volume five issue ten
GUIDE TO
REAL ESTATE in Rhode Island
YOUR HOME COULD BE YOUR GREATEST ASSET
PROTECT IT Professional Growth For The Entrepreneur 2 0 1 7
R I
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P L A N
C O M P| E TfiveI issue T tenI O1 N www.risbj.com volume
“A lot of my employees have
chosen Neighborhood because it’s affordable and has what they need.” -Natasha Harrison, Executive Director Norman Bird Sanctuary
1-855-321-9244 nhpri.org 2
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Make energy upgrades, avoid the unexpected, keep focused on your business. To get started with a no-cost energy assessment, visit ngrid.com/smallbusiness or call 800-332-3333.
That’s business on the grid.
These programs are funded by the energy efficiency charge on all customers’ gas and electric bills, in accordance with Rhode Island law. Š2016 National Grid
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from the founder Real estate investing takes a little bit of luck and a whole lot of skill. I remember my first real estate transaction back in 1999. I purchased a multi-family home as an investment property. I didn’t realize at the time just how lucky I was – buying when the market was low. That investment paid off several years later when I sold the property for an 80% gain. The feeling of making a great real estate investment on my first attempt was empowering. I felt like the Donald Trump of Cranston, a real estate mogul and investment connoisseur. Little did I know, that my first experience with real estate was much more luck than it was skill. In 2004, shortly after I sold my rental property, I was starting my new business. At the time I had no staff and was in search of my first clients. What made sense was to set up a homebased office for the time being, or rent a small office for myself with potential to add a few part-time staff. Instead, I thought to myself, what would a savvy real estate investor do? Of course! I should buy a property to run my company out of. Being my own boss and owning my office put me in complete control of my surroundings. But just what exactly did I sign myself up for? There are obvious benefits to owning your own office space. There is great pride in property ownership, there are substantial business write-offs for tax purposes, and there is the potential to ultimately sell your property for a profit down the road. At the time, I thought that growing a profitable company while also making smart real estate decisions was the ultimate way to get ahead. What I wasn’t considering is that owning property is also a business, one which we have very little control over once we make the purchase. Here are a few things to consider when deciding if renting or owning is right for your business. Financing – Typically, commercial loans require a larger deposit and higher interest rates than traditional residential mortgages, making them more expensive.
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Cash Flow – With a larger deposit often required, how will this affect your business cash flow? We frequently hear the expression “cash flow is king,” and it’s true. We never want to jeopardize our ability to run our company properly by making investments that tie up our cash on hand. Taxes – When determining how much our mortgage will cost, we also need to factor in the cost of taxes. In most cases, that will add up to several thousands of dollars per year. Repairs – Maintaining a property can often have hidden, unexpected expenses. My office building was built in 1950 so it had the original heating system, old windows and an old roof. When it was time to renew my commercial insurance policy, my insurance company required a roof replacement. $6,500 later I was able to renew my policy. Utilities – When you’re renting a space, often times some utilities are included and others are shared, helping to reduce the cost. When you own the building, you’re responsible for it all. Space Limitations – About 4 years after I started my company, I was up to 13 employees and looking to hire. We had maximized the space at the property I owned. Where would I put employee number 14? We looked at renting a second location, but in the end, we decided to reconfigure the office we had. Running out of space is definitely a concern when you’re locked into a long-term mortgage. And of course, the most important thing to consider is your own sanity. Owning a business can be stressful enough. Give careful consideration to your reasons for wanting to buy commercial real estate for your office location. Weigh all the pros and cons and in the end, make the decision that makes the most short-term and long-term financial sense.
Gil Lantini Founder Ralph Coppolino Co-Founder Mike Casale Senior Designer Keegan Hernandez Junior Designer Digital Marketing Lauren Bansbach Angelica Cabral Julia Cianciolo Alison Dupuis Samantha Gosper Nick Lovett Meghan O’Neill Interns Jennifer Gebhardt Mariana Tzitzouris Jenna Furlong Contributing Writers C. Alexander Chiulli Ted Donnelly Larry Girouard Kristin MacRae Mary OSullivan Gina M. Raimondo Dr. Ronald G. Shapiro Kristen M. Whittle
www.facebook.com/risbj twitter.com/risbj 401 831 7779 info@risbj.com www.risbj.com 1343 Hartford Avenue, Suite 24 Johnston, RI 02919 ©2016 Integrated Media Group D/B/A Rhode Island Small Business Journal
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UPCOMING EVENTS NETWORKING&WORKSHOPS
EVENT
th 24 5th
Network at Noon at Arturo Joe’s Arturo Joe’s 11/5/2016 11:45 am 8:00 pm - 9:30 pm 140 Point Judith Road, Narragansett
Northeast Choreographers Festival Bishop McVinney Auditorium, Providence, RI
th 25 15th
World Trade Day 11/15/2016 Bryant University 5:30 - 7:30 pm 7:30 am pm (All Day) MedMates Networking Event 1150 DouglasGeneral Pike, Smithfield Antonio’s Pizza, Pawtucket, RI
19th
th 26 18th
11/18/2016 A Night at the Garden 7:00 pm - 11:00 The Hilton Garden Innpm Sojourner House’s 6th Annual Masquerade Ball 6:00 pm 1 Thurber Street,Biltmore, Warwick Providence, RI Providence 11/19/2016 9:00 am - 3:00 pm Holiday Extravaganza Craft Fair
1 8th
Monsignor Clarke School Wakefield, RI
The RI Family Owned Manufacturing Consortium 12/8/2016 Polaris MEP 8:30 ampm - 8:00 pm 6:00 315 Iron Horse Winter’s Eve Way, - 6th Providence Annual Juried Art Exhibition Howard Silverman Gallery/East Greenwich Free Library,
First CoffeeRIat South County Museum EastFriday Greenwich, South County Museum 8:00 am 12/10/2016 115 Strathmore Street, Narragansett 10:00 am - 4:00 pm Christmas Craft Fair & Learn ISO 9001:2015 Lunch Polaris MEP Knights of Columbus, Middletown, RI 11:30 am 315 Iron Horse Way, Providence 12/14/2016 11:15 am - 1:00 pm Capital City Networking CityBiz BNIConnection Platinum Chapter Corner Bakery Cafe Chelo’s 8:00 am Banquet Room, Warwick, RI 140 Hillside Road, Cranston 12/20/2016 5:30 Commitment pm - 7:30 pm Brand Sprout RI MedMates General Networking Event 8:00 am Antonio’s Pizza, Pawtucket, RI 166 Valley Street, Providence
th th rd th th 15 th 11 24th 10 20th 8 14th7 10th3
rd 23 4th
Introduction to QuickBooks Course 11/4/2016 The Education Exchange 6:00 pm am - 9:00 am 8:00 33 First North Friday Road, Wakefield Coffee at
JUNE DECEMBER st
MAY NOVEMBER
1/24/2017 Family Event 11:45 Affair am Newport Elks- 1:30 Lodgepm Network 10:00 am At Noon Catered By Patois Catering Southern Chamber, Wakefield, RI 141 PelhamRI Street, Newport
Cranston, Visit RI ForVFW(Kelley MoreGazzero), Events Business After Hours hosted by Munroe Realtors www.risbj.com For More Event Information Visit www.risbj.com Munroe Realtors 6
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5:00 pm 117 Main Street, Wakefield
contents
volume five issue ten
INSIDE THIS ISSUE 6 Upcoming Events
7
8 Small Business News 11 Governor Gina M. Raimondo 15 Rhode Island Real Estate 16 NE Realtor Leaders Convene In Newport 18 Real Estate Spotlight
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23 Testing For EMF In Real Estate 24 Easy Steps For Buying A New Home 26 Your Home Could Be Your Greatest Asset.
