Crain's Cleveland Business

VOL. 39, NO. 32

AUGUST 6 - 12, 2018

Source Lunch

Akron

Jon Pinney, managing partner, Kohrman Jackson & Krantz LLP

Squirrels’ spinoff targets cryptocurrency industry Page 36

Page 39

CLEVELAND BUSINESS

The region’s wealthiest suburbs Page 34

HUMAN RESOURCES

REDEVELOPMENT

THE 2018

Equity fund looks at a redo of its own

ARCHER AWARDS

Cleveland International Fund sees slowdown with visa uncertainty

Celebrating Northeast Ohio HR professionals who consistently hit the mark

By JAY MILLER jmiller@crain.com @millerjh

A Cleveland private equity fund that has raised $240 million to support local building projects is retooling.

The federal government is having second thoughts about its EB-5 visa program, which rewarded wealthy international investors seeking to emigrate to the United States. As a result, the Cleveland International Fund (CIF), which has used the EB-5 program to raise money that was invested in projects including the redevelopment of Cleveland’s Flats East Bank and in University Hospitals Health System’s expansion, has seen the flow of interested investors slow down. It also has CEO Steven Strnisha looking for new strategies that will allow CIF to continue to support itself — and Northeast Ohio’s growth.

CIF is registered as a regional center with the U.S. Citizenship and Immigration Services (USCIS) and is allowed to pool capital from multiple foreign investors for investment in economic development projects in Northeast Ohio. In return, the investors are eligible for what are called EB-5 Investor, or employment-based, visas that entitle investors and their families to entry and permanent residency status in the United States.

Through the EB-5 program foreign nationals, their spouses, and unmarried children under 21 years old become eligible for green cards if they invest at least $500,000 in developments that create or keep 10 permanent full-time jobs for U.S. workers.

The List

PAGES 12-24

ERC & CRAIN’S 2018 WORKPLACE PRACTICES SURVEY

Hiring, retaining employees continues to be top challenge

By BETH THOMAS HERTZ clbfreelancer@crain.com

Hiring and keeping talented employees has long been a top challenge for local companies but the problem seems to have gotten worse in the past year.

It wasn’t just the top challenge cited by par-

ticipants in an annual survey done by the Employers Resource Council in Highland Heights, in partnership with Crain’s Cleveland Business.

It outranked all the other 19 “challenges” combined.

Fifty-one out of 111 respondents gave “hiring and retention of talent” as their answer; the next most frequent responses were managing organizational growth by nine, generat-

ing revenue/controlling costs by six and fundraising/grant renewals by another six.

This has been the top response for eight years, but not by so much. Margaret Brinich, ERC’s manager of surveys and research, attributed the uptick to the current job market, as well as the fact that hiring and retention is an ongoing issue.

SEE SURVEY, PAGE 6

SEE FUND, PAGE 37 Entire contents © 2018 by Crain Communications Inc.

SPECIAL CUSTOM SECTION

HR Guidebook << Practical workplace advice

from Northeast Ohio’s experts Pages 25-33

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CRAIN’S CLEVELAND BUSINESS

CleveMed wakes up to possibilities of services

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

CleveMed has been offering monitoring devices for sleep disorders testing for about a decade, but just three years ago decided to add services to its offerings, propelling forward the company’s growth.

Hani Kayyali, president and CEO of Cleveland-based CleveMed, said the company is projecting 40% growth in revenue this year, following 19% and 27% revenue growth in 2016 and 2017, respectively.

In part, that’s driven by its timing in the market, which Kayyali said has an increased awareness of home sleep testing.

In 2011, CleveMed launched SleepView, now its flagship sleep monitoring device, which is portable and available for use in the home. (Contributed photo)

“So there’s more and more demand for again, a convenient and less expensive way of diagnosing sleep apnea, which is in the home,” he said.

Sleep apnea is a sleep disorder in which breathing repeatedly starts and stops.

About a decade ago, CleveMed launched two sleep monitors, SleepScout and Sapphire, which were larger monitors designed for in-lab use.

In 2011, the company launched SleepView, now its flagship monitoring device, which is portable and available for use in the home.

As SleepView took off, CleveMed realized it would need support services and rose to meet that demand.

Three years ago, the company began offering SleepView Direct, a mail or-

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der service that served as a logistical solution for health care providers. It’s been growing by about 10% a month for the past year and a half.

“Being a small company, we’re nimble and agile, and so we respond to market demands quickly,” Kayyali said.

Once a patient is screened for obstructive sleep apnea, a physician can send an order to CleveMed to fulfill the test and send a sleep monitor to the patient. This, Kayyali said, allows sleep physicians and their staff to focus on patient care and not have to worry about inventory and scheduling patients for sleep studies.

“We handle all of those logistical things for the sleep physicians,” he said.

CleveMed also offers the option of its own sleep technologists to score the data and test results, a service that helps some sleep physicians with high patient demand, he said.

Vijay Iyer, vice president of business development for BioEnterprise, said this type of strategy — integrating services as part of an innovative offering — isn’t uncommon. When delivering a technology offering, companies can find there are complexities in doing so, which “requires you to answer and gives you opportunities to add more offerings and services to what you can charge for,” he said.

“So it allows you to kind of derive more value from the market, from the company’s perspective,” Iyer said. “And of course we at BioEnterprise like that because it also broadens the economic impact that company can have, because typically it involves more jobs, better workforce development … so overall it’s a very positive thing.”

CleveMed’s technologies and services are projected to be used in more than 40,000 studies this year, up from 30,000 last year, Kayyali said.

At the end of July, CleveMed was issued a new patent titled “Method and device for sleep analysis,” which covers the collection of patient data from standard home sensors and the data transfer via internet, cellular or wired methods, among others. Kayyali said the company expects to receive three more key patents this year.

“We have been fortunate enough to have a strong intellectual property patents to help us in securing these patents,” he said.

Insurance has also been a main driver in the increasing awareness of home sleep testing as a monitoring option. They’re driving solutions that are more convenient and less costly, like SleepView.

“They’re recognizing that OK, well this is now a major cost,” Kayyali said.

“They would like to essentially find solutions. … Insurance companies are driving to a large degree the home sleep testing solution.”

CleveMed has 13 full-time employees, with plans to hire at least two more before the end of the year, as well as 10 part-time employees and four contractors.

They’re on track to again have 18 full-time employees, which was their total about five years ago before having to cut staff. Many were switched to part-time, and as the company grows, it’s restoring some back to full-time and rehiring others, Kayyali said.

“Sometimes small businesses will have to go through the ups and downs,” he said. “And we have gone through the down period and certainly now going forward, we believe this will continue to be a strong upward trajectory and we have been showing that through the growth over the past couple of years.”

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PA G E 3

Churchill Steel owners step back to the plate

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

About 20 years ago, Kirk Mooney and Jim Fleming sold their steel plate service center.

Today, they own another one in the same building with many of the same employees.

Let’s rewind just a bit. Mooney and Fleming, along with their wives, are the owners of Churchill Steel Plate Ltd. in Twinsburg township. Mooney called it a “resurrection” of their former company, Oliver Steel Plate, which was sold in 1998 to A.M. Castle & Co. The new owner had continued to lease the Twinsburg township building owned by Mooney and Fleming until 2013, when it moved to Bedford Heights.

A representative of Castle Metals and Oliver Steel said the company declined comment.

Mooney said he tried to find a new tenant for the building for about six months after Oliver Steel moved, but people weren’t looking for a heavy industrial space like they had.

But he said he did hear “through the grapevine” that there were former employees willing to return if he and Fleming started up a business, so they decided to give it a chance.

Churchill got its start at the beginning of 2014 with 12 employees, all of whom Mooney said were from his former company.

President James E. Stevenson said there had been fears of a cease and

Churchill Steel is investing more than $2 million in its Twinsburg expansion. (Contributed photo)

desist order from the former company at the start, but it never happened.

Stevenson had worked at Oliver Steel early in the company’s history, under Mooney and Fleming’s ownership, and returned on their recommendation to run the company after it was sold. Now he’s rejoined Mooney and Fleming in their latest venture.

Churchill grew after a tough start.

The building was empty, and it was on the new company to restock it with equipment and inventory.

“So the first year, I think, was pretty much a start-up,” Stevenson said.

The steel market started to suffer in 2015, which halted the growing business. Still, there was little inventory for

Churchill to lose, and it was able to recover quickly when the market did.

Churchill Steel is a provider of steel plates and offers a variety of fabrication services, from flame and plasma cutting to grinding to heat treating.

Mooney said the company’s expertise is in processing thick plates and alloy plates. In particular, the thicker steel plates need to be heated appropriately before they can be cut, or they’ll crack.

It has three trucks for deliveries in a 50-mile radius and partners with companies for the rest. And it does its own quality testing. Stevenson said offering those services in-house

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helps the company keep its lead times short.

“So we went to the customer service end right off the bat,” Stevenson said. “So when we respond within an hour on a quote and our lead times are shorter than the market, we felt we could be pretty successful.”

Today, the company has about 50 employees, and it’s in the midst of an expansion. Churchill Steel would not share annual revenue.

Churchill Steel is investing more than $2 million in its expansion, Stevenson said. Mooney said it’s expected to be complete by the end of September.

The expansion will add about

38,000 square feet to the 120,000-square-foot building at 7851 Bavaria Road. (A small amount of the space is currently leased to a saw-cutting company and to an IT company.)

Mooney said the expansion will give the company the space to spread out its inventory and to operate more efficiently. Stevenson said in the longterm, the space could accommodate more equipment.

But Churchill isn’t necessarily looking to add to its capabilities.

Churchill Steel is a niche business, Stevenson said, and it wants to stay in that niche. It focuses on the plate business, which is not typically the case at the bigger shops, he said. And he said about a quarter of its sales are to its competitors, providing them with products they don’t stock.

Mooney said the company’s customer base has been growing monthly. Churchill Steel serves a diverse range of industries, from special machinery to tool and die to energy.

About 40% of the products are shipped to Ohio, Stevenson said. The rest is shipped across the U.S. and Canada.

Robert S. Kagler, Twinsburg township manager, called Churchill an “amazing success story” of individuals starting over.

“They knew what to do and they did it again,” Kagler said.

The township, along with the joint economic development district it’s part of, supported the business with a grant for new or expanding businesses. And it provided a tax abatement with the county for the expansion.

PA G E 4

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CRAIN’S CLEVELAND BUSINESS

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It’s hard to say if Front Porch Media Network will grow into the next NPR of the podcast world — it has a really, really long way to go to even get close — but that won’t stop it from trying.

The Lakewood media startup, whose mission centers on creating a diverse array of podcasts, has been largely flying under a lot of radar screens since it began offering a series of four original shows online a few years ago. Its roots begin with founder Joan Andrews, producer of Lake Effect Radio, Front Porch’s majority owner, recording family-friendly and safe-for-work shows from the attic and porch of her Lakewood home (which helped inspire the name).

In January 2017, Andrews hired Mike DeAloia, a serial entrepreneur in Northeast Ohio and the former “tech czar” for the city of Cleveland.

DeAloia has been charged with turning Front Porch Media from a relatively dormant company with a handful of shows and a few listeners into a viable, growing business.

A lot has happened since then.

The firm has inked several partnerships, bought a few shows — it’s on the hunt for more — and merged in a design agency via Moss Media last summer, a move adding its founder, David Moss, to the executive team as chief creative officer.

“That’s when we hit the ground running,” DeAloia said. “We want to establish a global brand that we just didn’t have before all this.”

The show list has doubled from four to eight as of today. There at least six others in pre-production, some of which are on track for release this fall. And there are already 400-some other episodes sitting in the catalog awaiting a strategic release.

The staff in the Lakewood studio off Detroit Avenue — where there’s a bit of a “Mad Men” vibe aesthetically — has grown from DeAloia and two interns 20 months ago to a full-time staff of 10 with a couple other contracted employees and a consultant.

A partnership with Midroll now lets Front Porch in a slew of other podcasts as well. Another deal with Salem Media Group, made last fall, allows the firm to take up dead air on its network. And a recent revenue-sharing agreement with Akron-based Twin Sisters Digital Media — which has an audio catalog with more than 1,200 audiobooks and e-books, plus a library of children’s songs — marks another significant growth development.

Besides selling ads across shows, which isn’t terribly lucrative just yet with a small audience, the startup is generating new revenue through corporate podcasts. That all follows about $1 million of capital that has been raised and channeled through Lake Effect.

There are plans to soft launch a second platform for shows that may not fit the Front Porch identity called Evergreen Podcasts expected to debut in late August or September.

Some content from Twin Sisters is expected to align with that. Yet another platform is in the works, called Retrotone, focusing on music-related content.

Craig James, host of the “Big Audacious Idea” podcast on Front Porch Media Network, records a show. (Contributed photo)

The business was moving so fast that everyone was starting to show signs of burnout. So about a month ago, staff took a short break from the business for a refresh.

“We took a pause on things because the staff, we were just running them ragged,” DeAloia said. “It was like, OK, we’ve stormed the beaches of Normandy. Now we have to figure out how to get through the hedge rows of Northern France and into Paris. We were stuck in the hedge rows.”

Scattering seeds While growing into a prosperous business is an obvious goal, the mission of Front Porch, DeAloia said, is to build a community around their content that engages, entertains and informs. The four original shows are “I’ve Heard that Song Before”, which compares different renditions of jazz standards; “Novel Conversations,” which offers quick refreshers on classics of American literature; “What’s So Funny?”, a comedy podcast originally recorded for radio that ran up until 2008 featuring Dave Schwensen that Front Porch is re-releasing nowadays in seasons; and “Green Light,”

“It’s really more of a media agency kind of model where we can collaboratively and quickly grow our demand numbers and grow our presence in the space.”

— David Moss, chief creative officer

a movie-review podcast with short episodes just seven-to-12-minutes long.

From a business perspective, building a community means creating content that engages people in novel and numerous ways. Online, a show may come with a transcript, link to related books, or include songs, videos or even activities.

The idea is to build a show log people are engaged with and effectively “scatter seeds,” Moss said, because “one of these shows could be the one that gets us over 100,000 downloads and pulls the whole network up.”

The intent is to build lots of shows because finding that gem among

them, the one that becomes a super hit, is largely a numbers game.

“We’re also building a collaborative network,” Moss said. “We are able to attract other podcasts at different points in their life cycle. They’ll come onto this network, and we’ll help them with sales and marketing and presentation. It’s really more of a media agency kind of model where we can collaboratively and quickly grow our demand numbers and grow our presence in the space. And there’s some big competition there.”

Last week, Front Porch bought Pit Pass Moto Podcast from Pit Pass Media. The deal is slated to close Monday, Aug. 6, and will add hundreds of new shows. It’s an example of a niche show that’s both family-friendly and has potential to grow into something much bigger with the right execution. DeAloia indicated he has vision of sub shows within that, like Pit Pass Indy or Pit Pass NASCAR. The trick is balancing new material and presentation without losing the character of the show that drew people to it in the first place.

“There are ways we don’t need to reinvent the wheel,” Moss said. “But there are some things we’re going to do different from the big podcast groups we’re aspiring to compete with. We’re going to innovate for sure.”

“We’re picking the best pieces out of everyone’s strategies in the podcast marketplace,” DeAloia said.

The firm would not disclose revenues, but they’re building up quickly from virtually nothing, doubling in 2017 over 2016, DeAloia said.

The firm logged 25,000 total downloads in 2017, but with a growing catalog of content, it had doubled that as well before mid-year.

Although standing out from a mob of podcasts is rough, DeAlois feels Front Porch is making the right moves at the right time. He joked how there’s a perception that radio is a dying form despite being a $17 billion industry last year. Podcasts only did about $380 million, though. The gap there suggests that podcast companies have plenty of runway to grab listeners.

“I think terrestrial radio still has a part to play in podcasts because they’re just radio in a downloadable format,” DeAloia said.

“NPR will probably always be the dominant network, though,” Moss said.

“Well, yeah, until we beat them,” DeAloia quipped.

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PA G E 5

Credit unions still seeing strong loan growth

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

Although credit unions have been dwindling for decades at a rate comparable to smaller commercial banks, their loan growth actually continues to outpace growth of their for-profit competitors.

Credit unions in Ohio and across the United States are seeing strong growth across the board in all key metrics for loans, members and total assets.

According to the Ohio Credit Union League, credit union loan portfolios in Ohio have grown by 7.1% in the past decade compared with 2.1% for the banking sector (excluding JPMorgan Chase Bank, the largest bank in the country). In the same time, assets have grown by 5.4% while members have grown 1.3% to 2.9 million people.

That all comes as the number of all credit unions has decreased by 31% nationally and by 33% in Ohio itself (where there were approximately 276 credit unions at the end of 2017) since 2007. Like the other metrics, the trends for credit unions in Ohio tend to generally mirror the national sector.

So while today’s environment continues to drive consolidation — which might otherwise be a sign of a flailing industry — those trends are a promising sign of the sector’s health.

They also indicate that the nonprofit realm of financial services is increasingly relevant today despite commercial banks controlling more than 12-times as much of the country’s bank-held assets.

“There are forces, like increased loan demand from consumers, that give us a lot of reason to be optimistic about the rest of 2018 and beyond,” said Ben Laurendeau, president and CEO of Firefighters Community Credit Union.

That sentiment is particularly meaningful coming from Laurendeau. Firefighters, which has about $256 million in total assets, is seeing negative loan growth and a reduction in membership. Those trends are due to some unique events happening there, though, including losing a relationship with a local mortgage broker — putting a dent in its production of first mortgages. Meanwhile, efforts are underway to purge inactive accounts and to improve credit quality in the indirect auto portfolio, which has reduced originations in that business so far this year.

“We are OK with this as we are hopefully adding engaged members while removing disengaged members even though the net growth figure isn’t impressive,” Laurendeau said.

As far as the consolidation trend, he said that’s not a cause for concern because of the other signs of health in the credit union sector.

“I think it’s a necessary evolution of the industry and the credit unions that remain will be larger and will be able to use the additional resources gained from some economies of scale to invest more in technology, spend more and get better at marketing, and focus more on growth strategies,” he said.

Costs and consolidation The consolidation trend has been in effect for financial institutions for the past 30 to 35 years, said Mike Schenk, chief economist for the Credit Union National Association (CUNA), the industry’s trade group. While credit unions have decreased nationally by 3.7% between 2007 and 2017, they’ve dropped 4% for commercial

banks in the same time frame.

But where banks are acquiring one another, credit unions, which have no stockholders, are simply merging together. One activity is driven by profits for shareholders, while the other is driven more altruistically by customer service.

Like community banks, costs of regulation are what put the smallest credit unions in the greatest bind.

Schenk said that industry wide, there has been an $800 million increase in regulatory costs over the past two years.

The most recent survey found that the industry’s 5,600 credit unions incurred $6.1 billion in regulatory related costs annually. That amounts to about 0.46% of total assets in the sector.

