June 2015 Business Magazine

J u n e2 0 1 5

PLAY LIKE A KID AGAIN

YMCA CORPORATE GAMES • SUNDAY, JULY 19, 2015 EASTSIDE FAMILY YMCA • 2101 NAGLE ROAD behind K-MART Press the play button – we double dog dare ya!

YMCA Corporate Games is a team event that mixes healthy living and a little healthy competition among area organizations.

Gather your team and play a variety of sports and those old field day favorites. People of all fitness levels and abilities are welcome. We also believe in the power of sports and teamwork.

Because we believe in the power of sports and teamwork, the YMCA Corporate Games will give your organization the opportunity to gain pride and grow in fellowship with one another. Stay following for an evening family picnic and awards ceremony!

A corporate team must have a minimum of 4 participants – there’s no maximum. Entry fee is $250/team.

Free babysitting will be available.

Visit ymcaerie.org for more information and list of events or call Erica at 899-9622 or email ekaliszewski@ymcaerie.org

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXVIII, NUMBER 6

JUNE 2015

The Age of the Customer / Page 8

OCTOBER 1

Manufacturer & Business Association’s

KICKOFF TO MANUFACTURING DAY! To learn more about sponsorship opportunities, contact Patty Welther at 814/833-3200, 800/815-2660 or pwelther@mbausa.org.

8 4

June 2015

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

7 / Health Matters

3 / Spotlight

How value-based insurance plans increase quality and lower health-care costs.

John Lombardi, CPA, CFE, CIRA, principal of HBK’s Erie office discusses the history of the growing firm as well as tax law changes impacting employers and the state of the accounting industry as a whole.

JOHN MILLS

11 / Legal Brief Why you should consider using self-directed IRAs to invest in closely held businesses and other unique assets.

MICHAEL P. THOMAS

13 / Information Technology Eight things you should understand about your digital presence.

KAREN BURCHILL

Events

8 / PNC

INSERT / Training Catalog 2015 Patri ck

Learn about the upcoming computer and professional development training courses in our most current Training Catalog.

The Manufact recognition urer & Business Asso Blue Ocean Strategy Cente ciation ceremony held r Wednesday, recently announced Winners were the April 15, at the Associatio winners of the Patric Kaylee Burk, : Nicholas Soboleski, k R. Locco n’s Conferenc Scholarship and TechnicalMercer County Career Erie County Technical e Center in Awards durin Scho Erie.

Center; Dillon School. ga Carnes, Corry ol; Rebecca Brown, Craw A $1,000 scho Area Caree ford County larsh r ip and Career has been awar plaques prom Technical Cent ded inently displ er; and Sylvia and Technical Center; ayed at their to winners to assist Totie, Central Nominees them in respective high Career included: schools. Awar future academic ende Jacob Ferko Destiny Betts , avors ds Linds , Chris also , and ay Lane, Greg tine Gilligan were prese Scheidhauer nted to nom their names are inscri ory Leretsis, and inees durin Benjamin Whe bed Corry Area and Halie Stafford, MercGabriel Stein, Crawford on g the event.

Caree eler, Technical Scho r and Technical Cent er County Career Cent County Career and Techn Erie County Techn ical School; er; er; and Man ol. ical Dona zur Asadov, Alex Fahey, Chad Hajec Center; Glenn Babc The Locco Kayla Grog ock Jr., Jonat ld Baron, Awards were er, Nickolas , Drew Sorenson and in pursuit of created by Sabrina Toplo han McGranor the and Aaron vich, school narro technical and academic Association to recog Ruf, Cent ws the nom ral nize excellence.

Career and outstandin winners. To inees to their Stud view photos top five cand ents must apply and g high school students from the cerem be idate who distinguish ony, visit the s. These students are nominated by a teach er to be cons themselves Photo Galle interv ry at www.mba iewed by local busin idere esspeople whod. Each usa.org. choose the

2015 Locco Front row, Award Winners and Nominees Dillon Carnefrom left: Christine Gilligan, Nicho Second row,s and Lindsay Lane. las Soboleski, Rebecca Brown Sabrina Toplovfrom left: Liz Allen, , Kaylee Burk, Manufactur ich, Destiny Betts, Donald Baron, Nicko Sylvia Totie, las McGra Back row, er & Business Assoc Glenn Babcock Jr., iation Drew Soren nor, Halie Stafford, from left: Ferko, Jonath Manzur Asado Board of Gover Kayla Groge son and Bill nors an Scheid r, Hilbert Jr. hauer and v, Aaron Ruf, Chad and president of chairman Reddo of the Alex Fahey.

Hajec, Benjam in Wheeler, g Industries.

