our laws have not yet caught up. Employers should get ahead of this issue and enact policies prohibiting discrimination against individuals who are lesbian,

Social media: The Na-

tional Labor Relations Board has actively regulated social media policies under its umbrella of “protected concerted activity.” Moreover, many employees have not yet realized that anything they say online can affect their professional persona. Hyman In the event you have employees who have not yet learned this important lesson, it is your job as an employer to help educate them.

times during which they are working off-the-clock only serves to help an employer defend against an employee’s claim for unreported, undocumented, off-the-clock time.

These three policies are but a small sample of many concerns you should consider addressing this year and going forward into 2018. New laws/rules are often passed that require guidance, and courts may render your old policies obsolete or illegal.

Briskin To ensure that your handbook is current and protects you and your employees, an annual review and update is critical.

Jon Hyman and Seth Briskin are

Overtime reporting: Un- both partners with the Labor

der the Fair Labor Standards Act, an employer must pay an employee for all time the employer knows or should know an employee is working, even when “off-the-clock.”

A policy that underscores that burden by requiring employees to document

and Employment Law Group at Cleveland-based Meyers, Roman, Friedberg & Lewis. Contact Jon at 216-831-0042, ext. 140, or jhyman@meyersroman.com. Contact Seth at 216-831-0042, ext. 141, or sbriskin@meyersroman.com.

1 2 3

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By SUSAN C. RODGERS

I

f your business is not going to commit to taking the time and making the effort to do performance evaluations right, do not do them at all.

Performance evaluations will do more harm than good, if done wrong.

If done right, performance evaluations may be effective in maintaining or improving job satisfaction and morale by showing employees the company is interested in their personal growth and development. Performance evaluations may be used to positively recognize employees’ skills and talents, and also reveal the areas in which they need to improve.

The following best practices can help managers facilitate the performance evaluation process:

August 7, 2017 S15

Performance evaluations should work for, not against, your business

1

Train your supervisors on how to properly complete performance evaluations.

Odds are that conducting performance evaluations is one of a supervisor’s least favorite responsibilities. Some supervisors delay doing evaluations because they distract from business operations.

Other supervisors simply mark everyone as outstanding because it’s an easy way to avoid conflict and complete the task. Supervisors must understand that completed performance evaluations may be viewed by outside parties such as attorneys, government investigators or jurors in future legal proceedings or investigations.

Inform supervisors of their responsibility to properly document employee performance. This key expectation also factors into the supervisor’s own performance evaluation.

2

Performance evaluations should be honest, accurate, fair and timely.

Inflated or overly complimentary

evaluations for “confidence building” or “cheerleading” are not fair to anyone. An inaccurate assessment does not provide employees a true understanding of their performance, and they are deprived of an opportunity to improve.

It is also unfair to the Rodgers business, since there is no accurate record of performance on which to base future employment decisions, such as promotions, raises, training opportunities, disciplinary action and termination.

If done improperly, the performance evaluation may be the primary piece of evidence against a company in an employment discrimination case.

3

A negative performance evaluation should not be a surprise to an employee.

The

evaluation

should

be

a

fair assessment of the past year’s performance. A supervisor should not have an employee on “double secret probation” and build up a file to unload on the employee at the time of the review. The secret build-up of issues may impact the evaluation’s credibility.

Employees should be made aware of job performance concerns through some type of communication, whether coaching, disciplinary actions or even email.

4

Use legitimate criteria that are objective, measurable and consistent with the employee’s job description.

Supervisors should review the job description for the position, define the benchmarks for each level of ranking in the evaluation and base the evaluation on the employee’s ability to perform the job. The same benchmarks should be used for every employee in the position.

Whether the supervisor personally

likes the employee should not be a consideration. Supervisors should not create a perception of favoritism by excusing some employees while holding others accountable to their responsibilities.

Avoid comments about attitude, individual personality traits and other characteristics that do not impact the job. However, a supervisor should expect an employee to make a positive contribution to the work environment and to be a team player.

Certainly, supervisors can discipline an employee for having a negative attitude, which impacts the work environment.

5

Evaluators need to avoid comments regarding a potentially unlawful subject matter.

Supervisors should be well-versed on employment laws so they do not unintentionally focus on legally protected characteristics or activities.

The evaluation should not contain any comments about an employee’s age, race, gender, veteran status, religion, national origin or any other protected category.

Evaluators don’t need to be employment law specialists, but they do know when to involve the human resources or legal department if the performance issue they are facing involves a protected area.

Negative remarks about attendance issues because of a work-related injury or an approved Family and Medical Leave Act could yield a claim of retaliation against the company.

Comments relating to employee’s health or substance abuse issues could lead to a disability or perceived disability discrimination claim.

Susan C. Rodgers is partner, general counsel and chair of the Employment & Labor Group at Buckingham, Doolittle & Burroughs LLC. Contact her at 330-258-6552 or srodgers@bdblaw.com.

Americans are sick and tired of being sick and tired Lawmakers responding with new PTO regulation

By GEORGE ASIMOU

T

he Trump Administration recently issued a Statement of Administration Policy that advocates for passage of the Working Families Flexibility Act (H.R. 1180).

This bill would amend the Fair Labor Standards Act to allow private sector employers to give their employees the choice to receive paid time off instead of overtime compensation.

Such “comp time” schemes, which allow employees to defer earned overtime compensation in return for the ability to take PTO of equal value

at a future date within 12 months, are common in the public sector but are prohibited for private employers under current law.

The Working Families Flexibility Act passed the U.S. House of Representatives in May and now awaits action by the U.S. Senate. Describing H.R. 1180 as a step to “help American workers balance the competing demands of family and work,” the policy states that, “if H.R. 1180 were presented to the President in its current form, his advisors would recommend that he sign the bill into law.”