That means credit union income could be about one-third greater if

not for regulations.

“So it really is true when community bankers are telling you they are seeing big increase in regulatory costs that we are seeing the exact same thing,” Schenk said.

Credit unions, by their nature, are generally much smaller than banks.

The median asset size for a single credit union today is just $31 million versus $213 million for banks. The average size for credit unions is $246 million compared with $3 billion for banks.

So there’s inherently less scale to absorb those costs.

Commercial banks, meanwhile, have other methods to grow income, including adding other business lines or providing a slew of fee-based services.

SEE CREDIT UNION, PAGE 38

Firefighters Community Credit Union president and CEO Ben Laurendeau is optimistic for 2018, despite negative growth and a reduction in membership. (Contributed photo)

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â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not just getting people in, itâ&#x20AC;&#x2122;s keeping them there in a tighter job market,â&#x20AC;? she said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not a one-time challenge, but an issue that needs to be addressed in many small ways along the way to keep people engaged and happy. How could that not be the hardest thing?â&#x20AC;?

The survey simply asks â&#x20AC;&#x153;What is the top challenge for your business?â&#x20AC;? and lets respondents fill in the blank.

The fact that they write this information down on their own â&#x20AC;&#x201D; they arenâ&#x20AC;&#x2122;t choosing from a multiple choice list, for example â&#x20AC;&#x201D; means this answer is being offered organically, she said.

Lori Springer, human resources manager at A. Raymond Tinnerman Industrial Inc.â&#x20AC;&#x2122;s Brunswick location, overseeing about 80 employees, said voluntary turnover at her company, which manufactures fasteners, is quite low (1.2% last year), but recruiting is a different matter. Some of the companyâ&#x20AC;&#x2122;s skilled positions are especially tough to fill, as younger people have less interest in manufacturing.

The company has had the most success by bringing in entry level personnel and training the successful ones to move up, she said. It has used sites such as LinkedIn to recruit but has had good results with more old-fashioned methods â&#x20AC;&#x201D; placing signs in front of the building and using word of mouth, such as offering incentives for employee referrals.

At Maloney + Novotny LLC, a regional public accounting firm in Cleveland with 140 employees, retaining employees is the biggest challenge, as the talent pool in public accounting isnâ&#x20AC;&#x2122;t terribly big, said Edward Evans, human resources director. â&#x20AC;&#x153;A lot of firms are fighting for that talent,â&#x20AC;? he said.

The firm knows its employees get

Challenge Hiring and retention of talent

What are the greatest strengths of companies today?

Count 54

Managing organizational growth

9

Generating revenue/ controlling costs

6

Fundraising/Grant renewals

6

Competition

5

Changes in marketplace/ industry

3

Strength Employees

Count 33

Quality of product/service provided

21

Company culture

15

Knowledge and experience

10

Customer/client relationships

9

Tenure/retention

8

Flexibility/agility

5

Reputation/history

5

3

Mission/vision

4

Culture

3

Leadership

4

Compliance with government regulations

2

Growth

3

Innovation

2

Aging workforce

2

Benefits package

2

Change management

2

Financial strength

2

Market uncertainty

approached about other opportunities frequently, so one thing it does is work to make sure they feel connected and informed. For example, it recently took the staff from all five of its offices to a daytime Cleveland Indians game and shared annual briefings about the firm before serving a lunch and enjoying the game. â&#x20AC;&#x153;The more we can communicate with employees, the more receptive they are to that communication,â&#x20AC;? Evans said.

Probably the companyâ&#x20AC;&#x2122;s most successful recruitment vehicle is its intern program, he said. Of about 10 interns hired each year, eight or nine typically are extended offers of permanent employment.

Mike Rao, president of The HR Group, a company that offers organizational development and general HR services out of Medina, offered this ad-

vice on the topic of hiring and keeping good people: â&#x20AC;&#x153;Hire slow and fire fast.â&#x20AC;?

Most people hire based on their own personal biases without doing pre-employment testing to assess psychological makeup, IQ and aptitude, he said. The information that can be obtained during such screenings will help the hiring manager know whether the person is motivated, how they want to be managed, what is their ideal work environment â&#x20AC;&#x201D; are they â&#x20AC;&#x153;wiredâ&#x20AC;? to be successful in the role for which they are applying. â&#x20AC;&#x153;Companies often fail to understand what success looks like in a certain role and what do we need to make sure that we ensure an individualâ&#x20AC;&#x2122;s success,â&#x20AC;? he said.

Not finding ways to get employees highly engaged means losing people, especially younger workers today who often value engagement more

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than more money, Rao said.

“Every employee wants to know that they are making a contribution,” he said.

Perhaps not surprisingly given the heavy emphasis on hiring and retention in the survey, “employees” was the top answer given in response to the question “What is your greatest strength?” Thirty-three companies gave that response, ahead of quality of product/service provided (21) and company culture (15).

“Having a good quality of employees translates well into the quality of your product,” Springer said.

Most of the area’s workers can rest easy about their job security. Just 4% of companies in the survey said they anticipate layoffs in 2018, down from 10% last year. None of the companies interviewed for this article said they expect layoffs.

Northeast Ohio organizations were invited to participate in the survey in April via email invitation and other promotions. The 111 participating organizations represented a wide variety of business type — 52% were from the manufacturing sector, 28% from non-manufacturing and 19% from non-profits. They also encompassed a variety of sizes — 22% had 1-50 employees, 25% had 51-100 employees, 33% had 101-200 employees and 20% had over 200 employees. The majority of respondents (58%) came from Cuyahoga County.

They were asked for their thoughts on the current business climate, compensation, benefits, recruiting and hiring, workforce, communication, training and development, and safety.

Compensation In terms of compensation, projected base pay increases for 2018 were right about the 3% that is often now seen as fairly standard.

“It’s a tight labor market but we re-

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A U G U S T 6 - 12 , 2 018

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PA G E 7

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

Yes, offers All organizations

94%

Average percent increase in company’s health insurance premium:

Average percent of health insurance premium paid by employees: Average 28%

Industry

No, does not offer 6% Yes, matches 88% 12%

Average 9.19%

All organizations Industry

Manufacturing

30%

Manufacturing

Service

24%

Service

7.76%

Nonprofit

23%

Nonprofit

6.44%

Organization size

No, does not match

Companies offering Flexible Spending Accounts or Health Savings Plans:

10.74%

23%

1-50 employees

51-100 employees

32%

51-100 employees

Over 200 employees

26%

Over 200 employees

58% No, does not offer FSAs 42% Yes, offers HSAs 67%

Organization size

1-50 employees

Yes, offers FSAs

9.34% 13.62% 6.75%

No, does not offer HSAs 33%

Compensation Average base increase projected for hourly workers in 2018: All organizations

Hourly 2.80%

Industry

Average base increase projected for salaried workers in 2018: All organizations

Salary 2.89%

Industry

Average bonus amount in dollars:

Minimum hourly rate paid to employees: Average $11.82

All organizations Industry

All organizations

C g Bonus $2,842

Industry

A

I

Manufacturing

2.90%

Manufacturing

2.91%

Manufacturing

$11.75

Manufacturing

$2,982

M

Service

2.61%

Service

2.80%

Service

$11.87

Service

$2,515

S

Nonprofit

2.76%

Nonprofit

2.84%

Nonprofit

$11.29

Nonprofit

$2,930

N

Organization size

Organization size

Organization size

Organization size

O

1-50 employees

2.49%

1-50 employees

2.61%

1-50 employees

$11.78

1-50 employees

$2,160

1

51-100 employees

2.76%

51-100 employees

2.90%

51-100 employees

$12.20

51-100 employees

$2,897

5

Over 200 employees

3.01%

Over 200 employees

2.99%

Over 200 employees

$11.22

Over 200 employees

$4,364

O

ally haven’t seen the corresponding wage growth that anybody would like to see,” Brinich said.

However, more employers do appear to be using other types of compensation to reward top employees.

For example, almost 60% said they provide non-management employees with cash bonuses of some sort.

This is the highest percentage of the sample doing so since 2013. The average bonus amount was $2,842.

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CRAIN’S CLEVELAND BUSINESS

ERC & CRAIN’S 2018 WORKPLACE PRACTICES SURVEY

REDEFINING CORPORATE HOSPITALITY

ERC SURVEY Workforce CONTINUED FROM PAGE 7

Companies anticipating any layoffs in 2018:

Workers at the lower end of the pay scale did see some wage growth though: the survey showed the second highest minimum hourly rate since it began in 2001, at $11.82 per hour ($11.51 last year).

Yes, anticipating layoffs

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Companies do seem to be stepping up their game a bit in terms of benefits. Almost all (94%) said they offer a 401(k) or 403(b) retirement savings plan. A growing number also provide some sort of matching contribution — 88% this year, the second highest percentage since this question was added to the survey in 2004 (95% offered a program last year, and 83% offered a match).

An increasing number of companies are offering “Safe Harbor” plans, in which they contribute to a retirement plan even if the employee doesn’t. Brinich said this particularly appeals to younger workers who don’t feel they can, or need to, withhold money from their own paychecks yet.

“It’s another retention tool,” she said.

Rao said he agrees that some companies are amping up their benefits packages today. He has seen some offer pet insurance or gym membership, or even deductible-free health coverage. Springer agreed, and said her company’s benefits now include financial educational courses during the work day that workers seem to appreciate.

Health insurance premiums inched up a bit again this year (up just over 9% on average, compared to 8.6% last year). The average percentage of health insurance premium paid by employees was 28%, nearly

home options at 41%.

A strong majority of participants (82%) said they offer their employees at least some financial assistance toward education or job-related training. The percentage of the HR budget defined for these purposes rose to an 18-year high of 13%.

4% No, not anticipating layoffs 96%

Other findings

Average percentage of employees that left voluntarily in 2016: All organizations

Percent 10%

Industry Manufacturing

11%

Service

11%

Nonprofit

8%

Organization size 1-50 employees 51-100 employees

5% 8%

101-200 employees

13%

Over 200 employees

16%

identical to last year. More companies (67%) are offering health savings plans to help their workers with the costs of health care — up from 53% last year. Flexible spending accounts are available at 58%, up slightly from last year.

The number of paid holidays that full-time employees receive is one of the most consistent benefit benchmarks recorded by the survey each year. It was 9.2 days this year, barely changed from 9.1 last year.

Just over 40% of employers offer paid-time-off banks instead of separating vacation days, personal days, sick days and others into separate buckets, up from 35% last year.

Flexible work options are available at 49% of employers, with work-from-

The survey also showed that the use of technology continues to grow across the work cycle, from online job boards (used by 89%) to webbased training options (71%).

More companies are using social networking for recruitment. Sites such as LinkedIn and Facebook grew 7%, up to 81% of the sample.

Brinich said high rates of social media use for recruiting can be linked back to the tight job market.

Tools like LinkedIn let employers keep an eye out for “passive candidates” who might be interested but who are not actively reaching out yet.

Companies are also using social networking more often to communicate with clients, customers and vendors, with it overtaking “email newsletters” as the primary mode of communication to that audience.

Workplace safety issues were found to be on the rise slightly, with 8% of companies saying they have experienced an incident of violence in the past two years. This is double what was reported in 2017. Manufacturing companies had the highest number (14%).

This year also saw the highest percentage of employers with a policy explicitly prohibiting firearms and other weapons from the workplace, at 89%.

About 80% of companies require pre-employment drug screenings, and nearly one-third said they randomly test for substance abuse.

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PA G E 10

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A U G U S T 6 - 12 , 2 018 |

CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

Blockland might be the big idea Cleveland needs

Editorial

Try harder There aren't many sure things these days. But one of them is this: Ask a corporate hiring manager about the biggest challenge he or she faces, and the answer will be some variation of "hiring and retention of talent."

Sure enough, if you read the Page One story this week about an annual survey done by the Employers Resource Council in Highland Heights, in partnership with Crain’s Cleveland Business, you'll see that hiring and keeping talented employees isn't just the top challenge cited by respondents. That issue was cited more than the other 19 challenges mentioned in the survey combined.

We've heard this so consistently, for so many years, from companies of all sizes across a range of industries, that we have no doubt it's true. Employers really do find it hard to find good people, and to hang onto them once they're in the fold.

And yet, some numbers still gnaw at us.

As Bloomberg noted on Friday, Aug. 3, upon release of the federal government's jobs report for July, "Average hourly earnings increased 2.7% from a year earlier, unchanged from June and matching projections. Wages have remained in a holding pattern below the highs of the last expansion, despite persistent complaints from employers that they’re struggling to find skilled workers and job openings near a record high."

Far down in the report issued by the Bureau of Labor Statistics, you'll find this sentence: "In July, average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents to $27.05." Over the year, the 2.7% hike means average hourly earnings have increased by ... 71 cents.

Veteran economics writer Daniel Gross, in looking at the economic data, tweeted last week, "The unemployment rate is (about) 4.0%. Immigration is done. Baby boomers are retiring.

Not sure why it is not clear to industries that they have to raise wages — significantly — to fill open positions."

The ERC survey found that projected base pay increases this year are around 3% — a little better than what's being seen around the country, but not really enough to move the hiring

needle.

“It’s a tight labor market but we really haven’t seen the corresponding wage growth that anybody would like to see,” says Margaret Brinich, ERC’s manager of surveys and research.

Tax reform legislation enacted last year was supposed to unleash a big windfall for workers, as the corporate tax rate was slashed to 21% from 35%. So far, though, the windfall's a light breeze. Companies that say they're having a hard time finding workers need to look harder at their compensation structures and ask if they're really doing everything they can to fill open positions.

Hold steady

Ohio has again implemented reform of the state's payday lending industry.

We hope the Legislature and state regulators are vigilant in making sure it goes better than the last effort at reform.

Gov. John Kasich last Monday, July 30, signed into law House Bill 123, the Fairness in Lending Act, which goes into effect in October. It will, among other measures, cap interest rates on short-term payday loans at a 28% annual interest rate; impose a maximum monthly fee of 10% capped at $30; close loopholes that allowed companies to issue loans through other sections of state law; and limit monthly repayments on loans to no more than 6% of the borrower’s gross monthly income.

Payday lenders aren't happy about this, and as Cleveland. com reported, the Ohio Consumer Lenders Association is "still exploring its options" to challenge the legislation.

In 2008, when Ohio last attempted reform, the effort was a bust as lenders exploited legal loopholes to continue to charge high rates. For the 2018 effort — which advocates say will save consumers about $75 million annually — to have teeth, the state must vigorously enforce the new law and be ready to amend it as needed.

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

CLEVELAND BUSINESS

CLEVELAND BUSINESS

Managing Editor:

Scott Suttell (ssuttell@crain.com)

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Timothy Magaw (tmagaw@crain.com)

Contact Crain’s :

216-522-1383

Wouldn’t it be great if a decade from now we look back at the summer of 2018 as the turning point for Northeast Ohio? As the moment we really got started on finding solutions to what is holding back our region: the lack of job and population growth.

It’s already the summer the conversation got serious, thanks to Jon Pinney, managing partner of law firm Kohrman Jackson and Krantz. He delivered a thought-provoking speech on June 8 at the City Club of Cleveland titled, “Dead Last: Northeast Ohio’s Economy is Lagging and It’s Time to Do Something About It.” You can read more about Pinney in Jay Miller’s Source Lunch feature on page 39 of this edition of Crain’s Cleveland Business.

In the time since Pinney’s remarks, discussions have been happening around town and in the pages of Crain’s and other publications. And it’s not just talk. Ideas are Elizabeth being floated, solutions are being offered McIntyre for strategies to reverse the trend that sees Northeast Ohio losing population while other regions in Ohio are gaining.

One thing we can’t avoid discussing is how risk-averse our region is. We used to churn out thinkers who took big risks: Garrett Morgan, John D. Rockefeller, Charles Brush, to name a few.

Somewhere along the way, we lost the ability to take a chance. And when entrepreneurial-minded people come up with a creative idea, our default setting seems to tend toward shooting the idea down rather than figuring out how to make it happen.

Yes, we need to do the little things right. Yes, a series of small ideas can snowball into a big one. You can’t throw everything into every moonshot idea that comes along. But if you never think big, you’ll never accomplish big things.

Enter businessman and car dealer Bernie Moreno. He’s got a bold idea, one that’s worth listening to. Northeast Ohio should get out of its comfort zone and give blockchain a chance.

Here’s the crux of Moreno’s concept: Make Cleveland the hub for blockchain technology. His working title: Blockland.

Not familiar with blockchain? You should be. It’s an emerging technology, think of it as a digital ledger, most often associated with Bitcoin and other cryptocurrencies.

But its potential is so much bigger. It can be a huge, decentralized record-keeping system that tracks transactions securely, quickly and transparently. Decentralized means difficult to hack. From hospital records to government uses including voting, the applications are limitless. Moreno thinks it’s the wave of the future and wants Cleveland on that wave. It’s worth listening and exploring.

And Moreno is making it easy. He’s not all talk. He’s already flown a contingent of local leaders, including presidents of local universities, to Toronto on a fact-finding mission. (Teaching students to code the cryptography needed for blockchain applications would be a local pipeline for local jobs.) And he has set up a blockchain conference, called “Solutions,” for early December. It’s an aggressive timeline and it shows his seriousness and commitment.

If we look back on 2018 as the year Cleveland became Blockland, great.

If that doesn’t pan out quite like Moreno hopes, we’ll still have benefited from the spirit and the hustle.

It’d be just fine by me, and I’d bet with you, too, if we look back on 2018 as the year Cleveland — and that means all of us who live in, work in or care about Cleveland — got serious about pursuing big ideas, and solving big problems.

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 ClevEdit@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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PA G E 11

At the Table

Chef Eric Wells built culinary business two dinners at a time Working in a restaurant provides a chef more than a paycheck.

It gives a chef an address where people can return to enjoy his or her work. Itâ&#x20AC;&#x2122;s a Joe platform. And if a Crea chef has a real spark of talent, itâ&#x20AC;&#x2122;s a place where he or she can launch a career.

So how do you build a reputation and a fan base and become one of the cityâ&#x20AC;&#x2122;s most respected culinarians if you donâ&#x20AC;&#x2122;t have a steady gig?

Somehow, Eric Wells manages.

Wells is a personal chef â&#x20AC;&#x201D; a â&#x20AC;&#x153;chef for hire,â&#x20AC;? one who produces meals for couples and small and large private occasions through his Skye LaRaeâ&#x20AC;&#x2122;s Culinary Services. While others pursue similar paths, cobbling their livelihoods by cooking for the wellheeled or catering events, Wells, 45, seems to live life with a flourish.

