JUNE 2022
INSIDE: The 2022 Legal Guide for Business Owners
Political Activism
& Business
Recruitment
Marketing
This Month’s Guest Editor
Andy Abraham
President, Burch & Cracchiolo
Phoenix Hot for Franchising $7.95 INBUSINESSPHX.COM
THIS ISSUE NAWBO – Phoenix
In Arizona, small business is a big deal.
The Arizona Commerce Authority offers a wide range of programming to support entrepreneurs and small business owners. Find tools to help launch, operate and scale your business with our online, interactive Small Business Checklist. View webinars in our Small Business Bootcamp to help you master everything from finances, to leadership, to business plans. If you want to improve your digital footprint, our Small Business Digital Academy offers hands-on training to help grow your presence online. Plus, we’ll connect you with fellow Arizona business leaders who can share valuable insights and growth strategies to help you find success. Whether you have questions about getting started or you’re looking for a strategic plan to take your business to the next level, we’re here to help.
azcommerce.com/small-business
JUNE 2022
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Startups
“BitFire Studios: Cutting-Edge Tech Serves Video Content Creators” and “GVC Creates Non-Insurance Healthcare Membership”
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COVER STORY
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GUEST COLUMNIST
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Your Business & the Law
Businesses have had to adapt and adopt a lot of change and attorneys are able to help them know what is needed as well as being the anchor that keeps them from getting pulled into trouble. In this month’s cover, In Business Magazine addresses specific areas of concern for business, from cyber security and healthcare to remote work.
FEATURE
BCBSAZ’s Foundation for Hope and Health
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This month spotlighting Blue Cross Blue Shield of Arizona, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community.
Tasks, Tasks – and Non-Promotable Tasks
Linda Babcock, Brenda Peyser, Lise Vesterlund and Laurie Weingart discuss the need for employers and employees to be mindful of equity regarding dead-end tasks.
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The Unknown and Underutilized COVID Business Stimulus
Randy Bianchi discusses the options of using the Employee Retention Credit.
PARTNER SECTION
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Phoenix and Arizona Are Ripe for Franchise Growth
Kent Craven discusses what makes us such an attractive target.
DEPARTMENTS
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Guest Editor
Andy Abraham, president of Burch & Cracchiolo, introduces the “Legal” issue.
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NAWBO – Phoenix
Feedback
Martijn Pierik, Skylar Reeves and Hilary Samples respond to In Business Magazine’s burning business question of the month.
SPECIAL SECTION
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Briefs
“Is a Business Equipment Subscription the Way to Go?,” “Dailies Top Stories,” “Local Standouts Recognized for Achievements and Philanthropy,” “Driving Electric Vehicle Advancement” and “Pickleball Kingdom Builds Its Base with Free Classes – in Indoor Comfort”
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INBUSINESSPHX.COM
By the Numbers
Population growth and office construction are thriving together – and two Metro Phoenix cities are among the country’s fastest growing cities.
CRE
“Phoenix Is the Next Area of Opportunity for Chicago-Based Development Group,” “Lincoln Property Co. Readies Next Phoenix Mega Project,” “IndiCap and AECOM-Canyon Partners Enter the Phoenix Market with Planned Industrial,” “ViaWest Group Closes on 4th Opportunity Zone Deal,” “Upscale Retail Town Center for Verrado” and “Dominium Addresses Area’s Affordable Housing Need”
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From the Top
Bringing the power to cannabis, Lilach Mazor Power sets a path through uncharted territory.
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Healthcare
“Optimizing Braincare Services” and “Detox Centers Expand as Overdose Epidemic Increases”
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Technology
“The Internet – Transforming the Economy” and “Scale Up E-Commerce”
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Legal
Attorney Christine Fort explores a new era of political activism for businesses, discussing the need to assess if, what and how to permissible engage.
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Books
New releases give fresh insights on business thinking.
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En Negocios
Feature articles in Spanish and English on Economia / Economy
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Economy
Alliance Bank of Arizona president Don Garner puts the economic trends forecast into perspective.
44
Nonprofit
Organizations need to recognize that seasonal residents to invest in second-home communities.
45
Assets
2022 Genesis GV70 Plus: A quick cup of coffee can be a promotional opportunity.
58
Power Lunch
Birdcall – High-Flying Chicken Concept
66
Roundtable
Louis Naviasky discusses the new focus on recruitment marketing as talent attraction today requires an expanded toolbox of tactics.
Metro Phoenix dominates the top spots on WalletHub’s recently released report “Cities Whose Unemployment Rates Are Bouncing Back Most”: Scottsdale (No. 1), Tempe (No. 2), Gilbert (No. 3), Chandler (No. 5), Mesa (No. 6), Glendale (No. 7), Peoria (No. 9) and Phoenix (No. 10); Vermont cities Burlington and South Burlington snuck in there at numbers 4 and 8, respectively. wallethub.com/edu/cities-unemployment-rates/73647
Together, we’ll find new possibilities The health and well-being of your employees matters. UnitedHealthcare is here to help you guide them toward brighter days ahead. From finding new ways of controlling costs to connecting them with medical care and mental health support, it’s good to have a health plan that’s on their side — and in your corner.
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Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of Arizona, Inc. B2B EI211205447.0 12/21 © 2021 United HealthCare Services, Inc. All Rights Reserved. 21-1202769-A
Words
OUR CONTENT CREATORS
June 2022
VOL. 13, NO. 6
RaeAnne Marsh Editor, In Business Magazine RaeAnne Marsh became editorial director of Phoenix-based InMedia Company in 2010 and helped launch Valley-wide business resource In Business Magazine. Her journalism career began more than 20 years ago, when she left California and 12 years of teaching to transplant in Phoenix’s vibrant entrepreneurial environment, and includes incorporating her own business, Grammar & Glitz, Inc., through which she has taken writing and editing gigs with business and media clients nationwide. Holding the magazine to strong editorial standards, she says, “New businesses are founded, out-of-staters bring new strengths, established businesses evolve and expand — all of which contributes to the dynamic vitality that I see as the mission of In Business Magazine to be the voice of and vehicle to nurture, in
Publisher
Rick McCartney
Editor
RaeAnne Marsh
En Negocios Editor Graphic Design
Edgar Rafael Olivo Benjamin Little
CONTRIBUTING WRITERS Linda Babcock
Madeleine MacRae
Randy Bianchi
John Mahlmeister
each monthly edition. It is my challenge to ensure each edition is packed with relevant information on a broad spectrum
Debe Black
Sindi Major Martinez
of issues, aimed at a readership that runs the gamut from entrepreneurial startup to major corporation.”
Tyler Butler
Jonathan McCulloch
Edgar R. Olivo
Rosaria Cain
Claire Natale
Editor, En Negocios
Kent Craven
Louis Naviasky
Marna Davis
Brenda Peyser
Sean Elstins
Richard Tollefson
As editor of the Spanish section of In Business Magazine, Edgar R. Olivo shares weekly content for Spanish-preferred small-business owners in Phoenix. As a first-generation Latinx and native-Arizonan, Olivo’s upbringing was filled with similar challenges that Latino communities in Arizona face when they engage with the economy. An entrepreneur and nonprofit executive, he is leading the charge to help strengthen a diverse, inclusive and sustainable entrepreneurial ecosystem in Arizona. His work is nationally recognized for establishing programs that help advance equitable economic recovery, and increase generational wealth for Latinx/Hispanic small business owners in Arizona. “I believe today is a moment for leading big change. Business ownership is a critical means to build community and individual wealth. I hope my work will demonstrate to the Latino community that the entrepreneur ecosystem in Arizona has their back.”
Guest columns are feature articles presented as a special, limited series as well as regular, ongoing series in In Business Magazine.
Tyler Butler
Guest Columnist – Social Impact
A long time corporate social responsibility practitioner, Tyler Butler is known for her expertise in creating, launching and developing successful social impact programs. Her commitment
Christine Fort
Lise Vesterlund
Don Garner
Laurie Weingart
Ioanna Ginsac Mike Hunter
Danielle Williams Leander Yaiva
Ania Kubicki ADVERTISING Operations Louise Ferrari Business Development Louise Ferrari Cami Shore Events
Amy Corben
More: Visit your one-stop resource for everything business at inbusinessphx.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessphx.com
to rallying people together to make a positive difference has created sustainable signature programs empowering people to give back in a myriad of ways globally. Butler operates under the ethos of “each one teach one,” and so her contributions to In Business Magazine provide her with an outlet to share the best of what companies are doing to aid humanity. Butler looks to shed light on good corporate citizens and share stories about the magic they are creating through their generous outreach efforts.
Joanna C. de’Shay
Guest Columnist – DEI
Joanna C. de’Shay is executive director of Diversity Leadership Alliance, the premiere education training organization in Arizona dedicated to eradicating racism, bias and prejudice. DLA’s goal is to create an inclusive community where each person is equally respected and empowered. De’Shay is an avid servant leader who was born in Accra, Ghana, on the western coast of Africa to a Nigerian father and a Russian mother. An immigrant herself, she believes in being a part of the solution to disrupt systems and is on a mission to create bridges and partnerships by educating companies, nonprofits and educational organizations on the vital need for diverse voices and fresh perspectives.
Don Henninger
Guest Columnist – Metro
As a 35-year newspaper veteran in Arizona, Don Henninger has always made journalism his passion as well as his career. Facts matter — especially in this day and age — and information is the foundation that enables citizens to be positive participants in their communities at all levels. Henninger has been fortunate to serve as a community leader and continues in that role today as director of the Scottsdale Coalition of Today & Tomorrow, which convenes leaders to work on issues in that city, and as a member of several nonprofit boards in the Valley.
Bruce Weber
Guest Columnist – Capacity
Bruce Weber sees In Business Magazine as a valuable forum for topics relevant to our business and nonprofit community. “I am deeply interested in organizational capacity and what makes organizations successful and impactful in the work they do. In my work in the community for more than 16 years, I have worked with all sizes of organizations and leaders in helping their businesses grow and expand their impact. My previous careers with Microsoft and Hewlett Packard involved working with business integration partners to design strategies to engage new markets. In today’s complex world, I enjoy exploring the possibilities and opportunities that change can bring.”
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President & CEO Editorial Director Financial Manager Office Manager Accounting Manager
Rick McCartney RaeAnne Marsh Tom Beyer Allie Schimmel Todd Juhl
Corporate Office InMedia Company 45 W. Jefferson Street Phoenix, AZ 85003 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 13, No. 6 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/ or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. ©2022 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.
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Giving USA Summit Tuesday June 21, 2022 3 pm to 6 pm Registration: 3 pm Program: 3:30 pm - 5 pm Reception: 5 pm - 6 pm
Bridging the Gap Between the Nonprofit Sector and Corporate Philanthropy The Association of Fundraising Professionals’ (AFP) holds an annual review of the Giving USA report. This year, we are inviting Executives from the business world to join us in this critical conversation. As a business leader, your contributions to the community are not only crucial for the nonprofit sector but also provide a variety of benefits to your bottom line.
Presentation of Report:
Location
Richard Tollefson, Founder and President of The Phoenix Philanthropy Group will present the new statistics and findings of the 2022 Giving USA report.
Arizona Heritage Center 1300 N. College Ave. Tempe, AZ 85281 Plenty of parking available
Richard Tollefson Founder & President The Phoenix Philanthropy Group
Panel Discussion: The Phoenix Philanthropy Group will host a panel discussion on the Giving USA trends along with key insights into corporate giving and beyond. Our panelists will include:
Latasha Causey Vice President, Community Development Officer Bell Bank
Morgan Bishop Fraser Executive Director Pakis Center for Business Philanthropy
Rick McCartney President & CEO InMedia Company Publisher In Business Magazine
Reception: Join us after the panel for drinks and snacks in the courtyard. The networking portion of this event will allow non-profit decision makers to interact and brainstorm with corporate Executives.
Register at https://bit.ly/giving-us-summit Early Bird - before June 16, 2022 @ 4:30 pm: $45 Member | $55 Non-Member After Early Bird cut off: $50 - Member | $60 – Non-Member
June 2022 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.
PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jess Roman, Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
Commercial real estate loans Because every detail makes a difference.
Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org
Visit StearnsBank.com/Phoenix Call (480) 314 - 4200
Rosaria Cain, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org
Follow us | Member FDIC Equal Housing Lender
Colin Diaz, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessphx.com.
ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Equality Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Scottsdale Coalition of Today and Tomorrow (SCOTT) scottnow.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org
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ANDY ABRAHAM, BURCH & CRACCHIOLO
Legal Guides the Way
Andrew Abraham is certified as a Real Estate Specialist by the Arizona Board of Legal Specialization and has been listed in Best Lawyers in America for Real Estate Transactions since 2008 and in every edition of Southwest Super Lawyers. In the 2011 and 2014–2022 editions, Andy has been voted among the top 50 lawyers in Arizona by his peers many times over. He is included among Arizona’s Finest Lawyers and is an AV® Preeminent 5.0 out of 5 peer review-rated attorney in Martindale-Hubbell. Andy has served as Burch & Cracchiolo’s president since 2017. bcattorneys.com
The term “the new normal” has become ubiquitous in our lives, referring to how we perceive the world and how we act in it. As businesses struggle to navigate the new normal – whether social or regulatory – attorneys can serve as their anchor and guide. The pandemic raised numerous challenges for attorneys, especially to look for creative ways to allow our clients to serve the community as best possible. We all heard the phrases “unprecedented time” and “new normal” on an hourly basis. At Burch & Cracchiolo, our goal was to provide trustworthy guidance and information to assist our clients in making the best decisions during a very fluid period. We met with political leaders to discuss temporary code revisions and waivers, negotiated financial adjustments including deferrals and achieved positive results by having complete candor with those that we met with seeking temporary relief from what would otherwise have been significant financial hurdles. Our clients knew we were their partner, and we would provide information to protect them during that time. More than ever, this has been a “we are all in this together” time for our industry, when lawyers partner with their clients and community leaders to achieve goals that are best for the public at large. We hope this will be a trend that continues. In this month’s cover, In Business Magazine addresses specific areas of concern for business, from cyber security and healthcare to remote work and including COVID-related content into contracts for protections. Firms like Burch & Cracchiolo and the others contacted for this June edition include a variety of practice groups comprised of attorneys who specialize in those particular areas, and this cover story shares insights in select practice areas on some of the important changes for business over the recent few years. This edition also includes the 2022 Legal Guide for Business Owners, a special section with details about law firms in our community. Gender equity is not a new topic but recent events have brought it once again to the fore. Within that subject is an aspect of job responsibility and career advancement that Linda Babcock, Brenda Peyser, Lise Vesterlund and Laurie Weingart discuss in feature article “Tasks, Tasks – and Non-Promotable Tasks” — to wit: dead-end tasks, which fall disproportionately on the desks of women and minorities. Politics is not just a hot topic but a volatile one. Businesses are often pushed to take a stance on various issues, and sometimes even become politically active themselves. In this month’s Legal feature, Christine Fort helps businesses assess if, what and how they may permissibly engage. With all the (sometimes conflicting) news about the economy, it is helpful to have Alliance Bank of Arizona president Don Garner put the issues into context in the Economy feature, “Eye on Arizona’s Economy.” Other important feature articles discuss the business opportunity of franchising (“Phoenix and Arizona Are Ripe for Franchise Growth”) and our thriving office real estate market (“Population Growth and Office Construction Are Thriving Together), while departments offer smaller articles on such varied topics as “Detox Centers Expand as Overdose Epidemic Increases” in the Healthcare section and “Is a Business Equipment Subscription the Way to Go?” in the Briefs section. In Business Magazine continues to develop a broad view on business-relevant information to help strengthen our Valley’s business community. I’m pleased to help bring this June edition to you, and hope you enjoy the read. Sincerely,
Andy Abraham President, Burch & Cracchiolo
Advice and Advisors For so long in our business careers we have looked to others to help us get through the lonely and difficult times businessowners experience. In this issue, we look at some of these new challenges business is experiencing. We talked to many attorneys throughout the Valley from firms large and small to see what we, as businessowners, should be focused on in protecting our companies and our people. See
Photo courtesy of
our cover story and our Legal Guide in this month’s issue for guidance.
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We want to thank Andy for quickly leading us through this issue. His example demonstrates what is great about our community of attorneys here, with his leadership over the past two years at Burch & Cracchiolo to ensure clients were protected and his staff was able to do their jobs for business. It is a different time, and a focus on legal issues
EN NEGOCIOS Manténgase informado sobre temas empresariales en español a través de En Negocios, artículos para los lectores de habla hispana en el área metropolitana de Phoenix. Visite inbusinessphx.com/ ennegocios para más información. Stay informed on business topics in Spanish through En Negocios, articles for Spanish-speaking readers in the Phoenix metropolitan area. Visit inbusinessphx.com/ ennegocios for more information.
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessphx.com Business Events/ Connections: businessevents@ inbusinessphx.com Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com
for business is an important way for us all to get through it. —Rick McCartney, Publisher
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessphx.com.
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SPEAKING OUT
What has been your biggest workforce issue or challenge over the past year or so, and how have you addressed it?
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com
For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.
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MARTIJN PIERIK
SKYLER REEVES
HILARY SAMPLES
CEO and Managing Partner Kiterocket Sector: Marketing
Proprietor Vivili Hospitality Group Sector: Hospitality
We faced a number of workforce challenges over the past 12-18 months, but the biggest one we faced is working remotely and how to maintain a strong company culture. When our leadership team realized how overwhelmed we all were, how different each person’s overwhelm is, and how we’d really only get through this by holding each other up, we started our daily Nine at Nine ritual. It’s a quick 9:00 a.m. check-in where each person lists: three things to know, three priorities for today, and three things they need. The first part is about sharing something personal to strengthen our personal bonds and gain better understanding of what’s important in our colleagues’ lives. The second is to help focus on putting one foot ahead of the next in this changed world. The final three are about getting support from others and taking care of yourself. It became a standing meeting at 9:00 a.m. throughout the lockdown, and although not mandatory, no one on the team would miss it. Although we’re back in the office three days a week now, the work-from-home culture has now become part of our business DNA.
The labor shortage has undeniably been the biggest challenge in the restaurant industry and is the one that is the most rampant. The hiring landscape has significantly shifted during the pandemic and our industry has been among the hardest hit. At Vivili Hospitality Group, we’ve had to get creative in an attempt to attract top talent. We’ve done a number of things to address this, but a main initiative was implementing a tuition reimbursement program to pay for college, no strings attached of requiring employment beyond graduation or restrictions on majors. We started with our local college here in Prescott, Yavapai College, and are looking to expand the program to include Arizona State University and Northern Arizona University soon. This helps with the more immediate need of incentivizing new and current employees to properly staff our restaurants but, even more importantly, it helps us invest back in employees and, in turn, the community. We’ve found the creation of this program helps us appeal to the type of employee everyone seeks — the hardworking and goal-oriented.
Marketing Director Mountain View Funeral Home and Cemetery Sector: Death Care
Kiterocket kiterocket.com
Vivili Hospitality Group viviligroup.com
As founder and managing partner of Kiterocket and Impress Labs, he brings to the team nearly 20 years of experience in public relations, journalism and marketing for the technology industry. He has advised C-suite executives at large global tech companies, helped fund and launch dozens of start-ups, and built up numerous client companies for successful acquisitions.
Skyler Reeves is the proprietor of Vivili Hospitality Group, headquartered in Prescott, Ariz. He is the largest restauranteur in the region, employing more than 150 people across six thriving restaurants that include La Planchada, The County Seat, The Barley Hound, Taco Don’s and two Rosa’s Pizzeria locations, plus a full-service catering and events company, Hawk & Hound.
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.
The biggest workforce issue we’ve experienced over the last year is filling positions. Shortly after the pandemic started, it was extremely difficult to find people who wanted to work in the funeral industry. We scheduled interviews, but many candidates wouldn’t even show up. Unfortunately, the number of families in need of our services peaked during the height of the pandemic. While we were short staffed, our funeral directors worked around the clock to make sure our families were taken care of in a timely manner. The tough times we went through finding reliable staff members taught us that boosting morale is key. People in the funeral home industry get burned out very easily, both physically and emotionally. Many times, our staff members are pulled away from their own families to make sure the needs of the families we serve are met. To keep spirits up and remind them how appreciated they are, our owner surprises employees with complimentary lunches, gift cards and even trivia games with prizes. We feel even the smallest gestures go a long way in reminding our Mountain View family that they are valued and needed. Luckily, we’ve been fortunate enough that we are seeing some normalcy back in our world and people are happy to come to work. Mountain View Funeral Home and Cemetery mountainviewfuneralhomeandcemetery.com Hilary Samples is the marketing director of Mountain View Funeral Home and Cemetery in Mesa. Founded in 1951, the family-owned funeral home is dedicated to helping others through difficult times and values giving back to the community. Our Cemetery and Advanced Planning Specialists, as well as Licensed Funeral Directors and Cremationists are trained to provide exceptional service.
QUICK AND TO THE POINT
DAILIES TOP STORIES
‘In Business Dailies’ Most Views Last 30 Days Here are the stories with the most views over the past 30 days (prior to press time) that were features in our In Business Dailies. The In Business Dailies hit email inboxes twice each weekday — at 9:30 a.m. and updated at 4:30 p.m. Sign up today at www.inbusinessphx.com/dailies-signup Commercial Real Estate & Development | Cover Story | May 2022
Our Industrial Market Is Booming! by RaeAnne Marsh
“We are seeing an industrial technologies renaissance, led by semiconductor companies like Taiwan Semiconductor Manufacturing Company building a massive campus
Is a Business Equipment Subscription the Way to Go? One of the barriers to starting a business is enormous, front-loaded capital outlays for equipment. Business owners can expect to face this capital expenditure (CapEx) again when equipment needs to be replaced. Equipment also incurs additional costs over time for parts, repairs and maintenance, as well as the inevitable cost of age-related underperformance. Equipment subscriptions are a way to distribute the burden of the machine’s cost across monthly or annual installments. Like a lease, subscriptions reduce the capital required to start a business and soften the blow of equipment failure, making them a desirable choice for businesses with limited cash flow. Subscription terms may be more favorable than traditional leases, which often charge egregious interest rates and do not include service on the unit. Subscriptions have already revolutionized business balance sheets. SaaS, or Software as a Service, is the most well-known business subscription type. SaaS enables business owners to access expensive software they need by paying monthly, rather than spending up front for pricey boxed solutions that aren’t scalable and may present security issues. As of 2021, the SaaS industry is worth $152 billion. There’s another key benefit to SaaS or equipment subscriptions. When an asset, such as machinery, is purchased, it is a capital expenditure. When a similar asset is attained through a subscription, it can be considered
an operating expense (OpEx), which is taxdeductible from the business’s income. Taking ice machines as an equipment example, a restauranteur may spend thousands to buy a commercial ice machine. After purchase, the countdown is on until the ice maker needs preventive maintenance, cleaning, filter replacements and small repairs, or until a major breakdown temporarily stops the unit (and ice supply). Mechanical issues aside, the asset cannot be upgraded or changed no matter how the business’s needs grow or shift. If the owner leases an ice maker, the initial outlay is avoided, and monthly payments for the unit may be tax-deductible OpEx costs. However, costs for maintenance and repairs and the manhours required to coordinate them still loom. If the owner signs up for a fullservice ice maker subscription, such as what we offer at EasyIce, he or she experiences all the benefits of a lease and offloads the hassles of cleaning, service and preventive maintenance, back-up ice and more. Plus, the ice machine can be upgraded to a larger or different style if business needs evolve. Equipment subscriptions offer businesses more flexibility and predictability, less risk and additional OpEx tax deductions. —John Mahlmeister, chief operating officer and co-founder of Easy Ice (www.easyice.com), co-headquartered in Phoenix, Ariz., and Marquette, Mich., the national leader in the fullservice ice machine subscription industry
Speaking of subscribing, why not get an annual In Business Magazine subscription for your managers and colleagues? Visit us online at inbusinessphx.com/subscribe to order now.
in north Phoenix and Intel expanding with Fab 52 and Fab 62 in the southeast Valley that are driving a whole ecosystem of investment,” says Chris Camacho, president and CEO of Greater Phoenix Economic Council. Government & Compliance | inbusinessphx.com | May 9 2022
Colorado River Water Shortage Caused by Climate Change Will Require Phoenix and Phoenicians to Adapt inbusinessPHX.com At their briefing on Friday, May 6, officials with the U.S. Department of the Interior, Arizona Department of Water Resources, and Central Arizona Project delivered a stark assessment of the Colorado River. Legal & Regulations | Legal | May 2022
Firm Ownership Now Open to Non-Lawyers by Andy Kvesic The Arizona Supreme Court last year enacted sweeping rules that revolutionize the practice of law in Arizona. While the general rule across the United States was that only lawyers could own and share profits in law firms, Arizona took a bold approach in turning that rule on its head, now allowing non-lawyers to own, profit from and participate in the management of law firms. This new business model is otherwise known as an Alternative Business Structure, or ABS. Growth & Enterprise | From the Top | May 2022
Jennifer Reynolds, Building Success in the Design Industry by Melissa Rein Lively Since 2004, Ideation Design Group has partnered with the world’s largest brands to execute their vision into functional works of art that deliver innovation through design. At the helm is Jennifer Reynolds, a design industry dynamo responsible for building the powerhouse firm from the ground up.