Americans spend a lot of time at

work. Recent government statistics suggest the average American puts in about 34 hours a week. Meanwhile, polls asking Americans about their workweek consistently have reported an average workweek of about 47 hours. There are many explanations for the discrepancy — Asimou but Americans feel like they work a lot.

A growing number of states and municipalities across the country have taken on the PTO issue through their own laws and regulations. Much

of this legislative push derives from worker concerns about income security in the event of illness.

In 2011, Connecticut passed the first state-level mandatory sick leave law.

Since that time, eight states (including California, Illinois, Massachusetts, New York, Oregon, Vermont and Washington) and several municipalities (including New York, Los Angeles, Chicago, Seattle, Minneapolis and Washington, D.C.) have mandatory sick leave laws. Pittsburgh, our Rust Belt counterpart, passed a sick time mandate — though it is currently the subject of a legal challenge. Neither Ohio nor Cleveland have passed sick leave mandates.

Branding for purposes of talent

recruitment has long dictated that employers be thoughtful about policies that support work/life balance. To date, the various sick leave mandates passed have largely been limited because employers already offer PTO in excess of what is required by law.

But, in times of full employment and with such a dynamic legal environment, regular review of employer paid time off frameworks should be considered best practice.

George Asimou is an attorney in the labor and Employment Practice Group of Cleveland-based Walter | Haverfield LLP. Contact him at 216-781-1212 or gasimou@walterhav.com.

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A U G U S T 7 - 13 , 2 017

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PA G E 41

THE LIST

100 Largest Northeast Ohio Employers Ranked by Full-Time Equivalent Local Employees

FULL-TIME EQUIVALENT LOCAL EMPLOYEES THIS YEAR

ORGANIZATION (1)

6/30/2017

EMPLOYEES IN 6/30/2016 % CHANGE OHIO

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

1

Cleveland Clinic, Cleveland (216) 444-2200/www.clevelandclinic.org

41,622

41,551

0.2%

41,015

Health care provider

Toby Cosgrove president, CEO

2

Minute Men Cos., Cleveland (216) 426-9675/http://minutemenhr.com

38,600 (2)

39,402 (2)

(2.0%)

NA

Staffing and employment services firm

Jay Lucarelli CEO

3

University Hospitals, Cleveland (216) 844-1000/www.uhhospitals.org

21,751

21,519

1.1%

21,752

Health care provider

Thomas F. Zenty III CEO

4

U.S. Office of Personnel Management, Washington, D.C. (202) 606-1800/www.opm.gov

14,894

14,382

3.6%

50,893

Federal government

Kathleen McGettigan acting director

5

Group Management Services Inc., Richfield (330) 659-0100/www.groupmgmt.com

11,341 (2)

8,499 (2)

33.4%

NA

Staffing and employment services firm

Michael Kahoe president

6

Progressive Corp., Mayfield Village (440) 461-5000/www.progressive.com

10,045

9,490

5.8%

10,945

Insurance company

Susan Patricia Griffith president, CEO

7

Giant Eagle Inc., Bedford Heights 412-967-4551/www.gianteagle.com

8,641

9,080

(4.8%)

11,077

Multi-format food, fuel and pharmacy retailer

Bill Artman, senior vice president, retail operations

8

State of Ohio, Columbus (614) 466-2000/www.ohio.gov

8,159

8,139

0.2%

47,570

State government

John R. Kasich governor

9

Cuyahoga County, Cleveland (216) 443-7220/www.cuyahogacounty.us

7,397

7,498

(1.3%)

NA

County government

Armond Budish county executive

10

Area Temps Inc., Independence (866) 995-5627/www.areatemps.com

7,000 (2)

7,000 (2)

0.0%

NA

Staffing and employment services firm

Kent Castelluccio president

11

U.S. Postal Service, Cleveland (800) 275-8777/www.usps.com

6,823

7,607

(10.3%)

NA

Federal agency

NA

12

City of Cleveland, Cleveland (216) 664-2406/www.city.cleveland.oh.us

6,561

6,608

(0.7%)

6,561

Municipal government

Frank G. Jackson mayor

13

The MetroHealth System, Cleveland (216) 778-7800/www.metrohealth.org

6,469

6,423

0.7%

6,469

Health care provider

Akram Boutros president, CEO

14

Cleveland Metropolitan School District, Cleveland (216) 838-0000/www.clevelandmetroschools.org

6,392

6,468

(1.2%)

6,392

Public school district

Eric S. Gordon CEO

6,058

5,869

3.2%

6,058

Health care provider

Cliff Deveny interim president and CEO

Health, Akron 15 Summa 375-3000/www.summahealth.org THE (330) LIST

100 Largest Northeast Ohio Employers

ediv/ adj. 1. Our natural instinct to grasp in•tu•i•tive /in't(y)oo Lawyers who Equivalent Ranked

by Full-Time Local Employees

are intuitive THIS YEAR

complex issues and quickly respond to client concerns with insightful FULL-TIME EQUIVALENT strategies and courses of action.