He was one of about two dozen chefs, most associated with any of Clevelandâ&#x20AC;&#x2122;s most acclaimed restaurants, spotlighted in the prestigious Autism Speaks benefit headlined by Michael Symon July 28 at the Cleveland Museum of Art. He holds a spot on Cuyahoga Community Collegeâ&#x20AC;&#x2122;s Hospitality Management Programâ&#x20AC;&#x2122;s 2018 Culinary Council, which hosts the cityâ&#x20AC;&#x2122;s annual Cleveland Eats culinary fest, set for Sept. 15 on Mall B downtown. Along the way, Wells has cooked on Fox 8 TVâ&#x20AC;&#x2122;s morning show nearly 50 times. â&#x20AC;&#x153;You sort of have to do your best to make things happen,â&#x20AC;? Wells said during a recent conversation.

But a business such as his is far more than rainmaking, he explained. â&#x20AC;&#x153;I just try to be authentic. I try to treat everyone the same, and I respect the craft,â&#x20AC;? Wells said. â&#x20AC;&#x153;What I do is not a hustle. This is not just me making money â&#x20AC;Ś I love doing what I do.â&#x20AC;?

You could pretty much chalk up Wellsâ&#x20AC;&#x2122; rise to prominence as the confluence of a lot of hard work, a sensible measure of self-promotion, and his willingness to help wherever he sees the need. Years before he became a marquee player, I found him volunteering behind the scenes at chili cook-off fundraisers and the Fabulous Food Show. Heâ&#x20AC;&#x2122;s the guy who steps up without expecting an invitation on a silver platter.

Born and raised in the Mount Pleasant neighborhood in Cleveland, Wells grew up helping out in his motherâ&#x20AC;&#x2122;s kitchen. â&#x20AC;&#x153;The story is, I always cooked a lot with my mother, Nina Wells, when I was young. I loved it, just loved it, and she taught me so much,â&#x20AC;? he recalled. â&#x20AC;&#x153;When I was a kid, she had a â&#x20AC;&#x2DC;Betty Crocker Cookbook,â&#x20AC;&#x2122; and on the cover was a picture of chicken cacciatore.

Well, that got me. And one summer, when I was 8 years old, I begged her all summer to let me make that recipe. And finally she gave in, went up to the store and bought all the ingredients. So I went and followed the recipe to the letter and created the juice.

We had tomato juice everywhere.â&#x20AC;?

Heâ&#x20AC;&#x2122;s laughing now, but the results resonate to this day. â&#x20AC;&#x153;My family, and especially my father â&#x20AC;&#x201D; who was a really picky eater â&#x20AC;&#x201D; loved it. And I was hooked,â&#x20AC;? Wells said.

Skye LaRaeâ&#x20AC;&#x2122;s Culinary Services owner Eric Wells has built a reputation as one of Northeast Ohioâ&#x20AC;&#x2122;s top chefs. (Contributed photo)

The budding cook went on to graduate from John Marshall High School in 1990. He then started studying journalism at Cleveland State University, but â&#x20AC;&#x153;that cooking thing stuck with me,â&#x20AC;? he said.

Along the way, his motherâ&#x20AC;&#x2122;s health was failing, and she died in 2003. â&#x20AC;&#x153;Before she died, she told me to pursue this gift I had,â&#x20AC;? Wells said.

But by that time he and his wife, Lori Fenderson-Wells, had two daughters and a mortgage. â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t know how Iâ&#x20AC;&#x2122;d do it. I didnâ&#x20AC;&#x2122;t have the money. I was working in customer relations at Progressive Insurance and for the Ohio Lottery.

But my family decided to take some of my motherâ&#x20AC;&#x2122;s insurance money and use it for me to go to culinary school,â&#x20AC;? he said.

As he continued working, Wells enrolled in the International Culinary Arts and Sciences Institute in Chesterland, the school operated by local cooking star Loretta Paganini. After graduating, he took side jobs preparing dishes for coworkers and producing romantic dinners for couples. That became Wellsâ&#x20AC;&#x2122; signature specialty, one he built on when he finally felt confident enough to leave his fulltime work and step out on his own.

Bumps in the road clarified and solidified his resolve. First, there was an ill-fated try at a restaurant in Bratenahl Place that never got off the ground. Later, he took on an enterprise in Tremont, Ligaliâ&#x20AC;&#x2122;s Place, which opened in March 2014 and closed less than 18 months later because of conflicting goals between Wells and the businessâ&#x20AC;&#x2122; financiers. â&#x20AC;&#x153;I was happy they sought me out and gave me the opportunity,â&#x20AC;? Wells said, â&#x20AC;&#x153;and I was happy to learn what I learned, and move on.â&#x20AC;?

Flying solo, he learned, has strong advantages beyond the risks, he said. â&#x20AC;&#x153;I set my own schedule, have full autonomy, can change my menus right away on the website. And just the ability to take off a weekend to celebrate my anniversary with my wife, that means a lot.â&#x20AC;?

The other edge to the sword, he quickly added, is lack of time with his

family. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m very busy,â&#x20AC;? he said. â&#x20AC;&#x153;I have events scheduled 10 or 12 days straight, at a stretch.â&#x20AC;?

Bookings range from dinners for 18 to 20 guests, staged in the homes of clients, to mid-sized weddings.

Six-course dinners for two, his specialty, are priced starting from $200 to $275, with six menus from which to choose. Clients can add alcohol for an additional charge. A tip is optional but standard.

In addition, Wells teaches cooking classes at Corn-U-Copia in the Burten, Bell, Carr Community Development Center on Kinsman Road in his old neighborhood.

Word of mouth is, by far, his strongest marketing tool. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s huge,â&#x20AC;? Wells said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d say itâ&#x20AC;&#x2122;s about 75% of my business. Iâ&#x20AC;&#x2122;ll get, â&#x20AC;&#x2DC;I heard about you from my friendsâ&#x20AC;&#x2122; â&#x20AC;&#x201D; maybe a couple who got married two years ago â&#x20AC;&#x201D; and theyâ&#x20AC;&#x2122;ll then want me to do a dinner for their parents, or another couple. And of lot of couples Iâ&#x20AC;&#x2122;ve done meals for end up proposing and getting married!â&#x20AC;?

That may be why he sees his work as much as a manner of livelihood as a ministry, he said. A devout Christian, Wells serves as deacon at New Community Bible Fellowship in University Heights. And although his professional gigs include whatever the market and a contract calls for, his specialty is cooking for couples. â&#x20AC;&#x153;So I use doing what I do as a ministry. As Iâ&#x20AC;&#x2122;m cooking for couples, weâ&#x20AC;&#x2122;re talking about their relationships, their marriage or friendships, traveling â&#x20AC;Ś all kind of things like that. â&#x20AC;&#x153;Of course, when itâ&#x20AC;&#x2122;s a couple I DONâ&#x20AC;&#x2122;T know, Iâ&#x20AC;&#x2122;ll ask sort of impersonal questions: How did you meet?

What things do you find you have in common? And so on. And if we get into things that indicate that theyâ&#x20AC;&#x2122;re not religious, thatâ&#x20AC;&#x2122;s fine. I keep it general. I donâ&#x20AC;&#x2122;t force my beliefs on anyone. I keep it very general but respectful.â&#x20AC;?

He continued, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a whole lot of work, but a huge blessing. And every day I look at what I do as a second gift my mother gave me.â&#x20AC;?

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CRAIN’S CLEVELAND BUSINESS

2018 ARCHER AWARDS

Honoring a set of regional resources Now in its eighth year, Crain’s Archer Awards program celebrates Northeast Ohio’s human resources professionals who “hit the mark.” In partnership with Howard & O’Brien Executive Search, we are honoring human resources professionals who are building companies with the best people, talent, development and culture. Winners in the HR Executive of the Year private and nonprofit categories, as well as the HR Team, Organizational Development and Talent Management categories, will be announced at the Aug. 16 event at the InterContinental Hotel Cleveland.

HR EXECUTIVE OF THE YEAR | 13-15

TALENT MANAGEMENT | 20-21

INNOVATION | 23

HR TEAM | 16-17

RISING STAR | 20

LEADERSHIP AND DIVERSITY | 23

ORGANIZATIONAL DEVELOPMENT | 18-19

PRADCO AWARD | 22

THE JUDGES | 24

To register for the Aug. 16 Archer Awards, visit crainscleveland.com/Archer or contact our events team at 216-771-5424 or clevents@crain.com.

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

Dan Lewis Executive in residence, MetroHealth

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

When Dan Lewis became chief operating officer for MetroHealth, he wanted to be successful not only for the sake of the health system, but for the human resources industry overall.

Lewis, who’s spent more than 30 years in HR, was representing the ability of human resources professionals to step into a strategic, C-suite role within an organization.

“Obviously I didn’t want to let the

system down, because it was a big job and we were looking for operational excellence so that we could get financing for transformation and, more importantly, deliver on our commitment to our patients,” said Lewis, who stepped down as COO at the start of this year and is now MetroHealth’s executive in residence. “So I felt a lot of pressure there, but I’ve gotta tell you there was another type of pressure. I was representing the HR profession. If I didn’t succeed, people would say, ‘Well, he had an HR background. What the hell did he

Lewis

know?’ I wanted to do it so whoever coming up behind me whether here or at some other industry would be able to say, ‘Well, he did it. I can do it.’ ” In his time as chief operating officer, Lewis helped oversee a transition to a new form of leadership that aligned the administrative and clinical leaders of the organization.

Often, in a siloed model, the leaders from the business and clinical sides of the health system would each make decisions and find a big gap between the sides.

Lewis helped to lead

the development of a dyad leadership structure while also shifting the organization from departments to a service line model.

“That is unbelievably difficult to do,” said Dr. Akram Boutros, president and CEO of MetroHealth. “And the fact that he and Dr. (Alfred F.) Connors (Jr.) were able to do it without any defection of the leadership of the clinical departments is unheard of. And to do that at the same time as creating a dyad model for all the service lines in the organization is really very unique, and to do it successfully.”

SEE LEWIS, PAGE 24

CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018

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ARCHER AWARDS

HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

Kent Dubbe

Ashley Petrecca

Vice president, human resources and organization development, Ariel Corp.

HR director Pepperl+Fuchs Inc.

When Kent Dubbe joined Ariel Corp. 17 years ago, revenue for the Mt. Vernon-based manufacturer of gas compressors was less than one-sixth of revenue today, and Ariel was “still in the entrepreneurial/founder mode and needed to transition Dubbe to the next level for growth,” according to the nomination.

“It was clear to me, from about 2001, that my mission would be to affect that transition, and it was my great good fortune that we had just hired Kent,” said the company's chairman, president and CEO, Karen Buchwald Wright, in the nomination.

Early on, during a 2002 downturn, Dubbe guided the development of a reduction-in-force plan that helped the fledgling firm become leaner while maintaining valuable team members, including the core engineering group who had extensive product knowledge. That experience

fostered a “hire hard-fire easy mentality” that, Wright said, “has stood us in good stead” through two subsequent down cycles.

Dubbe also introduced and then executed a six-shift production for the hourly workforce, allowing the company to operate 24/7, about 355 days a year, and to ramp-up faster when markets recover. He also launched a broad management structure, which led to the creation of training and co-op programs with various colleges and universities and provided a new talent pool for Ariel.

In addition, Dubbe has been integral in helping Wright develop a strategy for transition of the family owned business to the next generation.

“Kent’s expertise has allowed him to drive initiatives within the business in the same way a COO would, focusing on results that add significant value to the bottom line,” the nomination said. — Judy Stringer

Ashley Petrecca is not likely to forget 2017.

As German process automation supplier Pepperl+Fuchs prepared to move some manufacturing from its North American headquarters in Twinsburg to Katy, Texas, 1,300 miles away, Petrec- Petrecca ca was tasked with managing redundancies, relocations and hiring 110 new personnel — about one-third of its workforce. Simultaneously, she was overseeing the integration of new employees following a 2016 acquisition.

Then, Hurricane Harvey hit and damage from a tornado associated with the storm delayed the Katy plant’s opening. Two nominations submitted on Petrecca’s behalf credit her leadership with Pepperl+Fuchs’ smooth navigation of the challenging transition. It was able to do so, the nominations stated, because Petrecca notified personnel affected by the move two years in advance and made those employees “her top priority.”

“Because of the way the employees were treated on the front end, more than half of them were willing to come back and help out the company when it was in need,” said Janet Rohlik, director of business development for Pradco, in her nomination.

“Ashley shows people they matter and treats them as valued employees.”

A sampling of Petrecca’s other contributions include the introduction of employee surveys and team-building events, the transition from a fully insured to a self-insured program, a competitive analysis of the employee benefits program and the launch of its first wellness initiative.

“She truly cares for our people,” Pepperl+Fuchs COO Robert Smith said in the nomination, “and we are told by people and organizations from outside our organization that we have an enviable culture, and we have Ashley to thank for that.”

— Judy Stringer

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018 HR EXECUTIVE OF THE YEAR (PRIVATE) FINALIST

HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

Andy Panega

Tami Caplan

Corporate vice president, human resources, The Lubrizol Corp.

Senior vice president of the Mandel Leadership Excellence Center, Jewish Federation of Cleveland

At year’s end, Andy Panega will be retiring from The Lubrizol Corp. in Wickliffe, but his impact on the $6.5 billion specialty chemical maker will be felt for many years to come.

In his six years as Lubrizol’s human resources Panega leader, Panega drove “significant improvements” in talent development and acquisition, diversity and inclusion, succession planning and global benefits as “would be expected” for someone in his position, CEO Eric Schnur said in the nomination.

“What sets Andy apart, however, is his drive to improve the entire business,” Schnur said. “He thinks and acts like a business owner.

“Due in large part to his passion and commitment to improving Lubrizol’s results and ensuring a great future for the company and our employees, we have embarked on perhaps the most significant effort to evolve our company culture that has

occurred throughout our 90year history.”

At the center of Lubrizol’s cultural shift is a strengthened focus on accountability. According to the nomination, Panega began working with Partners in Leadership, creators of the bestselling book, “The Oz Principle,” shortly after Schnur was named CEO early last year, and Panega led the initiative to integrate an individual component into the Wickliffe company’s annual incentive plan.

“Results versus effort became the new strategy,” the nomination said, adding that all Lubrizol employees were asked to provide accountability statements, with Panega overseeing the rollout.

Though he will not see the progress through his retirement, “these efforts are already having a very positive impact on our results and on our employees’ enthusiasm for the company and our opportunities,” Schnur said in the nomination.

— Judy Stringer

In her eight-year tenure with the Jewish Federation of Cleveland, Tami Caplan has had the distinct responsibility of not only overseeing all aspects of human resources for its professional staff but also supporting the volunteer needs of the secular nonprofit and its 15 Caplan beneficiary agencies.

Among Caplan’s key contributions, according to the nomination, are leadership in more clearly articulating the Jewish Federation culture, and aligning actions and behaviors to that statement. Staff members, for example, are encouraged to complete culture cards that recognize behavior in line with organizational thinking. Cards are given to recognized employees to post at their workstations, shared with the employees’ supervisors and highlighted at all-staff meetings. In addition, elements of the culture statement are incorporated into performance reviews.

She also led the charge to update a

behavioral-based assessment used to screen candidates, adding facets of emotional intelligence — which, president Stephen Hoffman said in the nomination, are “critical to their success at federation” — and Caplan has taken a deep dive into volunteer leadership development.

A Gestalt Professional Certified Coach, she redesigned the Mandel Course for Advanced Leadership to focus on leading with vision and developing a community of skillful and collaborative leaders dedicated to creating a vibrant Jewish future for Cleveland.

“She has also opened up federation staff training opportunities to beneficiary agency staff and reached out to several agencies to get a better sense as to what their learning needs were for their staff members,” Hoffman said. “Several of the classes offered this year were either new or greatly refined based on this input.”

— Judy Stringer

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ARCHER AWARDS HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

HR EXECUTIVE OF THE YEAR (NONPROFIT) FINALIST

Harold Harrison

Deborah Southerington

Chief human resources officer, Cleveland Metroparks

Vice president, human resources, Council for Economic Opportunities in Greater Cleveland

Over the last 100-plus years, Cleveland Metroparks has evolved from a 3-acre parcel in Rocky River to more than 23,000 acres across 18 reservations, eight golf courses, dining, retail and a nationally recognized zoo. As the size and scope has grown, so has the employee base, rang- Harrison ing today from exotic animal veterinarians and law enforcement personnel to natural resource managers and golf professionals.

Harold Harrison has managed this broad mix of talent since 2010 and through some of the park district’s most successful endeavors, including the recent lakefront acquisition, which, according to the nomination, required Harrison to oversee “the quick and significant expansion of the Cleveland Metroparks Ranger Department to ensure safety” and the development and expansion of dining operations.

The nomination also cited Harrison’s recent leadership in upgrading the organization’s onboarding and re-

cruitment/retention processes. He launched “Park Culture 100,” an interactive, week-long training program in which new hires connect with the park’s history and leadership and obtain “a 90day plan of action that sets them up for success.” In addition, he introduced a video pitch for high-level positions and an online recruitment system that simplifies and expedites the hire of seasonal workers.

In the nomination, Cleveland Metroparks CEO Brian Zimmerman said Harrison deserves much of the credit for the park district being named the 2016 National Gold Medal Award for Excellence in Parks and Recreation Management, which recognizes the importance of professional development, and its frequent listings on the local NorthCoast 99.

“He is a leader in forward-thinking initiatives that help streamline processes and allow us to best serve the public,” Zimmerman said.

— Judy Stringer

Southerington also Many of the things Debospearheaded a review of HR rah Southerington brought policies and staff salaries, to her role at the Council for which culminated in Economic Opportunities in CEOGC’s first board-apGreater Cleveland aren’t proved salary structure enumerated in the job dewith job ratings and a salary scription, CEOGC president scale. In addition, she manand CEO Jacklyn Chisholm aged and guided the orgasaid in the nomination. nization through its first-evOf particular note, Southerington er layoffs, supervised a Chisholm said, Southerington excels at being “an honest payroll system upgrade and engenbroker for staff that are experiencing dered a collaborative relationship with CEOGC’s fiscal department, challenges with each other.”

Southerington joined CEOGC in which had been strained in the past, March 2016 as the nonprofit, which according to the nomination.

“She’s made policies easier to unoperates Head Start, was in the midst of a “total transformation” driven in derstand and enforce, staff more part by inconsistent HR policies and willing to interact and assist each the staff’s perception of favoritism in other, and the leadership team more HR decision-making, according to mindful of the impact of decisions on the nomination. She quickly assessed the staff,” Chisholm said. “She develthe team's strengths and weaknesses oped her team and provided much and created opportunities for profes- leadership and mentoring that is evisional development, which had not denced by higher productivity within been available previously. She pro- HR and the broader agency commuvided staff a forum to share ideas and nity viewing the HR department as a improved communication and team resource rather than an obstacle.”

— Judy Stringer building.

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018 HR TEAM OF THE YEAR (PRIVATE) FINALIST

HR TEAM OF THE YEAR (PRIVATE) FINALIST

Vocon

Westfield Insurance

The current state of recruiting in the architecture and design industries is one filled with extreme challenge, according to the nomination. While the economy is recovering and long-term investments in construction projects are being made, there is a significant talent Austin shortage.

