Business Value Growth

Southern States Fight Back Against Union Wins in South

Robert G. Brody

Brody and Associates, LLC

1 day ago

For five decades, the southern United States has been an attractive location for automakers to open plants thanks to generous tax breaks and cheaper, non-union labor. However, after decades of failing to unionize automakers in the South, the United Auto Workers dealt a serious blow to that model by winning a landslide union victory at Volkswagen. In an effort to fight back, three southern states have gotten creative: they passed laws barring companies from receiving state grants, loans and tax incentives if the company voluntarily recognizes a union or voluntarily provides unions with employee information. The laws also allow the government to claw back incentive payments after they were made. While these laws are very similar, each law has unique nuances. If you are in an impacted state, you should seek local counsel. In 2023, Tennessee was the first state to pass such a law. This year, Georgia and Alabama followed suit. So why this push? In 2023, the American Legislative Exchange Council (“ALEC”), a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments, adopted Tennessee’s law as model legislation. In fact, the primary sponsor of Tennessee’s bill was recognized as an ALEC Policy Champion in March 2023. ALEC’s push comes as voluntary recognition of unions gains popularity as an alternative to fighting unions. We recently saw this with the high-profile Ben & Jerry’s voluntary recognition. Will this Southern strategy work to push back against growing union successes? Time will tell. Brody and Associates regularly advises its clients on all labor management issues, including union-related matters, and provides union-free training. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.

Jul 25, 2024

Tri-State

Business Value Growth

Jul 25, 2024 1 min read Tri-State

Business Value Growth

The First Amendment Prevails: Florida’s Stop WOKE Act Unconstitutional

Robert G. Brody

Brody and Associates, LLC

4 weeks ago

In March 2022, Florida enacted the politically charged Individual Freedom Act, informally known as the STOP WOKE (Wrongs to Our Kids and Employees) Act. Less than two years later, the U.S. Court of Appeals of the Eleventh Circuit blocked the enforcement of the Act on the grounds it violates employers’ right to free speech. This decision directly impacts employers in the Eleventh Circuit and will have a ripple effect on employers nationally. How did the Individual Freedom Act (Stop WOKE Act) affect employers? The Act attempted to prevent employers from mandating training or meetings for employees which “promote” a “certain set of beliefs” the state “found offensive” and discriminatory. There are eight prohibited beliefs each relating to race, color, sex, and national origin. According to the Act, employers must not teach the following: Members of one race, color, sex, or national origin are morally superior to members of another race, color, sex, or national origin. An individual, by virtue of his or her race, color, sex, or national origin, is inherently racist, sexist, or oppressive, whether consciously or unconsciously. An individual’s moral character or status as either privileged or oppressed is determined by his or her race, color, sex, or national origin. Members of one race, color, sex, or national origin cannot and should not attempt to treat others without respect due to race, color, sex, or national origin. An individual, based on his or her race, color, sex, or national origin, bears responsibility for, or should be discriminated against or receive adverse treatment because of, actions committed in the past by other members of the same race, color, sex, or national origin. An individual, based on his or her race, color, sex, or national origin, should be discriminated against or receive adverse treatment to achieve diversity, equity, or inclusion. An individual, by virtue of his or her race, color, sex, or national origin, bears personal responsibility for and must feel guilt, anguish, or other forms of psychological distress because of actions, in which the individual played no part, and were committed in the past by other members of the same race, color, sex, or national origin. Such virtues as merit, excellence, hard work, fairness, neutrality, objectivity, and racial colorblindness are racist or sexist, or were created by members of a particular race, color, sex, or national origin to oppress members of another race, color, sex, or national origin. Employers still had the ability to mandate employees attend sessions that either refute these concepts or present them in an “objective manner without endorsement.” This dictates how an employer deals with its employees and is particularly limiting in how employers address discrimination training. Employers who failed to adhere to the law were liable for “serious financial penalties—back pay, compensatory damages, and up to $100,000 in punitive damages, plus attorney’s fees—on top of injunctive relief.” The Ruling – Honeyfund.com Inc. v. Governor [2024] In March 2024, the U.S. Court of Appeals of the Eleventh Circuit served an injunction preventing enforcement of the Act. Despite the state insisting the Act banned conduct rather than speech, the court ruled the Act unlawfully violated the First Amendment’s right of free speech by barring speech based on its content and penalizing certain viewpoints. While certain categories of speech such as “obscenity, fighting words, incitement, and the like” are traditionally unprotected, the court pointed out that “new categories of unprotected speech may not be added to the list by a legislature that concludes certain speech is too harmful to be tolerated.” Florida is keen to appeal against the decision. What does this mean for employers? Regardless of one’s opinions on the matter, this can be viewed positively from an employer’s standpoint. Employers in the private sector can control speech in the workplace, and this ruling confirms their autonomy will continue. Whether or not the rest of the country will follow suit remains to be seen. This case, in tandem with the US Supreme Court’s ruling to ban race based affirmative action, signals today’s intense political climate is likely to continue to impact how employer diversity, equity and inclusion (DEI) initiatives are approached. Employers should continue to review their DEI initiatives, ensuring they are in line with the latest precedents. 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