32
28 SBA: From The Directorâ&#x20AC;&#x2122;s Desk 30 Professional Growth For The Entrepreneur 32 Leadership Lessons, How Hard Can It Be? 35 Tame Your Paper Clutter 32 Personnel Practices
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ON THE COVER volume five issue ten
REAL ESTATE in Rhode Island
YOUR HOME COULD BE YOUR GREATEST ASSET
PROTECT IT
38 Job Descriptions: Are They Worth The Paper?
Professional Growth For The Entrepreneur 2 0 1 7
R I
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Featured Growwing With IMG
GUIDE TO
P L A N
C O M P E T I T I O N
Guide To Real Estate In Rhode Island
34 www.risbj.com | volume five issue ten
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SMALL BUSINESS
NEWS
Small Business Administration To C e l e b r a t e 2 0 1 6 R h o d e I s l a n d L e n d e r Aw a r d s
PROVIDENCE, RI – The Small Business Administration recently honored those Rhode Island lending institutions that have excelled as SBA lenders in 2016. With 457 SBA loans being made for over $130 million, 2016 proved to be a banner year for Rhode Island lenders. Loan program amounts included, 7(a) loans totaling over $64 million, 504 project participations registering over $34 million, 504 debenture amounts reaching over $27 million, and Microloans tallying almost $200,000. “We are pleased to see the dedication of our lenders to ensuring small business continues to thrive in Rhode Island,” said Mark S. Hayward, SBA Rhode Island District Director. “This years’ 24% increase over last years’ loan total proved to
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be the highest volume of SBA loans in Rhode Island history and that is a testament to the ever growing small business community we have here,” Hayward added. The Rhode Island SBA Lender Awards were held at Pawtucket Country Club and honored five winners in seven categories including; 7(a) Lender of the Year, Coastway Community Bank; 504 3rd Party Lender of the Year, BankNewport; 7(a) Dollar Volume Lender of the Year, Coastway Community Bank; 7(a) and 504 Combined Lender of the Year, Coastway Community Bank; Certified Development Company of the Year, Ocean State Business Development Authority; Micro Lender of the year, South Eastern Economic Development Corporation; and Largest Loan Volume Increase, Citizens Bank.
SMALL BUSINESS
NEWS
Volunteer Day Helps 51,000 Over 5 Years
Company Volunteer Day Brings 3,500+ Volunteer Hours PROVIDENCE, RI – Blue Cross Blue & Shield of Rhode Island’s (BCBSRI) fifth annual day of service, Blue across Rhode Island, included more than 600 employees volunteering at 13 community projects across the state today. The company contributed approximately 3,500 service hours and $65,000 in grant funding and in-kind gifts, elevating the program’s five-year total to more than 18,500 hours and $240,000 in philanthropy. Over the five years, Blue across Rhode Island has created a lasting impact on the lives of more than 51,000 Rhode Islanders by teaming up with 43 community-based nonprofits from 21 cities across the state. Blue across Rhode Island remains the state’s largest singlecompany volunteer day, with more than 75 percent of the BCBSRI workforce participating. This year’s project sites all help to create stronger, healthier Rhode Island communities, whether by supporting families’ physical and mental health or specifically assisting local families in times of crisis. “Blue across Rhode Island is more than just a day of service for us—it’s an example of our commitment to the community in which we live and work,” said Kim Keck, president of BCBSRI. “It is an honor to do our part in creating a healthier state by teaming up with organizations working hard every day to improve the lives of Rhode Islanders.” Blue Cross associates took part in activities including: Helping provide 27,000 nutritiously fortified meals to hungry families across the state with The Outreach Program and We Share Hope. • Fulfilling our 2,000th footwear order as a Blue across Rhode Island team with the Gotta Have Sole Foundation, a Cranstonbased organization that provides shoes to children living in homeless shelters. • Restoring hundreds of children’s bicycles donated through Recycle-A-Bike in Providence, to be shared with kids in need. • Conducting “FitnessGram” assessments for 200 middle school students at Highlander Charter School in Warren, a requirement that would otherwise take school staff a full year to complete.
Project sites by location:
Cranston, Gotta Have Sole Foundation, Middletown Newport County Community Mental Health Center, Newport Confetti Foundation, The Changing Table, North Providence, Playworks Energize Education at Greystone Elementary School, Providence , Crossroads Rhode Island Dorcas International Institute, March of Dimes, Recycle a Bike The Outreach Program / United Way of Rhode Island Warren, Highlander Charter School, Warwick, Kent County YMCA , Woonsocket, Community Care Alliance
About Blue Cross Blue Shield of Rhode Island
Blue Cross & Blue Shield of Rhode Island (BCBSRI) is the state’s leading health insurer and covers more than 450,000 members. Our mission is to improve our members’ health and peace of mind by facilitating their access to affordable, high-quality healthcare. BCBSRI is an independent licensee of the Blue Cross and Blue Shield Association. For more information, visit www.bcbsri.com, follow us on Twitter @BCBSRI, and like us on Facebook at fb.com/bcbsri.
www.risbj.com | volume five issue ten
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SMALL BUSINESS
NEWS
Literacy Volunteers Of Kent County ( LV K C ) H o l d s S u c c e s s f u l F u n d r a i s e r
COVENTRY, RI – Literacy Volunteers of Kent County (LVKC) hosted a comedy night fundraiser with the FUNNY 4 FUND$ comedians on September 30, 2016 at Club Jogues located at 184 Boston St. in Coventry. The headliner was the sidesplitting Billy Simas, and two other hilarious comics delivered laughs and helped LVKC raise over $4,000! Literacy Volunteers of Kent County (LVKC) celebrates over 35 years of service to Kent County teaching illiterate adults free of charge. Tickets were $25, light fare included. There were also baskets raffled and a 50/50 raffle. Thank you to all our generous sponsors: BankRI, Broker’s Service Marketing Group II, LLC, , BJ’s, Cardi’s, Centerville Bank, Concordia Manufacturing, Doggone Good Pet Grooming, Dunkin Donuts, Gary Robichaud, Georg Sommerer, Growing Crazy, Joe Schuttert – Dahlia King of Coventry, Joan Giusti, Judy Brady * Realtor CBRB, Dr.