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QUICK AND TO THE POINT
LOOKING GOOD
Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS
Lifted Trucks Recognized for Revenue Growth With a two-year revenue growth of 67%, Lifted Trucks ranks No. 138 on Inc. Magazine’s third annual list of the southwest region’s fastest-growing private companies. Born of the annual Inc. 5000 franchise, this regional list represents a unique look at the most successful companies within the southwest region economy’s most dynamic segment–its independent small businesses. Locally owned Lifted Trucks sells and builds Arizona’s toughest trucks, with one-of-a-kind inventory and added off-road parts and accessories. liftedtrucks.com
LPC’s Krumwiede Honored with NAIOP Arizona’s Award of Excellence David Krumwiede, a 36-year veteran of the commercial real estate industry and senior executive vice president for Lincoln Property Company, has been named NAIOP Arizona’s 2021 Award of Excellence recipient. The award recognizes an individual who has made a significant and positive impact on the commercial real estate industry in Arizona over a period of at least 15 years, along with direct volunteer contributions to the chapter. lpcdesertwest.com • naiop.org
PHILANTHROPY
Plexus Worldwide Meets 30-Million Meal Milestone Plexus Worldwide, one of the largest direct selling health and wellness companies in the world, recently hit a major milestone by donating 30 million meals through their Nourish One® initiative to people facing food insecurity through with every bag of Plexus Lean sold contributes a donation equivalent to 14 meals to Feeding America®, providing at least 1.5 million meals annually. This achievement comes as a result of the efforts of Plexus Brand Ambassadors and team members in their ongoing commitment to fighting worldwide hunger. plexusworldwide.com
Sundt Foundation Grants Awarded to 16 Phoenix Charities The Sundt Foundation awarded $86,000 to 16 nonprofits in the Phoenix area during its current giving round. Established in 1999 as a way for employee-owners to give back to the communities in which they live and work, the Sundt Foundation awards quarterly grants to local Phoenix-area charities that support disadvantaged children and families. sundt.com • sundtfoundation.org
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Driving Electric Vehicle Advancement A 100% electric transportation future is critical to reducing carbon emissions in the Valley, yet existing technologies don’t meet the power and cost requirements that will drive widespread electric vehicle adoption. If EVs don’t have enough power or they cost too much, people and organizations will continue using their gas-powered vehicles. Exro Technologies is an energy technology company that recently relocated its corporate headquarters from Canada to Mesa. “Relocating to the Greater Phoenix area gives us access to the local supply chain, including potential customers and partners,” says Exro CEO Sue Ozdemir. “The geography also provides optimal testing conditions for our technology in all types of vehicles, from motorcycles to Humvees. The region’s talent pool of innovative minds and a high quality of life sealed the deal.” Exro is laser-focused on reducing component costs to make EVs accessible for all, and accelerating the transition to a sustainable, electrified and more equitable future. Its flagship technology is called Coil Driver™, and
it expands the capabilities of electric motors, generators and batteries inside EVs. Using intelligent power electronics, Exro eliminates the need for multiple motors and extends battery life to solve automakers’ and their equipment manufacturers’ performance-cost trade-off. Essentially, its technology makes EVs more powerful, allowing them to go farther distances on a single charge, while reducing costs. Exro is working on a number of interesting projects to meet the electric needs of all drivers. For motorcyclists, for example, Exro is making sure electric motorcycles deliver the same — if not more — speed and power that gasolinefueled bikers seek on the open road. Those who take public transit can expect an electric bus with Exro’s technology to ride smoother and enable savings that could potentially trickle down to the riders. By working with international auto parts suppliers, Exro is working to make every type of EV is better and less expensive. —Marna Davis Exro Technologies Inc. exro.com
Pickleball Kingdom Builds Its Base with Free Classes – in Indoor Comfort Arizona’s first dedicated indoor pickleball facility opened one month ago. One of the largest such facility in the country, Pickleball Kingdom sports the outdoor surfaces that pickleball players know and love with all the benefits of playing indoors. In fact, the idea for Pickleball Kingdom was birthed on January 9, 2021, as soon-to-be founder and CEO Mike Rodrigues and his buddies were standing in the sun on a windy day waiting for a pickleball court to open up. Pickleball Kindgom’s specialized AC ducts eliminate the heat and wind of outdoor courts. The sports-specific lighting illuminates the courts without the negative effects of the sun on the game and on players. Now, as the weather is heating up for summer, the window of opportunity to play on public courts becomes limited to early in the morning or after the sun goes down — and the wait times make the experience less attractive. Pickleball Kingdom’s
free app addresses that second issue by allowing players to reserve a court. Pickleball Kingdom is launching a new initiative to introduce pickleball to everyone. Pickleball 101 is a free class for the public, regardless of if they’re a member or not. It’s an introduction to the sport, overview of the rules, and coaching of the basic fundamentals of the game. “At the Kingdom, we believe that pickleball is good for you physically, socially and spiritually,” Rodrigues says. Believing the reason most people haven’t tried the sport yet is they don’t know anyone who will teach them, they don’t have the equipment or they don’t know where to go, Rodrigues sees Pickleball Kingdom as an ambassador of the sport, and offers a free Pickleball 101 class most days of the week to introduce people to the game. —Mike Hunter Pickleball Kingdom pickleballkingdom.com
Pickleball for the People: Arizona Pickleball Players League has been bringing team-based pickleball to regions across the state since the nonprofit’s founding in 2019. arizonapickleballplayersleague.org
METRICS & MEASUREMENTS
Population Growth and Office Construction Are Thriving Together A decade of office construction in the 20 fastest-growing U.S. cities by Ioana Ginsac
The last 10 years have brought about many challenges, beginning in the depths of the financial crisis and culminating with the beginning of one of the worst global health crises in a century that has affected every single part of everyday life — especially how and where we work. Yet, data shows that cities are still growing. They’re the place to be for work, play and growing up — and the office real estate sector has thrived alongside them throughout the last decade. To that end, we wondered if and where the two trends overlapped. So, we looked at a decade of office construction data in what the latest U.S. Census Bureau reveals have been the fastest-growing U.S. cities between 2010 and 2020. Among those top 20 are two cities in the Greater Phoenix area. Number 3 on our list is Gilbert, where the population increased 29% — ranking it also third among the fastestgrowing cities in the U.S. But Gilbert took the top spot in terms of office market expansion of the cities on our list: The total number of square feet delivered here during the last decade marked a 49% increase from its January 2010 totals. More precisely, at the close of 2020, existing inventory in Gilbert encompassed nearly 4.8 million square feet of office space, compared to the 3.2 million total at the start of 2010. What’s more, this most recent growth spurt is just the latest in the city’s strategic transformation from a small, East Valley town to a corporate headquarters destination. Vision-driven local administration investment into infrastructure, public safety, and quality-of-life amenities paved the way for the Rivulon business district — an exceptional, 250-acre, mixeduse development that has become home to international corporate tenants, including Isagenix International, the largest employer in the area; Deloitte, which occupies half of The Commons at Rivulon office development; Morgan Stanley, which expanded on its previously leased office space in Gilbert in December of last year; Merrill Lynch; and Amerifirst Financial. The second major Phoenix suburban submarket to rank among the country’s 20 fastest-growing cities was Chandler. The number of residents here increased 17% between the two most recent Census counts, which placed it 18th by percentage of population growth. In the meantime, the local office market recorded the second-largest pipeline yield by percentage increase throughout the decade, second only to Gilbert (49%) among the cities considered for this report. To be precise, 3,099,937 square feet of new Chandler office space was delivered between 2010 and 2020, representing a market expansion of 44% compared to totals recorded at the start of 2010. This was certainly a welcome boost, as existing inventory at the close of the decade encompassed 10,124,375 square feet of office space across 288 buildings, which took
METHODOLOGY
Chandler to the 74th-largest office market among the cities we surveyed. The largest single-building office completion in Chandler was part of the Allred Park Place complex. Building 17 delivered 355,734 square feet of class A office space across three floors. Completed in 2019, it’s part of a 633,000-square-foot, buildto-suit campus for aerospace and defense company Northrop Grumman. The property was designed to host the company’s launch vehicle design, development, manufacturing and testing divisions.
City
Population
Office Market
Growth
Expansion
1
Irvine, Calif.
45%
11%
2
Orlando, Fla.
29%
7%
3
Gilbert, Ariz.
29%
49%
4
Durham, N.C.
24%
18%
5
Fort Worth, Texas
24%
19%
6
Henderson, Nev.
23%
8%
7
Austin, Texas
22%
28%
8
Seattle, Wash.
21%
31%
9
Charlotte, N.C.
20%
15%
10
Denver, Colo.
19%
15%
11
Omaha, Neb.
19%
13%
12
Aurora, Colo.
19%
4%
13
Atlanta, Ga.
19%
8%
14
Irving, Texas
19%
16%
15
Jersey City, N.J.
18%
1%
16
Oklahoma City, Okla.
17%
22%
17
Reno, Nev.
17%
2%
18
Chandler, Ariz.
17%
44%
19
Bakersfield, Calif.
16%
8%
20
Raleigh, N.C.
16%
18%
Source: https://bit.ly/3PC1bng
The Greater Phoenix office market posted a rise in average rental rates during first quarter, despite the market’s negative net absorption, according to a report released by Colliers in Arizona. The first three months brought the highest number of sublease deals completed since the pandemic began, signaling the return of the area’s office market. corporate.colliers.com
Data for this report is per CommercialEdge and includes all properties with the primary use type of office. Properties selected had at least 25,000 square feet and were completed between January 1, 2010, and December 31, 2020. U.S. cities included here all recorded population growth during the last decade and had at least 1 million square feet of office space in total. commercialedge.com
Ioana Gînsac is a creative writer covering all-things-CRE for several Yardi product publications. Topics include industry news, U.S. office and industrial market reports, as well as features on development, architecture, urbanism, proptech, design and more. Her work has appeared in AmericanInno, Bisnow, BusinessInsider, Commercial Property Executive, Curbed, Fast Company, Forbes, GlobeSt, Inc, Patch, The Real Deal.
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ENTREPRENEURS & INNOVATORS
BitFire Studios: Cutting-Edge Tech Serves Video Content Creators
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BitFire Studios bitfire.studio
GVC Creates Non-Insurance Healthcare Membership GVC (Give Virtual Care) Health Tech is a noninsurance, best-in-class, virtual healthcare solution offering a comprehensive healthcare membership of unlimited virtual access for general health, mental health, crisis care, expert second medical opinions and discounted prescriptions. With labor shortages plaguing the country, the GVC private-labeled Give Virtual Care App brings an affordable and immediate solution to help large and small companies attract and retain part-time, hourly, seasonal and 1099 employees that do not qualify for the employersponsored health plan. GVC decreases employee absenteeism, increases productivity and differentiates companies from their competitors. GVC Health Tech’s monthly membership includes the member plus a spouse or life partner and up to 15 additional family members in the home. Tim Ummel, president and CEO, says the idea for GVC began in March 2020, when the
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an opportunity,” says Sullivan. “Many of our clients, like Judge Jerry Springer and The Tamron Hall Show, were forced to enforce COVID protocols and produce shows from disparate locations. Our technology allows production crews to be in any number of locations while hosts are also off-site, and still produce a full show as if everyone was in the same room.” BitFire Studios offers content creators a place where they can generate new material at a time when the pandemic has accelerated an already ravenous appetite for video. And Sullivan notes Phoenix is also just a short flight from Los Angeles, with much cheaper costs, “so we see the interest level in Phoenix productions definitely increasing.” —Mike Hunter
quarantine happened and people began to lose their jobs. “I began thinking about my friends in the golf industry who are 1099 or contract workers, who are hourly or part-time employees. And how there is this gap that exists in the healthcare industry that needed to be addressed for anyone who is out of work or who is not eligible for company health insurance policies.” For Ummel, COVID opened the door to creativity. “COVID has changed the way we think, the way we work. There are no rules, no office to confine us,” he says. “I wanted to blend tech and social impact to do good in the world and GVC Health Tech is the result of that.” Taking the advice, “Yesterday is over. I can’t change it; I can only focus on tomorrow,” Ummel says, “I focus on the business and the mission and how we can keep propelling it forward.” —Mike Hunter Give Virtual Care Health Tech gvchealthtech.com
START HERE. Every step of a startup leads to questions. The Arizona Commerce Authority has got answers and tools to help you navigate the many stages of your business. From events to success stories, this is your one stop for everything startup. azcommerce.com/start-up
Photos courtesy of BitFire Studios(top), Give Virtual Care Health Tech (bottom)
Now with offices in both Phoenix and Boston, BitFire Studios opened in partnership with Alice Cooper’s Solid Rock Teen Centers — which inspire teens to grow through music, dance and art — providing vocational training in sound and recording, lighting, staging and video production. “The mission of the Solid Rock Teen Centers fit perfectly with the work we do here at BitFire Studios,” says Bob Sullivan, president and CEO. “Our partnership will allow youth access to our studios and the opportunity for us to mentor and augment their video production and broadcasting skills. It’s important for us to give back to the community and this opportunity is a perfect fit.”
BitFire Studios opened its doors in Phoenix in Oct. 2021. At that time, BitFire Studios joined BitFire Networks, which came to be in July of 2020. BitFire Networks & Studios is the only combined company of its kind anywhere in the country — combining a state-of-the-art LED studio with a proprietary IP transmission network designed to take a client’s broadcast quality video wherever it needs to go, securely, reliably, over the internet and all under one roof. “After we started the network in 2020, the next logical step in our business plan was to open a studio space to create complementary, original content to the work we were doing with our broadcast transmission clients,” says Bob Sullivan, president and CEO, whose experience in the industry spans more than four decades. The broadcast production facility in North Phoenix boasts 16,000 square feet of production space. Its cutting-edge technology highlights the use of Augmented Reality, Virtual Reality and Mixed Reality, emphasizing the use of computergenerated content and creating intricate new worlds as was seen on Disney’s “The Mandalorian.” Ultra-high-resolution LED screens and floors wrap around the sets, enveloping hosts in any location imaginable. Expensive location shoots can now be flawlessly created in studio with the perfect lighting. “Starting a new business during a pandemic is always a challenge, but because of the work we do, it actually created
PROPERTY, GROWTH AND LOCATION
Phoenix Is the Next Area of Opportunity for ChicagoBased Development Group
The Phoenix metro area is home to some of Chicago’s greatest exports — Chicago Cubs Spring Training, Portillo’s and Lou Malnati’s Pizzeria, to name a few. Soon, Phoenix will also be home to Belgravia Group’s first out-of-Chicago development — Portico. It’s a monumental and exciting move for the 70-plus-year-old luxury development firm — and a natural one. Belgravia Group’s chairman, Alan Lev, has spent many years living and working in Scottsdale and Chicago. He fell in love with the community, the desert and the potential to bring Belgravia’s place-making expertise to its residents. For its first project, Belgravia will develop a luxury condominium community at the heart of DMB’s One Scottsdale masterplan, set to debut in 2023 with one-, two-, threeand four-bedroom residences ranging from $540,000 to more than $1,700,000. Here’s why Belgravia Group sees Phoenix as the next great area of opportunity.
GET REAL
by Mike Hunter
Lincoln Property Co. Readies Next Phoenix Mega Project LPC Desert West, the Southwest arm of Dallas-based Lincoln Property Co., has completed a $53 million, 140-acre land acquisition in Glendale, Arizona, for its next mega metro Phoenix industrial project, Luke Field. The $515-million, 2.3-million-square-foot development is bordered by Litchfield Road, Northern Avenue, the new Northern Parkway and Luke Air Force Base. It is minutes from the Loop 303. lpcdesertwest.com
LIMITLESS POTENTIAL
While the Phoenix metro area is the fifth-largest metropolis in the country by population, there is still plenty of land to develop, and Belgravia sees the opportunity for further development that fits the unique character of Scottsdale’s surroundings. While other major U.S. cities are constrained by geographic barriers and historic structures, Phoenix’s wide-open space makes it an area of great potential. We’re seeing the city come together before our very eyes year after year. This gives developers the opportunity to craft communities truly from scratch, rather than working around previously constructed structures. That is evident in the design of Portico, which stretches across nine discrete buildings with views of the McDowell Mountains and room for amenities like an outdoor pool, upscale clubhouse and state-of-the-art fitness center.
LUXURY DEMAND
IndiCap and AECOM-Canyon Partners Enter the Phoenix Market with Planned Industrial IndiCap, a newly formed boutique commercial real estate company
As the demand for housing continues to grow throughout the country, Scottsdale is experiencing strong demand for luxury properties. Many people are moving from out-of-state markets with higher overall real estate selling prices, which allows them to buy more in Phoenix. North Scottsdale’s world-class golf courses, restaurants and entertainment destinations make it a prime market. Portico has a wait list of more than 1,200 prospects awaiting more information about the property even before Belgravia has started to take reservations for units. Cambridge Properties, the brokerage for this development, continues to receive daily requests from those seeking additional information about Portico.
specializing in industrial investment and development in the Arizona and Nevada sectors, in a joint venture with AECOM-Canyon Partners, announced its entry into the Phoenix real estate market with the recent $48-million acquisition of two parcels of land totaling 113 acres in the Eastmark master-planned community located in the heart of the Mesa Gateway submarket. aecomcanyon.com • indicapinc.com
Images courtesy of LPC Desert West, IndiCap, ViaWest Group (top to bottom)
THE CHICAGO-PHOENIX CONNECTION IS STRONG
A quick drive around the Phoenix metro area will quickly reveal Chicago connections. From familiar restaurant names to a ubiquitous Cubs apparel, Arizona has been a vacation spot and winter home for Chicago residents for decades. Now more than ever, Chicagoans are moving to the Valley and calling it home. With all the Chicago staples in place, who could blame them? And, while Chicago is still Belgravia Group’s home, the company is excited to bring its own mark to the Arizona landscape. —Jonathan McCulloch, co-CEO at Chicago’s Belgravia Group, where he’s worked for the last 18 years, and a co-founder of Lakewest Venture Partners and a Venture Partner at Dundee Venture Capital Belgravia Group belgraviagroup.com Cambridge Properties cambridgeproperties.com Portico porticocondos.com
ViaWest Group Closes on 4th Opportunity Zone Deal ViaWest Group, in a joint-venture with American Opportunity Zone Advisors LLC, has acquired an 8.8-acre land parcel in Goodyear, one of the top 10 fastest-growing cities in the U.S. and Arizona’s secondfastest-growing city, adding a valuable development parcel to its extensive portfolio. This unimproved land site is situated immediately south of its Goodyear Crossing Industrial Park project and marks the fourth Opportunity Zone deal for ViaWest Group. viawestgroup.com
Did you see the “Our Industrial Market IS Booming!” cover story form the May 2022 In Business Magazine? Visit inbusinessphx.com/issues to find the May 2022 issue.
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PROPERTY, GROWTH AND LOCATION
Upscale Retail Town Center for Verrado A major retail center is due to start taking shape mid next year at the Verrado development in Buckeye. DMB Associates, the master developer of the 8,800-acre Verrado masterplanned community, is partnering with Vestar, the largest privately-held shopping center owner, developer and manager in the western United States, to create a dynamic retail center. Verrado Marketplace will include more than 500,000 square feet of commercial space and will be poised to serve as a Town Center for not only the residents of Verrado but also the residents of Buckeye to enjoy. Verrado Marketplace will be designed to complement the small-town neighborhood charm that is the hallmark of the Verrado community. It is anticipated the project will feature a premier grocery store as well as other uses such as apparel and home decor stores; department store; movie theater; and several new specialty shops, restaurants and services. The project will feature large public outdoor spaces rich in amenities that will serve as another gathering spot for all the surrounding communities. Vestar is well known for hosting hundreds of free community events each year at similar projects like Tempe Marketplace and Desert Ridge Marketplace.
The Marketplace will be developed at the northeast corner of Verrado Way and I-10. It is expected to break ground in mid-2023 following necessary approvals from the City and will complement the existing commercial services already in place on the west side of Verrado Way. —Mike Hunter DMB Associates dmbinc.com Verrado verrado.com Vestar vestar.com
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With the grand opening last month of Solstice of Mesa, Dominium celebrated its first new construction project in Arizona — a 289,840-square-foot, 237-unit apartment complex for seniors earning no more than 60% of area median income. Located at Hawes and Broadway roads, the project is already 100% leased due to need in the area. Tofel Dent Construction of Tucson was the contractor and Todd & Associates of Phoenix served as the architect. The community has a fitness room, card room, craft room, salon, library, club room, theater, outdoor walking and sitting areas, grilling space, pool and lounge area. Solstice of Mesa will support green initiatives that will generate more than 1 million kilowatt hours of solar energy, providing up to a projected 50% in energy savings for the property. Dominium’s third and fourth projects in Arizona — Casa Azure and Aviara Flats, in Phoenix’s Maryvale neighborhood — broke ground the day after Solstice’s grand opening. Expected development costs for the two projects total $203 million. Casa Azure will bring 196 units of affordable senior apartment homes in the winter of 2023; Aviara Flats will bring 372 units of affordable apartment homes for families in the summer of 2024. To qualify for this housing, residents must earn less than 60% of the area median income. In addition to providing 568 affordable apartment homes to the area, the developments will feature unique design
Named a Best Managed Company by Deloitte in 2020, Dominium owns and manages more than 37,000 homes at more than 220 sites in about half of all U.S. states.
amenities that include a transit-oriented public plaza adjacent to a future Valley Metro light rail station, and solar panels to offset electricity expenses. Dominium has been in the affordable housing industry for 50 years and manages more than 38,000 apartments in 22 states; it has a national reputation of developing high-quality properties that it owns and manages for the long-term. To help address Arizona’s housing crisis, Dominium has opened an office in Phoenix and is collaborating with the Arizona Department of Housing, the Arizona Industrial Development Authority, and a number of other investor partners. Dominium’s current new construction pipeline consists of more than 1,100 units of affordable housing, with an additional 3,000 units proposed across the Valley. —Mike Hunter Dominium dominiumapartments.com
Photos courtesy of DMB Associates (top), Dominium (bottom)
Dominium Addresses Area’s Affordable Housing Need
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Accelerating success.
MINDING THEIR BUSINESS
Lilach Mazor Power Brings the Power to Cannabis Setting a path through uncharted territory
HIGH POINTS OF MAZOR COLLECTIVE • Mazor Collective is a cannabis brands company based in North Phoenix. • A vertically integrated company, Mazor Collective operates a cultivation facility, extraction, manufacturing, R&D, packaging and logistics, one retail store (Giving Tree Dispensary) and three brands available across 80 stores in the state. • Founder and CEO Lilach Mazor Power employs more than 70 employees. • Power also serves as vice president on the board of the Arizona Dispensary Association.
