JANUARY // FEBRUARY // 2016
EDITOR’S MESSAGE
Bill Hanson
PUBLISHER bill.hanson@newsandtribune.com
First of the Best
M
Shea Van Hoy
EDITOR shea.vanh@newsandtribune.com
Stephen Allen
Shea Van Hoy Editor
PRODUCTION MANAGER stephen.allen@newsandtribune.com
Brandi Jones DESIGNER
Christopher Fryer
PHOTOGRAPHER christopher.fryer@newsandtribune.com
ost everybody has had that soulsucking job. You know the one — where you’re looking at the clock at what you think is every hour, but it turns out just 10 minutes have gone by. It also could be the one where you don’t think management cares at all about you, and you may be right. There’s no such quandaries with the employers featured and praised in this edition of Southern Indiana Business Source. They’re our 2015 Best Places to Work, the first time we’ve ever compiled such a listing. Leading the pack of nominations were two New Albany assisted living properties — Autumn Woods Health Campus and Lincoln Hills Health Center. Julie Hartlage, administrator at Lincoln Hills, says she simply follows the Golden Rule in leading her staff caring for residents. “I try to really work with the department managers and set an example that you treat people the way you want to be treated,” she said. “I think if you live that motto, it will go a long way.” That compassion that spreads from the top down is also a key at Autumn Woods, said Executive Director Lori Hess.
“Our employees care so much,” she said. “When you have a president of a company talk about how much he loves his employees that just kind of spreads. This building is not shy about telling each other how much we love them. We care for each other.” A family atmosphere was cited often in nomination forms filled out by Southern Indiana workers in describing their employer. Also regularly cited were: good communication, flexible work schedules, a cooperative work environment and extras such as parties and fun activities for employees. We hope you enjoy reading about Southern Indiana’s Best Places to Work, and if you’re a business owner or leader, perhaps you can take some of the aspects of the featured businesses back to your office. If you are in the job hunt, you might want to check out some of the companies featured in these pages. They come with a strong reputation.
Shea Van Hoy is Editor of the News and Tribune. Reach him via email at shea.vanhoy@newsandtribune. com or by phone at 812-206-2130.
Tyler Stewart
PHOTOGRAPHER tyler.stewart@newsandtribune.com
CONTRIBUTING WRITERS LAUREN CLAYCOMB CAROL DAWSON URIC DUFRENE VERNE ESWINE BRADEN LAMMERS TODD LOGSDON KIM NAVILLE KIRK RANDOLPH SUZANNE RAURK PAUL SANDERS JUSTIN SUER
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Inside Cover
Results are in for our inaugural Southern Indiana’s Best Places to work Get an inside look at the following businesses and find what makes them a great environment for employees Pages 11-27
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PARTNERS
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 5
SCHOOL TO WORK
Dealing with Rapid Economic Change By Justin M. Suer :: Ivy Tech Community College :: ivytech.edu
T
he makeup of the U.S. economy has been completely transformed over the last three decades. The economy has moved rapidly from a manufacturing economy to a service- and knowledge-based economy. The alarming pace of change continues to accelerate. This change, driven by technology and globalization, leave behind a trail of workers ill-equipped to keep pace. “America thrived in the 20th century because we made high school free, sent a generation of GIs to college, trained the best workforce in the world,” said President Barack Obama. “We were ahead of the curve. But other countries caught on. And in a 21st century economy that rewards knowledge like never before, we need to up our game. We need to do more.”
EDUCATIONAL ATTAINMENT
The evidence is clear — educational attainment is vital to employment and higher earnings. According to recent data from the National Student Clearinghouse, however, the percentage of students actually earning degrees continues to decline. “Out of 2.9 million students enrolled, the overall national six-year completion rate for the fall 2009 incoming students was 52.9 percent, a decline of 2.1 percentage points from the fall 2008 cohort. This is twice the rate of the decline observed in last year’s report. Combined with a small decrease in the percent of students who were still enrolled in their sixth year, the rate at which students were no longer enrolled, without having earned a degree, increased 2.7 percentage
Earnings & Unemployment Rates by educational attainment 2013 Unemployment Rate (%)
All Workers: 6.1%
2013 Median Weekly Earnings (%)
2.2
Doctoral Degree
1,623
2.3
Professional Degree
1,714
3.4
Master’s Degree
1,329
4.0
Bachelor’s Degree
1,108
5.4
Associate’s Degree
777
7.0
Some College, No Degree
727
7.5
High School Diploma
651
11.0
Less than high school diploma
472
All Workers: $827
points, from 30.3 percent to 33 percent” concludes the report. THE 3 RS
Alarmingly, we have fewer students completing degree programs despite an increased demand for knowledge in the U.S. economy. Why? As a community college administrator, I see first-hand the myriad obstacles students face completing degree programs. The keys to overcoming those obstacles fall under one of three categories that start with the letter “R”: Resiliency, Relationships AND Resources RESOURCES
Time and money are our scarcest resources. College and/or job training is both expensive and time consuming. Since 1971, the cost of tuition has risen much faster than the median family income. Navigating the complex web of financial aid is convoluted and confusing. Consequently, many students are unable to fund 100 percent of their education expenses. “We know we can’t help every student reach 100 percent,” says Linda Trusty, associate director for financial aid at Morgan State University. “Our goal is to help our students reach 80 percent.” Consequently, students are forced to work 15 to 40 hours and/or incur debt in order to fund the shortfall. This further delays the completion of degree programs. In many instances, it leads to a permanent stop out. Moreover, there are serious consequences to the accumulation of student debt.
Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers. Source: Current Population Survey, U.S. Bureau of Labor Statistics, U.S. Department of Labor
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 7
continued on page 8
Economics: Rapid Change
RESILIENCY
continued from page 7
“Young people are postponing home ownership, postponing family formation, postponing children, postponing starting businesses – because, in part at least, of student debt.” says Purdue University President Mitch Daniels. “So we’ve built ourselves a significant set of problems here and it’s really good that there’s now such sensitivity and people are working on it.”