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Richard & Karen Liner, Marion Gaydos – Jeweler, Piezoni’s * Apponaug * Victor Martinez, Roch’s Produce, Royal Nails Spa, Sandy Cabral Designs, Serena Bates * Fine Art, STARBUCKS Seekonk, Stop and Shop, TACO Bell Coventry, Target Warwick, the Wholean Women. and Walgreens. Literacy Volunteers of Kent County, Inc. (LVKC) is an accredited non-profit affiliate of ProLiteracy, Inc. with 501(c) 3 status. We train volunteers to tutor adults whose limited English literacy skills prevent them from functioning effectively in their homes, workplaces, communities, or as citizens of the United States. Tutoring by volunteers is free of charge, is confidential, and is typically done on a one-to-one basis. LVKC does not discriminate on the basis of gender, age, race, color, religion, national origin, disability, political beliefs, marital or familial status.
Gina M. Raimondo | GOVERNOR
A Message From We
Gina M. Raimondo
To build a strong economy A r e
I n v e st i n g by Governor Gina M. Raimondo
To build a strong economy, we are investing in ourselves. As Governor, I won’t rest until every Rhode Islander has access to the job training they need to get ahead. We used to make things in Rhode Island. We were the jewelry capital of the world and the birthplace of America’s Industrial Revolution. But over time, those jobs moved overseas or were automated. The honest truth is many of the jobs we’ve lost aren’t going to come back in the same form. Which is why I won’t rest until every Rhode Islander has access to the job training and skills training they need to get ahead. Because of the investments we’ve made in skills training through initiatives like Real Jobs RI, and because of our commitment to ensure that at least 70 percent of Rhode Islanders have an associate’s degree or higher by 2025, Rhode Island is positioned to
National businesses like GE are already taking a fresh look at our state. Established companies like Electric Boat are doubling down.
I n
O u r s e lv e s
lead a new industrial revolution in advanced industries. National businesses like GE are already taking a fresh look at our state. Established companies like Electric Boat are doubling down. And no state in New England is adding advanced industry jobs more quickly than Rhode Island. From offshore, renewable wind energy to the Internet of Things, we have an opportunity to make things again. And we’re going to do it by training our neighbors for the new, advanced manufacturing jobs that require the same work ethic and determination that helped Rhode Island to lead the first industrial revolution. Recently, we celebrated National Manufacturing Day on October 7th. In my opinion, Rhode Island’s manufacturing community deserves more than just a day. Throughout October, I’m excited to highlight the important role manufacturing plays in ensuring that everyone has an opportunity to make it Rhode Island. So, I’m excited to officially proclaim the entire month of October as Rhode Island Manufacturing Month to celebrate the 42,000 Rhode Islanders who work in manufacturing. Like so many Rhode Islanders, manufacturing helped my family put food on the table. Let’s keep investing in new skills and innovative job training to ensure that manufacturing remains a vibrant part of Rhode Island’s economy for future generations. Happy Manufacturing Month! www.risbj.com | volume five issue ten
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WE’RE LIKE A GPS FOR GETTING YOUR BUSINESS TO THE RIGHT PLACE. Just Right Commercial Loans from BayCoast Bank. Joe Sheehan 401-274-2106
Whatever your reasons for needing a commercial loan, our Providence team of lenders can help you. With financial advice, and smart business insights, we’re always accessible and ready to listen. Our loan decisions are made locally, so you don’t have to wait long to find out if you’ve been approved. Call Joe Sheehan or Mike Paiva today or call 401-273-0475. The Providence Commercial Loan Office is located at 10 Dorrance Street, Suite 101B. BayCoastBank.com
Mike Paiva 401-273-2539
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Member FDIC Member DIF
®
Rhode Island Real Estate | SMALL BUSINESS
Rhode IslandReal Estate
Commercial â&#x20AC;˘ Residential â&#x20AC;˘ Investment
1,154
$
The average cost of a two-bedroom apartment rental in Rhode Island, According to the 2015 Housing Fact Book by HousingWorks RI
Average Price
per square foot for Newport, RI was $295, an increase of 2.8% compared to the same period last year.
According the NAR Research the total economic impact of a typical home sale in RI is
$211,200
The number of distressed single-family house sales in Rhode Island fell by
19%
$215,000 The median house price in Rhode Island for 2015 as a whole,
the highest in six years
between 2014 and 2015
Average price per square foot for Providence, RI was $165, an
increase of 1.9% compared to the same period last year
www.risbj.com | volume five issue ten
15
REAL ESTATE
NEWS
N E W
E N G L A N D
R E
Convene In By The Association of Realtors
The Rhode Island Association of Realtors hosted real estate professionals from throughout New England recently at the New England Realtors Committee Conference at the Viking Hotel in Newport. The two-day conference, hosted each year by one of the New England states’ Realtor associations, covered trending issues in real estate and specifically, their impact on the Northeast. Keynote speaker, Jonathan Smoke, Chief Economist for Realtor.com, shared his insights with the group, focusing on the importance of millennials and boomers in the emerging market. With job creation favoring the young and the population of those 55 and older growing faster than any other age group, Smoke made it clear that these two demographics will have a major impact on New England’s housing market in the years to come. According to Realtor.com research, the barriers to home ownership faced by most millennials are high student debt and rising rents which make it difficult to save
for down payments. Rhode Island’s efforts in helping younger home buyers through programs like RI Housing’s Ocean State Grad Grant, which offers recent college graduates up to $7000 in down payment assistance, or the First Homes Tax Credit, which provides a credit of up to $2000 against federal income taxes to first-time buyers, may be paying off. Though Smoke’s research showed Rhode Island as having the lowest rate of home ownership in the region at 61 percent, the state has led the region of late in moving inventory quickly. As of August, Rhode Island averaged just 61 days from listing to closing, an sign that demand is for home ownership is thriving. In Rhode Island however, according to Realtor.com data, the Ocean State’s population of those younger than 55 is expected to decline over the next five years so local real estate trends will likely be driven by an older demographic who is looking to downsize or relocate. It will be their needs and desires that will be the primary influence on Rhode Island’s future housing market, not the first-time home buyer market.
Nationally, Smoke predicted existing home prices conforming rate to end 2016 at 3.5 percent, all good signs 16
RISBJ | rhode island small business journal
REAL ESTATE
E A L T O R
L E A D E R S
NEWS
n Newport As with most of the country, the average number of listings was down year-over-year among all six New England states so unsurprisingly, the shortage of housing stock for sale was also a hot topic. Smoke called on the need for new home construction, especially in areas like New England, which has an older supply of homes. He identified overregulation and high impact fees as strong deterrents to the building economy. Rhode Island in particular, has trailed the country in housing starts for several years, and Commerce Department data from Moody’s Analytics showed that as of the beginning of this year, Rhode Island remained one of only two New England states that had not yet experienced a recovery in new construction, though local news reports indicate that the trend is finally changing. As the costs and regulations impacting building requirements escalate, Smoke encouraged Realtor associations to work together with the local construction industry, in attempt to achieve legislative and regulatory relief from some of the factors impeding new construction.
conforming rate to end 2016 at 3.5 percent, all good signs considering where the market was five years ago. Maintaining an adequate supply of inventory will be the key in ensuring continued sales. “We were pleased that so many of New England’s real estate leaders were able to join us in Newport to hear cutting edge information about their specific housing markets,” said Jamie Moore, a Newport-based Realtor and appraiser who will serve as the 2017 Region 1 Vice President of the National Association of Realtors. “Not only were we able to provide a wealth of knowledge from a variety of respected speakers, but it was great to share all that Rhode Island has to offer with those from nearby states. It was clear by listening to our visitors that Newport is not only a very welcoming city but is also a perfect conference destination.”