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Lilach Mazor Power is the founder and CEO of Mazor Collective — the only woman-majority-owned Arizona cannabis company. The collective includes vertically integrated Arizona-based Giving Tree Dispensary as well as product lines Kindred; Sneakers; and a cannabis for menopause brand, Revelry. Power has served nine years in the industry with a focus on R&D and retail. Prior to the proposition to legalize medical marijuana in Arizona in 2010, Power was in the process of starting a wellness company to support people with chronic pain. But when legalizing marijuana came on the ballot, Power saw the opportunity. She started her company in 2013, when medical marijuana was first legalized in Arizona. “I have always had an entrepreneurial spirit and wasn’t afraid of cannabis,” says Power. “It fit my personality to start a business that’s not boring. I live at the crossroads of huge risk with huge potential.” Power acquired a cannabis license in 2011 and launched her first business, Giving Tree Dispensary, and started a growing facility. The desire to help others was still the foundation of this company. Power began learning more about the health benefits cannabis can bring to a variety of symptoms and uses. “For years, I referred to the company as a ‘wellness center’ because of the stigma surrounding cannabis,” shares Power. “People didn’t want to work with us, or invest in the business, provide loans and more. It was uncharted territory. It would have been much easier to open a restaurant, but that’s just not me.” Power had to learn how to do every aspect of the business — there weren’t many experts in the field available to help. One big lesson came from hiring a grower who had been growing cannabis plants in his basement. He designed the grow facility like what he had setup at home and it failed. Translating a small at-home operation to a 4,000-square-foot commercial space didn’t work. The grower quit and Power was left to start over — learning from the mistakes. In the startup phase of the business, Power describes her and her team’s efforts as like a bulldozer: pushing forward, digging in and making it work. The business grew dramatically
in the first few years. The revenue tripled in the first 18 months, and a few years in, there were 60 employees. Power recalls that there wasn’t a specific moment when she realized something needed to change but finally saw that all she was doing was putting out fires and not being the leader she wanted to be. That is when she defined each department and hired a manager, creating a formal leadership team. Power learned from her own experience the value of surrounding herself, as a new business owner, with the right people — friends, colleagues, a “personal board” — the people who would give her free advice. It was someone on her leadership team who suggested she formalize and better organize the larger Collective, ultimately helping each brand. Putting the leadership team in place has allowed Power to better allocate her time and empower her employees. The newest addition to the Mazor Collective is Revelry, Cannabis for Menopause — the only cannabis pill formulated to treat perimenopause through post-menopause. Revelry is the fourth brand in Mazor Collective, a unique approach Power has taken to managing her business. When starting a new business, she first defines who the audience is, then builds the brand around it. She asks herself, “What would bring value to their [the audience’s] lives and make them happy?” One of Power’s unique strengths is her ability to identify these things and uniquely cater to different audiences. Revelry was born from Power’s experiences with women shopping at Giving Tree Dispensary. Women were seeking support for menopause symptoms. Women empowerment is one of Power’s passions and she wants to change the conversation around the often ignored topic of menopause. Since establishing Giving Tree in 2013, Power has placed a strong emphasis on corporate citizenship and has raised more than $100,000 for charities. In 2021, Giving Tree Dispensary was named to the Inc. 5000 List of America’s fastest-growing private companies. Power also has operations in Puerto Rico and plans to expand to Israel. Mazor Collective mazorcollective.com
Revelry Cannabis is a product line designed to alleviate the symptoms of premenopausal and menopause and it is changing women’s lives. Headquartered in Phoenix , the brand is working on licensing in Illinois and plans to bring this innovative solution to women across the United States.
Photo courtesy of Austin LaRue Photography
by Claire Natale
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YOUR BENEFIT IN BUSINESS
WELL WELL WELL
Optimizing Braincare Services Wave Neuroscience has partnered with Arkos Health — a risk-bearing medical group delivering virtual and in-home clinical services under value-based arrangements — to increase access to vital mental health services, offering its at-home Braincare™ technologies to Medicaid beneficiaries in Arizona. The program launched last month in Maricopa, Pima, Pinal and Yuma counties, with expansion planned to other counties and states in the future. As part of Arkos Health’s mobile behavioral health program, highly trained care teams will bring Wave Neuroscience’s Braincare assessment tools and Braincare technology directly to those who need it. By providing care in-home, the program removes barriers to entry such as transportation to a care facility and time off work to seek treatment. Patients will be using Sonal, Wave Neuroscience’s athome device that uses personalized, non-invasive, drug-free, gentle magnetic fields to reshape brainwaves and optimize function to effectively improve health for general well-being. More than 12,000 people have seen positive results from using Wave Neuroscience’s technology in-clinic. While many wellness organizations and solutions focus on indirect ways to improve brain health through external means (e.g., special diets, exercise regimens, etc.), Wave Neuroscience takes a direct approach utilizing brain-mapping technologies to better understand an individual’s brain function and optimize performance with targeted stimulation protocols tailored to fit their specific needs. In alignment with both Wave Neuroscience’s and Arkos Health’s missions, the innovative program will provide greater access to personalized healthcare, particularly to those hoping to improve their cognitive function. The collaborative initiative addresses a growing need for improvements in overall wellness and provides care where and when it is needed while mitigating costly hospital stays and ineffectual treatment plans. Members in Arkos Health care programs have a 41% reduction in hospital readmission rates and a 64% reduction in emergency department readmission rates through their “Care Anywhere” method. —Mike Hunter arkoshealth.com • waveneuro.com
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Detox Centers Expand as Overdose Epidemic Increases A May 2022 report by the Centers for Disease Control and Prevention found that more Americans died of drug overdoses in 2021 than any previous year. Out of the 107,622 casualties, more than 80,000 people died using opioids, including pain pills and fentanyl, a drug almost 100 times stronger than morphine. In Arizona, the epidemic continues to increase as well, where more than five people die every day due to opioid use. Last year, more than 2,000 Arizonans’ lives were claimed, with a majority of people being between the ages of 25 to 34. In 2021, Scottsdale Recovery Center saw an 11.63% increase from 2020 in overall patient admissions, with a total of 403 clients in recovery. So far in 2022, there have been 271 total admissions, almost four months ahead of admissions from last year. The grim numbers and crippling effect that drugs are having on our state and country has prompted major organizational expansion for SRC. To address and accommodate the need for comprehensive addiction recovery options, SRC has recently opened or acquired several properties that will house the influx of individuals seeking support. In November 2021, SRC opened a nine-bed detoxification facility to ensure that we offer the full spectrum of services. The detox program serves as the foundation to wellness and reinforces a programmatic structure to design an individualized approach to success. Since its opening, the location has admitted 202 patients. Next came The Trullies of Scottsdale, a 12-unit condominium complex, a certified sober living community through the Arizona Recovery Housing Association and the Arizona Department of Health Services. The location helps residents in recovery maintain an alcohol- and drug-free lifestyle by establishing an environment that supports and reinforces daily sober activities.
The most recent expansion effort is the opening of a new behavioral health residential home to support clients in recovery from substance use disorders. The Sweetwater Center is a 10-bed facility where clients can reside for up to 60 days as they move along in the recovery program. The program is also licensed by the Arizona Department of Health Services and Joint Commission accredited, with medical and clinical services available for clients who have transitioned from a hospital or directly from SRC’s detoxification unit. The clinical, medical and psychiatric components of all three new company locations, plus the three existing inpatient, outpatient and sober living programs at SRC, meet the individual needs of all participants as presenting issues continue to revolve around mental and physical health, substance abuse and co-occurring disorders. As we anticipate and prepare to meet the individual needs of those who are struggling with addiction, we will continue to collect and disseminate data to ensure that the evolving trends in therapeutic intervention are met. Our expansion has been fully intentional and will continue to prioritize the health and safety of our ever-growing population. We as an organization benefit from functioning within the parameters of our intended purpose. We intentionally contribute to the calm, and not the calamity. This allows us to meet the individual where they are and reinforce the organizational mission of SRC, to reconnect, rebuild and recover. —Leander Yaiva, CEO at Scottsdale Recovery Center (scottsdalerecovery.com) cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm azdhs.gov/opioid/ azdhs.gov/opioid/#dashboards-overdose-deaths
Note: Information herein is NOT intended to be taken as medical advice. No therapeutic or medical claims are either implied or made. Before starting any addiction detox, treatment or recovery program please consult with a health care professional. DO NOT ALTER ANY MEDICAL TREATMENT, OR THE USE OF MEDICATIONS, WITHOUT THE PERMISSION OF A LICENSED, MEDICAL CARE PROVIDER. The information herein is not intended to diagnose, treat, cure or prevent any disease.
The Greater Phoenix region hosts a number of world-class hospital systems and continues to grow rapidly as a top health care hub. With sustained growth, Arizona is projected to have a nursing shortage of 28,000 by 2025, according to a study by Becker’s Hospital Review.
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LIFE CAN CHANGE PRETTY QUICKLY. LET US HANDLE THE OTHER STUFF, SO YOU DON’T MISS WHAT MATTERS MOST.
INNOVATIONS FOR BUSINESS
Scale Up E-Commerce
TECH NOTES
The Internet – Transforming the Economy The Economic Impact of the Market-Making Internet, a study released every four years by the Interactive Advertising Bureau (IAB), reported recently that the internet contributed $48 billion to the state’s GDP in 2020 and accounted for 135,900 jobs in Arizona. The growth in Arizona’s internet jobs has been remarkable, going from around 37,000 in 2012 to just under 136,000 in 2020 — a growth rate of 265%. Nationally, the study finds the internet economy grew seven times faster than the overall total U.S. economy, creating more than 7 million jobs in the last four years. Recently, the IAB helped launched a national coalition, Internet for Growth, to help capture the stories of the millions of creators, entrepreneurs and small businesses that rely on the ad-supported internet so that as policy makers consider regulations, they have a full understanding of how the internet is being used to help grow and transform our economy. Internet for Growth supports the transformative role the advertising-supported internet plays in empowering America’s small businesses, ensuring people understand the limitless opportunity the internet provides for creativity and commerce, fair competition, and connecting with consumers on mutually shared values and interests, no matter the background or geography. Internet for Growth has quickly grown to include more than 300 small businesses — including Arizona-based entrepreneurs Margaret Dunn, CEO of Dunn Transportation; Max Fose, President and CEO of Fose+McKay; and Allen Affeldt, the owner of the La Posada hotel in Winslow. The dramatic job growth in the internet’s economic impact can be attributed to a number of factors, including the internet’s ability to improve and refine advertising and marketing approaches, particularly for small businesses. “The internet lowers cost to entry for all businesses, while providing a significant benefit to small businesses,” says Max Fose, president of Arizona-based advertising agency Fose+McKay. “Small businesses and the self-employed created 38% of internet jobs — a larger percentage than medium (28%) or large firms (34%). This shows how the internet democratizes business creation, allowing the smallest of firms to compete.” —Mike Hunter Internet for Growth internetforgrowth.com
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All e-commerce businesses hit a plateau at some point. They grow rapidly but, once they hit a certain amount of revenue, they can’t seem to scale beyond it. Plateaus are scary but completely normal and totally fixable. With a good e-commerce strategy, businesses can expand their horizons, remove bottlenecks, and grow faster than ever.
CUSTOMER REVIEWS
Businesses aren’t the only ones that use analytics. Customers crunch the numbers, too. Before buying anything, most people look at reviews, read forums, ask their friends and gauge the public opinion on a product. This phenomenon is called social proof — it’s the idea that people look at how others behave before making decisions. Social proof is a powerful tool and, if a business just needs more customers, it’s a great place to start. The best way to build social proof is to maximize word-of-mouth marketing. If a customer hears about a product or service from a friend, they’ll probably purchase it. Reviews and testimonials are in close second by providing the personal experience that customers need to make decisions. All reviews and testimonials start with a good service, but many businesses that have an awesome product don’t collect the positive feedback their customers want to share. Apps like judge.me and stamped.io handle review collections for businesses. They prompt users to leave reviews, often with coupon incentives. Reviews and testimonials are the smooth, buttery voice of a good product — they convince new customers to buy the goods they need. With well-planned social proof, any business can grow its demand.
SEO
Whether a store has a physical location or lives entirely online, search engine optimization (SEO) is vital for every e-commerce business, big and small. When executed properly, it’s free leads directly to the business’s site. Stores with a brick-and-mortar location should focus on Google My Business, a service that lets merchants control how their store displays in searches. Without a doubt, Google My Business is the single most important SEO tool for local searches. The interface is very easy to use — businesses just add their business information, upload photos, get customers to leave reviews and let Google do the rest.
ORDER FULFILLMENT
Most e-commerce businesses face a huge bottleneck: order fulfillment. Small stores struggle to single-handedly package and deliver countless orders to customers and big businesses aren’t spared, either. Multichannel e-commerce is extremely difficult to pull off, especially when dealing with B2B, B2C and bulk sales. Order logistics slow growth, so improving fulfillment can jumpstart a business. Most businesses can streamline their deliveries through a dedicated fulfillment service, like Shopify Fulfillment Network or Rakuten Super Logistics. These services handle deliveries, returns, inventory and more so that merchants can focus on the product. Creating the perfect product is hard, but shipping it out to customers is a completely different challenge. It can help to outsource the job or install an app to streamline logistics.
ALL-IN-ONE PLATFORMS
Many major e-commerce stores grow exponentially when they switch to an all-in-one e-commerce platform. One of the most popular options for major enterprises is Shopify Plus, which offers great features like automation, fraud protection, headless e-commerce and more. It’s a great way to get all the growth services a business needs in one neat package. The best way to build an enterprise-level e-commerce platform is to connect with a platform partner. Usually, the company behind the platform runs a rigorous multi-year screening process on each of their service partners, so businesses are guaranteed a quality agency experience. Shopify Plus is arguably the most meticulous and selective. Outsourcing the technical stuff and streamlining or automating the business’s systems makes it easier to grow an online business. Using e-commerce platforms allow owners to focus on the more important aspects of their business. —Sean Elstins, COO of Phoenix-based Fyresite, the only web and app development agency that has been selected as a qualified Shopify Plus partner in the State of Arizona
Tech & The Valley: The Phoenix-Mesa-Scottsdale metro area, has one of the fastestgrowing high-tech sectors in the country. Between 2015 and 2020, employment in high-tech industries climbed by 24.8%, or 15,433 jobs, compared to 8.9% nationwide.
Lastassia “Lady La” Eidson Founder of Mahalo Made, Member since 2013
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LAW MATTERS TO BUSINESS
(Not) Business as Usual: Corporate Political Activity in 2022 Businesses must assess if, what and how to permissibly engage by Christine Fort
Christine Fort is a Phoenix-based Partner with Holtzman Vogel Baran Torchinsky & Josefiak PLLC, a national political and regulatory law firm with offices in Washington, D.C.; Northern Virginia; Florida; and Arizona. Fort specializes in campaign finance and election law, lobbying and ethics compliance, and taxexempt organizations. She assists clients that range from candidates, PACs and party committees to politically active businesses and nonprofit entities. holtzmanvogel.com
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Inflation, the economy, taxes, gas prices, labor and supply shortages, education, immigration. Today’s state of affairs is rife with motivation to join in the political debate this election season. This holds true for the business community, which is significantly impacted by the policies enacted here in Arizona and in Washington, D.C., as well as the elected officials responsible for developing those policies. With August primaries fast approaching and a general election looming this fall, many businesses are venturing off of the sidelines they may have occupied for years, eagerly looking for ways to vie for their interests and make their voices heard, whether at the Capitol or at the polls. But how does such a business take the first step? Corporate political activity comes with significant implications, both legally and optically. Before a business sprints onto the proverbial political battlefield, there are a number of rules of engagement to consider. Any business seeking to get involved should first assess the available options in light of its goals. Businesses seeking to impact legislation and policy development, for instance, may wish to engage in lobbying at either the state or federal level, or in issue-related education and outreach to the public more broadly, in an effort to influence those policies. Businesses seeking to impact the results of an election, on the other hand, may wish to make monetary contributions, or offer other support, to candidates, ballot measures and/or political committees (often called “PACs”), or to make their own independent expenditures expressly supporting or opposing candidates on the ballot. Still others may wish to increase voter engagement with nonpartisan voter registration and get-outthe-vote activities. The options for businesses engaging in politics are numerous and far-reaching indeed. After determining what it would like to do, a business must assess how it may permissibly engage in the desired activity, if at all. Does the law permit the entity to participate directly using general business funds? Is it necessary to establish a political committee to conduct its activity? Would it be desirable to conduct the business’s endeavors through a political committee or other nonprofit entity, even if not legally required? While businesses may freely engage in lobbying, electoral participation is more strictly regulated at the state and federal levels and should be carefully vetted. Most notably, state and federal campaign finance laws generally prohibit corporations from making contributions to candidates and, at the federal level, to political committees that contribute to candidates. Even hosting events using corporate funds is largely regulated and something to be carefully considered. Direct business support of candidates, therefore, will generally necessitate either the creation of a separate political or nonprofit entity or, alternatively, the sponsorship of issue advocacy and/or independent expenditure communications. Business entities
While businesses may freely engage in lobbying, electoral participation is more strictly regulated at the state and federal levels and should be carefully vetted.
may also choose to weigh the benefit of outsourcing these efforts by contributing to established political committees or other nonprofit groups engaging in political activity, thus avoiding the myriad of regulations altogether. The “how?” — largely a matter of strategy — is informed by whether the law permits corporations to undertake a particular effort. It is also informed, however, by the compliance considerations associated with a certain course of action. Direct lobbying of elected officials, for instance, requires lobbyist registration and regular reporting with the Arizona Secretary of State, Secretary of the U.S. Senate and/or Clerk of the U.S. House, as applicable. While making legally permissible contributions to state PACs and federal Super PACs does not alone trigger registration obligations for businesses, establishing and operating a political committee will require registration and regular reporting with the Arizona Secretary of State and/or the Federal Election Commission, as applicable. Periodic campaign finance reports must disclose basic committee information, as well as all receipts and expenditures. Sponsoring independent expenditure communications may also trigger reporting obligations with the Arizona Secretary of State, Arizona Clean Elections Commission, and/or FEC, as applicable. Additionally, any communication depicting a federal candidate within close proximity to an election will likely necessitate reporting with the FEC. These more limited reports may disclose basic information about the sponsoring entity, as well as the dates and amounts of the expenditures, and the issues and/or candidates supported or opposed. Such communications must also include disclaimer language disclosing the ad sponsor and, for state PAC communications, the entity’s top PAC donors. Given the administrative burdens and optics considerations, any applicable registration, reporting and disclosure obligations should be thoughtfully weighed by businesses contemplating political activity. This 2022 is a critical election year. The current political landscape affords businesses any number of reasons to get involved, but effective counsel is essential to navigate the regulatory minefield at play. A business’s activities will be the most impactful when legal guidance is informed by political strategy, allowing it to best achieve its political goals while remaining in compliance with applicable law. So what do you say — are you in?
T
he upheaval of the past couple of years has required businesses to adapt and adopt a lot of change to survive. Some of this comes from social pressures as attitudes and habits change, and some comes from new regulatory guidelines and requirements. Attorneys bring businesses expertise to help them navigate the changing landscape and, where needed, can be the anchor that keeps them from getting pulled off their moorings and into trouble. For this cover story, In Business Magazine reached out to some of the law firms that serve our community for their legal perspective on key topics impacting business. These are only a few of the practice areas in which they offer specialized knowledge and expertise; our 2022 Legal Guide for Business Owners in this June edition contains a listing of local firms and their practice specialties.
Need to Know:
Workforce Addressing workforce issues, attorney Laurent Badoux, a shareholder at Buchalter, suggests, “Let’s set aside the law for a second,” and starts his discussion with an overview of the situation. “We are still in the middle of what has been labeled the ‘great resignation.’ We like to use labels when something strikes us as an unusual occurrence, but we should be clear that the pandemic likely only exacerbated trends already years in the making, which means this great resignation trend is not the advent of a new trend as much as the wider recognition of a change long in the making. “What I have seen consistently, from what my clients, anecdotally, have shared, is a re-alignment of priorities by employees. They are approaching their work with more demand for what matters most, which often translates to either greater ability to work remotely or flexibility in scheduling. Obviously, that does not work in all environments, and it is leaving some of our clients in retail, hospitality and service industry often short-staffed, but it has become crucial to evaluate the feasibility of remote work whenever it becomes possible to perform work that way.” Badoux points out that unemployment is still at a historically low level. There may have been a “great resignation,” but a very large segment of those that make up this great resignation have found other ways to earn a living. Practically speaking, a large segment of the workforce has shown itself willing to leave without a landing spot lined up — which also created a rash of applicants for new positions who are not particularly well-suited or motivated for the job on offer. “Many clients have told me stories of blown off interviews without worry for repercussions, or failure to show on site if hired,” he says. “What this suggests anecdotally, if not empirically, is that the paradigm shifted to a workplace culture based on affinity. This is not to say that affinity (being an employer of choice) is a new factor, but, in the current employment climate, it may arguably be the biggest differentiator from a recruitment and retention perspective.” He suggests employers focus on identifying, advertising and nurturing the key feature(s) of the workplace that will enable them to stand out and attract enough positive attention from adequately motivated and qualified workers. Badoux calls out a few issues exacerbated during the current workplace outlook that employers are facing: • Should an employer alter the level or the amount of customer interactions if the employer is short on staff (reduced hours, longer wait times, etc.), and is there a way to measure the impact of such modifications on existing employees? • How much does an employer need to adjust company culture to entice the right employees?
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• I f an employer offered remote work options during pandemic restrictions (or are still offering them for some employees), what legal grounds exist to reject a request for a remote work arrangement? • If an employer is affirmatively trying to recruit like-minded individuals, what systemic processes is that employer using to ensure these efforts do not lead to a lack of inclusion and diversity in the workforce? • What metrics should an employer use to measure the output of employees in a hybrid workforce, and is the employer evaluating whether the use of a hybrid workforce creates new issues of potential implicit bias? “From a legal perspective, employers that try to be proactive in changing key elements of the workplace must analyze not only why they are making the changes but also what impact those changes may have, especially vis-à-vis members of protected class,” Badoux says. He offers the following examples of how this analysis could unfold: • Are changes in compensation impacting women or individuals of color more significantly than others? • Do pay discrepancies based upon geographic location still make sense if an employer is measuring the value of input without regards for where the work is performed? • Are minority groups within an employer’s workforce less likely to return to work than others, and why? • Might managers provide greater recognition of employees that are coming to work in person more often, and would doing so result in less favorably rating the work of individuals in a protected category that elect to work from home more? • Is the ability to work for home more readily available to a subset of the workforce based upon geographic or economic factors, and does that have a disparate impact on a particular subset of the workforce? “In short,” Badoux says, “whatever an employer decides to do in respect to a hybrid workforce, that employer should evaluate all the ramifications of its policy and implement checks and balances to alleviate risks of unfairness, increased disparity and implicit bias.” Don Johnsen, a labor and employment partner at Gallagher & Kennedy, points out the explosion in remote work can have significant consequences for employers in terms of potential liability for minimum wage and overtime compensation. “The more work that hourly or other nonexempt employees do remotely, the tougher it is for employers to accurately track — and properly pay for — those employees’ ‘hours worked,’ as required under federal and state law,” he says. For example,
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a nonexempt employee who works remotely might easily come forward at any given time with his or her own documentation of supposed “hours worked” that the employer did not record and make a demand for thousands of dollars in supposed overtime compensation. “Even worse,” Johnsen says, “the damages can be doubled under federal law or even trebled under Arizona statute.” With employers facing such potential, Johnsen suggests those who make significant use of remote workers closely review their processes for recording time and update those procedures and policies to reduce the risk of significant uncaptured remote time. “Employers should consider implementing web and devicebased timekeeping systems that employees can access remotely (as opposed to time clocks and similar devices accessible only at the employer’s physical location),” he says. Additionally, “employers also should consider integrating access to their remote work platform with their timekeeping system, enabling the timekeeping system to automatically record such access. Employers also can consider mandating that remote workers periodically affirm in writing that they have not
worked any time that they have not accurately recorded on the employer’s timekeeping system.” Issues of healthcare and COVID safety have dimmed but still need to be addressed. Says Johnsen, “Thankfully, the widespread availability and use of vaccines appear to have had much of the desired effect; the number of persons experiencing severe symptoms and requiring hospitalization continues to decrease. But employers still need to be cognizant of their continuing obligations when an employee tests positive for the virus.” He notes the CDC still recommends any person who tests positive be quarantined for at least five days and until free of symptoms, and employers should ensure that employees who test positive comply with those recommendations. “Most of the federal vaccine mandates issued in 2021 have been withdrawn or suspended, so most employers are not legally obligated to mandate vaccines,” Johnsen says. He notes employers who wish to be more cautious and impose vaccine requirements of their own may do so — provided that they properly assess any religion or disabilitybased objections that employees may assert.
Need to Know:
Our Workforce Future “The current workforce outlook is uncertain,”says Buchalter’s Badoux. A number of companies, particularly in the technology sector, are needing to right-size their workforce, having either hired too many in anticipation of upcoming growth or elevated payroll levels from prior commitments that are no longer in step with shrinking profit margins as inflation lingers. He believes this partial reversal of the great resignation may lead to employees entering new fields in greater numbers, a sort of great realignment, and suggests businesses be open to new hires without industry experience and have internal training programs in place. “In fact,” he says, “businesses that make hiring non-traditional candidates a feature of their recruitment strategy might find themselves in a better position to maintain staffing (and service) levels for their client base.” Badoux observes that in times of uncertainty, workers worry about their career, their industry, their pay, their buying power and their overall safety. “Combine that with an administration far more sympathetic to unions (and generally to all forms of organizing) than its predecessor, and the time is fertile for unions to expand into new areas and to expand their presence in others. Employers who wish to ensure they are not a target for union organizing should implement internal systems to respond to employee issues, particularly in terms of lack of engagement and feelings of unfairness or disparity or treatment or opportunity, and build an internal quick response team.” With COVID-19 and its variants (aka SARS-CoV-2) not yet a thing of the
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past, as recent outbreaks in China and North Korea demonstrate (and to a smaller extent rising infection numbers in the U.S.), Badoux believes it remains important to keep a quick response team in place to address potentially changing needs of the workplace and respond to directives from governmental agencies. “Employers would be well-served to identify a quick response team to address any emergencies and contingencies affecting the workplace,” he says, and notes that if businesses relied on an ad hoc creation for the group that assumes responsibility for changing policies to respond to CDC guidelines and state mandates, they should replace that with a pre-selected team. “Quick response to issues that matter to employees, including their safety, matters more than ever.” Aside from the virus, employers must keep vigilant in regard to employee health and wellness, says Badoux. “Especially because the pandemic (and perhaps also a remote work setup) seems to have made workers more sedentary than ever.” Observing that health and wellness issues are a significant driver of employee happiness and retention, Badoux points out that, pragmatically, employees who are not as healthy or well — physically, emotionally and financially — make for a costlier workforce for the employers who shoulder the vast majority of employee healthcare insurance costs. Conversely, he notes, “Data suggest that having internal processes that assess and help improve employee wellness inherently results in a more productive and stable workforce.”