Jun 27, 2024

Tri-State

Business Value Growth

Jun 27, 2024 4 min read Tri-State

Business Value Growth

NLRB Rules Dartmouth Men’s Basketball Players Are Employees and They Have Already Voted to Unionize

Robert G. Brody

Brody and Associates, LLC

2 months ago

Last month, the Boston Regional Office of the National Labor Relations Board (the “NLRB”) ruled that members of the Dartmouth men’s basketball team are employees and as such have the right to unionize. Wasting no time, yesterday, the Dartmouth men’s basketball team voted 13-2 to unionize. Many educational industry onlookers saw this as the necessary next step in granting employment status to all college athletes – not just the national powerhouses. Although the decision is expected to be appealed, there is no doubt the decision, if upheld, will mark a seismic shift in collegiate athletics. Why? Because if Dartmouth men’s basketball players are employees, then arguably all collegiate athletes, both men and women, in all divisions, should also be considered employees eligible for unionization and maybe even compensation. Why Does this Sound Familiar? For those of you who follow college athletics closely or who happen to be closet labor and employment law buffs, you will know the recent Dartmouth NLRB decision is not unprecedented. In fact, a similar ruling was issued nearly a decade ago when the Northwestern football players were determined (by a different Regional Office of the NLRB) to be employees and able to unionize. However, back then, a unanimous NLRB overturned that decision. One of the reasons the NLRB overturned the lower decision was because the NLRB only has jurisdiction over private employers. Although Northwestern is a private school it competes in the Big Ten athletic conference, which, except for Northwestern, was comprised exclusively of public universities at that time. The NLRB found it should not exercise jurisdiction over the matter because permitting one school in the conference to collectively bargain (and therefore pay their athletes) and not the others would be detrimental to college athletics because the playing field would no longer be level among different schools. While some found this argument weak, it carried the day. What’s Next? Fortunately for the Dartmouth men’s basketball team, the above argument will not be an issue this time as Dartmouth competes in a conference composed entirely of private schools, the Ivy League. Likely even more important, the NLRB’s General Counsel (chief prosecutor), Jennifer Abruzzo, has previously come out strongly in favor of student-athletes being treated as employees protected under the National Labor Relations Act. Despite all of this, the process will not be a slam dunk for the basketball team (sorry, we could not help ourselves). While the next step is a hearing before a pro-union, Biden-appointed NLRB, the following step(s) will be the federal courts and what happens there is uncertain. Both Dartmouth and the NCAA have come out strongly against the decision insisting that their athletes are not employees but rather unpaid amateur students. The NCAA also predicts dire consequences for college athletics if athletes become subject to the NLRA (and other federal and state employment laws). For example, if athletes are “employees” under the wage and hour laws, they are entitled to pay- which is a direct violation of the NCAA’s prohibition against “pay for play.” As a result, we expect an exhaustive legal battle that will take years to play out. Unfortunately for Dartmouth and the NCAA, these legal challenges will work their way through a court system that recently delivered a major win to college athletes in an antitrust case that went all the way to the Supreme Court. If that is where this latest case ends up, it will be heard before many of the same justices who unanimously found against the NCAA when it decided the NCAA’s imposition of strict limits on compensation for student-athletes for education-related benefits violated antitrust law. While the appeal is pending, we expect to see an influx of other petitions filed by other student-athletes to have their teams unionized. Union activity on college campuses is already high; this decision will likely just make it higher. If the student-athletes are ultimately successful, these actions could lead to a complete upheaval of athletic programs on college campuses. Imagine if colleges can give their star athletes massive salaries. The smaller programs will almost never be able to attract top talent which means only the richest few will be competitive. We may have seen our last Cinderella story. Closing Thoughts The time seems right for the NLRB to act on this issue. With the strong pro-labor tailwinds currently in Washington, D.C., it seems likelier than not that this ruling will be upheld by the NLRB. What happens on appeal to the federal courts is anyone’s guess and could ultimately be decided by who wins the White House later this year. We will monitor this issue closely and provide our readers with updates as they become available. Brody and Associates regularly advises its clients on union-related matters and provides union-free training. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.