Nationally, Smoke predicted existing home prices to appreciate 5.2 percent this year and the 30-year fixed
s to appreciate 5.2 percent this year and the 30-year fixed s considering where the market was five years ago. www.risbj.com | volume five issue ten
17
REAL ESTATE
NEWS
MARCHWICKI ELECTED
PRESIDENT OF 5000-MEMBER RHODE ISLAND
ASSOCIATION OF REALTORS In November, Brenda Marchwicki will be installed as the 2017 President of the Rhode Island Association of Realtors at the National Association of Realtors Annual Conference and Expo in Orlando, Florida. The principal owner and broker of BisMarc Properties in Providence, Marchwicki is the former chairperson of the Rhode Island Department of Business Regulation’s Real Estate Commission and a past president of the Greater Providence Board of Realtors. Recently, Rhode Island Small Business Journal asked her about her thoughts on her profession, goals, the housing market and more. Here is what she had to say.
What drew you to the real estate profession?
Consumer confidence will be, and always has been, one of the biggest factors influencing the market. Of course, there are a lot of factors that affect that such as job growth, the political climate, and interest rates and taxes, particularly the real estate tax structure. I also think that the first-home market will be affected by the difficulty that millennial buyers are having in saving for down payments and qualifying for loans due to high levels of student loan debt.
What influence, if any, should trade organizations like the Rhode Island Association of Realtors have in shaping housing policy?
First, I was attracted to the ability to operate my own business under the umbrella of a nationally recognized industry. Second, my boundaries in real estate are unlimited – I can take my business as far as I would like. And third, I’m passionate about being able to assist others with home ownership or investment opportunities for their future financial security and legacy.
The Rhode Island Association of Realtors is an advocate in shaping the industry to protect home ownership rights. In doing so, the association represents both its members and the public on many fronts. For example, the association advocates for positive banking regulations and is working to find solutions to the college debt problem facing today’s graduates. Those are issues that affect both Realtors and their clients.
What/who do you think will be the biggest influence on the market in the next five years?
What are your main goals as 2017 President of the Rhode Island Association of Realtors?
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RISBJ | rhode island small business journal
REAL ESTATE
NEWS
Consumer confidence will be, and always has been, one of the biggest factors influencing the market. better protected in their real estate transactions.
What’s the most important advice you give your clients? Whether you are purchasing or selling, investing or exchanging, it’s extremely important to hire a professional. Their expertise is priceless on all levels. In this ever-changing market, people need an expert in their corner – one who is on top of all the daily issues and deadlines inherent in a real estate transaction. That’s the best way to ensure they are represented to the fullest in what will probably be one of the most important transactions they ever make.
What was the best advice you ever received and who was it from? My focus will be on enhancing professionalism in our industry, teamwork among our colleagues and focus on the issues that impact home ownership. Ultimately, I believe that if I can elevate professionalism, teamwork and focus among our members, ultimately our consumers will be
Education, education, education along with focus, leadership, honesty and accountability.
Words to live by from my husband, Edward J. Marchwicki and my mentor, Joe Accetta. www.risbj.com | volume five issue ten
19
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401.270.1740
Rhode Island Licensed Lender and Broker 20072185LB & 20072187LL. Company NMLS ID 1788. Branch NMLS ID: 289053
1 4 1 7 D o u g l a s Av e n u e , 2 n d F l o o r, North Providence, RI 02904
www.risbj.com | volume five issue ten
21
Rhode Island State Tax Rates Municipalty
Residentiial Tax Rate
% Full Value
Revaluation Year
Commercial RE Tax Rate
Business Personal Property Tax Rate
Barrington Block Island Bristol Burrillville Central Falls Charlestown Coventry Cranston Cumberland East Greenwich East Providence East Side of Prov Exeter Foster Glocester Hopkinton Jamestown Johnston Lincoln Little Compton Middletown Narragansett Newport North Kingstown North Providence North Smithfield Pawtucket Portsmouth Providence Richmond Scituate Smithfield South Kingstown Tiverton Warren Warwick West Greenwich West Warwick Westerly Woonsocket
$18.30 $5.34 $13.06 $18.88 $27.26 $9.90 $20.40 $22.84 $15.78 $23.26 $22.95 $19.25 $14.63 $21.06 $21.77 $20.64 $8.75 $28.75 $23.57 $5.64 $16.07 $10.04 $12.06 $18.91 $27.94 $16.02 $23.06 $15.08 $19.25 $20.94 $18.98 $17.13 $15.48 $19.30 $20.07 $20.06 $22.55 $25.39 $10.64 $35.94
100% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
2011 2012 2010 2012 2012 2010 2010 2011 2010 2011 2012 2012 2011 2011 2010 2010 2009 2012 2012 2006 2008 2011 2011 2009 2007 2009 2008 2013 2012 2013 2012 2009 2012 2011 2009 2009 2013 2012 2009 2008
$18.30 $5.34 $13.06 $18.88 $39.48 $9.90 $24.58 $34.26 $15.78 $23.26 $25.40 $36.75 $14.63 $21.06 $24.74 $20.64 $8.75 $28.75 $26.94 $5.64 $21.34 $15.06 $16.72 $18.91 $34.68 $17.77 $30.88 $15.08 $36.75 $20.94 $21.94 $17.13 $15.48 $19.30 $20.07 $30.09 $22.55 $Varies $10.64 $39.99
$18.30 $5.34 $13.06 $18.88 $73.11 $9.90 $20.40 $34.26 $28.86 $23.26 $56.67 $55.80 $14.63 $28.96 $43.34 $20.64 $8.75 $59.22 $37.02 $11.28 $16.07 $15.06 $16.72 $18.91 $69.91 $42.80 $52.09 $15.08 $55.80 $20.64 $40.38 $59.70 $15.48 $19.30 $20.07 $40.12 $33.85 $40.13 $10.64 $46.58
Per $1,000 of Assessed Value â&#x20AC;˘ Tax Roll Year 2014 (Assessed 12/31/13) â&#x20AC;˘ FY 2015 Source: RI Department of Revenue, Municipal Finance.