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Need to Know:
Real Estate Even disparate fields are interconnected, and real estate is being impacted by changes in the workforce (such as remote work and hybrid offices) and consumer habits (such as the growth of online shopping). “The most obvious impact has been in the office market, which has not only impacted both existing real estate values in that sector but also created uncertainty as to the overall demand,” says Jason Morris, land use attorney and founding partner of Withey Morris. As businesses are still trying to get their heads around what office needs are going to look like in the coming years and as leases are expiring that were entered into pre-COVID, Morris has found a significant amount of rethinking occurring. “Evidence of that rethinking is clear, with new, more flexible lease terminology and the creation of more flexible option terms by landlords,” he says. Says Jeff Pitcher, a director in the real estate practice group at Fennemore, “The larger real estate loans, construction loans and purchase and sale transactions my clients are working on involve apartments, warehouse and industrial developments, including one existing development that is being transitioned from office to apartments.” Pitcher notes a shift in how people and companies are evaluating their space needs, employee retention and how they interact with customers. “Our commercial real estate clients are telling us that their employees now have much more leverage over how and where they want to work, and this has caused the employers to change their in-office work policies. They also point out that retention is key as it is difficult to replace employees and, if they must be replaced, those new hires often come at a significantly greater salaries or hourly wages.” Noting that, on the consumer habits front, the increase in online spending has exacerbated the need for related warehousing and distribution, Morris says, “That demand in the industrial sector has also been bolstered by the more recent thought processing surrounding supply chain management and the amount of inventories necessary to guard against supply chain disruption.” In fact, says Pitcher, “Direct shipping from large distribution centers is here to stay as well as companies leasing light industrial space in submarkets that are further away from the big box submarkets located in SW Phoenix. We will see retailers taking smaller space as they reduce their footprint to adapt the shopper’s new way of shopping.” Says Morris, “We’re seeing a lot of new designs in both sectors for these reasons. Offices are now more efficient and may be designed around a remote workforce that doesn’t include permanent offices for each employee and industrial buildings are being designed at a greater scale, requiring more land and additional rezoning.”
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Regarding property-related responsibilities of owners or developers, Pitcher says, “Our commercial real estate clients say they are creating new live, work and play environments and offering many amenities as more tenants are now working from home.” Not only are tech packages, dog parks, dog washing areas and valet service part of the new normal, but many owners are emphasizing sustainably as environmental awareness is on everyone’s minds. Pitcher cites as example the many businesses now installing EV chargers at their warehouses, apartments, retail centers and office buildings. At the same time, Pitcher reports seeing many commercial tenants giving space back to landlords at the time of lease renewal because of the need to accommodate a hybrid workforce. Other trends in real estate come out of our rapid population growth. “Phoenix is under-supplied in multifamily developments and for-sale housing due to its population growth that has occurred at a much faster pace than ever expected,” Pitcher says. The extreme demand has caused apartment rents to become unaffordable and home prices to skyrocket. Lead time due to material and staffing shortages along with inflation has significantly increased the cost of building any type of building or home. Pitcher believes workforce housing will be an issue as home and rental prices continue to rise and the population of western tax-friendly states increases. In fact, Morris sees the attempt to fill the residential housing gap to both supply housing for a booming population and also to ease the sharp increases in housing costs as the most prominent trend locally. “As a result of this trend, we’re seeing new trends emerge in residential housing, such as the prominence of single-family rental products, which are also known as build-to-rent or horizontal apartments. These are typically single-story rental units with a small outdoor private space.” And then there’s the countervailing force as neighborhood activism and political activism by those opposing development is starting to reach the courts as it has done in California for the past decade. “Unfortunately,” Morris says, “the trend will likely be more lawsuits fighting developments, even outside traditional entitlement processes.” Morris notes that purchase and sale contracts for property are increasingly tightly negotiated as property owners desire quick closings in this competitive environment while developers are concerned about the risk of entitlement and construction cost inflation. “The current trends we’re seeing in real estate involve the race against increasing interest rates with lots of deals contingent upon completion.” Developers don’t want to lose their financing and are under increasing pressure to get deals done because they don’t want to go back to the bank and reapply. The combination of this with the rising costs of building materials is having an impact on the velocity of transactions and development. “These,” Morris says, “are top of mind for developers right now.”
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Need to Know:
Intellectual Property Businesses may be unaware of or overlooking the fact that, generally speaking, a business does not necessarily own newly developed IP, whether it’s software, invented devices, logos, trademarks, website designs, et cetera, simply because the business paid for it, notes Susan Stone Rosenfield, a director in the intellectual practice group at Fennemore who chairs the firm’s intellectual property and IP litigation property practice group. She notes a business should not assume that payment for IP renders the business the owner of it, let alone the sole owner of it. “This is why it’s important to consult with a highly skilled IP attorney,” she adds. As Jennifer Van Kirk, an IP partner at Lewis Roca, puts it, “Businesses should think about their IP from the very beginning.” She notes it is easier and cheaper for businesses to be proactive in capturing IP rights by, for example, making sure they have appropriate contracts in place with employees and consultants, than to be reactive later and try to claw back rights. A classic case she shares is a business hiring a website developer to build its website but not putting in place a written agreement clarifying who owns the rights. “Under copyright law, the author of the website — usually the website developer, not the business — owns the copyright in the website content,” she says. “This situation can get messy for the business if its relationship with the website developer later sours, because, without a written assignment, the website developer owns the content and can pull it.” Another example she shares concerns the naming of a business, noting that, again, it is easier and cheaper (and far less of a hassle) to conduct due diligence up front regarding a business’ chosen name than to simply start using a name and hope for the best. “We’ve seen many companies be forced to change their name after they’ve invested time and money into the name because it turns out someone else already owns the exclusive right to use that name in our client’s field,” Van Kirk says. “Conducting a trademark search up front avoids wasting resources on a name the business cannot legally use.” And Rosenfield points out that, depending upon the state, employers may not automatically have legal right to employees’ inventions even if those were developed during the scope of employment and related to the work performed during employment. “Therefore, employers should have written agreements with employees and contractors to secure ownership and secrecy of the business’ confidential information and intellectual property rights.” For example, business should require a new employee to sign documents pursuant to which the employee acknowledges that they are required to disclose inventions to the employer, and whereby the employee assigns future inventions and other IP to the company. She cautions that specific language must be used in the documents, or it may not be effective. “Keep in mind that there may be state-specific laws having a significant effect upon a company’s ownership of IP created by an employee,” Rosenfield adds. For example, certain state laws may prohibit an
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assignment of future inventions made on the employee’s time and without using property of the employer unless the work leading to the invention was performed for the employer and relates to the employer’s business. Regarding trade secrets, Rosenfield cautions employers to protect them by limiting access to only those employees who need to know the trade secrets to perform their job. Patents are another matter, and obtaining one tends to be a costly endeavor. “Furthermore,” Rosenfield says, “even if a company has a patent, it does not necessarily follow that the company is free to make, use, sell, et cetera, the patented method or product, because there may be other patents owned by other parties that the company would infringe, unless it obtains a license to those other patents.” Although guarding trade secrets is generally the focus of IP concerns, we have begun to hear more and more about cooperation among competitors and sharing of information. However, where it comes to operational issues as it relates to sharing IP with symbiotic business, Rosenfield says, “There should be clear understanding between the businesses as to whether and how and to whom confidential information (CI) and inventions and other IP may be disclosed, both within the business receiving the CI and IP and outside the receiving business.” She notes this protection of technology and putting bounds upon disclosure and sharing may be unfamiliar and/or uncomfortable to those in the health and medical fields although disclosure to and collaboration with other practitioners (and potential inventors) to advance medical science and patient care is quite common. For businesses that share their intellectual property, “The devil is in the details,” Rosenfield says. She cautions the involved businesses to do their best to clearly outline in advance in a written agreement the following points: • The knowledge and technology (and its related IP) each business is bringing to the table. • Which party owns and which is permitted or required to file a patent application for new technology and improvements on existing technology. “This can be tricky, but it’s imperative that these discussions take place before issues arise,” Rosenfield says. • Whether developments may be published, whether it requires agreement of the parties to do so and whether they must give notice prior to publishing to permit sufficient time for a patent application to be filed. Trademarks are another important matter. “If a business permits another business to use the first business’s trademark, there should be a written license agreement regarding this,” Rosenfield says, cautioning that the first business needs to retain control over not only how and where the trademark is used, but also the quality of the products or services offered under the trademark by the second business.
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Need to Know:
Drug Testing “Arizona law distinguishes recreational from medical marijuana,” says Gary Smith, a partner at Guidant Law Firm. But in terms of business policies and responsibilities, the distinction offers no clear line of demarcation. Smith explains that, under Arizona’s recreational marijuana laws, employers are free to restrict, regulate and prohibit marijuana both in the workplace and in their workforce. And employers may continue to drug test and terminate employment for employee off-hours use. “While Proposition 207 generally legalized marijuana for private recreational use in Arizona, the law did not change employers’ rights to regulate their workplaces,” says Gallagher & Kennedy’s Johnsen. Employers still have the right to prohibit the use or even mere possession of marijuana in the workplace, even though marijuana might be legal to possess and use outside the workplace, he explains. And employers also have the right to conduct workplace drug and alcohol testing, including testing for marijuana, and discipline employees for violations of their policies concerning drugs and alcohol. “Nor did Prop 207 alter any of the principles of ‘employment at will.’ An employee who tests positive for marijuana in violation of the employer’s
policies is still subject to discipline or termination, even though his or her recreational use of the drug outside the workplace might have been legal under Prop 207,” Johnsen says. Clarifying a specific point, Smith notes that in the case of medical card holders, employers are still free to prohibit use while on the job. “However,” he says, “employers may not discharge employees for having a medical card or for using off-hours.” Smith suggests companies that have not revisited their drug policies in a while should do so, noting that the widespread availability and popularity of cannabis makes it more probable that every employer will have encounters with cannabis and need to address them. “These considerations also extend to discussions with your insurance broker to make certain your company insurance policies cover the business should cannabis be involved in a casualty event,” Smith says, observing, “The ability to procure insurance may likewise dictate the content of company drug policy.” Whatever that policy might be, Smith suggests best practices are to apply it in a fair and consistent manner.
Need to Know:
Cybersecurity “Businesses should know that for every new cybersecurity technology that’s implemented, hackers are actively looking for ways to circumvent it,” says Omar Abdallah, an attorney at Rose Law Group, noting, “It’s only a matter of time until they’re successful.” For that reason, he says business leaders need to always be diligent and up to date on common and new security risks. “This is particularly important now, as many businesses’ work models have changed with remote or hybrid work models.” For remote workers, he suggests businesses consider implementing multiple layers of defense that include procedures and policies, data loss prevention software, multi-factor authentication and other risk-management approaches. “And certainly,” he says, “all employees should be regularly informed of the most current security best practices.” Coppersmith Brockelman partner Scott Bennett emphasizes that the vast majority of cyberattacks are not sophisticated hacks, but the result of ordinary human error such as an employee clicking on a link in a phishing email, or someone losing an unencrypted thumb drive or laptop. Thus, he
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notes, the biggest cybersecurity risk for most businesses is their employees — which makes it critical for businesses to provide training and ongoing education to their employees about common cybersecurity risks and how to avoid them. A particular type of cybersecurity risk is ransomware, a huge problem right now for all types of businesses, according to Bennet, who cites an annual data breach report published by Verizon reporting the number of ransomware attacks doubled from 2020 to 2021. “Ransomware locks down a business’s data and/or computer systems, holding them hostage until the business pays a ransom, usually in Bitcoin because it is not traceable. Just a few years ago, ransom demands were relatively small, perhaps $10,000 to $20,000. But ransomware groups have gotten much more sophisticated, and greedier,” he explains. “Now, they will access a business’s computer systems and review its financials and insurance coverage to figure out the maximum amount a business can afford to pay, then demand that amount.”
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To prevent ransomware attacks, Bennett suggests businesses educate their employees about phishing emails and social engineering. Cautioning that phishing emails often pretend to be from a supervisor or company executive and try to create a sense of urgency, he points out that employees need to know that if anything seems unusual or off about an email or request, they should verify the email or request is legitimate before taking any action. “And they should verify a request through a different means of communication,” he notes. For example, if an employee receives an email that seems suspicious, the employee should not respond to that email but should reach out to the purported sender in person or by phone. “Businesses should also configure their email systems so they clearly indicate that an email is from someone outside the business. That helps
warn employees that an email that looks like it is from a supervisor is actually from a third party.” Bennett suggests another important and straightforward way to reduce the risk of a ransomware attack: Require employees to use strong passwords (a combination of upper- and lower-case letters, numbers and symbols), and to never use the same password for both a work and personal account, or any two accounts. Bennett believes the best practice is to use a password-management program such as LastPass or Dashlane that generates a strong and unique password for each account. “Educating employees about ransomware and cybersecurity needs to happen on an ongoing basis, Bennett says, “and not just as part of employees’ onboarding.”
Need to Know:
Environmental Issues Environmental concern is on the upswing, according to Court Rich, cofounder, senior partner and director renewable energy and regulatory law departments at Rose Law Group. He has experienced increased interest by businesses regarding what they can and should do to reduce their impact on the environment. Observing that some do it because they have a genuine desire to be better stewards of our environment and others do it because their customers are increasingly demanding they do it, he notes that many business owners are not aware that many of the steps a business can take to lower its impact on the environment can actually double as smart business decisions that are not just additive to the bottom line. “For example,” he says, “investments in certain energy-efficiency upgrades or rooftop solar and battery backup can have a quick payback for some businesses, thereby lowering their impact on the environment while saving them money. Also, solar investments can come with significant tax credits that can be monetized to benefit the business.” Businesses also have a lot of questions about how they can transition to 100% clean energy and what that really means. “We spend a lot of time talking with businesses about what their goals are with clean energy before advising them on how to proceed,” Rich says. “Some, for instance, want to try to match their energy usage in every hour of the day with clean energy produced at that same hour. This can be complicated and can involve negotiations with local utilities that don’t always have the options you need. Others that are less concerned about matching clean energy hour by hour have more options for clean energy credits that can allow them to make the claim that they are powered by renewables.”
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Rich emphasizes the importance of businesses understanding their own goals and what, exactly, they are trying to accomplish. “If it’s important to the business to be able to make claims that it is run on renewable energy, it needs to make sure it goes through the correct process for acquiring and retiring renewable energy certificates,” he says, explaining that, if done the wrong way, a business can get in trouble under federal law for making false claims. He cautions businesses that want to adopt rooftop solar to make sure they are using an experienced company that can help them estimate the impacts on their electric bills accurately. “I get a lot of calls from business owners about this issue,” Rich says, “and some installers may not fully understand how utility rates impact the savings you can recognize from a solar system. “The bottom line is there are numerous issues to consider, many of which are not at all obvious, and it’s important to find experienced people who can help you achieve your environmental goals.” Buchalter buchalter.com Coppersmith Brockelman cblawyers.com Fennemore fennemorelaw.com Gallagher & Kennedy gknet.com Guidant Law Firm guidant.law Lewis Roca lewisroca.com Rose Law Group roselawgroup.com Withey Morris, PLC witheymorris.com
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PEOPLE ARE KEY
Linda Babcock, Brenda Peyser, Lise Vesterlund and Laurie Weingart are the authors of The No Club – Putting a Stop to Women’s Dead-End Work. Linda Babcock is a professor of economics at Carnegie Mellon University. She is the author of Women Don’t Ask and Ask for It. A behavioral economist, she is the founder and director of PROGRESS, which pursues positive social change for women and girls through education, partnerships and research. Brenda Peyser has held leadership positions in the corporate world and academia for more than 30 years. Most recently, she was a professor of communications at Carnegie Mellon, where she also served as associate dean of the School of Public Policy and Management and was the founding executive director of Carnegie Mellon University Australia. Lise Vesterlund is a professor of economics at the University of Pittsburgh and director of the Pittsburgh Experimental Economics Laboratory. She founded and directs the Behavioral Economic Design Initiative. Laurie R. Weingart is a management professor at Carnegie Mellon University. She has served as CMU’s interim provost and chief academic officer and as a senior associate dean and director of the Accelerate Leadership Center.
JUNE 2022
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Tasks, Tasks – and Non-Promotable Tasks
Employers and employees need to be mindful of equity regarding dead-end tasks by Linda Babcock, Brenda Peyser, Lise Vesterlund and Laurie Weingart Anyone reading this article has done work that wasn’t promotable. Maybe it was handling a low-revenue client or spending another day dealing with that one customer who can’t be satisfied. Or staying late one night to reformat the very unprofessional-looking budget spreadsheet created by a co-worker. Or perhaps it was being “voluntold” to organize a fund-raising event. We consider all these tasks “nonpromotable” because while they help the organization, they don’t benefit the person who does them. Fixing someone else’s errors or solving problems between co-workers won’t get someone a raise or promotion, even though those tasks need to be done. How to Identify “Non-Promotable Tasks” (NPTs) Non-promotable tasks have several common characteristics. • They are not directly tied to the mission and business objectives of the organization. A for-profit company focuses on revenue-generation, so tasks that support that goal will tend to be promotable—they directly relate to the company’s prime objectives. A real estate agent’s time is best spent selling property—that’s directly tied to business goals. Archiving property photos from the website isn’t, and so that effort is non-promotable. • They are invisible. Doing work behind the scenes won’t help a person advance because no one knows that person did it. If someone rewrites the presentation that a co-worker gives, the co-worker gets the credit, not the person who polished it—because no one knows the time and effort that person invested. When a person’s talents go unseen, that person will not progress. • Anyone can do them. Generally, people are hired because they bring a specialized set of skills to their job. Maybe it’s a legal education, a creative talent or technical training; those skills set the employee apart from others. Someone taking notes at a meeting isn’t offering ideas (instead, being too busy capturing everyone else’s) and that person’s knowledge isn’t being tapped. Anyone can take notes so that task won’t help an employee move forward.
Evaluate tasks by considering: Is the request closely tied to the organization’s mission? Is it visible? Does it use my specialized skills? The more no’s, the more likely it is that the task is non-promotable. And, while employees will be expected to do some NPTs, it’s not good for any individual to do too many. Identifying the type of requests received is the first step toward ensuring a balanced portfolio of work.
HOW SIGNIFICANT/INSIGNIFICANT ARE THE TASKS TO BUSINESS OPERATIONS?
NPTs vary in their impact on business operations. Office housework, like making coffee or watering the plants, are NPTs that need to be done but have little or no effect on the bottom-line. However, many tasks are critical to business operations, but are not promotable because their impact is difficult to track and measure, like activities that improve an organization’s culture, which result in more satisfied and productive employees. A recent study of more than 400 organizations by McKinsey and LeanIn found that 87% of organizations say tasks that support employee well-being are important to the company, but only 25% of them formally recognize that work. DEI initiatives are another example of work that is meaningful, but not rewarded. When companies equalize the distribution of NPTs and reward work that significantly, but indirectly, advances the mission and business objectives of the organization, they should see improvement in the bottom-line that results from enhanced productivity, job satisfaction and company culture.
WHAT JOB POSITIONS ARE THEY TYPICALLY ROLLED INTO? OR IS IT MORE RANDOM? NPTs vary by occupation and rank. There are nonpromotable assignments in every industry, organization and job —consultants, TSA agents, engineers, bartenders, nurses, you name it, all have tasks that aren’t formally recognized. From CEO to receptionist, there is work that demands attention but doesn’t move a person’s career forward — for
NPTs include tasks that are critical to business operations but are not promotable because their impact is difficult to track and measure. For instance, a recent study of more than 400 organizations by McKinsey and LeanIn found that 87% of organizations say tasks that support employee well-being are important to the company, but only 25% of them formally recognize that work.
BETTERING YOUR BUSINESS
Leading with Heart
example, resolving conflicts among co-workers, improving processes or helping other people with their work. While everyone battles non-promotable work it is particularly detrimental to junior recruits because an excessive load prevents them from demonstrating their skills and potential and can lead to career stagnation. There’s a caution for more experienced employees as well, who may also see careers derailed if they become the go-to person for issues that no one else wants to handle.
NPT’S SLANT HEAVILY TOWARD WOMEN – FACT OR ILLUSION?
NPTs are found in all jobs, we find in every job and rank that women do NPTs far more often than men do — not because they inherently like them more or are better at them, but because of our common expectation that women will take on this work. In one study, we found that women are almost 50% more likely to be asked to do non-promotable tasks than men and are 50% more likely to say yes when they are asked. Men, who are not burdened with these tasks, are free to focus on the promotable work and their careers move forward while their female colleagues’ careers lag. Better balancing the distribution of these tasks between men and women creates a more level playing field and allows organizations to best utilize their talent pool.
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SAFE TO SAY “NO” TO AN NPT?
There can be negative consequences for saying no to an NPT, and they may be particularly large for women. Because we all expect women to take on NPTs, we may not be prepared to hear them decline one. What should a woman do when asked to do an NPT? Here are some options: • Analyze the request. We started a “No Club” to help each other evaluate how we spent our time at work. It was invaluable in helping us learn and set boundaries. Having each other’s perspective and advice ensured we didn’t fall into traps for saying yes—like wanting to be liked or fearing that people would think we weren’t a team player. It helps individuals to bounce requests and ideas off colleagues—or mentors— whose opinions they value. • Make a business case. Most people (probably even the boss) don’t know all the tasks on an employee’s plate. If asked, for instance, to organize the charity auction, a response might be to suggest that “I am spending most of my time developing our new marketing campaign and so I don’t have the time needed to make the auction the success it should be. But I know Jim just finished a big project and he’d do a great job.” • Propose a fair solution. Anyone can do this, not just the person being asked. When Yolanda is asked to take notes at the meeting, someone else should suggest, “I’ve got an idea. Yolanda took notes last week. Let’s put this on rotation—I’ll go today and I’ll pass around a sign-up sheet for the rest of you to add your names.” For tasks that anyone can do, turntaking or random drawing are fine solutions, and they are so obviously fair that it is hard to object. No individual is overburdened and the work still gets done. • Offer an alternative. Suggest the task be split in half or altered in some way to make it more desirable. Or trade a current NPT for this one. It may be possible to get resources or help to complete the task (the charity auction will go more smoothly with a team organizing it).
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Ultimately, the organization will need to take responsibility for addressing how it distributes NPTs. Together with colleagues throughout every level of the organization, anyone can be an agent of that change. It is in the organization’s interest to improve the allocation of work, and this places it at the forefront of addressing this important issue of gender equity.
Women are not only 48% more likely to volunteer for NPTs but are disproportionately assigned these tasks. Results from a professional services firm showed that women spent 200 more hours per year on non-promotable tasks than their male colleagues.
35 JUNE 2022 INBUSINESSPHX.COM
En Negocios
ECONOMIA / ECONOMY
Edgar R. Olivo es un educador empresarial bilingüe, asesor económico y colaborador de varios medios de comunicación. Es apasionado por la educación y comunidad. Está certificado en finanzas y análisis de datos y posee un título en negocios de la Universidad Estatal de Arizona.
Edgar R. Olivo is a bilingual business educator, economic advisor and contributor for several media outlets. He’s a nonprofit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.
