Febr uar y201 8
BUSINESS
VOL. XXXI NO. 2 | FEBRUARY 2018
MAGAZINE
TRUE PERFORMANCE HOW HIGHMARK’S GROUNDBREAKING PROGRAM LOWERS COSTS, REWARDS BETTER CARE
SPOTLIGHT Q&A:
YMCA OF GREATER ERIE ON GETTING FIT IN 2018
PLUS:
3 WAYS WELLNESS CAN ENHANCE EMPLOYEE ENGAGEMENT
FEATURES FEATURE STORY | WHAT’S INSIDE
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COMMIT TO GET FIT Why education, engagement are key to wellness initiatives
COVER STORY | LOCAL PROFILE
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HIGHMARK
How the health insurer’s groundbreaking True Performance program is lowering costs and rewarding physicians for better care.
SPOTLIGHT Q&A | NONPROFIT
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Gerry Vandemerwe, chief executive officer of the YMCA of Greater Erie, shares the many wellness programs and additional services available through the Y to help get you and your team fit in 2018.
EDITORIAL DEPARTMENTS
SPECIAL SECTION
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BUSINESS BUZZ
EVENTS & EXTRAS
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PEOPLE BUZZ
17
HR CONNECTION
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LEGAL Q&A
WHAT’S NEW
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AWARDS AND PROMOTIONS
WORKPLACE TRENDS
GET ANSWERS
Executive Editor Karen Torres ktorres@mbausa.org
Feature Photography Highmark iStockPhoto.com
Contributing Writers Jenna Bickford Judy Rosatti Angela Zaydon David Weir
Additional Photography iStockPhoto.com Casey Naylon Karen Torres
HEALTH MATTERS | SOLUTIONS
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See exclusive photos from the latest happenings at the Manufacturer & Business Association, including our annual Economic Forecast and Training Recognition Ceremony.
LEGAL BRIEF | COMPLIANCE
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Is your business considered a “business associate” with obligations under the Health Insurance Portability and Accountability Act of 1996, otherwise known as HIPAA. Jenna Bickford
READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
ON THE HILL | ELECTION
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Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org
Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors
Angela Zaydon, the MBA ’s state government relations representative in Harrisburg, introduces the Republican challengers for Pennsylvania’s governor’s race.
ENERGY UDPATE | RESOURCES
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
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Simple steps to keep your small business costs manageable in extreme cold. Judy Rosatti
On the Cover: Value-based health-care programs track the preventive services doctors provide, including annual wellness exams, cancer screenings and immunizations. Learn about Highmark’s True Performance program on page 4. Mission Statement: The Manufacturer & Business
Why you should incentivize your employees to get healthier. David Weir
Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org
© Copyright 2018 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
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FEATURE STORY | WHAT’S INSIDE
Commit to Get Fit
WHY EDUCATION, ENGAGEMENT ARE KEY TO WELLNESS IN THE WORKPLACE There’s been plenty of research touting the praises of workplace health and wellness programs in recent years. In addition to helping reduce health insurance costs, such programs are also reported to lower absenteeism and presenteeism and increase productivity and help attract and retain top talent. Estimates suggest a $2 to $4 return on investment (ROI) for every dollar spent in workplace health and wellness. Yet, there are still many employers that are unsure if they can make them effective in their workplace. And those concerns are valid.
Experts suggest that merely having a wellness initiative in place offers no guarantee of improving employees’ wellbeing. Although more than 85 percent of large employers offer a wellness program, Gallup research shows that only 60 percent of U.S. employees are aware that their company offers a wellness program — and only 40 percent of those who are aware of the program say they actually participate in it. For companies that provide these programs, it might be time for a checkup. To ensure that wellness programs achieve their true potential, experts say companies must regularly audit their wellness initiatives to determine whether employees are participating in and benefiting from them. If they aren’t, it’s vital to find out why. An ineffective program can drain financial resources, erode credibility and yield little to no return on investment. Yet companies also can improve their chances for better results through education and engagement. One way is to enlist managers to promote well-
eing initiatives with their teams and in one-on-one conversations with their employees. This can help overcome some of the top barriers to program participation and success: lack of awareness, lack of interest and suspicions about employers’ motivations. Expert also say when employees are motivated to achieve their goals in a supportive environment, it becomes easier for them to accomplish things that are in their own best interest, such as maintaining good physical health. And the healthier your employees are, the more likely your organizational culture will thrive overall. In this edition of the Business Magazine, we’ll explore some of the many resources that are contributing to employees’ overall health and improving employers’ bottom line. We’ll talk with representatives from Highmark about the health insurer’s True
Performance value-based reimbursement program and how it is lowering costs and rewarding physicians for better care. We’ll also talk with Gerry Vandemerwe of the YMCA of Greater Erie about the Y’s many programs and services that can help you and your team get fit in 2018. In addition, we’ll also highlight some of the current topics that are important to promoting a healthy and safe workplace for all. From insurance, HR and legal services to professional development training, the Association has numerous offerings that can help you on the road to wellness in 2018. Visit the MBA website at www.mbausa.org to learn more!
ENERGIZE YOUR TEAM IN 2018!
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COVER STORY | LOCAL PROFILE Highmark’s True Performance program reimburses primary care doctors, such as Dr. Judy Wesolowski, based on the value of the care provided rather than the volume.
TRUE PERFORMANCE How Highmark’s Groundbreaking Program Lowers Costs, Rewards Better Care Health-care costs are on the rise. And when employees avoid seeking preventive care because of financial barriers, costs rise even more. They end up resorting to emergency care or require hospitalization, which results in a larger financial burden on employees, employers and the healthcare system. According to the Centers for Disease Control and Prevention, Americans use preventive services at half the recommended rate. And it attributes seven of every 10 deaths to chronic diseases, such as heart disease, cancer and diabetes, accounting for 75 percent of the nation’s health spending.