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RISBJ | rhode island small business journal
Testing For EMF In Real Estate Transactions Is Skyrocketing | SMALL BUSINESS
Testing for
EMF in Real Estate Transactions is skyrocketing EMF QUALITY SOLUTIONS
A real estate transaction can be exciting but also overwhelming at times with factors such as dealing with the bank, coordinating inspections, planning and expectations, and even sales pressure. Typically, Electromagnetic Field (EMF) Testing has not been part of the inspection process when one does their due diligence, however this has drastically changed in the last few years. Concerns about potential impacts have brought up questions about significant EMF and radio frequency (RF) sources at the property, building or in its proximity. Many indoor environmental and public health research professionals feel that EMF/RF evaluations and measurements should be part of a healthy building inspection. While the scientific community is still divided, many scientists and institutions recommend prudent avoidance as the safest approach. An EMF/RF evaluation at the start of the Real Estate Transactions, before remodeling begins is the best and most cost effective time to implement possible shielding methods. Only trained and experienced professionals with the appropriate and calibrated equipment can determine the exposure in the areas of concerns. AC magnetic fields commonly referred to as EMF, can be hidden and only detected using appropriate EMF testing services protocols and professional equipment. Certain electrical installations and lighting features or wiring areas that are code violations can cause elevated AC magnetic fields. These elevated EMF fields and the possible code violations often go undetected in regular home inspections that solely focus on functionality.
WHY IS IT IMPORTANT?
Our indoor environment has changed dramatically in the past ten years. Many wireless devices are impacting our indoor environment such as cellular antennas, TV and radio broadcasting transmitter, radar, wireless router and access points. Many are added all the time, such as video game systems, wireless printers, baby monitors, security systems, wireless devices and appliances controlled with the latest mobile phone app. This trend will only continue. Do you believe that our recently and dramatically changed indoor environment has no effect on our health and development of our children or performance and well being of employees?
Or do you feel that we should be cautious and choose to limit our personal exposure in areas where we spend a lot of time such as sleeping areas, children’s play areas and our work areas. Many organizations and countries outside the US recommend long term exposure limits and precautionary action levels. Why is this so? Are they more sensitive individuals or are we unaware of the potential dangers? At EMF Quality Solutions, we don’t speculate. We assess an area using scientific methods to provide you with the information to make an educated decision and exercise your right to choose what you want to be exposed to in your own home, building or office. We can help create a low EMF and RF environment in your future building or home. The recipe to a successful outcome is following a systematic protocol in assessment, designing the mitigation plan if necessary and verifying the achievement of the design goals. The steps for a low EMF/RF assessment, consultation and possible development of a mitigation plan consist of:
• Assessment of low and high frequency background levels
present on the property
• Assessment of low and high frequency levels present in the
building
• Develop and design of a possible mitigation according to your benchmarks for sensitive areas
• Consult on prudent placement in all sensitive • Design shielding concepts as indicated • Retain a qualified electrician to verify proper electrical installation and grounding system if indicated • Shielding implementation by qualified craftsman • Measurements to confirm compliance to your benchmarks
• Certification of the site or building
If you would like us to help you in the assessment or design of a low EMF/RF in home or Real Estate transaction, please email us at EMFQualitySolutions@gmail.com
www.risbj.com | volume five issue ten
23
SMALL BUSINESS | Easy Steps For Buying A New Home
Easy Steps For Buying A New by Daniel E. Giroux
1) Preparation Period
• Build a good credit history. Pay all bills on time and keep balances low. • Get mortgage PRE-APPROVAL. • Consider hiring an attorney to review all contracts and agreements associated with the home buying process. Often lenders will have attorneys available for review. • Figure out what you can afford for a down payment and where it will come from. - Consider closing costs which can include taxes, attorney’s fees, and transfer fees. - Consider utilities and monthly bills.
2) Interviewing a Real Estate Professional
• Get a referral from friends, family, and work colleagues that have worked directly with that realtor. Do not use a friend of a friend without a proven track history. • Interview several buyers’ agents. Ask about buyer’s representation contracts and agreements; make sure you understand the terms. • Explain your needs and expectations to the real estate professional you choose to work with.
3) Finding the Perfect House
• Determine what is important to you; particular schools, neighborhood amenities, monthly mortgage payment,
24
RISBJ | rhode island small business journal
Home
public transportation, walkability, etc. • Make sure you include home owner’s assessments, utilities, and taxes when calculating the monthly mortgage payment.
4) Finance the Property
• Contact your mortgage broker or lender. • Make sure you understand the financing terms—ask the lender for clarification, if necessary. • Follow your loan originators direct. They are there to assist you but need to be on the same page. • Do not apply for new credit, quit your job, change jobs, or deposit large amounts of funds during the loan process.
5) Make an Offer
• Read all contracts before signing—make sure you understand all of the terms, ask questions. • Place a competitive bid and be prepared to make a counter-offer. • Keep your credit score stable and in-check by waiting to purchase any big-ticket items until long after the closing. • Ensure the property is inspected by a licensed home inspector.
Daniel E. Giroux NMLS 26531 Owner, A-Plus Mortgage LLC NMLS # 2748 Licensed Rhode Island Lender And Loan Broker - APLUS NMLS# 2748 Rhode Island Loan Broker License– 20041842LB ,Rhode Island Lender License– 20142971LL
Rhode Island Property Advisory Company
FULLY STAFFED MAINTENANCE
Managing Your Property Matters Property Management More than paying bills & responding to complaints it demands commitment, experience, constant attention & clear communication.
Financial Management Meeting and conquering the countless steps in making payments, billing, collections and banking is the business of property management.
Advisory Management Our goal is to work in cooperation, providing advice and creating a management plan for the physical and financial affairs.
Winter Watch Services We are now offering a new service â&#x20AC;&#x153;Winter Watchâ&#x20AC;? for all unit owners. We will take care of your home as you vacation giving you peace of mind.
call 401.736.8300 or visit www .ripac.net www.risbj.com | volume five issue ten
25
SMALL BUSINESS | Your Home Could Be Your Greatest Asset. Protect It.
Your home co
PRO
26
RISBJ | rhode island small business journal
Your home could be your greatest asset. Protect it. | SMALL BUSINESS
ould be your greatest asset.
OTECT IT. by Ted Donnelly
Here’s the good news: Property values continue to rebound after the Great Recession. In fact, Zillow.com reports that the median home value in the U.S. now stands at $180,800—an increase of 3.3% in just the last year.1 So what’s the bad news? According to BloombergBusiness, housing represents 67% of the total wealth held by most Americans—a figure that includes personal savings, investments, and even workplace retirement accounts.2 Given these statistics, it’s easy to see why so many new homeowners are eager to purchase mortgage insurance from their lenders. That way, if something tragic happens, they can be sure that the lenders will be paid in full and that their families will retain ownership of this valuable asset.
Be sure to consider all the options.
It’s important, however, for homeowners to realize that there are other ways to protect the lifestyle and wealth of their families. Personally owned life insurance, for example, can perform many of the same functions as mortgage insurance, but it offers greater flexibility. That’s because life insurance gives your beneficiaries the freedom to determine how the death benefit will be spent. Let’s take a look at why that might be important.
You—and your loved ones—may want greater flexibility.