LOCAL EMPLOYEES2. walterhav.com

The Labor & Employment Attorneys of

Cleveland | 216.781.1212 | walterhav.com

ORGANIZATION (1)

6/30/2017

EMPLOYEES IN 6/30/2016 % CHANGE OHIO

16

KeyCorp, Cleveland (216) 689-6300/www.key.com

5,331

5,076

5.0%

6,232

Banking and financial services company

Beth E. Mooney chairman, CEO

17

FirstEnergy Corp., Akron (800) 736-3402/www.firstenergycorp.com

5,073

5,085

(0.2%)

6,933

Electric utility holding company

Charles E. Jones Jr. president, CEO

18

Kent State University, Kent (330) 672-3000/www.kent.edu

5,012

4,907

2.1%

5,337

Public university

Beverly Warren president

19

Akron Children's Hospital, Akron (330) 543-1000/www.akronchildrens.org

4,876

4,519

7.9%

4,966

Pediatric health care provider

William H. Considine CEO

20

Case Western Reserve University, Cleveland (216) 368-2000/www.case.edu

4,501

4,455

1.0%

4,501

Private university

Barbara R. Snyder president

General Motors Co., Detroit (313) 556-5000/www.gm.com

4,500

6,000

(25.0%)

NA

Automobile manufacturer

Rick Demuynck, plant manager, Lordstown Complex; Lamar Rucker, plant manager, Parma Metal Center

22

Aultman Health Foundation, Canton (330) 452-9911/www.aultman.org

4,366

4,078

7.1%

4,366

Health care provider

Edward J. Roth III president, CEO

23

Sherwin-Williams Co., Cleveland (216) 566-2000/www.sherwin.com

4,325

4,226

2.3%

NA

Manufacturer of paint, coatings and related products

John G. Morikis president, CEO, chairman

24

Swagelok Co., Solon (440) 248-4600/www.swagelok.com

4,140

3,917

5.7%

NA

Designer and manufacturer of industrial fluid system components

Arthur F. Anton president, CEO

25

Akron Public Schools, Akron (330) 761-1661/www.akronschools.com

3,602

3,615

(0.4%)

3,602

Public school district

David W. James superintendent

Ford Motor Co., Dearborn, MI (800) 392-3673/www.ford.com

3,460

3,076

12.5%

NA

Automobile manufacturer

Kevin Heck, plant manager, Cleveland engine plant; Steve Wilcox, plant manager, Ohio assembly plant

27

Huntington National Bank, Cleveland (800) 480-2265/www.huntington.com

3,288 (3)

1,848

77.9% (3)

9,925

Banking and financial services company

Sean P. Richardson regional president - Cleveland

28

Summit County, Akron (330) 926-2525/www.co.summit.oh.us

3,192

3,446

(7.4%)

3,192

County government

Ilene Shapiro county executive

29

Signet Jewelers Ltd., Akron (330) 668-5000/www.signetjewelers.com

3,061

3,292

(7.0%)

3,538

Specialty jewelry retailer

Mark Light CEO

30

Goodyear Tire & Rubber Co., Akron (330) 796-2121/www.goodyear.com

3,000

3,000

0.0%

NA

Tire manufacturer

Richard J. Kramer chairman, CEO, president

31

Howard Hanna Real Estate Services, Mayfield Heights (216) 447-4477/www.howardhanna.com

2,692

2,650

1.6%

2,692

Residential and commercial real estate company

Howard W. "Hoby" Hanna IV president

32

Lincoln Electric, Cleveland (216) 481-8100/www.lincolnelectric.com

2,680

2,670

0.4%

2,710

Designer, developer and manufacturer of arc welding products

Christopher L. Mapes chairman, president, CEO

21

26

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

SEE TOP 100, PAGE 42

PA G E 4 2

|

A U G U S T 7 - 13 , 2 017 |

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

THE LIST

100 Largest Northeast Ohio Employers Ranked by Full-Time Equivalent Local Employees

FULL-TIME EQUIVALENT LOCAL EMPLOYEES THIS YEAR

ORGANIZATION (1)

6/30/2017

EMPLOYEES IN 6/30/2016 % CHANGE OHIO TYPE OF BUSINESS

33

TimkenSteel Corp., Canton (330) 471-7000/http://timkensteel.com

2,503

2,291

9.3%

2,597

Customized alloy steel products and services provider

Ward J. "Tim" Timken Jr. chairman, CEO, president

34

Nestle, Solon (440) 349-5757/www.nestleusa.com

2,438

2,300

6.0%

3,600

Food and beverage company

Paul Grimwood (3) chairman, CEO

35

The Lubrizol Corp., Wickliffe (440) 943-4200/www.lubrizol.com

2,309

2,300

0.4%

2,372

Specialty chemical company

Eric R. Schnur chairman, president, CEO

Arconic Inc., Cleveland (216) 641-3600/www.alcoa.com

2,300

2,000

15.0%

2,325

Lightweight metals engineering and manufacturing company

Eric Roegner, president, GRP and Arconic Defense; Tim Myers, president, TCS; Merrick Murphy, president, AWTP; Jeremy Halford, president, ATEP

Greater Cleveland Regional Transit Authority, Cleveland (216) 621-9500/www.riderta.com

2,300

2,101

9.5%

2,300

Public transit agency

Joseph A. Calabrese CEO, general manager, secretary, treasurer

Discount Drug Mart Inc., Medina (330) 725-2340/www.discount-drugmart.com

2,242

2,135

5.0%

2,830

Regional drug store chain

Don Boodjeh CEO

ArcelorMittal, Cleveland (216) 429-6000/www.usa.arcelormittal.com

2,165

2,157

0.4%

3,003

Steel manufacturer

Mike Madar interim vice president and general manager

40

Lake Health, Concord Township (440) 375-8100/www.lakehealth.org

2,150

1,916

12.2%

2,150

Health care provider

Cynthia Moore-Hardy president, CEO

41

Mercy Medical Center, Canton (330) 489-1000/www.cantonmercy.org

2,057

2,020

1.8%

2,100

Health care provider

Paul C. Hiltz interim CEO

41

University of Akron, Akron (330) 972-7111/www.uakron.edu

2,057

2,211

(7.0%)