It was under these circumstances that Cleveland’s Vocon recently was met with a huge opportunity. A client offered Vocon the chance to expand its New York-based account nationwide.

“The catch was we needed to build a network of Vocon team members in 13 different geographic locations where we currently had none,” the nomination stated, “and we only had four weeks in which to do this.”

The company’s two-person HR department of Susie Austin and Ali Powers — known at Vocon as “The Austin Powers Team” — rose to the occasion. The duo leveraged not their own profes-

sional networks but enlisted Vocon’s 150 team members to extend their reach. They vetted and identified candidates, negotiated and executed employment agreements, and onboarded the new hires in the time allotted, according to the nomination.

Powers All the while, it said, the Austin Powers teammates maintained their normal level of service, which includes an already demanding pace of talent recruitment to support growth in Vocon’s New York and Cleveland offices. In 2017 alone, they onboarded 35 full-time hires and 28 interns and contract employees.

Debbie Donley, owner and principal at Vocon, said in the nomination, “I marvel at their ability to recruit and hire the finest talent in the country despite the ‘talent war’ that has existed in our industry for people for over a decade.”

— Judy Stringer

Westfield Insurance’s mission is to sustain a “culture of caring” that benefits its colleagues, customers and independent agents, all while developing a diverse assemblage of talented and engaged people.

According to the nomination, Westfield’s human resources team is at the epicenter of the company’s talent management and business strategies, effectively meeting long-term employee engagement, talent attraction and community support goals through robust programming.

“People are the key to Westfield’s success,” the nomination stated. “The HR team delivers targeted human capital programs such as a state-of-the-art recruiting and onboarding experience, compensating with market-based pay and delivering a total rewards package to ensure the daily achievement of Westfield’s goal to attract, develop, empower and retain quality people.”

A key facet in reaching these objectives is “Westfield Careers,” an electronic applicant system that streamlines manual processes and provides data to other HR systems.

Once hired, employees filter HR-related queries into an easy-to-use contact center, receiving assistance from the center itself or a human resources specialist.

As for outreach, Westfield has adopted several programs to provide work opportunities for minority youth and young adults with disabilities. INROADS, for exam-

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HR TEAM OF THE YEAR (NONPROFIT) WINNER

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Northeast Ohio VA Healthcare System

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As veterans have more medical management options than ever, the work of the Northeast Ohio VA Healthcare System’s human resources team is crucial in providing a comfortable health care home for men and women of the armed forces, the nomination stated.

The system’s 70-person HR division attracts skilled and capable veteran candidates, resulting in a 26% military employee population. According to the nomination, veterans prefer to receive care from others who served, relishing the camaraderie and veteran-to-veteran interaction not seen in private sector care.

In 2013, the system participated in a pilot program that hired former military medics, tasking the HR team with developing a position that leveraged a candidate’s training and experience. Now known as Intermediate Care Technicians (ICTs), this landmark classification led to the rapid growth of similar programs throughout the country, the nomination said.

Through HR’s efforts, the system also donates educators to the Leadership Development Institute, an initiative that trains administrative and clinical leaders from four states.

Closer to home, the team implemented Unit Practice Councils (UPC), appointing frontline staff in bettering patient outcomes, system improvements and overall employee engagement. There are currently 33 active UPCs implementing hundreds of projects across the health care system.

According to the nomination, the HR group has been the largest contributor in the system’s rapid expansion.

During the period from 1995 to 2018, the organization went from serving 39,000 veterans to 112,000 veterans. At the center of the 24-county health care system is a 590-bed medical center, surrounded by 13 community-based outpatient clinics, a free-standing hemodialysis center, an ambulatory surgery center, two community resource and referral centers, and a homeless domiciliary. — Douglas J. Guth

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Alco Manufacturing

Westfield Insurance’s HR team

ple, prepares young people of color for corporate positions in a variety of industries.

Westfield’s HR efforts are a response to, in part, the national insurance industry’s need to replace more than 295,000 agents by 2022. Engaging current and potential employees will go far in helping the insurer meet the challenges ahead, wrote Chris Paterakis, Westfield’s chief human resources officer.

“HR’s strategic and operational activities drive meaningful change,” Paterakis said in the nomination. “We are committed to retaining the elements that make our organization unique and differentiated while continuously transforming our people practices to prepare for the future.” — Douglas J. Guth

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HR TEAM OF THE YEAR (PUBLIC) WINNER

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People Analytics, KeyBank

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PA G E 17

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HR TEAM OF THE YEAR (PRIVATE) FINALIST

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Aware that would-be and current employees must take priority, KeyBank has simplified its recruiting process and utilized data to reduce worker turnover.

Key’s information-driven efforts were led by Amanda Cruz, digital recruiting and analytics consultant, and initiative development manager Jeannie Fanning, the nomination Cruz stated. By taking a collaborative approach backed by detailed research, Key’s HR organization cut attrition in the company’s contact center by half over the previous year, reduced the number of pages in its applications by 40%, and estimate that candidates will spend 20% to 50% less time in completing an application.

According to the nomination, the team is also nearing completion of a Fanning candidate-centric Key career site redesign, providing additional transparency around the information sought by applicants and eliminating corporate speak and complex navigation.

Meanwhile, a comprehensive approach to “human capital” decision-making is at the core of Key’s People Analytics Community of Practice, a group of HR professionals who meet biweekly to discuss best practices in driving data-based HR decisions.

“The predictive modeling approach is being adopted by other groups, from redefining onboarding for new hires, to streamlining the training modules that impact performance, to prioritizing workload for compensation reviews,” the nomination stated. “Candidate experience work will result in more quality candidates in our recruiters’ pipelines and improve our employer brand, conveying to candidates that Key is fast, efficient and tech savvy.”

In performing this undertaking, Key’s HR division helps meet long-term company priorities in developing a talented workforce, catalyzing employee engagement, and improving organizational effectiveness, the nomination said. — Douglas J. Guth

While there are good days and bad in the world of human resources, the HR division at Alco Manufacturing worked diligently in 2017 to keep the Elyria company on the “good” side of the ledger.

Alco is a manufacturer of precision machined components used in the transference of fluids, specifically water and hydraulic fluid.

Under the direction of manager Nicole Yingling, coordinator Paul Copley and generalist Nicholas Whited, the Alco HR team helped blend key pillars of the larger organization — benefits, payroll, policies, insurance and procedures — to unify the company as “One Alco,” the nomination stated.

According to the nomination, Alco also continued down a path of significant growth in 2017, increasing its revenue by 45% over the previous year and building its workforce through advertising and rigorous community outreach.

Other highlights of the team’s 2017 was an employee recognition program created to reward good deeds. Semi-annual food events, meanwhile, brought employees together and

Yingling

Copley

Whited

created an atmosphere of camaraderie within the organization, the nomination said. Further engendering that close environment are televisions in each Alco facility that broadcast important memos, associate birthdays and upcoming customer visits.

“Alco’s HR team truly is one of a kind,” the nomination stated. “A passion for continued education, the well-being of its associates, and dedication to the Alco family is what makes it noteworthy. Staying grounded, calm, cool and collected lets the Alco team create an environment of positivity.” — Douglas J. Guth

CUYAHOGA COMMUNITY COLLEGE (TRI-C®)

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HUDA FARUNIA CONGRATULATIONS on your recognition as the Crain’s Archer Award 2018 “Raising Star” Winner.

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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

CRAINâ&#x20AC;&#x2122;S 2018 ORGANIZATIONAL DEVELOPMENT FINALIST

ORGANIZATIONAL DEVELOPMENT FINALIST

Andrew Lam

Susan Crawford

Senior manager, organizational development, Shearerâ&#x20AC;&#x2122;s Foods

Human resources director, United Consumer Financial Services

Transformation through transparency: Thatâ&#x20AC;&#x2122;s the focus of Andrew Lamâ&#x20AC;&#x2122;s work and what he brought to Shearerâ&#x20AC;&#x2122;s Foods in Massillon.

With the company for just three years, Lam, who has a doctorate in industrial-organizational psychology, â&#x20AC;&#x153;has moved the organization from a â&#x20AC;&#x2DC;pencil and paper,â&#x20AC;&#x2122; â&#x20AC;&#x2DC;command and controlâ&#x20AC;&#x2122; culture to one that supports Lam open communication and the development of all employees,â&#x20AC;? the nomination states.

When Lam started at Shearerâ&#x20AC;&#x2122;s, he quickly realized there was a lack of communication between employees and managers. He worked to replace the â&#x20AC;&#x153;pencil and paperâ&#x20AC;? performance review with a biannual review process, which includes the 9-Box Succession Planning assessment tool, and fostered engagement and cultural strategies, role clarity and executive team building. His ideas about company culture have led to things like more flexible work schedules.

The new review process allowed the company

to identify and promote driven, high-potential workers. It also helped underperforming employees by providing development plans.

Lamâ&#x20AC;&#x2122;s initiatives fostered a culture in which employees now take ownership for the work, according to the nomination.

And that goes for the human resources team as well. â&#x20AC;&#x153;Two years ago, the focus of the HR managers was payroll and attendance, and now the managers are excited to discuss development, communication and ideas to develop the culture,â&#x20AC;? the nomination states.

Shearerâ&#x20AC;&#x2122;s recognizes the leadership they have in Lam. â&#x20AC;&#x153;He is recognized as a trusted expert to all. â&#x20AC;Ś He is known to be helpful, positive, practical, level-headed and committed,â&#x20AC;? said Brad Patrick, former executive vice president and chief HR officer at Shearerâ&#x20AC;&#x2122;s, and currently chief people and communications office at Valvoline. â&#x20AC;&#x201D; Sue Walton

R E G I S T E R T O D AY !

FAMILY BUSINESS FORUM From ESOPs and talent recruitment to managing relationship dynamics, establishing the next generation of leadership at your family business can be a tricky proposition.

In fewer than two years, Susan Crawford has made a big impact at United Consumer Financial Services.

Since joining the Westlake company in 2016, Crawford has helped reduce turnover by nearly 50% in an 18-month period, and turnover is on its way to dropping an additional 30% in 2018.

To help reach this point, Crawford automated processes to improve the Crawford onboarding of new employees, implemented a training system and improved employee access to information. â&#x20AC;&#x153;Susan believes in advancing the organization by helping the biggest organizational asset â&#x20AC;&#x201D; employees â&#x20AC;&#x201D; perform at their highest levels and grow in their roles with our company, no matter what that role, and everything she does leads our employees to want to be the best they can be,â&#x20AC;? the nomination states.

Among her initiatives is a leadership training program, along with a workbook Crawford created, based on the book â&#x20AC;&#x153;The Self-Aware Leader: A Proven Model for Reinventing Yourself.â&#x20AC;? The program has led to higher professionalism, better succession planning, better management and coaching skills, and increased personal employee satisfaction.

Crawford also heads up UCFSâ&#x20AC;&#x2122; Charitable Giving and Employee Engagement Programs that get employees involved to raise money for charity. Through Crawfordâ&#x20AC;&#x2122;s leadership, the company sees nearly 100% employee participation. â&#x20AC;&#x153;Having personally recruited Susan to UCFS, she has played a vital role in helping to transform our organization from outdated practices to automated business methods, a higher level of professionalism and a company that excels at employee engagement and workforce productivity,â&#x20AC;? Joseph M. Francesconi, UCFS president, said in the nomination. â&#x20AC;&#x201D; Sue Walton

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PA G E 19

ARCHER AWARDS ORGANIZATIONAL DEVELOPMENT FINALIST

ORGANIZATIONAL DEVELOPMENT FINALIST

Michelle Goad

Nicole Price

Global talent development leader, Lubrizol Corp.

Director, learning & development and organizational effectiveness, FirstEnergy Corp.

Michelle Goad is a human resources professional who also has a mind for business.

That combination “allows her to connect the dots when it comes to providing effective leadership,” the nomination states.

With Lubrizol for only three years, Goad has had an immediate impact with her collaborative and results-oriented Goad style, according to the nomination.

Goad already has helped create programs to propel the organizational and talent development at Lubrizol. She developed the company’s Women in Lubrizol Leadership (WILL) business resource group to develop female workers by helping them learn new skills outside their job, strengthen skills to approach difficult situations and broaden their internal network, among other things.

Goad also created a sales mentoring program for account managers to help sharpen skills. Early feedback shows the program helped the managers with career planning and organizational changes, the nomination said. And the company is now looking to expand the program to other employees.

Collaboration and a willingness to coach her peers have been key to Goad’s success.

“Michelle is a go-getter and will always go above and beyond to get things done. She is seen as a coach to others and will listen and give candid feedback,” Jason Case, global human resources director for Lubrizol Advanced Materials, said in the nomination.

Targeting her message and knowing when to look to external solutions has proved important, too.

“Michelle knows how to work well with external partners to bring in the right expertise to support the changes needed that add confidence and external perspective to her solutions,” the nomination stated. — Sue Walton

For Nicole Price and FirstEnergy Corp., it seems to be a case of the right person at the right time.

“It is important for individuals to be in a career they love at a time when the organization they work for needs it the most. That is exactly the experience Nikki is having at FirstEnergy,” Chris Walker, FirstEnergy vice president of human resources, said in the nomination.

With over 20 years in HR, Price returned to FirstEnergy in 2016. She previously worked for the Akron-based company from 2004 to 2013 before making stops at Beam Suntory and Honeywell Aerospace.

Upon her return, she got to work to revitalize the talent management system. She helped to develop a customized self-assessment for workers along with a “360 review.”

It wasn’t always an easy road, bringing about change, and Price was “faced with tough conversations with functional leaders when ideas did not align with the overall strategy,” the nom-

ination said. But she convinced people about how the initiatives would support FirstEnergy’s long-term goals.

Price’s work went beyond implementing new systems.

“Within her team, she has fostered a collaborative environment, stressing the imPrice portance of collective thinking, and ensuring that people are empowered to speak up and develop their skills,” the nomination states.

In the community, she often meets with other HR professionals to discuss challenges and experiences, and she has coached people in job search groups.

“Nikki is not only an HR leader, but a role model and mentor at FirstEnergy because of her strong leadership, guidance and loyalty,” the nomination states. — Sue Walton

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018

A

RISING STAR WINNER

TALENT MANAGEMENT FINALIST

TA

Huda Farunia

Melanie Lucas

S

Manager, talent acquisition Cuyahoga Community College

Director of people services, Jonathan Rose Cos. and Rose Community Management

Ta Be

Huda Farunia started as a human resources coordinator but quickly rose through the ranks because of her willingness to perform “other duties as assigned.”

Within two years, Farunia was placed in charge of Cuyahoga Com- Farunia munity College’s Jack, Joseph and Morton Mandel Leadership Development program, where she was tasked with duties ranging from budgeting to program planning.

Farunia was promoted to manager of talent acquisition, responsible for a staff of six while continuing to serve as manager for the Mandel Leadership Development program. Now in its 10th year, the yearlong program is filled with projects, workshops and mentors for employees with leadership and management potential.

“Her impact on this program and its participants has helped to shape annually upwards of 40 current and future leaders,” said Barry Royko, the program’s executive director of organizational development. “Huda’s impact from overseeing this program in support of employee development to new talent entering the college will continue to have a positive, long-lasting impact here at Tri-C.”

In just two years at Jonathan Rose Cos. in Independence, Melanie Lucas has made her presence felt in a big way.

She joined the real estate development company’s people services section in July 2016, after 15 years with what’s now Lucas called Forest City Realty Trust. Lucas wears many hats at the company, where she serves as “workforce strategist, organization and performance conductor, HR service delivery owner, compliance and governance regulator, and coach and advisor to the senior leadership team, executive compensation, and succession planning,” according to the nomination. Lucas also oversees functions such as communications, office management, public relations, safety, security and overall culture of the company.

Upon joining Jonathan Rose, Lucas became a member of a four-person team “that redesigned the human resources department, which resulted in a 10% cost reduction while improving service delivery,” the nomination stated. Lucas also developed a new organization structure “integrating talent develop-

Farunia isn’t content to operate behind the scenes by continually seeking opportunities to engage and interact with people within the college and in the community at large, the nomination said.

She has increased Tri-C’s diversity advertising efforts and added a question in the formal interview questionnaire that requires candidates to speak about their commitment to diversity and inclusivity.

She provides a formal onboarding process for new hires and mentors current employees to retain top talent. She also assists with internal transitions and restructuring as well as creating opportunities for internal promotions.

She started a new program, Leadership Integration for Tomorrow (LIFT), to encourage professional growth and cultural competency for employees who have been with Tri-C between six months and two years.

“Her many talents, skills and people connections will without a doubt carry her far in her HR career,” Royko said. — Nicole Stempak Editor’s Note: Farunia recently accepted a new job with Asurint.

Cleveland Metroparks would like to congratulate Chief Human Resources Officer, Harold Harrison, and his fellow Crain’s Archer Award finalists.

18 Park Reservations

ment, recruiting and diversity initiatives designed to increase company and leadership focus on human capital management as a value creator,” according to the nomination, and she was involved in designing the workspace for the Independence office.

“With the design of a communal café in the center of the office, she hosts team lunches twice a week and encourages all employees to utilize the communal space when they are not at their workstations,” the nomination stated. At the beginning of 2018, Lucas’ People Services team launched a wellness program for the company.

Lucas, a longtime member of the Society for Human Resource Management, “is an outstanding leader, collaborator, mentor and team player,” wrote Angelo Pimpas, former president of Rose Community Management, in a letter supporting her nomination. “She has always been able to find an incredible balance with what is both best for the employees and the goals of the company. She promotes a culture of dedication, fun and caring.”

— Scott Suttell

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PA G E 21

ARCHER AWARDS TALENT MANAGEMENT FINALIST

TALENT MANAGEMENT FINALIST

Sean Mooney

Westfield Human Resources

Talent acquisition manager, Bendix

HR Talent Engagement Team, Westfield Insurance

Keep it simple.

Thatâ&#x20AC;&#x2122;s Sean Mooneyâ&#x20AC;&#x2122;s motto, according to the nomination, and it reflects his approach to his responsibilities as talent acquisition manager for Elyriabased Bendix, a maker of products for commercial vehicle systems.

Mooney When he joined the companyâ&#x20AC;&#x2122;s human resources department a decade ago, Mooney â&#x20AC;&#x153;set a vision for recruiters to become strong business partners and an integral part of the team they serve,â&#x20AC;? the nomination stated. â&#x20AC;&#x153;Through his drive and emphasis on customer service, Sean has elevated his department to be a valued resource to Bendixâ&#x20AC;&#x2122;s leadership team.â&#x20AC;?