May 8, 2024

Tri-State

Business Value Growth

May 8, 2024 4 min read Tri-State

Business Value Growth

Leadership Unveiled: Fostering Trust with the 5 C’s

Chuck Cooper

WhiteWater Consulting LLC

5 months ago

In the fast-paced landscape of today’s organizations, the missing link that often separates successful ventures from mediocre ones is trust. Trust is the glue that binds leaders with their stakeholders, creating an environment where collaboration thrives, innovation flourishes, and everyone feels valued. To bridge this trust gap, we propose a formula that encapsulates the essence of effective leadership—the 5 C’s of Leadership. 1. Communication: The Foundation of Relational Trust At the core of the 5 C’s lies communication, the bedrock upon which trust is built. It goes beyond merely transmitting information; effective communication involves active listening to understand and speaking to be understood. Leaders must foster an environment where every voice is heard, creating a sense of openness and transparency. When communication flows freely, trust is nurtured, and stakeholders feel a genuine connection with the leadership. 2. Connection: Managing by Walking Around Connection is the second pillar, urging leaders to step out of their offices and immerse themselves in the daily rhythm of the organization. It involves spending quality time with team members, being present when they start their day, and showing appreciation at the day’s end. But connection extends beyond internal teams—it encompasses engaging with customers, vendors, and community leaders. By sharing the organization’s mission, vision, and values, leaders build bridges that connect diverse stakeholders, fostering a sense of unity and common purpose. 3. Commitment: Anchoring to Mission, Vision, and Values Commitment is the anchor that prevents leadership from drifting into uncertainty. Leaders must be steadfast in their dedication to the company’s mission, vision, and values. This commitment goes beyond lip service; it involves actively shaping and building the organizational culture. When stakeholders witness leaders unwaveringly dedicated to a common goal, trust is solidified, creating a stable foundation for growth and collaboration. 4. Care: Nurturing Your People Care is the empathetic thread that weaves through the fabric of trust. Leaders must genuinely care for their people, recognizing them as individuals with unique needs and aspirations. This involves not only professional development but also a focus on the overall well-being of the team. By demonstrating genuine concern for the individuals within the organization, leaders cultivate a culture of trust, where each person feels valued and supported. 5. Curiosity: A Leader’s Lifelong Learning Journey Remaining curious is the fuel that propels a leader’s journey towards growth and success. Acknowledging that there is always more to learn, leaders should invest time in asking questions, seeking different perspectives, and gathering input from diverse sources. This curiosity leads to a more robust decision-making process and better outcomes. Embracing a mindset of continuous learning not only inspires trust but also fosters an environment of innovation and adaptability. Incorporating these 5 C’s into leadership practices provides a comprehensive roadmap for building and maintaining trust with stakeholders. It is not a one-time effort but an ongoing commitment to fostering a culture of trust, openness, and collaboration. As leaders strive to implement these principles, they will witness the transformational impact on organizational dynamics. Trust becomes the catalyst for enhanced teamwork, increased productivity, and a shared commitment to achieving common goals. In an era where trust is often a scarce commodity, leaders who embrace the 5 C’s will stand out as beacons of authenticity and reliability, guiding their organizations toward sustained success and growth.