Greg Lerets is, Jacob

R. Locco Aw ards

15 / On the Hill Angela Zaydon, the MBA’s state government relations representative, shares why it may be a very long summer for the Pennsylvania state budget, with the June 30 deadline possibly passing us right by.

Parents, studen ts, emplo the Assoc iation’s annul yers and educa tors attend Locco Award s ceremony. ed

< SPECIAL EVENTS 20 < www. mbab

izmag.com

< June 2015

21

Marlene Mosco, regional president for PNC, explains how, in the past 10 years, PNC Financial Services Group has grown through the highs and lows of the economy and has emerged as a “super regional” financial institution with a Main Street approach to banking.

2015 Locco From left: Award Judges Liz Allen, Erie-Times Products Company; News; Harry Phil FMC Techn ologies; and Katen, Plastikos; Eighmy, American Manufactur Turned Barb Patty Smith , ManufacturKimmy, Corry Contra Products; Andre Hickernell, ing; Jennifer Gourle w Foyle, ct; Jim Ohrn, er & Busine y, Corry Northweste ss Association Custom EnginH&H Machined rn Rural Electri Rubber; Tami . Not Case, eering c Co-op; Jim Lower EnTech Plastics; Donpictured: Paula Merkl ; Dan Pertl, y, GAEDC; e, Corry Hester, MAJR and Tom Products; Barron, G.W. Chuck Becker.

20 / 2015 Locco Awards See photo coverage of this year’s winners, nominees and judges.

DEPARTMENTS > 4 / Business Buzz 16 / HR Connection

18 / Legal Q&A 21 / People Buzz

2015 Raffle Drawing!

It’s FREE! Register now to become a new subscriber to the digital edition of the Business Magazine at www. mbabizmag.com/subscribe and get a chance to win a Roar on the Shore® prize package that includes two tickets for the Bringin’ in the Roar Bike Parade, two tickets to the Rocket 101 Beer Garden for Thursday night, an official 2015 ROAR® T-shirt and Roar on the Shore® collector pins, hat, shot glass, keychain, patch and koozie! Drawing to be held July 9.

June 2015 > www.mbabizmag.com > 1

SPOTLIGHT > Established in 1949, HBK CPAs & Consultants specializes in a wide variety of tax, accounting, assurance, and business consulting services for clients ranging from individuals to small businesses to multimillion-dollar corporations across the United States through its 11 office locations. The Business Magazine recently met with John Lombardi, CPA, CFE, CIRA, principal of HBK’s Erie office to learn about tax law changes impacting employers and the state of the accounting industry as a whole.

VOL. X X VII, NO. 6 JUNE 2015

To familiarize our readers, please tell us how HBK got its start and the growth of the firm today.

HBK was established in 1949 when accountants Roland Hill, William Barth and Wally King first collaborated to form a partnership in Youngstown. Today, that modest accounting firm has grown into HBK CPAs and Consultants (HBK), which offers the collective intelligence of hundreds of professionals in a wide range of tax, accounting, audit, business advisory, financial planning, and other business operational and support services from offices in four states.

Presently, the firm is ranked in both Accounting Today and Inside Public Accounting magazines’ Top 100, and supports clients globally as a member of BDO Alliance USA. HBK maintains locations in Alliance and Youngstown in Ohio, Erie, Hermitage, Meadville and Pittsburgh in Pennsylvania, Lawrenceville in New Jersey, and Fort Myers, Naples, Stuart, and Sarasota in Florida.

What services does HBK provide to employers and small business owners and individuals?

HBK’s professionals deliver industry-specific expertise in manufacturing; health care, including long-term care; real estate and construction; automotive dealerships, energy and not-forprofit organizations. HBK combines the technical resources and expertise of a large national accounting and professional consulting firm with the personalized attention of local offices.

What distinguishes us is our ability to anticipate industry trends and position ourselves accordingly by establishing boutique services tailor-made for our clients’ needs such as Interim CFO, Payroll/Bookkeeping, Business Consulting, tax planning and Lean Six Sigma services.

Each year, changes are made to the tax code. What are the major ones affecting businesses in 2015? Please explain.

Businesses have long endured uncertainty over continuation of certain tax benefits. For the last few years, Congress has acted at the last minute to extend many tax provisions such as bonus depreciation and has increased both Section 179 expense limitations and R&D credit. These are not yet renewed for 2015 although they could be at some point. Also, many businesses will first be affected by requirements of the Affordable Care Act in 2015.

What significant changes are on the horizon that would be of particular interest to employers?