His emphasis on two major areas for recruitment â&#x20AC;&#x201D; establishing a solid co-op recruitment program and diversifying the companyâ&#x20AC;&#x2122;s workforce â&#x20AC;&#x201D; â&#x20AC;&#x153;shed light on the importance of bringing in strong entry level employees,â&#x20AC;? according to the nomination. While recruitment can become complicated, particularly in a large manufacturing organization, Mooneyâ&#x20AC;&#x2122;s â&#x20AC;&#x153;keep it simpleâ&#x20AC;? approach â&#x20AC;&#x153;has enabled him to keep his team focused on

critical business initiatives,â&#x20AC;? the nomination stated. â&#x20AC;&#x153;In simplistic terms, he understands the performance metrics that are important to recruitment and have the largest impact to the business.â&#x20AC;?

Mooney said 2017 was a hugely busy year for his team, which handled 160 salaried hires and 120 internal moves â&#x20AC;&#x201D; double the amount from the previous year. â&#x20AC;&#x153;He reviewed business targets and had his team work closely with their internal client groups to better understand what they wanted to achieve from a business perspective,â&#x20AC;? the nomination stated.

Mooney is making big progress in the companyâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Time to Fillâ&#x20AC;? initiative, which went from 78 days to fill a position in 2016 to 67.3 days in 2017 and, so far in 2018, 58 days. â&#x20AC;&#x153;Seanâ&#x20AC;&#x2122;s talents are simple for me,â&#x20AC;? wrote Chris Miller, the companyâ&#x20AC;&#x2122;s vice president of HR, in the nomination. â&#x20AC;&#x153;He is a good listener, he engages his team both as a group and individuals on a regular basis. His team is always aware of where they stand, and the gaps they need to work on.â&#x20AC;? â&#x20AC;&#x201D; Scott Suttell

Westfield says it wants its employees to feel that theyâ&#x20AC;&#x2122;ve chosen careers, not just jobs.

Results of the Westfield Center-based insurerâ&#x20AC;&#x2122;s 2017 Employee Engagement Survey indicate itâ&#x20AC;&#x2122;s doing pretty well in achieving that goal.

According to the nomination, the survey characterized 90% of Westfieldâ&#x20AC;&#x2122;s 2,600 employees as engaged, which is â&#x20AC;&#x153;an exceptionally high number for any organization in any industryâ&#x20AC;? and â&#x20AC;&#x153;significantly higher than the U.S. national norm.â&#x20AC;? Westfield said it â&#x20AC;&#x153;continually achieves high engagement levels because employees feel respected, valued and believe they are contributing to the broader purpose of delivering peace of mind to customers.â&#x20AC;?

In hand with the high engagement, Westfield said it has â&#x20AC;&#x153;an extremely low turnover rate, only 8% in 2017,â&#x20AC;? according to the nomination. That means â&#x20AC;&#x153;the most talented, high-performing people choose to stay long-term. Retaining top talent helps grow the organizational capabilities and reinforces the culture for new generations of employees.â&#x20AC;?

The companyâ&#x20AC;&#x2122;s approach to talent management seeks to â&#x20AC;&#x153;strike a balance between nurturing and promoting talent from within and seeking out new employees who enrich our existing team and increase diversity,â&#x20AC;? according to the nomination. Westfield Performance Consultants â&#x20AC;&#x201D; advisers who focus on â&#x20AC;&#x153;enabling the achievement of strategic plans and goals through peopleâ&#x20AC;? â&#x20AC;&#x201D; help to â&#x20AC;&#x153;inspire high performance from employees and each leader is given talent management tools and processes that enable them to build the capabilities of team members, collaborate on problem solving and ultimately help employees find their own path to success.â&#x20AC;?

Westfieldâ&#x20AC;&#x2122;s talent engagement team

Westfield says employees â&#x20AC;&#x153;are responsible for initiating their own development planning process, asking for feedback from their leaders and others, executing development activities, and monitoring their progress. The leaderâ&#x20AC;&#x2122;s role is to be a key supporter of the employeeâ&#x20AC;&#x2122;s development by providing perspective on development needs, helping to identify appropriate development actions, and providing feedback.â&#x20AC;?

By 2022, the nomination stated, the U.S. insurance industry â&#x20AC;&#x153;will need to replace more than 295,000 agents, brokers, claims adjusters, claims and policy clerks, underwriters, software developers, analysts and actuaries.â&#x20AC;? In response to this need, Westfield has â&#x20AC;&#x153;helped to develop 10 different risk management and insurance programs offering an associates, bachelors or certificate at colleges and universities in Ohio,â&#x20AC;? according to the nomination. â&#x20AC;&#x201D; Scott Suttell

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018 PROFESSIONAL DEVELOPMENT AWARD FINALISTS PRESENTED BY PRADCO

“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.”

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A G A L A T O C E L E B R AT E A N D S U P P O RT N E O M E D

INN

Laura Dutt, chief talent officer, Benesch Liz Peschges, VP of culture and strategy, Rock and Roll Hall of Fame and Museum Jeannie Sureck, director of human resources, Cleveland Museum of Natural History 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.

Laura Dutt, chief talent officer, Benesch; Liz Peschges, VP of culture and strategy, Rock and Roll Hall of Fame and Museum; and Jeannie Sureck, director of human resources, Cleveland Museum of Natural History, were chosen by a panel of judges assembled by PRADCO. The judges were: James Lundquist, director of talent development, PRADCO; Tom Snowberger, chief human resources officer, University Hospitals; and Tim Michalk, VP of HR operations, AMETEK. The PRADCO Professional Development Award honors a mid-career or senior HR professional who: J Devotes time and energy into people who want to improve and get ahead; J Promotes the development of others through coaching and/or learning opportunities; J Participates in career pathing discussions/exercises for employees; J Prioritizes and focuses on the advancement of individuals within the organization.

According to the nominations: “Laura Dutt should be considered for this award because she has per-

Dutt

Peschges

sonally created a professional development environment for Benesch that is one of the most comprehensive in the legal industry. She has been able to determine not only the needs of the attorneys, but the clients who they serve and design internal and external programs that educate and support them. She understands the demands of the industry and is thoughtful about how to best address professional development needs.

“No job is too small for Liz Peschges, the Rock Hall’s VP of culture and strategy. A positive agent of change, Liz has helped transform the Rock Hall’s culture, giving employees not only an enhanced work experience but a new lease on their work life. In 2017, with just one year at the helm, the Rock Hall’s employee engagement scores increased by 8%. In 2018, Liz oversaw the launch of the Rock Hall’s first professional development program, giving staff access to the hard and soft skill development opportunities they’d been craving. Liz strives to

have a personal connection with every team member. Her ethical leadership qualities mean Liz approaches every opportunity with a balanced moral compass that acts Sureck as a guiding light for all employee relations.

“In a workplace where diversity can be measured not only by employee demographics but by the range of the more than 5 million artifacts and specimens they are responsible for, Jeannie Sureck is deeply committed to people who want to improve and invest in their careers at the Cleveland Museum of Natural History. Sureck is surrounded by a wide-ranging team that includes world-renowned curators, researchers, scientists, naturalists and educators, as well as those whose duties include security, guest services, marketing and more. Her commitment to each individual is the same — to help nurture their personal growth and success as well as their contributions to the growth and success of the museum. It’s all part of growing talent in-house as much as possible.”

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

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ARCHER AWARDS INNOVATION WINNER

LEADERSHIP AND DIVERSITY WINNER

Andy Ashe, Jeff Berquist and Jennifer Dalrymple

Carole Torres

Training and development specialists and talent manager, Heinen’s Inc.

Through her leadership, Carol Torres has helped KeyBank strive to ensure that anyone interacting with a Key employee is able to bring their authentic self.

After a growing trend of client complaints about interaction with employees, Torres led her team to create and implement a training system to help workers become aware of, and better deal with, their unconscious biases.

Torres and her team created the Unconscious Bias Skill Builder Series, which included a series of videos recreating actual situations encountered by employees, role-playing exercises and discussion.

Completed by 98% of branch employees, the training was so well-received and effective, Key expanded it to non-branch employees. About 16,000 Key workers in all completed the course in 2017.

“Carole is a truly outstanding leader in our company. Her drive for outcomes and results is appropriately balanced with achieving these results with and through others. She tirelessly works to ensure that she and her team do the right thing by our customers and employees,” said Brian L. Fishel, Key senior vice president and chief talent officer, in the nomination.

For Key, the initiative meant a de-

Heinen’s wasn’t short on talent — the company had 3,800 employees in 2017 — but it needed to do a better job of growing leaders with the right skill set.

Motivated by greater competition, internet shopping, market fragmentation and retiring associates, the team knew the company’s success would be contingent on developing highly skilled retail store department managers. These mid-level managers serve as liaisons to senior store management, handle day-to-day operations of the departments and supervise a team of associates.

The problem: Heinen’s prefers to do things organically rather than through highly formal programs. In fact, senior operations leaders had previously rebuked emerging leaders programs. But Andy Ashe, Jeff Berquist and Jennifer Dalrymple managed to get key stakeholder buy-in by demonstrating the value and return on investment “such that it became undeniable that it was needed,” said chief human resources officer Cindy Torres Essell.

The grocer has traditionally promoted from within based on experience and technical knowledge, not on management skills. “We did not always promote the right people to management and did not put a ton of focus on preparatory training for their role,” Torres Essell said. “We also lacked in providing associates with interest in progressing their career at Heinen’s with ways to raise their hands for management.”

Longtime training and development specialists Ashe and Berquist designed the 10-month training

Chief learning officer, KeyBank

Berquist, Dalrymple and Ashe

process and content. New talent manager Dalrymple helped develop the application and interview process. Heinen’s doesn’t rely on email to communicate with employees, so she also had to market the program using hard copy marketing materials, signage throughout the associate areas of its stores and recruiting existing managers to help spread the word.

It worked. Heinen’s intends to run two classes per year and has set up a structure so associates who were not selected can work with their managers. The goal is for associates to close their developmental gaps through in-person discussions and individual development plans, so they can reapply in the future.

“Jeff, Andy and Jennifer made tremendous progress with the career path at Heinen’s — and our next generation of store leaders at Heinen’s will be the result,” the nomination said. — Nicole Stempak

Carole Torres, center, with the KeyBank Unconscious Bias team

crease in complaints and improved client experience. The initiative was recognized, too, when Diversity Inc. ranked Key at No. 35 on its 2018 Top 50 list.

But Torres’ work and the initiative go beyond the employment arena.

“This course not only speaks to the culture that Key is striving to achieve and display but who we should be as an individual every day,” an employee is quoted as saying in the nomination. — Sue Walton

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S 2018

LEWIS

CONTINUED FROM PAGE 12

Lewis called the efforts a “monumental undertaking.” Though he approached it from a COO role, he leaned heavily upon his HR experience, as he had to come up with a new leadership structure, hire people, promote people, deal with conflict management, reward employees, work on the culture and more.

“I had the opportunity to put 30 some years of experience of what works, what doesn’t work, different ways of really getting people to buy into this (and) put it all into play at the same time,” he said. “When I look back on my career, this was some of the most gratifying work that I think I’ve ever been a part of.”

Before joining MetroHealth, Lewis held a variety of roles at Rubbermaid Inc., Goodyear Tire & Rubber Co. and IMG. In semi-retirement, he chose to continue working at MetroHealth a couple of days a week as an executive in residence because he’s “invested in helping make this place successful,” he said. Lewis is also working

with a MetroHealth doctor on a drug development company.

The human resources industry is at a crossroads right now, Lewis said. It’s moving away from transactional work — hiring, benefits, salaries, etc. — being the core of what HR professionals do. Today, HR increasingly is being asked to help manage the culture of an organization, which he said is good for the profession.

More and more, business leaders expect transactional excellence of their HR professionals, he said. “You have to make sure the transactional stuff is done,” Lewis said. “That gives you an entrée to the higher level stuff.

Transactional is vitally important, and you have to have good resources managing it, but the higher up you go, if you really want to get into the C-suite offices, you really want to get on the CEO’s calendar, you better make sure your own shop is well organized and run like any business within your organization is run.

And then that will give you the opportunity to work on strategy, to work on growing market share, to work on innovation — all the things that HR could do to help an organization really not just survive, but really thrive.”

To register for the Aug. 16 Archer Awards, visit crainscleveland.com/ Archer or contact our events team at 216-771-5424 or clevents@crain.com.

ARCHER AWARDS

Meet the judging panel for the Archer Awards Now in its eighth year, Crain’s Archer Awards program celebrates Northeast Ohio’s human resources professionals who “hit the mark.” In partnership with Howard & O’Brien Executive Search, we 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. 16 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 Robin Bennett, director of human resources, AmeriWound LLC (2017 Archer honoree) J Ann Killian, vice president, human re-

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sources, retired, Ferro Corp. (2016 Lifetime Achievement recipient) J Thomas Hopkins, senior vice president, human resources, retired, Sherwin Williams (2012 Lifetime Achievement recipient) J Tom Snowberger, chief human resources officer, University Hospitals (2017 HR Executive of the Year, nonprofit) Additionally, the Lifetime Achievement Award winner, presented by Howard & O’Brien Executive Search, will be recognized during the event. The honoree, Dan Lewis, is chief operating officer for the MetroHealth System.

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; Tim Michalk, vice president of human resources, AMETEK; and Tom Snowberger, chief human resources officer, University Hospitals — also will be announced during the event.

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This advertising-supported section is produced by Crain Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain Content Studio-Cleveland content.

HRGUIDEBOOK

S2 August 6, 2018

SPONSORED CONTENT

PRESIDENT’S LETTER

Fostering innovative workplaces is key to attracting and retaining talent

By KELLY KEEFE

T

he “war for talent” in Northeast Ohio is ongoing, challenging and has become a way of life for area employers. Organizations are seeking new and better ways to meet the demands of their business through talent acquisition, engagement and retention. Forwardthinking companies are recognizing that Keefe they must create and sustain attractive workplaces as their core strategy to increase their probability of success.

Businesses need practical information to support these initiatives, and this is why ERC has partnered with Crain’s Cleveland Business to conduct our annual ERC/Crain’s Cleveland Business Workplace Survey. To no

one’s surprise, this year employers ranked “hiring and retention of talent” as the No. 1 challenge facing their company. In fact, the talent challenge outnumbered all the other 19 different challenges combined.

Through this report, the evidence is clear. Business leaders need to think and act differently. The strategy of hope or relying on past successes is simply not working when it comes to hiring and keeping highly qualified people who drive corporate success.

At ERC, we are grateful to work with many leaders who understand the talent challenge and are changing the way they have traditionally done things. These leaders are: Treating employees as adults and lightening up on traditional, strict policies n Offering benefits that are n

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Sometimes the best defense is a great offense.

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From counseling and representing employees to advising employers, our employment group stays ahead of the curve.

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See PAGE 1 for an analysis of this year’s ERC Workplace Practices Survey.

meaningful to all employees Creating a strategy around their recruiting efforts n Encouraging the human resources and marketing departments to work together n Inviting HR to have a seat at the executive table n Investing in employees through training and education assistance n Paying employees competitively n

The good news is that leaders who face the challenges of hiring and retaining talent are reaping the benefits of their efforts. We encourage every Crain’s reader to assess their organization relative to their talent acquisition strategy and effort. Where opportunities exist, we encourage organizations to take the steps necessary to develop exceptional work environments where employees can

thrive and succeed. The short- and long-term benefits will be remarkable.

Northeast Ohio has come a long way over the past decade, but we have a long way to go. Let’s make a difference in our community by

creating workplaces for top talent to call home.

Kelly Keefe is president of ERC. Contact her at 440-947-1284 or kkeefe@yourERC.com.

Backpacks to briefcases: talent acquisition strategies for future leaders

By CHRIS KUTSKO

C

hanging economic and business landscapes are forever challenging organizations. One of the best ways to weather these challenges is having the right people in place. Year-after-year, ERC’s research demonstrates that “talent” is the top challenge faced by the Northeast Ohio business community.

When combined with a tight Kutsko labor market, this struggle has resulted in the so-called “war for talent.”

In a mid-sized labor market like Northeast Ohio, this causes extreme pressure on the leadership team and the human resources department as turnover increases and job postings languish, unfilled. The competition is even steeper for roles such as engineering, finance, IT and technologically oriented manufacturing positions. These are just a few of the many areas of expertise being sought after, but in which industries are reporting shortages. The successful organizations are taking a more creative and strategic approach to their talent acquisition and retention strategies.

“

Revised and beefed-up benefit packages are a significant trend in regards to talent acquisition.”

Significant opportunity lies with the upcoming workforce and reaching them before they enter the workforce. ERC, in partnership with the Northeast Ohio Council on Higher Education (NOCHE), gathered information from employers about their intern and recent graduate employment practices, and found that 53% of organizations use interns to “develop a local talent pipeline.” To get the pipeline flowing, organizations recruit through a combination of methods, such as college job fairs, building strong networks with college career service centers and LinkedIn. Once these students are recruited, organizations build out robust programs to keep them there — ideally, until well after they have completed their education.

To retain their interns year over year, and ultimately, to convert them into full-time employees, employers are putting much more effort into engaging and developing their interns. These

types of programs include training, project work, coaching and more. A far cry from the coffee getting, paper filing zombie interns of old. In fact, 44% of organizations provide formal training and 57% provide regular feedback and coaching to their interns.

Training courses we often see associated with intern programs include communication skills, influencing skills, conflict resolution and email etiquette. It should be noted that providing potential future employees with training during their internships is also a great cost-savings strategy.

Missing work to attend a training on an intern’s hourly wage is much cheaper for the organization than missing work for that same training course once they become a salaried employee.

So once the talent is recruited and trained, what else can organizations be doing to ensure the new talent stays? EmCONTINUED ON NEXT PAGE

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By JEFF AHOLA

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usiness owners, human resource professionals, CPAs and brokers no longer can bury their heads in the sand regarding the Affordable Care Act, hoping the complicated reporting requirements will go away.

Denial is no longer an option, and the penalties for non-compliance are exorbitant. Joanna H. Kim-Brunetti, vice president of regulatory affairs at First Capitol Consulting Inc., a data

CONTINUED FROM PREVIOUS PAGE

ployers should start by recognizing the differences in what they want from their place of work as compared to the previous generations. Millennials and Gen Z want autonomy, to be connected to their work and to be able to work wherever they choose. They also want to be leaders.

ERC and NOCHE’s research found that only 22% of organizations offer management-in-training programs to their newly hired college graduates.

Clearly, this could be a great opportu-

August 6, 2018 S3

and analytics company that offers human resources, tax and regulatory compliance services, in April issued the following warning to companies: “In most organizations, the task of ensuring compliance with the Affordable Ahola Care Act lies with the human resources team. However, that perspective may need to change with the IRS

issuing ACA penalty notices that can make a dent in an organization’s bottom line. It’s time to recognize that the ACA and its employer mandate may have considerable ta and financial implications. That makes it as much of a problem for chief financial officers and their s as the department.”