Feb 7, 2024

Charlotte

Business Value Growth

Feb 7, 2024 2 min read Charlotte

Member News

CBIZ – Health Care Study 2023

Adam Brier

CBIZ

1 year ago

CBIZ Health Care Survey Shows Employers Prioritize Recruiting and Retaining Talent in Hot Job Market Survey also finds employers are prioritizing stemming the rising costs of medical plans and the inclusion of mental healthcare services Business Wire CLEVELAND — March 15, 2023 CBIZ (NYSE: CBZ), a leading national provider of insurance, financial and advisory services, released its inaugural 2023 State of Health Care survey that shows recruiting talent (67%) and retaining talent (64%) as top priorities for employers, trends driven by a hot job market despite concerns of a recession later this year. The State of Health Care survey includes responses from 869 businesses with at least 100 employees, spanning 41 states and 26 industries. The survey provides insight into employer priorities, top health plan features, and emerging mental and physical health benefit trends to watch through the remainder of 2023. “Employers continue to show an eagerness for recruiting the best and the brightest talent and to identify and retain those employees who have the best growth trajectory,” said Jay Meschke, President of CBIZ Talent & Compensation Solutions. “Since 2020, employers have had to respond quickly to drastic shifts in social and economic conditions and this year will be no different.” Controlling medical costs is a top priority for 49% of businesses. This comes as industry experts project a six to eight percent increase in employers’ health care costs due to rebounding utilization, or rising use of medical providers, and the rise in prescription drug costs. Cost-containment strategies businesses are implementing include reference-based pricing, alternative funding arrangements and enhanced use of telemedicine. Polly Thomas, Business Unit President, Employee Benefits added: “The survey showed that emerging trends and the priorities in the health care and benefits spaces are changing. This data will serve as a guide for businesses looking to modernize their benefits programs that mitigate risks and costs, while improving their employees’ health care experience.” The data was assessed from an overall perspective, as well as based on company size and industry. An interactive infographic with the results is available on the CBIZ website. Additional key findings include: * Almost 35% of employers that don’t offer mental health wellbeing resources through their plans are open to considering options – Despite opting to provide coverage plans that do not offer certain mental health services, nearly 35% of businesses indicated they would like to learn more about offerings for mental health programs. Interest surpassed consideration of other offerings like weight management (18.7%) and financial wellbeing (14.7%). * The majority of businesses provide mental health resources for their employees – 80 percent of employers offer mental health resources through an employee assistance program, while 68 percent provide counseling through their medical plans. * Nearly two in three businesses offer a wellbeing program for employees – With retaining talent being the second most valued priority for the employers surveyed, 61.9% are looking to attract and retain high-performing employees in part by offering a comprehensive benefits program that includes a wellbeing component. * 82% of employers include options for virtual behavioral health consultations – Employers are providing workers with increased options to meet with their medical professionals, both as a convenience and to help mitigate health and safety concerns amid the ongoing impact of COVID-19.

Mar 17, 2023

Long Island

Member News

Mar 17, 2023 2 min read Long Island

Business Value Growth

How Remote Work Has Improved Culture

Chuck Cooper

WhiteWater Consulting LLC

1 year ago

When the COVID-19 pandemic forced companies to close their doors, sending employees home to work remotely, many leaders worried about the long-tail effects on culture, employee engagement, and morale. As it turns out, some of those concerns were unfounded.

Jan 29, 2023

Charlotte

Business Value Growth

Jan 29, 2023 2 min read Charlotte

Business Value Growth

Adapting to the Conscious Consumer, Your Employees

Maria C Forbes

FIREPOWER Business Catalyst, LLC.

