Employee engagement/ retention

Jennifer Abruzzo, the National Labor Relations Board’s (NLRB) General Counsel, is continuing her campaign against non-compete agreements. She just issued a memo announcing her office will seek more remedies for employees who are required to sign non-compete agreements. This follows previous statements in which she said non-compete agreements, which affect about 20% of US workers (30 million people), are unlawful. She has expanded her argument to include “stay-or- pay” provisions, stating they restrict workers’ job opportunities which (somehow) discourages unionizing. Non-Compete Agreements The NLRB is currently considering the legality of non-compete agreements under the National Labor Relations Act (NLRA) in a case involving an Indiana HVAC company. In a 2023 memo, Abruzzo explained why overbroad non-compete agreements are unlawful. She explained they hinder an employee’s ability to exercise their rights under Section 7 of the NLRA, which protects employees’ rights to take collective action including unionization. Abruzzo’s agenda has faced setbacks. In April 2024, the Federal Trade Commission (FTC) largely noncompete agreements, with some exceptions, however the ban was subsequently

In recent years, workplace discussions around diversity and inclusion have gained unprecedented momentum. Unfortunately, one facet of this multifaceted issue often gets overlooked: ageism. By dispelling negative ageist cliches, we not only uphold the dignity of older workers, a fundamental aspect of respect, but also unleash the full potential of an experienced workforce. This shift in perspective can lead to a more inclusive, dynamic, and productive work environment where the wealth of knowledge that older employees bring is embraced and celebrated. The Reality of an Aging Workforce The statistics are clear 1. By 2031, workers aged 55 and older will make up over 25% of the U.S. workforce. Additionally, 41% of American workers plan to work beyond 65. These figures underscore the urgent need for a shift in perspective, as many companies overlook the wealth of experience and knowledge this demographic can bring to their team. The Impact of Negative Ageist Cliches Ageism, stereotyping, prejudice, and discrimination against individuals or groups based on their age are particularly pernicious in the workplace. Older workers often battle stereotypes that paint them as being out of touch, slow to adapt to new technologies, or less productive than their younger counterparts. These misconceptions can have profound effects for an individual and lead to an imbalance of problem-solving wisdom.  Bias of any kind will hurt the organizational bottom line.  Without a diverse workforce, an organization has too much of a good thing.  Leaders must be cognizant of the potential loss of valuable institutional knowledge, a crucial factor in organizational continuity. 1. Detriment to Team Member Morale and Motivation Persistent undervaluation of older workers can significantly impact their motivation and engagement. When employees feel dismissed or underestimated because of their age, morale, productivity, and ability to connect with their teams, decrease. This is harmful to both the individual and the organization. Age discrimination is real 2. Two out of three workers between ages 45 and 74 say they have seen or experienced age discrimination at work, and job seekers over age 35 cite age discrimination as a top obstacle to getting hired.  If you happen to work in the high-tech industry, your chances of experiencing age discrimination are even higher. 2. Lost Opportunities for Knowledge Sharing One of the most significant losses when older workers are sidelined is the missed opportunity for cross-generational knowledge transfer. Seasoned employees possess a wealth of experience, insights, and skills honed over years of service. This depth of knowledge is invaluable, particularly when paired with the fresh perspectives and tech-savviness of younger employees, creating a powerhouse of innovation and problem-solving capabilities. 3. Diminished Diversity and Inclusivity True diversity and inclusivity extend beyond ethnicity, gender, or sexual orientation and should encompass age.  A workforce that appreciates and leverages the strengths of employees across the age spectrum is more representative of society and is better positioned to respond to the needs of a diverse customer base. Older Workers: A Valuable Resource 1. Rich Experience and Expertise Older workers bring an unparalleled level of expertise and experience. Their years in the workforce equip them with a nuanced understanding of their industry, a comprehensive knowledge of company history, and a network of connections that can be leveraged for strategic advantages. 2. Stability and Reliability Older employees can often be depended on to present greater stability and reliability than their younger counterparts. They tend to have lower turnover rates, which translates to reduced hiring and training costs. Their dedication and loyalty to their roles contribute to a stable workforce, which is critical for long-term planning and growth. 3. Mentorship and Leadership Older workers are invaluable resources for mentorship and leadership within organizations. Their insight and guidance can help nurture the next generation of professionals, ensuring a legacy of knowledge and skills that support the company’s future success. In Conclusion, Embracing an Age-Diverse Workforce is a Competitive Advantage As the American workforce continues to work later into life, employers must make a concerted effort to create a workplace that values and promotes age diversity. Debunking negative ageist cliches and recognizing the invaluable contributions of older workers are essential steps toward building more inclusive, innovative, and successful organizations. By tapping into unique strengths and perspectives across the employee age spectrum, companies can enhance their competencies and competitiveness and foster a culture of respect and appreciation for a workforce rich in diversity of knowledge.   Citations Article by Growthspace: The hidden potential of older workers: A strategic advantage