Today’s college students have jobs, families and liabilities. Consequently, life’s turbulence is inevitable. Like a prize fighter, some students are able to absorb the knocks without losing a foothold. Others are less resilient. Those students lack certain noncognitive characteristics that give rise to persistence. Psychologist Angela Duckworth uses the term “grit” to describe these characteris-
tics. Furthermore, she has developed a test called the “Grit Scale” that measures these characteristics. Duckworth defines grit as “sticking with things over the very long term until you master them.” Standardized tests tend to measure cognitive intelligence. Intelligence is an important predictor of success; however, grit is an enormously undervalued ingredient. Students with grit face the turbulence with more stamina and resilience than their more vulnerable peers. Ivy Tech student Candace Godin exemplifies grit. “I had my daughter Emerie at the age of 16 ... as a sophomore in high school.” says Candace. “I decided that I didn’t want to be another statistic ... that I was and will always be more than just a statistic. I wanted to be the outlier. “In May of 2016, I will graduate with a degree in Paralegal Studies, not because it’s been easy, but because I’ve been determined to persevere and be the outlier.” Dr. Carol Dweck is a professor of psychology at the University of Virginia. Her continued on page 9
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book, “Mindset: The New Psychology of Success” introduces a similar theory. According to Dweck, students with a fixed mindset believe intelligence is static. Students with a growth mindset, however, understand that intelligence is pliable. Students with a growth mindset feel empowered to improve. Students with a fixed mindset, however, are more easily deterred by setbacks. RELATIONSHIPS
First-generation college students, lowerincome students and minority students face “social-psychological” barriers that limit them. Their parents and peers are unfamiliar with the process of preparing for college, applying for admission and financial aid and navigating the higher education system. These students lack a support network to help them maneuver through unfamiliar territory. “It’s like going to a foreign country and trying to navigate systems and programs that you have never come in contact with before,” says Tenesha Villanueva, a co-director of alumni programs at YES Prep Public Schools in Houston.
Research indicates that students who develop purposeful relationships with faculty and staff are more likely to succeed in college. Consequently, institutions are taking steps to hire and train additional staff and faculty to assist those students. Counselors, advisers, mentors and nonprofit agencies like Education Matters (EMSI) offer meaningful one-on-one relationships with students. “Once registered with EMSI, we work with each individual on their next step and meet that person where they are in their educational journey — whether that’s career exploration, transcript and credit evaluation, financial aid issues, prior learning assessment, etc.,” says Bridgett Strickler, Executive Director of Education Matters in New Albany. “Our One-Stop is composed of career guidance and academic advising experts who are ready to serve our community as neutral advocates for adults wanting to return and complete.” IN CONCLUSION
The economic stakes are high. In their book, “The Race between Education and Technology,” the Harvard economists Clau-
dia Goldin and Lawrence F. Katz wrote about the economic quandary. “Not so long ago, the American economy grew rapidly and wages grew in tandem, with education playing a large, positive role in both,” they wrote. “The challenge now is to revitalize education-based mobility.” Policymakers, parents, and educators must do more to assist our young people with resources, resiliency, and relationships. Institutions must find ways to better help students develop grit and a growth mindset. Institutions must equip staff and faculty with the skills needed to better understand the needs of low-income and minority students and cultivate edifying relationships. Mentorship and support are critical to student success. Policymakers must find ways to slow or halt the rising cost of higher education and the escalating student debt problem without thwarting the completion of degrees and job training. If we cannot solve this complex problem, economic inequality will continue to swell. Justin M. Suer is Dean, School of Business and Public Services at Ivy Tech Community College-Sellersburg
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 9
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SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 11
Love is in the air at Autumn Woods
Employees say facility more than just a workplace By Chris Morris :: Photos by Christopher Fryer
D
on’t say anything bad about Autumn Woods Health Campus around Clyde Ledbetter. If you do, he will quickly set you straight. “The most wonderful people in the world are right here. I couldn’t make it without them,” said Ledbetter, 90, who has lived at Autumn Woods for nine months. While Autumn Woods is a long-term nursing facility located at 2911 Green Valley Road in New Albany, the people who live and work there say it is much more than that. The home-like atmosphere gives all who enter the front doors a welcoming vibe. Including the employees. In a recent Southern Indiana Business Source poll, Autumn Woods was voted one of the best places to work in Southern Indiana. “Our employees care so much,” said Lori Hess, executive director of Autumn Woods. “When you have a president of a company talk about how much he loves his employees that just kind of spreads. This building is not shy about telling each other how much we love them. We care for each other.” While the turnover rate of employees is high at long-term nursing facilities, Hess said Autumn Woods has some dedicated employees who have been there for years. “Not everyone has the skills and compassion needed to work with elderly people. We have people here who truly have that love and compassion,” she said. “When we hire someone, they go through a three-step process. They are interviewed by the department leader, they job shadow someone and then they talk to the director.
“We care about them and try to help them as much as we can.” Autumn Woods is part of the Trilogy network, which has 96 campuses in Indiana, Kentucky, Michigan and Ohio. Silvercrest in New Albany is also owned by Trilogy. Besides long-term care services, Autumn Woods also provides short-term care and rehabilitation for seniors who are recovering from illness or surgery. Employees plan several theme days each year as a morale booster and are also eligible for company scholarships. The work is not easy, and not always happy. But Hess said employees try to focus on the positive instead of the negative. That is what has motivated Sandy Whelan, director of guest services, for the past 11 years. She said she always tries to stay upbeat. “I love the people here and I love my job and what I do,” she said. “It’s like family. It feels like home. The people here become family. We go beyond just workplace friends.” Whelan said her father-in-law recently passed away while at Autumn Woods and she said it hurt her co-workers as much as it did her. “The people here loved him as much as I did,” she said. “We care about each other and each other’s families. It is a hard job, but the love we get from these residents is so priceless. They accept you no matter what. It’s unconditional love.” She said many in the health industry would rather work at a hospital so they don’t get attached to the patients. She said it’s hard to say goodbye to residents in long-term facilities because when they pass away, you also lose their extended family.
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Laura White, New Albany, an occupational therapist of 14 years, assists short-term rehab resident Mavis Darlene Farabee, Clarksville, on her last day of therapy at the Autumn Woods Health Campus in New Albany. STAFF PHOTO BY CHRISTOPHER FRYER
“You build those personal relationships,” she said. “You get to stay with them until the end. You help them feel as comfortable as possible. It’s kind of our mission, we get to walk these people home. It’s sad. We not only mourn the loss of our residents but we also will no longer get to see their family members as much. “It’s special to be able to walk someone home and know they are in a better place.” Adrienne Thomas, director of staff development, has worked at Autumn Woods since 2010. She started out as a certified nursing assistant at the facility before being promoted to her
new position. She has been director of staff development since 2013 and this month will graduate with her LPN. She said she is grateful that Autumn Woods thought enough of her to promote her while she was an CNA. “They saw potential and thought I could do it,” she said. “They gave me the courage to keep going. This is the longest company I have worked for. They have so many options for people ... education assistance and other resources. This company cares
about its employees.” Autumn Woods also gives back. The facility recently collected thousands of pounds of food for Hope Southern Indiana’s food pantry and holds fundraisers throughout the year for the New Albany Police Department’s Cops for Kids program. Thomas said there is a difference
The people here become family. We go beyond just workplace friends. continued on page 14
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 13
Autumn Woods continued from page 13
in the way employees are treated in long-term nursing facilities. “Not only upper management but management in this building. They are very humble,” she said. “It’s a family atmosphere we have here. It’s more like home, not a hospital.” Ledbetter knows all about both, and he said he “loves” living at Autumn Woods. “I don’t think I have ever heard anyone say anything bad about it,” he said. ::
ABOUT AUTUMN WOODS •
Long-term nursing facility located at 2911 Green Valley Road, New Albany.