Highmark Inc., one of America’s leading health insurers, recognizes the need for higher-quality, lower-cost preventive care services for its members. In January 2017, it introduced True Performance, a physician reimbursement program that emphasizes value over the volume of care provided to patients. By rewarding physicians for focusing on preventing and managing conditions before they become serious, True Performance is lowering overall costs.
The Value of True Performance
Within the first year of implementation, the value-based care program for primary care physicians (PCPs) showed remarkable results. In 2017, patients of True Performance providers visited emergency rooms 13.1 percent less than those who receive care from a non-True Performance doctor. They were also admitted to hospitals 16.3 percent less frequently, according to CDC research from January 1 through July 31, 2017. “These results show the impact insurers and providers can make when we collaborate to ensure patients are receiving the right care, at the right time, and in the most appropriate setting,” explains Mari Vandenburgh, director of Value-Based Reimbursement Programs for Highmark. With an emergency department visit averaging $1,123 and a hospital inpatient admission averaging $12,782 in the Highmark affiliate network, the cost savings of decreasing the need for emergency and inpatient care is significant. And employees and employers avoid unnecessary spending, as well.
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Highmark redesigned its physician reimbursement program to help people avoid serious illness and to control rising health-care costs.
In 2017, patients who saw doctors, such as Dr. Jeffrey Kim, Primary Care, that participate in Highmark’s True Performance program, recorded fewer emergency room visits and hospital admissions.
“It may seem intuitive, but the True Performance program is changing the way we reimburse providers to focus on doing the right thing for their patients.” - Mari Vandenburgh, Director of Value-Based Reimbursement Programs for Highmark
Improved Quality and Less Waste
The True Performance program was designed to improve health-care quality and patient experiences while reducing overall costs for Highmark’s 1.8 million members. It also aims to streamline processes to make health care more efficient and reduce waste. Highmark developed a system of sharing data with doctors so they may develop successful treatments based on evidence — eliminating the process of trial and error that wastes time and money. “Highmark is able to share data collected from our network to make True Performance as effective and actionable as possible for providers as they work to deliver the best care,” says Vandenburgh. “Frequent and accurate reporting allows us to give providers the ability to identify patients who have not received a recommended screening or treatment or who have not followed through on their doctors’ care plans. Reporting also gives physicians insight into which care and referral decisions produce optimum results for quality, outcomes and value.” Another benefit of the Highmark True Performance program is that it encourages collaboration between PCPs and specialists to ensure smooth transitions in patient care. This helps reduce waste by eliminating test duplication, over treatment and unnecessary costs. The program also emphasizes better communication between doctors and patients. By getting to know their patients and understanding their lifestyles and preferences, doctors are able to make more informed care decisions. At the same time, patients learn the importance of maintaining their overall well-being by scheduling regular check-ups and ageappropriate screenings. “Because a patient’s experience of care may be fragmented during their health-care journey with a mix of tests, inpatient care, outpatient procedures, specialist or PCP visits, Highmark seeks to empower primary care physicians to serve as champions for their patients,” says Vandenburgh.
Focused on Affordability
Developed with a focus on patient health and affordability, True Performance does not follow the traditional
fee-for-service model of physician reimbursement. With True Performance, doctors are reimbursed based on the health outcomes of their patients rather than the volume of services they provide. “It may seem intuitive, but the True Performance program is changing the way we reimburse providers to focus on doing the right thing for their patients,” says Vandenburgh. “Instead of a volume-based model that rewards providers for doing more, True Performance rewards doctors for achieving and maintaining strong performance by providing quality, efficient care that keeps patients healthy.” With 7,400 participating physicians, Highmark’s True Performance program is one of the largest PCP-based and private value-based programs in the United States. Through its overall strategy of combining doctor reimbursement, benefit plan design, health network design and population health, the program is projected to save $50 million each year across employers who offer Highmark health insurance. For more information about Highmark’s True Performance program or to download a free eBook, visit www.HighmarkValueCare.com.
About Highmark Inc. Highmark Inc. and its health insurance subsidiaries and affiliates collectively are among the 10 largest health insurers in the United States and comprise the fourthlargest Blue Cross and Blue Shield-affiliated organization. Highmark Inc. and affiliates operate health insurance plans in Pennsylvania, Delaware and West Virginia that serve 5.2 million members and hundreds of thousands of additional members through the BlueCard® program. Its diversified businesses serve group customer and individual needs across the United States through dental insurance, vision care and other related businesses.
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Affordable insurance can be hard to find.
LOESEL-SCHAAF INSURANCE AGENCY, INC. Health Care Workers’ Compensation Property Dental
Not anymore. At Loesel-Schaaf Insurance, we know just where to look. Because insurance is our sole focus. And protecting our clients is our highest priority. As one of the region’s largest insurance providers, our comprehensive coverage plans come from the industry’s most respected carriers — providing solid support at rates you can actually afford.
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See the Difference, Choose HealthSouth When you think about it, no two things are really the same. That goes for rehabilitation programs too. And no one knows that better than HealthSouth Rehabilitation Hospital of Erie. We are licensed to give the most intensive level of rehabilitation services recognized by Medicare. Our physicians* and therapists plan a personalized comprehensive rehabilitation program to get you back on the road to recovery. Rehabilitation can make a real difference following an illness or injury. Schedule a tour and see the difference a higher level of care can make. * The hospital provides access to independent physicians.
