Tue, May 7, 2024 • 12:00 PM – 1:00 PM EDT
Jody brings to the table three decades of technology expertise to help integrate Artificial Intelligence into small to mid-sized businesses, demystifying this cutting-edge technology to deliver engaging, insightful, and accessible presentations tailored for business owners across any sector.
May 16, 2024 – The Henry, Autograph Collection
The MichBusiness Women Thrive Conference is a day of celebration, informative panel discussions, facilitated networking opportunities, and knowledge-sharing. It is advised by a distinguished board of businesswomen and community leaders.
W. J. Beal joined the Detroit Institute of Arts as director, president and CEO in 1999, attracted by the prospect of leading the museum during a major renovation and expansion. Since then, the native of Great Britain has overseen two major capital campaigns and the redesign of the museum. Now the collection is being reinstalled with new tools to help visitors better understand the art and its cultural context. The museum will reopen at 10 a.m., Friday, Nov. 23 with a 32-hour grand opening celebration.
Corp!: What was the catalyst for the building renovation? Beal: It started as a kind of retrofit. The original building was constructed in 1927 with additions in 1966 and 1971. The infrastructure was getting old, including the 70-year-old air handling system. Moisture was getting in and metal pinions which fastened pieces of granite, were coming out. Along with the renovation, we had the opportunity to make it easier for people to get around-to provide sensible way-finding through a series of galleries arranged along a spine or main street on the first and second floors.
Corp!: How did you develop internal and external support for the project?
Beal: Certain work absolutely had to be done and the only question was how to afford it. In 1998, a standalone 501(c)3 was established so we could raise money.
Corp!: Many museums have been expanding and changing their focus. How do you describe the DIA’s mission today?
Beal: The museum used to take the visitor on the “Grand Tour.” We no longer teach the history of art. We want the DIA to provide a visitor-centered experience where people can make personal connections with art and understand the human purpose of the art. We are focused on the general visitor.
Corp!: What did you learn from the focus groups? Beal: We learned what creates or destroys a museum experience in great detail. It was transformational for me. When we started, we went to other museums such as the Victoria and Albert in London. The reinstallation ideas came from the whole DIA staff. Now other museums are coming here.
Corp!: What can a visitor expect to see after the November grand re-opening?
Beal: I hope they will see a vibrant and engaging institution where art is treated with respect but where a much more relaxed form of behavior is acceptable.
Corp!: What percentage of the museum’s collection will be displayed at any one time?
Beal: About 5,000 works-10 percent of the entire collection. Some works are light-sensitive and can only be on view for a short time. Other pieces are loaned out.
Corp!: As the renovation and reinstallation projects near completion, what have you learned?
Beal: The only really big blow was discovering that there was asbestos in places which we didn’t know about. That slowed the demolition work and cost $40 million to remove.
Corp!: What do you like to do in your free time?
Beal: I enjoy reading and listening to music. I used to do a fair amount of cooking. I usually read three books at a time-a literary work, a history and a murder mystery. I listen mainly to classical music, including contemporary classical music, although I do like blues and I was in a rock band.
We live in a fast-paced society. Most people are in a hurry to get somewhere before the other guy. In many cases it’s a me-first mentality and the heck with the other person. How long will this go on? Where is our sensitivity or courtesy for others?
There are many reasons for the speed to nowhere: computers, television, Internet, cell phones, iPod, BlackBerry, e-mails, movies and game consoles to name just a few.
If you are speeding there are many things you will miss en route to your destination. If you slow down a little, you will have time to “Stop and Smell the Roses,” as Mac Davis says in his song. Or as singer Kenny Chesney says, “Don’t Blink.” He says the secret of life is don’t blink. Before you know it you’re 6 years old. Take a nap and you’re 25 when you awaken. “Trust me friend, a hundred years goes faster than you think. So don’t blink.”
Things you can do today: help a fellow employee; go over and say hello to a neighbor you haven’t seen for a long time; visit a hospital and bring some cheer; go shopping for an older person who is unable to or does not have a car; read a story to a child; buy a bouquet of flowers for your spouse; give a helping hand to your favorite charity; give your son or daughter a hug. The list goes on and on.
Fast or slow. Which road should you take? The one with the path, or the one with no path? “Two roads diverged in a wood, and I/I took the one less traveled by,/and that has made all the difference.” So wrote Robert Frost in “The Road Not Taken.”
The problem today is that we are all working hard and trying to get somewhere, anywhere, fast. Is it worth it? As Davis says in the lyrics of his song: “You’ve got to count your many blessings everyday. There’s a whole lot more to life than work and worry.”
In today’s business world, the existing rules of competition no longer apply.
Today, businesses must compete with more than just the guy or gal down the street. They must compete on the Internet, e-mail, eBay, Google, Yahoo and various companies in their industry.
Former Secretary of State Colin Powell once said, “There are no secrets to success: Don’t waste time looking for them. Success is the result of perfection, hard work, learning from failure, loyalty to those for whom you work and persistence.”
But the most important thing is to know your competition.
Who are they? What makes them successful? What do they have that you don’t have? Are their employees pleasant? How does their service rate? Do they carry a full line of merchandise? What perks, compensation and benefits do they offer employees that you don’t have?
To what extent are you or your competition committed to improving the local community? Do you encourage people of differing human qualities (diversity and multiculturalism)? Do you reward your employees for a job well done, or through an awards program? Are you marketing, merchandising and advertising your products and services to best attract and keep customers?
Over the years, we’ve seen various technologies emerge, including the telephone, the telegraph, the mimeograph machine, the photocopy machine, the fax machine, the calculator, the computer, cell phones, the BlackBerry and teleconferencing, etc.
But what will bring customers back more than anything is to have the best personal service unmatched by your competitors along with quality products. Remember, business success is a long-term thing, not short-term.
It’s a proverbial chicken and egg question: What comes first - a great company to work for or great people who work there? In the minds of many, it might not seem like much of an issue. But after connecting with HR directors and executives at each of the 101 Best and Brightest Companies to Work For, we think it’s a bit of both - great companies and the great people in them. And when it comes down to it, nearly all agreed - without good people, an organization will invariably come up short.
Airfoil Public Relations
Industry: Public relations Employees: 58
Locations: Southfield, Mich. and Redwood City, Calif.
Founded in 2000 just ahead of the dot-com bust, Airfoil has succeeded beyond any early expectations. For co-founder Lisa Vallee-Smith, the firm’s “higher thinking” tagline is about people. “We seek out and reward employees who can think creatively and act quickly,” she says. “From the top down and every other angle, all employees have a say and a stake in the agency and its success.” Retention is a top priority. And with a “We have fun” core value to live up to, she’s been known to arrive at the agency’s annual meeting garbed in mask, snorkel and fins-and a backpack full of $100 bills.
Allied Group CEO Michael Nixon says the company, with its ‘promote from within culture,’ is a place where work-life balance is alive and well. Add a great benefits package and flexible work schedules to the mix and Nixon says growth is sure to be on the horizon. In five years, he predicts, Allied Group will be a bigger company, yet not one that’s insensitive to the current culture, which Nixon says is family oriented. “It is extremely important that we not lose sight of what makes us a great company to work for. We’ll always strive to be that place.”
Altarum, an Ann Arbor-based nonprofit research institute, is working to become the nation’s preeminent provider of objective health systems research and solutions. In doing so, it boasts a collegial and collaborative work environment that gives staff the opportunity to grow professionally while being rewarded with HR systems that promote work-life balance, all while they work on transforming the nation’s health care systems. Respecting employees is part of that undertaking, says CEO Linc Smith, who sees growth on the horizon but with the same values Altarum has sought to instill. “We trust we won’t have lost what we so value today,” says Smith.
American Axle & Manufacturing
Industry: Automotive
Employees: 11,000
Locations: 27 locations in Detroit area and worldwide
One of the key ways this powerhouse automotive supplier attracts employees is its world-class mentoring program. The company, recognized as an ethical company with strong leadership and a growing global reach with international opportunities and a strong financial base, also offers multiple opportunities for educational advancement and distinguishes itself in the variety of assignments available to employees. Created when Richard E. Dauch and a team of investors acquired a number of former General Motors plants in 1994, AAM is expected to continue to expand its global footprint, product development and worldwide sales, which, in turn, could mean even greater opportunities for employees.
CEO Michael E. Tobin says building a positive experience makes good business sense, at least one reason why American Community Mutual Insurance Company spends so much time creating a culture that values employees. “It’s easy to come to work to a positive experience,” says Tobin. A big part of that is the development of appreciation and a partnership with employees who are, as a result, “genuinely engaged in the success of our organization.” American Community hosts programs that encourage healthy lifestyles and supports employees in activities that support charity and community involvement. “It’s so we can all help others,” says Tobin.
American Diabetes Association
Industry: Nonprofit
Employees: 900, 12 of which are in SE Michigan/Detroit
An integral part of each year’s “101 Best and Brightest” program is the opprtunity to connect with people from other organizations.
What is at the top of the list of reasons people will want to work for the American Diabetes Association? The organization’s “critical and meaningful mission.” Add in a competitive total rewards package and a philosophy that sees investment in technology to make processes simpler for employees and it’s easy to see why the Southeast Michigan branch made the list. A combination of special events to honor individuals who are being recognized for their efforts and flexibility of work hours are seen as contributing to the health of the workplace. Some call it having a great balance between having the heart of a nonprofit and functioning like corporate America.
How did Amerisure become a premier employer? CEO Richard Russell says it’s about focusing on excellence and optimizing customer service through extraordinary service. “This commitment is so ingrained in the culture -¦ that it is readily apparent to applicants.” He says it works on the retention level as well. “They want to stay at Amerisure because of the pride and personal rewards they receive for doing an extraordinary job,” says Russell. With two of Amerisure’s most profitable years occurring in 2005 and 2006 (with that level of profitability continuing in 2007), Russell says the success is “achieved through our people.”
“Bottom line, recruiting is our business, so it is a true focus for our staff,” says Arrow Strategies CEO Jeff Styers, who recognizes the importance of having staff (most of whom work offsite) feel like family. Taking note of events such as anniversaries or service that goes beyond the call is part of the strategy. So is focusing on building a team that works well together. “We have been known to create positions that suit individual needs and desires while providing a value-add to the company,” says Styers, who also focuses on promoting from within (rather than seeking outside leadership).
In the midst of a rebranding effort that will see three separate companies come together, CEO Scott Taylor says Artisan/NLM Enterprise is nonetheless building a “great word-of-mouth reputation.” Taylor says technology leadership in the logistics industry is only part of it. “It’s more so due to the genuine investment we make in our employees. We are able to retain employees because we deliver on that reputation and provide them with fulfilling careers and a vast opportunity for growth.” The company puts its money where it counts as well, basing pay on a straight eight hours with no deduction for lunch or breaks.
ASG Renaissance
Industry: Professional services Employees: 225
Locations: Six (Dearborn and Farmington Hills, Mich., California, South Carolina, Washington, D.C., Ontario, Canada)
A human capital, marketing and consulting services organization, ASG Renaissance attributes its success in attracting and retaining employees to a combination of benefits, company leadership and a work environment that focuses on open, honest communication and feedback. CEO Lisabeth Ardisana says the result is “a relaxed environment where it’s easy to get along with people and work towards the common good.” Being upfront about how the company is doing financially adds to the high loyalty and buy-in factor, says Ardisana. “Everyone is extremely dedicated to doing exceptional work and we all share the same high personal and professional standards.”
Atwell-Hicks
Industry: Land development consulting Employees: 450
Networking is critical for sharing best practices.
Rock stars? Atwell-Hicks employees might not be on the music stage, but they are in the spotlight as far as people like Kathleen Trader, human resources group leader, are concerned. Trader says the company’s size-”the resources of a large firm, the agility of a small firm”-makes it “perfectly positioned to offer more leadership opportunities, professional development and performance incentives, in addition to the opportunity to work on dynamic projects nationwide.” Training is clearly a priority, and a formalized employee feedback program helps make sure individual ideas don’t get overlooked. Nearly 70 percent of new hire referrals come from staff referrals.
CEO Ben Maibach III says Barton Malow’s “solid reputation for integrity” among clients, subcontractors and colleagues is frequently mentioned by new hires as a reason for them pursuing employment with the design and construction services firm. And still the company wants to know how it can be better. “One of the first questions we ask ourselves is ‘what could we have done differently?’ and not ‘how did this employee fail us?'” says Maibach. “We hold people accountable but we know there are two sides to every story. We consistently look for win-win solutions while maintaining respect and dignity for our individuals.”