2 years ago

Employees have adopted a consumer mindset about who they work for, and the value a company provides to their personal and professional life. They are focused holistically on the ability to share in cultural matters as part of a broad community effort. Small business leaders must adapt to employee mindfulness about their career experience. With the right focus, you can become a company that attracts, engages, and retains your conscious consumer workforce. As the country navigates inflation, conscious consumers are placing emphasis on value. Today’s conscious consumers want to feel as if they’re making responsible buying decisions and investment decisions in their careers too. This includes sentiments like whether there is perceived and experienced personal value at a company. The pandemic stimulated a change in spending habits as Americans considered where products came from, how they were produced, and how best to access necessary products and services. In the wake of 2020, business leaders have seen these considerations turn into workplace demands. Employees, particularly the Gen Z and Millennial generations, regard sustainability, diversity and inclusion, and the public stance a company takes on social issues, to be strong factors in their buying decisions (McKinsey.) These factors are also showing up in the decision about where they will work. How do small business leaders adapt? Business transparency is a factor. Companies that find the sweet spot between great value, sustainability, and inclusion will come out on top in the years to come. Environmental, social and governance (ESG) is a big topic today. Let’s talk about small business adaptation of this three-part approach to doing business. Think of your employees as stakeholders in a shared vision. ESG standards guide small business owners in leading their workforce. With clear ESG standards, your small business workforce become strong contributors to company growth and sustainability. Consider clear standards. American workforce is paying attention to how you hire and the value you offer to employees. As consumers, your employees want to represent and support organizations that elevate people and demonstrate that they care about what’s going on in the world. When’s the last time your company helped during a crisis? What causes does your company stand behind? The company that wins in the future is a culture that represents the interests of its consumer base, its workforce. The small business workforce as a strong community with shared purpose provides internal guardrails for navigating healthy relationships. Know your influence on your employee consumers A company should consider the major social platforms to find out what their employee consumers are saying about their products/services. This is a level of marketing research that can be a strategic turning point. Consumers are eager to make their voices heard on social media. They have no qualms about bashing or praising a company and 70% of Gen Z and Millennials cite social media as a key influence. (McKinsey) What a company offers isn’t the only topic of discussion. Your company image, who you represent, and best practices are topics of discussion and shared on social platforms. Taking into account rising inflation and your company response, your employees want to be part of a shared mission, to support a business that is working toward companywide inclusivity, diversity, and advancement. People are listening to influencers on social media who champion the efforts of companies that are making these an actionable priority. Don’t be shy about your accomplishments. Social media platforms are an opportunity to communicate with your markets and your employees. Use these platforms to bring attention to the issues you support so your employee consumer can learn more about you; then pay attention to their feedback. Share your accomplishments and your employees will participate. The fact that the gender gap is razor-thin among your senior-level staff should be celebrated. Sharing moments from open-discussion events would do wonders to establish your reputation on diversity and inclusion, and for causes you care about. Summary American consumers are using their purchasing power to support the changes they want to see in the world. Small business leaders should evaluate their internal value proposition, and where needed, adjust to the shifting priorities of their workforce. Inflation is triggering more cautious spending, and consumers want to feel good about where that money is going. The conscious consumer has an impact on employee thinking about career choices. A business that demonstrates a commitment to employee well-being, adds value that matters, and has staying power. Social media is a viable tool for getting real-time reactions to your product/service or announcements from your workforce and your client base. American small business leaders should consider social media an integral part of your business strategy.

Jul 11, 2022

Atlanta

Business Value Growth

Jul 11, 2022 4 min read Atlanta

Business Value Growth

Day One – A crucial part of employee retention

Maria C Forbes

FIREPOWER Business Catalyst, LLC.

2 years ago

Being new at anything is difficult for a period. New team members try to get their bearings and begin to feel like a resident member of the company. This month a newcomer provided a critical reminder of the one factor which significantly influences the first week on the job. Why is this important to leaders? Employers have to consider a new internal reset for retaining people. Navigating a new set of employee viewpoints for a preferred work relationship is not sufficient if only in conversation. Your chances of retaining people in today’s fight for talent increases when you connect them on day one of your new relationship. “Day one” provokes a blend of emotions. There is anticipation of interactions with a new team, even though you may have met some of them during the selection process. A planned and structured agenda for key introductions and process training that includes specific outcomes will increase the engagement of new team members. There are feelings of excitement. New members will set out to make a personal contribution to organizational goals. On the first day at a new job, most newcomers expect a positive experience. They will consider how their new peers work individually and collaboratively as they navigate their first week. They look forward to an agenda for learning the details of their new role. Margaret is a strategic communications professional. She has been looking forward to starting a new position at a top firm in her industry. She felt the usual emotions going into “day one” but her experience caused her to take pause. At the end of day one, Margaret wondered how this well-established corporate team missed an important set up of their new relationship. Instead of a planned introduction to her team and her role, she was left to make introductions around the office and determine how to fill her time for an entire week before initial training was scheduled. What tasks was she to prioritize? Where was her team on day one? Would she be part of the business culture? What would help her to acclimate emotionally and professionally? Definition of critical onboarding steps. While many companies include some onboarding steps, the definition of this critical process varies dramatically. For small businesses, onboarding is a primary strategy for attracting and keeping top performers. This is one thing that will make a positive first impression and ensure that your initial working relationship phase will have a strong start. Onboarding lays the groundwork for a lasting professional affiliation. Making a new team member want to stay is difficult when an onboarding plan is missing. Three essential factors will ensure your new team member will decide to stay a while. Have an onboarding plan ready on day one. Do not skip this step; take the time to generate a plan that includes priorities for the initial 90-day period. You don’t have to iron out all the details, and the agenda can be edited in advance of each 30-day period. Your onboarding plan should include an illustration of role priorities for the initial period and for the long-term evolution of the role. Commit to giving ample thought to the experience of the early working phase as a set up for a long-term association. Expectations and priorities must include who and what. Depending on the level of your new team member, you want to give him or her the right framework for a productive first day, first week. Day one should include who they will have a regular interface with, and what they will achieve together. Your new team member will have the insight and direction to determine their priorities. A timeline is critical. Everyone wants to know what is expected of their time and energy in a new role. Priorities and expectations are in focus, now you should coordinate these within two to three identifiable periods of time. With an illustration of priorities and timelines, a new team member can easily determine how to spend time and energy during each specified period. Now the execution of the role during the initial period will occur with optimum productivity and performance can be reviewed at the completion of each specified period. A first impression is made at the time of candidate selection. A mutual agreement to work together is confirmed at hiring, and a new team member’s transition into a lasting affiliation starts on day one. Do not skip this step, your new team member will thank you!