A Higher Level of Care® 143 East Second Street • Erie, PA 16507 814 878-1288 • healthsoutherie.com ©2017:HealthSouth Corporation: 1068073
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SPOTLIGHT Q&A | NONPROFIT
YMCA of Greater Erie on Getting Fit in 2018 From wellness to well-being, more and more employers are transforming the health-care landscape — and reducing health-care costs — by encouraging employees to embark on self-improvement initiatives based on their interests, goals and needs. Here, Gerry Vandemerwe, chief executive officer of the YMCA of Greater Erie, shares the many wellness programs and additional services available through the Y. The YMCA of Greater Erie has been a leading nonprofit community resource in the areas of youth development, healthy living and social responsibility for 156 years. What is the Y’s mission and vision? The Y is deeply rooted in communities throughout Erie County. We work in partnership with like-minded organizations to collectively improve the quality of life of all citizens by aligning our priorities with our community’s vision as identified in Erie Vital Signs, Erie ReFocused and Emerge 2040. As such, we concentrate our community outreach programs in these core areas: Health, Education, Safe Spaces and Hunger. Our strength to deliver impactful programs and services come from our dedicated staff, volunteers and donors; a long-standing reputation of reliability and accountability; and fiscal responsibility. Highlights of our community impact in 2017 include: 39,000 people served; $1,008,193 in services and financial assistance donated to 9,136 children, teens, families and seniors; 812 volunteers invested 16,339 hours equaling $223,000 in estimated work value; 472 youth received free swim lessons keeping them safe in and around water; 2,962 children growing up learning at the Y; 3,041 families strengthened family bonds; 13,747 seniors kept active and connected with others at the Y; 379 teens empowered to reach their full potential; 417,000
healthy meals and snacks served; and, 128 organizations and 692 individuals donated to the Y. What is the value of a Y membership? At the Y, you’re not just a member of a facility; you’re part of a cause. With a shared commitment to nurturing the potential of kids, improving health and well-being, and giving back and supporting our neighbors, your membership will bring about meaningful change not just within yourself, but within our community too. We are open to everyone and embrace diversity, and our programs reflect the unique needs of our community. We are constantly updating our facilities and adding to our program offerings to fit the needs of you and your family and those in the community. How can the Y assist employers with their wellness initiatives? Being healthy means more than simply being physically active. It’s about maintaining a balanced spirit, mind and body. That’s why health, well-being and fitness are so much more than just working out. Beyond modern fitness facilities, we provide educational programs to promote healthier decisions, and offer a variety of programs that support physical, intellectual and spiritual strength.
activity level, you’ll find people just like you looking to live a bit healthier. Members and program participants often cite the supportive atmosphere of other members and staff as some of the key factors in their achievement of greater well-being. There’s no doubt about it that workplace wellness is worth it. We believe that healthy employees help make a healthy and successful company. Our Corporate Wellness Program is tailored by employers in order to best meet the needs of the employee. Customization includes utilization reporting and reimbursement incentives, guest speakers, participation in corporate health fairs, and corporate sporting leagues are available, as well. What are some exciting Y events/ programs that we should look forward to in 2018? We want to encourage our members to utilize the Y as often as they can. Sometimes, it’s more convenient for members to utilize a Y in a different location when traveling, near a workplace or in another region. Now, YMCA of Greater Erie members have the flexibility to use other Y facilities across the U.S. at no extra charge. A member simply presents their Y keytag and enjoys access to any YMCA in the United States as part of nationwide membership.
At the Y, a supportive community is a big part of wellness. At every age and at every
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How do you and your employees meet your corporate social responsibility?
“Donating is awesome, but organizing a blood drive is amazing. We have employees from all over the world that donate in Erie, whether they are residents or visiting our office. It’s the easiest and most important gift that can be given.” — Tracy White, Human Resources at Logistics+
Hosting a blood drive is a great way to give your employees the chance to make a difference to family, friends & neighbors right here at home. Community Blood Bank is the exclusive supplier of blood to the hospitals in Erie County, and to many hospitals throughout Northwest Pennsylvania. We are proud to partner with hundreds of businesses and organizations across the region, and we want to be your partner too! Call (814) 456-4206 to schedule a blood drive at your location. Thirty minutes is all it takes to save 3 lives in our own community. 2646 Peach St., Erie
(814) 456-4206
www.fourhearts.org
LCS is a licensed agency recognized by the Commonwealth of Pennsylvania, Department of Human Services and Office of Intellectual Disabilities and is also certified by the Office of Mental Health. The agency is funded in its efforts by the Erie County Department of Human Services, Cameron and Elk Behavioral/Developmental Program, the McKean County Department of Human Services, Community Connections (formally known as Clearfield Jefferson Mental Health/Mental Retardation Programs), and the Forest-Warren Department of Human Services, and grants from the community, as well as private contributions.
OUR MISSION: LAKESHORE COMMUNITY SERVICES’ (LCS) mission is to enhance the ability of persons with mental and physical disabilities to live as independently as possible through the acquisition of skills and utilization of services that promote each individual's self-direction, personal worth, and value. OUR HISTORY: LCS has been providing residential care for persons with intellectual disabilities in Erie County for over 30 years. In the mid 1980's LCS was created in response to the need of the Erie County Department of Human Services for a new residential service provider. It was commissioned with the task of returning more than fifty local citizens in large institutions to small community-based settings. Within its first decade, LCS broadened its mission to include semi-independent living for persons with serious and persistent mental illness, once again creating a program not otherwise duplicated in the local service system. In 1994 the agency added
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info@fourhearts.org
Supported and Family Living Services for individuals with intellectual disabilities. And in 1999 the agency opened an office in Corry, PA with the initiation of Support Services for persons living in a facility operated by HANDS.
OUR LEGACY: LCS provides residential care or assistance to more than 700 individuals through the following programs: Waiver Residential, Life Skills, Life Sharing, Supported Living, Housing Support, Mobile Medication Monitoring, Adult Training Facility and Blended Case Management. To learn more, visit us at lakeshorecs.org.