BDO Seidman, LLP
Industry: Public accounting, professional services
Being in the public accounting business these days has its own set of challenges, all of which require talented individuals to tackle. BDO Seidman is no exception, but the organization excels in being able to attract the professionals it needs to serve a growing client base. The practice, a member of BDO International, invests in internal communications, mentoring, tuition reimbursement, student loans and training. The result is a strong professional and personal growth culture and a partner-to-staff ratio that’s one of the lowest in the industry, which translates into greater opportunities early in a professional’s career.
CEO Jeanne Carlson has one word for why Blue Care Network is able to attract and retain employees: culture. “Our vision, mission and values were created by employees, for employees and we work hard to honor these commitments,” says Carlson. It also means listening, which management does regularly. “This input gives us opportunities to learn and adjust our business to meet the needs of our employees and they, in turn, take care of our customers.” As proof, Carlson points to a Work/Family Care program, developed in partnership with union leadership, that includes resources to help with homework and other work-life topics.
Cambridge Consulting Group
Industry: Benefits consulting Employees: 48 (in Troy)
Locations: Troy and Grosse Pointe, Mich.; Cleveland, New York
With word-of-mouth being the primary means of recruitment, this benefits company (which specializes in employee and executive plans as well as estate planning), is able to share in its success. As Executive Vice President Stacey O’Keefe explains, working at Cambridge includes “unbelievable teamwork” and an atmosphere where it’s “work hard, play hard” throughout the year. It’s also one where success is celebrated. “Everyone is aware of what the goals are,” says O’Keefe. “On a quarterly basis, we discuss those and on a monthly basis we get together for a breakfast or a lunch. It really is a great place to work.”
Staying on top of changes in legislation and regulation takes a lot of work and that means making a continual investment in employee training, something Donald Clayton knows all too well. Doing so will help the Southfield firm stay ahead in the face of strong competition. The firm does its part to participate in international organizations, the better for employees to “provide resources for our clients.” A culture of caring includes trips to Cedar Point and serving homemade cakes to celebrate promotions. Clayton says communication is key. “It assures our work as a team is fundamental, while valuing individual contributions to our team goals.”
Clear!Blue, whose clients include Jeep, Domino’s and Dodge, was founded on the idea of creating a unique environment where people would actually want to work. “The reason we have tried so hard to create and maintain that kind of place has a lot to do with ‘Inspiration!’ our first core value,” says CEO Todd Smith. At Clear!Blue, HR is called “People and Culture” and every year, Clear!Blue Camp brings the firm’s Chicago, Birmingham and Germany offices together for an intensive two-day session where work is checked at the door, the emphasis being on sharing company vision and unifying team goals.
West Michigan’s 101 Best & Brightest Companies To Work For
2007 Winners
West Michigan winners were recognized in May and were featured in the Grand Rapids Business Journal
-¢ Acoustics By Design, Inc.
-¢ American Axle & Manuf., Inc.
-¢ American Physicians
Assurance Corp.
-¢ Andy J. Egan Company, Inc.
-¢ Art Van Furniture
-¢ ATEK Medical
-¢ Atwell-Hicks, Inc.
-¢ Battle Creek Health System
-¢ Baudville, Inc.
-¢ BDO Seidman, LLP
-¢ Beacon Services, Inc.
-¢ Beene Garter, LLP
-¢ Borgess Health
-¢ Business Strategy, Inc.
-¢ Byrne Electrical Specialists
-¢ Cargo-Master, Inc.
-¢ Clark Construction Company
-¢ Clark Retirement Community
-¢ Clipper Belt Lacer
Company/Flexco
-¢ Coldwell Banker AJS-
Schmidt – Cascade Office
-¢ Cole’s Quality Foods, Inc.
-¢ Comcast – Western Michigan
-¢ CompHealth Grand Rapids
-¢ Consumers Credit Union
-¢ Contractors Mechanical
-¢ CPR, Inc.
-¢ Crowe Chizek and Company
-¢ CSM Group
-¢ Cynthia Kay and Company
-¢ Davis Dental Laboratory
-¢ Deloitte & Touche USA LLP
-¢ DVK Construction
-¢ Easter Seals-Michigan, Inc.
-¢ Enterprise-Rent-A-Car
-¢ Ernst & Young, LLP
-¢ Exhibit Design Consultants
-¢ Family Christian Stores
-¢ Fishbeck, Thompson, Carr &
Huber, Inc.
-¢ FourSquare Financial
Group/MassMutual
-¢ Francis Marketing, Inc.
-¢ Grand Rapids Community
Foundation
-¢ Gymco Sports
-¢ Harbor Industries
-¢ Harold Zeigler Auto Group
-¢ Herman Miller, Inc.
-¢ Holland Hospital
-¢ Hope College
-¢ Hilb Rogal & Hobbs, Inc.
-¢ HUB International Insurance
-¢ Hungerford, Aldrin, Nichols &
Carter, P.C.
-¢ Huntington Bank
-¢ Independent Bank
-¢ InterCare Community Health
-¢ Jackson National Life
Insurance Co.
-¢ Kendall Electric, Inc.
-¢ L-3 Communications Avionics
Systems, Inc.
-¢ Law Weathers & Richardson
-¢ Leisure Living Management
-¢ Life EMS Ambulance
-¢ Member First Mortgage
-¢ Mercantile Bank of Michigan
-¢ Mercy General Health
Partners
-¢ Michigan Medical PC
-¢ Mill Steel Company
-¢ Miller Johnson PLC
-¢ Nimlok Grand Rapids
-¢ NTH Consultants, Ltd.
-¢ Nucraft Furniture Company
-¢ Omni Community Credit
Union
-¢ Opportunity Concepts, LLC
-¢ OtterBase, Inc.
-¢ Pine Rest Christian Mental
Health Services
-¢ Pinnacle Construction Group
-¢ Plante & Moran, PLLC
-¢ Porter Hills Retirement
Communities & Services
-¢ Prima Communications, Inc.
-¢ Priority Health
-¢ Progressive AE
-¢ Regal Financial Group
-¢ Rhoades McKee PC
-¢ Rockford Construction Co.
-¢ Saint Mary’s Health Care
-¢ Schawk, Inc.
-¢ Seaman’s Air Conditioning &
Refrigeration, Inc.
-¢ Service Express, Inc.
-¢ Sparrow Health System
-¢ Specialty Heat Treating, Inc.
-¢ Spectrum Health Hospitals
-¢ Stahlin Enclosures
-¢ The Campbell Group
-¢ The Image Group
-¢ The Rehmann Group
-¢ Triangle Associates, Inc.
-¢ Trillium Staffing Solutions
-¢ Van Wyk Risk & Financial
Management
-¢ Varnum, Riddering,
Schmidt & Howlett LLP
-¢ Warner Norcross & Judd LLP
-¢ Windquest Companies, Inc.
-¢ Workstage, LLC
-¢ Yeo & Yeo, CPAs &
Business Consultants
-¢ Zeeland Community Hospital
Comcast
Industry: Cable related services Employees: 4,400 in Michigan
The cable company, now diversified into phone and Internet service, has also widened its reach as far as benefits that include the usual medical and such, but also complimentary and discounted cable and other services, plus tuition reimbursement and stock plans. Keeping in touch with employees is a priority as well, through a variety of interactive communications. Employees are encouraged to seek resolution for issues and concerns and an annual survey has 95 – 98 percent participation for the last two years. Dave Buhl, senior vice president of Comcast’s Michigan Region, says being a leading edge technology provider will only enhance employee relations in the future.
Community Choice Credit Union
Industry: Financial services Employees: 160
Locations: Warren, Milford, Detroit, New Hudson, Livonia and Redford, Mich. www.comm-choice.coop
It may be the third year winning for this organization, but only the first under this name (two-time winner Research Federal Credit Union merged with Community Choice in August). What hasn’t changed, according to Tracy Jones, vice president of human resources, is the high level of commitment by employees. Part of that may be due to the feedback they get. “We have semi-annual evaluations, a coaching process, and an internal service survey that allows us to share feedback and foster development.” The “family friendly” environment comes with “a high sense of empowerment and respect for team members and the contributions they make,” adds Jones.
When Community Financial CEO William Lawton talks about a “good working relationship with employees,” he’s talking about emphasizing teamwork and two-way communications. “By working together productively, both Community Financial and our employees will succeed,” says Lawton. “There is real job security when we provide top quality service.” Lawton says having policies and procedures in place to resolve any problems that occur is key, as is valuing each employee as an individual. Leaders meet monthly with employees to provide a one-on-one communication forum and in the future Lawton expects to see “an even more innovative culture that nurtures cutting-edge employee friendly programs.”
In the midst of one of the toughest economies in the nation, Computer and Engineering Services is fighting back with a full employment package that’s focused on what employees need. Vice President Jay Miron points to communication practices he says helps when it comes to retention. Miron says employee relations begins even before employees come on board and extends through quarterly luncheons, monthly check-up calls, family events and annual performance reviews. When employees voiced concerns over rising gas prices, CES responded with a weekly gas card raffle, a small gesture, perhaps, but one that Miron says was received positively. “Our employees appreciate the fact that we listened.”
When Computer Consultants of America is looking for help, it turns to employees, who serve as the primary source of new hires. Once on board, employees benefit from a process that seeks to develop individual career plans for everyone in the organization, providing them with guidance, training, certifications and higher education. Says CEO Nicole Meathe, “We (do it) by implementing simple kindness combined with hard work to ensure our presence in the information technology market.” Five years from now, the theme should be much the same. Just quicker. “It is our vision to respond even faster to our employees’ needs and continue to provide outstanding support and guidance.”
It’s been four years since several thousand Compuware employees were asked to relocate from suburban facilities to the company’s new downtown Detroit headquarters. Today, the landmark Campus Martius facility includes a wellness center, onsite daycare for 400 children, all-day kindergarten and even a doctor’s office. Thomas Costello, senior vice president of human resources at the software development and services firm, says it’s all part of delivering a great place to work. “The nature of our business, which is about delivering cutting edge technology, means we need to attract and retain people,” says Costello. “Having a happy and engaged workforce only makes you more productive.”
Conway MacKenzie & Dunleavy
Industry: Professional services Employees: 65
Locations: Birmingham and Grand Rapids, Mich., Chicago, Dayton, Ohio, Shanghai www.c-m-d.com
Twenty years ago, Van Conway and Don MacKenzie linked up to provide specialized turnaround consulting and litigation support services. Today, the firm has five offices and some 65 employees, but it’s still a family atmosphere. “Everyone knows each other well and enjoys working with one another,” says Conway, a senior managing director. An open door policy fosters interaction with all levels within the organization, one where the culture “encourages everyone to reach their highest potential.” Work-life balance, Conway says, is a company value that plays out in various forms, including a recent trip to Cedar Point for employees and families.
CEO Anthony Carnarvon says developing an organization where employees are genuinely happy is about providing a friendly work environment, comfortable work conditions and a great benefits package. “We are proud that our employees take pride in their jobs, are committed to our organization, and enjoy coming to work.” They also appreciate life outside work, supported and encouraged by the credit union, as well as the corporate commitment to communities and the charitable organizations to which it donates. Carnarvon sees a future where growth and low turnover dominate. “Our employee longevity and continued employee development will allow us to continually strengthen our employee relations.”
Deloitte & Touche USA LLP
Industry: Professional services Employees: 1,057 (in SE Michigan)
Last year’s “Best Practice” session on employee loyalty and customer retention was facilitated
by Ken Pool, of the Michigan Business and Professional Association, and featured presentations by Cassandra McKinney and
Maria Marcotte.
At Deloitte, offering the opportunity to serve the country’s foremost organizations is said to be the most compelling reason for its success in attracting and retaining employees. Once onboard, SE Michigan Offices Managing Partner Joe Angileri says employees get special attention on an ongoing basis. “We are proud of our ability to make personal connections to coach and mentor everyone as an individual in an organization of our size. We pride ourselves on the individual attention necessary to help our people grow and develop.” And in the future? “Our organization will be well-known as ‘the place to be’ to accelerate your career development.”
CEO Richard DeMaria says empowering individuals to be policy makers within the company has led to higher levels of engagement, commitment and long-term retention. With some 22 percent of employees having celebrated 15 years or more of service in the last year, the loyalty factor is producing dividends. DeMaria underscores that loyalty by treating employees as insiders. “Employees understand that each of us shape the company’s destiny every day and have meaningful input on methods for doing our jobs.” Volunteerism is also encouraged, the reward being “the knowledge that we have made a difference and have a strong voice.”
A special place requires special people. For the Detroit Athletic Club, congeniality is the culture and J.G. Ted Gillary, executive manager, says hiring “likeable” people is key to the organization’s success. “They are our most important asset in attracting and keeping a stable workforce,” says Gillary, who adds that coming to work in a beautiful and elegant 92-year-old facility has its own reward. “It’s simply a great place to work.” The culture also requires employees to work closely with each other. “There is nothing more comforting and encouraging than to be among people where trust and respect is the norm. Our organizational culture is also our product.”