What is the cornerstone in the strategy for scaling and preparing your business for the future, to grow, to thrive, and to build a legacy that lasts? That’s right – Regular Progress Check Meetings! Think of them as your business’s GPS, helping you navigate the winding roads of growth and strategy. These are not the same conversations as the old water cooler chats.  These are checkpoints along the journey to ensure your highly regarded employees and associates are engaging purposefully and meeting the expectations of their roles. Why are these meetings essential? Here’s the breakdown: Tracking Growth: Stay updated and informed about your Team’s collective journey to success. Ensuring Alignment: Everyone must know not only the what but the how and why behind their goals, ensuring harmony as you move forward collectively. Unify Direction: This is where your team member’s hard work shines. Each team member’s contribution is crucial and should enable the entire team to move in sync towards a common goal. When every team member is crystal clear about their role, that’s when the magic happens. That’s when a small business is not just a player, but a force to be reckoned with.  Use a Progress Check Meeting to fuel team participation and guide your business growth.  Team participation means understanding each role and its impact, assuring that every step takes us closer to our goals. Remember, in your team every voice is influential, and your team’s ideas, feedback, and perspectives are the answer to the next level of greatness and success in your business. With the guidance of Maria Forbes and FIREPOWER Teams, you can empower your team to drive sustainable growth.  Let’s Connect!  

During my first visit to one factory, I quickly noticed on a wall in the lobby a collection of cards with employee suggestions – normally a good sign of a facility’s commitment to continuous improvement and employee engagement. A closer look revealed the opposite – improvement ideas that were months and even quarters old without any response or follow up. While creating that program was a good idea, the lack of follow through likely discourages employees from contributing further suggestions. Unfortunately, that company is not alone. This all-too-common practice is highlighted in the article “Companies Often Solicit Employee Feedback but Seldom Act on It” (in the May-June 2024 issue of Harvard Business Review) which discusses a 2023 Gartner white paper “Employee Engagement: Close the Action Gap to Drive Business Outcomes” by Jen Priem. Employees want to help. In fact, “40% of survey respondents said they would rather have difficult processes fixed than receive more career development opportunities”. That interest is not always matched by a company’s efforts. Aside from the missed opportunities in quality, cost, efficiency, and safety improvements, this also negatively impacts employee engagement: “only 34% said they thought their companies would act on feedback they provide” so why would they take the time and effort to participate? Setting up an effective employee suggestion program is more than placing a box for suggestions or creating an internal software tool. To be successful, the company needs to dedicate management effort and commit to a timely, closed-loop initiative. A cross-functional management level team should be established to review the qualifying ideas. This does not need to be top management but should be leaders high enough such that they can approve and implement many ideas themselves and have ready access to higher level managers to discuss larger improvement suggestions.  A coordinator, perhaps someone from the quality department or in an administrative role, can be designated to facilitate the program – helping create the methods for employee suggestions, collecting the inputs, and maybe conducting a first level sort of ideas (the entire review team does not need to spend time on the suggestion to paint the bathroom a different color!) This team should meet frequently (perhaps monthly) to evaluate and prioritize the employee suggestions that were submitted since the last meeting. Plans to implement or investigate the most valuable ideas should be developed. Someone on the team should be designated as a sponsor of each such idea to obtain updates and ensure progress even if the responsibility for investigation or execution is handed over to a functional area leader. Often, a team of employees from the impacted area(s) will be created – this helps make use of their more detailed knowledge and improves buy-in to the solution. Whenever possible, the employee who suggested the improvement should be included on this implementation team. There are different ways to celebrate the improvement ideas that were selected for implementation – monetary and non-monetary awards, inclusion in the employee’s performance review, public recognition, plant competitions, etc. The choice will depend on the company’s and location’s culture. Communication is key to a successful employee suggestion program. Leadership should consistently share its enthusiasm for the improvement idea program and what type of ideas are desired (not that bathroom color suggestion!). Leaders can also show their support by attending events associated with this program. Regardless of whether a valid improvement suggestion was approved for further action or not, it is important that a member of the team (for example, the facilitator) always provides prompt feedback to the employee on the decision and why that was the determination. This closed loop aspect is essential if the firm wants to continue receiving, and benefit from, employee ideas. Are there other sources for great ideas beyond your employees? Stay tuned….   Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive.  He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.

“I should demote myself!” joked the head of sales. “It looks like I am better at selling than at managing a sales team.” We were looking at his team’s individual sales numbers. He was selling more when he was a regular salesperson than his whole team today. We too often promote the wrong person into a senior leadership position. The reason is: the promotion criteria we use are poor predictors of people’s leadership potential. How can you better identify potential senior leaders and avoid painful mistakes – so you can grow faster and with less pain? Why are we so bad at promoting the right people into leadership positions? We are all biased. We tend to overestimate specific traits we mistakenly believe indicate leadership potential. Common biases include: Past successes. Unfortunately prior performance is not a good predictor of leadership performance. 

Onboarding isn’t just about shaking hands on day one or drowning your new hires in an ocean of paperwork and procedural manuals. FIREPOWER Teams is here to help you find and grow the right team to fuel success and sustainable growth in your small business. Reach out to Maria Forbes and discover the potential of people-powered change in your organization.