HEALTH MATTERS | SOLUTIONS
Incentivize Your Employees to Get Healthier David Weir is the president of UPMC WorkPartners, that provides health and productivity solutions to high-performing companies throughout the United States. Its suite of services includes workers’ compensation, absence management, employee assistance programs, employer health services, health management and wellness, and consulting services. UPMC WorkPartners is part of the UPMC Insurance Services Division. Bottom line is, paying your employees to get healthier can get results, and it’s worth the investment. When employers offer incentives, for example, employee participation in health/wellness programs typically significantly increases. So it’s no surprise that incentivized wellness programs are becoming more popular each year, with some estimating that as many as 70 percent of large employers are currently offering financial incentives with their wellness program. The question remains, however, which incentive strategies are right for your organization, and which aren’t? Below are some considerations for employers looking to implement an effective health management and wellness incentive strategy. The carrot or the stick? As mentioned above, incentives can be effective in shaping certain health behaviors. Rewards, or
“carrots,” as well as penalties, or “sticks,” can be effective in certain situations. Behavioral economics research suggests that loss aversion may provide greater motivation to change than a positive gain of similar value; however, one must balance that potential gain with the type of incentive that would fit best in an employer’s culture. One must also carefully weigh the risks posed to the program from an employee and public perception perspective. Make the task clear and offer an incentive that is proportional to the task. Smaller and simple incentives tend to work best for one-time tasks, such as taking a health risk assessment or getting a health screening. These are single, standalone actions. Incentives successful at helping employees with ongoing, sustained behavior change, such as completing a multi-session behavior change program or achieving a certain health outcome,
require higher value incentives and more sophisticated, periodic delivery to be effective. Award incentives early and often for multiple actions or more difficult tasks. When incentives work for promoting longerterm behavior change, it’s usually because individuals are awarded immediately and frequently — for example, at the start of the program, halfway through, and again at program completion. Individuals will tend to discount the value of the incentive if they perceive it to be too far in the future. Get the word out loud and clear. Strongly communicating your incentive strategy to employees is key. Regarding health risk assessment completion, for example, one study demonstrated that strong communication could increase participation by as much as 25 percent, given the same type (non-cash, cash, or benefit integrated incentive) and denomination of incentive. Leverage the “fun” factor with healthy competitions and reward drawings. Tap into your leaderships’ and your employees’ competitive side by leveraging performance-based drawings and rewards throughout your incentive campaign. This has been shown to drive higher rates of participation for equivalent amounts of investment. One way to accomplish this is to structure quarterly drawings for individuals who achieve a certain level of participation to qualify. Setting these qualifications slightly higher each quarter can push individuals to participate earlier and more often throughout the program year. Build an environment and culture that is conducive to improving health. As you’re setting your incentive strategy, don’t overlook the opportunity to maximize the investment by instituting supportive environmental and cultural changes that will align with your health objectives. These changes are often very low or no cost, but can pay dividends in the participation and overall success of your program. Simply showing visible leadership support for the initiatives through a CEO letter or video, or through visible senior leadership participation in the activities can significantly improve employee participation. For more information, visit www.workpartners.com.
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Why would you choose to go anywhere else? We’re proud to once again be recognized by U.S. News & World Report as one of Pennsylvania’s Best Hospitals. We are the only hospital in Erie ranked by U.S. News & World Report, and being ranked 9th out of nearly 250 Pennsylvania hospitals puts us in the top 4.4% of hospitals in the state. But the greater honor is knowing that we are providing you with world-class care, close to home. To learn more, visit UPMCHamot.org/USNews.
LEGAL BRIEF | COMPLIANCE
Enforcement Actions on the Rise: Is Your Business a ‘Business Associate’ With Obligations Under HIPAA? While HIPAA is commonly understood to apply to health-care providers, its provisions actually have a broader reach. HIPAA applies to “Covered Entities,” which include certain health-care providers, health plans and health-care clearinghouses. In addition, the HITECH Act of 2009 expanded certain HIPAA requirements to “Business Associates.” A Business Associate is any person or entity that performs services, functions or activities for a Covered Entity and receives PHI in order to do so. Businesses such as information technology companies, data analysts, billing companies, consultants, attorneys, accountants, and others may be Business Associates with obligations under HIPAA.
Jenna Bickford is a partner in the Business Transactions Group of MacDonald Illig Attorneys. She represents clients across a number of practice areas, including business transactions, real estate, government services and public finance, and health care. The U.S. Department of Health and Human Services, Office of Civil Rights, conducted 17,694 investigations under HIPAA (Health Insurance Portability and Accountability Act of 1996) in
2015, up from 5,393 just 10 years earlier. In addition, fines imposed in 2016 increased 300 percent from the prior year. With enforcement actions, including onsite audits, on the rise, it is important for businesses that interact with health-care organizations to know if they have obligations under HIPAA. Rules and Regulations HIPAA’s “Privacy Rule” sets forth rules for the use and disclosure of “Protected Health Information” or “PHI.” PHI is personally identifiable information related to a person’s physical or mental health, provision of health care to the person or payment for such care. HIPAA’s “Security Rule” requires certain safeguards be implemented in order to protect the security of PHI stored or transmitted electronically.