CEO Larry Alexander says people not only understand the organization’s mission, goals and priorities, but how their individual responsibilities fit with those goals. “We’re a people-oriented industry rather than one that focuses on product.” At the same time, he recognizes the very real need for work-life balance. “People are encouraged to do things outside their daily job functions, which creates a cross functional atmosphere. People help out wherever there’s a need and that helps us remain a successful organization.” Alexander says being in the center of “everything exciting that’s happening in the Metro area” makes the convention and visitors bureau a great place to work.
The largest credit union in Michigan and one of the largest nationwide, DFCU Financial says it’s committed to delivering “outstanding member experiences.” CEO Mark Shobe says the organization recognizes the link between member satisfaction and that of employees. “Our employees believe in and live our brand, which is to deliver highly personalized service and expertise,” says Shobe, who revamped the DFCU compensation system. “Only the highest level of personnel received bonuses. We increased the pay scale to ensure that it was competitive -¦ and we also introduced gain sharing. My feeling was that all employees are responsible for the success -¦ and all should share in that success.”
Domino’s Pizza
Industry: Quick service restaurant
Employees: 500 at Ann Arbor’s World Resource Center
Locations: Headquarters, three regional offices, 8,449 stores worldwide
Experts on employee performance include Shaun Wilson, Steve Morse, Teresa Weed Newman and Ron Pawczuk.
“Exceptional people on a mission-¦” For Domino’s Chairman and CEO David A. Brandon, it’s a recipe for continued success in a competitive business. “Our approach to attracting and retaining exceptional talent is to find out how our team members want to be treated, and treat them that way,” says Brandon. An open-door communication policy, development moves and extended learning courses are ways that’s played out. Brandon, who has Domino’s 10,000th store in his corporate crosshairs, knows he can’t get there without good people. “We work hard every day to make Domino’s an employer of choice today and will continue to do so.”
Human Resources Director Kathleen Herwick says employees at DTE Energy take their work seriously -¦ and they’re rewarded for that dedication. “For every dollar paid to employees in base salary, our company contributes an average of nearly 87 cents more for other benefits,” says Herwick. A free wellness program (“Energize Your Life”) and a competency-based performance management system that encourages accountability are among initiatives she says makes DTE Energy “a model workplace.” Numerous programs for promoting diversity and a mentoring process that helps employees with problems that may interfere with job performance is part of what makes that possible.
For Jackie Hooper, vice president of human resources at Easter Seals-Michigan, “finding the right people to be on the bus” is an important first step in creating a successful organization. “We need people who believe and want to support Easter Seals and its mission. A lot of the screening practices ensure that the people we bring on board have the same core values as we have.” Hooper says a strong staff recognition program and a free HMO option for health insurance are among the features that keep turnover rates low. “People want to feel they’re making a difference. We’ll always be looking for employees who are mission driven.”
Being in an organization where team support is a dominant trait has its own rewards, says Employees Only CEO Mario Apruzzese. The company, which “leases” employees (handling payroll, benefits administration and the like), is one where “everyone tries to help out everyone else.” Apruzzese, a CPA who founded the firm, says an attractive benefits package combined with flex scheduling, job sharing programs and paid time away from work to participate in charitable or civic activities are among the strengths of Employees Only. He also sees a future where ever-increasing standards will make it challenging to provide a great work environment. “But that’s why it means so much.”
Enterprise Rent-A-Car
Industry: Vehicle rental
Employees: 850 in southeast Michigan and northwest Ohio
Hire entry level four-year college graduates, train them and promote from within. That’s the Enterprise model, says Chris Gould, area vice president and general manager, who says “fun and friendly” are among the key reasons employees cite in discussing their workplace among friends or family. Gould sees a future where continued growth means even more opportunity for employees. “We will continue to offer fantastic career opportunities,” says Gould. “Our corporate business sector continues to grow and our managers focus on growing our daily rental fleet with every activity. This is what will continue to provide career opportunities for our employees.”
ePrize
Industry: Internet promotions Employees: 350
Locations: Six (Detroit, Chicago, New York, Los Angeles, Dallas, London) www.eprize.com
The soldout awards program reveals the much- anticipated Elite category winners.
ePrize CEO Josh Linkner says the company mixes hard work with play to “keep team members on top of their game.” Company-sponsored events like an annual summer party, a Halloween gathering (“eeekPrize”) and March Madness festivities are part of the mix. “We take a holistic approach to employment and do our best to provide team members with ePrize perks they can’t find anywhere else,” says Linkner. With a goal of at least doubling the size of the organization in five years, Linkner says maintaining the culture and values will be key. “These rock-solid principles are the lifeblood of this company and will continue to drive everything we do.”
Progressive. Flexible. Inclusive. They’re three words Jeff Bergeron, Ernst & Young’s Detroit office managing partner, uses to explain why the professional services organization enjoys success in its recruiting and retention efforts. And diversity. “We are also committed to continuous improvement opportunities for our people as demonstrated by our investment in learning and mentoring initiatives,” says Bergeron. “When our people achieve their full potential, our clients benefit and our business prospers.” Once employees have the technology tools and flexibility to balance work and personal life demands, they “take individual responsibility for their professional and personal growth and for performing at their best every day.”
A reputation for “unequaled client satisfaction” is what allows Etkin Equities to recruit the best talent, who benefit from a healthy, flexible and productive work environment with work-life balance. Principals Douglas M. Etkin and James A. Ketai attribute the company’s success to doing the right thing and the work ethic that they’ve tried to instill. Oh yes, they’re also “nice people.” Not a bad combination to have when you’re hoping to continue to grow. But Etkin, growth or not, wants to maintain “the high level of employee satisfaction we have today” in an environment where people “can be themselves without worry of the dreaded office politics.”
FANUC Robotics America, Inc.
Industry: Automation Employees: 1,000
Locations: Rochester, Mich., with nine regional offices in U.S. and abroad. www.fanucrobotics.com
The company may be in the business of making labor-saving robots, but that doesn’t mean it doesn’t care about people-or even those who work in customer companies. Indeed, an initiative (www.saveyourfactory.com) is intended to help companies retain their manufacturing base by having them fully and objectively analyze the advantages of technology, including robotic automation, before deciding whether to source overseas. For FANUC employees, an ongoing emphasis on empowerment drives HR efforts, which helps paint the biggest picture of all: 99 percent of FANUC customers say they’d continue to buy from the company.
A family company from its inception in 1976, the Farbman Group has tried to maintain that family oriented environment, says Human Resources Director Kristin Higginbotham. An attractive benefits program, workplace flexibility, an internal “Farbman University” training program and outings throughout the year, as well as a wellness program and bi-weekly visits by a massage therapist, all contribute to an environment where people are staying longer than ever. Higginbotham hopes to see that trend continuing, even in an organization where turnover is not a problem. Still, “we hope we’ll have even more long-term employees than we do today.”
Employee engagement is the rule when it comes to working at Fifth Third Bank. And for good reason, says President and CEO Greg Kosch. “We believe that engaged employees create positive, meaningful customer experiences. Employees are enjoying their success and as a result, refer their friends and family to the bank, both for employment opportunities as well as financial services.” Kosch says creating “exceptional workplaces that encourage individual work-life” balance is good for business. From a larger perspective, he says employees know they are “helping to build better tomorrows” for customers, a reward in itself.
CEO Jim Townley says he knows who he works for at FTC&H. “The fact is we are inclusive, and work with (not for) each other,” he says. “We have broad-based employee ownership that allows us to chart our own path and growth initiatives. The emphasis is on professional development and providing the latest technology so staff can do what they enjoy and do best.” Townley points to work-life balance, the utilization of individual talents and a mentoring program as being among the initiatives of which he’s most proud. And for good reason. “A staff member who is well-rounded and puts family first does superior work.”
Dave Buhl of Comcast shares his insights after receiving the Elite award for Recruitment and Selection.
Fresh ideas. Value diversity. Foster creativity. They’re all part of Flagstar Bank’s strategy for attracting and retaining employees, an important factor for this growing company. Flagstar also boasts an open-door policy, which it says keeps the lines of communication flowing freely at all levels of the organization. That, in turn, allows the bank to take advantage of good ideas and move quickly to implement them, at the same time being aware of employee concerns. Community involvement through grassroots events and major sponsorships keeps Flagstar connected as well, even as management seeks to maintain a dynamic culture and family like atmosphere.
Walk through the hallways of Garden City Hospital and chances are you’ll run into employees who represent a second or even third generation of family members. Yes, it’s that tight knit, according to CEO Gary Ley, who says promoting a family atmosphere in an organization that’s friendly and caring is part of an organization that was founded in 1947 by six physicians. Today it has a well-earned reputation as employer and health care provider and Ley sees a future that will build on those strengths, with the same values coupled with the latest skills and technology helping to drive continued excellence.
Having developed a reputation for integrity and providing a professional, ethical work environment, Ghafari President & CEO Kouhaila Hammer says a combination of corporate stability, worldwide career opportunities and a focus on technology are responsible for the firm being able to attract and retain employees. It’s also a challenging environment, but that’s part of what keeps talent in place. As for the future, Hammer says the company will work hard to maintain its leadership. “We expect to continue the trend of growth through greater service offerings but no matter how much we grow, we will never compromise our focus on customer service or our ‘do what it takes’ culture.”
CEO Randal Bellestri says achieving success in attracting and retaining employees is about the “total package” that comes from working at Global Tooling Systems. “We start by hiring qualified people, and offer them a safe, clean environment, pay them above-average wages, and provide them with enough work to keep them from any type of layoff.” Keeping that momentum going is also an important factor. “We communicate the philosophy that we all rise and fall together, and praise them equally for a job well-done. When your employees are happy, word spreads throughout the industry and local areas, and this attracts other qualified personnel.”
Grant Thornton LLP
Industry: Public accounting Employees: 175 (5,000 + globally)
“What you see is what you get.” Paul V. Wolber, office managing partner at Grant Thornton, says the phrase is at the heart of why employees join the public accounting firm. “We have been told there are many reasons for people being attracted to us from an employment perspective, not just one.” People are chosen to be part of the selection process for their ability to convey the Grant Thornton Experience to candidates. Add in the challenges of the profession, the growth of the industry, and retention “almost takes care of itself.” A doubling of the staff over the past three years would seem to support that statement.
While loyalty is a word that’s sometimes over-used, that’s not the case with G-Tech, where the very first person hired by President Theresa G. Ghafari in 1991 is still with the organization. With a reputation for integrity, a professional, ethical work environment, consistent growth, and nationwide career opportunities, employees are recognized for their talents and contributions through advancement. Ghafari says while it may be “easy to promise more than you can deliver in an effort to recruit or place an employee,” it doesn’t happen at G-Tech. “Our credo here is ‘do what is fair, do what is right, and don’t worry about anything else.'”
Handleman Company
Industry: Home entertainment distribution and category management
Employees: 3,000
Locations: Seven (U.S., Canada, U.K., Latin America)
Okay, you just saw Kid Rock walk down the hall. And Trisha Yearwood threw a concert -¦ in the cafeteria. For employees at Handleman Company, it’s all part of the average day. Yes, the firm is undergoing its own financial struggles, along with the rest of the music industry, but Handleman isn’t about to release its grip on core values that have made it a “101 Best Places to Work” for six years running. Perks such as “stork” parking for expectant mothers and dry cleaning pick ups are among the “no or low cost” initiatives in a company where everyone’s treated like family.
Harley Ellis Devereaux
Industry: Architectural, engineering, planning, construction
Employees: 500
Locations: Detroit, Cincinnati, Chicago, Los Angeles, plus Bakersfield, Riverside and San Diego, Calif.
Never content to rest on its laurels, this premier firm is now taking a leadership role when it comes to sustainable development, with a commitment to develop best practices throughout the organization. Employees will benefit from a corporate commitment to pay for the cost of examination to become LEED-accredited professionals, says Chairman and CEO Dennis King. “It’s something we’re always doing for the people who work here,” he says. “Elevating the level of knowledge and talent of staff members is a good business decision and one that makes our employees more valuable in their role as engineers and architects.”
Henry Ford Health System
Industry: Health care Employees: 17,000
Locations: 200, including six hospitals, 25 medical centers
Henry Ford Health System calls its rewards and recognition program “Total Rewards,” a reflection of offerings as diverse and unique as its employees. Whether it’s flex benefits, retirement and pension plans, wellness, child care, employee assistance, or tuition reimbursement, each are considered an effective recruitment and retention initiative. Employees, who set new standards for diversity (a few of whom are in their 80s), come to work in a challenging, invigorating environment, says CEO Nancy Schlichting, who adds that Henry Ford’s leadership “provides a spirit of cooperation and desire for each employee to succeed, not only as an individual, but as part of a work team as well.”