The majority of compliance regulations are based on total number of company employees. Unfortunately, ACA compliance applies to Applicable

arge mployers, which are defined as companies with a minimum of 50 fulltime equivalents and/or employees.

This means that companies with 50 employees are expected to offer health care coverage to qualified employees and to report health care offer information to the Internal Revenue Service. All companies offering selffunded insurance, regardless of size, must also comply with ACA reporting requirements.

This past spring, the IRS began mailing fine letters to employers and plan sponsors from the 2015 ACA reporting year. Companies have one month from the date indicated in

nity for organizations looking to stand out to talented young professionals trying to move up the career ladder.

In the war for talent, figuring out how to stand out is the name of the game, even when it comes to the basics. evised and beefed-up benefit packages are a significant trend in regards to talent acquisition. It’s no longer enough to post a job ad on the internet and offer health care to receive a swarm of qualified candidates. Organizations are adding unique benefits, making traditional offerings better and then highlighting

their uniqueness as a recruiting tool.

We’re seeing an uptick in employers offering student loan assistance, tuition reimbursement for continuing education, better medical coverage and increased 401(k) contributions, all of which are very attractive to the upcoming workforce. Organizations are also adjusting their policies to appeal to the younger generations by offering remote work options, fle ible schedules and placing emphasis on the value of work-life balance.

By making the adjustments now,

staying ahead of the curve for the future and building brand loyalty through the employee (and intern) experience, employers will start to reap the benefits with increased retention. These increased rates of retention can be attributed to the strategic efforts being made during the early stages of recruiting.

Perhaps the most compelling statistic to demonstrate the overall value of effective internship recruitment and retention strategies is that, according to ERC and NOCHE’s research, three-quarters of organizations offer

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the letter to either pay the Employer Shared Responsibility Payment in full or provide a corrected data response.

These fines are in the tens of thousands of dollars and can extend into the millions for larger companies.

Because ACA is here to stay, automating the reporting for the Affordable Care Act through a human capital management platform that merges payroll and benefit plan data is the best defense for avoiding penalty fines.

one or more of their interns full-time employment at the conclusion of their internships, in some cases leading to greater than 50% job acceptance rates.

No need to go through a time consuming, expensive, talent acquisition process for these new hires, as they have already demonstrated their abilities in the field with the organization.

Jeff Ahola is CEO at Ahola Human Capital Management.

Contact him at jb@ahola.com or 440-915-4003.

Chris Kutsko is director of learning and development at ERC. Contact her at 440-947-1286 or ckutsko@yourERC.com.

HRGUIDEBOOK

S4 August 6, 2018

SPONSORED CONTENT

Develop a plan that addresses active shooter in the workplace

By W. ERIC BAISDEN

M

any employers are not prepared for an active shooter situation. Since an incident is often over within 10 to 15 minutes and before law enforcement arrives, employers must be prepared to deal with such situations.

Most active shooter plans follow “Run, Hide, Fight.”

Employers are not limited to that tactic.

Response plans will vary by company and Baisden even facility, and an appropriate plan may depend on the facility, workforce, public access and other factors. The important thing is to have a plan and to train and practice it with the workforce.

Employers need to anticipate that

one or more employees may have a weapon in their vehicle. In Ohio, an employer may not prohibit a person who has been issued a valid concealed handgun license from transporting or storing a firearm or ammunition when each firearm and all ammunition remain inside the person’s privately owned vehicle while the person is physically in the vehicle, or each firearm and all ammunition is locked in the trunk, glove box, or other enclosed compartment; and (2) the vehicle is in an appropriate location.

Employers need to choose whether to allow trained employees to access their handguns and respond to an active shooter situation. These employees may be able to respond before law enforcement.

Ideally, employerprovided training would be conducted with law enforcement and emergency

“

Ideally, employer-provided training would be conducted with law enforcement and emergency responders.”

responders. This needs to be clearly set forth in a written response plan.

A base response plan should address the following: Prevention: Training employees to recognize and report early signs of potential violence may avoid a tragedy. n Plan and train: Employers should create a response plan, which could identify escape routes. Companies and organizations should also implement emergency notification n

systems, control facility access and create crisis kits. Consider partnering with law enforcement and emergency responders to design and provide onsite training. n Strategy: Employers should train “Run, Hide, Fight” or whatever plan local law enforcement endorses. Run, Hide, Fight is the most widely accepted method for dealing with an active shooter.

The preferred response is to run.

Employees should try to help others

NORTHERN OHIO HUMAN RESOURCE CONFERENCE ANCHORS AWEIGH

escape, keep their hands visible and follow instructions from law enforcement.

If escape is impossible, employees should hide from the shooter’s view.

Lock or barricade doors, hide behind large items, and remain quiet. If possible, an employee should dial 9-1-1 to alert police of the shooter’s location.

The last resort is to fight, but only if an employee’s life is in imminent danger. If escape is unavailable, chances of survival are much greater if an individual tries to incapacitate the shooter. Another option is to play dead if the shooter is close and fatalities have occurred.

W. Eric Baisden is a partner and co-chair of Benesch’s Labor & Employment Practices Group.

Contact him at 216-363-4676 or ebaisden@beneschlaw.com.

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S6 August 6, 2018

SPONSORED CONTENT

How workplace safety drives profitability

By THOMAS QUAIL

A

common theme seen throughout nearly all companies is that keeping workers safe is a core value. Organizations in nearly all lines of business understand that workers who not only feel safe, but are actively kept safe, are more productive, happy and are less likely to leave.

This effort is typically supported by providing and requiring employees to use proper personal protective equipment, or through empowering Quail the workforce to make recommendations on ways safety can be improved.

However, those that truly recognize the benefits of safety find ways to incorporate it beyond the production floor at these organizations.

Safety is interwoven into all aspects of business, from corporate culture and management styles, to sales efforts and marketing messages.

+ + = In fall 2017, Nesco Resource, a human capital company offering customized recruiting and employment solutions nationwide, launched a new safety program that reinforced the importance of workforce welfare. The cornerstone of this effort is that each of its regional leaders and workforce consultants completed U.S. Department of Labor’s general industry OSHA 10-hour course. This Occupational Safety and Health Administration course focused on hazard recognition, avoidance abatement and prevention.

The program combines with additional on-the-job safety and health hazard training from Nesco’s own dedicated safety and training departments, has given its team the ability to better examine worksites and identify possible safety risks

before an injury occurs.

With safety-focused initiatives like these, Nesco Resource is not only helping its current and potential clients provide a safer work environment for employees, but is directly impacting its clients profitability through reductions in workplace injuries, lower employee turnover and more consistent production at their facilities.

Your workforce is your company’s lifeblood. Don’t risk their health and safety, or your production output and profitability.

Thomas Quail is the vice president of risk management, safety director and corporate counsel at Nesco Resource. Contact him at 440-461-6000 or tquail@nescoresource.com.

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• Growing – We’ve added a dozen attorneys in the last 18 months.

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• Scalable – We can serve your day-to-day needs as well as complex litigation.

• Current – We offer a focus in immigration law, including I-9 compliance and immigration compliance audits, and our team includes a former NLRB member and active member of the U.S. Commission on Civil Rights.

How can our people help your people?

For more information, please contact W. Eric Baisden at (216) 363-4676 or ebaisden@beneschlaw.com.

www.beneschlaw.com

Managing the many angles of negotiating executive severance

By ANN-MARIE AHERN and JACK MORAN

A

career transition is always sensitive and often complex for executive-level employees, and when it happens involuntarily, the separation agreement should hold a few certain attributes. Specifically, it should be individually tailored, appropriate for the circumstances at hand, and fully descriptive of the rights and obligations of the employer Ahern and the executive.

Unfortunately, employers are often not mindful of these considerations, and usually present a departing executive with a “standard issue” severance package that may be ill-suited for a high-level individual.

These separation packages will invariably contain a complete release of claims, meaning that if a benefit or term is omitted in the separation agreement, there will not be an opportunity to later challenge the employer. It is crucial to understand whether there are any unmet employer obligations or legal bases for challenging the termination’s validity.

Many executives have employment contracts that fully spell out the severance benefit upon separation, and ensuring that this agreement captures all those terms is vital. This may not only include separation pay, but also health care, unpaid bonuses, incentive compensation, unreimbursed expenses and outplacement allowances.

Equity grants or options can make the executive’s separation particularly unique. However, not all equity plans are created equal, and some agree-

ments have vesting features that result in a forfeiture of unvested units upon separation.

In a closely held business, there may be some ambiguity around valuation methodology. Other times, there are timeframes that apply to put and call, or tag-along / drag-along rights.

Any question regarding equity entitlement or value should be addressed prior to executing a severance agreement and release.

It is also important to determine whether there is any basis to challenge Moran an employer’s decision to terminate, and whether those claims are strong enough to pursue either in litigation or an out-of-court negotiated agreement. The nature of the claim may substantially increase the potential severance payment’s value.

Further, an outgoing employee must understand any continuing obligations to the company. Many professionals assume that non-competes aren’t enforceable, but negotiations relating to competition and the solicitation of clients and employees should be addressed before the separation agreement is finalized.

While no employee should hastily sign a severance agreement, outgoing e ecutive employees specifically should be mindful of the many facets of their employment — and their rights before finalizing any e it.

Ann-Marie Ahern is a principal attorney at McCarthy Lebit.

Contact her at 216-696-1422 or ama@mccarthylebit.com. Jack Moran is a principal attorney at McCarthy Lebit. Contact him at 216-696-1422 or jem@mccarthylebit.com.

HRGUIDEBOOK

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August 6, 2018 S7

Cultivate a culture of high achievers

How strong communication and establishing goals can improve performance

By HAROLD HARRISON

S

etting up employees for success in a large, complex organization can be challenging to ensure that success of each individual equates to the success for the organization. For organizations responsible for a variety of functions, with employees working in the office and out in the field, it s even more important Harrison that employees across departments are aligned around a shared mission.

Human resources technology such as an employee performance evaluation system can be used as a way to bring a diverse organization together and increase efficiency, communication and realign employees with their own goals that support the organization s values.

When establishing a performance evaluation system, it s important to think

holistically and define goals and skills that align with an organization s core values and culture. Once success is understood across all of the organization s functions, a top-down approach can help further define specific goals and responsibilities for each position, from managers to individual contributors.

A strong performance review system allows employees to understand specifically how each of these core values presents themselves in their day-to-day work, as defined by their managers. For example, one competency or skill for a position may be, “strategic decision making,” and a goal that may align with this would be outlining a task with specific, trackable metrics, such as “increasing social media engagement by 20%.”

While it may be necessary to seek external support to ensure objectivity and accountability when considering a large organizational overhaul, once the system is in place it can aid in succession planning and help to

“

It’s important to think holistically and define goals and skills t at align it an organi ation s core values and culture.”

identify and reward strong performers at various levels.

The performance review system not only can help improve organizational performance and success but also improves transparency between individual employees and their managers. It allows each individual and department to understand their goals and expectations and how they contribute to the organizational mission.

Cultivating a culture of top performers requires continual performance check-ins. Annual, midyear and more frequent one-on-one meetings between supervisors and direct reports help create an ongoing dialogue. Continual review allows for

performance discussion from the prior year or recent performance and helps set expectations for the following year, while outlining department goals and what is needed from each team member.

An accompanying online system can further this transparency by allowing each individual to gauge where they stand in meeting these outlined goals.

Online feedback eliminates the obstacle of scheduling in-person meetings to discuss progress, an issue that some larger departments may face. It also offers an easily accessible conversation between staff and supervisors before in-person check-ins, so that at any time, direct reports may look for updates or message their supervisor about goals

or competencies for an ongoing performance review. This online resource also acts as a record of past feedback, enabling employees to track progress.

Adopting online performance evaluation technology allows for ongoing data collection and feedback across individuals, departments and ultimately, the organization. It can help track where the organization is succeeding as well as opportunities for growth.

Individual success within an organization is important. A strong performance evaluation system ensures that individual success is tied to organizational success and can be a catalyst from individual to individual, department to department, to the top of the organization and to the bottom line.

Harold Harrison is chief human resources officer at Cleveland Metroparks. Contact him at 216-635-3200 or info@clevelandmetroparks.com.

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HRGUIDEBOOK

S8 August 6, 2018

Maximizing human capital in the 21st-century workplace

By DINO SCIULLI and MIKE RAO

I

t happens every day in companies across America — employees quit.

Whether they’re doing it to advance or change their careers, people move on.

For employers, these departures come at a steep price. When employees leave, they take a vast amount of experience with them, creating a knowledge gap within the firm. lus, the company s efficiency diminishes, as others in the organization have to temporarily cover their duties. There are also significant costs associated with recruiting, interviewing and eventually, onboarding and training.

According to the Association for Talent Development’s 2014 State of the Industry report, companies spend an average of $1,208 per employee on training. or firms with fewer than workers, the cost is closer to $2,000 per person. aced with these realities, firms are looking for innovative ways to attract and retain the best talent. Employee benefits organizations such as edinabased S enefits roup is working on multiple fronts to help its clients be the employer of choice.

Our focus is customized benefits

“

We’re helping our clients develop customized packages that meet the needs of today’s evolving workforce. These incentives include ever t ing fro fitness memberships to pet insurance.”

— DINO SCIULLI, president of DS Benefits Group

and organizational development,” said ino Sciulli, president of S enefits roup. We re finding great success in both of these areas.”

THE BENEFITS OF GOOD BENEFITS Today, employees are looking for more than health and dental Sciulli insurance. They want benefits that align with their lifestyle.

Understanding this shift, savvy employers are getting creative in an effort to attract talent.

“We’re helping our clients develop customized packages that meet the

needs of today’s evolving workforce,” Sciulli said. “These incentives include everything from fitness memberships to pet insurance.”

Patrick Retko, people operations leader at Avalution, a Cleveland-based provider of business continuity and information secuRao rity consulting services and software solutions, has seen the difference a customized benefits program can make to a multi-generational workforce that spans baby boomers, Gen Xers and millennials.

“To attract and retain the best talent,

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we knew we had to offer a benefits package that went well beyond the minimum, etko said.

S enefits Group was instrumental in helping us create a well-balanced mix that caters to every employee’s diverse, agerelated needs.”

In the past, employers looked at benefits with the single goal of controlling costs. Today, more companies, like Avalution, are seeing it as an investment that reflects their organization’s culture.

CREATING A CULTURE OF SUCCESS In addition to good benefits, employees — especially millennials — are looking for an environment where they can make a difference, be respected and thrive.

“When people feel valued, they work with passion and want to stay,” said ike ao, principal of S enefits roup.

In his 30-plus years working with organizations to improve performance and develop critical competencies in employees, ao has identified specific commonalities among top talent.

First and foremost, people want to feel empowered. They want to make decisions without being micromanaged.

“If you hire someone to do a job, let them do their job,” Rao said.

Employees also want to grow.

Companies who provide ongoing training and support are the ones who will be handing out retirement watches to their best and brightest.

Finally, people want to feel like they’re making a contribution to the organization’s success. Companies who support their employees in achieving these objectives are more likely to keep them.

The roup at S enefits offers a number of programs to help companies improve employee satisfaction and retention, including executive coaching,

company assessments and leadership development.

For Avalution, the leadership development aspect has been particularly beneficial. ike and his team helped us focus on solidifying our core values and focusing on each of our employees’ unique abilities,” Retko said. “Thanks to their expertise, we have plans in place to organically develop our next level of leadership.”

THE VALUE OF CORPORATE ASSESSMENTS When interviewing prospects, companies aren’t just looking for the best candidate; they’re looking for the best fit. sum s and references usually aren’t enough to make that evaluation.

“We need to know how folks learn and how they process information,” Rao said. “With a thorough assessment, we can learn where an individual is naturally suited to do well. With managers, we can help them understand how to communicate with each employee in his or her preferred style. That goes a long way in keeping people happy.”

EMPLOYEE SATISFACTION HAS MANY DEFINITIONS Everybody is different. Some are looking for good pay and benefits. Others are looking to rise up the corporate ladder. Others want to know they’re making a contribution. The key for employers is knowing the motivations of each individual and then developing programs that meet those needs.

Dino Sciulli is president of DS Benefits Group.

Contact him at 330-725-0501 or dsciulli@dsbenefitsgroup.com.

Mike Rao is principal of DS Benefits’ HR Group.

Contact him at 330-760-9179 or mrao@dsbnefitsgroup.com.

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HRGUIDEBOOK

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August 6, 2018 S9

Succession planning as a vital strategic tool

By JODY WHEATON

T

he pain of talent shortage and talent retention is an issue that many organizations face. With looming retirements of seasoned team members, a competitive labor market and voluntary turnover, succession and development planning is more important today than ever before.

In a conversation with a colleague who recently took a new Wheaton strategy position and turned over the reins to his chief information officer successor, he shared a unique perspective of what succession planning looks like when done right.

The two had worked together for many years, with his successor becoming his trusted go-to person. They collaborated to create a plan for developmental opportunities that put her in

front of internal and external stakeholders. The plan was clear, intentional and included a pathway to opportunities for leading projects, processes and people.

It is clear they have built a deep professional respect for one another, and she will now carry on his legacy as her own.

As HR leaders, we understand that succession planning is a vital strategic tool that aligns with the organization’s long-term plan and is designed to meet its future talent needs. It promotes and supports from within, is driven by success factors, emphasizes diversity and is woven into the fabric of organizational culture.

The organization benefits by promoting from within, leveraging knowledge and advancing it forward, and having a proven track record of success with its employees. From an employee’s perspective, benefits include the availability of internal opportunities and a potential for upward mobility. When an organization commits to individual

advancement, it ultimately leads to a committed and loyal workforce.

HR leaders, this is your call to action.

If your organization views succession planning as a “check-the-box” activity, it’s time to hold the organization and management team accountable for visiting the succession plan often and with intention. Managers must have the tools to facilitate coaching and developmental conversations with their employees. In these conversations, a manager should share their perspective on the employee’s capability to take on increased responsibilities and develop an agreed-upon plan to help the individual get there.

Mentorship, knowledge transfer and advocacy set up the incumbent for success when the transition happens. Be mindful that traditionally underrepresented groups don’t have the same level of advocacy, and providing them — along with other potential successors — with opportunities to gain exposure and

demonstrate their aptitude is paramount to putting development into action.

As with anything, you get out what you put in. Organizations will realize the benefits of succession planning once we do our due diligence to drive it forward and bring it to life.

Jody Wheaton is executive director of client solutions and program management at Corporate College, a division of Cuyahoga Community College. Contact her at 216-9875867 or jody.wheaton@tri-edu.