•
Also provides: Short-term care and rehabilitation for seniors who are recovering from illness or surgery.
•
Website: http://trilogyhs.com/browse-locations/item/ autumn-woods-health-campus
Rita Osborne, Georgetown, a physical therapy assistant of 13 years, assists short-term rehab resident Helen Cuits, New Albany, with coordination and strength exercises at the Autumn Woods Health Campus in New Albany. PHOTO BY CHRISTOPHER FRYER
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Dietary Manager Maria Mason, New Albany, an employee of 30 years, celebrates with resident Joyce Murphy after Murphy won a round of Bingo at Lincoln Hills Health Center in New Albany.
One big happy family Lincoln Hills Health Center works to keep employees for the long haul By Aprile Rickert :: Photos by Christopher Fryer
M
aria Mason has worked at Lincoln Hills Health Center for 30 years, and said she can’t imagine being anywhere else. She’s not the only one. An overwhelming number of workers at the New Albany retirement home have put in five, 10, 15 years or more and say it’s easy to be somewhere they love. It’s one of the reasons Lincoln Hills was chosen as a Southern Indiana Business Source best place to work. “I love working here,” Mason said. “It’s a family atmosphere and I get along with everybody.” Julie Hartlage, administrator at Lincoln Hills, has been with the company eight years. She said the best way to maintain a
great working environment is to follow the Golden Rule. “I try to really work with the department managers and set an example that you treat people the way you want to be treated,” she said. “I think if you live that motto, it will go a long way.” Michelle Booker has been in the activities department at Lincoln Hills for five years. She’s also a certified nursing assistant. She said she couldn’t imagine leaving Lincoln Hills. She had a second job once, and it wasn’t the same, she said. “I cry, they all want to know what’s wrong,” she said of co-workers. “They know when I’m not in a good mood — even when I’m trying to hide it they know when I’m not myself and
continued on page 16
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 15
Lincoln Hills continued from page 15
they bring myself back out of me. That’s why they’re family to me. “They don’t judge anybody; they want to know what’s going on and try to fix it. I’ve never worked anywhere like that.” Booker gets the residents really involved, Hartlage said. During Halloween, Lincoln Hills has a “Haunted Halls” event, where close to 600 children come in to Trick-or-Treat. “Michelle had all different costumes for the residents,” she said. “She likes to have fun and they see that and they join in.” On the same hand, Booker said this also trickles down from Hartlage and department heads. “It’s her,” Booker said about Hartlage. “She’s warm and inviting and it makes everybody else.” Markita Shoulders, restorative aide and CNA, has been at the facility for almost 14 years. “We’re family,” she said. “You got a dollar, I got a dollar. We call each other, we check on each other.” Shoulders said she’s kind of the social butterfly of the place, and makes sure to take new
employees under her wing to help make them feel at home. “I throw a little joke in with it,” she said. “I’m going to introduce them in a way that makes them say ‘They are friendly.’” Hartlage said although Floyd Memorial Hospital now owns the facility’s license, they still have the freedom to operate much like they did when the company was in private hands. “We still really operate like a small business,” she said. “Floyd has offered us some
communication as it relates to our quality assurance programs and working with them on decreasing rehospitalization and just really increased communication with our main referral sources. “It’s been a very good association because it’s left us with the small-town family feel but with additional support from the acute care facility.” Hartlage agrees that it feels like a big family working there.
Mary Robson, Fredericksburg, center right, a restorative aid of 15 years, calls a game of Bingo at Lincoln Hills Health Center in New Albany.
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“All of us spend so much time at work that you build relationships with the people you work with,� she said. She said fostering a healthy working environment is important to the success of the facility and the happiness of the residents and the close to 170 employees. “We care about what’s going on in their lives and we treat them with respect and dignity,� she said. “All of the department managers have an open-door policy. We’re all involved in the total operations of the facility, making sure that the care of the residents is what it should be and making sure that the employees have a good working environment so that they’re happy and productive. “We have very low turnover compared to the industry.� She said she they try to show their appreciation to employees as often as possible. They have a holiday party every year and a cookout every summer, but also do things on a regular basis throughout the year, like monthly luncheons to recognize each department. “We just try to recognize people for a job well done,� she said. “We’ll have a luncheon and give a gift and we’ll recognize the people that work in that department.� They also do things like buy ice cream for all
the employees on National Ice Cream Day. She said they also work to make schedules as flexible as they can. She said there’s a Monday through Friday crew and a weekend crew, but some people may find that it’s best for them to work a few doubles during the week to have less days. “And it can change within the continuum,� she said. “It might work in one part of your life to work Monday through Friday and then once your children are older and getting involved, they might need to switch over to the weekend-only program.� She said they also interview each resident at the facility every month, and their families twice a year. The primary goal of the interviews is to make sure residents are happy and comfortable in the facility, but they also ask if there are any employees who stand out, and then reward them if so. “I think as you reward individuals, others see that they’re getting rewarded and want to mimic their behavior,� she said. “I think it helps to grow your people.� Winnie Mickens, 90, has been a resident at Lincoln Hills since October 2014. She’s also president of the Resident Council and holds monthly meetings to allow others to voice their concerns, needs and praise.