2,057

Public university

Matthew J. Wilson president

Avery Dennison, Mentor (440) 534-6000/www.averydennison.com

2,055

1,886

9.0%

2,626

Manufacturer of pressure sensitive paper, film and foil, graphic materials and specialty tapes

Nick Tucci, vice president and general manager, Label and Graphic Materials North America

The J.M. Smucker Co., Orrville (330) 682-3000/jmsmucker.com

1,985

1,700

16.8%

2,406

Food products company providing fruit spreads, retail packaged coffee, peanut butter, shortening and oils

Mark T. Smucker president, CEO

JACK Entertainment, Cleveland (216) 297-4777, (216) 662-8600 www.JACKEntertainment.com

1,945

2,095

(7.2%)

NA

Operator of JACK Cleveland Casino and JACK Thistledown Racino

Mark Tricano senior vice president, Northeast Ohio operations

Medical Mutual of Ohio, Cleveland (216) 687-7000/www.medmutual.com

1,908

1,900

0.4%

2,372

Mutual company providing health and life insurance, dental, vision products and TPA services

Rick A. Chiricosta president, CEO, chairman

47

Westfield Insurance, Westfield Center (330) 887-0101/www.westfieldinsurance.com

1,848

1,713

7.9%

2,084

Insurance, banking and related financial services

Edward Largent president, CEO, board chair

48

City of Akron, Akron (330) 375-2330/www.akronohio.gov

1,815

1,800

0.8%

1,815

Municipal government

Daniel Horrigan mayor

Rockwell Automation Inc., Mayfield Heights (440) 646-5000/www.rockwellautomation.com

1,812

1,812

0.0%

1,914

Provider of industrial automation control and information solutions

Frank Kulaszewicz senior vice president, architecture and software

50

Southwest General, Middleburg Heights (440) 816-8000/www.swgeneral.com

1,802

1,754

2.8%

1,802

Health care provider

William A. Young Jr. president, CEO

51

Parker Hannifin Corp., Mayfield Heights (216) 896-3000/www.parker.com

1,800

1,990

(9.5%)

2,900

Provider of fluid power systems and electromechanical controls

Thomas L. Williams chairman, CEO

Schaeffler Group USA, Wooster (330) 264-4383/www.schaeffler.us

1,700

1,700

0.0%

NA

Manufacturer of transmission system components for the automotive industry

Marc L. McGrath president Automotive Americas

53

Hyland, Westlake (440) 788-4988/www.hyland.com

1,697

1,566

8.4%

1,697

Enterprise content management software developer

Bill Priemer president, CEO

54

Ganley Auto Group, Brecksville (440) 584-8202/www.ganleyauto.com

1,616

1,468

10.1%

1,616

Auto dealer

Kenneth G. Ganley president, CEO

55

Fred W. Albrecht Grocery Co., Akron (330) 733-2263/www.acmestores.com

1,589

1,576

0.8%

1,589

Grocery and pharmacy store operator

Jim Trout president

Mercy, Lorain (440) 960-4000/mercy.com

1,581

1,521

3.9%

NA

Health care provider

Edwin M. Oley CEO, Mercy Lorain Region senior vice president, Mercy Health

57

Cleveland State University, Cleveland (216) 687-2000/www.csuohio.edu

1,572

1,573

(0.1%)

1,572

Public university

Ronald M. Berkman president

58

Parma City School District, Parma (440) 842-5300/www.parmacityschools.org

1,546

1,579

(2.1%)

NA

Public school district

Carl H. Hilling superintendent

Dominion Energy Ohio, Cleveland (800) 362-7557/www.dominionenergy.com

1,510

1,516

(0.4%)

1,661

Natural gas distributor

Jeff Murphy vice president and general manager, Ohio & West Virginia Distribution

60

Cuyahoga Community College, Cleveland (216) 987-6000/www.tri-c.edu

1,439

1,376

4.6%

1,439

Community college

Alex Johnson president

61

JPMorgan Chase & Co., Cleveland (800) 935-9935/www.chase.com

1,400

1,300

7.7%

21,100

Banking and financial services company

James M. Malz head of commercial banking, Ohio

62

Diebold Nixdorf, North Canton (330) 490-4000/www.dieboldnixdorf.com

1,340

1,610

(16.8%)

1,500

Self-service technology, software and security systems provider

Andreas W. Mattes president, CEO

Ernst & Young LLP, Cleveland (216) 861-5000/www.ey.com

1,328

1,311

1.3%

2,003

Assurance, advisory, tax and transaction advisory services company

Julie Boland, Cleveland office managing partner; Jerry Gootee, Akron office managing partner

64

Scott Fetzer Co., Westlake (440) 892-3000/www.scottfetzer.com

1,324

1,358

(2.5%)

1,803

Diversified manufacturer

Bob McBride president, CEO

65

Eaton, Beachwood (440) 523-5000/www.eaton.com

1,322

1,322

0.0%

2,363

Manufacturer of electrical, hydraulic, aerospace, truck and automotive products

Craig Arnold chairman, CEO

36 36 38 39

43 44 45 46

49

52

56

59

63

TOP LOCAL EXECUTIVE

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

Ranked by Full-Time Equivalent Local Employees

|

A U G U S T 7 - 13 , 2 017

|

PA G E 4 3

FULL-TIME EQUIVALENT LOCAL EMPLOYEES THIS YEAR

ORGANIZATION (1)