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THE LIST

Wealthiest Suburbs

Ranked by estimated median household income POPULATION

HOUSING

MEDIAN HOUSEHOLD INCOME

MEDIAN OWNEROCCUPIED HOUSING VALUE

5-YEAR ESTIMATE (2012-2016) (1)

2010 CENSUS

% CHANGE SINCE CENSUS (ESTIMATE - BACHELOR'S SEE FOOTNOTE) (1) %

POST-GRAD OCCUPIED % UNITS

OWNER %

RENTER %

AVERAGE COMMUTE (MINUTES)

COUNTY

Hunting Valley

+$250,000 (2)

$1,222,200

787

707

11.3%

36.8%

47.5%

294

90.5%

9.5%

26.9

Cuyahoga

Bentleyville

$173,250

$563,900

905

864

4.7%

30.1%

49.9%

307

97.1%

2.9%

27.0

Cuyahoga

Pepper Pike

$164,471

$421,500

6,150

5,979

2.9%

32.0%

43.3%

2,129

96.5%

3.5%

21.8

Cuyahoga

Moreland Hills

$139,539

$379,400

3,297

3,320

-0.7%

39.9%

34.6%

1,277

92.9%

7.1%

26.3

Cuyahoga

Gates Mills

$132,167

$437,400

2,229

2,270

-1.8%

34.6%

36.3%

900

95.0%

5.0%

27.3

Cuyahoga

Waite Hill

$131,875

$573,100

495

471

5.1%

30.2%

34.7%

197

90.9%

9.1%

24.5

Lake

Hudson

$126,618

$313,300

22,282

22,262

0.1%

39.8%

31.0%

7,830

86.1%

13.9%

27.6

Summit

Kirtland Hills

$116,875

$533,700

717

646

11.0%

26.1%

28.0%

269

89.6%

10.4%

26.6

Lake

South Russell

$107,250

$317,800

3,839

3,810

0.8%

52.4%

25.9%

1,450

91.2%

8.8%

30.6

Geauga

Boston Heights

$103,603

$347,800

1,208

1,300

-7.1%

27.2%

21.0%

433

93.3%

6.7%

25.8

Summit

Orange

$102,109

$291,800

3,288

3,323

-1.1%

36.0%

33.2%

1,295

88.3%

11.7%

20.4

Cuyahoga

Highland Heights

$101,875

$246,700

8,366

8,345

0.3%

27.3%

27.8%

3,159

93.1%

6.9%

22.1

Cuyahoga

Sugar Bush Knolls

$101,250

$302,800

193

177

9.0%

17.3%

47.3%

77

92.2%

7.8%

21.4

Portage

Brecksville

$98,345

$256,000

13,470

13,656

-1.4%

31.4%

22.4%

5,332

84.5%

15.5%

23.4

Cuyahoga

Solon

$96,976

$273,800

23,085

23,348

-1.1%

30.4%

31.6%

8,335

83.7%

16.3%

25.3

Cuyahoga

Silver Lake

$94,500

$198,100

2,452

2,519

-2.7%

35.7%

22.3%

976

94.5%

5.5%

19.5

Summit

Peninsula

$94,167

$246,800

615

565

8.8%

33.8%

21.7%

250

82.8%

17.2%

23.1

Summit

Bay Village

$93,220

$215,100

15,414

15,651

-1.5%

39.0%

25.0%

6,045

91.1%

8.9%

25.0

Cuyahoga

Avon

$90,846

$262,100

22,289

21,193

5.2%

29.0%

18.2%

7,798

80.9%

19.1%

25.1

Lorain

Beachwood

$88,287

$274,400

11,786

11,953

-1.4%

24.6%

32.3%

4,623

63.0%

37.0%

23.0

Cuyahoga

Glenwillow

$87,375

$252,400

1,129

923

22.3%

18.5%

29.8%

347

91.1%

8.9%

22.6

Cuyahoga

Valley View

$86,071

$245,600

1,974

2,034

-2.9%

22.5%

11.0%

718

89.8%

10.2%

22.8

Cuyahoga

Macedonia

$86,061

$189,700

11,595

11,188

3.6%

25.7%

18.3%

4,516

92.3%

7.7%

26.1

Summit

Independence

$84,900

$222,600

7,115

7,133

-0.3%

25.9%

14.4%

2,690

94.2%

5.8%

20.6

Cuyahoga

Aurora

$84,135

$241,800

15,712

15,548

1.1%

31.1%

19.0%

6,349

80.0%

20.0%

27.6

Portage

Bratenahl

$82,500

$266,500

1,203

1,197

0.5%

31.1%

36.3%

668

81.3%

18.7%

17.7

Cuyahoga

Westlake

$80,989

$236,400

32,408

32,729

-1.0%

31.4%

21.1%

13,775

75.2%

24.8%

25.3

Cuyahoga

Avon Lake

$80,884

$225,600

23,221

22,581

2.8%

31.5%

20.0%

9,060

79.7%

20.3%

26.3

Lorain

Strongsville

$80,323

$194,000

44,622

44,750

-0.3%

27.3%

17.3%

17,598

80.4%

19.6%

27.4

Cuyahoga

Shaker Heights

$79,519

$213,100

27,773

28,448

-2.4%

25.0%

39.9%

11,132

63.1%

36.9%

22.8

Cuyahoga

Westfield Center

$79,167

$199,800

1,199

1,115

7.5%

22.3%

8.9%

484

86.6%

13.4%

23.5

Medina

Broadview Heights

$77,480

$217,600

19,257

19,400

-0.7%

25.8%

19.9%

7,568

81.0%

19.0%

28.2

Cuyahoga

Kirtland

$76,691

$271,400

6,802

6,866

-0.9%

21.5%

19.5%

2,649

81.7%

18.3%

25.6

Lake

Sheffield Village

$75,461

$183,200

4,045

3,982

1.6%

14.7%

13.7%

1,650

71.0%

29.0%

22.6

Lorain

Chagrin Falls

$75,260

$328,100

4,056

4,113

-1.4%

38.7%

26.7%

1,845

64.0%

36.0%

25.4

Cuyahoga

Seven Hills

$73,948

$164,100

11,697

11,804

-0.9%

23.0%

11.5%

4,888

95.4%

4.6%

26.4

Cuyahoga

Twinsburg

$73,314

$210,100

18,851

18,795

0.3%

29.0%

16.8%

7,626

72.5%

27.5%

25.5

Summit

Mayfield Village

$72,156

$234,200

3,401

3,460

-1.7%

29.3%

23.1%

1,489

67.8%

32.2%

23.0

Cuyahoga

Reminderville

$71,417

$172,700

3,862

3,404

13.5%

21.7%

20.3%

1,473

83.8%

16.2%

27.2

Summit

Perry

$71,172

$170,300

1,591

1,663

-4.3%

14.0%

10.3%

577

86.0%

14.0%

25.0

Lake

Mentor

$70,058

$167,100

46,896

47,159

-0.6%

20.3%

11.9%

19,542

85.0%

15.0%

23.2

Lake

Walton Hills

$69,167

$206,600

2,236

2,281

-2.0%

19.0%

9.7%

922

97.2%

2.8%

25.2

Cuyahoga

North Ridgeville

$68,778

$160,300

31,832

29,465

8.0%

21.1%

11.5%

12,249

87.0%

13.0%

27.4

Lorain

New Franklin

$68,161

$134,600

14,195

14,227

-0.2%

16.8%

5.9%

5,545

91.8%

8.2%

23.8

Summit

Richfield

$67,875

$225,900

3,651

3,648

0.1%

26.9%

15.0%

1,395

87.3%

12.7%

25.3

Summit

North Perry

$67,188

$167,400

713

893

-20.2%

17.1%

6.7%

295

84.1%

15.9%

24.2

Lake

Amherst

$66,731

$146,200

12,058

12,021

0.3%

15.0%

8.5%

4,666

81.2%

18.8%

21.9

Lorain

Green

$66,656

$173,600

25,713

25,699

0.1%

23.5%

11.7%

10,090

74.4%

25.6%

21.4

Summit

North Royalton

$66,189

$193,100

30,302

30,444

-0.5%

22.3%

13.7%

12,771

70.7%

29.3%

27.3

Cuyahoga

Stow

$66,079

$166,200

34,746

34,837

-0.3%

26.8%

16.1%

14,295

69.5%

30.5%

23.9

Summit

THIS YEAR COMMUNITY (1)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

HIGHEST DEGREE

RESEARCHED BY CHUCK SODER (CSODER@CRAIN.COM)

There are 100 communities on the full list. To see them all, become a Data Member: CrainsCleveland.com/data Source: U.S. Census Bureau 5-year American Community Survey (2012-2016). The online version of the list includes 100 communities in Cuyahoga, Lorain, Medina, Summit, Portage, Geauga, Lake and Stark counties. Have questions, suggestions or corrections? Contact Chuck Soder: csoder@crain.com

(1) All figures (other than 2010 Census population) are estimates based on surveys conducted between 2012 and 2016. Estimates for smaller communities tend to be less reliable. Margin of error information can be accessed through the bureau's FactFinder database. (2) Income exceeds $250,000. Census database would not report a higher number.

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TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. Liens reported here are $10,000 and higher.

LIENS FILED

LIENS RELEASED

JJ Automatic Mechanical Corp.

JJ James Breen Real Estate LLC 1360 E. 9th St., Cleveland Date filed: Dec. 6, 2016 Date released: April 26, 2018 Type: Employer’s withholding, unemployment Amount: $178,673.90

3681 Ludgate Road, Shaker Heights Date filed: April 16, 2018 Type: Failure to file complete return, employer’s withholding, unemployment Amount: $61,784.83 JJ Cha Pizza & Spirits LLC 3800 Whitman Ave., Cleveland Date filed: April 13, 2018 Type: Employer’s withholding, unemployment Amount: $43,938.91

JJ Stellar Sales Inc. 11039 Holliston Lane, Parma Heights Date filed: Dec. 23, 2016 Date released: April 26, 2018 Type: Employer’s withholding Amount: $134,670.79

JJ Steadfast Health Services LLC

16781 Chagrin Blvd., Cleveland Date filed: April 16, 2018 Type: Employer’s withholding, unemployment Amount: $16,640.96 JJ Little Miracles Child Care and Learning Center Inc.

22683 Euclid Ave., Euclid Date filed: April 13, 2018 Type: Employer’s withholding Amount: $15,958.16

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JJ W A S Company of Berea Inc. 172 Depot St., Berea Date filed: July 14, 2008 Date released: April 13, 2018 Type: Employer’s withholding, unemployment Amount: $39,773.68

When it comes to commercial loans, Geauga Savings Bank is your no-hassle YES bank. We pride ourselves on providing local loan decisions from experienced bankers who can develop creative solutions to loan requests.

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JJ Amroc Construction Inc. 3210 Scranton Road, Cleveland Date filed: May 17, 2017 Date released: April 26, 2018 Type: CIVP, employer’s withholding Amount: $28,113.63

JJ Traska Law Firm LLC 4352 Pearl Road, Suite A, Cleveland Date filed: April 26, 2018 Type: Employer’s withholding Amount: $13,740.25

Talk to us today and get your business moving ahead!

Dell Duncan, EVP, 216-464-5180, Dduncan@geaugasavings.com Rick Ritley, Sr. Commercial Banker, 216-645-8386, Rritley@geaugasavings.com

JJ Litwin Paints & Supplies LLC 845 South Ave., Youngstown Date filed: Feb. 9, 2017 Date released: April 13, 2018 Type: Employer’s withholding Amount: $26,534.70

JJ DataPharm Statistical & Data Management

Services P.O. Box 22898, Beachwood Date filed: April 26, 2018 Type: Employer’s withholding Amount: $12,150.23

Greg Yurco, VP Lead Lending Officer, 330-727-8394, Gyurco@geaugasavings.com Jim Kleinfelter, President, 440-564-9441 x112, Jkleinfelter@geaugasavings.com 24755 Chagrin Blvd., Ste. 100 • Beachwood, OH 10800 Kinsman Rd. • Newbury, OH

JJ SJC Partners LLC

www.geaugasavings.com

88 E. Belmeadow Lane, Chagrin Falls Date filed: May 17, 2017 Date released: April 13, 2018 Type: Employer’s withholding Amount: $21,846.00

JJ LA Veer Partners Inc. 6825 Broadway Ave., Cleveland Date filed: April 26, 2018 Type: Employer’s withholding Amount: $11,897.84

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AKRON

Squirrels’ spinoff looks to cryptocurrency

By BETH THOMAS HERTZ clbfreelancer@crain.com

North Canton tech company Squirrels LLC has spun off a sister company to enter the world of cryptocurrency and blockchain technology.

The new company, Squirrels Research Labs (SQRL), was formed in spring but planning for it began last fall, said Andrew Gould, Squirrels chief operating officer and co-founder. SQRL has released a new hardware product — Acorn — that works with computer graphics cards and increases the effectiveness of cryptocurrency mining and blockchain verification, company officials said.

Although the two companies are separate entities, they share leadership, employees and many resources.

And SQRL expects to bolster its ranks this year.

“We have been exploring the space of the cryptocurrency and blockchain space both from a sort of personal interest and also looking at a business opportunity there,” Gould said.

“It’s a developing market, so it is still finding its legitimacy and trying to shake out the illegitimate people that may try to take advantage of a new thing. We’ve been watching the space and waiting for it to mature.”

Squirrels has been pushing the technology envelope since its two co-founders Andrew Gould and David Stanfill joined forces in 2008 to form Napkin Studio, going on to release one of the early apps in Apple’s App Store.

In 2012, the company released two of its first screen-mirroring apps — Reflector and AirParrot. They were a hit, and Napkin Studio became Squirrels LLC as the founders and employees focused their efforts on wireless collaboration and presentation technology.

And now company leadership feels good about the prospects for the virtual cryptocurrencies, which are built on blockchains that act as their decentralized, digital ledgers. Block-

The partners that lead Squirrels are, from left, Cory Shoaf, Sidney Keith, David Stanfill and Andrew Gould. (Shane Wynn for Crain’s)

chains could have many potential uses beyond serving cryptocurrencies. They could be applied to logistics tracking, medical records, order histories, even voting, among other things. It’s the potential of blockchain that’s helped drive interest in cryptocurrencies.

Different blocks in a blockchain are validated through the process of mining using a computer, or “mining rig.” And the “miners” are typically rewarded in portions of a coin or token that represents cryptocurrency.

The most popular tokens include Bitcoin and Ethereum, but there are estimated to be well over 1,000 kinds in existence.

SQRL’s Acorn product can be updated via software to accelerate almost any blockchain-based technology”, company officials said.

And while the cryptocurrency can be a cyclical market, SQRL has “faith the blockchain technology is only going to continue to rise and become more prominent as businesses and entire industries apply it to their operations. We don’t see it going away because the benefits of blockchain outside of cryptocurrency are undeniable,” said Tom Crilley, Squirrels director of communications and public relations, in an email.

SQRL did keep an eye on the cyclical cryptocurrency industry when deciding when to launch the company.

The industry typically ramps up in the fall, Gould said. Last fall, one form, Bitcoin, soared to nearly $20,000, which generated a lot of hype, but in the spring, the price of all cryptocurrencies came down,

which is typical. It often trades “sideways” in the summer before ramping back up in the fall and early winter.

SQRL’s springtime launch positioned it to be in place to maximize this year’s fall uptick, Gould explained.

SQRL isn’t worried about a cryptocurrency “bubble,” though, he said.

“There is intrinsic value to cryptocurrency today, and as more companies move critical things to the blockchain, the work of validating those blockchain transactions, paid in cryptocurrency, will continue to increase,” Gould said in an email.

Acorn works with computer graphics cards to offload parts of the mining process that typically create bottlenecks.

“Imagine an assembly line of 10 different steps, and each point along that is doing one particular thing over and over again. If step seven is running much slower than the other nine steps, the conveyor belt through the assembly line can only run as fast as that slower piece is,” Gould said.

By handling the slower aspects, Acorn allows graphics cards to do the steps for which they are best suited.

This increases the overall speed of the process. It can also lower the amount of electricity that is being used, allowing users to remain competitive if the value of cryptocurrency dips enough to jeopardize their profit margin.

There is a huge potential market for this product, SQRL officials said.

About 16 million graphics cards around the world are currently used for cryptocurrency mining, and a user can pair up to two Acorns per graphics-processing unit to get maximum acceleration.

Acorn is priced at varying levels based on speed, ranging from $199.99 to $329.99.

Blockchain technology may seem like an obscure topic to some, but Gould said miners come from all walks of life, ranging from independent miners, who have one or two graphics cards, to massive data centers that can run tens of thousands of

devices.

And SQRL’s target market, for the moment, is any of those miners.

“It’s not quite fashionable to be a large entity talking about mining publicly, but there are major investments being made in this space.

SQRL products appeal to all of these miners, big and small,” Gould said.

SQRL initially planned to sell about 1,000 units this summer but has upped those projections to more than 20,000 over the next six months due to stronger-than-expected interest in the presale period. Shipments will begin in late August.

The company is preselling peripheral accessories called Acorn Nests, custom-designed adaptor cards.

Plus, SQRL is working with a California company called Xilinx, which creates field-programmable gate arrays (FPGAs), the chips that power all of this hardware.

The two companies created a special version of a Xilinx board that is being exclusively targeted into the cryptocurrency market.

“This is a highly programmable board that miners can use to mine a variety of different coins,” Gould said.

SQRL also has complete mining solutions in the pipeline, and anticipates prototypes will be available by September, with sales by October or November, but they declined to offer details now.

All of this means a need to build up staffing. SQRL and Squirrels currently share about 40 employees, and company officials expect to grow the SQRL side by 20 to 40 people in the next 12 months.

SQRL is actively recruiting engineers, and hardware and software developers and will be hiring staff for warehousing, shipping and final assembly.

SQRL operates out of 16,000 square feet of warehouse and manufacturing space near Squirrels’ existing headquarters in North Canton.

The additional property more than doubles the footprint of Squirrels in the area and allows SQRL to expand when needed.

Philpott Solutions has big plans for Aurora site

By DAN SHINGLER dshingler@crain.com @DanShingler

Jim Vaughn took over as CEO of Brunswick-based Philpott Solutions Group on June 25.

Now he’s working to take over its destiny, largely with big plans for its plant in Aurora that makes heavy-duty molded plastic and rubber industrial parts for a variety of end markets.

Vaughn is aggressively working to bring Philpott’s plastic injection and rubber molding work in house, taking it back from China so that he has more control over quality and can react quicker to customers, he said.

He’s also moving its West Virginia chemical operations to Aurora, where the company invested $5 million in a 43,000-square-foot plant in 2016. He’s expanding Philpott’s staff and says the company will soon add a second shift and begin to make acquisitions, too.

“We’re hiring, and we’re going to

Philpott CEO Jim Vaughn, left, and operations director Ron Stayer show of a new injection molder in Aurora. Stayer was recently put in charge of operations to help with the company’s new initiatives. ( Dan Shingler)

be hiring. We’re expanding and we have plans to hopefully have some M&A activity by the end of the year, too,” said Vaughn, who joined Philpott as chief operating officer about six months ago before taking over as CEO of the employee-owned compa-

ny in June.