She said she has felt very comfortable in the facility. “They’re really nice,� she said. They’ll say, ‘If you need anything, be sure to let us know.’ They have all been very kind. I haven’t had any problems.� Wynnona Lee, 71, has lived at Lincoln Hills since October. “It’s been great to me,� she said. “All the staff has been good, the residents are all friendly and it’s just like one big happy family.� Hartlage too said it’s the people, the residents and the employees that keep her there and very happy in her job and she feels lucky. “It’s a real honor every day,� she said. I feel like we’re all working to better their quality of life, to make them as happy as we can.�
ABOUT LINCOLN HILLS HEALTH CENTER
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SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 17
Small and Traditional at Idealogy Some good ideas never go out of style By Braden Lammers :: Photos by Christopher Fryer
A
Southern Indiana marketing and design firm is much smaller — but more successful — than it was a decade ago. The staff of five is part of what Idealogy’s employees cite as one of the reasons it is a Southern Indiana Business Source best place to work. A small staff allows all of Idealogy’s employees to communicate freely, often and allows each employee is involved in nearly every client’s marketing campaign. “We’re like our own little business family,” said Deanna Heuser, a designer
who has worked for the company for more than two years. Idealogy employed about 13 people before the recession, said Allen Howie, president and creative director. It now employs five people, including Howie. During the recession, Idealogy had record years and it has grown its revenues about 10 percent each year in the last five years, Howie said. SMALL STAFF, BIG BENEFIT In finding Idealogy’s employees, Howie subscribes to a simple notion: He wants a staff that gets along, are
good at what they do and want to do an honest day’s work for an honest day’s pay. “It’s a very old-fashioned notion, I guess,” he said. “It feels like the field of people who want to do that is smaller.” Finding that staff resulted in a workplace where everyone is accountable and everyone at the firm carries their own weight, he said. It also means that employees are often asked to be flexible in their daily tasks. Doing a little bit of everything is part of the appeal in her job, said Amanda
The staff at Idealogy Marketing + Design, from left, Kelsey Brown, Deanna Heuser, Amanda Kaiser, Allen Howie, and Tim Nash, are pictured in the Georgetown advertising and marketing company. STAFF PHOTO BY CHRISTOPHER FRYER
18 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016
Kaiser, who has been with Idealogy for two years. The small staff also creates an open environment where constant communication is key. Staffers holds daily morning meetings and often meets again at lunch to pitch more ideas, or simply to socialize. “Even if it is a dumb idea, we laugh at each other,” Kaiser said. It is important that employees aren’t hesitant to pitch ideas or express their opinions for fear of being shot down, she said. “I feel like I’m never afraid to voice my opinion,” said Kelsey Brown, who has been with the company since April. “If I have a concern, I feel like there’s always somebody here I can talk to about it.” A result of that communication is a workplace that is free of conflict. “We don’t have negative energy around here, ever,” Brown said. Tim Nash, who started at Idealogy in November, can already tell
it’s a very different work environment. “It’s a real comfortable place to come to, which at this stage in my career was as important as anything else,” he said. The intimacy of the organization also allows the staff to know what the others are doing for a client. Selective in its clients, too While growth is the plan for any business, Idealogy doesn’t just take on any client. “I love my clients,” Kaiser said. “Allen has done a really great job of creating good fits for us.” The firm looks for a client that, of course, generates income for the business, Howie said. Idealogy is also concerned with whether or not they like their clients as people, that their clients like Idealogy as people and respect what we do, he said. “When we’re careful about that and we listen to our instincts, we end up with a group of really great clients,” Howie said.
THE IDEA BEHIND IDEALOGY With a marketplace flooded with options, Idealogy’s approach to getting and retaining clients is, again, simple. “We are less interested in dazzling them,” Howie said of the company’s clients. “We always make sure the creative follows the mission and not the other way around. We really focus hard on, how can we make your business grow.” The concept, he explained, is to identify what the client does really well then use humor or creativity to help the business stand out. “There are so many people doing the same things now … branding is the one thing that allows you to sort of pull away from everyone else,” Howie said. He gave an example of a client that shouldn’t be fun at all, but has been great for Idealogy. Gastroenterology of Southern Indiana allowed Idealogy to use humor in marketing the business, Howie said.
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 19
An ad about colonoscopies that read, “It's not exactly a picnic for us either.” “When I talk to people out in the community, they recognize this practice now from their marketing,” he said.
ABOUT IDEALOGY •
Founded in 1997 in New Albany; relocated to 6500 Ind. 64, Georgetown two years ago.
•
Client list includes: Sullivan University, Road and Rail Services and Treyton Oak Towers.
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The company does everything from web design, to posters and brochures, to billboards, search engine optimization and social media for its clients.
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Website: idealogy.biz
NCL leader struck out on own with caring mission
President Kathryn Leamer, Charlestown, the owner and founder of Northern Continental Logistics, is pictured in the conference room of the freight management company located in downtown New Albany. STAFF PHOTO BY CHRISTOPHER FRYER
By Braden Lammers :: Photos by Christopher Fryer
N
orthern Continental Logistics’ downtown New Albany location looks like any other corporate
office. But the philosophy for Kathryn Leamer, President of Northern Continental Logistics, when she launched the company in 1998 was to make sure it didn’t follow the model of her previous stops in corporate America.
NCL’S OPERATIONS Northern Continental Logistics is a transportation management company that specializes in managing, auditing and negotiating prices for its clients. The company does not have any trucks or drivers that actually ship the products, but helps companies ship their products with carriers. “When the freight bills come … [we]
are auditing that bill to ensure the rate is correct,” Leamer said. “We find approximately 35 percent of freight bills are billed incorrectly, which can be a lot of savings to our clients.” Last year, she said the company processed 350,000 freight bills inhouse at the 19-employee company. Leamer said she tries to make it apparent that her employees are im-
20 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016
portant to her and her business. Ultimately, that care is what led those employees to nominate NCL as one of Southern Indiana Business Source’s best places to work. A NEW START Leamer previously worked in transportation and logistics for the Colgate-Palmolive Co. and Brown and Williamson. Raising a family and working in corporate settings in
has a destination-themed party. All of the efforts made by Leamer to ensure her employees enjoy the workplace are designed to show that they are valued. “Showing a little bit of time and concern goes a long way,” she said. “It also helps with employee retention. “What we do, it takes time to learn,” Leamer said. “So, [when] you’re investing your teaching and time to an employee, I want to keep them.”
It’s easier to follow somebody who’s willing to get down there in the trenches with you. the 1980s and 1990s was a challenge, she said. Working in corporate America, Leamer said it didn’t matter if you stated your child was sick or if the school was on a delay, if your day started at 8 a.m., you had better be in your seat at 8 a.m. When she struck out on her own, she wanted to make sure her employees had flexibility in the workplace and could take time off when they wanted. “Don’t tell me you’re sick and want the afternoon off, just tell me you want four hours off,” Leamer said. And if someone is out, it is common to see company executives, including Leamer, pitching in and doing that employee’s job for the day. “It’s easier to follow somebody who’s willing to get down there in the trenches with you, so to speak,” said Judi Davidson, and IT support specialist with NCL. “[Leamer] is not someone who sits in the big office behind the big desk and you’re afraid to look at them,” Davidson said. “In the real world, there are bad days. She is someone who you can go to if you have a problem.” WHAT’S THE PAYOFF? In addition to flex time, Leamer also tries to make NCL a fun atmosphere. “My philosophy has always been a happy employee takes care of, and creates a happy client,” Leamer said. “If you have a great work environment, and you care about them, that flows directly through to the client.” There are regular team-building projects such as chili cook-offs and team spirit days. NCL also offers a regular walking program. Pedometers track how far employees have walked, with theoretical treks to Hawaii, London or the Great Wall of China. Once workers reach their goal, the group
EMPLOYEE RETENTION From the start, Davidson knew NCL was different. She interviewed for a part-time data entry position at NCL, but did not get it. Leamer personally called Davidson to tell her she didn’t make the cut. “Of all the places I’ve ever applied, this is the only one that ever did that,” Davidson said. About a week later, Davidson got a call back from Leamer asking if she still wanted the job, as the person hired before Davidson did not work out. After about a year, Davidson began working full-time, and after another year, she was asked to transfer to the IT department. Before she started working for the company, she said she frequently switched jobs. “The longest I ever stayed in one spot was four years,” she said. Davidson has been at NCL for 12 years and said she can’t imagine working anywhere else. Lynn Crandall, an account manager with the company for more than 11 years, said NCL is such a great place because the people care. Crandall described an accident she had where she fell and broke her leg and ankles. She had to be off for three months.