Some key obligations of Business Associates include: • Having a “Business Associate Agreement” in place that governs the obligations of the Business Associate with respect to PHI it receives from the Covered Entity. • Implementing certain administrative, technical and physical safeguards to protect PHI the Business Associate receives from the Covered Entity. • Reporting certain impermissible uses and disclosures of PHI to the Covered Entity. If you or your business performs services, functions or activities for a Covered Entity, it is critical that you analyze whether you are a Business Associate with obligations under HIPAA. If you need assistance with HIPAA compliance, please contact Jenna Bickford at 814/877-7762 or jbickford@mijb.com or any other member of MacDonald, Illig, Jones & Britton’s health-care group. mbabizmag.com • FEBRUARY 2018
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BUSINESS BUZZ | WHAT’S NEW CAST YOUR VOTE FOR ‘WHAT’S SO COOL ABOUT MANUFACTURING’ The Northwest Industrial Resource Center (NWIRC) recently produced the “What’s So Cool About Manufacturing (WSCM)” student video contest in Erie County. The goal of the program is to introduce 7th and 8th grade students to “cool” manufacturing jobs and career opportunities. The 12 participating school teams (and their manufacturer partner) include: City of Erie (Smith Provision), Fairview Middle School (American Turned Products), Fort LeBoeuf Middle School (LORD Corporation), Harbor Creek Junior High School (Port Erie Plastics), Iroquois Junior High School (McInnes Rolled Rings), J.S. Wilson Middle School (Rehrig Pacific Company), North East Middle School (Seaway Manufacturing), RB Wiley Charter School (Onex, Inc.), Saint Jude School (Industrial Sales and Manufacturing), Walnut Creek Middle School (Finish Thompson) and Westlake Middle School (Matrix Tool). Numerous award categories will be recognized, but the Viewer’s Choice Award will be determined by the community with online voting. Mark your calendars for February 26-28 to view and vote for your favorite video at: www.whatssocool.org (then find the Northwest contest). The Awards Gala is
Visit www.whatssocool.org/contests/northwest-pa on February 26-28 to cast your vote for the “What’s So Cool About Manufacturing” Viewer’s Choice Award. scheduled for March 8 at the Mary D’Angelo Performing Arts Center at Mercyhurst University. In addition to the featured manufacturer sponsors, the program is supported by WQLN; Career Street; Merrill Lynch; Erie County Technical School; Marquette Savings Bank; Haines Printing; Lillis, McKibben, Bongiovanni & Co; NEFF; and McGill Power Bell.
Smiles need a strong foundation. Delta Dental can help build yours.
Delta Dental of Pennsylvania 800-471-7091 deltadentalins.com
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Based in Erie, with regional offices throughout its 13-county service area, the NWIRC is a private, nonprofit organization dedicated to serving small- to medium-sized manufacturers with up to 500 employees. The NWIRC’s new office location, as of January 29, is 8425 Peach Street, Erie, PA (in the WQLN building) with new phone number 814/217-6060. For more information, visit www.nwirc.org.
PEOPLE BUZZ | AWARDS AND PROMOTIONS
CHAFFEE NAMED PRESIDENT, CEO OF TOM RIDGE ENVIRONMENTAL CENTER FOUNDATION
NORTHWESTERN EDUCATOR WINS MFG DAY TEACHER SURVEY
Barbara Chaffee has been named president and chief executive officer of the Tom Ridge Environmental Center Foundation. Chaffee formerly served as the president and CEO of the Erie Regional Chamber & Growth Partnership.
Chaffee was founding principal and president of Public Intelligence, a strategic communications, marketing and positioning company and as a partner in Ripple Effects Interactive. Before joining Public Intelligence and Ripple Effects, Governor Tom Ridge chose Chaffee to help him establish the Office of Homeland Security. As special assistant to the president of the United States, Chaffee was senior director for public liaison; she worked with the private sector, as well as international trade and special interest organizations and served on bilateral teams for the smart border agreements with Canada and Mexico. Chaffee served under Governor Ridge as Pennsylvania’s Deputy Secretary for the Department of Community and Economic Development. Under her direction, the state was widely recognized for its innovation and leadership in economic development, tourism and interactive marketing. In 2001, Chaffee was named by Travel Agent Magazine as one of the 115 Most Powerful Women in Travel globally. In 2003, Chaffee was selected by Gannon University as one of two Distinguished Pennsylvanians and in 2014 was honored as one of the Mercy Center’s Women Making History. In 2016, she received the Community Service Award by the Eagle’s Nest Leadership Corporation. The mission of the Tom Ridge Environmental Center Foundation (TRECF) at Presque Isle is to forge a partnership between the private sector and the Department of Conservation and Natural Resources at Presque Isle State Park in order to enhance educational programming, natural history research and Erie visitor services opportunities of the highest quality to assure that the Tom Ridge Environmental Center is nationally recognized as a center of excellence now and for generations to come.
Clint Corder, technology teacher at Northwestern High School (center), and students from Wildcat Ventures show off the new drone Mr. Corder won for his classroom, as part of the 2017 MFG Day Teacher Survey. The exit survey was conducted following the 2017 MFG Day event held on October 11 at the Bayfront Convention Center Erie, which was attended by more than 2,000 students, educators and business and community leaders. The MFG Day celebration is an exhibition of innovation, technology and career opportunities in today’s manufacturing industry. The event showcases more than 60 exhibits, programs and demonstrations, designed for participants to experience innovative manufacturing technology in a hands-on, interactive environment. The 2018 MFG Day event is set for October 4, 2018 at the Bayfront Convention Center in Erie. To learn more, visit www.pamfgday.com.
IN EMERGENCIES, SECONDS MATTER. The Conference Center offers fully equipped rooms at one low price. Visit www.mbausa.org or call Norm Zymm at 814/833-3200 or 800/815-2660 to book your next meeting or event today.
Workforce CPR and AED Training Ensure your employees are prepared for onsite emergencies. Our location or yours. Flexible scheduling Schedule a training session for your employees today!
814-870-1040
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Contractors & Construction Managers Since 1906 814.454.7147 | www.eeaustin.com
Hamot Heart Institute, Erie, PA
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EE Austin & Son offers a dynamic management team committed to providing construction excellence. Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906. EE Austin & Son remains steadfast in its century old promise to... “Do the right thing...all the time.” It’s the Austin Difference.