Huntington
Industry: Banking
Employees: 550 (East Michigan region); 13,000 throughout Midwest
Huntington says it’s “invested in people” and one might think that’s referring to the bank’s customers. But Michele Symkowiak, regional HR manager, says Huntington has been able to create a culture that focuses on people-associates who look to HR as a first place to turn, not as a last resort. That proactive strategy helps cut down on the number of issues for which HR needs to be involved. “They seek us out at the front end,” says Symkowiak. “We’re very proud of the relationship we’ve established.” With Huntington being involved in the various communities in which it does business, employees are encouraged to do their part as well.
Locations: Southfield and Grand Rapids, Mich., Ohio, North Carolina, Connecticut. www.imagesoftinc.com
Just after Jackie Wolf of Comerica Bank received an Elite award in the Diversity and Multiculturalism category, she shared her insights with Emcee Murray Feldman.
Founded 11 years ago by Michigan-born entrepreneurs, ImageSoft has no question as to why it is so successful: its people. As CEO Scott Bade explains, it’s the result of hiring “bright passionate people. Who inspire, encourage and challenge each other every day.” Employees find themselves in a position where an open exchange of ideas is encouraged and thinking beyond the norm is expected, no matter what position. They also work hard. “We have high expectations,” says Bade. An open communication strategy that combines regular team meetings, e-mail and voice mail for updates is part of it, but “nothing is more effective than simply walking through an open door.”
When it comes to human resources strategy, owners Don Czerniewski, Paul Gutierrez and Glen Dantes have a simple goal: doing things that make employees of Industrial Control Repair want to work there. It may be flexible hours or superior working conditions, but open and regular communications is seen as one reason for the ability to retain people. “We have a lean initiative and we involve employees in a lot of the day-to-day decisions,” says Czerniewski. “If someone does leave, it’s usually for a reason we can’t control.” Continued growth is expected to create additional opportunities for employees in the months and years ahead.
A supplier of plastic fuel systems, Inergy has relied, successfully, on word-of-mouth as a recruiting strategy. When prospective employees do come on board, they’re presented with a broad spectrum of employee relations practices, many of which wouldn’t be found outside a much larger organization. Examples: succession planning, international assignments, and training and development options. But still, it’s about the people. “The most common thing we hear from our employees is they enjoy the people,” says CEO Mark Sullivan. “Working with excellent people makes life at work more pleasant and interesting and provides our employees with opportunities to learn and grow professionally.”
JARC
Industry: Social services Employees: 230
Locations: 35, including group homes and independent living facilities
With health care costs continuing to rise, having full family coverage with no employee contribution is an even more compelling reason to work for an organization like JARC. As Executive Director Joyce Keller points out, having the best pay rate for direct care staff in the area is another. “Not only are our employees rewarded financially and through our amazing benefit package, but the work they do is always rewarding because each person who works for JARC makes a difference in the lives of the people we serve and their families,” says Keller. “We are creating the best possible life for people with developmental disabilities.”
Known as a “career builder,” KPMG further promotes that reputation with an extensive Web site that encourages employees to look at opportunities throughout the firm, even if it means changing practices. Add in alternative work arrangements and a philosophy that speaks to giving back to the community and it’s easy to see why so many have chosen the firm upon which to hang their professional hats. “We let our employees drive their careers,” says Detroit Office Managing Partner Jeff Dobbs. “People like to work here because they really enjoy the people they get to work with on their teams.”
When others answer “people” when asked what distinguishes a company from the competition, you’d be wise to listen. So it is that Thomas P. McGraw, founder and president, is relentless in his pursuit of finding quality people. “The right fit is more important to us than simply filling the job with anyone other than an exceptional candidate,” says McGraw. Having been successful in fostering a fair, open and honest environment where opinions and feelings are respected, McGraw says mutual trust has been the result. Having grown from three employees to a staff of 60 in the last 10 years, McGraw says the organization is ready for any change future growth will demand.
Meadowbrook Insurance Group
Industry: Insurance Employees: 670 in Michigan
Locations: Southfield, Grand Rapids and Saginaw, Mich., plus California, Kansas, Minnesota, Nebraska, Florida, Tennessee, Alabama, Ohio, Nevada. www.meadowbrookinsgrp.com
With work-life balance being at the top of issues of interest to Susan Cubbin, vice president of human resources at Meadowbrook, it’s no wonder that the program she’s most proud of is the “Get Fit, Stay Fit” wellness initiative. It’s also a statement of respect for employees. “We care about them, we want to help them succeed, and we provide an environment where they really want to work.” The future for Meadowbrook should be different-but better. “We’re always trying to add things that enhance and improve the current status,” says Cubbin. “It will be different in the sense that we’ll be looking at better ways to do that.”
MidWest Financial Credit Union
Industry: Financial services Employees: 62
Locations: Headquarters in Ann Arbor, Mich., plus six branches
Originally the University of Michigan Hospital Employees Credit Union when it opened in 1938, MidWest is now a community based financial services player. For Teresa Myers, vice president, human resources, the mission is “looking for individuals that will provide ultimate service to co-workers and members on a daily basis.” Medical benefits, tuition assistance, ongoing training opportunities, and “a pleasant, technology-oriented work environment” are part of the MidWest promise to job seekers. Even with the growth, members of the university community haven’t been forgotten; in 2003 it launched its UMHS Financial brand to meet the needs of the very group of people the credit union was founded to serve.
Mill Steel
Industry: Steel fabrication Employees: 140
Locations: Headquartered in Grand Rapids, Mich.; facilities in Melvindale, Mich., Windsor, Ont., Canada, Louisville, Ky.
In a spectacular setting, Jennifer Kluge, left, joined Lisa Wicker to introduce the “Best of the Best” overall winner.
When people join Mill Steel, they’re “adopted” into the Samrick family, owners of the firm that Harry (grandfather of President Andrew and father of CEO David) started in 1959. “They feel they’re responsible for an employee’s family welfare as much as they can be,” says People Development Director Tom Stanfield. Once onboard, the caring attitude permeates the organization, so much so that some have called being at Mill “like working at a family reunion.” Not that it isn’t a serious place. “Our goal is for every employee to feel like they’re a small business owner,” says Stanfield. “And we don’t pigeonhole people.”
CEO Christopher Bishop says MiPro Consulting, which focuses on the PeopleSoft enterprise environment, has a number of core values, but the first is, naturally, people. “I’m proud that we can afford to be innovative, that we listen to our employees and hear what they want and what is important to them, rather than just offer cookie-cutter solutions.” Being able to provide work that people find interesting and challenging is also something Bishop is pleased to offer at MiPro. “I think they appreciate being recognized for their individual achievements and not treated as just a number or a cog in the machinery.”
“Our employees see firsthand the impact they have in the lives of our clients and consumers.” That’s how CEO Sheilah P. Clay explains the success of Neighborhood Service Organization in attracting and retaining employees. The private nonprofit human service agency, founded in 1955 with a mission of reaching out to people and empowering them to improve their lives, treats staff like partners. “We cannot do this without them,” says Clay, who adds that “making a difference” is a major reason given for why employees enjoy working at NSO, which has a unique system of locating offices where problems exist in the community.
Netarx, Inc.
Industry: IT consulting Employees: 45
Locations: Farmington Hills, Mich., Ohio, Indiana, Missouri
Now celebrating its 10th year in business, the company was founded by two high school buddies with just $20,000 in personal start-up funds (and today, with no debt). Chairman and president Sandy Kronenberg calls a decade of sustained growth, even throughout the dot-com bubble, “a testament to our sure footing: people, tools and process.” The founders (CEO Duane Tursi is the other) say feedback from teams is an essential first step before any policy or procedures changes are made. Also standard is the Netarx practice of talking to customers, then integrating the knowledge gained into the company.
New Horizons Rehabilitation Services, Inc.
Industry: Nonprofit Employees: 156
Locations: Auburn Hills, Clinton Township, Davisburg, Flint, Madison Heights and Novi, Mich. www.newhorizonsrehab.org
CEO Stan Gramke says the 42-year-old nonprofit, which helps prepare people with disabilities for competitive employment, is one that recognizes staff through internal promotions and advancements. A testament to that is the longevity and retention rate, he says. With “excellent working conditions, hours and benefit package,” the organization attracts people who enjoy working with individuals with disabilities. Employees are encouraged to use their earned time off and maintain a work schedule that is conducive to that type of atmosphere. Gramke sees a future where New Horizons will continue to diversify its services to become more individualized in meeting the needs of people served.
NTH Consultants
Industry: Infrastructure and environmental engineering
Employees: 250
Locations: Headquarters in Farmington Hills; offices in Dearborn, Lansing, Pontiac and Grand Rapids, Mich., Cleveland, Indianapolis, Exton, Penn.
NTH boasts a “self-renewing” annual development program (NTH Project Management Academy) HR Vice President Stephanie Redman says is designed to “produce thoroughly prepared, well-rounded project managers and to encourage teamwork within the firm.” As President/CEO Ben Tiseo says, “we strive to provide excellent service to our clients and to provide an excellent working environment for our employees. Training, mentoring and professional development are key to our success as a firm.” The employee-owned firm, founded in 1968, is a nationally recognized expert in the geo-thermal discipline. “We have earned the respect of our peers and our clients by providing innovative, cost-effective solutions for both unusual and routine problems.”
Oakwood Healthcare Inc.
Industry: Health care
Employees: 9,604
Locations: Four acute care hospitals, two long-term care facilities, one home care facility
At Oakwood, it seems one of the best ways to attract employees (especially hard-to-come-by nurses) is through employee referrals. Keeping them is at least partly a function of Oakwood’s orientation program (with management effectiveness also being cited). Another key part of the health care organization’s employee relations strategy is to listen, gathering input from a combination of satisfaction surveys, feedback sessions, and, in the case of employees who do move on, exit interviews. Add in flexible work arrangements and job sharing, tuition reimbursement and both child and adult day care programs and Oakwood becomes one of the “Best Places” to work.
Orchard, Hiltz & McCliment, Inc.
Industry: Civil engineering, surveying, computerized information systems
Employees: 180
Locations: Headquarters in Livonia; offices in Lansing, Houghton and Auburn Hills, Mich.
www.ohm-eng.com
A clear vision of the corporate goals and objectives is the primary reason given by HR Director Kelly Jackson for the consulting firm’s ongoing success in attracting and retaining employees. That, and “having exciting projects to work on.” Founded in 1962 to serve as the consulting engineer for the city of Livonia (which remains a client), Orchard, Hiltz & McCliment this year acquired the remaining 40 percent of its interest in Houghton-based Hitch, Inc. But adding 15 members to the staff won’t change much. “We live out our core values,” says Jackson. “We’re a people-caring organization that’s family friendly.”
At this specialty lender (Origen provides financing for manufactured homes), it’s “family first, worker close second,” a philosophy that starts with the CEO. For Laura Campbell, senior vice president of human resources, it just makes common sense. “We want our environment to be both rewarding and relaxing at the same time.” It plays out in flexible work schedules, dress-down days, and the organization’s “Make the Difference” program, which encourages employees to be involved in charitable and social events throughout the year. The result, says Campbell, is creating a place where people want to work. “When that happens, they’ll tell others.”
Otterbase, Inc.
Industry: Staffing Employees: 450
Locations: Livonia and Grand Rapids, Mich., Chicago, Boston, Nashville
With a strong culture of employee involvement evident throughout the organization, Otterbase founder and CEO William Bennett says teamwork is an essential part of just about everything that happens at work. A series of shared core values drives the company, among them “passion” (for company, consultants, and clients), “diligence” (to ensure each objective is followed through to completion), and “humility” (to recognize the limitations and improve upon them). Bennett says employees participate in making policy through a formal executive committee, made up of eight employees who Bennett says have “full power to give policy direction” on HR matters.
The 2007 Elite winners with Emcee Murray Feldman, 101 Program Founder Lisa Wicker and Jennifer Kluge.
Start with an inherently creative industry that includes public relations, interactive media and event marketing and it’s natural that what’s needed to thrive is a workforce that’s just as creative. That’s where PCGCampbell takes off. “The communications business is a constantly evolving one these days, so successful companies like ours encourage creativity and innovation from all employees,” says Kevin Kennedy, executive vice president. “Complementing the interesting assignments is our culture of flexibility and fun.” Yet the work gets done. “Staff teamwork and collaboration are key to our business,” says Kennedy. “People believe they can always count on their fellow employees when called upon.”