A lot of companies would have said, “Well, I’m sorry,” and moved on, she said. But NCL told Crandall not to worry about her job; it would be there when she recovered. “That’s as good as gold to me, because they not only care about you as a person, they care enough to hold your job while you recover,” Crandall said. “It’s not just a place where you go in and put in your 40 hours and you go home.”
ABOUT NORTHERN CONTINENTAL LOGISTICS •
Founded in 1998
•
Located at 130 E. Main St., New Albany
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It’s a logistics firm that specializes in shipping rate negotiation, monitoring, supply chain visibility and invoice auditing.
•
Website: nclworldwide.com/ wordpress/
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 21
What makes IU Southeast great By Kirk Randolph As an employee of Indiana University Southeast, I have been blessed by the many people I have met in our community, the friendly and diverse students with whom my staff and I interact daily and the incredible faculty and staff who make a difference in my life and in the lives of so many others. IU Southeast was established as a regional campus of Indiana University in 1941. In 2016, IU Southeast will celebrate its 75th year as being an integral part of Southern Indiana. The campus’ vision statement embraces the aspirations we have for IU Southeast: IU Southeast will shape the future of our region by transforming good students into great leaders, one graduate at a time. It is amazing to me the number of our alumni who continue to shape the future of our region. More than 80 percent of our graduates remain located in our area upon graduation. Chances are that when you visit a doctor’s office in the community, one of our nursing graduates will be tending to your needs. Many of our area’s public and private school teachers as well as our public officials have taken classes or received their degrees from IU Southeast. IU Southeast is a primary driving force behind the intellectual, cultural and economic development of our region.
Chancellor Ray Wallace has made an immediate impact upon all of us at IU Southeast. His jovial and welcoming presence to students, to visitors on campus, and to others when he is out in the community have brought renewed excitement and enthusiasm about the roles we play as employees. He and his wife Susan attend many events on campus and in the community and have made Southern Indiana their home. The chancellor is often the first person to leave a performance at the Ogle Center so that he can meet audience members in our lobby and thank them for coming to campus. The support and encouragement the Ogle Center team receives from the chancellor and from all of our campus administration team is infectious. For several years, IU Southeast has seen a decline in enrollment which has put constraints on departmental budgets. The campus administrative team has been open and transparent with the employees and the community as to why enrollment has declined and has shared the funding priorities for the campus. This transparency and the willingness to try new ideas to grow our student population are making the state of the campus stronger
each day. The faculty and staff at IU Southeast care deeply about helping our students succeed and making their experience here extraordinary. Not only do they care about the students, they are quick to help anyone
on campus. The people here truly make IU Southeast one of the Best Places to Work.
Kirk Randolph is director of the Paul W. Ogle Cultural and Community Center at IU Southeast.
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 23
Rodefer Moss & Co. By Kim Naville :: Photo by Christopher Fryer
In
most traditional professional services firms, the majority of full-time employees spend more of their waking hours each week with their co-workers than with their own family. For this reason, it is extremely important to feel there is a sense of family in the work place. Rodefer Moss believes in that whole-heartedly. Whether an employee is experiencing a lifetime high or low, others are there to laugh and cry with them. The support system is solid and an ever-present help in time of need. Providing encouragement and constant training for employees allows them to build on their education and professional growth. The partners and managers at Rodefer Moss know hot to lead by example and that is how they are able to have
such a profound work ethic throughout the firm. All who are motivated and want to achieve excellence and be part of a bigger picture will flourish and grow. Rodefer Moss goes above and beyond most employers by doing special things for their employees, such as providing catered lunches at least twice a week during tax season, bringing in a massage therapist for complementary chair massages and a variety of trivia, bingo or other games for staff to participate in during tax season to break up the monotony. Complimentary fresh fruit, bottled water and soft drinks also are available to staff throughout the year. In addition, there are several scheduled fun days throughout the year to promote camaraderie and a sense of team spirit. Some
examples are: The annual RF Fun Day — held on a work day, the annual firm retreat and an annual holiday gathering in December. Eligible employees are provided benefits such as paid time off, 401(k) plan with employer match, paid holidays, paid life insurance, supplemental medical insurance and many other benefits. Flexibility is the key with today’s workforce, and is one of the most important benefits a company can offer its employees. Working from home is a reality as well as flexible full-time schedules offered to meet the needs of Rodefer Moss, while meeting the employee’s family needs as well. The cloud-based software and paperless environment utilized at Rodefer Moss allows this benefit for staff.
continued on page 34 24 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016
Michael Killen
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One Commerce Square, which houses One Southern Indiana, is pictured at 4100 Charlestown Road in New Albany.
One Southern Indiana By Suzanne Ruark :: Photo by Christopher Fryer
W
orking at One Southern Indiana has been an incredible experience for me. Not only do I feel truly appreciated by both my boss and co-workers, but I am also encouraged to bring new ideas to the table. I trust the people I work with to have my back and to want what is best for the organization, even when we disagree. We work very hard and are
proud of what we do, but also have a lot of fun and enjoy each other as individuals. Both the success of our members and growing our economy to the benefit of all Southern Indiana residents are at the heart of everything we do. We set goals as a team and as individuals and help each other achieve those goals — each of us giving our personal best.
It is inspiring to work with these people and it motivates me to do the bet I can do every day.
Suzanne Raurk is the marketing and communications Director at One Southern Indiana.
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The Dallas Group of America, Inc.
The Dallas Group of America, Inc. warehouse is pictured in Jeffersonville.