Dealing with  COVID fatigue unites business owners. If that sounds strange to you, let me make my case. I’m not doing this to whine, but I want business owners who don’t have an existing support structure to know that they aren’t alone. I facilitate several peer groups of business owners. For decades, we’ve met monthly to discuss trends and issues in our businesses. It is typically a lively roundtable. Hiring, termination, customers, vendors, regulation, new initiatives, and finances present themselves at most, if not all meetings. The First Wave At the beginning of the pandemic, we increased our meeting frequency from monthly to weekly. It really helped with the news pummeling us every day. First, we had sanitation and control of infection. What should we do if an employee was diagnosed? What were the guidelines, or more accurately, the current guidelines regarding quarantine? How serious was this? Opinions ranged widely on the severity and need for action. Then came the lockdowns. Who decided that this was within the power of a mayor? Like so many regulations, it seemed to come without any discussion of the impact on small businesses. We never “blamed” the medical community. They were told to recommend the best way to slow the virus’ spread. They did. Our meetings became both strained and strange. We started living in two worlds. Some businesses were decimated, others were setting sales and profit records. The Light in the Tunnel Then came the relief bills. How did FFCRA work? Who has the poster? Will our employees all choose to go home at 2/3 pay? (Not very many did.) We traded policies and memos from HR advisors, CPAs, and law firms. Then the CARES act. BAM! $2 trillion flushed through the economy like a transfusion. We didn’t talk much about EIDL. The need to pay it back from PPP proceeds and running out of money early on focused us all on the Paycheck Protection Program. Of the 28 participants in the groups (myself included,) all 28 applied for and received PPP funds. We all shared application information and intelligence on which banks were handling it best. Again, we had concerns that the $600 unemployment bonus would dry up the recruiting market. It made things a bit more challenging, but not insurmountable. Most folks seem to prefer continuing employment. People who seek to milk the benefits to the last dollar aren’t the ones we wanted anyway. Of course, watching the collapse of the antiquated government infrastructure for unemployment may have influenced applicants as well. We traded information on remote working. How to keep employees engaged? Tips on contests, productivity tracking, and virtual technology. Those in essential industries never stopped working (see my post on 

Work from anywhere has been a necessity, an epithet, an obstacle, and an opportunity over the last 3 years. To paraphrase Aristotle’s axiom about Nature (“Horror Vacui”), business abhors a vacuum. Where one occurs, it is quickly filled. Work from anywhere started as a COVID-induced necessity. During the lockdowns of 2020-2021 (and longer in some places) we all had a crash course in video calling, VPNs, and virtual meetings. Employees quickly expanded the definition of anywhere. They tired of shunting the children off to a bedroom during conference calls, or using office-like backdrops to hide their kitchen cabinets. Soon they began changing their backgrounds to something more aspirational, like a mountain cabin or a scenic lake. From there it wasn’t much of a leap to make the mental shift from a make-believe environment to a physical one. Pretty soon employees were calling in from real mountain cabins. In many cases, they shifted to someplace where the cost of living was much lower than in their former metropolitan workspace. Work from Anywhere as an epithet and an obstacle As employees moved further afield from their office environment, bosses began to sound off. “We aren’t going to pay Los Angeles wages to someone who has a Boise cost of living,” was a commonly heard complaint.  Most put up with it because qualified help was getting harder to find. Hiring remotely was too hard a new skill to master. The complaints of employers grew louder as they began to ask employees to return to their former location of working activity. They made arguments about deteriorating corporate culture or a lack of mentoring opportunities. At the same time, stories surfaced about workers who were getting full-time paychecks from multiple employers, or who were “quiet quitting” by doing as little as possible. The “Great Resignation” forced many organizations to put up with it. If you wanted to keep employees, you needed to accommodate their demands. Then the work-from-anywhere poaching started. If an employee could do the job from a thousand miles away, why not just hire people from a thousand miles away? Now recruiters could dangle Los Angeles wages at candidates from Boise. Many employers saw work from anywhere as a curse costing them their best talent. Work from Anywhere as an Opportunity But as I said at the outset, business abhors a vacuum. Every action has a reaction. When the job can be done from anywhere, does that mean anywhere? If the higher cost of living centers can fill their needs by hiring people who are accustomed to earning less, why shouldn’t employers look at those candidates before the local talent? The Internet allows almost-instant communication across countries, what about across oceans? In the last few months, I’ve worked with employers who are hiring accountants in India, staffing recruiters in the Philippines, programmers in Argentina, support techs in Colombia, and screening nurses in Nicaragua.  None of these employers are multinationals. Each one fits the SBA’s definition of a small business. Their new employees are educated, English speaking, have the same hours as the employer, and are thrilled for the opportunity. Some are hired directly through a local placement agency. Others work for an organization in their home country that makes them exclusive to the client and promises to replace them if needed. Most of the wages appear to be about 50% more than the same job would pay in the country of residence, and roughly half of what the position in the U.S. would cost. Business has once again filled a vacuum. I wonder what is next?   This article was originally published by John F. Dini, CBEC, CExP, CEPA on