Peoples State Bank
Industry: Banking Employees: 185
Locations: Madison Heights, Mich., 12 locations total
While people are still key, Cathy Revord, senior vice president and HR director, says employees are even more important in helping to link customers with newly bundled packages of financial services. “The mentoring and training is still part of that, but we have products our employees are proud to present to customers. They are products a larger bank has but we deliver with a community bank feel.” From the employee perspective, Revord says, “knowing their customer is being taken care of is important to them. The biggest changes have come in having more in their toolbox to help the customer. They feel they’re making a difference.”
Determined. Distinctive. Fearless. They’re words the law firm says its clients use to describe its approach. But when it comes to employees, “inspiring” might be more appropriate. A “Great Place to Work” initiative has as its objective the idea that someone would remain with the firm “for the duration of their career.” Innovative benefits such as flexible hours and working remotely (for professional staff) are part of it. So are movie ticket discount programs, birthday celebrations, healthy living programs and a mentoring program. And in case you were thinking otherwise, the Plunkett Cooney work experience is no mere marketing concept. As their Web site states, “It’s an environment we instinctively cultivate.”
Quicken Loans/Rock Financial
Industry: Mortgage lending Employees: 4,800
Locations: Two in Livonia; also Southfield, Auburn Hills and Troy, Mich., Cleveland, Scottsdale, Az.
Why do people want to work at Rock Financial? “It’s the culture. Without a doubt,” says Todd Lunsford, vice president of human resources at the mortgage lender. “It’s the sense of pride that we create and the level of ownership and responsibility that we give folks.” Those thoughts are underscored when new hires go through their orientation-with the help of CEO Bill Emerson and Founder/Chairman Dan Gilbert. It’s also represented by a new type of thinking. “We’re looking for ideas, which is part of a bottom up strategy for continually refining our processes,” says Lunsford. “We want those ideas and that makes us a lot different than most companies.”
Schawk
Industry: Digital pre-media graphic services
Employees: 3,300 worldwide
Locations: Sterling Heights, Mich., 150 locations worldwide
“Schawk’s industry leadership is a magnet that draws people to our doors, but it’s our culture that keeps people inside,” says President David A. Schawk, of the company founded by his father, Chairman Clarence W. Schawk in 1953. “We integrate visionary thinking with timeless values and ideals and I think this inspires great confidence among our employees.” An employee opinion survey-with an 88 percent response rate-helps keep the organization on track. David Schawk says embracing change means a constant state of reinvention. “We’ll be transforming our global organization to provide higher value solutions to brand owners (but) the fundamentals of how we treat our people will not change.”
Service Express, Inc.
Industry: Technology servicing
Employees: 15 in Detroit, 105 company wide
Locations: Detroit, Flint and Grand Rapids, Mich.; also Chicago, Indiana, Ohio, Wisconsin www.seiservice.com
With a 98 percent customer retention rate, Service Express needs employees who will also stay around. The company’s strategy? Give them opportunities that are important to everyone. A structured, multi-step interview process includes a day of job shadowing and the selection of new hires based on their talents. SEI points to its communication channels-”open and two-way”-and its systems of measuring objectives and performance on a weekly and monthly basis as reasons for its success in recruiting and retaining staff. In short, employees who may require additional resources are not left to flounder; and at annual review time, there are no surprises.
Shazaaam! LLC
Industry: Marketing and communications Employees: 11
Having started by visualizing what she wanted the company to be, Adrienne Lenhoff Wise enlisted employees in making it happen. And then, Shazaaam! “It’s become a reality and as a result people on our team love their careers,” says Wise. “They go the extra mile for our clients and have a vested interest in the growth and success of the company.” Shazaaam! employees are not ones to be pigeonholed. “They like being challenged to learn and do new things,” says Wise. “The nature of our work has them traveling to fun places, talking to different people and challenging their minds and unleashing their creativity.”
Soil and Materials Engineers, Inc.
Industry: Environmental and related consulting
Employees: 210
Locations: Plymouth, Bay City, Kalamazoo, Lansing, Traverse City, Shelby Township and Grand Rapids, Mich., Toledo
With a 43-year reputation for providing high quality, innovative solutions and excellent service, SME CEO Mark Sullivan says the company “proudly advertises and celebrates the fact that we are a performance-based company that generously rewards those who truly deserve to be rewarded.” When it comes to recruiting, that sometimes means grabbing candidates-even if there isn’t a position for them. “We’ll create an opportunity,” says Sullivan, who says he’s particularly proud of the organization’s communications practices and recognition programs. “We put tremendous heart into designing our benefit programs and group professional development and training activities.”
Spalding DeDecker Associates Inc.
Industry: Civil engineering Employees: 98
Locations: Rochester Hills, Detroit and Trenton, Mich.
From a small storefront office on Woodward Avenue in Birmingham, Mich., founders Vern Spalding and Frank DeDecker began their partnership in 1954 with a handshake and an oath to focus on quality in workmanship and integrity in client service. A year after their first project-lot grading plans for a builder in Lansing-the pair had 40 projects on the go. Today, the 100 percent employee-owned business remains one that fosters long-term relationships with its clients, the result of empowering people to share ownership and sharing their time and expertise within the communities they serve.
St. John Health
Industry: Health care Employees: 18,000+
Locations: Various throughout Metro Detroit (including nine hospitals) www.stjohn.org
As a faith-based employer, St. John “recognizes the value and importance of a great work environment,” says CEO Elliot Joseph. Several programs put teeth to the philosophy, including an Associate Ambassador/Service Excellence program that empowers employees to make decisions and a Principles of Leadership program that outlines guiding behaviors “for how we work together” as well as being a foundation for leader development. St. John is also working to relieve a shortage of nurses. “We launched a results-oriented initiative in 2005 to transform the nursing experience and we continue to meet targets like reducing voluntary turnover and improving work environment scores,” says Joseph.
For President Lesley Delgado, every day is an opportunity to learn-from the employees of StaffPro America, which she founded in 1992. “We learn and get our best ideas and solutions from them,” she says. “Because they are on the front line, they have the best and most intimate details about how their work affects the whole. Initiatives and best practices should always come from those who are serving the organization.” It’s an approach that works, if the stacks of thank you cards are any indication. “The most prevalent theme is appreciation for treating employees with a high level of respect for their personal and professional goals.”
Strategic Staffing Solutions
Industry: Staffing Employees: 1,500
Locations: Detroit, with 21 office locations throughout U.S. and Europe. www.strategicstaff.com
Running a business as the enterprise it is doesn’t mean employee needs and desires can’t or shouldn’t be accommodated. Indeed, for President and CEO Cynthia J. Pasky, it’s good business to do so. Treating employees like family is at the heart of a philosophy that’s been paying dividends since it was founded in 1990, operating with a combination of honesty, ethics and hard work. “Each and every employee is treated with equal respect and acknowledgement and is offered immense growth opportunity,” says Pasky. “When they are working at S3, they are part of a family, a family that works hard, plays hard and is proud.”
TAC Automotive
Industry: Staffing Employees: 55
Locations: Bloomfield Hills, Dearborn and Flint, Mich.
For some companies, diversifying away from automotive is their focus. At TAC Automotive, it’s just the opposite. The organization focuses entirely on meeting the staffing needs of the automotive community-both OEMs and suppliers alike. CEO Jim Cowper says the organization, a part of TAC Worldwide, uses measured touch points with all employees to monitor success. “Employees like the fact that they’re treated like professionals and are given the tools necessary to succeed and can ‘see’ weekly measurements of their work,” he says. In the future, Cowper says TAC will change with the market, with the intention of using the latest technologies available.
With home and business customers buying everything from local and long distance as well as Internet and satellite TV (through an affiliation with Dish Network), TDS Metrocom is one busy place-and one that needs people to succeed. For Cathy Sionkowski, market manager, being able to offer a dynamic, fast-paced work environment that’s challenging, exciting and rewarding helps meet that need. “We’re part of an industry where change is constant and the technology evolves at lightning speed,” she says. “Our employees appreciate working in a small business environment, and being part of a large, national company.”
The Nailco Group
Industry: Beauty supply wholesale and retail
Employees: 325
Locations: Headquarters in Farmington Hills, Mich.; 24 stores throughout Michigan, northern Ohio
He may have started The Nailco Group as a retailer of nail care products, but CEO Larry Gaynor has applied a fresh perspective to doing business in transforming the organization to one that meets the needs of retailers whose business is beauty. Everything from supplies to furniture and more can be found at one of the company’s online or brick and mortar stores. Yet it still comes down to people. “I’m proud of the fact that we have the ability to actually change people’s lives through their own transformation,” says Gaynor. “They get to see the results first hand. Harnessing their inner talents and strengths has seen tremendous results.”
Some things change. And some things remain the same. For Bryan Hirn, whose Rains Group was acquired by Arthur J. Gallagher over the past year, it’s different ownership. Yet a philosophy of treating employees “the same way we treat clients” remains. “We pretty much do whatever it takes to help people do their jobs, to be the best they can be.” A major initiative has been the implementation of a wellness program, which included the construction of an on-site workout facility. The company hired a personal fitness trainer and developed programs for healthy living, one result being a 75 percent reduction in the number of employees who smoke.
The Rehmann Group
Industry: Public accounting and consulting
Employees: 175 Detroit area, 550 total
Locations: Saginaw (headquarters), Troy, Farmington Hills, Detroit, Cheboygan, Grand Rapids, Jackson, Lansing, Midland, Muskegon and Traverse City, Mich.; Bonita Springs, Fla.
Putting people first is at the heart of this growing public accounting enterprise that first opened its doors in 1941. And for good reason: it depends on its cadre of some 550 professionals to succeed. CEO Steve Kelly says giving employees the tools to succeed is a way for it to protect its investment. “We offer Dale Carnegie Training and leadership training and we encourage employee feedback,” he says. The firm expects to double its size within five years, adding more offices in Florida and Michigan, even as it remains on the cutting edge as a means of recruiting and retaining employees.
Much has changed since Henry C. Turner founded the company that bears his name in 1902. But maybe not: Turner called his clients “respected friends” and that’s not much different in philosophy today. It may be bigger (okay, a lot bigger) but as Steven Berlage, general manager and vice president explains, “an employee is getting the best of both worlds by working in a mid-sized office here in Michigan with a large company backing.” The depth of resources available at Turner means employees get all the tools they need. And they’re empowered to make meaningful decisions regarding day-to-day activities, with advancement based on performance, not experience alone.
Who says a couple of hundred people can’t be close? Not CEO Tony Frabotta, whose colleagues at UHY Advisors work hard at personally developing relationships through a number of events that include family. Sure, those same colleagues work hard at what they do-serving clients at UHY’s offices in matters of tax, business consulting and public accounting. There’s also an emphasis on continuing education. And providing an environment where UHY will be ready to adapt. “Our industry drives change,” says Frabotta. “Therefore, we are always looking for ways to help employees deal with external change in our industry.”
University of Michigan Health System
Industry: Health care Employees: 19,000
Locations: Ann Arbor, 30 health centers throughout SE Michigan
Ask University of Michigan Health System CEO Robert P. Kelch, M.D., why the organization is successful in attracting and retaining employees and you’ll get a straightforward answer. “People are drawn to the mission,” says Dr. Kelch. “They recognize that this is a very diverse organization where employees can build their careers and work among world-class experts in their field. They say they chose to work here because of the experience, our rich benefits, and our competitive pay.” Kelch says listening to employees is one of the employee relations practices for which he’s most proud. “That feedback is critical to helping leadership understand how we can improve.”
Valassis
Industry: Promotional and marketing services
Employees: 1,070 in Michigan; 7,500 worldwide
Locations: Four in Michigan, 80 in total (U.S. and international)
Carol Spann, vice president of corporate human resources, clearly understands just how powerful something like culture can be to an organization as large as Valassis. “One of our key strategies is to enrich and evolve our culture, which speaks to how highly we value our associates and our commitment to continual improvement,” says Spann. “We want our workplace to be comfortable, enjoyable and, yes, fun. Maintaining such an environment where associates look forward to coming to work involves a business where they are an integral part of the strategic plan.” With the integration of Advo Inc. the next year should be an even more exciting one for the people of Valassis.
A family business in every respect, Variant Partners is run by the Sarafa family, headed by Sam and Rosemary and closely followed by sons David and Dennis, who both joined the firm in 1999. Now a part of the MRI network of professional recruitment firms, Variant still relies on a family culture to ensure people are treated well. “One of the things we’re most proud of is our drive to treat people the way they want to be treated,” says David. Twice yearly goal planning with employees includes a discussion around personal objectives. While it may not be overly innovative, “sometimes you just need to ask.”