Jun 20, 2022

Atlanta

Business Value Growth

Jun 20, 2022 4 min read Atlanta

Business Value Growth

NLRB ARGUES UNION SHOULD HAVE ACCESS TO PUBLIC SPACES

Robert G. Brody

Brody and Associates, LLC

2 years ago

By Robert G. Brody and Luis A. Torres The Biden Administration’s unbridled support of Labor continues. National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo, the NLRB’s chief prosecutor, released an advice memorandum on May 25, 2022, arguing that the Board has improperly been allowing employers to ban unions from accessing portions of their property held open to the public. The NLRB is urging private property rights take a back seat to the right to unionize. Abruzzo issued the advice memorandum in response to LT Transportation, Case 05-CA-281-089. In LT Transportation, a union was trying to unionize bus drivers. As part of their efforts the union had their representatives stationed along bus stops, which the bus company privately owned but held open to the public. The Company ordered the union off the bus stop property and the union filed charging claiming this was illegal. When the union successfully unionized the bus drivers they withdrew its complaint against LT Transportation. However, while the case was pending, Abruzzo argued the union’s activities should be allowed and Board precedent disallowing these actions should be overturned. The basis of Abruzzo’s argument is that current Board precedent is contrary to the Supreme Court’s decision in NLRB v. Babcock & Wilcox Co., 351 U.S. 105 (1956). The Supreme Court ruled that employers could exclude non-employee union representatives in select circumstances. Subsequent Board interpretation allowed employers to ban union representatives from public property if the employees are otherwise accessible to the union. However, employer bans were not allowed if the employer discriminates against the union by allowing other groups to access the public spaces. If Abruzzo has her way, employers will be forced to allow union representatives access to all portions of their property held open to the public. This is a large departure from Board precedent. This is one of the many initiatives Abruzzo is simultaneously pursuing. If you hold portions of your property open for public use, be on the lookout for updates. Brody and Associates regularly advises management on all issues involving unions, staying union-free, complying with the newest decision issued by the NLRB, and training management on how to deal with all these challenges. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560

Jun 20, 2022

Tri-State

Business Value Growth

Jun 20, 2022 2 min read Tri-State

Business Value Growth

Starbucks and the Union- What Really Happened in Memphis and Could it Happen to You?

Robert G. Brody

Brody and Associates, LLC

2 years ago

Mar 8, 2022

Tri-State

Business Value Growth

Mar 8, 2022 1 min read Tri-State

Informed Inclusion

Inclusive Benefits Strategies to Support Your Recruitment and Retention Efforts

Adam Brier

CBIZ

2 years ago

Embracing DEI as Part of Your Recruitment/Retention Strategy More employers have come to embrace diversity, equity and inclusion (DEI) initiatives as a way to improve workplace culture and demonstrate they value their employees as people, not just workers. Harvard Business Review found that 65% of U.S. executives say DEI is a high strategic priority, and organizations on the leading edge report multiple organizational benefits related to their DEI work, including increased employee engagement, innovation and success in recruiting and retaining employees.3 Additional studies suggest that taking the right actions to improve DEI can also lead to better financial outcomes for the organization.

Jan 18, 2022

Long Island

Informed Inclusion

Jan 18, 2022 1 min read Long Island

Business Value Growth

Can You Offer too Many Product Versions to Your Customers?

Steven Lustig

Lustig Global Consulting

2 weeks ago

Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of. There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters. For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business. In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product. The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU. 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.

Jul 9, 2024

Atlanta

Business Value Growth

Jul 9, 2024 4 min read Atlanta

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