6/30/2017

EMPLOYEES IN 6/30/2016 % CHANGE OHIO TYPE OF BUSINESS

66

Shearer's Foods LLC, Massillon (330) 834-4030/www.shearers.com

1,310

1,225

6.9%

NA

Manufacturer of snack foods

CJ Fraleigh CEO

67

Bridgestone Americas Inc., Akron (330) 379-7000/www.bridgestoneamericas.com

1,177

1,172

0.4%

NA

Tire manufacturer

Nizar Trigui chief technology officer

68

Oberlin College, Oberlin (440) 775-8460/www.oberlin.edu

1,096

1,127

(2.8%)

1,096

Private college

Carmen Ambar president

69

The Timken Co., North Canton (234) 262-3000/www.timken.com

1,079

1,089

(0.9%)

1,436

Manufacturer of engineered bearings and mechanical power transmission products

Richard G. Kyle president, CEO

70

Youngstown State University, Youngstown (330) 941-3000/www.ysu.edu

1,067

1,067

0.0%

1,067

State university

James Tressel president

71

Medina County, Medina (330) 723-3641/www.co.medina.oh.us

1,041

1,038

0.3%

1,041

County government

Board of commissioners

Pepsi Beverages Co., Twinsburg (330) 963-5300/www.pepsico.com

1,027

1,025

0.2%

2,250

Manufacturer, seller and distributor of PepsiCo and Allied beverages

Dan Hungerman vice president, food service Great Lakes region

73

Safeguard Properties Management LLC, Valley View (216) 739-2900/www.safeguardproperties.com

1,022

1,251

(18.3%)

1,022

Inspection and maintenance of defaulted and foreclosed properties nationally

Alan Jaffa CEO

74

RPM International Inc., Medina (330) 273-5090/www.rpminc.com

1,013

976

3.8%

1,217

Provider of specialty coatings, sealants and building materials

Frank C. Sullivan chairman, CEO

75

Portage County, Ravenna (330) 297-3600/www.co.portage.oh.us

1,005

998

0.7%

1,005

County government

Board of commissioners

76

St. Vincent Charity Medical Center, Cleveland (216) 861-6200/www.stvincentcharity.com

977

896

9.0%

977

Health care provider

David F. Perse president, CEO

77

Ohio Savings Bank, a division of New York Community Bank, Cleveland (216) 588-4100/www.mynycb.com

975

853

14.3%

975

Financial institution/bank

Cynthia Flynn executive vice president

78

Willoughby-Eastlake City Schools, Willoughby Hills (440) 946-5000/www.weschools.org

972

961

1.1%

NA

Public school district

Stephen Thompson superintendent

79

Menorah Park, Beachwood (216) 831-6500/www.menorahpark.org

951

944

0.7%

951

Full continuum of care for seniors including residential and community services

James Newbrough CEO

80

PPG Industries Inc., Cleveland (412) 434-3131/www.ppg.com

945

930

1.6%

945

Coatings and speciality products company

Stanley Zaharewicz plant manager

BWX Technologies Inc., Euclid (216) 912-3000/www.bwxt.com

930

950

(2.1%)

930

Pressure vessels, steam generators and electro-mechanical components provider

Doug Paulson, general manager, BWXT Nuclear Operations Group Euclid Jim Bittner, general manager, BWXT Nuclear Operations Group Barberton

82

Dave's Supermarkets, Bedford Heights (216) 763-3200/www.davesmarkets.com

921

964

(4.5%)

921

Supermarkets

Daniel Saltzman president

83

Third Federal Savings & Loan, Cleveland (800) 844-7333/www.thirdfederal.com

875

864

1.3%

924

Savings and loan

Marc A. Stefanski chairman, president, CEO

84

Federal Reserve Bank of Cleveland, Cleveland (216) 579-2000/www.clevelandfed.org

850

853

(0.4%)

976

U.S. central bank

Loretta J. Mester president, CEO

85

Lakewood City School District, Lakewood (216) 529-4092/www.lakewoodcityschools.org

843

826

2.1%

843

Public school district

Jeffrey Patterson superintendent

86

Shaker Heights City School District, Shaker Heights (216) 295-1400/www.shaker.org

841

829

1.4%

841

Public school district

Gregory C. Hutchings Jr. superintendent

87

Hospice of the Western Reserve, Cleveland (800) 707-8922/www.hospicewr.org

839

915

(8.3%)

839

Hospice

William E. Finn president, CEO

88

Saint Gobain Corp., Solon (440) 836-6900/www.saint-gobain-corporation.com

815

804

1.4%

824

Provider of construction products, highperformance materials, glass containers

Tom Kinisky (5) president, CEO

Hard Rock Rocksino Northfield Park, Northfield (330) 908-7625/www.hrrnp.com

800

765

4.6%

800

A gaming, dining and entertainment destination, located on the Northfield Park harness racing grounds

Mark Birtha president

90

PolyOne Corp., Avon Lake (440) 930-1000/www.polyone.com

799

777

2.8%

NA

Provider of specialized polymer materials, services and solutions

Robert M. Patterson chairman, president, CEO

91

Western Reserve Hospital, Cuyahoga Falls (330) 971-7000/www.westernreservehospital.org

781

778

0.4%

818

Health care provider

Robert A. Kent Jr. president, CEO

Northeast Ohio Regional Sewer District, Cleveland (216) 881-6600/www.neorsd.org

755

685

10.2%

755

Wastewater and stormwater management utility serving all or part of 62 local communities

Kyle Dreyfuss-Wells CEO

93

Charles River Laboratories, Ashland (419) 289-8700/www.criver.com

748

690

8.4%

983

Contract research organization

Andy Vick, corporate vice president, Safety Assessment Ohio

94

Vitamix, Olmsted Township 440-235-4840/www.vitamix.com

702

691

1.6%

702

Manufacturer of high-performance blending equipment for home and commercial use

Jodi L. Berg president, CEO

95

Automated Packaging Systems Inc., Streetsboro (330) 342-2000/www.autobag.com

689

659

4.6%

692

Manufacturer of genuine Autobag, SidePouch, AirPouch and AutoSleeve packaging products