While your family can always use the death benefit to retire
the mortgage, there may be more immediate financial needs. With life insurance, they have the option of using the money to pay medical bills, cover funeral expenses, or simply keep the household up and running in your absence. It may also make sense for your loved ones to pay down the mortgage over time, so they can use the insurance proceeds for other purposes and take advantage of the mortgage interest deduction. What’s more, personally owned life insurance is portable, so as long as your policy remains in good standing, you will remain covered—no matter where you live or how many times you move. Of course, most people don’t buy a home simply for its value—but now, more than ever, that is an important consideration. If your home—and any equity you have built up—represents your largest financial asset, be sure to weigh all your options and take whatever steps you can to protect it. No matter what you decide to do, there’s a good chance that you—and your loved ones—will sleep better for it. This educational third-party article is provided as a courtesy by Ted Donnelly, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Ted Donnelly at 401-276-8728 or efdonnelly@ft.newyorklife.com.
Ted Donnelly Agent New York Life Insurance Company
With life insurance, they have the option of using the money to pay medical bills, cover funeral expenses, or simply keep the household up and running in your absence. www.risbj.com | volume five issue ten
27
RHODE ISLAND
SBA
From the Director’s desk… Mark S. Hayward, District Director | U.S. Small Business Administration
Rhode Islanders are the face of small business excellence and we need to showcase the incredible talent in this state to the nation.
Are you working with an outstanding Rhode Island small business? Do you own a successful small business with an amazing story to tell? Are you a Chamber of Commerce with an exceptional small business member that should be recognized? Are you a consumer reaping the benefit of an innovative small business? If so we want your nominations for the 2017 Small Business Week Awards. Rhode Island is small business; in this, the smallest state, it is very evident the effect small business has on our communities. It’s small business that is the backbone keeping our state going, and it is small business that continues to innovate in an ever growing, rapidly changing marketplace. Rhode Islanders are the face of small business excellence and we need to showcase the incredible talent in this state to the nation. The U.S. Small Business Administration is now accepting nominations for the 2017 Small Business Week Awards, including the Small Business Person of the Year. Since 1963, National Small Business Week has recognized the outstanding achievements of America’s small businesses for their contributions to their local communities, and to our nation. The categories include Small Business Person of the Year, Exporter of the Year, Young Entrepreneur of the Year, Jeffrey Butland Family Owned Small Business, Entrepreneurial Success Award, Microenterprise of the Year, Veteran-owned Small Business of the Year, Minority-owned Small Business of the Year, Woman-owned Small Business of the Year, Home-Based Small Business of the Year, and Financial Services Champion. The qualifications for each category are as follows: Small Business Person of the Year is that person who has developed an outstanding, growing
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RISBJ | rhode island small business journal
business; an innovative product, increasing jobs, increasing sales, overcoming adversity, community contribution. Small Business Exporter of the Year is someone who has significantly increased export sales and profits, encouraging other firms of export, increased jobs through exports, and innovative methods of creating markets. The winner of the Rhode Island Small Business Person of the Year and Rhode Island Small Business Exporter of the Year must also have had SBA assistance in the growth of their business. The winners will be considered for the SBA national awards and will be invited to a celebration during National Small Business Week in Washington D.C. To be considered for Young Entrepreneur of the Year the owner must not reach their 35th birthday by June 1, 2017 and provide threeyears evidence of success in sales and profits, increased jobs, innovative products, as well as demonstrated potential. The Jeffrey Butland Family-owned Small Business must be a family-owned business that has been passed from one generation to another and owner has responsibility for operating the business with at least 15 year track record. Entrepreneurial Success Award must own and operate a business initially launched as small according to SBA size standards and subsequently developed into a large business; they also must have received SBA assistance to help the business grow. The Microenterprise of the Year is open to any individual who founded, or owns and operates a Microenterprise which received SBA assistance (through SBA loan programs or as client of our technical service providers) may be nominated. Microenterprise is defined as any small business with five or fewer employees including the owners.
Mark S. Hayward
This is your year. Commercial Lending • Commercial Real Estate Lending • Equipment Financing • Commercial Lines of Credit • Preferred SBA Lender
navigantcu.org
· 401.233.4700
Happy is what we do. When customer service hits home, it really shows. To learn more, visit deltadentalri.com.
www.risbj.com | volume five issue ten
29
PROFESSIONAL GROWTH | Professional Growth For The Entrepreneur
Professional Growth F I T
I S
A L L
A B O U T
by Dr. Ronald G. Shapiro, PhD
As part of a series focusing on Rhode Island organizations whose mission includes helping small businesses, their owners and employees grow throughout 2016, we turn to Dr. Taino Palermo who is the Program Director of Community Development in the School of Contunuing Studies at Roger Williams University in Providence, RI and the principal consultant at Palermo Consulting and Nonprofit Solutions in Cranston, RI. Dr. Palermo helps not for profit businesses optimize their operations so that they can thrive in todayâ&#x20AC;&#x2122;s environment which includes fewer and smaller government grants and increased requirements for nonprofits to receive the limited grants and to raise their own funds. Dr. Palermo, for example, helped the Sojourner House, a comprehensive domestic violence agency, develop a long-term plan to convert their funding strategy from one which was heavily dependent upon grants and donations to one which is focused on real estate investment profits as well as more limited grants and donations while staying true to their mission. He has made it his current focus to ensure the success of a program funded by the RI Department of Education by which middle and high school students from Pawtucket and Central Falls earn college credit from Roger Williams University by taking courses online or in person during the evenings. He is in the process of developing programs to fund rehabilitating neighborhoods. How does he accomplish all of this? Dr.
Dr. Palermo and his students collect and analyze data, lots of very detailed data, to match available funding sources with agencies which need the funding.
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RISBJ | rhode island small business journal
B U I L D I N G
O N
E X P E R
Palermo and his students collect and analyze data, lots of very detailed data, to match available funding sources with agencies which need the funding. They use the data to show how funds will be used efficiently and effectively to meet the agencies goals. Based on his research and successes, Dr. Palermo recommends that all students and business, especially those in the nonprofit sector:
1. Be data driven. Having data is the key to obtaining
grants, contracts and running an organization more effectively.
Professional Growth For The Entrepreneur | PROFESSIONAL GROWTH
For The Entrepreneur
R I E N C E S :
W I T H
T A I N O
2. Present your data in visually appealing ways. Focus on telling a story about the data with infographics or simple charts.
3. Understand who your clients are. Continuous
assessment is essential. Populations change and the clients you are serving today may be very different than the clients you served a year or two ago.
4. Maintain an outstanding digital presence. In 2016 your website is your business card. It needs to be easy to find and read from any mobile device including a phone.
P A L E R M O ,
E D D
5. Conduct internal evaluations on a regular basis.
Know what your staff is doing at all times. Have staff cross trained so the temporary or permanent loss of one member has minimal impact on the organization. Resources are scarce, so optimal performance on mission critical tasks is essential.
6. Build collaborative partnerships and diversity.
Grants and contracts rarely go to stand-alone organizations. Dr. Palermo would be delighted to provide education and consulting on how to grow your nonprofit organization. Contact Dr. Palermo at 716-941-1770 or Palermo.ConsultingNPS@GMail.Com for a free initial consultation.
I would like to thank Industrial Consultant Dr. Margarita Posada Cossuto for helpful comments. www.risbj.com | volume five issue ten
31
SMALL BUSINESS | Leadership Lessons, How Hard Can It Be?