JUNE 2022
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Inflación: 7 consejos para ayudar a las pequeñas empresas a superar la inflación por Edgar R. Olivo
Ser propietario de una pequeña empresa durante los últimos dos años ha venido con una serie de desafíos, y ahora con una inflación creciente. De acuerdo con la Oficina de estadísticas laborales, la inflación de EE. UU. subió a un nuevo máximo de cuatro décadas del 8,5 % en marzo con respecto al mismo mes del año anterior, impulsada por el aumento de los costos de la energía y los alimentos, las restricciones de suministro y la fuerte demanda de los consumidores. Estos nuevos desafíos crean una serie de nuevos dolores de cabeza que los propietarios de pequeñas empresas tienen, como preocuparse por la salud financiera de sus empresas y la disminución de los márgenes de ganancia. Aunque el aumento de los salarios no se ha mantenido al día con el alto costo de los bienes, la inflación puede ser un escenario que se
puede planificar con la estrategia empresarial adecuada. Como propietarios de pequeñas empresas, no podemos predecir el futuro, pero podemos planificar aprendiendo del pasado y preparándonos en el presente. Las pequeñas empresas de hoy deben ser creativas en su enfoque para lidiar con la inflación, ya que es probable que no desaparezca pronto. Aquí hay siete estrategias clave para aliviar el efecto de la inflación en su pequeña empresa. 1. Agilice y automatice sus procesos. Tómese un momento para hacer un inventario de cómo está haciendo las cosas. Revise cómo desarrolla su producto, quiénes son sus clientes y cuánto le está costando o beneficiando al negocio. Esta práctica lo ayudará a encontrar formas de hacer que su negocio sea lo más eficiente posible.
De acuerdo a una encuesta reciente realizada por NFIB, todos los pequeños empleadores informaron que la inflación estaba afectando sus negocios en diversos grados. Más de la mitad (62%) informó que la inflación está teniendo un impacto sustancial en su negocio, mientras que aproximadamente un tercio (31%) informó que tuvo un impacto moderado. Solo el 6% de los propietarios informan que tiene un impacto leve.
ENGLISH TRANSLATION 2. Analice sus márgenes de ganancia. Revise sus estados financieros con frecuencia y encuentre patrones cuando sea posible. Muchas veces verás que un producto vende más que otro. ¿Qué pasaría si invirtieras un poco más de marketing en eso? Esto podría generarle más ingresos y ayudarlo a aumentar sus metas financieras. 3. Mejorar la productividad. Cuanto más rápida y eficientemente trabajen usted y sus empleados, mayores serán probablemente sus márgenes de beneficio. Use tecnologías y aplicaciones que rastreen y mejoren la productividad. 4. Recorte su gastos donde pueda. Durante un período de inflación, los gastos frívolos reducirán su potencial financiero para superar el mayor costo de las cosas. Considere reducir el espacio de su oficina, vender más en línea o encontrar un horario híbrido que minimice los costos de transporte. Además, verifique con sus proveedores y revise cuánto está gastando en suministros y servicios haciendo una comparación de costos periódicamente. 5. Acumule sus suministros ahora. Las cadenas de suministro podrían retrasar aún más la entrega de sus suministros para brindar un servicio y los precios seguirán aumentando. Revise sus patrones y plan de ventas para evitar demoras en su proceso de entrega de ventas. 6. Eleve sus precios al nivel del mercado. Puede sonar como una idea contraproducente, pero puede ser útil para sobrellevar los efectos de la inflación en su negocio. Haga su tarea primero y hagala con cuidado. Desea aumentar sus precios lentamente en incrementos modestos siendo estratégico. Explore su menú de ventas y encuentre áreas de mejorar sus precios. 7. Usted debe estar abierto a nuevos clientes. Con la inflación llegan nuevas soluciones y oportunidades para crear nuevos segmentos de clientes. Mire cómo sus clientes recomiendan sus servicios para encontrar formas de innovar su oferta para cumplir con todos los tipos de presupuesto. Cree nuevas categorías de productos para llegar a nuevos clientes siguiendo las tendencias. Esto asegurará que esté a la vanguardia de su industria. La inflación es un resultado desafortunado de las condiciones económicas afectadas por problemas que cambian rápidamente en nuestra geopolítica, el clima y muchos otras presiones del mercado. Pero a pesar de eso, probar técnicas financieras probadas con el tiempo puede ayudar a cualquier propietario de una pequeña empresa a establecer una base sólida para estar preparado para tiempos cambiantes como el actual.
Inflation: 7 Tips to Help Small Businesses Ride Inflation by Edgar R. Olivo
Being a small business owner during the last two years has come with its set of challenges, and now rising inflation. According to the Bureau of Labor Statistics, U.S. inflation surged to a new four-decade high of 8.5% in March from the same month a year ago, driven by skyrocketing energy and food costs, supply constraints and strong consumer demand. These new challenges create a series of new headaches for small business owners, like worrying about the financial health of their companies and decreasing profit margins. Although increased wages have not kept up with the high cost of goods, inflation can be a scenario that can be planned for with the right business strategy. As small business owners, we cannot predict the future, but we can plan by learning from the past and preparing in the present. Today’s small businesses need to be creative in their approach to dealing with inflation, as it may not be likely to go away anytime soon. Here are seven key strategies to ease inflation’s effect on your small business. 1. Streamline and automate your processes. Take a moment to take inventory of how you are doing things. Review how you develop your product, who your customers are, and how much it is costing or benefiting the business. This practice will help you find ways to lean your business to be as efficient as it can be. 2. Analyze your profit margins. Review your financial statements frequently and find patterns where possible. Many times, you will see that one product sells more than another. What would happen if you invested a little more marketing on that? This could bring you more revenue and help you build up your financial coffers. 3. Improve your productivity. The more quickly and efficiently you and your employees work, the higher your profit margins are likely to be. Use technologies and apps that track and improve productivity. 4. Cut expenses where you can. During an inflation period, frivolous spending will reduce your financial potential to ride out the increased cost of things. Consider downsizing in your office space, selling more online, or finding a
hybrid schedule that minimizes transportation costs. Also, check with your vendors and review how much you are spending for supplies and services by doing a cost comparison periodically. 5. Build up your supplies now. Supply chains could further delay the delivery of your supplies to provide a service, and prices keep rising. Review your sales patterns and plan ahead so as to avoid delays in your sales delivery process. 6. Raise your prices to th e market level. It may sound like a counterproductive idea, but it may be helpful in riding out the effects of inflation on your business. Do your homework first and raise prices thoughtfully. You want to raise your prices slowly in modest increments by being strategic. Explore your sales menu to find areas of improvement. 7. Open yourself to new customers. With inflation come new solutions and opportunities to create new customer segments. Look at how your customers are referring your services to find ways to innovate your offering to meet all budget types. Create new product categories to reach new customers by following trends. This will ensure you are at the cutting edge of your industry. Inflation is an unfortunate result of economic conditions affected by rapidly changing issues in our geopolitics, climate and many other market pinchers. But despite that, trying timeproven financial techniques can help any small business owner establish a sound foundation to be prepared for changing times like today.
According to a recent survey by NFIB, all small employers reported inflation was impacting their business to varying degrees. More than half (62%) reported that inflation is having a substantial impact on their business, while about a third (31%) reported it had a moderate impact. Only 6% of owners report it having a mild impact.
37 JUNE 2022 INBUSINESSPHX.COM
Economy
DEVELOPING & GROWING BUSINESS DYNAMICS
THE BIG PICTURE At the end of the day, the numbers point to Arizona having weathered the storm of the last few years and completing the past year on solid footing. Specifically, over the past two years: • Real consumer spending growth is up 4.5%, with spending on goods up 16%. • Disposable personal income has increased by 13%, with corporate profits increasing more than 20% and proprietor incomes over 16%. • The unemployment rate is sitting at 3.6%, with more than 11.2 million job openings nationally, up from 7.1 million three years ago. • Home prices are up 20% year-over-year; however, inventories remain tighter than ever, especially in Arizona. • Household net worth is up $30 trillion (30%). • Industrial production has grown 3% since 2020, with inventory-to-sales ratios still at record lows. Statistics cited are from Dr. Christopher Thornberg of Beacon Economics and Alliance Bank of Arizona’s April 2022 Regional Intelligence Report, which is compiled by Beacon Economics (beaconecon.com).
Don Garner is CEO of Alliance Bank of Arizona, a division of Arizona-based Western Alliance Bank, member FDIC. A founding member of the organization’s original management team, he has nearly 30 years of experience in commercial and real estate lending in Arizona. westernalliance bancorporation.com/ alliance-bank-of-arizona
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Eye on Arizona’s Economy Top economist analyzes trends as recovery continues by Don Garner
From inflation and Arizona’s local real estate market to the national energy scene and other global geopolitical issues, every day seems to bring new economic news to the forefront, but with little real-world context into how these developments will affect growth at the grassroots level.
PUTTING ISSUES INTO CONTEXT
At Alliance Bank of Arizona’s most recent Economic Forum, chief economist Christopher Thornberg, Ph.D., of Beacon Economics — a leading provider of economic research, forecasting, industry analysis and data services — analyzed the current standing of Arizona’s economy and provided insights on the most pressing issues facing the state’s business leaders. “We live in a time of profound uncertainty and the world feels a lot different than it did a few years ago,” said Dr. Thornberg as he addressed the economy, inflationary pressures, labor force and wage growth, tax policy and a host of other topics. But among the top three issues of most interest to business leaders, he zeroed in on employment, real estate and economic growth. Labor force: “Where are the workers?” seems to be a question that is echoing through hallways of the state’s largest employers through to mom-and-pop shops dotted across the community. Since February 2020, Arizona’s labor force has expanded, increasing by 57,200 workers, which represents a 1.7% increase. While some may hang their hat on working-age adults being work-shy, one of the long-run labor force issues at play includes the “Big Retirement,” which resulted in nearly 20% of the U.S. population officially identifying as retired. Considering that in 2021 alone, the labor force lost more than 3.1 million employees, and the fact that this trend outpaces the number of new workers entering the workforce funnel, current employment gap trends are expected to continue, according to economists. Dr. Thornberg pointed to three potential solutions to help mitigate labor shortages. Among them are increasing the labor force through immigration and raising participation rates among the existing population by providing socio-economic
benefits that encourage involvement among seniors and women, as well as making productivity enhancements such as capital investments and skills training. Real Estate: Still on an upward trajectory, both residential and commercial real estate have historically been key economic drivers in Arizona. The housing market continues to be the strongest spot of Arizona’s economy. The numbers are driven by the fact that typical homebuyers, who are higher-income earners, have been less affected by the labor market downturn, mortgage rates are at historically low levels and inventories are near historic lows. From January 2021 to January 2022, the median home price rose 28% in Phoenix, reaching $433,599. In Tucson, the median home price rose to $318,245 in January 2022, a 21.3% increase from a year earlier. On the commercial real estate front, with more companies returning to normal operations, demand for office properties has grown over the last year in Arizona. In Phoenix, the office vacancy rate hit 21.2% in the fourth quarter of 2021, down 0.5 percentage points from a year earlier. Vacancy rates for office properties also declined in Tucson over this period, at 22.5%, down 2.5 percentage points from a year earlier. Economic Growth: The “V-shaped” quicker-than-normal recovery has resulted in Arizona’s economy bouncing back faster than expected. In other words, unlike typical downturns and recoveries, this was a supply-shock-driven recession without the typical longer-term consequences that come from asset-bubble-collapse-driven demand shock. Overall, despite the fact that accelerated economic growth is slowing down in Arizona, the state ended 2021 with a stronger economy than it had prior to the pandemic’s start in 2019. In addition, excessive consumer demand is driving inflationary pressures, but the question remains about how sustained inflation will be in the midst of anticipated action from the Federal Reserve. As the economy moves forward, business leaders will be challenged to continue closely monitoring emerging data, and proactively tapping both industry-leading experts and business community resources to keep their finger on the pulse of economic developments and determine the impact they will have on the trajectory of their businesses.
While there are no economic “new-normals” coming from the pandemic, it has accelerated underlying trends that were already in place. Among the most marked trend: Labor markets flipped from “jobs-jobs-jobs” to “workers-workersworkers,” creating shortages that will be here to stay unless policies are adapted to encourage workforce participation.
BUSINESS GIVES BACK
Social Impact
BCBSAZ’s Foundation for Hope and Health Building on a long tradition of inspiring health
Photo courtesy of Blue Cross Blue Shield of Arizona
by Tyler Butler
Our healthcare system has been through the most strenuous of times. The COVID-19 pandemic has pushed communities to the brink, with many healthcare professionals receiving the worst of it. Despite this, one healthcare company has somehow completed a strategic transformation while handling the worst public health crisis in modern history. Blue Cross® Blue Shield® of Arizona has long stood for inspiring health. It focuses not only on the health of its members, but also its community and the State of Arizona at large. Making a positive difference is intrinsic to the work BCBSAZ does. In fact, it’s been the company’s mission to do so. And, with most of BCBSAZ’s employees being local, the organization is engrained in the community. BCBSAZ offers health insurance and related services to nearly 2 million customers. Having a strong connection to the community is important to the company’s philosophy. Helping Arizona communities thrive is so innate that volunteering and giving back have been a priority to BCBSAZ. In 2019, the organization implemented Blue Gives Back to support strategic employee participation in community-related service projects. This program continues to grow and serves to inspire the health of the community. Additionally, BCBSAZ has been a reliable leader in Arizona during the pandemic. This is largely the case because thousands of its employees stepped up to assist with vaccination rollout support in partnership with the state, federal and various local groups. By mobilizing employees, their families and the community, BCBSAZ was able to deliver nearly 150,000 volunteer hours, 24/7, administering almost half a million doses. This level of support isn’t new for BCBSAZ, though. For years, BCBSAZ has been a very visible philanthropic leader in the community — more recently even deepening its dedication to the state. Through its recently launched foundation, BCBSAZ will formalize its commitment to inspiring health and impacting health outcomes in positive ways. The Foundation will provide structure for BCBSAZ’s philanthropic investments while expanding its reach. Announced in January 2022, Blue Cross Blue Shield of Arizona launched the Blue Cross Blue Shield of Arizona Foundation for Community & Health Advancement. This entity will build upon the work of BCBSAZ’s public health initiatives and expand efforts to tackle the state’s toughest health challenges. Focusing on mental health, health equity, chronic health conditions and substance use disorder, the Foundation will work to mobilize, uplift and advance Arizona’s communities. “We’ve always had a strong commitment to improving the health of Arizonans, and the Foundation is the framework that will allow us to take that commitment one step further,” says Christine Wiggs, Ph.D., president, and board chair for the Blue Cross Blue Shield of Arizona Foundation for Community & Health Advancement.
The Foundation serves to amplify impact through crosssector partnerships, and by providing grants that support programs and applied research. Their flagship focus is mental health. Through a three-year, $5 million commitment, a wide range of mental health issues will be addressed. Applications for the first competitive grants opened on March 1, 2022, for programs and/or applied research that target issues such as access — provider shortage, telehealth, suicide prevention, youth mental health, intersection of mental health and substance use disorder, and the COVID-19 effect. As a 501(c)(3) private, non-operating foundation, the Foundation for Community & Health Advancement works in service of the public good through grant funding for programs and applied research that align with its focus areas. “There is no better investment we can make than solving Arizona’s most critical health issues,” says Pam Kehaly, president and CEO of BCBSAZ. “Our organization is committed to addressing the rise in substance use disorder in Arizona; something that has only been exacerbated by the COVID-19 pandemic. By supporting the organizations that are doing important work in this field, we can amplify the impact and make real change for families and communities.” BCBSAZ continues to grow in its commitment to helping Arizonans get healthier faster and stay healthier longer. Having spent more than 80 years working hard to take care of its neighbors and friends around the state, BCBSAZ has an interconnected relationship with the State of Arizona. Both work to support the needs of Arizonans. Whether helping members access care for chronic medical conditions or acute illnesses or developing programs to empower them to live healthier lives, BCBSAZ and its Foundation have the collective ability to affect people in profound ways. With a mission to inspire health and make it easy, BCBSAZ continues to make commitments to ensure it will enhance and uplift health in Arizona for many more generations to come. Blue Cross Blue Shield of Arizona
azblue.com
Thousands of BCBSAZ employees stepped up to assist with vaccination rollout support in partnership with the state, federal and various local groups. By mobilizing employees, their families and the community, BCBSAZ was able to deliver nearly 150,000 volunteer hours, 24/7, administering almost half a million doses.
BCBSAZ’S CORPORATE GIVING PROGRAM Through BCBSAZ’s corporate giving program, a select number of event sponsorships and corporate memberships are supported each year. Grant opportunities for programmatic impact and applied research are available through the Blue Cross® Blue Shield® of Arizona Foundation for Community & Health Advancement. Applications are accepted year-round. Event sponsorships must be submitted 60 calendar days in advance of the event to be considered. ELIGIBILITY FOR BCBSAZ FUNDING Organizations eligible for BCBSAZ corporate giving are those that are based in Arizona and meet one of the following entity definitions: •5 01(c)3, (4), (6), or (19) organization • Recognized government agency (includes state, county, or city agency, including law enforcement) •A ccredited educational institution •R eligious organization with a nonsectarian program azbluefoundation.org
AVP of Corporate Social Impact at Weedmaps, Tyler Butler is a corporate responsibility practitioner, social impact professional and contributor for several media outlets. She is a social impact executive who is passionate about sustainability. She is certified in ESG and corporate citizenship and holds degrees from ASU and Boston College. linkedin.com/in/tylerbutler
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OUR SUBJECT IN-DEPTH
The Unknown and Underutilized COVID Business Stimulus There’s still time for businesses to capitalize on the opportunity of the Employee Retention Credit by Randy Bianchi
Specializing in the ERC, Jorns & Associates is a fully staffed accounting firm that provides complete, rapid and uncompromising results for its clients. With hundreds of veteran tax professionals and decades of industry experience, Jorns & Associates is one of the leading tax firms that is strictly focused on the ERC. Jorns & Associates’ mission is to have industry-leading expertise and provide the highest quality service to deliver maximum value for its clients. Combining all this with its proprietary ERC software, Jorns & Associates has the experience and tools to maximize its client’s tax credits. www.jornscpa.com Businesses interested in finding out more about how they could benefit from the ERC can visit bit.ly/ja-erc-inquiry
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The Employee Retention Tax Credits, or ERC, was first enacted by the multitrillion-dollar CARES Act in March 2020 to address the economic impact of COVID on many businesses. When first enacted, the ERC gave employers the opportunity to qualify for up to 50% of $10,000 in eligible wages, or up to $5,000 worth of credits, per employee for 2020. Since then, several pieces of legislature, including the American Rescue Plan and, more recently, the Infrastructure Bill, have expanded the ERC to include the first three quarters of 2021 as well as increase the maximum credits for 2021 to 70% of $10,000 in eligible wages per employee, for each of the first three quarters of 2021 or a total of up to $21,000 per employee for 2021. On top of these expansions, the subsequent legislature also loosened the criteria to be eligible for the ERC, allowing more businesses the opportunity to qualify for the credits. To summarize the credits value, the ERC now allows employers to qualify for up to $5,000 per employee for 2020, $7,000 per employee for Q1 of 2021, $7,000 per employee for Q2 of 2021, and $7,000 per employee for Q3 of 2021, for a total of up to $26,000 per employee in employee retention tax credits.
WHY HAVEN’T MORE BUSINESSES UTILIZED THE ERC?
For many business owners, these tax credits present a massive opportunity to negate the impact of COVID on their organization. Unfortunately, the vast majority of business owners are either still completely unaware of the ERC or, due to a number of misnomers, are under the false belief that their business will not qualify. These misnomers are due to most tax professionals, who are not specialized in the program, having a lack of understanding of the guidance issued — specifically, the different ways a business can qualify for the ERC — and thus are misinforming their clients on their eligibility for the funds. As a result, the government still has tens of billions of dollars in ERC funds ready to be distributed, yet hundreds of thousands of businesses that would qualify are still failing to take advantage of these credits. Despite these misnomers, the IRS management believes that approximately 70%–80% of all small and medium-sized businesses, including tax-exempt organizations, are good
candidates for the ERC. Unfortunately, only about 5% of those businesses that are good candidates have filed for the tax credits so far. To understand why the IRS believes so many more businesses are eligible for the ERC than is conventionally thought at this time, we must understand the different ways a business can qualify for the program.
HOW CAN ONE’S BUSINESS QUALIFY?
The first way to qualify, and the only way on which most tax experts are basing their client’s eligibility, is to show the business experienced a significant decline in gross receipts. To count as significant, a business must show a 50% decrease in gross receipts in 2020 compared to the same quarter in 2019, or a 20% decrease in gross receipts in 2021 compared to the same quarter in 2019. While this is the easiest way to qualify, very few businesses meet these criteria. Thus, thousands of business owners are being incorrectly advised to not file for the credits because their tax experts believe this is the sole method for them to receive the funds. In reality, there are two additional ways a business can qualify for the ERC. The first of these ways is to show a business was negatively affected by full or partial shutdown orders from any level of government. The second alternative way to qualify is to show a business experienced a nominal negative effect on a portion of the business. While a large portion of businesses did not experience a significant decrease in receipts, the vast majority of them did experience at least one of these two other effects from COVID — which is why the IRS projects such a high percentage of businesses can still qualify for the ERC. The two alternative methods require an intricate knowledge of the ERC guidance and government regulations, as well as a lot of analysis of the business’s financial statements. While the first is the more likely way to qualify a business, ERC candidacy will be considered by the government only once per business — which makes it important to know of all aspects of the program in order to maximize the credits a business receives. Due to these complexities, it is highly recommended that any business seeking to obtain these credits use an ERC specialized tax expert to do so.
IRS management believes that approximately 70%–80% of all small and medium-sized businesses, including tax-exempt organizations, are good candidates for the Employee Retention Tax Credits. To date, only about 5% of those businesses have filed for the tax credits.
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RISKS & REWARDS
Phoenix and Arizona Are Ripe for Franchise Growth What makes them such an attractive target? by Kent Craven Inside local information from a franchise broker can prove invaluable in navigating the thousands of franchise opportunities offered today in America. As an example, out-ofstate franchise brokers are still recommending a particular very wellrun health and beauty franchise system to their clients. The local insider franchise broker, who has seen the confidential real estate map with revenue projections, knows all the A and B sites are taken. Only C sites, with much lower revenue expectation, are still available.
Kent Craven is the market president of FranNet of Arizona, the largest independent franchise consultancy in the United States. He brings 35 years of closely held, family business ownership experience to his consulting practice, providing prospective franchise owners with the greatest amount of confidence in pursuing their own business ownership dreams. The longest tenured FranNet broker, Craven has helped hundreds of entrepreneurs become first-time business owners. frannet.com
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Each spring, the International Franchise Association and FRANdata, a leading market research firm, produce an annual Franchising Economic Outlook. Among the findings in 2022, Arizona ranks third in predicted franchising growth, with the number of establishments expected to reach nearly 20,000, a 3% jump over 2021. But that’s not all. The report also predicts the number of people employed in the franchising industry will increase by nearly 4%, to 211,391, all told contributing almost $13.5 billion to the state’s economy — a 5.8% increase. So, what makes the greater Phoenix area, and Arizona in general, such an attractive target for franchise growth?
LIES, DAMNED LIES, AND STATISTICS
There are plenty of reasons for optimism, but there’s also some hype to discredit — starting with the Great Resignation. While it’s true that people have been quitting their jobs at record numbers, the majority of these individuals aren’t throwing off the yoke of corporate America to jump start entrepreneurial ventures. Most simply see an active buyer’s market and want to use the opportunity to salary shop. And, while it’s also true that the number of new business applications has soared, driven by the COVID unemployed, the majority of these filings is for extremely small outfits, not the kind destined to move the needle on revenue and hiring. Franchise establishments are much more substantial, but the target market that typically enters this part of the entrepreneurial arena is college educated professionals with some experience on their resume. And their unemployment rate today is extremely low, as they’re satisfied with their “safe” corporate positions.
BUCKLING UP FOR A DOWNTURN
What’s likely to spur franchise growth in Phoenix and the rest of Arizona is a recession. One quarter of negative GDP growth is already on the books and the follow-up is likely just around the corner. If and when it does materialize, white-collar unemployment will jump, producing an uptick in entrepreneurial futures. In the last two months, there’s been a 50% increase in franchising interest — because the smart ones can see this coming and want to get ahead of the curve.
ADVANTAGE: ARIZONA
Maricopa County is the fastest growing county in the U.S., according to the most recent census. Just between April 2020 and July 2021, Maricopa County added 76,000 residents, according to the U.S. Census Bureau. The growth in the West Valley is reminiscent of the Golden Age of franchising from the late ’50s to early ’70s — when construction of the Interstate Highway System drove franchise growth along the exits. Every new exit saw a new cluster of franchise business units. Heading
west on I-10 toward California should see a similar pattern. The consistent population growth drives economic growth (let’s give ACA efforts a nod here, too). It’s not just local businesspeople who want a slice of this economic pie; big-money investors across the country want to get in on the action, too.