The national trend to protect temporary Laborers continues. This past August, Illinois passed legislation that expanded its Day and Temporary Labor Services Act. The amendment became effective on August 4, 2023 (immediately upon its signing). The Trend New Jersey, California, and Illinois have all passed laws that provide protections to temporary Laborers. Among the varied purported goals of these statutes, all the laws have one thing in common: they disincentivize temporary work arrangements in favor of long-term employment options. The Illinois Day and Temporary Labor Services Act The Illinois Day and Temporary Labor Services Act (the “Act”), which applies to all temporary laborers except for those in clerical or professional roles (“Laborers”), originally passed over twenty years ago. Since then, the Act has undergone a series of amendments that have slowly expanded the Act’s reach. This most recent amendment takes another large step towards removing the pay advantage of using temps. The Act grants “Day or Temporary Laborer[s]” a series of rights that limit the pay advantages of using temps and increase the administrative burden of using temps. Some of those rights are new and some are old. Here are the key provisions:   Employment Notices (eff. 6/1/18) When a day and temporary labor service agency (the “Agency”) sends Laborers to jobs, they must give each Laborer a statement with specific information. This includes the Laborer’s name, details about the job (such as their function and what equipment is needed), the wages offered, the job location, transportation terms, and whether meals or equipment are provided. If a Laborer is on the same job for more than one day, the Agency only needs to provide this information on the first day or if there are changes. If a Laborer is not assigned a job for the day, upon request the Agency must provide a confirmation, signed by the Agency, stating that the Laborer sought work.   Right to Refuse Assignment to a Labor Dispute (eff. 7/1/2023) An Agency cannot send a Laborer to a place where there is a strike, lockout, or other labor dispute unless they give the Laborer written notice in a language the Laborer understands. This statement must inform the Laborer about the labor dispute and let them know they have the right to refuse the job placement without any negative consequences. If the Agency fails to provide this information, it is considered a violation, and each missing piece of information at each required time is a separate violation. This means violations (and the penalties they carry) can quickly rack up. If the Agency claims to have provided the notice electronically, they must prove it if there is a dispute.   Recordkeeping Requirements (eff. 1/1/2006) This statute requires Agencies to keep certain records when they send Laborers to jobs. Here is a breakdown: Client Information – the Agency must keep details of the third-party clients (companies where Laborers are sent) including names, addresses, phone numbers, and transaction dates. Laborer Information – for each Laborer, the Agency needs to record their name, address, work location, type of work, hours worked, hourly pay rate, and the date they were sent. The third-party client must provide this information to the Agency within 7 days after the work week ends. Transaction Details – the Agency should document the names and titles of individuals at the client’s place of business responsible for the transaction. Qualifications and Contracts – any specific qualifications requested by the client for Laborers, along with copies of contracts and invoices, should be kept on record. Employment Notices and Deductions – copies of employment notices provided to Laborers, and details of deductions from a Laborer’s pay for transportation, food, equipment, taxes, and other expenses must be maintained. Equipment and Meal Costs – the actual cost of equipment or meals charged to a Laborer must be verified and recorded. Demographic Information – the Agency needs to record the race and gender of each Laborer, as provided by the Laborer. Additional Requirements – any other information required by the Department of Labor’s (“Department”) rules should also be documented. The Agency must keep these records for 3 years and allow the Department to inspect them during business hours. Certain records must be available for review or copying by Laborers within 5 days of a written request.   Meals (eff. 8/14/1999) An Agency and a third-party client can only charge for meals if the following conditions are met: The Laborer ate the meal; The charge of the meal is capped at the actual cost of the meal; and The purchase of the meal is not a condition of employment. In other words, the Laborer must be able to freely turn down the meal.   Transportation (eff. 1/1/2006) An Agency that provides transportation for Laborers must meet the following requirements. These requirements do NOT apply if the Laborers transport themselves to the work location, whether they take their own car, public transportation, or any other self-arranged transportation. No Fees for Transportation – the Agency, client, or anyone involved cannot charge Laborers for transportation to or from the work site. Responsibility for Transportation – the Agency is responsible for the behavior of anyone transporting a Laborer, except in specific cases like public transportation, personal vehicles, or if the Laborer chooses the transport. Safe Vehicles – if the Agency provides transportation, the vehicles must be safe and meet legal requirements. Unsafe vehicles cannot be used unless they belong to public transportation, a common carrier, the Laborer, or a Laborer’s carpool vehicle. Referrals for Transportation – the Agency can only refer Laborers to transportation if the transportation is public transportation or free transportation services. An Agency can recommend carpooling, but if the Agency also discusses costs of carpooling, it is considered an illegal referral. Driver Requirements – drivers must have a valid license, and the vehicle must have proper insurance as per state rules. Violations are reported to law enforcement. Seat and Safety Belt Requirement – vehicles used for transporting Laborers must have a seat and safety belt for each passenger. Violations are reported to authorities. Return Transportation – if the Agency provides transportation to the worksite, they must also provide a way back to the starting point, unless the Laborer agrees to an alternative location in advance.   Equipment (eff. 8/14/1999) For any safety equipment, clothing, accessories, or any other items required for working, either by law, custom, or as a requirement of the third-party client, the Agency or the third-party client may charge the Laborer the market value of the item if the Laborer fails to return such items to the third party client or the Agency.   Wage Payment and Notice (eff. 1/1/2006) This statute has several requirements for wage payment to Laborers. Those requirements are highlighted below. Detailed Pay Statements – when Laborers are paid, the Agency must give a detailed statement on the paycheck stub or an approved form. It should include the client’s name, work hours, pay rate, total earnings, deductions (for such things as transportation or food), and any additional information required by the Department. Annual Earnings Summary – agencies must provide Laborers with an annual summary of earnings by February 1 of each year, and they need to inform Laborers about this at each payment or post a notice. Flexible Payment Schedule – Laborers can direct the Agency to hold daily wages and pay them weekly, bi-weekly, or semi-monthly. Payments must be in a negotiable form, and Laborers must be notified of their payment options. No Fees for Cashing Checks – the Agency can’t charge Laborers for cashing their paychecks. No Charges for Checks or Background Checks – the Agency or client cannot charge Laborers for checks or any background checks, including criminal background checks or drug tests. Minimum Wage and Deductions – Laborers must be paid at least the stated wage rate, and deductions for meals, equipment, and transportation should not make their hourly wage fall below the state or federal minimum wage. Payment for Unutilized Time – if a Laborer is contracted but not used by the client, the Agency must pay for a minimum of 4 hours of work. If the Laborer is assigned to another location during the same shift, they must be paid for a minimum of two extra hours of pay. Client Payment Responsibilities – clients must pay wages and related taxes to the Agency according to the agreed terms. Failure to comply results in penalties. The Department reviews complaints and checks records to ensure proper payment to the Agency and the Laborer.   Permanent Placement Restrictions (eff. 6/1/2018) Agencies have an affirmative duty to help place Laborers in permanent positions with a client when the client informs the Agency of its desire to hire a permanent employee if the permanent employee is being hired for the job the Laborer performs. Additionally, Agencies cannot restrict the rights of Laborers to accept permanent position with clients. Agencies may charge a placement fee, which is limited to: the equivalent of the total daily commission rate the Agency would have received over a 60-day period, reduced by the equivalent of the daily commission rate the Agency would have received for each day the Laborer has performed work for the Agency in the preceding 12 months.   Public Access Area (eff. 8/14/1999) The Agency must have a public access area of its office that has ample seating, restrooms, and water. All mandated postings must be posted in the public access area.   Equal Pay (eff. 7/1/2023) Most controversially, the most recent amendments require Agencies to pay Laborers assigned to a client for more than 90 days to be paid at least as much as the lowest-paid full time employee doing similar work and with similar seniority at the Client’s company. If there is no direct comparison at the company, then the comparison is made with the lowest-paid employee at the Client company who has similar seniority. Additionally, Laborers assigned for more than 90 days must receive the same benefits as the full-time employee counterparts. The staffing Agency has the option to pay the equivalent of benefits in cash instead of providing actual benefits. If the temporary Laborer has been with a company for more than 90 days, the company must provide necessary information about job duties, pay, and benefits of their regular employees when asked by the staffing Agency. If the company fails to provide this information, it is considered a violation.   Registration Requirements (1/1/2006) Agencies must register with the Department. In addition, third-party clients must verify that any Agency they use is registered. The Department will maintain a website accessible to the public that will state whether an Agency is registered.   Conclusion There is nationwide push to turn temporary Laborers into full-time employees. There is also a push to remove the pay advantages of hiring temps rather than regular employees. As a result, laws like this one are likely to continue popping up across the country. Providers and utilizers of temporary Laborers should keep their eyes peeled. If you are in Illinois and utilize temporary Laborers, you should seek competent counsel to help you navigate the new amendments to this law. Brody and Associates regularly advises management on complying with the latest local, state, and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560