Industry-wide, there are many, but specifically within our firm, we are focused on arming our team members with the resources and support they need in order to foresee client needs in our niche markets. Active listening and anticipation of our clients’ “must haves” are top of mind to us. We feel our dedication to providing tailor-made strategic plans for our customers by giving them our undivided attention is a true differentiator for us.

The accounting industry is changing rapidly. What do you identify as the most critical industry trends and why?

We understand that creating value through provision of new services, strategic business processes and establishment of a strong organizational structure that supports an atmosphere of individuality and progression is the formula of a strong and growing company. We also realize that firms of our scope and size must innovate to meet and anticipate client needs to ensure client satisfaction and future growth. Long-term survival requires that we leverage the expertise of senior leaders to transfer knowledge to and develop younger talent and that is a concentrated area of focus for us.

What is the outlook for HBK? Our objective is to determine the highest skills and greatest competencies needed internally to compete and succeed; build leadership at all levels and departments; to effectively and efficiently manage compensation and benefits; and to attract, develop, engage, reward and retain the diverse talent required to execute competitive strategies and solidify a gold standard in our client services.

For more information, visit www.hbkcpa.com.

Contact: Karen Torres

Manufacturer & Business Association Board of Governors

Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Phil Katen C. Bruce Kern II Paul Kenny Jeff Plyler Mark Rose Greg Sbrocco Mike Weber

Editor in Chief

Ralph Pontillo rpontillo@mbausa.org

Executive Editor

Managing Editor & Senior Writer

John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org

Contributing Writers

Karen Burchill John Mills Michael P. Thomas

Feature Photography

Rob Frank R. Frank Photography www.rfrankphotography.com

Additional Photography

Casey Naylon Karen Torres

Advertising Sales

Patty Welther 814/833-3200 pwelther@mbausa.org

Design, Production Printing Concepts Inc. & Printing printcon@erie.net

ON THE COVER: Marlene Mosco (center), regional president for PNC, leads the bank’s Erie management team, including, from left: Jeff Szumigale, Christopher Sobel, Matthew Zonno, Colleen Shaffer, John Grazioli, Jake Huff, Vickie Lampe and James Stevenson. PNC is a “super regional” financial institution focused on establishing relationships with its clients for the long term. For full story, see page 8.

Mission Statement The Manufacturer & Business 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 Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2015 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.

June 2015 > www.mbabizmag.com > 3

Business Buzz levels and abilities are welcome.

COUNTRY FAIR CELEBRATES 50TH ANNIVERSARY Association member company Country Fair recently marked its 50th anniversary with a special celebration on April 30 at Erie’s Bayfront Convention Center. The event also kicked off the company’s summer Mustang raffle that will benefit the United Way of Erie County’s Imagination Library.

A corporate team must have a minimum of four participants – there’s no maximum.

Entry fee is $250/team.

Country Fair is a chain of 71 convenience stores that service communities throughout northwestern Pennsylvania, western New York and eastern Ohio.

The company employs more than 1,250 associates and was ranked 16th largest employer in Erie in 2013, according to the Pennsylvania Department of Labor and Industry.

B. F. FIELDS MOVING & STORAGE EARNS MAJOR RECOGNITION

For more information, contact Erica Kaliszewski, Eastside Family Y program director at 814/899-9622 or ekaliszewski@ ymcaerie.org.

Country Fair’s Paul Rankin and Ashton Ditka were presented a member company 50th anniversary plaque by Association Vice President John Krahe.

For more information, visit www.countryfairstores.com.

TEAMS SOUGHT FOR YMCA CORPORATE GAMES ON JULY 19 YMCA Corporate Games is a team event that mixes healthy living and a little healthy competition among area organizations. This year, the games will be held from 1 to 5 p.m. Sunday, July 19 at the Eastside Family

Y, 2101 Nagle Road in Erie. Area employers are invited to gather their teams and play a variety of sports and old field-day favorites, including dodgeball, cornhole, volleyball, tug of war, racquetball, bocce, water relay race, scavenger hunt, pickleball, the mile trail run and ultimate Frisbee. People of all fitness

North American Van Lines, in conjunction with the NAMA (North American Movers Association) Quality Committee, announced that B.F. Fields of Erie has been named a 2014 Gold Medal Pursuit of Excellence award winner.

The Pursuit of Excellence program was designed to challenge the agents of North American Van Lines to improve performance related to eight moving industry metrics: summer capacity growth, hauling growth, book/haul ratio, safety/CSA (compliance, safety, accountability), customer service ratings, claims frequency, claim severity, and sales growth. An agent achieves a gold, silver, or bronze award based on the number

Is Your Business in Compliance?