THE GEOGRAPHIC ATTRACTIVENESS OF PHOENIX – WE HAVE GREAT REAL ESTATE
The Greater Phoenix area is mostly flat — mostly lacking natural barriers and features that impede transportation and business corridor planning. Unlike other places where rivers have real water, our transportation grid is an evenly spaced rectangular pattern of numbered streets and avenues with fabulous retail development at the major intersections. Whether local or out-of-state, franchisees are likely to find a great location for their new franchise business. It almost seems too easy! What many come to realize too late is that so do their top three competitors … at the very same intersection. The Phoenix area is one of the most competitive retail markets in the country. What works in other markets doesn’t always produce the same metrics in the Phoenix market. This reality has brought undesired results for some franchisees, especially those out-of-state big-money investors. The boutique fitness and food service categories are particularly susceptible. There are some notable mega brands brought from out-of-state, like Portillo’s and White Castle, but the investments required for these is beyond most. Perhaps a location-based franchise requiring real estate space isn’t the best franchise choice; for many, a servicebased franchise is best. These opportunities usually require lower investments with lower overhead. They can also be scaled without the incremental investment of another real estate location. A final word of advice for would-be franchisees: Yes, there is an optimal time to launch a new business of your own. It’s whenever you, and you alone, are personally ready to become a business owner.
Among the findings of the most recent annual Franchising Economic Outlook, Arizona ranks third in predicted franchising growth in 2022, with the number of establishments expected to reach nearly 20,000, a 3% jump over 2021.
INVESTING IN COMMUNITY KEY TAKEAWAYS As nonprofits seek to build and optimize relationships with mobile philanthropists, they should: • Know their interests. Part-time seasonal residents will give generously to organizations that appeal to their interests, purpose and goals. First points of entry often include organizations that directly align with their wellness, cultural and recreational priorities. • Create the link. Nonprofits should leverage board members’ community connections and social interactions to open doors to new sources of philanthropic support. • Facilitate a sense of community. Establishing a social network and a sense of belonging in mobile donors’ new communities — and staying connected year-round — creates a comfortable and inviting environment for engaging prospective donors. • Fundraise where they are. While in-person events and meetings are back in play, virtual and live-stream events remain important, allowing organizations to reach donors wherever they are.
Cultivating the Generosity of Seasonal Residents Mobile philanthropists do invest in secondhome communities by Richard Tollefson
As people become more mobile, so does their attitude toward giving. The notion that seasonal residents with homes in multiple communities are an unlikely source of philanthropic support is just false. Plain and simple.
THE POWER OF PERSONAL CONNECTIONS
Howard Katz, a retired Goldman Sachs executive who lives in Manhattan, the Hamptons and Scottsdale, never intended to get involved as a part-time resident in Arizona. A personal introduction and invitation from an active board member involved with a hospital foundation and museum changed his mind. Katz and his wife, Ellen, became engaged in their Phoenix and Scottsdale communities, met people with common interests and became generous donors and active board members of many local organizations. “Organizations need to find a way to make contact with seasonal residents who may be interested – whether they know it or not – in what their organizations offer, and that most effectively comes through active donors or volunteer leaders whose social and philanthropic networks and interests align.” Board of director members are uniquely positioned to create this connection. “Board members are your ambassadors, your reach into the community,” says Geri Wright, managing director at the Arizona Theatre Company. “If they are passionate members who make connections in the community, their passion can be contagious while building relationships with part-time and full-time residents.” Katz and Wright agree. One-on-one introductions are imperative, especially with part-time residents. Making that initial introduction can open the door for part-time residents who may not yet have established groups of local friends or acquaintances. That bond can lead to years of generosity and leadership from part-time residents, even if they only live in the area for a few months each year.
EVENTS STILL HAVE AN APPEAL Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com
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Fundraising events are still relevant. Whether in-person, virtual or a hybrid, events serve as the entry point for new donors and provide opportunities to cultivate relationships, recognize important members of the organization and keep donors engaged and informed — wherever they are. While in-person events return to popularity post-COVID, virtual events continue to offer benefits. Organizations can better engage part-time residents during their “off-season,” reach donors nationally and connect with wealthy millennials and others who may prefer a digital option.
SHOULD FUNDRAISING EFFORTS DIFFER FOR PART-TIME RESIDENTS?
The answer is a resounding no. “Fundraising efforts should be ongoing, whether the donors are here or not,” says Jared Langkilde, president and CEO of HonorHealth Foundation. “And the relationship needs to be ongoing, too. People are people — they want to be appreciated, meaningfully and authentically engaged and considered more than just a checkbook.” “Many mobile residents are equally passionate about helping communities blossom as their local counterparts and will donate year-round,” says Langkilde. One key to keeping them engaged is data. “Data is like liquid gold. For example, it’s important to have your donors’ alternate addresses in your mailing list. As people become more mobile, it’s vital to continue the conversation with them wherever they are.” Nonprofits should stay in touch and express gratitude throughout the year to keep these donors connected to the organization. Nonprofits should also remember that what constitutes meaningful engagement depends on the donor. There’s a segment of mobile philanthropists who don’t want to become deeply involved with the nonprofit or play a leadership role. They just want to write a check and enjoy the “perks” associated with being a donor, according to Jeffrey Byrne, CEO of Byrne Pelofsky, resident of Kansas City and part-time resident and active philanthropist in Vail, Colorado. “These are donors who will prioritize giving based on where they are at the time, what they are interested in doing — socially, culturally, recreationally — and who they are interested in meeting. It’s wise for nonprofits to ensure these donors get the perks and benefits they are looking for,” advises Byrne, “so that these part-time residents are happy with their donor experience.”
INCENTIVIZING BOARD MEMBERS
Nonprofits must acknowledge the role their board members play in fostering connections with mobile philanthropists. They should encourage board members, trustees and others by rewarding and recognizing their efforts. Some board members may be incentivized to expand their outreach through recognition among their board peers or special benefits offered to them. Access to the CEO, VIP special events, behind-the-scenes access and other incentives allow board members to easily host and impress their part-time friends. Nonprofits must explore every opportunity for new funding streams, including seasonal residents. Don’t be intimidated or reluctant. Get out there and make those personal connections to unlock the potential of mobile wealth.
One-on-one introductions are imperative, especially with part-time residents. Making that initial introduction can open the door for part-time residents who may not yet have established groups of local friends or acquaintances.
WE VALUE WHAT WE OWN
2022 Genesis GV70 Named MotorTrend’s 2022 SUV of the Year®, the first-ever GV70 is here to satisfy drivers’ cravings, needs and wants. Featuring incredible performance, athletic styling and advanced technology, this SUV proves that, in the end, want wins. With class-leading standard horsepower and an available 375-hp 3.5-liter twin-turbo engine, both power plants make this SUV a true Sport Utility Vehicle. With class-leading 300 horsepower, the 2.5-liter turbocharged inline-4 cylinder powers the GV70. The GV70 exterior plays host to sophisticated cameras, radar and ultrasonic sensors used to make everything from Smart Cruise Control with Stop & Go to available Remote Smart Parking Assist function with the simple press of a
button. On the inside, a segment-leading 14.5-inch HD screen that uses Connected Routing simplifies navigation. Further enhancing every drive, the available 12.3-inch 3-D Digital Gauge Cluster offers readouts that provide dimensionality and added depth for easy readability. A full 360-degree view around the vehicle helps eliminate blind spots and avoid potential obstacles while parking. Drivers can create a personal connection with their GV70 and start its engine with a quick tap on the industryfirst fingerprint reader, when equipped with the available Genesis Digital Key. Once experienced, all other vehicle-start procedures will feel outdated. This is the result of a relentless mission to create the perfect balance of athleticism and confidence. The attitude of GV70 is apparent the moment from its aggressive crest grille to the parabolic lines in the rear, in perfect balance. Inside, GV70 takes the same inspiration, placing the focus on the driver using flowing and curved lines, complemented by premium materials that wrap around its riders. Shaping the interior with everything from flowing lines to available spin-brushed aluminum trim, owners take control of their aesthetic with the customizable ambient interior lighting. —Mike Hunter
2022 GENESIS GV70 MSRP: $41,700 City: 22 mpg Hwy: 28 mpg Trans: 6-speed Automatic 0-60 MPH: 6.0 sec
Genesis genesis.com/us/en/genesis.html
Coffeegrams Personalized Café Emporos offers easy-to-use hand-
graduating from college, also worked as
drip coffee filters as coffeegrams —
a barista and received his barista license.
envelopes containing pour-over coffee
After returning to the United States, Trujillo
that can be personalized with a message,
opened Cafe Emporos as a side project
logo, company name or photo. Based in
and focused on his easy-to-use hand drip
Goodyear, the online coffee shop ships
coffee filters with its coffeegrams —
within the United States.
custom packaging of the hand-drip coffees
Photos courtesy of Genesis (top), Café Emporos (bottom)
Started in 2015 with coffee only —
with a message and a photo. Customers
which it sources from Uganda, Ethiopia and
now include Netflix, The ChanZuckerberg
Colombia — Café Emporos has since added
Initiative and Genesis Motors.
tea and hot chocolate. Cafe Emporos sells
DON’T MISS OUT!
Café Emporos was selected last year as
both individual products as well as bundles
one of 30 small U.S. businesses to receive
celebrate the perseverance, hard work and
in increments of 50.
a Creciendo Con TikTok grant from a fund
commitment of Latinx business owners.
created through a partnership of TikTok
—Mike Hunter
Owner Ruben Trujillo, who had moved to South Korea to teach English after
and the Hispanic Heritage Foundation to
Get a year of In Business Magazine Subscribe now at inbusinessphx.com
Café Emporos cafeemporos.com
GENESIS DIGITAL ‘Fingerprint’ Entry Genesis Digital Key is used in conjunction with a smartphone to lock/ unlock the vehicle. The procedure starts with the tap of a finger, using the industry-first in-vehicle fingerprint reader and start/stop button. Once experienced, all other vehicle-start procedures will feel outdated.
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MEALS THAT MATTER
GRILLED CAESAR Grilled chicken, parmesan cheese crisp, tomato and romaine lettuce tossed in Caesar dressing $8.75
Crispy chicken, bacon, pepper-jack cheese, tomato and lettuce with a buttermilk herb mayo $9.50
CHOP SALAD Romaine lettuce, cucumber, tomatoes, cheddar cheese, hard-boiled egg, bacon crumbles and blue cheese vinaigrette $9.75
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Birdcall – High-Flying Chicken Concept by RaeAnne Marsh
This fast-casual has spirit. Spirits, actually. Cocktails make even dry business meetings more enjoyable. Birdcall’s housemade selections include a traditionally salt-rimmed margarita (on the rocks or frozen) and a spicier-rimmed spicy cucumber margarita. Craft beer and wine are also on the menu. Also indulgent, but in a different way, are rich, thick milkshakes in not just the standard vanilla and chocolate flavors but also Oreo, banana cream pie and an extravagant peanut butter chocolate cookie dough. Birdcall stays true to its name, concentrating almost exclusively on chicken dishes. Crispy chicken accessorized simply with dill pickle chips in the “Original” sandwich; with bacon, pepper-jack cheese, tomato, shredded lettuce and buttermilk herb mayonnaise in the “Deluxe” sandwich; other options that include different regional sauces; and one grilled option as the Grilled Chicken Caesar. A veggie option — what Birdcall humorously puts on the menu as its “meat” option — is a plant-based cutlet sandwich. Crispy, grilled and veggie are also available to add to a variety of chef-inspired salads. Birdcall also offers specialty sauces made in-house from scratch, like its signature Bird-B-Q Ranch, Birdcall Sauce and Buffalo Blue Cheese, made with 100% natural ingredients. In fact, the community-based brand prides itself not just on serving 100% all-natural foods — which extends to a line of organic beverages in seasonal flavors to augment standard classics like Coke and Sprite — but on its commitment to local and sustainable. Its compostable cutlery, for instance, demonstrates the importance it places on sustainability. And local? Birdcall has partnered with Phoenix-based Noble Bakery to locally source fresh buns for each sandwich, and with local
breweries SanTan Brewing Co. and Greenwood Brewery. Birdcall operates with a philosophy of giving back at least 1% of sales to the local community. To support local businesses, Birdcall has collaborated with State Forty Eight on co-branded shirts that are available for purchase in-store for $15, where $1 from each T-shirt sold benefits the State Forty Eight Foundation. The Scottsdale location opened last month as the first in Arizona for Colorado-based Birdcall, which plans to open two more in Metro Phoenix this year and a total of 10 in the next three years. It’s a deliberately controlled growth, according to CEO and co-founder Peter Newlin, to ensure maintaining the level of quality at each location. Birdcall 7204 E. Shea Blvd., Scottsdale (480) 681-1060 eatbirdcall.com
Embracing its commitment to “local,” Birdcall has formed a relationship with neighboring Chaparral High School to show support for the Firebirds and its students by sponsoring a number of school events, including prom and senior sunset.
Photos courtesy of Birdcall
DELUXE SANDWICH
CELEBRATING OVER 30 YEARS OF SERVING THE WOMEN BUSINESS OWNERS OF PHOENIX
Summer 2022 • nawbophx.org
From the President’s Perch And another year is in the books … just like that.
It has been a privilege to act as NAWBO Phoenix president, bring us back into in-person gatherings after the throes of COVID, and work with an inspiring board of superstars. We continued the local rebranding of the organization; added Happy Hours to the mix; and greeted a whole new group of younger, more diverse members this year. And what is the best part? It only gets better as we roll into the 2022–2023 season. This year. we did many things differently. We did a photo shoot where we created a more fearless look and brought in speakers who were truly interesting, provocative and created meaningful conversation. Our first speaker brought in an over-capacity crowd: Kari Lake, former newscaster and top Republican gubernatorial candidate. Lake would be Arizona’s fourth elected woman governor, following Jane Hull in 1998, Janet Napolitano in 2003 and Jan Brewer in 2010. Did I get heat for this? Yes, I did. Do I regret it? Nope. We followed this with talks from a cannabis dispensary owner and speakers who inspired us to live our best lives. Our Women of Vision conference offered a diversity and inclusion segment that drew a great deal of meaningful thought and created a platform for conversation that touches everyday life. We are finishing the year the way we started: a gubernatorial panel of candidates addressing the issues important to women in business. As we head into next year, more than half our board is continuing. Incoming President Ania Kubicki is planning an even bigger year. We are planning more networking functions, programs at different times of day (hello, breakfast!) and programs with relevant topics that are both educational and inspirational. Our membership is growing. NAWBO is no longer the “ladies that lunch” crowd. We are bad ass. We are the face of women business owners.
Rosaria Cain
NAWBO Phoenix President Rosaria Cain founded Knoodle (knoodle.com), a public relations and marketing firm, in 1999, with her very first client, Fulton Homes, after 20 years in television, radio and newspaper. Her company is ranked among the top advertising agencies in the Phoenix Metro area and brands clients such as Sante’ Health, Cal-Am Resorts, Red Development and Prestige Cleaners. She still works with Fulton Homes today.
ABOUT NAWBO
Won’t you join us?
NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.
nawbophx.org
We provide opportunities to connect, collaborate, and cultivate through our events each month. Events are open to both members and guests. Check out our calendar at nawbophx.org and join us! Take advantage of this great opportunity to connect — we can’t wait to see you there!
For more infomation, visit www.nawbophx.org.
Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7729 E Greenway Rd. #300, Scottsdale, AZ 85260 480-289-5768 • info@NAWBOphx.org
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Why Collaboration Is the ‘New’ Competition by Ania Kubicki
Business is getting back to normal. Or is it? I feel bombarded daily with evidence of our nation’s inability to solve escalating problems like access to healthcare, proper ways to address mental health or even education or affordable housing. But I also see hope and potential solutions arising from the collective impact that we are having as we rebuild and create a “new normal.” The most promising opportunity, in my opinion, lies in shifting how we think about doing business. Operating in the proverbial silos, even with the best individual effort, does not stack up against today’s complex and interconnected problems. I remember the first time I heard the famous quote from Albert Einstein: “We cannot solve our problems with the same thinking we used when we created them.” Even though I was only in high school at the time, I held onto that quote and used it on multiple occasions in my life to shift my circumstances. The quote echoes in my mind strongly today because I believe that the pandemic has given us a much-needed reset from which we can embrace a new mindset and return to business with a new approach. I believe it’s time for small and mid-sized businesses to formally organize and embrace collaborative efforts. The concept is not a foreign one and is already gaining traction in the “big business” world. When I first read that a large U.S.-based ride-sharing company planned to publicly share research data on driverless cars with the academic community and even its competitors, I wondered how they would protect their IP. But their rationale was a beautiful example of embracing this new mindset. In a statement about the decision, the company said data sharing would “help level the playing field” for all those interested in such technology. The truth is that advancement in an industry accelerates growth for all. Working together identifies challenges faster and thus brings solutions to solve them. I chose “Collaboration is the New Competition” as my theme for the upcoming year. I think women have always excelled in bringing this concept
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to life. When encouraged, collaboration transforms business landscapes and industry ecosystems. Worrying about competition is a small-minded and fear-based approach and it will not solve our big-world problems. When we shift our mindset to view collaboration as the solution, together we can rise to the occasion and solve the challenges that impact our communities. I plan to ensure that our NAWBO chapter collaborates with other networking groups and business associations here in Arizona, connects industries and advocates locally and nationally on behalf of our members. When our members collaborate with each other, we all win — and our communities win. Doesn’t this sound like something you’d like to try? My challenge to you is as follows: 1. Identify a key issue that is impacting your industry. 2. Think of your three competitors. 3. Reach out to them to discuss their approach to solutions. 4. Document your ideas and share them with not just the competitors but with your entire industry. A candle loses nothing by lighting another. Let’s set the new ways of working together ablaze! Ania Kubicki is president-elect of the NAWBO – Phoenix chapter. She is the owner of ANGLES, a communications agency with a mission to connect ideas and the people behind them to those who benefit from them. Based at the Center for Positive Media, a newly created collaborative think tank inspiring a positive transformation of the media narrative, ANGLES works with visionaries who challenge the status quo and disrupt industries that need change. anglespr.com.
What Is the Definition of a Micro Business and Why Is It Important to WomanOwned Businesses? by Sindi Major Martinez
One of the four agenda items for the National Association of Women Business Owners (NAWBO) public policy efforts for 2022 is for Congress to further define a micro-business vs. a small business. The current definition of small business does not recognize the fact that most woman-owned businesses have fewer than 10 employees — and are competing with the current definition of small businesses in the U.S., defined per the North American Industrial Classification System (NAICS) code as a business that employs up to 500 employees. This makes it more challenging for micro-businesses to complete for capital and procurement opportunities. Many micro businesses are sole proprietorships with no employees and less than $250,000 in annual revenue. Most woman-owned businesses fit into this category. According to the U.S. Department of Treasury, the Small Business Administration has taken the lead in defining what constitutes a small business in the eyes of the federal government, and the SBA’s definition is the most widely used. This body of definitions is called “size standards” and can be found in Title 13 of the Code of Federal Regulations (CFR), Part 121. Small business is defined using size guidelines for the different categories of business enterprises, which include agricultural production, communications, manufacturing, retail, service, transportation and warehousing, and wholesale. Subcategories are included under each of these headings. Size is determined by the amount of average annual receipts or by the number of employees. Service businesses generally have a size standard that would be determined by averaging the gross annual receipts for the last three years. This average is then linked to the NAICS code for the procurement a business is looking to compete under. If its average annual receipts fall below the amount designated for that NAICS code, then that firm is small by definition. For example, if a business were selling computer programming services under NAICS code 541511, its average annual receipts over the past three years would have to be less than $21 million to qualify as a small business concern. For most manufacturing NAICS codes, the number of employees will be used as a size standard. For example, a mining firm is considered “small” if it has fewer than 500 employees. Because the body of definitions is complex and constantly changing, expert advice is essential to determine whether a business is “small.” With the current definitions of small business, many woman-owned businesses are unable to compete equally due to the lack of resources. Having Congress create a micro business classification will benefit most businesses in the United States, including the majority of woman-owned businesses. Please reach out to your congressional representatives to request that they support the creation of a micro-business classification. Sindi Major-Martinez is an accomplished business and technology executive with more than 30 years of experience working with organizations in the private and public sectors. She has worked for large organizations in various leadership positions and has started two of her own award-winning technology managed services and consulting companies. Major-Martinez received her MBA from the W. P. Carey School of Business Executive Program at Arizona State University. xcelr8now.com
nawbophx.org
Officers: President: Rosaria Cain President-Elect: Ania Kubicki Secretary: Debe Black Past President: Jean Briese Membership Chairs:
Suzi Glover-Garman & Imelda Hartley Marketing Chair: Taylor Wellman Programming Chair: Ania Kubicki Corporate Partners Co-Chair:
Ashley Ament Corporate Partners Co-Chair:
Christina Heide Neighborhood NAWBOs Chair:
Ginger Clayton Mentoring Chair: Ronit Urman Mentoring: Suzi Glover-Garman Public Policy Chair: Sindi Martinez Community Alliance: Angela Garmon Content: Sandra Guadarrama- Baumunk Strategic Planning: Madeleine MacRae Diversity and Inclusion:
Tish Times & April Tinhorn Next Gen: Chanese Smith
Corporate Partners: Commerce Bank of Arizona CopperPoint Insurance Company Crest Insurance Financial Potion In Business Magazine Phoenix Business Journal Salt River Project Splash Wells Fargo Financial
National Partners: Bank of America Chubb Merrill Lynch Southwest Airlines Wells Fargo
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Business Coach by Madeleine MacRae
Question: I’ve been reading about the Great Resignation for a while now and I just lost a key employee. I’m really worried that I’m going to lose more people. I already increased wages and can’t afford to keep upping compensation. What can I do to keep people?! —Feeling Worried Dear Feeling Worried, There are two key things that you can do to regain your confidence and to get out in front of issues that might be creating the conditions for unexpected exits. When you’re having voluntary turnover, the first question that you want to ask yourself is, “Could I have seen this coming?” People leave businesses for many reasons, but as owners and managers we need to be able to anticipate change. One way to do that is to establish an anticipated shelf-life for each role. While we would love for every single person who ever joins our business to stay with us until they retire or until we let them go, that is not reality. Every role within our business has a reasonable shelf life and it is our job to determine what that term looks like. To establish an anticipated shelf life for any given role, consider the number of years that an average performer would remain in the role before feeling ready to move on. When you’re puzzling this out, look at what has historically been true for your business and consider the type of person who usually steps forward for the role you’re evaluating. Where are they in their life and career journey? What skills or experience
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will they be acquiring in this role? How long will it take them to master this? Is this an entry-level role that someone would typically outgrow in two to three years? Is this a senior-level leadership role that someone who is very experienced is looking to as their final career move? The dynamics of achievement and of personality really matter when you’re setting up a baseline for how long you think someone would be reasonably fulfilled in any given role. If you’re hiring an entry level person and they leave after two or three years, that’s been a good run and you may have nothing to worry about. If, however, your VP is jumping ship after just two or three years, you may want to ask yourself why. When any team member is getting close to the shelf life for their current role, it is time for you to proactively consider a change for them. Perhaps they are ready to take on new skills, to be put on a new project, to cross-train into a new department or even to elevate into management. Staying on top of the shelf-life metric may help you avoid panic when people exit roles at or around the time that you’ve determined as the typical shelf life for that role. Now, once you’ve asked yourself that question, there are plenty of things that you can
do to see if there are other dynamics at play that you need to heed, and one of them is called a “stay interview.” A stay interview is designed to create a safe space for team members to share the nitty gritty about what is and isn’t working in their role and within the company. It is used to check the temperature of the team, keep a pulse on the overall culture of the company, and monitor individual job or career satisfaction. Instead of waiting for team members to become unhappy, leave, and then provide their feedback in an exit interview, management teams are proactively seeking the feedback of those people who are still on the team. More than an annual performance review, a stay interview builds a sense of trust and loyalty between manager and team member, strengthens the relationship with the company, and encourages an ongoing feedback loop that allows for proactive management. An effective stay interview must be done in a spirit of trust with positive intent on both sides and, ideally, should be conducted verbally by the direct manager of the team member. Each stay interview should consist of seven to nine questions dealing with overall culture,
personal fulfillment, challenges, disappointments and hopes for the future. Keep the tone positive but balanced. Consider the content you are most looking to discover and craft your questions accordingly. Questions can range from super specific to more generalized. Three of the questions I’ve found very revealing are: • What is it that you LOVE about your work with the company? • What decisions or changes in the past few months have disappointed you? • If you were king/queen for the day, what would you change and why? Find one or two strengths you can further strengthen and/or opportunities for improvement in each interview, no matter how small they might be. And then circle back on the action you’ve taken directly with the team or team member within seven to 14 days of conducting the Stay Interviews. Letting ideas and insights linger for months without action can be worse than not soliciting the feedback in the first place. What you learn in a well-executed stay interview will help you see if there are bigger issues afoot or if your company is simply having some growing pains. People join businesses for many different reasons and when the business has grown beyond a certain threshold or has taken a new strategic direction, some attrition is absolutely normal. Some individuals prefer to work for smaller businesses where their impact is bigger and clearer while others would rather be one among many. Having a growing business will mean turnover. It’s not bad or wrong — and it’s not easy, either. If you have considered the shelf life, have done a good stay interview, and have made meaningful improvement to your business, you’re well on your way to keeping your best people. Madeleine MacRae is a business and leadership coach who focuses on bringing her clients thought-provoking, practical, usable content that accelerates their implementation and secures their long- and short-term results. She loves the grit and determination of small to mid-sized business owners and has dedicated her career to helping them and their teams. mmmacrae.com
nawbophx.org
Five Ways to Enhance Your Business Communication through Public Speaking by Danielle Williams
In today’s ever-changing landscape of communication, the potential for success and growth within business comes from a variety of skill sets. Yet many businesses find they’re confused by the elements of language due to technology replacing words with symbols and emojis. Trying to get their point across while being understood on the various platforms of communication tends to lead businesses down a frustrating path of miscommunication. An effective business strategy is to invest in a public speaking workshop. Public speaking is a “life tool” and beneficial to enhancing several areas of business communication. Here are a few benefits that can boost business communication through a public speaking workshop. 1. Expanding vocabulary: This creates a new level of interest when communicating. Business dialogue begins to transform into a sophisticated and elevated eloquence. Conversations evolve that open the door for engagement with a more diverse clientele. 2. Confidence boosting: Practice simple techniques in basic skills in body language, posture, voice pitch and tone. This helps to build communication confidence with employers and their staff. 3. Generating new revenue: Public speaking generates an added revenue stream that can enhance the growth potential of a business. It also puts employers and staff in high demand for various speaking engagements. 4. Improving critical thinking: Public speaking techniques can be a complement to the various situations where critical thinking is used in business. They help in improving behaviors with patience, becoming a more astute listener and asking earnest questions to reach a positive resolve. 5. Creating a new environment: Public speaking gives business owners the opportunity to create a new way of interacting with co-workers and management. Quarterly meetings can take on a new perspective. Learning some basic public speaking skills can enhance business meetings with added humor, participation and productivity. Danielle Williams is the owner of Diva Strong Media, talk show host of “Community Link AZ,” motivational speaker, and stage 4 lung cancer warrior as a non-smoker. danielledivastrongmedia.com
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ASK THE SALES EXPERT…
Five Sales Recruiting Strategies for Finding Top Sales Talent
Practically every business owner I meet these days is struggling to attract sales talent. Here are some tips that can help you make your next sales hire. by Debe Black How well does your business find, recruit and hire high-performing sales reps and key sales talent? Do your methods lead to reliable hires and replicable success? Or do your sales recruitment efforts too often send you back to “square one” after you’ve invested considerable time, effort and money on an underperforming sales rep with no “upside?” If your direct sales recruiting process repeatedly falls short, it’s likely your overall sales recruiting strategies are a root cause. With that in mind, here are five critical sales recruiting strategies. Understand your current sales recruiting approach. Does your company use a strategic method — one that is systematic, proven, welldocumented and replicable from one hire to the next? Or is your approach to direct sales recruiting more “seat of the pants?” Perhaps your sales recruiting strategies lie in between, but you aren’t sure where you stand. Regardless, if your sales recruitment process is ill-defined and often leads to bad hires, it is time to take a closer look. A great place to start is by taking a Sales Hiring Skills Assessment (salesxceleration.com/sales-hiring-skillsassessment/) to identify gaps in your sales recruiting strategies. Define your ideal candidate. When selling your company’s products and services, your sales reps improve their conversion rates by targeting the right prospects at the right time in the right ways. So, why wouldn’t you do the same when “selling” your company to sales talent during recruiting? The first part of this success equation is finding the “right prospects” (or, in this case, the right job candidates). This requires a clear picture of your ideal candidate and the position. What type of person will succeed as your sales rep? What experience and expertise should they possess? Do they have a history of sales success? Are they trainable and coachable? Do they have the personality to connect with customers and fit in with your current team? Simply put, if you don’t have a clear vision of who you are looking for (and the position), how will you know when they show up? Use the right sales recruitment tools and resources. When recruiting sales reps, many companies play a numbers game. They use every available tool, resource and platform to reach anyone and everyone currently seeking a sales rep position. The result? Too many applicants to sift through with only a few exceptional candidates standing out. The better approach is to focus on quality over quantity. Use a strategic mix of only those tools, resources and recruiting platforms likely to connect you with that ideal candidate. Be prepared to answer candidate questions. For a sales hire to be successful, it must be mutually beneficial — the proverbial “win-win” situation. So, don’t just go into the sales recruitment process loaded with questions for candidates; be prepared to answer their questions, too — about sales compensation, onboarding, territories, travel and other key job factors.