Want a degree? Work at Verizon Wireless, either part-time or full, and you’ll be eligible for up to $8,000 in annual tuition reimbursement. Plus the company offers comprehensive, low cost family health insurance from the first day of work, and health, vision and dental insurance for part-timers. Jackie Underwood, Verizon’s associate director of human resources, says being a “compassionate employer” is something she takes pride in. “We value employees. And when we evaluate a change, we want to know how that change will impact employees.” A pay-for-performance company, Verizon expects to see a future where employees will be even more connected with technology than they are today.
Sometimes it’s just the work. At Virchow, Krause & Company, Regional Managing Partner Craig D. Nelson says success comes from “the opportunities we provide our partners and associates for a tremendous professional career in which their efforts are appropriately recognized and rewarded while allowing their personal lives and goals to remain a top priority.” Still, it doesn’t come without effort. “We are most proud of the investments we make to build camaraderie and strengthen our culture,” says Nelson. “Whether it’s a holiday party at Comerica Park or an after hours function, our employees know we care about them and their needs.”
As Kathleen Holycross, CEO of Visiting Nurse Association of Southeast Michigan, puts it, “It’s a new workforce with new rules and VNA has adapted accordingly.” For an organization celebrating its 109th year of service, a new way of doing business includes flexible scheduling options, and a sophisticated computer system that gives employees secure access to network files from home. In addition to opportunities for job development and an attractive compensation and benefits package, Holycross points to a generous paid time off policy as reasons for the organization attracting and retaining staff and predicts the organization will remain a leader in home health care.
What does it take to be a “101 Best Places to Work For” company, year after year? Ask someone at Volkswagen of America (a perennial winner) and they’ll undoubtedly mention the outcomes: a high employee attraction and retention rate that’s related to a finely honed talent selection process. Or the ongoing employee development, progressive leadership practices, excellent benefits, rewards and recognition awards, or perhaps the flexible work schedules and the performance-oriented, employee friendly culture. At VW, words like “community,” “diverse,” “talented” and “engaged” are talked about regularly.
Having a strong customer base and employment opportunities are both reasons for W3R Consulting’s success in attracting and retaining the people it needs. Having a process for developing each employee through their time at W3R is another. CEO Eric Hardy says frequent interactions with each employee at the customer site helps the company foster an open dialogue about key successes and challenges. “We attribute our low turnover to open communications, which increases our awareness to challenges before issues arise,” says Hardy, who predicts his organization will grow significantly five years from now, but with the same strong bond with employees.
Having an open mind is not an abstract concept at Wade Trim. For Tim McKindles, the organization’s director of human resources, it’s a way of thinking that has something of a domino effect. “You move an executive up and you have to fill that position, which repeats itself over and over again. It’s about promoting from within, which is very healthy for an organization such as ours.” Employee relations practices at Wade Trim typically involve two answers: “what is the minimum I can do?” and “what’s the right thing to do to make the employee whole?” Clearly, McKindles favors the second answer.
Walbridge Aldinger
Industry: Construction
Employees: 530 (2,000 worldwide)
Locations: Detroit, Tampa, Chicago, North Carolina, Fort Meyers, Fla., Pittsburgh. www.walbridge.com
Get ’em young and get ’em early. That’s the kind of thinking behind a summer intern program that this past summer had some 25 university students working side-by-side with staff to learn the company’s business. “Our interns experience our corporate culture, learn important skills and are given performance reviews,” says President John Rakolta Jr. “We then invite the top talent to intern with us for the following year and upon graduation, to join our organization.” The practice is one of Walbridge Aldinger’s most successful recruitment programs. “We seek the brightest and best, and they reap what all our employees enjoy.”
Warner Norcross & Judd LLP
Industry: Attorneys Employees: 288, plus 100 partners
Locations: Grand Rapids, Holland, Lansing, Southfield and Muskegon, Mich. www.wnj.com
Pay and benefits is important, but for a law firm with a mere 4 percent turnover, there must be more. And there is: the firm’s reputation and the quality and type of work it does for clients. “Once working for the firm, people appreciate our approach to teamwork throughout the organization,” says Managing Partner Douglas Wagner. “We hire professionals in every position and each person has an important and valued role to play in the service to our clients.” Location, location, location? At Warner, Norcross & Judd, it’s flexibility, flexibility, flexibility. “We attempt to meet people where they are and provide packages meeting their needs,” says Wagner.
Xede Consulting Group
Industry: IT consulting Employees: 70
Locations: Southfield, Mich. headquarters, consultants working in various offices www.xede.com
The nine-year-old management and technology services firm specializes in business technology strategy and enterprise application development and integration. Employees have taken on the service mantle-rebranding the premium consulting services that larger national firms provide but in a smaller, nimbler, and locally focused consultancy. Regular meetings with company leadership and a mentoring program are ways Xede keeps those who come on board with the organization. A rigorous interview process that’s structured to bring on and retain high caliber talent is all part of the game plan at Xede. “It’s very fun and relaxed, but it’s very professional as well,” says Lisa Kloock, director of HR and operations.
Private banking advertisements often portray an affluent-looking couple on a sail boat or at a ski resort with a caption about preserving wealth for the next generation.
However, private banking also offers valuable expertise and time-saving service for successful business owners and professionals who may not have a million dollar trust fund. Private banking originated in Switzerland where bankers stressed confidential personal relationships with customers, rather than treating them as commodities, according to Patrick M. McQueen, president and chief operating officer of The Private Bank.
Anticipating the needs of clients is one of the hallmarks of the private banking industry.
Headquartered in Bloomfield Hills, The Private Bank focuses on personalized service for its customers, about half of whom are business owners, real estate investors and professionals.
To McQueen, formerly Michigan’s banking commissioner, private banking is all about the relationship between the customer and the bank.
“The client knows you and you know the client. Relationships grow over time. The handshake is important. We anticipate clients’ needs and we can solve their problems,” he says.
The Private Bank strives to reduce banking hassles. “We have fewer rules. We’ll pay your bills. We always have foreign currency on hand. We have a courier service,” McQueen explains.
Customers typically seek out The Private Bank, he says, when they experience a major business or life change, such as the sale or relocation of a business, the death of a family member or retirement.
At JPMorgan, the Chase division which provides private banking, customers are “closely-held businesses with unique needs and challenges,” according to Jack Csernits, managing director of their Private Client Service in southeast Michigan. Clients have high net worth usually derived from middle-market business, he says.
JPMorgan’s wealth management and advisory team provides them with overall financial strategy, as well as plans for retirement, taxes, asset management, business succession, estates, insurance and risk management.
Ypsilanti residents Peter Langer and his wife turned to JPMorgan Private Client Service for professional assistance in handling their substantial portfolio. (Langer is a Ford retiree and the couple owns apartment buildings.) They chose JPMorgan because Langer was “so impressed with how well they handled my father’s estate and how little they charged to do it.” The JPMorgan Private Client team “looked at the whole picture, including wills and insurance, which was really great, and laid out a plan with a balanced portfolio,” he said. They obtained a home mortgage from JPMorgan and later refinanced their rental properties with the bank because they were so pleased with the service.
The Private Bank provides similar services through four divisions: deposits; trusts and investments; private banking (providing loans) and residential mortgages. A managing director oversees outside experts, such as investment managers or estate planning lawyers required for a client. “We don’t sell a product; we sell a process,” McQueen emphasizes. Although The Private Bank was acquired by Chicago-based Bancorp, Inc. in 2005, decision-making remains local, states McQueen.
Customers are not charged special fees for private banking at JPMorgan or The Private Bank. Instead, the bank’s compensation comes from customers’ regular account fees, such as interest on loans and a percentage fee for asset management, based on the individual services used.
While some of these services are available at other banks or branches, private banking groups coordinate them and provide an experienced account manager or team to oversee the customer relationship. For affluent business people and professionals, private banking may be a good fit.
Educated as an engineer, Cischke is Ford’s chief liaison with global organizations that are seeking solutions to the challenges of sustainability (of mobility, energy, etc.), environmental stewardship and energy independence. She also influences future environmental and safety regulations and assures that Ford meets or exceeds them worldwide.
She began her automotive career at Chrysler Corporation in 1976.
Corp!: What’s your formula for success as an executive? Cischke: If you can be inclusive and tap all the skills of the people you work with, and recognize other ways than yours to approach an issue, you can do a better job.
Corp!: What is your biggest challenge?
Cischke: To give customers what they want, but at the same time make sure we have a world they can live happily in.
Corp!: Your assignment includes responsibility in areas such as product development, manufacturing, the supplier community, working conditions and human rights. How do you make an impact on all of these?
Cischke: By working with teams of people with responsibilities in those areas. First, you make sure everybody understands what they need to do. Second, you remain open to new technology. Third, you collaborate on technology with universities and organizations outside the company.
Corp!: How do you achieve sustainability in product development?
Cischke: I work closely with Derrick Kuzak, group vice president, global product development. We have just put together a 20-year product development plan.
Corp!: What is your view of new technologies?
Cischke: I have been in the auto industry for 31 years. This is the most exciting time because of the uncertainty of what is going to win out as the technology of the future.
Corp!: Does your job require a lot of travel?
Cischke: Yes. This fall I’m participating in a meeting of the U.S. Climate Action Partnership in Washington. I’ll also meet in Geneva with the United Nations ECE [Economic Commission for Europe] roundtable on fuel quality. In Shanghai, I will attend a competition highlighting the auto industry’s environmental efforts.
Corp!: Tell us about your family.
Cischke: I’m single, but I’m close to five nephews and a niece. All are in college or recently out. I advise them on courses and careers.
Corp!: You grew up on Detroit’s east side. Did living there influence your decision to work in the auto industry?
Cischke: Yes. I think our industry is a big part of the lives of most people who grow up here. My uncle worked for Ford. My father was a car salesman.
Corp!: Why did you decide to become an engineer?
Cischke: I had a couple of summer jobs at Chrysler. I saw what engineers did, and liked it.
Corp!: What car is in your driveway?
Cischke: A Lincoln MKX. At my condo in Florida, I keep a Thunderbird convertible. I love that car.
Corp!: What is your favorite way to spend free time?
As the parent of a special needs child, Attorney Dan Penning knows what is involved in planning for a child’s future.
It is estimated that one in five families have a “special needs” member.
Parents with a special needs child worry most about what will happen to that child when they are no longer able to care for him or her. If the family is fortunate enough to own a business, planning for the child’s life after the parent’s death can become complicated.
For many family business founders, it was the idea of the family working together to secure financial futures that formed the vision and offered the incentive. There must be great comfort in thinking that the business entity will continue to support a child who is unable to support themselves. However, the family business is most likely not the best place to put the financial future of a special needs individual.
Individuals with special needs are those who have chronic physical, developmental, behavioral, or emotional conditions that limit their ability to live, think and/or work independently. Basically they are people who cannot make it through life without regular and constant assistance. Certainly there are highly functioning special needs individuals who work successfully, but are unable to perform other life tasks like driving or preparing meals.
At some point in the life of the special needs individual, their advocates and caregivers, who are usually their parents, are no longer able to perform those tasks. What happens then?
Even the highly functioning individual usually runs into increasing needs as life goes on. While they may be able to work successfully as a young adult, that does not ensure long-term success. A family business could provide the perfect work environment for that special needs individual - a custom designed job around caring folks. Later in life, when his or her parents are no longer involved in the business, how would that continue? Would it make sense to make the special needs individual a shareholder or partner so that they can have some control and reap the benefits of the business?
The unfortunate truth is that the special needs individual is likely to end up in a state-supported facility at some point - and likewise become a ward of the state. Funds left to your child may be attached by the government and used in lieu of public funds to pay for the support of the child (who may now be an adult). If your child were to own shares in a business, the state could force the sale and/or liquidation of that business to care for the child. How can you then best provide for the care of your child after your death?
Dan Penning, managing partner of Wright Penning & Beamer Attorneys in Farmington Hills, Mich., knows firsthand the difficulties of dealing with these issues. The father of an autistic son who is unlikely to be able to care for himself, Penning specializes in corporate law and is a business owner, but has been through the planning issues from the side of a parent.
“Providing for the financial and custodial well-being of a special needs individual is only a part of planning-¦a very important part,” says Penning. “We want our son to be well cared for and we want our other children to be involved in his care after we are unable to do so. But, we don’t want to put undue burden on our other children, or guilt-trip them into being our replacements as custodians - although we do expect them to be his advocates.”
Penning says good estate planning is key.
“We aren’t sure where our son will be in the future, but we do want to be sure that the funds are available for him. We have set up a ‘Special Needs Trust’ and funded it with life insurance so that the dollars will be there when they are needed. I referred my own case to an attorney who specializes in Special Needs Trusts. That way our other children will get the benefit of our other assets and our special needs son will be well provided for regardless of what financial path our life takes.”