Healthcare • Education • Institutional • Retail • Hospitality • Industrial • Concrete
The Erie County Technical School supports careers in health and wellness by offering quality technical education programs in Health Assistant and Cosmetology. SINCE 1968
CELEBRATING
For more information contact ECTS at 814.464.8600 or visit ects.org.
YEARS
SINCE 1968
CELEBRATING
YEARS
8500 Oliver Road | Erie, PA 16509 | (814) 464 - 8600 Erie County Technical School is an equal opportunity educational institution.
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ON THE HILL | ELECTION
Who’s Not Afraid of the Big, Bad Wolf? Meet the Republican Challengers for Pennsylvania’s Governor’s Race
Angela Zaydon is the Association’s state government relations representative in Harrisburg. Contact her at 814/460-3136 or azaydon@mbausa.org. Pennsylvania has four candidates running on the Republican primary ticket for governor in 2018. All of them have strong campaign messages and all are critical of incumbent Governor Tom Wolf’s record of trying to raise taxes, as well as his longstanding liberal-leaning views and policies. However, their background, achievements and qualifications are all very different. Here’s what you should know: Laura Ellsworth - www.ellsworth2018.com Ellsworth served as the partner in charge in a very large international law firm where she has fought for innovators, employers and family businesses that have created more than 100,000 jobs in Pennsylvania. Her track record for getting things done is impressive, as well as her leadership positions in civic organizations. Ellsworth has worked to diversify our economy, create jobs and to reform pensions and reduce taxes. She was also a leader of innovative workforce development programs.
Ellsworth was named by Governor Rendell as one of the Top Businesswomen in Pennsylvania and was appointed by Governor Corbett to serve on the boards of the Pennsylvania State System for Higher Education, the Pennsylvania Council on Privatization and Innovation, and the Pennsylvania Council on the Arts. Paul Mango - www.mangoforpa.com Mango is a graduate of West Point, where he received his diploma from Ronald Regan. After a long career of serving his country, he received his master’s degree in business from Harvard. He has more than 25 years of experience as a business leader, with a strong focus on health-care issues. He has a skillset for helping Pennsylvania outcompete other states and countries for the jobs of the future. Mango prides himself with his family and family values. He touts himself an outsider and criticizes the “Harrisburg” politics as usual mentality. He was the first one to run television ads. Mike Turzai - www.repturzai.com Turzai is the latest to enter the race. Rumors were flying for months that he was going to run, but his official announcement only came in late November 2017. Turzai is currently the Speaker of the House of Representatives and has served in the
House since being elected in 2001. As a legislator, Turzai has pushed hard to control government spending in order to reduce taxes on family and business. He has worked hard against Governor Wolf’s constant tax-and-spend agenda. He is best known for efforts of changing the liquor monopoly in Pennsylvania, but he also has championed lawsuit abuse and promoted school choice. Scott Wagner - www.wagnerforgov.com Scott Wagner hit Harrisburg with force as the first Senator ever elected by a write-in vote. He has been vocal on the political waste in Harrisburg since Day One and has been running for governor since his first day of work in the Senate. Wagner has been a successful businessman for over 40 years. He has several businesses in Pennsylvania, as well as other states. Currently, he is the president and owner of Penn Waste and KBS Trucking in York, PA. He has the ability to self-fund a statewide campaign so his ability to successfully fund-raise will not be as important. Bottom Line All four candidates want conservative politics, job creation and businessfriendly environments. The Pennsylvania primary will highlight each of their strengths, their ability to make positive change in the Commonwealth and their ability to become a household name by May 15, 2018.
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HR CONNECTION | WORKPLACE TRENDS STUDY: WORKPLACE HARASSMENT PLAGUES U.S. EMPLOYEES
A new university study finds that workplace harassment is directly tied to physical and psychological problems experienced by victims, such as stress, loss of sleep, depression and symptoms of post-traumatic stress disorder. Workplace Harassment and Morbidity Among U.S. Adults also found that victims were more likely to be female, obese, multiracial and separated or divorced. The report is based on an analysis of 17,500 individuals who participated in a 2010 national health survey.
3 Ways Wellness Can Enhance Engagement
Lead author Jagdish Khubchandani of Ball State University said the results suggest American workers are being exposed to harassment and that their health is suffering. “Harassment or bullying suffered by American employees is severe and extremely costly for employers across the country. Harassment harms victims, witnesses and organizations where such interactions occur,” he said.
A recent Gallup study reports that approximately 51 percent of U.S. workers are either actively looking for a new job or keeping an eye out for openings. Some say it’s a people or a hiring problem, others chalk it up to the natural employee lifecycle. An investment in the well-being of your employees as individuals is an investment in the company itself. Here are three examples of how wellness can turn your company around:
The research found that, over a 12-month period: • About 8 percent of respondents said they were threatened, harassed or bullied at work.
1. Morale - It’s not a leap to suggest that the way an employee feels about their job directly impacts how they perform on the job. Around 70 percent of U.S. workers report not being engaged at work and about seven out of 10 of them aren’t being utilized to their full potential.
• Those reporting higher rates of harassment include hourly workers, those working for state and local governments, multiple jobholders, night-shift workers, and those working nonregular schedules
Wellness initiatives can strengthen the commitment of the individual to the company. Employees who feel cared for are likely to match that feeling in commitment to the company – not to mention engaged employees perform 20 percent better than their counterparts.
• Female victims reported higher rates of psychosocial distress, smoking and pain disorders like migraines.
2. Relationships - Another Gallup study referenced that about 20 percent of U.S. workers report having a best friend at work, which in itself isn’t that interesting. If employers could get that number up to 60 percent, the study argues that the resulting bonds would influence higher customer satisfaction and a 12-percent increase in profits! Your employees will carry a greater sense of responsibility and purpose because they won’t perceive their work as only impacting them as an individual, but how it impacts the team and company, as well. Offering activities that bring your team together can help foster closer relationships.