Hershey Lerner, chairman; Bernie Lerner, CEO; Cliff Brehm, president, CMO

96

Sandridge Food Corp., Medina (330) 725-2348/www.sandridge.com

678

663

2.3%

NA

Manufacturer of refrigerated salads, soups and side dishes

Mark D. Sandridge chairman, CEO

Oriana House Inc., Akron (330) 535-8116/www.orianahouse.org

667

658

1.4%

682

Nonprofit agency providing community corrections, substance abuse treatment and re-entry services

James J. Lawrence president, CEO

Jones Day, Cleveland (216) 586-3939/www.jonesday.com

652

644

1.2%

743

Legal services

Heather Lennox Cleveland partner-in-charge

ArtiFlex Manufacturing LLC, Wooster (330) 262-2015/www.artiflexmfg.com

648

568

14.1%

651

Designer and producer of stamped and welded assemblies of large, low volume formed metal parts

Erin Hoffmann CEO

Invacare Corp., Elyria (440) 329-6000/www.invacare.com

613

766

(20.0%)

613

Medical device manufacturer targeting the home and post-acute care markets

Matthew E. Monaghan chairman, president, CEO

72

81

89

92

97 98 99 100

TOP LOCAL EXECUTIVE

RESEARCHED BY CHUCK SODER

Want the Excel version of this list Ă&#x2018; and every other Crain's list? Become a Data Member: CrainsCleveland.com/data Information is supplied by the companies. Want your company to be included on this list in the future? Have a correction or a suggestion? Contact Chuck Soder: csoder@crain.com

(1) The listed city refers to the location of the organization's main local office. If the listed city is not in Northeast Ohio, it refers to the organization's headquarters city. (2) These are staffing firms; the vast majority of these employees work on behalf of other companies. Also, Minute Men's 2017 employment figure is as of March 31, 2017. (3) Huntington National Bank acquired FirstMerit in August 2016. (4) Based in California (5) Based in Malvern, Pa.

PA G E 4 4

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CRAIN’S CLEVELAND BUSINESS

AKRON

Neighborhood Watch

Wallhaven’s got a little bit of everything

A diverse mix of people, businesses and housing keeps the Akron neighborhood thriving

By DAN SHINGLER

About this series

dshingler@crain.com @DanShingler

We thought we knew a fair amount about Akron, which is the hometown of some of us at Crain’s. That is, until we started driving around with Akron planning director Jason Segedy, who agreed to take part in an ongoing series to show us his knowledge and passion for the city — one neighborhood at a time. This month, we look at Wallhaven, an old neighborhood that was one of Akron’s first suburbs but today is a hub of urban redevelopment.

If you want, well, pretty much anything, Akron’s Wallhaven neighborhood is probably a good place to start looking.

It’s a place Jason Segedy, Akron director of planning and urban development, loves and an area the city hopes will see further residential development. It’s also a place where retailers are expanding, including with and around a new Whole Foods Market 365.

But it began life as a suburb, under another familiar local name.

“In the 1919 city plan, this area was called Fairlawn … There’s always been just one Fairlawn, but it moved,” Segedy explained.

Wallhaven is a neighborhood that’s near and dear to Segedy. It’s got a lot of what he looks for as both a planning director and as a resident: a broad mix of housing options, along with diverse retail and other businesses that have helped to keep it up through about 80 years of history.

The neighborhood also has ample opportunities for new development that the city can use as part of its strategy to retain and grow its population, Segedy said. For example, there’s the old Perkins Middle School — it still houses some nurse training going on, but its 10 acres could probably support about 70 new houses, which might be more useful as the city tries to rebuild population.

For him, the neighborhood also has always been home, Segedy said.

“I’ve always lived within like a mile from here my whole life, except for grad school,” says Segedy, now 43.

“I really like that I can walk to stuff.

There’s a diversity of business and homes. There are lot of types of housing … It’s probably one of the city’s more affluent areas, but it still has a good diversity of income, and it also has racial diversity,” he says.

It’s also got Nervous Dog Coffee Bar, a popular local coffee shop on West Market Street, just southeast of where Market meets up with West Exchange. That’s roughly the start of Wallhaven’s business district, which continues northwest on Market to about Ken Stewart’s Grille — a restaurant that helped launch Northeast Ohio’s reputation among foodies — at Market and South Pershing Avenue.

That’s also where Segedy starts our tour. But before we head into the business district, we quickly detour into some residential neighborhoods that the planning director is eager to show.

“This was called Castle Park — this subdivision. This was laid out in the early to late teens,” Segedy said, pointing to an old brick landmark that looks like a rook from a chessboard on the corner of West Market and Melbourne Avenue.

“I’m so glad these are still here!” he said.

It’s an area of old brick streets that have been largely kept up over the years — and where the houses were built one at a time by a variety of

Akron city planning director Jason Segedy describes these homes on or near Lownsdale Avenue in the Wallhaven neighborhood as “Hobbit Houses.” (Dan Shingler)

builders from the early 1920s and through the 1950s. As in most of Wallhaven, a long lull of inactivity stretched between 1920 and 1946. It was depressing, to say the least, but today …

“The mix of houses is incredible. It does not look cookie-cutter at all,” Segedy said, noting that houses in the Castle Park area have been kept up over the years and are a great value with prices of about $150,000 for homes in good shape.