When asked about using the business asset as a funding mechanism for the Special Needs Trust, Penning says he can’t think of many circumstances that would make sense for the Trust to own the business asset.
“You wouldn’t want the trustee to be forcing the business into bad decisions due to the needs of the special needs individual. If the trustee was also a shareholder in his or her own right, that might constitute a conflict of interest and I would want to avoid that. So, I would recommend a Buy-Sell Agreement, putting the business asset into the hands of the most likely successors to run the business and cash into the estate that can then be distributed to the Special Needs Trust.”
Marcus Murray says it is a mistake to think that a business can provide for a special needs child.
Marcus L. Murray, a financial advisor and RN with many other credentials, who is with Mass Mutual/Detroit Financial Group in Farmington Hills, says many business owners have done no planning at all, thinking that the business will continue to provide for
their special needs child.
“What a mistake! It is important that the Special Needs Trust be drafted to address issues beyond the financial-¦to address caretaking, lifestyle and so on. It is important that the parents communicate with the trustees, and a long list of successor trustees, what they have in mind for the care of their child. Then they need to fund the need. I usually recommend life insurance because it doesn’t make sense to fund a trust with real dollars if you can buy dollars.”
Murray adds that many legal issues change when the special needs child becomes of legal age. Caregivers, he says, need to be aware of those changes. Finding the “right” trustees and successor trustees and connecting them with the right legal and financial team is the key to the best long-term care for your loved one.
In the end, no one can be sure that the planning they do will yield the intended results. You can be sure that leaving the financial needs of a special needs individual to a business is a mistake. If you, or someone you love, is in this situation, seek the advice of competent legal and financial advisors - it is the best way to achieve your intended results.
Richard Segal is the chair of the Family Business Council, a membership organization of family-owned businesses. He can be reached at [email protected].
Significance. Deep down all of us ponder this and dream about achieving it. As host of “Anything is Possible” on WJR-AM 760 I have met numerous people who exemplify this. One shining example is Hugh O’Brian.
Born Hugh Charles Krampe in Rochester, N.Y., on April 19, 1925, O’Brian served in the U.S. Marine Corps as a drill instructor during World War II. At age 17, he was the youngest drill instructor in the Marine Corps.
He became an actor and is best known for his starring role as Wyatt Earp in the television series that ran from 1955 to 1961. For his contribution to the television industry, he has a star on the Hollywood Walk of Fame.
Hugh O’Brian with students who participate in the HOBY leadership program. Photo courtesy of HOBY
In 1958 he founded the Hugh O’Brian Youth Leadership (HOBY), a nonprofit youth leadership development program that annually empowers 12,000 high school sophomores from across the United States as well as eight other countries. Since its inception, more than 355,000 youngpeople have benefited from their involvement with HOBY.
The concept of HOBY was inspired by a nine-day visit to Africa by O’Brian, where he met famed humanitarian Dr. Albert Schweitzer, who believed the most important thing in education is to teach young people to think for themselves.
O’Brian’s message to young people: “I do NOT believe we are all born equal. Created equal in the eyes of God, yes, but physical and emotional differences, parental guidelines, varying environments, being in the right place at the right time, all play a role in enhancing or limiting an individual’s development. But I DO believe every man and woman, if given the opportunity and encouragement to recognize their potential, regardless of background, has the freedom to choose in our world. Will an individual be a taker or a giver in life? Will that person be satisfied merely to exist or seek a meaningful purpose? Will he or she dare to dream the impossible dream? I believe every person is created as the steward of his or her own destiny with great power for a specific purpose, to share with others, through service, a reverence for life in a spirit of love.”
Our natural tendency is to put this way of life (significance) off until we’re married and settled, the kids are grown, we’re financially secure or we’re retired. It seems to me that the people that achieve significance do so by combining these two ways of life rather than choosing one versus the other.
If you wish to listen to any of the past shows, go to anythingispossible.biz, click on the archived shows and each guest is listed by date of show.
I truly believe that with God, Anything is Possible.
Jack Krasula is president of Trustinus in Southfield and host of “Anything is Possible,” airing on Sundays at 6 p.m. on WJR-760 AM, “The Great Voice of the Great Lakes.” He can be contacted at [email protected].
By Kevin Mckervey and Suzanne Tuson
September 1, 2007
The long-awaited replacement tax for the Michigan Single Business Tax (SBT) has arrived. Michigan now has the Michigan Business Tax (MBT), which takes effect Jan. 1, 2008. Companies that are on a calendar year-end will file their first MBT return for the year ending Dec. 31, 2008. Those companies that are on a fiscal year will be covered by both taxes and will file on a transitioning basis.
Highlights of the MBT:
The MBT consists of two components, a modified gross receipts tax of 0.8 percent and a business income tax of 4.95 percent.
Unitary business groups will file a group MBT return
Sales from the performance of services are now sourced under a “market based” approach.
The MBT tax base will be apportioned based on a single sales factor.
Nexus rules, the connection that allows the states to impose a tax, have been broadened. Any activity in the state in excess of one day will create nexus and an MBT filing responsibility if the gross receipt threshold is met.
Several credits will be available under the MBT for qualifying taxpayers based on research and development expenses incurred in Michigan, compensation and personal property taxes.
Taxpayers with gross receipts allocated to Michigan that are less than $350,000 will not be required to file.
An alternative tax of 1.8 percent of adjusted business income will be available for qualifying small taxpayers.
Rules have changed for insurance companies.
Important Things To Consider In Preparing For MBT
Stay tuned: there is still more to come on the Michigan Business Tax. Technical corrections are expected out by December, along with some guidance or transition.
Check your personal property tax classifications. In addition to the credits provided for industrial personal property for MBT, the governor signed additional property tax relief exempting industrial personal property from the entire 18 mills of the local school tax and commercial property is exempt from 12 mills of the local school tax. Industrial personal property will also be exempt from the 6-mill State Education Tax.
Make sure your personal property taxes that have been assessed in 2007 are paid by Dec. 31, 2007 in order to qualify for existing SBT credits.
If you are considering the sale of a business or business assets, you may want to complete the transactions prior to Dec. 31, 2007 to avoid the 4.95 percent income tax on the sale under the MBT. Make sure your books and records segregate “purchases from other firms” as it will be a reduction for calculating modified gross receipts for the purposes of the tax. If you have a service business, make any necessary adjustments to your recordkeeping to capture the data necessary to apportion your MBT base. If you are involved with businesses with direct or indirect common control you may need to file a combined return under the new unitary rules.
Affiliates with Michigan customers of tangible personal property or who provide services that benefit customers in the Michigan market need to consider the impact of the MBT. If you think your business may be conducting research and experimentation activities, now is the time to find out. Qualifying activities may get you federal and state tax credits.
Stay tuned: there is still more to come on the Michigan Business Tax. Technical corrections are expected out by December, along with some guidance on transition.
Kevin McKervey and Suzanne Tuson are CPAs and shareholders with Clayton & McKervey, P.C., located in Southfield, Mich. They may be reached at [email protected] and [email protected]
I believe God created each of us to play a key role in His master plan and He designed each of us for greatness. Too often, because of poor self-image, setbacks, rejection, fear, tiredness and/or laziness, we never begin working toward, or give up on, our biggest dreams.
As the host of “Anything is Possible” on WJR these past two years I have become convinced you must have a dream. In fact, the bigger the dream, the better. You must also believe in yourself and realize that no significant dream was ever achieved without the help of many people. When you dream big, you’ll find it is also easier to attract the best people to help you turn your dream into reality. Finally, do everything in a first class way. Don’t wait, because being classy will directly increase the chance of achieving your dream.
A couple of my guests who are shining examples of dreaming big are Aaron Dworkin and Peter Nielsen.
Dworkin was born to a white, Irish-Catholic mother and black father in upstate New York and was adopted by white, Jewish parents when he was just two weeks old. At age 5, he began playing the violin at the 92nd Street YMCA in New York City. His dream? Reach out to minority music students.
Aaron Dworkin, founder and president of the Sphinx Organization. Photo courtesy of the MacArthur Foundation
Today, Dworkin, 36, is the founder and president of the Sphinx Organization, which provides classical music education and competition for black and Latino students. Through Sphinx, Dworkin reaches 35,000 students a year on a $2.1 million budget with 38 full and part-time employees around the country. In the fall of 2005, he received a “genius grant” of $500,000 over five years from the Chicago-based John D. and Catherine T. MacArthur Foundation to encourage his endeavors. This grant is given to just 25 recipients each year. And there’s more. Sphinx just received a four-year, $1 million grant from JPMorgan Chase to be used to underwrite an annual gala performance at Carnegie Hall in New York for three years and to provide title sponsorship through 2009 for the Sphinx Competition, the organization’s signature event.
You may already know Peter Nielsen, fitness expert and radio and television host of “Peter’s Principles.” Diagnosed with Crohn’s disease at age 15, Nielsen lost 48 pounds and weighed a mere 83 pounds. But he didn’t let this stop him from dreaming big. Just two-and-half years later he won the Mr. Teenage American title. Since then he has won 72 bodybuilding titles, including Mr. International Universe in 1984 and 1985.
When his Crohn’s disease came back in 2001 at age 39, he didn’t let that stop him. Today, he’s an author of several books, including “Growing Up Strong” and “Will of Iron” and 18 fitness videos. His television show is now in more than 225 markets
If you wish to listen to any of the past shows, go to anythingispossible.biz, click on the archived shows and each guest is listed by date of show.
I truly believe that with God, Anything is Possible.
Jack Krasula is president of Trustinus in Southfield and host of “Anything is Possible,” airing on Sundays at 6 p.m. on WJR-760 AM, “The Voice of the Great Lakes.” He can be contacted at [email protected].
There are many needs for life insurance, both personally and for the business. There are also many types of life insurance available in the marketplace. This can make buying insurance confusing; nonetheless, it is important to work through the process. We all know of tragic stories of people who haven’t planned well. Conversely, there are many success stories for families that have been well cared for. The cost of preventing tragedies is small, yet this important subject is not well addressed. Fortunately, there are some basic fundamentals that will help you in making decisions.
Buying insurance is a crucial activity that makes a huge difference in the lives of people you care about.
On a personal basis, the need for insurance would include family income, debt payments (such as mortgages and bank loans), educational trust funds, special needs trusts, estate tax funding and charitable giving.
For business purposes, insurance has many applications, including funding buy-sell agreements, key person insurance, securing bank debts and funding retirement plans and employee stock ownership plans.
There are two broad categories of insurance: term and permanent. Term insurance has varying rate guarantee periods (10, 15, 20, 30 years). It is temporary in nature and builds no cash value, but offers the advantages of low initial cost. Permanent insurance plans include whole life and various types of universal life; including no lapse guarantee, fixed interest rate and variable. The universal plans can be designed to be “paid up” in a limited number of years, or paid over a lifetime. These policies are designed to last a lifetime, not just for term of years, and can even be designed to be guaranteed to age 120.
In addition to policies insuring a single life, there are policies that insure two lives, usually a husband and wife, with the death benefit payable at the second death. Called joint life second-to-die plans, these are ideal for paying estate taxes or guaranteeing an inheritance to children, charities or special bequests.
So where do you begin? Here are some key questions to ask yourself:
How much insurance should you have? Everyone is different. It will depend on outstanding debt, family income needs, estate tax liabilities, charitable goals and business needs.
What type of insurance is appropriate (term or permanent)? It depends on affordability and duration of need. If the need is short term (for example, securing a loan), term insurance is appropriate. If the need is long term (10 to 15 years or longer), permanent would be appropriate. Examples of long term needs include funding estate tax liabilities, charitable trusts, special needs trusts for dependent children, and buy-sell agreements.
What plan of insurance should be you have (variable, stock market based or guaranteed)? This will depend on many factors, including cash flow, budget constraints, risk tolerance, the purpose for the insurance, and your overall estate and business planning goals.
Which insurance company should be used? The insurance company should be highly rated, offer competitive products, and be dedicated to high standards of customer service.
Which insurance professional should you work with? This could be the most important decision. An experienced, knowledgeable, independent agent can guide you through all of the decisions. Work with an expert so you don’t have to become one.
Buying insurance is not as much fun as taking a vacation, however, it is a crucial activity that makes a huge difference in the lives of people you care about.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning. He can be reached at [email protected].
If you were to sit down to plot a financial roadmap
for your estate and your business, there are 10 rules to help you get where you want to go. Here are the first five.
First Commandment: Make sure you have proper wills and trusts
Providing for the distribution of your assets is the key to wealth preservation.