Since the pandemic, many companies have negotiated new rhythms for workplace productivity. While a number of companies are fully “back at the office,” there are many others that remain committed to remote work, or to allowing their employees some flexibility via a hybrid work option. Remote work certainly offers many perks, and studies have shown that many employees prefer the flexibility that it provides. However, when you have employees who don’t work in the same physical space together, goals related to team building or company culture can be more challenging to achieve. Here are a few tips to keep in mind as you seek to engage remote employees in your company culture. Keeping Remote Employees Engaged with Your Culture Have your CEO or primary leader host a regular “coffee hour.” This is an approach that many companies have found incredibly effective. Schedule a regular, virtual “coffee hour” once every week or two, for maybe 30-minute blocks. Your CEO or primary leader should host this event, taking the time to introduce new employees, to share big-picture strategic updates, and to take questions from team members. This can be a great way to ensure that remote employees feel like they are in the loop. Ensure that company leaders are highly visible. It’s important for managers, supervisors, and other primary decision-makers to lead by example, even in a remote or hybrid environment. That means turning cameras on during Zoom meetings, promptly responding to instant messaging, and being intentional about reaching out to check in on employees. Provide ways for remote employees to receive ongoing professional development. Here’s where HR can play a direct and active role in engaging remote employees. Develop online learning opportunities that can allow all employees to cultivate new skills, without the need to travel to a workshop or seminar. Also ensure protocols are in place to recognize employees who complete these programs, or who have other notable workplace achievements. Allow remote employees to take the lead. Here’s a tactic that’s simple yet incredibly effective. Nothing helps employees feel invested in an institution or a culture like placing them in charge of a project or a team. Engage remote employees by providing them with opportunities for leadership and autonomy. Prioritize one-on-ones. As we’ve noted before, 