‘Hobbit Houses’ It’s one of Segedy’s favorite residential areas within Wallhaven; the other lies along the border of Frank Boulevard Park, which separates the neighborhood from Fairlawn Heights with a large, wooded ridge.

Driving along a section of Lownsdale and South Pershing avenues, Segedy begins to point out some houses that hardly look like they’re in Akron.

“There are about 30 of these. I’ll call them Hobbit Houses. They’re Tudors and were all designed by an architect named Roy Firestone,” Segedy said, driving through flashes of bigtree light.

Not only does the verdant neighborhood look like something out of Ireland, or the shire, but the shaded homes have mostly slate roofs that give them an ageless appearance.

Along Lownsdale, they back up to the park, which makes them appear as they were they were built on the edge of a large forest.

“I’d say most people in Akron have never been on this street or know this is even here,” Segedy said.

Although those two neighborhoods are among his favorites, Segedy said Wallhaven has a lot of housing options, from small apartments and condos to large and expensive houses.

“There are parts of the neighborhood where you could get houses for $75,000 … Then there are parts of the neighborhood where you could spend $250,000 or $300,000,” he said.

“It doesn’t have a street as grand as Merriman Road, but there are still some nice, high-end houses in Wallhaven.”

But, of course, a good neighborhood needs more than good housing, and that’s especially true in the eyes of someone like Segedy, who is a fulltime evangelist for urban living in neighborhoods that are walkable, bikable and full of easy-to-reach amenities. Wallhaven’s got that too,

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he said, and is gaining new attractions and stores all the time.

“I think it actually has the best business district in the whole city from a functionality standpoint,” Segedy said as we headed toward where West Market Street intersects with West Exchange Street and South Hawkins Avenue at the heart of Wallhaven’s commercial district.

Foodie heaven This is a sacred site to many area foodies. It’s home to the very first Swensons Drive-In, which opened here in 1934 as a tiny hamburger stand in the middle of nowhere on the edge of town.

Today, the area around that intersection is still where the action is, especially recently.

The biggest deal is that a 30,000-square-foot Whole Foods 365 grocer is set to open Sept. 14 in the newly developed West Market Street Station. The site used to house the West Point Market, so it’s always been a busy business hub. Today, it’s undergoing a renovation that made Segedy grin as he pulled into the parking lot of Piada Italian Street Food, one of his favorite places to grab a bite and part of the retail center that will include Whole Foods.

Part of a chain, Piada opened June 13 and is no doubt eagerly awaiting the opening of Whole Foods, the end of related construction and the expected increase in traffic to come.

Not that it’s waiting to serve up fast, high-quality Italian fare.

“We’ve already been very busy,” said Steve Green, partner in charge of the location.

The retail center also has a natural pet food store, PetPeople, along with Salon Lofts and Anthony Vince Nail Spa as tenants. But more retailers are expected to come, said Jeff Garrison, a partner with Georgia-based S.J. Collins Enterprises, the site’s developer.

In addition to Whole Foods, the site includes another 22,000 square feet of space that Garrison said his firm will lease, and he thinks it’s in an ideal location for today’s market, which is why his firm and Whole Foods selected the Wallhaven site to begin with.

Initially, they thought they might head toward a more upscale area, like Fairlawn, but Wallhaven won them over.

“What we saw as we took a more street-by-street look is that even though the Wallhaven market is a little older … what we saw was these were truly urban, educated people with well-kept houses,” Garrison said.

Wallhaven also has little niche pockets of retail — sometimes quirky, trendy or otherwise a bit further from

The first Swensons Drive-In opened in Wallhaven in 1934.

(Courtesy of the city of Akron)

Ken Stewart’s Grille in Wallhaven helped launch Northeast Ohio as a foodie destination. (Shane Wynn for Crain’s)

Piada Italian Street Food opened its Wallhaven spot in June. The location already is seeing brisk business.

(Shane Wynn for Crain’s)

the mainstream that you’d expect to find next to a new Whole Foods.

“There’s kind of a Highland Square

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: 216-522-1383 | www.crainscleveland.com | @CrainsCleveland Publisher/editor Group publisher Managing editor Sections editor Creative director Web editor Associate editor/Akron Assistant editor Senior reporter

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Today, a gleaming Swenson’s Drive-In stands in Wallhaven, with its car hops running as usual. (Shane Wynn for Crain’s)

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Assassin Tattoo Studio serves a diverse clientele, from doctors to lawyers to factory workers. (Shane Wynn for Crain’s)

vibe developing,” Segedy said.

It’s still an all-Akron vibe, though — one that belies the city’s gritty, in-

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dustrial roots at times. Case in point: Akron is home to a popular tattoo shop, Assassin Tattoo Studio. It sits

tucked away just a few blocks away at 1947 W. Market St. Owner Rich Griggs bills the place as the city’s top-rated tattoo shop. That’s not an issue we’re willing to weigh in on in a tattoo-rich town like Akron, but the place does well in online reviews and, more impressively, supports nine tattoo artists, Griggs said.

In fact, business is so good that he says he’d like a new, bigger place after just two years in his current spot.

But Griggs wants that place to be in Wallhaven, where he has lived for the past six years. He’s already moved the shop once.

“I love the neighborhood so much.

We just moved across the street,” Griggs said.

What’s not to like? he asked. Crime is low, Highland Square is right up the street, there are plenty of other busy places nearby to keep traffic flowing and more to come with Whole Foods. Perhaps most importantly, Wallhaven has the right mix of people — those urban or edgy enough to want a tattoo but educated enough to afford a good, $100-perhour hour artist at Assassin.

“I’m tattooing lawyers, doctors — all the people I thought would never get tattoos are the people who can afford them,” Griggs said.