Khubchandani said harassment could be reduced by organizations if they were willing to accept the prevalence of the problem and acknowledge the high costs for employees and employers. Interventions should be comprehensive, including practices and policies to protect employees at risk, and protocols to assist those who are victimized.
EDUCATION KEY TO UTILIZATION OF WELLNESS BENEFITS While a majority of employers say their culture focuses on improving overall well-being, too many of their workers aren’t aware of all of the organization’s benefits to help them – or they’re just not motivated enough to do anything about it, according to LifeWorks’ report, “Are we doing enough for employees? A look at wellness benefits.”
3. Culture - A commitment to wellness is a commitment to building a strong workplace culture, and it follows that caring for your team means caring for your business. A strong workplace culture impacts more than just your employees. Culture seeps out into the interactions employees have with customers, partners and the community. Your company’s biggest asset is the people that have bought into the company’s mission. Ignoring the needs of the people that keep the ship afloat is dangerous and might leave you treading in dangerous waters.
LifeWorks surveyed 500 hiring professionals and employers and found the more popular well-being benefits are health insurance, flexible scheduling and free food and snacks. However, less-utilized benefits include employee assistance programs, wellness programs and mindfulness training.
For more information on employee engagement, view the MBA’s upcoming training courses at www.mbausa.org.
The top reasons why employees don’t use these additional wellness benefits include: they are unaware of the benefits; they don’t understand how to use the benefits; they don’t have time to use them; they have no interest in addressing their own well-being; or they don’t feel supported by their peers.
Tracy Daggett is a training specialist at the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 or email tdaggett@mbausa.org.
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LEGAL Q&A | GET ANSWERS IS SEXUAL HARASSMENT THE ONLY TYPE OF WORKPLACE HARASSMENT MY COMPANY SHOULD BE CONCERNED WITH? No. Your anti-harassment policy should prohibit all types of workplace harassment. The Equal Employment Opportunity Commission defines harassment as unwelcome verbal or physical behavior that is based on race, color, religion, sex (including pregnancy), gender/gender identity, nationality, age (40 or older), physical or mental disability, or genetic information.
WHO SHOULD I HAVE CONDUCT MY WORKPLACE INVESTIGATION?
HR is the most common choice. Employers often assign the responsibility for investigations to HR professionals because of their specialized job training, as well as prior experience in conducting workplace investigations. HR representatives hold a particular advantage because of their superior interpersonal skills; employees typically feel comfortable with them and are willing to confide in them. HR also has the ability to remain impartial, is familiar with the employees, and has knowledge of the organization – and of employment laws.
IF AN EMPLOYEE GOES TO HR WITH A COMPLAINT OF HARASSMENT BUT ASKS HR NOT TO DO ANYTHING ABOUT IT, WHAT SHOULD THE EMPLOYER DO?
In such circumstances, the employer still has the legal obligation to investigate and, if appropriate, remedy the conflict. The company can inform the alleged victim that it will make every effort to keep the matter confidential, but that it cannot promise to do so, since it has the legal obligation to fully investigate the workplace dispute.
HAVE AN HR/LEGAL QUESTION? GET ANSWERS!
The Manufacturer & Business Association understands that HR and employment law questions can arise at a moment’s notice. And our HR/Legal team is here to help! MBA members can call our certified HR specialists and labor and employment law attorneys at our FREE HR/Legal Hotline anytime, at no charge. Call 814/833-3200 or 800/815-2660 today!
Workplace Harassment: Employers, Be Prepared! If you’ve seen the news lately, then you probably are aware of the almost weekly allegations of sexual harassment claims against high-profile individuals. These allegations have brought about a heightened sense of awareness about sexual harassment in the workplace to all companies, regardless of industry or size. Which begs the question: Is your company prepared to handle such a claim? To limit your exposure and reduce your company’s liability in such matters, employers should establish firm human resources practices. To verify your human resources policies and best practices, consider conducting an HR audit. This will allow you to determine whether you have the essential practices and policies in place to stop sexual harassment from occurring or to defend the company in the event that a lawsuit does happen. Here are some practices and policies you want to have in place: • Anti-Harassment Policy. In your employee handbook, you should have a policy dedicated to harassment. Some key elements of the policy should include the following: • definition of sexual harassment • statement that sexual harassment will not be tolerated • statement that any wrongdoers will be disciplined or terminated • procedures for reporting claims of sexual harassment • statement that any complaints will be promptly investigated • statement that retaliation will not be tolerated • Annual Harassment Training. At least once a year, conduct training sessions for employees. These sessions should teach employees what sexual harassment is, explain that employees have a right to a workplace free of sexual harassment, review your complaint procedure and encourage employees to use it. Also, at least once a year, conduct training sessions for supervisors and managers that are separate from the employee sessions. The sessions should educate the managers and supervisors about sexual harassment and explain how to deal with complaints. • Employment Practices Liability Insurance. Employers may also want to consider Employment Practices Liability insurance. This type of insurance can be another useful risk management tool used to defend against a suit or pay a claim. If you are unsure with what to do next or need assistance with policy development and with your harassment training efforts, the Association’s HR/Legal Services team is here to help. Contact us at 814/833-3200 or 800/815-2660.
Tammy Lamary-Toman, JD, PHR, SHRM-CP,
is vice president and employment counsel at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or ttoman@mbausa.org.