Leadership Les S O M E
M U S I N by Mary OSullivan
The management guru, Abraham Zelnick theorized that there was a good reason that managers managed and leaders led. It all has to do with which one is willing to take a risk. “For those who become managers, a survival instinct dominates the need for risk, and with the instinct comes an ability to tolerate mundane, practical work.” – Zelnick. Jake is a manager who survived much reorganization and always lands some position with a fair amount of power. Evidently, the key to his survival is to ensure some level of attention from those at the next level up. His goal was to “be the chief of staff” for upper management. Jake ensured that he had some part, no matter how small in senior level meetings, even if it meant his only function was advancing the slides. He actually grew in this miniscule role, and soon he was scouting out venues for management retreats. He finagled a major award from Special Olympics for the the company’s president by manipulating the company’s internal finance system: The award was given in exchange for a $10,000 corporate donation. And, he was in charge of the invitation list, with all the perceived rising stars attending. Jake made it a point to let everyone know that he was the president’s (always using his first name) right hand man.
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RISBJ | rhode island small business journal
Leadership Lessons, How Hard Can It Be? | SMALL BUSINESS
ssons , H ow H ard C an I t B e ? G S
O N
A B R A H A M
Others may have overlooked this behavior, except that Jake was responsible for a sizable organization of his own. To ward off failure, he surrounded himself with a group of marginally competent sycophants, not unlike himself, who executed his business obligations. Projects underway were handled with a check in the box mentality, always perfunctory and under the radar. One of Jake’s direct reports, with no business experience, led a major review of new business failures. She conjured up an action item list for everyone else in the department to complete. Acceptable responses consisted of only the bare minimum amount of effort. Instead of showing how things could be done differently or improved, the last paper or policy created for similar issues was resurrected . The project was considered completed in the specified amount of time, and Jake’s whole internal team received an achievement award, permitting Jake to be free do master yet another mundane skill he perceived to be needed by upper management. (Purchasing a GPS for a new VP, using company funds.) Jake’s major talent was to perform the most
Large corporations often discourage the described leadership behaviors of challenge, aggressiveness, and innovation, as these behaviors often are seen as negative and even threatening.
Z E L N I C K
ordinary and commonplace work. He knew in order to rise in the eyes of upper management; he had to make himself indispensable. Jake endured some level of derision in his role: “lapdog, lackey, water boy”, etc. were applied. But he seemed to take it all in good cheer. “Somebody has to do it” became his mantra. Jake’s management style seems to defy definition. He has the qualities of an administrator: he believes in a strong chain of command, and unity of command principal, but lacks the elements of fairness and equity that characterize “Administrative” style. It would seem that Jake is really not managerial material, but more of an individual contributor, even though he relies on a certain number of direct reports to ensure his feeling of power and importance and actually do work. If we use Zaleznik’s model for describing leadership behavior, specific examples become less clear. Large corporations often discourage the described leadership behaviors of challenge, aggressiveness, and innovation, as these behaviors often are seen as negative and even threatening. The website Changing Minds.Org devotes a page to leadership versus management. (http://changeminds.org/disciplines/ leadership/articles/manager_leader.htm) They assert that true leaders attract voluntary followers, possess a charismatic, transformational style, people focus, and seek risk. There are many leaders who fit that description, however, managers like Jake with their sycophantic style, ability to manage up, and knack for self preservation somehow seem to survive for years.
Mary T OSullivan
MSOL, ACTP, ACC, An ICF Certified Coach 401-742-1965 mary@encoreexecutivecoaching.com www.encoreexecutivecoaching.com
www.risbj.com | volume five issue ten
33
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Tame Your Paper Clutter | SMALL BUSINESS
Tame Your Paper Clutter by Kristin MacRae
If you ask any disorganized person in business what their biggest burden is, they’ll tell you it’s managing all of the paper that arrives in their office. Even though most of our information is stored in our computers, paper is still around and it will be around for a long time. As long as it’s around, you need to have a system to handle it. Are you working off piles on the floor? Do you have mounds of paper on your desk? Are you missing checks or cash? Does it take you more than 10 seconds to locate a file? Are you late paying your bills? If you answered yes to any of these questions, you have paper management issues that need to be handled ASAP. At some point, you’ve lost clients, time and money due to your issues with paper in your office. Get your paper under control! Every office is different, but the process to handle paper is the same. Whether your paper is coming through the mail, email, fax, or through interoffice, have a system to process each and every paper that arrives on your desk. The longer you let it pile up, the easier it’s going to be for you to throw more papers into the pile and before you know it, you’re in over your head. Here are 5 quick tips to tame your paper clutter. File monthly receipts. If I were to walk into your disorganized office right now, I can guarantee that I’d find receipts all over your office. If you’re using a company credit card, grab a pouch and use it on a monthly basis. At the end of the month, match and attach receipts to your credit card statements and file in a designated folder. As soon as you come back to the office with a receipt, file it in the designated pouch. Each month, you’ll start fresh with an empty pouch.
Tax information. Have a folder for any tax/insurance information that you acquire over the year. As soon as you receive it, file it away. Once tax season arrives, you’ll save time and energy because you’ll know exactly where all of the information is to pass on to your accountant. Keep track of your money. Don’t let money in all forms get lost in the mix. In every disorganized office I work in, we find money every time! I have seen it too many times to count. Handle your money as soon as you receive it. If you aren’t able to handle it right away, dedicate a pouch to your money so you at least have a place to store it until you can get to it. Contain your business cards. Many people struggle with systems for their business cards. Find a system that works for you to organize your cards. Deal with them as soon as you get them or depending on how many you collect a week, maybe set 5-10 minutes a week on a certain day to handle them. Maintain filing systems. If you aren’t working with filing systems, you need to start now. You may have filing systems in place, but you’re not maintaining them. You say you’ll get to filing it later and then you get busy and before you know it, you have hours of filing in front of you in piles everywhere. Take one minute to file it in the moment and the piles will never form. Most of the time you waste precious time searching for a file only to find it’s at the bottom of one of your piles. If you had taken the time to file it in the moment, you wouldn’t have stressed yourself out looking for that file.
Every office is different, but the process to handle paper is the same. Many of you will say, “I’m too busy to get organized.” I’m telling you that you’re wasting time by not being organized. Are you being as efficient and productive as you can be? It’s time to carve out some time in your day, maybe if you have weekends off, you can work on it uninterrupted on a Saturday morning. Get back on track and watch how much free time you’ll gain in your day just by being organized!
Kristin MacRae
Organizing and Efficiency Expert www.organizinginri.com
www.risbj.com | volume five issue ten
35
LEGAL | Personnel Practices: Wage And Hour Essentials Update
Personnel Practices
WAG E A N D H O U R E S S E N T I A L S U P DAT E by C. Alexander Chiulli, Esq. and Kristen M. Whittle, Esq.