At the moment, though, Vaughn and other Philpott employees are busy, and many of them are busy moving to Aurora.

The transfer of 11 employees from Philpott’s facility in West Union,

W.Va., is going on now and should be complete by the end of summer, Vaughn said. That part of the company’s business, Philpott Energy & Transportation Co., involves formulating and mixing chemicals used by shale drillers to complete their wells.

It’s green technology and not hazardous, Vaughn said, so it’s popular with drillers and safe to manufacture.

But it requires that Philpott send its employees to drillers’ well sites, where they operate hydration and mixing equipment. It’s become tougher to do that from central West Virginia, Vaughn said.

“That business is starting to pick up, but where is it picking up? It’s picking up in Ohio and Pennsylvania.

They still frack in West Virginia, but the growth is in Ohio and Pennsylvania,” Vaughn said.

It will be faster for Philpott trucks to get to the active drilling areas from Aurora. He’s currently looking to hire at least two new workers to service drillers, but warned it’s not a job for homebodies.

“That’s why all our guys are in the

field … it takes two guys at each well site. They’re on the road for weeks at a time. It’s like the Navy,” Vaughn said.

As for the China operations, that will take longer to make the move.

Philpott hopes to cut ties with its contract manufacturers there and move its operations near Shanghai to Aurora during the next 12 months.

The work in China is all contract labor, so there are no direct employees moving to the U.S. from China. But eliminating its contract production in China will require the second shift in Aurora, Vaughn said.

The company has become disillusioned with doing business in China, according to Vaughn.

“We decided we really weren’t in control of our destiny and the quality was not what our customers needed,” he said.

He also said that once all of the costs are considered, China just wasn’t as good of a deal for the company as many might think, despite its lower wages.

SEE AURORA, PAGE 37

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“There were all these ancillary costs people weren’t taking into account,” Vaughn said, noting those costs include travel and legal services, and potentially lost business because of slower reactions or lower quality.

“The cost of quality, fulfillment, shipping, taxes and duties – all those added up to more than it cost to manufacture in the U.S.,” said Vaughn.

And while Vaughn didn’t mention the threat or installation of tariffs under President Donald Trump, moving production from China might also mean that Philpott’s products aren’t subject to increased costs if tariffs are placed on all goods made in China.

Philpott is benefiting from at least one aspect of the current tariffs on steel and aluminum, however. The company makes molded urethane

FUND

CONTINUED FROM PAGE 1

Since EB-5 investors top objective is the visa, they are generally willing to accept a low return on their money, making them a cheap source of financing. Because of program requirements, the investments are typically five-year loans.

CIF has raised $240 million in investments from hundreds of investors attracted to the EB-5 visas.

“The immigration landscape right now is, obviously, not pro-immigration,” Strnisha said. “That’s the general view in the administration and that’s the general view in Congress. It obviously is demonstrated in a lot of ways, including (demands for increased border protection). In our case, that means they’re not about to provide more visas to the (EB-5) program.”

Congressional authorization for the 20-year-old program is set to expire on Sept. 30.

Beyond the general hostility toward immigrants in the nation’s capital, Congress has focused on some EB-5 programs, though not CIF, that have been guilty of fraud and abuse.

At a hearing on oversight of the

“saddles” used to hold large coils of rolled steel in place — picture a trough that cradles a coil and acts like a chock to block it from rolling in either direction. Tariffs have made them hot items.

“What we’re finding is that the steel tariffs that Trump is putting in, that’s causing our business to really pick up on steel storage. A lot of people are storing steel. They can’t get steel or they’re afraid they won’t be able to get steel from overseas. So we’re seeing our business pick up, which is a great thing for us,” Vaughn said.

To further capitalize on that trend, Philpott also has introduced a rack system, which enables customers to stack the steel coils three high and thus store more steel in the same amount of floor space.

Philpott does not disclose its specific sales or income figures, but Vaughn said business is good. The company is turning a nice profit on program in June, U.S. Sen. Chuck Grassley, R-Iowa, chairman of the judiciary committee, said that regional centers have used the program for personal financial gain, and some visa applicants were discovered to be promoting terrorism. Others in the Senate have argued against the program saying it is a way for rich people to buy legal status in the United States by investing in safe, luxury investments.

For those reasons, Grassley and a group of senators had come up with legislation to improve the program and tighten security. The legislation would have extended the visa program through to 2023, targeted visas to neglected rural areas and raised the minimum investment to $925,000 But so far, legislators are not acting, and USCIS director Lee Cissna has given Congress mixed signals on the Trump administration’s plans for the program.

“I have seen cases where people have undermined this program and have committed fraud,” Cissna told Grassley’s committee, while he suggested that Congress should let the program lapse in September. But, he added, “I am committed to working with Congress to finding a legislative solution.”

“A lot of people are storing steel. They can’t get steel or they’re afraid they won’t be able to get steel from overseas.”

— Jim Vaughn, Philpott Solutions Group CEO

sales of between $20 million and $40 million, he said.

The company is busy enough that it will add about four new people, along with 11 coming from West Virginia, to expand its chemical business. About eight more workers will be added with a second shift in the fall, Vaughn said.

The site currently employs about 16.

Beyond that, the company plans to grow further via acquisitions. Vaughn said Philpott is looking to acquire

“The immigration landscape right now is, obviously, not pro-immigration ... In our case, that means they’re not about to provide more visas to the (EB-5) program.”

— Steven Strnisha, Cleveland International Fund CEO

This is not the first time the program’s future has been in doubt, said Erin Brown, an immigration attorney in Cleveland with the Robert Brown Ltd. law firm.

“That’s happened many times before,” she said. “(The) Immigration (service) has talked about changing the minimum investment several times and so people are hurrying up and filing or they are uncertain if they want to make the investment because they are worried that when they file, the minimum investment required will be a million, not the half-million that is required now.”

But even if it remains viable, with-

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other companies in similar businesses, such as other plastic molders, including some that might help Philpott expand in some markets.

“We’re not going to be a pharmaceutical company. But we sell some things into the automotive market, so maybe it makes sense to expand our capabilities into that area,” Vaughn said.

Philpott has a strong cash position, access to the credit it needs and hopes to have a deal as soon as later this year.

It will need to be cautious and disciplined though, said Bill Ridenour, head of Polymer Transactions and a North Carolina investment banker who has long worked with companies in Northeast Ohio.

“Generally speaking, it is more of a seller’s market now since there has been so much M&A activity since 2010 when we came out of the recession,” Ridenour said.

“Also, it is an ideal time to sell be-

cause a buyer will be acquiring more after-tax income from a seller due to the lowering of corporate taxes due to the Tax Reform Act,” he added, noting that this also drives up prices.

That, and the fact there is currently a lot of cash in the market, means it can be easy for an optimistic buyer to chase higher prices for acquisitions, Ridenour said.

Vaughn, however, said he’s aware of the discipline required, in part from his former life as an executive at Fairlawn-based Omnova Solutions, where he worked on acquisitions.

He said Philpott needs to grow purposefully and strategically — but it must grow.

“You can constrict the hell out of it and fail, and you can expand to the broadest horizon you want and fail.

We’re going to be somewhere in between. I’m looking at adjacent markets that leverage our core competency,” he said.

out an increase in the number of visas allowed, CIF’s EB-5 program will stay on life support. USCIS only issues 10,000 new EB-5 visas a year and has quotas on the number of visas that can be awarded to individual countries.

“The backlog is a huge reason that, particularly Chinese nationals, are not very interested in the EB-5 program currently,” Brown said. “A lot of them applied back in 2014 and it looked like they would get their EB5s in a year, and they’re still not getting them.”

Strnisha said many of his investors are from China and Vietnam and they face years-long waiting lists to get visas.

“With those countries out of the picture in the near-term, because there are not more visas to handle the backlog of demand, our capacity to do more with EB-5 in the future is limited,” he said.”

Since its founding in 2010, CIF has invested in many projects, often investing between $25 million to $30 million in each Ohio project. In addition to the Flats redevelopment and the University Hospitals expansion, CIF’s investors have helped finance the Crocker Park shopping center, the Westin Cleveland Downtown ho-

tel, the redevelopment of the Ameritrust complex at East Ninth Street and Euclid Avenue and the One University Circle apartment complex.

With the EB-5 program in flux, Strnisha seeks other ways to attract investors, as he’s looking to have capital to invest in the next phase of the Flats development. Developer Scott Wolstein has submitted plans to the Cleveland Planning Department for Kenect Cleveland, a mixed-use complex on a parking lot on the east bank of the Flats.

He believes he can use CIF’s track record to woo investors who have invested to get visas and now have been repaid. The projects CIF invested in have already repaid 209 EB-5 investors $104.5 million.

“We’re going to those individuals who have been repaid and we’re talking to them about taking the money we repaid to them, or with other funds, and invest in another project in Cleveland, on a market rate basis,” he said. “This could be a new source for us and for Cleveland — use the good results we’ve had with these investors to build an interesting group of people who want to use their funds invested in the United States, specifically in Cleveland.”

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CREDIT UNION CONTINUED FROM PAGE 5

The regulatory rollback that took place this spring is having some benefits for banks and credit unions alike, but they fall short of the godsend many were hoping for.

Community bankers in this market have said the greatest perk of those rollbacks is a signal that no more new regulations are coming. Most institutions are keeping compliance staff they’ve added in recent years. If anything, tax reform is benefiting banks and their shareholders more than

CRAIN’S CLEVELAND BUSINESS

anything on the regulatory front. Rising interest rates are helping, too.

For the smallest financial institutions, though, which tend to be credit unions, Schenk said the benefits of regulatory cutbacks are minimal.

They’re already frustrating, he indicated, because those nonprofits weren’t engaged in the practices that led to the last economic downturn and spawned the Dodd-Frank Act. “There are a number of the rollbacks that have helped, but they wouldn’t help the smallest institutions that much,” Schenk said. “Those are the ones disproportionately feeling the squeeze.”

The situation is exacerbated by the

A ten-year snapshot Ohio credit union stats as of year-end 2017 compared to 2007: 276 institutions in the state, 33.2% decrease J

J

2.9 million members, 1.3% increase

J

$29 billion in assets, 5.4% increase

Source: Ohio Credit Union League

need for modern technology — something banks have more resources to achieve. Institutions that can’t afford the kinds of tech-based services customers expect are more likely to join with another credit union.

ADVERTISING SECTION

Although it’s still a tough environment for financial institutions and credit unions in particular, which are already hindered in their abilities to spread out those costs compared to banks, the loan demand is promising. Even the average dollar amount on loans themselves is increasing in the credit union world, according to the Ohio Credit Union League.

“It is certainly the case that smaller institutions, both banks and credit unions, are not experiencing as much success these days as in the past — and certainly not to the same level of success as the larger institutions are having,” Schenk said, comparing to-

day’s climate with decades past.

As far as catalysts driving growth, the sense is that bank scandals, like the Wells Fargo debacle with fake accounts, and consumer ire toward Wall Street is helping credit unions and their business models resonate with customers.

And credit unions increasingly are tapping into that.

“We think a constant drum beat of stories along those lines are causing people to rethink what they’re doing and (where they’re banking),” Schenk said. “At the national level, CUNA is in the throes of beginning an awareness campaign that we hope will create some traction as well.”

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Merchant & Gould, a national intellectual property (IP) law firm, promoted attorney Ryan C. Smith to partner. His practice focuses on chemical and life science technologies.

Smith concentrates on patentability assessment, filing and prosecuting U.S. applications, managing international patent portfolios, IP due diligence, licensing and joint development agreements.

Meaden & Moore is pleased to announce the election of Courtney Eaton, CPA to Vice President. Having started her career in our Akron office, she assumed responsibility as manager in charge of the firm’s Beachwood office in 2016 to help expand our service offerings and capabilities in Ohio. Eaton serves in the Assurance Services Group and has over 12 years’ experience advising clients in a variety of industries. She has been one of the key contributors to the development of our PE services area.

CBLH Design, Inc. CBLH Design is pleased to announce that William (Bill) Schubert has joined the firm as Director of Planning. With nearly 40 years of architectural experience, Bill will be responsible for master planning efforts, project management, site design, and plan development. He will work closely with our principals on guiding complex planning and design projects, and business development efforts throughout Ohio and surrounding states

Planned Parenthood of Greater Ohio welcomes Adrian Stover, the newly appointed Assistant Vice President, Development Operations. Adrian, and his team, will work with the development department and executive office to ensure the efficiency of Planned Parenthood development initiatives. He brings a decade of management, data analysis and donor relations experience in the health care sector; and holds a triple major, Bachelor of Arts degree from Walsh University. Adrian is a Canton, Ohio native.

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Ancora

Ancora

Ancora welcomes Mr. Andy Baszuk to the Insurance department where he will work with Ancora’s relationship managers to find appropriate life and long-term care insurance solutions for their clients. Andy brings 15 years of industry experience to Ancora from various business development and advising positions where he has worked with both representatives and with clients directly. We are pleased to have Andy join the firm and wish him success in our growing Insurance department.

Ancora is pleased to announce that Mr. Irving Katz has joined the firm as an employee after providing consulting services since 2005. Irv has been managing the firm’s information systems through numerous changes and upgrades while caring for technology assets and working with employees on their technology needs. Irv earned a Bachelor of Arts degree in English with a Minor in Computer Science as well as a Master of Science in Management Information Systems from Case Western Reserve University.

Benesch LeAnn Davis has joined Benesch’s Real Estate & Environmental Practice Group.

She focuses her practice on commercial real estate transactions and finance, land use and zoning, and real property-related civil litigation. She assists clients in all phases of complex real estate transactions, including planning, negotiation, legal research and analysis, documentation, and closing.

KNOW SOMEONE ON THE MOVE? For more information or questions regarding advertising in this section, please call Debora Stein at (917)226-5470 or email: dstein@crain.com

CRAIN’S CLEVELAND BUSINESS

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Jon Pinney

Managing partner, Kohrman Jackson & Krantz LLP On June 8, Jon Pinney, managing partner of the Kohrman Jackson & Krantz law firm, stood before a full house at the City Club of Cleveland and delivered a 30-minute address he titled, “Dead Last: Northeast Ohio’s Economy is Lagging and It’s Time to Do Something About It.” ¶ Since then, he has joined with auto dealer Bernie Moreno to propose the creation of Blockland, a sprawling startup incubator and tech campus designed to stimulate the region’s innovation sector. These moves are the culmination of months of thought and conversation that convinced Pinney that he should step up and start talking about shaking Northeast Ohio out of decades of decline. ¶ What got Pinney thinking was the 10 years he worked to bring a Republican National Convention to Cleveland. Pinney served as a member of the board, general counsel and treasurer for the committee that brought the convention here in 2016. His City Club speech focused on population decline and what he sees as a lack of coordination and collaboration among civic leaders on rejuvenating the local economy. — Jay Miller

Five things Travel destination on your bucket list?

Dubai. I would love to see what a new, emerging city looks like.

Which historical figure would you most like to meet?

President Franklin D. Roosevelt, thinking about what he took us through in World War II.

First hero?

San Francisco 49ers quarterback Joe Montana, because I was from Youngstown, as was the DeBartolo family that owned the 49ers. I got to meet Joe Montana twice, and he was the nicest guy.

Favorite spot/building in Cleveland?

Progressive Field, because it’s such a peaceful setting and a great ballpark.

What’s the best advice you’ve gotten?

Make yourself indispensable, from Bob Goodman, an amazing lawyer in town who taught me quite a bit.

Lunch spot Pho Thang Cafe 815 Superior Ave, Cleveland.

The meal One had Bún Chà Gio Chay, the other shrimp fried rice. They shared chicken cabbage salad.

The vibe This large, Vietnamese pho house is busy at lunch with a long, orange bar filled with more eaters than drinkers.

Though the address is Superior, the best entrance is in back, on Rockwell Avenue.

The bill $22.90 plus tip

Your speech got a lot of people, including civic leaders, speaking out on subjects that you raised that have not been as openly discussed in years. You got a lot of support as well some criticism. Did you expect the reaction?

I expected it. I didn’t expect it to continue. In many ways, that’s a good thing. The conversation isn’t dying down. I’m happy about that. I also expected a lot more pushback on the data, but that didn’t happen. I started this conversation and apparently I’ve become a sounding board in this sandbox. The challenge right now is it’s so overwhelming that people are struggling with how to tackle it and how do you get started. There have been countless discussions amongst the various organizations and political leadership that were very productive but (there was) no consensus.

In your speech you said, and I quote, “We are getting our butts kicked. We are dead last in most economic metrics.” But you made a point of focusing on the population decline in the region. Why? We were looking at population projections and what blew my mind was that of the municipalities and villages and townships in Cuyahoga County, all but three declined in population.

How does that affect the regional economy?

The biggest impact of population loss is the fact that we cannot, as a region, attract outside capital. The various organizations that control mass sums of capital have not approved of Northeast Ohio as an investment zone because of the declining population.

I’ve had several people reach out to me on this topic and they intend to explain that they’ve tried to get insurance companies — who have billions of investable funds in the form of loans for housing, commercial projects — that will not deploy their capital into our market because of the demographics, particularly the declining population.

In your speech you mentioned a program in Philadelphia, the Campus Philly program, that works to keep people who graduate from Philadelphia colleges in the area. Do you think that can work in Cleveland?

I’m working already to form an alliance

to build a Campus Cleveland program.

People agreed we need a program comparable to Campus Philly to market and retain the highest possible percentage of our college students who are passing through our colleges.

If you increase the percentage of those students who stay in the region through advanced internships, through better job placement, you keep them here, they plant roots, they get married and have kids.

But growing the population will take more than that, won’t it?

The one takeaway that no one has refuted from the speech is that there is not a single organization that wakes up every day and tries to tackle this issue. I’m trying to help form an alliance so there is data sharing, so that an organization emerges with significant staff and you leverage other resources — like the marketing arm of Destination Cleveland and the access to employers like the Greater Cleveland Partnership has. The outcome should be a super-regional organization that is trying to tackle the population issue. We have organizations for everything else; why don’t we have an organization for this?

So what next?

I think there is a lot of momentum to start to understand and tackle some of these issues. It’s not insurmountable — look what’s happened in Indianapolis and Nashville and Pittsburgh and Columbus, that have turned around. In 10 years, we could be a completely different market. Doesn’t it feel like we’re close, we’re just not quite there?

More broadly, you also touched on what sounded like a pitch for regionalism.

I’m not advocating full-blown regionalism. What I’m advocating for is taking a more macro-level view of our economy and understanding it better and bringing more people to these meetings that you can hear different perspectives from Lake County, Summit County, Lorain County. The magnitude of the problems that I’ve heard from in the countless emails I’ve gotten and in the meetings I’ve attended is overwhelming. It just takes a lot of coordination. My goal here is I started a really good conversation and I’m not stopping. I’m just excited to see it happen for one reason: I want to see this economy thrive.

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Volume 39, Number 32 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2018 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00.

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