Providing for the distribution of your assets is the key to wealth preservation. Failure to have your documents in order can cause serious problems, not least of which would be excess taxation. In addition, since these documents usually define staged distribution ages to control when children inherit, failure to do so could leave them with large sums of money at a very young age and no management assistance. There is also the poten-tial for divorce or creditor problems. Finally, if you fail to elect trustees, guardians and executors for your estate, strangers will wind up making those decisions for you.
Second Commandment: Make sure your assets are properly titled
There are innumerable problems associated with failing to title your assets to your trusts, including an improper balance of assets between husband and wife; excess capital gains tax when assets are sold; excess estate taxes; probate and creditor exposure.
Third Commandment: Provide security for yourself and your family
Because premature death or disability can disrupt even a carefully laid out estate plan, make sure security is provided to protect against these unexpected losses. Proper life insurance, disability and long term care insurance could help, as will doing everything you can to establish adequate retirement savings.
Fourth Commandment: Make use of annual and lifetime gift exclusions and charitable gifts
Failure to take advantage of the tax code gift exclusions could lead to excess taxes at death and the improper distribution of assets. Allowable gifts to individuals include: $12,000 annual gift per donor, per donee; $1 million lifetime gift exemption; $2 million gift exemption at death; $2 million generation-skipping gift limit. In addition, you are allowed to make gifts to qualified charities. Limits on those are: cash gifts to public foundations which can be up to 50 percent of AGI (Adjusted Gross Income); cash gifts to private foundations which can be up to 30 percent of AGI; gift of appreciated stock up to 30 percent of AGI to public foundations and up to 20 percent to private foundations. For the tax year 2007 only, you can make gifts to charity of up to $100,000 directly from your IRA.
Fifth Commandment: Reduce estate taxes to the minimum allowed by law
There are several instruments to help reduce estate taxes, all of which should be explored to determine whether they are right for your situation. Personal and charitable gifts, Grantor Retained Annuity Trusts, Qualified Personal Residence Trusts, Charitable Remainder Unitrusts or Charitable Lead Annuity Trusts, Defective Grantor Trusts, Family Limited Partnerships and private annuities all offer opportunities to reduce taxes and enhance your legacy.
By taking these first five actions, you are well on your way to your destination. The next issue of Corp! will feature the final five commandments to complete your journey.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning. He can be reached at [email protected].
Statistically speaking women outlive men, which means wives are often left to deal with all of the issues associated with transferring wealth. What then are the key issues that need to be addressed? There are 10 steps that the woman, as the likely surviving spouse, should help orchestrate:
1. Compile and update a list of all assets, including real estate, savings, stocks, bonds, 401K plans, IRAs, personal effects, collectibles and insurance policies.
2. Execute wills and trusts and update periodically. Guardians, trustees and executors need to be selected. There are also decisions to be made regarding distribution ages, beneficiary designations, charitable bequests, and special provisions for family members. Durable powers of attorney and living wills are also important.
The results of not being proactive on your estate plan can be disasterous.
3. Coordinate how assets are titled to avoid probate and achieve tax savings.
4. Determine how much income will be necessary for the surviving spouse and children to maintain their standard of living and satisfy other financial goals, such as college education and payment of debt.
5. Make sure long-term disability and health care needs are met. Insurance policies can provide relief from an otherwise severe strain on assets.
6. Plan ahead to determine what estate and income taxes will be payable at death.
7. Make sure adequate insurance is available to pay debts and estate taxes, provide income for the family, and when necessary, provide key man protection to run a business.
8. If a spouse is a business owner, make sure there is a business succession plan that provides contacts for key people such as the bank, suppliers, creditors, etc. Make sure you know where all important papers are located.
9. Take steps to retain key employees who can help run the business, or be there to assist in an orderly sale of the business.
10. Understand the nature of your invested assets, such as stocks and bonds, and the tax implications of changing the asset mix to meet the liquidity needs of an untimely death.
The results of not being proactive on your estate plan can be disastrous. Children may not be able to go to college, the house may have to be sold and the family moved to a more affordable location. The surviving spouse may have to find a job to support the family. Cash reserves could be depleted.
None of these things have to happen. But people tend to focus on the urgent brush fires of daily life and miss the forest fire that can destroy their lives’ goals because of inadequate planning. As with any important life decision, you may need professional advisors to help with your personal estate planning roadmap.
No one has done everything they should do in planning their estates. And even if you have done planning in the past, it gets outdated very quickly. No one is better suited than a woman to say, “I am going to captain this project to make sure my family is secure.”
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning. He can be reached at [email protected].
On behalf of the United States Government, thank you for giving us your business. We appreciate you not making any better plans to distribute the wealth you worked for so many decades to accumulate. We’ll do our best to spend it wisely.
Sincerely,
The Government
You may never get a letter like that one. You won’t need to. Without a proper plan for the future of your business, your business may not even have a future. Just as your personal will determines what will become of your personal assets, a business succession plan determines what will become of your business. And given the years of devotion and dedication you’ve put into it, the business might very well be considered another “loved one” that must be provided for.
Succession planning should start the day you realize you have a viable business to pass on.
The overall plan consists of two parts: a business succession plan, a long-term strategy for the business when the owner retires; and a strategic contingency plan, a short-term strategy that becomes operational upon the unexpected loss of the owner through disability or death. Together, the plan serves as a road map, steering passengers through the twists and turns of transition from one owner to the next.
Most business owners don’t realize the range of issues involved, and the problems that can arise when no plan - or a bad plan - is in place. Unfortunately, the complexity of the process and the difficult decisions that need to be made often cause the owner to postpone action. But the cost of not planning is high: over 70 percent of family businesses fail to survive into the second generation; over 85 percent fail before the third.
There are a number of pitfalls that trip up the best intentions of owners, families and managers, including:
-¢ Personal issues (family issues as to how to deal with children working in the business and those not in the business).
-¢ Key personnel issues (which employees will stay and who will go).
-¢ Tax issues (income and estate).
-¢ Legal issues (buy-sell agreements).
-¢ Financial issues (such as funding buy-sell agreements, retirement plans and estate taxes).
In order to start the succession plan, you need to do the following:
-¢ Determine your wishes for the future disposition of your business.
-¢ Decide on a successor(s) or owner(s).
-¢ Anticipate and address any family or employee issues.
-¢ Begin to prepare the successor(s) for their future responsibilities.
-¢ Set aside assets that may be required for the transition.
-¢ Coordinate your personal and business finances to provide sufficient retirement income and fund any estate tax liability.
Planning can be a complex process involving difficult decisions on issues, both professional and personal. But the rewards are worth it: a solid foundation for the survival and ongoing success of your business; security and peace of mind for owners, managers and employees; and, often, significant tax and financial advantages for both the owner and the business. Succession planning should start the day you realize you have a viable business to pass on, no matter how far in the future that is. Your plan will work for you and your heirs for decades to come.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning. He can be reached at [email protected].
One of the most tax-advantaged benefits for corporations and their employees today is Long-Term Care Insurance (LTCI). Most people are aware of the personal reasons for having this kind of protection, but they may not be aware of the corporate advantages.
Over the course of your lifetime, the chances are higher for you needing long-term care services than for you being in an automobile accident. Photo courtesy Downtown Detroit Partnership
As a corporate fringe benefit, LTCI enjoys a unique combination of tax advantages not available with other benefits. Namely, the premiums on tax-qualified policies on employees, their spouses and dependents are deductible by the corporation. In addition, the premiums are not taxable income to the employee. Finally, all or most of the benefits are tax-free if and when they are received.
Business owners also have an unusual level of control when using LTCI as a fringe benefit. It can be offered to a select group of key executives without losing any of the tax features. If offered to all employees, it may be available on a “guaranteed issue” basis; i.e., no medical underwriting. This can be a major plus for employees (and business owners) with health problems. A low-cost basic benefit can be paid for by the company, with optional “buy-ups” for employees who want more. Finally, there is the fact that most employees will truly value this benefit. Everyone has had experience with a parent or relative needing long-term care services. The statistics are staggering: nearly half of all adults eventually need long-term care services to assist them with basic activities of daily living. Over the course of your lifetime, the chances are higher for you needing long-term care services than for you being in an automobile accident.
Unfortunately, the federal government is not going to pay for the long-term care needs of our aging population. That is why the Health Insurance Portability and Accountability Act (HIPAA) was passed in 1996, providing tax breaks for the purchase of LTCI to both corporations and individuals.
As to the policies themselves, what benefits do they provide? Basically, when you can’t take care of your basic living activities (bathing, dressing, or feeding, for example), the cost of getting help is covered, whether in your home, a child’s home, an adult daycare facility, an assisted living facility, or a full-service nursing home.
The policies have many optional benefits that let you custom build a plan to suit your needs and budget. There are a variety of waiting periods, benefit periods, and features such as inflation riders, accelerated payment options, and spousal “shared-care,” to name a few. By way of example, a plan with a monthly benefit of $3,000, a 90-day waiting period, and an unlimited, lifetime benefit could cost as little as $70 a month if purchased at age 55. At age 65, that same plan could cost $125 a month; by age 75, $325 a month. (Costs will vary depending on the insurance company, your health, your marital status and the state you live in.)
So, what are the top three reasons to buy long-term care insurance?
-¢ Preserve your independence and freedom to choose, rather than being dependent on family and friends.
-¢ Conserve your estate and retirement assets.
-¢ Provide an important, tax-advantaged benefit for yourself, your family, and your employees.
Long-term care insurance is not just a health issue, but rather a part of an overall financial plan. It covers not just nursing home care, but the whole continuum of care needs. This is a benefit for all people, even those with the ability to afford private care. It is “icing on the cake” that this protection can be provided as a corporate benefit as well as a personal plan.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning.
Exit strategy means many things to different people. It can mean retirement. It can mean a sale of your business. It can also involve death or disability. In this article, I will focus on retirement.
Retirement planning can be about asset protection, wealth transfer, charitable gifting, wealth management, and business succession planning. There are many landmines to be wary of as retirement approaches. If you are a business owner, you are probably aware of the grim statistic that 70 percent of all businesses fail to get to the second generation and 85 percent fail to get to the third generation, because they don’t have a succession plan. To avoid this, you will need to plan ahead on issues such as whether your business should be sold, liquidated, or kept. If the business is sold, key questions are: To whom (a stranger, to key employees, or to an employee stock ownership plan), for how much, and on what terms.
If kept, the key questions are: who will run the business? Who will get stock ownership? How do you keep the estate taxes to a minimum? How do you equalize inheritances between children who are working in the business and those who aren’t? And importantly, how will your retirement income be paid?
Business owner or not, if you have a pension or profit sharing plan, or a 401K, they can be rolled over to your personal IRA at retirement. You then have decisions to make about beneficiary designations, distribution rules, and how to invest the funds. Should your beneficiary be your trust, your spouse, or your children? Pension plans and IRAs are subject to a double tax-income and estate taxes. If your spouse or children are your beneficiaries, they can roll your IRA into their own IRA to stretch the income tax over their lifetime. When should you take distributions, and how much should you take?
Distributions can be taken as early as age 591/2. If taken prior to 591/2, a 10 percent penalty tax is imposed. You can defer distributions to age 701/2. At that time, a minimum distribution is required based on IRS life expectancy tables. Failure to take the minimum distribution results in a heavy penalty. If you have a pension plan, do you take it over the joint lifetime, or do you take it over your lifetime of you and your spouse?
Managing your money is also key. You may need to reallocate your portfolio as you approach retirement, determining the answers to questions such as: How much should be in stocks versus bonds? What should your portfolio structure look like (value stocks versus growth stocks)? What funds or money managers should you use? What are the tax consequences to your decisions?
Retirement decisions also involve when to take social security (age 62, 66, or 70). What about your medical insurance? What will Medicare provide? How will you pay for prescription medicines? Can you really afford to retire, or are you going to have to work longer? In short, will your income cover your expenses?
Other than financial issues, there are many lifestyle issues to consider. What will you do with your time? Will you do volunteer work? Get another part time career? Will you move or get a second home in Florida or Arizona? What role will your health and family play in determining where you should live (i.e., long-term care planning, if you need assistance at home or in a facility)?
With so many questions, who do you go to for advice in all of these areas? Is it a retirement specialist or a financial advisor?
There is no simple answer, but it is much better to be proactive in your retirement planning to ensure a happy future and minimize future stress. With careful planning, you will be able to avoid those landmines that can derail your golden years.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning.
We live in a fast-paced society. Most people are in a hurry to get somewhere before the other guy. In many cases it’s a me-first mentality and the heck with the other person. How long will this go on? Where is our sensitivity or courtesy for others?
Educated as an engineer, Cischke is Ford’s chief liaison with global organizations that are seeking solutions to the challenges of sustainability (of mobility, energy, etc.), environmental stewardship and energy independence. She also influences future environmental and safety regulations and assures that Ford meets or exceeds them worldwide.