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Domestic Violence Affects Your Bottom Line If an employee is being victimized by a significant other at home, you might not realize how this affects their work life, their job performance, and ultimately your bottom line. The cost to employers is high. Eight million days of paid work are lost each year because of domestic violence according to a Center for Disease Control and Prevention study. This is the
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equivalent of 32,000 full-time jobs or an estimated $727.8 million. Among employed adults, one in five experiences domestic violence. That could be 20 percent of your workforce! In addition to missed days, tardiness, and impaired performance that affects both victims and the abusers, victims often experience health issues, seemingly unrelated to physical injury (migraines, stomach issues, depression etc.). But the good news is employers can increase workplace safety and productivity by learning to recognize warning signs and then referring employees for assistance. SafeNet is a certified domestic violence services provider offering a comprehensive range of services. SafeNet provides counseling and outreach, civil legal representation, a program for children, emergency shelter
and transitional housing. All services are free and confidential and the hotline operates 24/7. Training is available for managers and supervisors to help them better understand intimate partner violence and make appropriate referrals. For information or training, call 814/455-1774 Ext. 0 or visit www.safeneterie.org. For SafeNet’s 24/7 hotline assistance, call 814/454-8161.
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ENERGY UPDATE | Resources
3 Steps to Keep Your Energy Costs Manageable in Extreme Cold
possibility that the rates can increase at a moment’s notice. Fixed rate plans can be a little higher than a variable plan but that’s because the supplier is taking all the risk with a fixed plan so you pay a premium for that protection. 2. Check Your Energy Plan Expiration Do you know when your current energy contract will expire? When it does, will you need to take action to renew the plan, or will it autorenew? For that matter, when was the last time you shopped around for energy suppliers? It’s important to know when your current energy plan is expected to expire, what steps you’ll need to take to renew it and if there are better plans and rates you should consider. Before you shop or renew, consider how your energy plan helps your business meet its unique needs.
Judy Rosatti is the manager of MBA EnergyAdvisors, an affiliate of the Manufacturer & Business Association (MBA). She has an abundance of consulting experience assisting a variety of businesses in reducing their costs and increasing their bottom line for the past 25 years. During extreme weather – like the intense cold experienced this past December and January – there are many power and safety issues for employers to consider. One of the biggest challenges small businesses face during cold months is preparing for potentially volatile energy prices. Whether you’re in a fixed or variable rate product, usage of energy can cause significant impact to your energy bills. 1. Review Your Energy Plan If you choose your energy plan during temperate months, a variable rate plan might look great. After all, it allows you to take care of your energy needs for a lower price. Unfortunately, energy prices can skyrocket during the winter, making your variable rate plan much less appealing. It is important to recognize the averages and how the savings in the moderate months could offset the increase in the extreme months. However, beware of certain suppliers who may raise your rates month over month just because they can.
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With a variable rate plan, energy rates change based on market demand. When there is very cold or very hot weather, your energy costs can rise significantly. A variable rate plan can result in lower costs across the year as a whole, but your business must be able to take on the risk of price spikes – and the budget uncertainty that comes with it. On the other hand, with a fixed rate plan, the price you pay per kilowatt of energy doesn’t change – regardless of the weather or energy market. A fixed rate plan may cost a little more per kilowatt hour initially, but the markup can significantly pay off by protecting your budget from market spikes – and giving you the peace of mind that comes from a stable rate. Choosing a fixed rate plan is a good way to make sure your small business isn’t at the mercy of weather and energy market fluctuations. Review your last energy bill or your original contract to find out if you’re on a fixed or variable rate plan. The primary benefit of fixing your electricity rate is the price protection it offers and the assurance that the rate will stay the same throughout the duration of the contract. On the flip side, if the price of electricity falls, you’ll be stuck paying higher rates until the end of the term. Fixed contracts are a gamble. They’ll protect you if the prices go up, but you’ll pay more when the rates decrease. On a variable rate electricity plan, your rates will fluctuate based on wholesale prices. When the price of energy goes down, you’ll pay less, but your rates will increase if the prices go up. The biggest disadvantage that customers experience with variable rate plans is the
3. Lower Your Usage Whether your business is on a fixed or variable rate plan, you’re undoubtedly paying for energy based on how much you use per month. Businesses tend to use more energy during the winter than spring or fall because your HVAC is constantly working to keep your business comfortable. So another effective way to manage and potentially reduce your energy expenses is to use less energy. There are several strategies you can explore to help manage consumption: • Schedule an HVAC maintenance check early in the season. • Install smart thermostats. Smart thermostats allow you to schedule automatic temperature drops overnight and on weekends when no one is in the building. • Upgrade to energy-efficient equipment where possible. New equipment can be costly, but it often consumes much less energy than older models, and that can make a difference for your energy bill. • Go automated! Automatic light switches can help substantially reduce your power usage by ensuring lights are off when no one is in the room. • Check the insulation. A properly-insulated building will help keep your warm air in and cold air out. • Incentivize employees for helping with energy-saving goals. Despite frigid temperatures, you can take control of your energy costs by preparing ahead of time and making sure your energy plan is best suited for your small business. For more information, contact Judy Rosatti at MBA EnergyAdvisors at jrosatti@mbausa.org or 814/833-3200.
EVENTS & EXTRAS | NETWORKING & MORE
The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events or to view the MBA’s photo gallery, visit www.mbausa.org. Business and community leaders gather for the Economic Forecast at the Association’s Conference Center. The annual briefing is one of the MBA’s most highly anticipated events.
Ken Louie, Ph.D., director of the Economic Research Institute of Erie (ERIE) discusses Erie’s econo mic outlook at the MBA’s December Eggs ‘n’ Issues at the Association Conference Center in Erie. Dr. Louie’s prese ntation revealed the real facts and figures behind Erie’s econo mic outlook for 2018.
The MBA recently recognized 83 graduates of its professional devel opment and computer training courses, during a luncheon at the Assoc iation’s Conference Center in Erie. The graduates represented 45 comp anies throughout the region.
A TRUSTED PARTNER Serving our members’ energy needs since 2009! Judy Rosatti Manufacturer & Business Association EnergyAdvisors Phone: 814/833-3200 or 800/815-2660 jrosatti@mbausa.org
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