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Get help recruiting sales reps when you need it. Recruiting and hiring a top-notch sales rep is a complex process, and the stakes are high. If you typically manage direct sales recruiting on your own, take a step back and honestly assess if that makes sense. If you and your team are not skilled in sales recruitment, admit it. Chances are you’ve seen your weaknesses play out in wasted time, misfires and unacceptable turnover rates. An expert recruiter will ensure your next sales hire is the right fit for your team. They can bring critical perspective and focused skill sets necessary to simplify your recruiting and hiring, while helping you avoid the substantial costs — to your reputation and bottom line — of making a bad hire.
The Bottom Line
Effective sales rep recruitment is critical to business success. It requires a strategic, targeted approach using the right resources. Unfortunately, many businesses fall short and end up making — and repeating — costly mistakes. To determine how well your business handles hiring salespeople, check out this free Sales Hiring Skills Assessment (salesxceleration.com/sales-hiringskills-assessment/). The assessment can help you understand where your company falls short, and how to implement new strategies for better sales hires and reduced turnover. Debe Black is the founder of Action Ignite Sales in Phoenix, Arizona, focusing on sales excellence. Action Ignite Sales utilizes the Sales Xceleration platform, helping clients exceed their growth and sales targets across a range of industries by building successful sales plans and aligned sales teams. dblack@salesxceleration.com
A BUSINESS OWNER’S RESOURCE TO LEGAL SERVICES
2022
Top Firms Profiled:
Protecting your business is their
business SPOTLIGHTING
Burch & Cracchiolo Guidant Law Firm Lewis Roca Quarles & Brady Snell & Wilmer Spencer Fane See more online inbusinessphx.com/legalguide
Tiffany & Bosco Wilenchik & Bartness Withey Morris
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INBUSINESSPHX.COM
Legal Services Guide
Counsel for Business
HOW TO CHOOSE A LAWYER • The State Bar Association of Arizona’s website offers these valuable tips:
Before, during and after the COVID-19 disruption, specialized legal expertise serves our business community
• Get recommendations from friends and family members who have had positive experiences with lawyers.
by RaeAnne Marsh
• Search for lawyers by practice area or location at the State Bar’s online Find a Lawyer feature on its homepage.
Doing things right at the outset can save time and money down the road. This truism is especially relevant in business. Working with an attorney to ensure a business is on the right track, in compliance and negotiating with protection in mind is why working with an attorney is so beneficial. It is also why In Business Magazine has compiled this Legal Guide to showcase local firms who strongly support the business community and offer their specialized practice areas, to help business owners make decisions on what firm to use locally. The COVID-19 pandemic has raised many questions and brought to the fore many issues for businesspeople in every sector of the economy. Many law firms have stepped up to this need by posting on their websites updates on regulatory issues and articles to help business leaders navigate the challenges of this crisis. There are many ways a business could get off on the wrong foot without proper advice. A common problem, alluded to in many of the monthly “Legal” articles in In Business Magazine, is businesses taking a DIY approach thinking it will save them money. This often backfires, making things more complicated — and, thus, more costly — when they later do get an attorney involved. It’s not just a matter of knowing how to deal with certain matters; there may be requirements or implications of which the business owner is unaware. As the saying goes, “Most new business owners don’t know what they don’t know.” For instance, perhaps a business has been approached by another regarding a transaction. The owner may try to reach agreement on the business terms before getting an attorney
involved, and then just ask the attorney to write it up. Law relies heavily on precedent, and there may be implications and ramifications to certain terms the business owner may be unaware of — this on top of the potential for missed opportunities for the business. When exiting a business, as well, there are many factors to be considered that an owner may not have dealt with. These include tax ramifications, transfer of intellectual property rights, and how to structure proceeds to be most beneficial for future income. And there may be regulatory requirements such as getting permission from the Federal Trade Commission if the sale exceeds a certain threshold; if the company is in breach or violation of that law, the transaction could be revoked — or fines and penalties could be assessed. It should be emphasized that, while law does rely heavily on precedent, change does occur — through new regulations, new court decisions and even through public outcry. The cover story of the June issue that this special section appears in delves into changes in some of the broad areas that apply to businesses across industries. (“Your Business & the Law,” June 2022 issue of In Business Magazine) What an attorney brings to businesses, then, is a view to avoid both pitfalls and missed opportunity. This In Business Magazine 2022 Legal Guide has been created to help businesses connect with the appropriate resources for their needs and to be a reference should a specific expertise be needed. State Bar of Arizona azbar.org
• Visit the lawyer’s website; see if they will answer some basic questions before you commit to meeting with them. Ask about their experience in handling your particular issues, and their availability to take client phone calls and respond to emails. Some lawyers insist that clients make appointments and will not answer client calls and emails. You will want someone who is accessible when you need them. • Consult a list of Certified Legal Specialists. The State Bar can provide a list of specialists in the areas of Bankruptcy, Criminal, Estate and Trust, Family Law, Injury and Wrongful Death, Real Estate, Tax and Workers’ Compensation. There are also lawyer referral services, which, for a small fee, will help in finding a lawyer. State Bar of Arizona azbar.org
About This Section In Business Magazine is proud to connect the legal community with businesses throughout the Valley with this annual Legal Guide. The law firms included in this guide are firms that are familiar to In Business Magazine, have reputable practice areas specific to business and support the business community in several ways. We have included profiles of our supporting firms, providing even more information of their services and top attorneys. Please visit inbusinessphx.com/legalguide to get a more detailed list of attorneys with these firms and to search by practice areas.
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JUNE 2022
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Legal Services Guide Ballard Spahr L.L.P.
One E. Washington St., Suite 2300 Phoenix, AZ 85004 (602) 798-5400 ballardspahr.com
Business & Finance, Intellectual Property, Litigation, Public Finance, Real Estate
Bowman and Brooke L.L.P. 2901 N. Central Ave., Suite 1600 Phoenix, AZ 85012 (602) 643-2300 bowmanandbrooke.com
Product Liability, Commercial Litigation, Healthcare & Nursing Home Negligence, Alternative Dispute Resolution, Class Actions
Bryan Cave L.L.P.
One Renaissance Square Two N. Central Ave., Suite 2100 Phoenix, AZ 85004 (602) 364-7000 bryancave.com
Bankruptcy, Business & Commercial Litigation, IP, International Trade, Real Estate, Labor
Buchalter Nemer
16435 N. Scottsdale Rd., Suite 440 Scottsdale, AZ 85254 (480) 383-1800 buchalter.com
Real Estate, Litigation, Corporate, Tax & Estate Planning, Labor & Employment, Bank & Finance, Healthcare.
Burch & Cracchiolo, P.A.
1850 N. Central Ave., Suite 1700 Phoenix, AZ 85004 (602) 274-7611 bcattorneys.com
Asset Protection, Business & Corporate Law, Commercial Litigation, Construction, Creditors’ Rights, Bankruptcy & Reorganization, Equine Law, Estate & Wealth Preservation Planning, Family Law, Government, Indian Law, Labor & Employment, Real Estate, Real Estate Investment, Succession Planning for Business, Taxation & Tax Controversy
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Carpenter, Hazlewood, Delgado & Bolen P.L.C.
Davis Miles McGuire Gardner P.L.L.C.
Community Association Representation, Construction Defect Litigation, Insurance Defense, Churches & Nonprofits, Business, Employment Law, Bankruptcy & Reorganization, Landlord/Tenant, Real Estate, Civil Litigation, Criminal Defense
Commercial Litigation, Real Estate, Tax, Corporate, Mergers & Acquisitions, Corporate Bankruptcy
1400 E. Southern Ave., Suite 400 Tempe, AZ 85282 (480) 427-2800 carpenterhazlewood.com
The Cavanagh Law Firm
1850 N. Central Ave., Suite 2400 Phoenix, AZ 85004 (602) 322-4000 cavanaghlaw.com
Litigation, Family, Real Estate, Insurance Defense, Bankruptcy & Creditors’ Rights, Healthcare, Corporate
Clark Hill
3200 N. Central Ave., Suite 1600 Phoenix, AZ 85012 (602( 440-4800 clarkhill.com
40 E. Rio Salado Pkwy., Suite 425 Tempe, AZ 85281 (480) 733-6800 davismiles.com
Dickinson Wright P.L.L.C. 1850 N. Central Ave., Suite 1400 Phoenix, AZ 85004 (602) 285-5000 dickinson-wright.com
Alternative Dispute Resolution, Bankruptcy, Commercial Litigation, Employment, Family Law, Tax, International
Engelman Berger P.C.
2800 N Central Ave., Suite 1200 Phoenix, AZ 85004 (602) 271-9090 eblawyers.com
Litigation, Corporate, Healthcare, Real Estate, Creditors’ Rights, Bank & Finance, Family, Immigration
Business Disputes, Real Estate Disputes, Bankruptcy, Reorganization, Creditors’ Rights, Business Transactions, Real Estate Transactions, Water Law, Loan Workouts, Mediation, Public Finance, Bonds, Employment
Coppersmith Brockelman P.L.C.
Fennemore Craig P.C.
Healthcare, Employment, Litigation, Corporate & Real Estate, Governmental Investigations
Blockchain & Cryptocurrency, Business & Finance, Business Litigation, Emerging Businesses & Technologies, Intellectual Property & IP Litigation, Real Estate, Renewable Energy & Clean Tech, Mining and Environmental, Energy & Natural Resources
2800 N. Central Ave., Suite 1900 Phoenix, AZ 85004 (602) 224-0999 cblawyers.com
DLA Piper
2525 E. Camelback Rd., Suite 1000 Phoenix, AZ 85016 (480) 606-5100 dlapiper.com
Corporate, Employment, Tax, Litigation, International Arbitration, Real Estate
2394 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 (602) 916-5000 fennemorelaw.com
Gallagher & Kennedy P.A.
2575 E. Camelback Rd., Suite 1100 Phoenix, AZ 85016 (602) 530-8000 gknet.com
Business Law & Transactions, Litigation, Real Estate, Tax Law, Environmental, Insurance, Healthcare, Sports Law
INBUSINESSPHX.COM
Legal Services Guide Gammage & Burnham P.L.C.
Greenberg Traurig L.L.P.
Gust Rosenfeld P.L.C.
Business Organizations & Commercial Transactions, Collections & Bankruptcy, Health Care, Litigation, Real Estate, Zoning & Land Use
Litigation, Tax, Labor, Construction, Corporate, Securities, Intellectual Property
Franchise, IP, Bankruptcy, Construction, Corporate, Creditors’ Rights, Employment, Real Estate
40 N. Central Ave., Suite 1200 Phoenix, AZ 85004 (602) 256-0566 gblaw.com
2375 E. Camelback Rd., Suite 800 Phoenix, AZ 85016 (602) 445-8000 gtlaw.com
Guidant Law Firm Gordon Rees Scully Mansukhani, L.L.P.
2 N. Central Ave., Suite 2200 Phoenix, AZ 85004 (602) 794-2460 grsm.com
Civil Appeals, Commercial Litigation, Construction, Employment, Insurance Defense, Privacy & Data Security, Real Estate
402 E Southern Ave. Tempe, AZ 85282 (602) 888-9229 guidant.law
Arbitration & Mediation, Bankruptcy, Cannabis, Commercial, Construction, Corporate, Entertainment, Estate Planning, Intellectual Property, Personal Injury, Probate & Estate Litigation, Real Estate, Tax Planning & Problems
One E. Washington St., Suite 1600 Phoenix, AZ 85004 (602) 257-7422 gustlaw.com
Hymson Goldstein & Pantiliat & Lohr P.L.L.C. 14500 N Northsight Blvd., Suite 101 Scottsdale, AZ 85260 (480) 991-9077 scottsdale-lawyer.com
General Practice, Litigation, Family Law, Real Estate, Bankruptcy
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For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessphx.com/legalguide.
Burch & Cracchiolo Now with 41 attorneys, Burch & Cracchiolo is one of the Southwest’s premier law firms. The firm was founded in 1970 by Haze Burch and Dan Cracchiolo and today the firm’s lawyers are among the most highly regarded and recognized leaders in the areas of business and corporate law, construction, criminal defense, estate and wealth preservation planning, family law, finance, labor and employment, litigation, personal injury/wrongful death, insurance defense, real estate, tax law and zoning and land use. In 2020, the 80 employees of Burch & Cracchiolo relocated to the entire 17th floor of the BMO tower at Central & Palm Lane after 35 years at the corner of 7th Street & Osborn. The new custom-built space has state-of-the-art technology and audiovisual capabilities, which have been
At the top
TOP REPRESENTATIVE ATTORNEYS
Brennan Ray, Land Use & Zoning Susie Ingold, Employment Litigation Ed Fleming, Commercial Litigation Casey Blais, Real Estate Law Tonya MacBeth, Family Law
At-a-Glance FIRM NAME: Burch & Cracchiolo MAIN LOCAL OFFICE: 1850 N. Central Avenue, Suite 1700 Phoenix, AZ 85004 PHONE: (602) 274-7611
crucial for our clients during the pandemic. It has allowed us to never stop providing the legal expertise and client service for which Burch & Cracchiolo has been known for 52 years. The firm has a long history of giving back to the community through many nonprofit sponsorships, donations and volunteer efforts. Burch & Cracchiolo honors a teacher monthly through the Star Teacher Award, providing $500 to cover non-reimbursable costs for classroom supplies.
WEBSITE: www.bcattorneys.com OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNER: Andy Abraham NO. OF YEARS WITH FIRM: 40 YEAR ESTABLISHED LOCALLY: 1970 PRACTICES: Business & Corporate, Commercial Litigation, Real Estate, Land Use and Zoning, Personal Injury/Wrongful Death, White-Collar Criminal Law
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Legal Services Guide Jaburg Wilk
Jackson White Senior Law
Administrative Law, Appellate, Bankruptcy, Business/Corporate, Business Divorce, Collections, Co nstruction, Defamation, Employment, Estate Planning, Family Law, Foreclosure, Healthcare, Insurance Law, Intellectual Property, Internet Law, Litigation, Probate Litigation, Real Estate
Commercial Litigation, Construction Law, Criminal Defense, Disability Law, Elder Law, Intellectual Property Law, Labor & Employment Law, Real Estate Law, Tax Law
3200 N. Central Ave., Suite 2000 Phoenix, AZ 85012 (602) 248-1000 jaburgwilk.com
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessphx.com/legalguide.
40 N. Center St., Suite 200 Mesa, AZ 85201 (480) 464-1111 jacksonwhitelaw.com
Jennings, Haug, Keleher & McLeod, L.L.P. 2800 N. Central Ave., Suite 1800 Phoenix, AZ 85004 (602) 234-7800 jhkmlaw.com
Appellate, Business Bankruptcy, Business Law, Commercial Real Estate & Finance, Construction Law, Creditors’ Rights, Employment Law, Environmental Law, Estate Planning, Trusts & Probate, Insurance Defense & Coverage, Litigation, Mediation & Arbitration, Medical Malpractice, Municipal Law, Professional Liability & Lawyer Discipline, Professional Malpractice, Surety & Fidelity Law
Jennings Strouss
One E. Washington St., Suite 1900 Phoenix, AZ 85004 (602) 262-5911 • jsslaw.com
Alternative Dispute Resolution, Antitrust, Appellate, Bankruptcy, Reorganization & Creditors’ Rights, Commercial Litigation, Corporate & Business, Eminent Domain, Energy, Estate Planning & Probate, Executive & Employee Compensation, Fidelity, Government Relations & Public Affairs, Intellectual Property, Labor & Employment, Medical & Professional Liability Defense, Mergers & Acquisitions, Products Liability, Real Estate, Securities & Finance, Securities Litigation & Regulatory Compliance, Surety, Tax, Tort & Insurance
Jones, Skelton & Hochuli P.L.C. 40 N. Central Ave., Suite 2700 Phoenix, AZ 85004 (602) 263-1700 • jshfirm.com
Insurance Defense, General Civil Litigation, Appeals, Alternative Dispute Resolution, Transportation, Criminal Defense, Medical Malpractice
Guidant Law Firm Guidant takes a personalized and practical approach to resolving complex growth-oriented legal issues. Whether handling a contentious dispute, overseeing a sensitive negotiation or positioning a company for growth, the firm maintains a strong client-first philosophy, providing sound and practical counsel. The partners are business owners who have encountered many of the same opportunities and challenges their clients face — giving them heightened perspective into the concerns that keep clients up at night and insight into how to improve outcomes. Guidant attorneys are well-known across the state and within their respective industries for integrity and exceptional talent. The respect they command reinforces Guidant’s standing as a firm that provides the highest level of service to businesses. Recognitions include:
At the top
TOP REPRESENTATIVE ATTORNEYS
Gary Smith, Commercial Litigation Sam Saks, Commercial Litigation James Kuzmich, Transactional Law Lamar Hawkins, Bankruptcy Scott Jensen, Estate Planning/Probate
At-a-Glance FIRM NAME: Guidant Law Firm MAIN LOCAL OFFICE: 402 E. Southern Ave., Tempe AZ 85282
• • • • • •
Best Law Firms® Best Lawyers® Southwest Super Lawyers Arizona’s Finest Lawyers AV-Rated, Martindale-Hubbell State Bar of Arizona Presidential Award
Partners are also leaders within the legal community, serving the following organizations: • State Bar of Arizona Board of Governors • Arizona Foundation of Legal Services and Education Board • Arizona Board of Legal Specialization Bankruptcy Law Advisory Commission • Arizona Cannabis Bar Association Board • Psychedelic Bar Association Legalization and Regulation Committee
PHONE: (602) 888-9229 WEBSITE: www.guidant.law OFFICES IN METRO PHOENIX: 7 NATIONALLY HEADQUARTERED: Tempe MANAGING PARTNER: Lamar Hawkins NO. OF YEARS WITH FIRM: 3 YEAR ESTABLISHED LOCALLY: 2019 PRACTICES: Arbitration & Mediation, Bankruptcy, Cannabis, Commercial Litigation, Construction, Corporate, Estate Planning, Personal Injury, Probate & Estate Litigation, Real Estate
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Legal Services Guide Koeller, Nebeker, Carlson, Haluck, L.L.P. 3800 N. Central Ave., Suite 1500 Phoenix, AZ 85012 (602) 256-0000 • knchlaw.com
Business Litigation, Construction Claims, Construction Litigation, E-discovery & Data Management, Employment Litigation, Environmental, General Legal Defense, Government Tort Liability, Professional Malpractice, Insurance Coverage/Bad Faith Litigation, Workers Compensation, Commercial Trucking & Transportation Defense Litigation
Lewis Brisbois Bisgaard & Smith L.L.P. 2929 N. Central Ave., Suite 1700 Phoenix, AZ 85012 (602) 385-1040 lewisbrisbois.com
Medical Malpractice, Construction Defect Litigation, Products Liability, General Liability, Professional Liability
Lewis Roca Rothgerber Christie, L.L.P.
201 E. Washington St., Suite 1200 Phoenix, AZ 85004 (602) 262-5311 lewisroca.com
IP, Bankruptcy, Corporate & Securities, Commercial litigation, Labor & Employment, Real Estate, Regulatory Affairs, Healthcare
Littler
2425 E. Camelback Rd., Suite 900 Phoenix, AZ 85016 (602) 474-3600 littler.com
Management-side Employment Advice & Counsel, Labor & Management Relations, Employment Litigation, Immigrations & Global Migration, Business & Human Rights, e-Discovery, International Employment & Labor
Lewis Roca
May Potenza Baran & Gillespie 1850 N. Central Ave., Suite 1600 Phoenix, AZ 85004 (602) 252-1900 maypotenza.com
Administrative Adjudications, Alternative Dispute Resolution, Appeals, Bankruptcy Reorganization, Commercial Creditors & Debtor’s Rights, Employment & Labor
Ogletree, Deakins, Nash, Smoak & Stewart P.C. 2415 E. Camelback Rd., Suite 800 Phoenix, AZ 85016 (602) 778-3700 ogletree.com
Employment, Traditional Labor Relations, Litigation, Unfair Competition & Trade Secrets, Immigration
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At-a-Glance
Lewis Roca, a premier U.S.-based law firm, serves clients from around the world in complex litigation, intellectual property, business transactions, labor and employment, regulatory counseling, and government relations. One guiding principle has driven our success: an unwavering commitment to client service. With lawyers and legal professionals across nine offices throughout the western United States, Lewis Roca has the resources and agility to handle virtually any matter. The firm is consistently recognized for its record of achieving results in Chambers USA, Best Lawyers, Super Lawyers, World Trademark Review (WTR) 1000, Benchmark Litigation and IP Stars. We are dedicated to creating legal solutions for leading businesses throughout the United States with lawyers who have the business and industry know-how to deliver solutions and success to clients. Because every client engagement is unique, we match our legal approach to the specific challenge at hand. Through our extensive experience across a range of industries, delivered by teams who work collaboratively across practices areas, we develop effective solutions to even the most nuanced and complex legal matters.