And guess what? They — along with techies, medical professionals, factory workers, educators, business people and other engaged citizens — are also the folks Segedy and retailers hope will continue to keep Wallhaven healthy and diverse.

Segedy smiled as he pulled out of Assassin’s lot — still tat-free but glad to see customers going into the shop.

“That illustrates the diversity I’ve been talking about. There’s Whole Foods in this neighborhood, and there are tattoo places. It’s got a little bit of everything … That’s Wallhaven,” he said.

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Dennis Felton

Men’s basketball coach, Cleveland State Dennis Felton waited eight years to get another chance to be a head coach. Before Cleveland State called last spring, Felton spent four years in the NBA, including three as the San Antonio Spurs’ director of player personnel, and three as an assistant at the University of Tulsa. ¶ “I was confident — as confident as you can be in something that you don’t have entire control over,” the 54-year-old said, when asked how sure he was that he’d get another opportunity after getting fired by the University of Georgia in 2009. ¶ His third shot to run a program — Felton also had a successful five-year run at Western Kentucky from 1998 to 2003 — comes with a daunting set of challenges. The Vikings had just nine victories in each of the last two seasons. But Felton, who has 184 career wins and has led his clubs to four NCAA tournament appearances, is undaunted. — Kevin Kleps

Five things Iconic tastes Felton loves music. His favorite comes from Parliament Funkadelic — the popular collective fronted by George Clinton.

Road trip!

When he was coaching Georgia, Felton was introduced to Clinton through mutual friends. “Whenever I can, I’ll just pick up and go see him,” the coach said.

Coach he looked up to Felton grew up in the D.C. area as a huge fan of former Georgetown University boss John Thompson. “I dreamed of playing for Georgetown,” the Howard University grad said.

Basketball is in their blood Felton and his wife, Melanie, have two sons, Jazz and Nile. Jazz is a graduate assistant on his father’s staff at CSU, and Nile is a sophomore guard at George State University.

Close to campus Dennis and Melanie will be living in downtown Cleveland.

Lunch spot Elements Bistro 2300 Euclid Ave., Cleveland 216-802-3131 www.elementsoneuclid.com

The meal One (the hungry reporter) had the chicken fajita wrap with a garden salad and water; the other (the uber-busy basketball coach) just had a side salad and water.

The vibe The restaurant, located in the Parker Hannifin Administration Center at CSU, is reasonable and heavy on local products. The food is good, too.

The bill $15.12, plus tip

You mentioned that you want to “aggressively” grow the program.

How do you do plan to do that?

It starts with having an ambitious vision. And then you have to, for everyone that’s involved, you have to sell that vision — paint the picture for people. Hopefully it’s vivid enough where they can feel it, sense it, buy into it and get excited about it. Everything starts in our own locker room. Not only with building a championship culture and building expectation in our locker room, but also building a culture that’s going to support and sustain that vision and that ambition. That goes with the standards we build, and building up our behavioral habits to support those goals.

Generating interest has been a problem for Cleveland State. How much of a challenge is it, with the Browns, Cavs and Indians getting so much of the fans’ attention?

I’ll start by saying that’s clearly our biggest challenge here with this job — building the kind of fan support that we want to enjoy and that’s really required to get to where we plan on getting. I couldn’t sit here and list all the ways right now, but it all kind of falls under the umbrella of really working at it — everything from being resourceful, constantly putting our heads together to think about all the different ways we might attack it, to me and our staff and our team getting out there in the community. It means taking advantage of everything that we can think of.

After you were hired, one of the things people said is yes, you’ve had success, but you don’t have Ohio ties. Is that important?

That would dismiss the notion that I have the ability and the willingness to develop relationships. The flip side of that is I’m coming into this community in regards to a lot of people with a clean slate and nothing to hold against me. And the truth is, people in the basketball community know me fairly well because I come here as a head coach with somewhat of a national profile, just in terms of the things I’ve accomplished as a head coach before. My experience has been that even when I first meet coaches in this community for the first time, they’ve already had a very good opinion of me and a certain degree of excitement about me being in the community.

Your predecessor, Gary Waters, had quite a bit of success before the program fell on hard times. Do you believe CSU can be a big-time winner?

Absolutely, and it will. We’re going to build something that not only wins at a high level, but that can be sustained over a long time with consistency. To do that, I think you have to be a little more methodical.

You can’t take shortcuts to just win right away, at the expense of taking those steps that build your culture and build a roster that can withstand all of the challenges and adversity that every enterprise, every team, faces. You don’t want to skip too many steps in the process, or else it’s a house of cards that can be a flash in the pan and be right back where you started. We want to build it where it can stand the test of time.

How much homework do recruits do on your background? Do they know that you have NBA ties with San Antonio and Phoenix?

They don’t have to take a deep dive, because I’m going to tell them. I’m going to tell them everything about me. To me, that’s where the force of personality becomes really important.

I not only need to tell them about my background — what I’ve done, where I’ve been — but I have to tell them about the impact my different experiences have had on me and helped me become the coach that I am today. One of the first things I tell players when I start recruiting them is I’m a relationship-based coach. So to start that relationship, I want to share my heart with them.

Not only do I want them to know who I am because I think it will help us succeed, I want them to know who I am so that they know what they’re getting into and can feel like it’s the right fit for them when they make their choice. I don’t want them to get here and be surprised by anything.

How do you look at scheduling from Cleveland State’s perspective? Are there things you’d like to do differently?

Nothing that specific. It’s a matter of scheduling smart based on where we’re at in the building process and basically giving ourselves a chance to build momentum, but also with opportunities to make statements.

And those opportunities, as we build and get better, those opportunities will become more and more aggressive.

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