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How would it feel to shorten the time to productivity? Why does someone need to do their job the way they do? How can people become productive faster? Introduction: As a small business owner, you wear many hats. You’re the visionary, the marketer, the accountant, and often, the HR department. However, having the right people in the right roles is key to your success. It’s not just about filling seats; it’s about aligning talent with the demands of each department. This is where Kolbe comes in – a powerful tool that can help you unlock your team’s natural strengths and optimize your business’s performance. The Problem: Mismatched Skills and Frustration We’ve all seen a detail-oriented person struggling in a fast-paced, idea-generating role or a creative mind bogged down by rigid processes. Mismatches like these lead to frustration, decreased productivity, and, ultimately, higher turnover. This is especially damaging in a small business where every team member’s contribution is crucial. You might be tempted to use traditional methods, like resumes or personality tests. While these have their place, they don’t always get to the heart of how someone naturally gets things done – the key information the Kolbe A™ Index provides. Enter the Kolbe A™ Index: Understanding Your Team’s Conative Strengths The Kolbe A™ Index isn’t about measuring intelligence or personality. It measures a person’s conative strengths – their instinctive method of taking problem-solving action and getting things done. It reveals how they prefer to: Fact Finder: Do they need to gather data or rely on intuition? Follow Through: Are they good at meticulously executing plans, or are they more adept at improvising? Quick Start: Do they prefer to start new processes or refine existing ones? Implementor: Are they good at taking something complex and making it simple, or are they adept at handling intricate details? The Kolbe Index places you on a spectrum for each mode of action and gives you a number (ranging from 1-10) for how you naturally prefer to act within each mode. Map Roles to Kolbe Strengths: Now it’s time to analyze the demands of each department and role within your business. For instance: Marketing: You might look for individuals with high “Initiator” and “Fact Finder” scores. Operations/Production: This might be an area for those with a stronger “Follow Through” style. Sales: Those with a strong mix of “Initiator” and “Implementor” could excel here. Accounting/Finance: Look for those with a high “Follow Through” preference and a strong preference for “Fact Finder”. Open the Dialogue: Have open and honest conversations with your team. Share their Kolbe results (with their permission) and discuss how their strengths align (or don’t align) with their current role. Make Strategic Adjustments: Consider making adjustments based on the Kolbe results and those conversations. This might mean moving someone to a different department, shifting responsibilities within a team, or modifying a team member’s workflow to better utilize their strengths. It’s critical to remember that this is not a tool to punish or demean anyone but to place them in their best role, where they can thrive. Embrace Team Diversity: Each Kolbe profile offers unique strengths and values. A team of people working in the exact same way is not as effective as a team that balances diverse strengths. Benefits of Using Kolbe in Your Small Business: Increased Productivity: People who work within their natural strengths are more efficient and engaged. Reduced Frustration: Fewer mismatches mean less frustration, which leads to improved morale. Lower Turnover: Happier employees are less likely to leave. Improved Team Collaboration: When people understand how their teammates approach work, they can collaborate more effectively. Enhanced Problem Solving: A well-balanced team with diverse Kolbe profiles can tackle challenges more creatively. Better Decision-Making: Understanding the different ways each person naturally approaches a problem can lead to better decision-making in the long run. Rethink your Growth and Exit Planning: As a small business owner, you’re constantly looking for ways to optimize your operations and create a thriving work environment. Using Kolbe is not about forcing square pegs into round holes. It is about understanding the natural approach of your team and putting everyone in a place where they can thrive. Investing time and resources to understand your team’s conative strengths will pay dividends in increased productivity, happier employees, and, ultimately, a more successful business. So, take the first step, explore the power of Kolbe, and watch your team’s potential flourish. Call to Action: Are you ready to understand the power of your team’s strengths? It is important to have a Certified Kolbe Consultant guide you on how to use this data to attract, engage, and develop your team so you can grow and exit on your terms.