FIRM NAME: Lewis Roca MAIN LOCAL OFFICE: 201 E. Washington St., Suite 1200 Phoenix, AZ 85004 PHONE: (602) 262-5311 WEBSITE: www.lewisroca.com OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNERS: Kenneth Van Winkle, Jr., Firm-wide Laura Pasqualone, Phoenix office NO. OF YEARS WITH FIRM: 35 YEAR ESTABLISHED LOCALLY: 1950 PRACTICES: Litigation; Real Estate; Labor & Employment; Corporate; Intellectual Property; Cybersecurity & Data Protection; Indian Tribal Nations; Bankruptcy; Mergers & Acquisitions; Sports, Entertainment & Recreation; Tax; Gaming; Healthcare; Restaurants, Retail & Hospitality
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Legal Services Guide Osborn Maledon P.A.
Quarles & Brady L.L.P.
Commercial Litigation, Corporate & Securities, IP, Technology, Real Estate, Criminal, Bankruptcy
Commercial Bankruptcy & Restructuring, Business Law, Environmental, Franchise, Healthcare
2929 N. Central Ave., Suite 2100 Phoenix, AZ 85012 (602) 640-9000 omlaw.com
Perkins Coie L.L.P.
One Renaissance Square Two N. Central Ave., Suite 600 Phoenix, AZ 85004 (602) 229-5200 • quarles.com
7144 E. Stetson Dr., Suite 300 Scottsdale, AZ 85251 (480) 505-3936 • roselawgroup.com
Real Estate, Land Use & Zoning, Tax, Family, Estate Planning
Sacks Tierney P.A.
2901 N. Central Ave., Suite 2000 Phoenix, AZ 85012 (602) 351-8000 perkinscoie.com
Radix Law
Business Litigation, Patent & IP, Business & Licensing, Real Estate, Criminal Defense
Business Law, Real Estate Law, Commercial Litigation, Bankruptcy Law, Estate Planning
Polsinelli
Renaud Cook Drury Mesaros P.A.
Business Litigation, Corporate, Financial Services, Health Care, Real Estate, Life Sciences & Technology, Immigration, Tax
Wrongful Death, Medical Malpractice, Product Liability, Insurance Coverage, Appeals, Business & Real Estate
One E. Washington St., Suite 1200 Phoenix, AZ 85004 (602) 650-2000 • polsinelli.com
Rose Law Group P.C.
15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 (602) 606-9300 • radixlaw.com
One N. Central Ave., Suite 900 Phoenix, AZ 85004 (602) 307-9900 • rcdmlaw.com
4250 N. Drinkwater Blvd., Fourth Floor Scottsdale, AZ 85251 (480) 425-2600 • sackstierney.com
Appeals, Banking, Bankruptcy & Restructuring, Beneficiary Representation, Business & Corporate, Civil Litigation, Commercial & Public Finance, Construction, Dispute Resolution, Employment, Equity & Debt Finance, Estate Planning, Family Law, Guardianship & Conservatorship, Healthcare, Homeowner Association, Indian Law & Tribal Relations, Intellectual Property, Loan Workouts & Problem Asset Resolution, Marijuana Business, Private & Public School, Probate & Trust Administration, Real Estate, Trust & Estate Litigation, Uniform Commercial Code, Water, Environmental & Natural Resources
Quarles & Brady Quarles & Brady has more than 150 diverse attorneys, legal professionals and business professionals in our Phoenix and Tucson offices, each of them committed to the success of our clients. That commitment is driven by two words — partnership and value — that have been the foundation of our firm’s approach to client service for 130 years and continue to inspire us today. As a firm, we consistently receive notable recognition because we make it our priority to partner closely with our clients and to provide value throughout the relationship. Partnership means we commit to doing everything we can to help your business succeed.
At the top
TOP REPRESENTATIVE ATTORNEYS
Leonardo Loo, Phoenix office managing partner and partner in the Business Law Group Brad Vynalek, firm president and partner in the Litigation & Dispute Resolution Group Amy Cotton Peterson, national chair of the Health & Life Sciences Group Roger Morris, partner in the Health & Life Sciences Group Heather Buchta, Phoenix office chair of the Intellectual Property Group and member of the Data Privacy & Security industry team
At-a-Glance FIRM NAME: Quarles & Brady LLP MAIN LOCAL OFFICE: One Renaissance Square Two N. Central Ave., Suite 600 Phoenix, AZ 85004
We have deep experience across a broad range of legal matters, including business law, emerging growth companies, energy, environment & natural resources, health & life sciences, intellectual property, labor & employment, litigation, real estate, and zoning & land use. Value means we never lose sight of your bottom line. While delivering timely, responsive counsel and a favorable outcome for our clients is paramount, we also prioritize cost control and adhering to client budgets. Ultimately, we will work closely with you to ensure we are meeting your definition of value. When you combine our dedication to partnership and value with savvy legal counsel and the resources of an AmLaw 200 firm, it becomes clear why Quarles & Brady is the right firm to help you achieve your long-term business goals.
PHONE: (602) 229-5200 WEBSITE: www.quarles.com OFFICES IN METRO PHOENIX: 1 MANAGING PARTNER: National managing partner – Mike Aldana Phoenix managing partner – Leonardo Loo YEAR ESTABLISHED LOCALLY: 1970 PRACTICES: Nationally, the firm has 10 offices, with practices focused in bankruptcy, restructuring and creditor’s rights; business law; energy, infrastructure and environment; estate, trust and wealth preservation; health and life sciences; intellectual property; labor and employment; litigation and dispute resolution; product liability; public finance; and real estate and land use. The firm also has extensive experience providing counsel on the many issues associated with COVID-19.
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Legal Services Guide
At-a-Glance FIRM NAME: Spencer Fane LLP MAIN LOCAL OFFICE: 2415 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 PHONE: (602) 333-5430 WEBSITE: www.spencerfane.com OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Kansas City, MO MANAGING PARTNER: Patrick J. Whalen NO. OF YEARS WITH FIRM:26 YEAR ESTABLISHED LOCALLY: 2017
Spencer Fane LLP Spencer Fane is a full-service business law firm focused on providing results that move clients and their businesses forward. With direct access to firm leadership and a different approach to client engagement, its attorneys instill confidence and certainty that the clients’ interests are the firm’s priority. Your business leaders work with our business leader — leaders who work decisively, execute with purpose and understand the importance of flawless timing. The firm pursues measured growth that created a sizable but controlled footprint without offices on either coast while aligning with the needs of clients in the markets where they do business. This has included a specific focus in Phoenix since establishing our thriving office here in 2017. At Spencer Fane, we believe diversity, equity and inclusion are fundamental principles essential to the firm and our clients’ success. Therefore, we seek to foster and develop a diverse array of attorneys and professional staff who bring varied ideas and perspective to our clients’ complex legal challenges. In recent years, Spencer Fane clarified and amplified a focus on three distinctive components that fuel a competitive edge: • Providing extraordinary client service. • Being the law firm of choice for top talent. • Driving operational excellence.
The firm has developed a firmwide focus on the importance of humility, collaboration, empowerment, positive energy and fierce resolve as core values that guide each attorney and staff member. In particular, humility, a selfless way of being that anchors attorneys and employees on a daily basis, sits at the center. The supporting pillars are: • Resolve to win — an unwavering ambition to realize success. • External focus with positive energy — a resilience to overcome adversity & focus on possibility. • Empowerment — an environment where others are inspired to thrive. • Collaboration — continuous pursuit of more creative solutions through connection with others. The firm consists of more than 400 attorneys in 21 different practice groups. The firm has offices in Phoenix, Arizona; Colorado Springs and Denver, Colorado; Tampa, Florida; Overland Park, Kansas; Minneapolis, Minnesota; Cape Girardeau, Jefferson City, Kansas City, St. Louis and Springfield, Missouri; Omaha, Nebraska; Las Vegas, Nevada; Oklahoma City, Oklahoma; Greenville, South Carolina; Dakota Dunes, South Dakota; Hendersonville and Nashville, Tennessee; and Austin, Dallas, Houston and Plano, Texas.
PRACTICES: Banking and Financial Services; Bankruptcy, Restructuring, and Creditors’ Rights Corporate and Business Transactions; Health Care; Intellectual Property; International; Labor and Employment; Litigation and Dispute Resolution; Mergers & Acquisitions; Real Estate
At the top
TOP REPRESENTATIVE ATTORNEYS
Andrew M. Federhar, Litigation and Dispute Resolution Andy G. Anderson, Corporate and Business Transactions David E. Funkhouser III, Litigation and Dispute Resolution Raj Gangadean, Corporate and Business Transactions Helen Holden, Labor and Employment Steven J. Laureanti, Intellectual Property Michael F. Patterson, International Jessica Gale, Litigation and Dispute Resolution Richard H. Herold, Litigation and Dispute Resolution Brian Zavislak, Real Estate
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Legal Services Guide Salmon, Lewis & Weldon P.L.C. 2850 E. Camelback Rd., Suite 200 Phoenix, AZ 85016 (602) 801–9060 • slwplc.com
Business & Finance, Commercial Litigation, Commercial Law, Corporate Real Estate, Electric Power & Utilities, Environmental Law
Sherman & Howard L.L.C.
Spencer Fane, LLP
Real Estate, Labor & Employment, Estate Planning, Bankruptcy, Mergers & Acquisitions, Litigation, Banking & Finance, Immigration, Tax
Bankruptcy, Restructuring, and Creditors’ Rights, Corporate and Business Transactions, Data Privacy and Cybersecurity, Employee Benefits, Governmental Affairs, Health Care, Intellectual Property, Labor and Employment, Mergers & Acquisitions, Nonprofit and TaxExempt Organizations, Real Estate, Tax, Trusts, & Estates
201 E. Washington St., Suite 800 Phoenix, AZ 85004 (602) 240-3000 shermanhoward.com
Sanders & Parks, P.C.
3030 N. 3rd St., Suite 1300 Phoenix, AZ 85012 (602) 532-5600 • sandersparks.com
Civil Litigation, Corporate, Professional Liability Litigation, Insurance Defense, Public Entity/ Municipal Defense, Intellectual Property
Schneider & Onofry P.C.
365 E. Coronado Rd. Phoenix, AZ 85004 (602) 230-8857 • soarizonalaw.com
Snell & Wilmer, L.L.P.
One Arizona Center 400 E. Van Buren St., Suite 1900 Phoenix, AZ 85004 (602) 382-6000 swlaw.com
Banking & Finance, Litigation, Corporate & Securities, Intellectual Property, Labor Employment & Benefits, Natural Resources, Environmental & Energy, Real Estate & Tax
2415 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 (602)333-5430 spencerfane.com
Squire Patton Boggs
2325 E. Camelback Rd., Suite 700 Phoenix, AZ 85016 (602) 528-4000 squirepattonboggs.com
Corporate, Environmental, IP, Litigation, Public Finance, Restructuring, Real Estate
Administrative, Business, Employment, Alternative Dispute Resolution, Civil & Commercial, Construction Litigation, Civil Rights, Family
Wilenchik & Bartness The law firm of Wilenchik & Bartness provides high-level litigation services to a select group of clients. With its many highly skilled attorneys and paralegals, the firm also provides commercial arbitration and mediation services and works closely with businesses to manage their legal needs. It has represented many high-profile individuals in the state and county, including county attorneys, judges, a senator’s son, the state treasurer, the secretary of state, and former and current attorneys general. The firm was founded in 1991 by Dennis I. Wilenchik, who left a senior partnership at the international firm of Squire Patton Boggs to form a smaller, more personalized practice while retaining a big-firm quality of practice. Still in active practice with his son, Jack — who was selected a “super lawyer” in business litigation this year by Thomson Reuters — he was recently named Best Trial Lawyer in the Valley for the fourth straight year by Foothills Magazine, and one of the Top 100 business lawyers in Arizona by a Business Magazine.
At the top
TOP REPRESENTATIVE ATTORNEYS
Dennis I. Wilenchik • Jack Wilenchik
At-a-Glance Dennis I. Wilenchik
Dennis Wilenchik is rated Martindale-Hubbell AV®-Preeminent™, the highest rating available under the Martindale-Hubbell rating system, and he is listed in the national Bar Register of Preeminent Lawyers. Wilenchik has been a nationally certified civil trial advocate by the National Board of Trial Advocacy for more than 15 years. He is an Arizona Bar Foundation Fellow and was elected a Fellow to the American Board of Professional Liability Attorneys. Wilenchik has served as a civil judge pro tem of the Superior Court; president of Maricopa County Bar Association Young Lawyers Division; board member of the Arizona Bar Journal; chairman and secretary of the Civil Trial Practice Committee; member of the Superior Court Civil Study Committee of the State Bar; and member of the Department of Real Estate Advisory Board, appointed by the governor.
FIRM NAME: Wilenchik & Bartness MAIN LOCAL OFFICE: 2810 N. Third St. Phoenix, AZ 85004 PHONE: (602) 606-2810 WEBSITE: wb-law.com OFFICES IN METRO PHOENIX: 2 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNER: Dennis I. Wilenchik NO. OF YEARS WITH FIRM: 31 YEAR ESTABLISHED LOCALLY: 1991 PRACTICES: Complex Business Disputes, Complex Civil Litigatin, Real Estate Civil Litigation & Appeals, including White Collar Criminal & Construction Litigation & Disputes of All Kinds
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Legal Services Guide Stinson Leonard Street L.L.P. 1850 N. Central Ave., Suite 2100 Phoenix, AZ 85004 (602) 279-1600 stinson.com
Commercial & Class Action Litigation, Bankruptcy & Creditors’ Rights, Corporate Counseling, Banking & Financial Services, Real Estate
Warner Angle Hallam Jackson & Formanek P.L.C.
Withey Morris P.L.C.
Commercial & Business Law, Construction, Real Estate, Commercial Loans, Divorce & Family, Trusts & Estates, Probate
Master Plan Developments, Comprehensive Plan Amendments, General Plan Amendments, Zone Changes, Development Agreements, Use Permits, Variances, Building Permits & Entitlements, Abandonments, Easements, Design Reviews, Annexations, Stipulation Modifications, Waivers, Subdivision & Plat Maps, Entitlement & Opinion Letters, Interpretation Issues, Code Enforcement & Property Violations, Zoning Ordinance Text Amendments, Due Diligence, Referendums
2555 E. Camelback Rd., Suite 800 Phoenix AZ 85016 (602) 264-7101 • warnerangle.com
Wilenchik & Bartness P.C.
Tiffany & Bosco P.A.
2525 E. Camelback Rd., Suite 700 Phoenix, AZ 85016 (602) 255-6000 tblaw.com
Banking, Employment, IP, Tax, Real Estate, Commercial Litigation, Construction
2810 N. 3rd St. Phoenix, AZ 85004 (602) 606-2810 • wb-law.com
Complex Business Disputes, Real Estate Civil Litigation & Appeals, including White Collar Criminal & Construction Litigation & Disputes of All Kinds
2525 E. Arizona Biltmore Circle, Suite A-212 Phoenix, AZ 85016 (602) 230-0600 witheymorris.com
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessphx.com/legalguide.
CLEARING HURDLES FROM DIRT TO DEVELOPMENT Withey Morris is your advocate at City Hall. Land Use • Zoning • Real Estate • Government Affairs (602) 230-0600 • info@WitheyMorris.com • WitheyMorris.com
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Two double-shot macchiatos before 10, then it’s decaf all the way. Chai tea, soy latte, or regular joe, we make it our priority to understand what makes you, you. In doing so, we address your legal needs with a uniquely tailored approach. Find out more at swlaw.com
Albuquerque | Boise | Dallas | Denver | Las Vegas | Los Angeles | Los Cabos | Orange County Phoenix | Portland | Reno | Salt Lake City | San Diego | Seattle | Tucson | Washington, D.C.
Abdallah, Omar, 26
Feldheim, Dalia, 35
Naviasky, Louis, 66
Sullivan, Edward, 35
Abraham, Andy, 9, 57
Fort, Christine, 24
Newlin, Peter, 46
Tollefson, Richard, 44
Babcock, Linds, 34
Fose, Max, 22
Pasqualone, Laura, 60
Trujillo, Ruben, 45
Badoux, Laurent, 26
Garner, Don, 38
Peyser, Brenda, 34
Ummel, Tim, 14
Baird, John, 35
Ginsec, Ioanna, 13
Pierik, Martijn, 10
Van Kirk, Jennifer, 26
Bennett, Scott, 26
Hawkins, Lamar, 58
Pitcher, Jeff, 26
Van Winkle, Kenneth Jr., 60
Bianchi, Randy, 40
Johnsen, Don, 26
Power, Lilach Mazor, 18
Vesterlund, Lise, 34
Black, Debe, 52
Kehaly, Pam, 39
Reeves, Kyler, 10
Weingart, Laurie, 34
Butler, Tyler, 39
Kubicki, Ania, 48
Rich, Court, 26
Whalen, Patrick J., 61
Cain, Rosaria, 47
MacRae, Madeleine, 50
Rodrigues, Mike, 12
Wiggs, Christine, 39
Craven, Kent, 42
Mahlmeister, John, 11
Rosenfield, Susan Stone, 26
Wilenchik, Dennis I., 62
Davis, Marna, 12
Major-Martinez, Sindi, 49
Samples, Hilary, 10
Williams, Danielle, 51
Elstins, Sean, 22
McCulloch, Jonathan, 15
Smith, Gary, 26
Yaiva, Leander, 20
Ezrachi, Ariel, 35
Morris, Jason, 26
Sullivan, Bob, 14
Action Ignite Sales, 52
Exro Technologies, Inc., 12
AECOM-Canyon Partners, 15
Fennemore, 26
National Association of Women Business Owners – Phoenix, 47
Alliance Bank of Arizona, 38
Fose+McKay, 22
ANGLES, 48
FranNet of Arizona, 42
Phoenix Philanthropy Group, The, 7, 44
Arizona Commerce Authority, 2
Fyresite, 22
Pickleball Kingdom, 12
Tiffany & Bosco, PA, 54
Arizona Community Foundation, 68
Gallagher & Kennedy, 26
Plexus Worldwide, 12
UnitedHealthcare, 5
Arkos Health, 20
Genesis, 45
ProTech Detailing, 19
Vestar, 16
Association of Fundraising Professionals, 7
Give Virtual Care Health Tech, 14
PXG, 25
ViaWest Group, 15
Guidant Law Firm, 26, 58
Quarles & Brady, 60
Vivili Hospitality Group, 10
Belgravia Group, 15
Holtzman Vogel Baran Torchinsky & Josefiak PLLC, 24
Rose Law Group, 26
Wave Neuroscience, 20
Birdcall, 46
IndiCap, 15
Scottsdale Recovery Center, 20
Wilenchik & Bartness, 61
BitFire Studios, 14
Internet for Growth, 22
Snell & Wilmer, 64
Willmeng, 41
Blue Cross Blue Shield of Arizona, 21, 39
Jive, 8
Bayard Advertising, Inc., 66
BMO Harris Bank, 43 Buchalter, 26 Burch & Cracchiolo, 9, 57 Cafe Emporos, 45 Colliers, 17 CommercialEdge, 13 Coppersmith Brockelman, 26 Diva Strong Media, 51 DMB Associates, 16 Dominium, 16
OneAZ Credit Union, 23
Spencer Fane, 61 State Bar of Arizona, 55 Stearns Bank, 8 Sundt, 12
Withey Morris, PLC, 26, 62
Jorns & Associates, 40
CHECK US OUT
Kinessage, 19 Kiterocket, 10, 67 Knoodle, 47 Lewis Roca, 26, 59 Lifted Trucks, 12 Lincoln Property Company, 12, 15 Lovitt & Touché, 3 Mazor Collective, 18 Mountain View Funeral Home and Cemetery, 10
Easy Ice, 11
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65 JUNE 2022 INBUSINESSPHX.COM
A CANDID FORUM
BY
The Rise of Recruitment Marketing Talent attraction today requires an expanded toolbox of tactics by Louis Naviasky
Over the past two years, the COVID-19 pandemic upended the culture in the United States, flipping the labor market on its head. The Great Resignation, as many call it, has shifted attitudes of workers — and the impact is not only immediate but, seemingly, long-lasting. Isolation, burnout and lack of employer empathy have resulted in a mass exodus of qualified and skilled workers. Women still in the labor force are experiencing higher rates of burnout, with 42% saying they’ve felt consistently burned out by 2022. Competition amongst employers is at an all-time high, as candidates are no longer being driven by the same values. Comparable wages and career stability no longer hold the same weight in attracting candidates. Instead, workers are seeking strong employer brands, inclusive company cultures, work environment flexibility, balance in professional and home life, and additional wellness perks beyond the standard health insurance offerings. In today’s market, it’s more critical than ever that organizations invest in a strong recruitment marketing strategy — one that is all-encompassing, innovative and gets results.
PRIORITIZING RECRUITMENT MARKETING
Serving as CEO since 2005, Louis Naviasky has grown Bayard Advertising, Inc. from a team of 60 to an organization of more than 350 professionals. As a seasoned executive in recruitment marketing, Naviasky focuses on new, innovative solutions for the agency’s roster of clients. Naviasky is a graduate of The University of Maryland, College Park and continued his graduate studies at The Johns Hopkins University. bayardad.com
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The pandemic has redefined how we work, across every industry and demographic group in the country. Nearly 4 million people are quitting their jobs every month. Companies have been experiencing major talent shortages, especially in industries like hospitality, retail and healthcare. A few major causes include the retirement of approximately 1.5 million more baby boomers than expected during COVID-19, about 870,000 fewer women being in the workforce compared to pre-pandemic levels, and labor force participation rates well below pre-COVID levels. Because of these drastic changes, employers are forced to find new and creative ways to reach and engage prospective employees. At Bayard, existing clients have been spending approximately 59% more on recruitment ads and solutions than they spent in 2019. Companies that understand candidate values and know how to reach them where they are will have the most success in reaching organizational hiring goals, increasing retention rates and creating a more positive workplace culture overall.
CREATIVE TACTICS ATTRACT CANDIDATES
With employer competition at an all-time high — job postings are up 60% on Indeed compared to pre-pandemic levels — many companies have leaned into everything from innovative, digital-focused advertising to more traditional guerrilla marketing strategies. There has been an uptick in the use of technology to increase efficiency in the recruitment process; recruitment automation tools, which streamline and simplify the application process for candidates, provide talent acquisition leaders with increased candidate flow and a larger pool of qualified candidates for current and future openings. With more candidates than ever spending time on social media,
platforms like YouTube, Instagram and TikTok have proven effective methods for converting potential candidates into applicants. In fact, 68% of millennials indicated that they visit an employer’s social media profiles to evaluate the employer’s brand. And LinkedIn data indicates that strong employer branding led to a 28% reduction in turnover. At Bayard, social media spend by clients across industries was up 165% last year compared to year over year. Some employers have even tried more traditional mass marketing approaches like TV ads, direct mailers, vehicle wraps and out-of-home signage in an effort to stand out from the competition and grab workers’ attention at critical, everyday touchpoints.
COMBATTING THE GREAT RESIGNATION
It’s more critical than ever that organizations develop, illustrate and execute an authentic employer brand with an employee value proposition that speaks to both its target and ideal workers. Through peer-to-peer communication and real-life employee testimonials, organizations can exemplify their company culture in a way that truly resonates and tells a story. The employer brand should be apparent and applied consistently across marketing mediums, including career pages, digital ads and social media campaigns. It’s also critical that organizations have the right data to determine their recruitment marketing strategies. Bayard, for instance, has a team of data analysts that collect and gather data across three critical segments of information: vendor and market insights, macro labor market trends, and proprietary figures from 100 million touchpoints measured annually within its established media buying portfolio. This data is then used to inform the creation and optimization of campaigns, from genesis through subsequent iterations to achieve the highest ROI possible. More than ever, recruitment advertising has proven an incredibly powerful tool for companies of all sizes and industries. All in all, talent acquisition leaders have been required to expand their toolbox of tactics in these unprecedented times.
With more candidates than ever spending time on social media, platforms like YouTube, Instagram and TikTok have proven effective methods for converting potential candidates into applicants.
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