Dr. Black’s Eye Associates Optician Adrienne Harden helps client Sandy Naville pick out a frame for her prescription glasses in Dr. Black's Eye Associates lobby off Spring Street in Jeffersonville. Staff STAFF PHOTO BY TYLER STEWART
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 27
BOOK REVIEW
The Conscience Economy
Review by Paul Sanders
F
Image via http://stevenoverman.com/
or many of us, the 2008 recession left a lingering aftertaste of pessimism regarding the economy and particularly economic forecasts. Even with today’s hindsight, experts are strongly divided in determining what happened and how to prevent it from happening again. Many of the rest of us have simply adopted a “hope for the best” attitude. Steve Overman’s latest book counters the resonating doubt and raises a call for a new and powerful optimism. “The Conscience Economy: How a Mass Movement for Good is Great for Business” presents the idea that coming fundamental economic changes may help that pessimism disappear. Overman suggests that following the Great Recession, a global shift in economic thinking became pronounced. While technology was often the lynchpin for this shift, social connectivity and global interdependence drove new dimensions of consumerism. This shift is the next big step forward in driving business. “Prioritizing the common good as a core purpose ... is spreading through every realm of human endeavor, from politics to health care to international policy to finance,” Overman says. “But it is business that will be both most affected and simultaneously the most powerful actor and influencer.” Every business wants to be a part of the next big thing, he says. The Conscience Economy is it, the author states simply. Overman suggests nine emergent beliefs and motivations currently driving the conscience-driven economy: Collective-Self Actualization: “What’s good for we is good for me.” Optimism: “We can create and better world. So we will.” Fairness: “Everyone has a right to live a great life. Everyone.” Well-Being: “We expect to be and feel healthy in body, mind and spirit.” Transparency: “We crave knowing everything, so if you don’t tell us, we’ll find out for ourselves.”
Authenticity: “We see right though fake, so keep it real.” Disruptive Irreverence: “Let’s turn it all upside down.” Sensible Environmentalism: “If it’s bad for the planet, it’s not for us.” Global Citizenship: “We are part of something bigger.” What is radically different today is not one thing but many. Expansive population growth, global human rights movements, environmental conditions and especially technology are all drivers. Together they create what Overman calls a “major conflux” — a coming together of forces that are leading toward “a tipping point of significant, possibly cataclysmic change.” Overman urges companies to build a “telescope,” of awareness in order to gain insight into these coming market factors. He encourages individuals and teams to synthesize observation with intuition to discern patterns that could develop into business activity. That is step one. To thrive in the Conscience Economy, a business must adapt and transform what it offers, how it produces, operates, sells and engages others. Transformation will become a core competency of successful businesses. Adapting to the changes of the Conscience Economy requires commitment to make changes on many levels. It is not enough for businesses to tell employees to change. Leadership must invest in envisioning the future in ways that will create awareness across the organization, Overman says. The world is shifting so rapidly that the insights and foresights of every employee are needed in the business. The role of brands will become highlighted in this new economy, the author notes. Brands are becoming more than indicators of price and efficacy. Brands trigger feelings — a gut response to everything the consumer knows about a particular company. As 80 percent of decision-making is emotional, branding plays the most important role in
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Leadership must invest in envisioning the future in ways that will create awareness across the organization, Overman says. The world is shifting so rapidly that the insights and foresights of every employee are needed in the business. creating new business. In the Conscious Economy, consumers literally wear their values on their sleeves and in their pockets and on their kitchen tables. Ignoring the impact that our purchasing has on others — including those producing the goods — and the planet will become more difficult as real-time information highlights these effects. If a product or service, the history of the company’s management, unethical or discriminatory practices creates negative implications, more and more consumers will reject them. The Conscience Economy is no guarantee, Overman says. We have to want it as well as work for it. The alternative, a lack of vision, growing concern about potential global meltdowns and economic collapse stands in stark contrast to the growing trend for an enlightened and encouraging world. Overman is an optimist. “Because we’re social by nature, humans have a tendency, in the end, to make life better for one another, not worse. We’ve never had a better opportunity to do just that on a mass scale than we do right now. And thanks to the unstoppable conflux, it’s never been more urgent.”
Paul Sanders is an award-winning writer who worked for the past
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MARKETING
Take note:
People will notice your behavior By Vern Eswine :: The Marketing Company :: marketingcompany.com
T
o say that change is moving rapidly would be an understatement. However, to be able to sit back a moment and think about the changes you are making and the decisions that follow could save you a lot of problems later. For instance, when it comes to your marketing efforts, many if not most have adopted social media, but few have developed a real plan that thinks through the process. What results is messaging that could backfire because little or no thought has been put into it. This results in links and videos posted that are from a competitor or are questionable making those following you scratch their heads. We also see people using Facebook and other media as a place to rant and rave about this or that not taking in consideration the impact it may have on the customers, clients, friends that may feel differently. Don’t get me wrong — I am not saying don’t take a stand on an issue, just realize that when you do that on social media there
could be some resulting collateral damage. Another marketing technique that many are using today is wrapping or placing marketing messages on our cars and trucks. This is usually the company’s logo and the web address or phone number. While this becomes a great rolling billboard, it also lets people know who to call when you cut them off in traffic, make a few hand gestures, etc. Recently, I was coming up to a stop sign as a trash company truck was pulling up from another direction. Not only did they not stop at the stop sign, they forced me to stop or take the chance of being hit and started honking their horn at me like I was the one causing the problem. Just as they turned, there was their company logo emblazoned on the side of the truck. Will I be calling this company or even consider them as someone to do business with? Probably not. My point in all of this is that while we look for ways to get our name out and make a statement we also need to take into
consideration the impact those decisions are having on our business, good and bad. Cutting people off in traffic, honking our horns or making gestures while our logo is screaming at them will probably not make the best of impressions. Just as calling people idiots, stupid or lesser things on social media like no one is listening can also have a negative effect. So, to put it in simple terms, be responsible. If you are using social media or putting your company name on your car or truck as part of your marketing efforts, consider changing a few things. Take time to plan your messages, think before you speak out, slow down and think before you do something you’ll regret in traffic and just remember — people are watching and they know where to find you.
Vern Eswine has been involved in leadership, marketing and business consulting for more than 30 years and is president of The Marketing Company, a branding firm located on Spring Street in New Albany.