As employment lawyers, we are often asked questions related to the classification of employees as exempt versus non-exempt, as well as for guidance in navigating the many federal and state laws and regulations concerning the payment of wages to employees. Rhode Island employers should regularly review their wage and hour practices to ensure compliance with the ever-changing legal landscape relative to these issues. The following reminders highlight aspects of federal and state wage and hour laws and regulations that employers should take into careful consideration. Major Changes to Federal Overtime Regulations. With few exceptions, hourly workers must be paid time and onehalf their regular pay rate for all hours worked over forty in a workweek as well as for time worked on Sundays and holidays. This rule does not apply, however, to certain exempt employees, such as those holding executive, administrative, or professional positions as defined under the federal Fair Labor Standards Act, so long as they are paid a minimum
36
RISBJ | rhode island small business journal
base salary. Starting December 1, 2016, the United States Department of Labor (“DOL”) will significantly increase the minimum salary for many exempt employees, such that most workers earning $47,476 or less per year will be eligible for overtime wages. This increase more than doubles the present threshold of $23,660 per year. According to the DOL, the rule change will supply increased pay to approximately 4.2 million workers nationwide upon its implementation. Rhode Island employers should therefore proactively evaluate whether their employees will be exempt or non-exempt from overtime pay in advance of this forthcoming change.
Minimum Wage: Effective since January 1, 2016, Rhode Island’s General Assembly raised the state’s minimum wage to $9.60 per hour. As of January 1, 2017, the minimum wage for employees receiving gratuities will increase to $5.71 per hour. Relatedly, the Rhode Island Department of Labor and Training (“DLT”) strictly enforces employers’ compliance with hour and wage laws. Rhode Island employers must consequently pay increased attention to determining and correctly paying employees’ wages.
Timekeeping. The Rhode Island
Personnel Practices: Wage And Hour Essentials Update | LEGAL
Unless subject to an exception, employees must be given a thirty-minute meal period for every eight hours worked and a twentyminute meal break for every six hours worked. Department of Labor and Training also mandates that records be kept by employers for all employees, whether salaried or not. It is thus essential that employers keep accurate and detailed daily and weekly time records for all employees for no less than three years in order to comply with Rhode Island regulations.
Breaks. Unless subject to an exception, employees must be given a thirty-minute meal period for every eight hours worked and a twenty-minute meal break for every six hours worked. During a regular shift that is less than six hours long, employers are not required to provide coffee or other breaks. Pay days. Under Rhode Island law, employees must be paid weekly, and pay days must fall within nine days of the end of a payroll period. To be excused from the weekly requirement, employers must file a petition with the DLT. The Director of DLT may then permit payment of employees less frequently under specific circumstances, such as if: (a) the employerâ&#x20AC;&#x2122;s average payroll exceeds 200% of the state minimum wage; (b) the employer pays wages on a preset date at least twice per month; and (c) the employer provides surety in the amount of the highest biweekly payroll exposure in the preceding year. It is vitally important for Rhode Island employers to ensure compliance with the various wage and hour laws and regulations, as violations may result in claims or lawsuits by employees, as well as investigations and potential civil money penalties imposed by government agencies. As always, when in doubt, please contact a seasoned professional to assist.
C. Alexander Chiulli, Esq. Associate, Barton Gilman LLP Kristen M. Whittle, Esq. Associate, Barton Gilman LLP www.risbj.com | volume five issue ten
37
SMALL BUSINESS | Job Descriptions ... Are They Worth The Paper They Are Printed On?
by Larry Girouard
When is the last time you looked at your own job description? When is the last time you looked at one of your subordinate’s job description? If you struggling with the answers to these two questions, you are not alone. Managers and business owners usually look at, or develop, job descriptions for one reason, and one reason only >> to us e them as part of the screening process during the hiring process. They may also be used as the foundation for performance reviews, but that is the exception rather than the rule since regular formal performance reviews are rarely conducted. Job descriptions are used infrequently as a tool to help run the business. Job descriptions are usually more general in nature, offering guidance regarding general responsibilities, with little or no metrics behind them. I suppose this fact is not that surprising since less than 5% of all companies have a strategic plan that is executed on in any manner, shape or form. You don’t need metrics if you don’t have a goal regarding where the company is going. Growing 5%-10% a year while cutting costs is not a strategy.
Job Description Formats Most formats I have reviewed are comprised of descriptive paragraphs and bullet points. The actual documents are usually painfully outdated as they
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relate to what is actually going on in the business on a day-to-day basis. Business environments tend to be dynamic and the job descriptions static, making these documents of relatively little value in running the organization. Better said, after a job description is written, it ends up in a drawer and rarely referenced again. Sound familiar?
Make Job Descriptions a Living Document Job descriptions are the foundation for how an employee is valued by the organization. On the flip side, it outlines to the employee what is expected from him/ her in adding value to the organization. While all this is a good thing, rarely are there metrics associated with the paragraphs and bullet points that quantify these expectations. While no one likes to be measured (Remember school, and the repercussions of getting a “D” on your report card?), job descriptions in the absence of metrics serve little purpose. To be really impactful, job description metrics need to be aligned with the strategic plan, business plan, sales plan, or some vision regarding where the company is going. Without this type of connectivity to the overall direction of the company each job description remains an island unto itself. In reality employees are not isolated from each other, or mutually exclusive from the rest of the company. Job descriptions must have elements that focus on working requirements with other employees, both in the same department and other departments, because that is how work flows.
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Job Descriptions ... Are They Worth The Paper They Are Printed On? | SMALL BUSINESS
Are they worth the paper
they are printed on? I frequently talk about executing plays within a company. I use the sportâ&#x20AC;&#x2122;s play as a great analogy in referencing plays or processes within a company. In both cases they must be practiced if they expect to be improved. In business a play is any flow of work that requires 2 or more people to execute. A good example of a business play is the quoting process. In most companies, unless there are standard products and services, several people and even departments might be involved in the quoting process. This is especially true in the world of contract manufacturers. If a fast response to an RFQ (request for quote) is important to the company, than this must be a line item in the job description for all employees involved in the quoting process. Job descriptions need to be a living document that can be adapted to any continuous improvement program within the company. If a company is improving processes in order to be more competitive, job descriptions must be flexible. Approaching job descriptions in this more analytical manner creates a format that is easier to organize based on the characterization criteria that are most important to the company. It makes it easier to work with the employee because the job description format is actually a model of the job to be performed and it can be used as an effective tool in communicating with the employee.
Organizing job descriptions in Excel One easy way to write job descriptions is to format them in Excel, with each specific responsibility a separate line item. There are many ways to characterize a job description, depending on your needs. A suggestion is to list each current requirement for a specific position, ranked then (a, b, c) based on their importance to the overall strategic plan, and then characterized each based on the estimated time it took for the employee to complete the task. The goal here is NOT to keep tabs on the employeeâ&#x20AC;&#x2122;s every minute, but to work with the employee in determining how to make work more efficiency so that time can be better focused. When we look at waste in organizations, wasted inefficient time is the biggest culprit by a wide margin. Approaching job descriptions in this more analytical manner creates a format that is easier to organize based on the characterization criteria that are most important to the company. It makes it easier to work with the employee because the job description format is actually a model of the job to be performed and it can be used as an effective tool in communicating with the employee.
Larry Girouard
CEO of the Business Avionix Company, LLC, A Business Consulting Firm
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