Listen to this post as a podcast: Click here to talk to Bloomwood about your finances. Are you ready to take control of your finances and maximize your after-tax income? If so, you’re in the right place. I’m Billy Amberg, founder of Bloomwood, and today, we’re going to explore a financial case study that affects everyone—whether you’re just starting out on your wealth-building journey or you’re a seasoned investor with substantial assets. The 1% Financial Advisor Fee: Is It Worth It? The financial advisory and wealth management industry invests massive marketing dollars to convince you that paying a 1% portfolio management fee is worthwhile. But is it really? Let’s break it down. For those with financial advisors who provide significant value through tax planning, estate planning, and comprehensive financial strategies, paying 1% can be justified. If you have a complex trust or unique investment needs, that fee might also make sense. However, if your advisor is merely managing your portfolio, responding to your questions reactively, and failing to offer proactive financial planning, then you are overpaying. Many advisors hold periodic meetings about investments, but that alone doesn’t justify the 1% fee. Why Paying 1% for Just Investment Management Is Too Much To understand why paying 1% for basic investment management isn’t worth it, we must first explore key investment principles. One of the best ways to structure your investments is by using the Three Buckets Approach: Cash Reserve Bucket: This is your safety net, typically covering 6 to 12 months of living expenses in case of an emergency. It also provides liquidity for investment opportunities, such as purchasing real estate. Fixed Income Bucket: If you need stable income to support your lifestyle, especially in retirement, this bucket consists of low-risk investments like bonds, ensuring steady cash flow. Long-Term Growth Bucket: Everything else belongs here. This is where equities and growth-focused investments come into play, aligning with long-term wealth accumulation. Understanding Risk Tolerance and Why It Matters Less Than You Think Many investors are familiar with risk tolerance questionnaires used by financial advisors or platforms like Vanguard. While these assessments provide insight into your comfort level with risk, they are not the ultimate determinant of investment strategy. For example, a young professional with limited financial resources who fears market volatility might lean toward ultra-conservative investments. However, avoiding equity exposure could mean they never accumulate enough wealth to retire. An advisor’s role should be to educate and coach clients through investment realities rather than just accommodating risk aversion. Why Beating the Market Is Nearly Impossible Many financial advisors attempt to justify their fees by claiming they can outperform the market. However, history shows that even professional fund managers struggle to consistently beat benchmark indices like the S&P 500. Consider this: The NASDAQ (Technology Index) has significantly outperformed the S&P 500 in recent years. The S&P 500 itself remains a difficult benchmark to beat even for top-tier investment professionals. The only funds consistently outperforming the market are quantitative hedge funds like D.E. Shaw, Citadel, and Two Sigma—which charge exorbitant fees and require massive investment minimums. If professional fund managers can’t consistently beat the market, how can an individual financial advisor do so? The answer is simple: they can’t. The True Cost of Active Management vs. Index Funds Rather than paying a financial advisor 1% to actively manage investments, many investors can achieve better results with low-cost index funds. Vanguard, for instance, offers index funds with fees as low as 0.05% per year. Additionally, for just 0.30%, you can get a Certified Financial Planner (CFP) through Vanguard, which is more than a third cheaper than the typical advisor fee. How to Determine If Your Advisor Provides Real Value Before you continue paying a 1% management fee, ask yourself: Is my advisor providing value beyond just investment management? Am I receiving proactive tax planning, estate planning, and financial strategy sessions? Can my advisor point to tangible financial benefits I’ve received beyond portfolio returns? If your advisor’s only contribution is managing your portfolio, you are likely paying for underperformance. Paying 1% for an actively managed fund that fails to beat the market is counterproductive when low-cost index funds offer superior long-term results. The Bottom Line: Are You Getting a Fair Deal? If you’re paying 1% for asset management, it should come with significant added value, including tax planning, estate planning, and personalized financial strategy. At Bloomwood, we focus on delivering real, tangible benefits beyond just managing investments. If you want to learn more about investing and getting massive value through financial planning, check out our other content: Kickstart Your New Year with Smart Financial Planning: A Comprehensive Guide Tax Planning: How Buying Tax Credits Can Cut Your Tax Bill and Boost Profits Disclosures Bloomwood does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly. We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant. For additional information about Bloomwood, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (

We know that a way higher-than-acceptable percent of those who sell their company have many regrets a year later.  A piece of that is how well did they plan life beyond the sale?  Purpose is a huge part of that, and we have many XPX members who are retirement coaches and help people plan for purpose.  That is incredibly important. And there is so much more.  How is that person going to thoughtfully, proactively remain healthy, minimize their health-related risk factors, stay mentally sharp, have a robust social network since so much of their current social network is wrapped up with the business, partners, clients, etc. And then what about knowing when and how to include family members so that inevitable changes in the future are fully planned?  We have XPX members who plan the financial, the estate, the insurance pieces which are all important.  There is a much deeper personal side that is rarely planned and leaves families not knowing what to do when a crisis happens, health declines, a spouse is lost, or other unexpected events. All of this can be planned, and when it is, the future is brighter and more secure. Selling the business just opens the door to new phases of life that are just as fulfilling and engage those prior business owners in new ways to engage with their community, their family, and their unique interests. Purpose is not busy-ness.  In a future article we will talk about how very important that differentiation is.