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30 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016
HUMAN RESOURCES
Mary had a little ... diversity By Carol Dawson :: EEO Guidance, Inc. :: EEOGuidance.com
M
ary’s business had a little diversity, they no longer were white as snow, and everywhere that Mary went, inclusiveness wanted to go. Inclusive followed Mary to work one day, which wasn’t against the rule, the workers enjoyed the way inclusiveness soon became very cool. Using a child’s poem may seem like an unusual way to explain diversity and inclusion; however, by 2015, explaining these two terms really should be as simple as child’s play. If by now the meaning of diversity has not slapped you upside your head like a V-8 commercial, there isn’t enough space in this column to provide the help needed. That leaves the opportunity to further explain what the somewhat abstruse word, “inclusive” means and how it teams up nicely with diversity in the workplace. Diversity is what most businesses already have in the workplace, and being inclusive is what those businesses should be doing with their diversity. The brief definition of diversity is “the condition or fact of being different,” while being inclusive is “to be open to everyone: not limited to certain people.” Just as each employee will look at diversity through different lens, how to respond to co-workers perceived to be different will typically be filtered through the same lens. While not having a diverse workforce could possibly lead to discrimination, guaranteeing that a workplace is inclusive is less of a legal concern and a bit more of a challenge for many businesses. The need to create an inviting climate for all workers within the business community is a piping hot topic that is not one-size-fits-all. The act of inclusion has always been an active part of my life. Military brats quickly
learn inclusiveness or lack thereof means either we have friends or we do not. While easily inviting myself into the street kickball games, I noticed others seemed incapable of asserting themselves into the group. These children waited for the invitation and often it never came. Seeing this exclusion was always uncomfortable. With each move to another home, I increasingly recognized the need to extend a hand to lift others into the game as being a necessary act for some … an act of inclusiveness. In the workplace, this act of being inclusive is particularly important to the engagement and retention of diversity in the workplace. When employees believe being themselves in the workplace may be detrimental, they often check out. The result can be increased absenteeism, decreased productivity, low morale, and ultimately, hiring and retention obstacles. It then becomes apparent that having an inclusive environment is as necessary as having a diverse workforce. Management should set the tone when seeking an inclusive environment. Clear and open lines of communication are vital as the first step. Encourage and allow employees to learn about their differences. Below are suggestions for creating an inclusive workplace: • Review policies/procedures to ensure they are not exclusive of groups of employees. • Provide opportunities for employees to learn about one another, including their cultural backgrounds and interests. Developing relationships through encouraged understanding and trust helps to cultivate inclusion. • Arrange for opportunities for employees
•
• •
• • •
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to connect during and after work (form sports teams, participate in cultural or special events of interest to employees, etc.). Invite all employees to attend. Ensure there are clear policies for dealing with discrimination (including bullying and harassment) and make it a zero tolerance rule. Train management re: these policies. Review training and development polices to ensure all employees are provided opportunities for future development. Consider providing time off for culturally significant observances, celebrations and religious holidays. Offer a flexible day for employees to observe culturally or religious dates. Create multicultural calendars to avoid scheduling conflicts between business meetings on major cultural holidays. Actively involve all employees in decision making – give employees a voice in ensuring business success. Discourage old school supervision methods of divide and conquer and encourage management styles promoting positive and respectful behavior. Being flexible in a consistent manner is the best approach to creating a team of employees who will routinely extend their hands to invite others into their kickball games.
Carol A. Dawson, formerly the Area Director for the US Dept. of Labor/OFCCP, is president of EEO GUIDANCE, Inc., a national EEO/AA/diversity training and consulting business in Jeffersonville. Send comments to cdawson@eeoguidance.com
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 31
ECONOMICS
A year in review
Louisville Metro
Labor Force, Employment, and Unemployment Source: FactSet
Declining Labor Force
By Uric Dufrene :: IU Southeast
S
outhern Indiana — Clark, Floyd, Harrison, and Washington counties — produced the most impressive job quarter in the past 15 years. During the first quarter of 2015, the region added 2,913 jobs year-overyear. Given the size of the regional economy today compared to then, this was likely the highest year-over-year job increase. Administrative, support and waste and remediation services led job gains, followed by manufacturing. About 2,000 of the job gains occurred in Clark County, reflecting the growth of River Ridge Commerce Center. While the administrative and support sector has average weekly wages lower than the county average, growth of this sector can be viewed favorably for long-term growth because it includes occupations that support overall business growth. So an expanding administrative sector would portend that industry is gearing up for growth beyond the present. This is consistent with the development that we are expecting due to River Ridge and the east-end bridge project. Manufacturing also showed solid gains. This is encouraging for Southern Indiana due to higher average wages, and the considerable effort
devoted to growing manufacturing. Economic development leaders continue to devote considerable effort to the growth of manufacturing. So the positive number is certainly a welcome. A BREWING CHALLENGE
Moving forward, one of the major challenges will be the filling of those manufacturing jobs. Anecdotal reports across different companies point to the difficulty in currently filling manufacturing positions. The continued growth at River Ridge and the pending growth due to the east-end bridge will only exacerbate the problem. It will be one of the most significant challenges of economic development. The metro area labor force is smaller today than a year ago, approximately down by 10,000. In fact, the most recent labor force number for the metro area puts the size of the region’s labor force at a level that was equivalent to that which existed in 2010. Employment, one of two components of the labor force, is only equivalent to the level that existed a year ago. As the economy continues to heat up, this developing trend will make it increasingly difficult to fill positions. The emerging economic growth in Southern Indiana could face significant headwinds if the region’s labor force fails continued on page 34
SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016 :: 33
Declining Employment
Economics: A year in review continued from page 33
to grow at a rate necessary to support economic expansion. LOUISVILLE METRO
Job growth for the metro area has softened compared to the impressive gains of the first quarter. Latest numbers show that 15,000 jobs have been added compared to a year ago, but this is down from the 26,000 year over year gains during January of 2015. This slower growth occurred due to a slowdown in the largest sectors for Louisville Metro. Retail, leisure and hospitality, and manufacturing all saw a slowdown in job growth from early in the year. The most recent numbers are now pointing to an upturn from the trough that occurred in the middle of the year. QUALITY OF PLACE GROWTH
Economic growth varies from region to region. Some regions are able to grow due to natural resources; other regions might have a highly educated workforce. Regardless of the reason, the labor force that supports this growth is the common denominator across all areas. How does Southern Indiana grow a labor
force capable of supporting the growth at River Ridge? Certainly, labor will commute from Kentucky, and the opening of both bridges will make Southern Indiana more accessible. That solution will only partially address the challenge. For example, the total number of unemployed in Louisville Metro is just under 30,000, and 30,000 employees in 10 years is not out of the question. So attracting workers from outside the region is essential if we expect to achieve the growth in Southern Indiana that is expected. This is precisely the reason why quality of place is so important. Southern Indiana competes with other economic regions for workers just as businesses compete for customers. The amenities and quality of life that are part of any region are important characteristics that talented workers consider in locating. Regions that have an attractive quality of place will be more successful in attracting the talent and the labor force required to support high performing economic growth. Uric Dufrene is Sanders Chair in Business and Executive Vice Chancellor for Academic Affairs at Indiana University Southeast.
Rodefer Moss & Co. continued from page 24
Community involvement and giving to those who are in need or less fortunate is strongly encouraged. This fact was proven recently when Rodefer Moss was recognized as one of the top 10 small companies in Business First’s 2015 List of Corporate Philanthropists. Metro United Way, American Heart Association and The Salvation Army are just a few on a long list that RM supports. As employees move forward in management, they are encouraged to become more active community leaders by becoming board members for community organizations and volunteering in the community. The partners want their staff to know the importance of giving back, and allow them to do so on Rodefer Moss’ time. Combining elements such as a sense of family, mentoring and community awareness has been the perfect formula to make Rodefer Moss the best place to work.
Register March 7-April 29 for Leadership Southern Indiana’s DISCOVER Class of 2017! If you are a local professional seeking partnerships and growth in Southern Indiana, please join Leadership Southern Indiana’s 9-month professional leadership program championed by the region’s leaders to build connections, enhance community activism, and build a better understanding of regional history and happenings. DISCOVER begins with a retreat in August followed by once-a-month programming from September to May.
Tiffany Cole Hall DISCOVER Class of 2016
“Discover has allowed me to step out of the daily operations of my leadership role and have an opportunity to learn from other community leaders, learn about the community we serve, and learn about myself. The experience has been amazing and has already made me a stronger, more intentional leader.” –Tiffany Cole Hall, DISCOVER Class of 2016
Contact us: www.leadershipsi.org | 812-246-6574 | info@leadershipsi.org
34 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY/FEBRUARY 2016
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LABOR LAWS
Is your company taking advantage of
Employment Arbirtration? By Todd Logsdon and Lauren Claycomb :: Fisher & Phillips, LLP :: laborlawyers.com
Litigation of any dispute, especially one involving an employee, is costly, timeintensive and altogether burdensome for employers. In recognition of this fact, many employers now require that their employees sign mandatory arbitration agreements, in which the employee and the company mutually agree to arbitrate any and all disputes arising out of the employment relationship. Arbitration has been on the rise in recent
years, but many employers may wonder, what are the advantages of arbitration as opposed to traditional litigation? Also, are there any limits to the types of employment-related claims that may be subject to arbitration? THE BENEFITS OF ARBITRATION.
Arbitration offers employers and employees many advantages. Arbitration provides a
faster resolution process that allows cases to progress more quickly. Court cases can last for years whereas resolution in arbitration is usually much faster. Employees can seek the same remedies in arbitration as they would in a court of law, but the process is more informal and generally friendlier to individuals who are not accustomed to participating in litigation. As an added benefit to employees, many
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arbitration policies provide that the employer will pay the costs for the arbitration proceedings (which, on the whole, are substantially less than the costs associated with litigation). And in contrast to traditional litigation, the parties mutually participate in selecting an arbitrator rather than leaving their chances to a judge and jury. Finally, arbitration is generally more confidential than the court system. Lawsuits are a matter of public record, but arbitrations are not. Prudent and careful companies appreciate the advantages of this private method of dispute resolution, as the terms of the parties’ arbitration award usually cannot be disclosed to the public. IF YOUR COMPANY DECIDES TO ADOPT AN ARBITRATION POLICY, WHAT ARE THE LIMITS (IF ANY) ON THE ENFORCEABILITY OF ITS PROVISIONS?
Indiana employers may be hesitant to adopt arbitration policies in light of some courts’ intense scrutiny of arbitration agreements generally, and class action waivers specifically. But recent decisions from the
U.S. Supreme Court make it easier for employers to implement and enforce arbitration agreements. The Supreme Court decided most of these cases outside of the employment context, but the Court’s decisions have important implications for employers using mandatory arbitration agreements in employment contracts and other agreements with employees. THERE IS A STRONG POLICY IN FAVOR OF ARBITRATION.
The Supreme Court recently reiterated the strong federal policy in favor of arbitration in DirecTV, Inc. v. Imburgia, No. 14462 (Dec. 14, 2015). In that case, the Court rejected a California state court’s decision that held DirecTV could not compel arbitration of its customer’s claims because the company’s arbitration agreement violated California law. The Supreme Court found the California court was wrong to apply California law in interpreting the parties’ arbitration agreement because federal law preempted the state’s law.
This decision provides further evidence of the Supreme Court’s intent to strengthen the federal policy favoring arbitration. EMPLOYERS CAN USE ARBITRATION AGREEMENTS TO LIMIT CLASS ACTIONS.
In recent years, many employers have included class action waiver provisions in their mandatory arbitration agreements. Under such provisions, employees waive their right to bring any litigation as a class or collective action. In other words, an employee must pursue his or her employment-related claims individually, as opposed to collectively with other current or former employees. This is a substantial cost-saving measure for employers, as class actions (including actions for wage and hour violations) can morph into a million dollar liability for employers when attorneys’ fees and double damages (which are permitted under Indiana law for some violations of the wage and hour laws) are added to the mix. The Supreme Court upheld the enforceability of class action waiver provisions in continued on page 38
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AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011), and again in American Express Co. v. Italian Colors Restaurant, 133 S. Ct. 2304 (2013). These decisions came as welcome news to employers, as many employment-related class actions have their genesis in wage and hour laws. Consider, for example, the class action lawsuit recently brought by Uber drivers in California. The drivers claim the company allegedly misclassified them as independent workers under California law. Fortunately for Uber, the potential class of drivers was somewhat limited because many of the drivers had signed arbitration agreements with class action waivers. The individuals who signed the waivers can still bring individual actions against the company, but some employees who would willingly jump on the class action bandwagon may be less likely to pursue their own actions against the company, thus resulting in fewer claims asserted against the company. WHAT DOES THIS MEAN FOR INDIANA EMPLOYERS?
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Recent U.S. Supreme Court decisions should come as welcome news to employers who require employees to sign arbitration agreements as a condition of employment. These new cases should also encourage employers who do not currently maintain such policies to consider implementing them with their current employees and new hires. If your company has a policy in place or is considering one, consult with legal counsel to ensure the agreement is compliant with existing law. Finally, remember that an arbitration policy is not a panacea for all employment-related disputes. Employees can still pursue certain claims outside of the arbitration context, including workers’ compensation claims and discrimination claims filed with the EEOC or relevant state agency. However, an arbitration policy is an effective means of resolving employment claims without the expense and uncertainty of a jury trial.
Todd B. Logsdon is a Partner in the Louisville office of Fisher & Phillips LLP and is licensed to practice law in Indiana and Kentucky. He practices exclusively in the areas of labor and employment on behalf of employers, with a particular emphasis on discrimination, wage and hour issues, FMLA and OSHA issues. Todd may be contacted directly at 502-561-3971 or tlogsdon@laborlawyers.com. Lauren M. Claycomb is an Associate in the Louisville office of Fisher & Phillips LLP and is licensed to practice law in Indiana and Kentucky. She practices exclusively in the areas of labor and employment on behalf of employers. Lauren may be contacted directly at 502-873-4002 or lclaycomb@laborlawyers.com.
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