Listen to this post as a podcast: Click here to talk to Bloomwood about your finances.   Quantum computing and artificial intelligence (AI) are two transformative technologies that have the potential to reshape industries and solve some of the world’s most complex challenges. Together, they form a dynamic duo capable of driving breakthroughs in fields ranging from healthcare to manufacturing. In this post, we’ll explore the synergy between quantum computing and AI, the challenges involved, and the exciting future ahead. What is Quantum Computing? Quantum computing offers the potential to solve problems that classical computers struggle with, such as those in drug discovery and material science. Quantum computers operate using quantum bits, or qubits, which can exist in multiple states simultaneously (superposition). This ability to represent both 0 and 1 at once allows quantum computers to solve problems much faster than classical systems. How AI is Transforming Industries Artificial intelligence, particularly machine learning, is already transforming industries such as healthcare, finance, and defense. By analyzing large datasets and making predictions based on that information, AI systems are helping organizations make more informed decisions and predictions. In fields like healthcare, AI is improving diagnostics, personalizing treatment plans, and advancing medical research. In finance, AI-powered algorithms are being used for fraud detection, risk assessment, and market prediction. The Challenges of Building Stable Quantum Computers Despite its potential, building stable quantum computers remains a significant challenge. Quantum states are incredibly fragile, and any disturbance can cause errors in calculations. This makes developing reliable quantum computers a difficult task. Furthermore, quantum encryption is a concern, as quantum computers could eventually break current encryption methods. Researchers are already working on developing quantum-resistant encryption to address these challenges. The Rise of Quantum Sensing Quantum technology is not limited to computing. Quantum sensing is emerging as a powerful tool for detecting small changes in physical properties such as magnetic fields, gravity, and time. This could lead to breakthroughs in medical imaging, environmental monitoring, and navigation, with applications in everything from precision healthcare to transportation. The Economic Impact and Job Creation The growth of the quantum and AI industries is expected to generate over $1 trillion by 2035, creating hundreds of thousands of jobs across various sectors. By 2030, it is predicted that 250,000 jobs will be created in the quantum sector, with that number rising to 840,000 by 2035. These technologies will not only fuel economic growth but also provide opportunities for innovation and creativity across a range of industries. How Companies Can Capitalize on Quantum and AI Advancements Companies looking to thrive in the quantum and AI space must: Adopt early: Be early adopters of quantum and AI technologies to establish themselves as leaders. Create value: Apply these technologies in ways that solve real-world problems in industries like healthcare, finance, and manufacturing. Innovate rapidly: Keep pace with technological advancements and remain adaptable in a fast-moving market. Invest in infrastructure: Have the financial strength to fund R&D and build the necessary infrastructure. Leverage marketing: Effectively communicate innovations to the public and industry stakeholders.   Key Companies to Watch in the Quantum and AI Space Tech Giants Leading the Way Companies like IBM, Microsoft, Apple, Amazon, and Nvidia are heavily investing in quantum computing and AI technologies. These tech giants are positioning themselves for long-term leadership by developing cutting-edge solutions and forging strategic partnerships in the space. Industry Disruptors Smaller companies like Square, Chime, Clario, and Anduril Industries are harnessing AI and quantum technologies in unique and innovative ways. Particularly in finance, healthcare, and defense, these disruptors are pushing the envelope on what’s possible with these technologies. Innovations in Telecommunications and Manufacturing Telecommunications: The Future of Quantum Communication In telecommunications, BT is exploring quantum communication to enhance the security and efficiency of digital networks. IQ Go is leveraging AI to improve network management, optimizing resource allocation and improving network reliability. Manufacturing: Virtual Models for Optimization In manufacturing, companies like Forge are using AI to create virtual models of manufacturing processes. This allows them to simulate, optimize, and improve production lines with digital twin technology, resulting in greater efficiency and cost savings. Democratization of Quantum and AI Technologies One of the most exciting developments in the quantum and AI space is the democratization of these technologies. Cloud-based services now allow small businesses to access powerful quantum and AI tools without needing their own hardware. This mirrors the early days of the internet when once-exclusive technologies became available to the broader public, sparking innovation across industries. Quantum Startups Making Waves Several startups are making significant contributions to quantum computing. For instance: Reggetti Computing combines quantum and classical computing in a hybrid approach to enhance performance. IonQ is pushing the boundaries of quantum computing with trapped ions as qubits, offering high fidelity and long coherence times. Zapata Computing provides platforms for quantum algorithm development, making quantum computing more accessible to those without deep expertise in the field. Key Concepts in Quantum Computing To fully appreciate the potential of quantum computing, it’s essential to understand some key concepts: Superposition: Qubits can exist in multiple states simultaneously, allowing for parallel computations. Entanglement: A quantum phenomenon where qubits are linked, enabling instantaneous communication and increasing computational power. Fidelity: The accuracy with which qubits can be manipulated. Coherence Time: The duration for which a qubit can maintain its quantum state before it decays. Will Quantum Computers Replace Classical Computers? While quantum computers are powerful, they are not meant to replace classical computers. Instead, they are designed to tackle problems that classical systems cannot handle, such as complex simulations and optimization tasks. The future will likely see a hybrid approach where both types of computers complement each other, each playing to its strengths. Responsible AI Development As AI continues to evolve, it’s crucial that we develop it responsibly. This means addressing issues like bias, transparency, and accountability. For example, if an AI system is trained on biased data, it may perpetuate and even amplify those biases in its decision-making. In fields like healthcare and finance, transparency is essential. We must ensure that AI decisions are understandable and explainable, particularly when they have a direct impact on people’s lives. Similarly, accountability is key: if an AI system causes harm, we need to determine who is responsible. The Future of AI and Quantum Computing As we look ahead, the future of AI and quantum computing is filled with possibilities. These technologies have the power to revolutionize industries, create new economic opportunities, and solve some of humanity’s most pressing challenges. But with great power comes great responsibility. We must ensure that these advancements are used ethically and transparently to benefit society as a whole. The quantum era is here, and it’s full of opportunity. Whether through AI’s ability to enhance communication or quantum computing’s ability to solve complex problems, these technologies are set to transform our world. Check out our other recent article on investing in quantum computing! www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.   The views expressed in this commentary are subject to change based on the market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.    All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Bloomwood is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Bloomwood and its representatives are properly licensed or exempt from licensure. 730 Starlight Lane, Atlanta, GA 30342.

Enhance your member profile by adding a photo and your company logo! It’s a great way to personalize your presence and showcase your organization. Follow these simple steps to update your profile: 1. Log In to Your Account First, make sure you’re logged in to your member account by going to www.exitplanningexchange.com and clicking on the Log In button on the top right-hand corner of the page. Remember to use the email address associated with your member profile as your username. 2. Go to Your Profile Once logged in, navigate to your member profile. You can usually find this by clicking on your profile picture or your name at the top of the page. 3. Select “Edit Photo” Look for the “Edit Photo” button—typically located near the top of your member profile’s dropdown menu (photo below). Click on it to upload or update your high-res photo.

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