OSHA regulations for workplace safety and ASME B30 standards require frequent and periodic inspections of all below the hook lifting devices, as well as a documented annual inspection.

For answers to your compliance and inspection questions, contact Dailey Supply at 814.833.7227.

Lifting & Material Handling Solutions Since 1975 2955 West 17th Street, Suite 5, Erie, PA 16505 www.DaileySupply.com 4 < www.mbabizmag.com < June 2015

DEPARTMENTS > Contact: Karen Torres

of objectives met during the year. Awards are handed out in October at the 2015 North American Van Lines agent convention in La Jolla, California.

“North American is a proud and historic brand in the moving and services industry,” said Andy Kroll, vice president and general manager of North American Van Lines. “As a Pursuit of Excellence winner, B.F. Fields Moving & Storage of Erie personifies our van line’s strong commitment to provide a consistently exceptional level of service. Our organization is exceedingly proud to have B. F. Fields as part of the North American Van Lines family.”

Michael Squeglia, president of B. F. Fields, added, “With 110 years serving the Erie area, B.F. Fields is honored to be recognized as a Pursuit of Excellence winner, and looks forward to continuing to provide an outstanding moving experience for all of our customers.”

In addition to the Erie area, the company serves Meadville and Warren, Pennsylvania and Jamestown, New York in providing household goods moving, corporate relocation services, and office and industrial

moving services to individuals and companies throughout the greater Erie and tri-state area.

For more information, visit www.bffields.com.

HOWARD INDUSTRIES CREATES SIGNAGE FOR LOCAL 9/11 MEMORIAL On September 11, 2014, a public Honor and Remembrance Ceremony was held at the Blasco Memorial Library in downtown Erie, Pennsylvania, at which an unveiling and dedication of the Erie 9/11 Memorial took place. Displaying at its center, an 18-foot-high World Trade Center steel column recovered from Ground Zero, the Memorial tells the tale of events that took place on that tragic day.

After being approached by Mark Aleksandrowicz, chairman of the Erie 9/11 Memorial Committee, Howard Industries in Fairview Township, proudly became involved in the project and was brought on as the Memorial’s signage manufacturer.

According to Bill Freeman, vice president of Architectural Sales at Howard, “the committee wanted to get everything (for the project) from local vendors.”

Howard Industries created the “living history book” that surrounds the steel column with the combination of their talented illustration, signage fabrication, and vinyl graphics production staff members, as well as their aluminum, extruded architectural signage systems.

For more information about Howard Industries, visit www.howardindustries.com.

“EXPAND YOUR BUSINESS”

BANKING

We’ll grow with you.

You don’t need a bank that’s right for “every” business. You need one that’s right for “your business”. At FNB, we have the credit and cash flow solutions to help your company get to the next level. With local decisionmaking that gets you what you need faster. To learn more about a bank that thinks like you, visit fnb-online.com or call 1-800-555-5455.

EQUAL HOUSING LENDER, MEMBER FDIC

June 2015 > www.mbabizmag.com > 5

EDITORIAL > By John Mills

Health Matters Value-Based Plans Increase Quality, Lower Health-Care Costs Consumer-driven health plans (CDHPs) are custom-made for this era of health insurance reform, but they are far from perfect. It has been shown, for instance, that with CDHPs, many times essential medical services will be curtailed if individuals see they need to pay an increasing amount of their own money.

To counteract that, what is needed is a value-based insurance design element that is included in plans.

That element would ensure that the plans deliver highly valued services at little or no cost.

How Value-Based Insurance Design Works Value-based insurance design works to encourage consumers to use high-value drugs and health-care services by reducing or eliminating cost-sharing for those treatments.

This is also known as “evidencebased benefit design” because the services and treatments have been proven, through extensive research, to be effective. The plans also provide a high level of clinical benefit for the money spent.

According to a study by the American Journal of Managed Care in 2008, 20 percent to 30 percent of large employers implement some form of value-based insurance design.

Value-based insurance plans are designed to increase health-care quality and decrease costs by using financial incentives to promote more cost-efficient health-care services and increase consumer choice. Health benefits plans can

be designed to include coverage for evidence-based care and services that are shown to reduce costs and improve health.

pocket costs, value-based insurance enables consumers to afford the care they need. This can lead to improved health outcomes.

For example, when a plan covers what is considered preventive care — wellness visits, blood pressure treatments, diabetes medications, etc. — at low or no cost, this can result in savings down the road in terms of avoiding more costly treatments. A benefit plan also can include disincentives for unnecessary or repetitive health choices, or for procedures that produce a positive outcome that could have been produced for a lesser cost.

A 2014 study by the University of Michigan’s Center for Value-Based Insurance Design found that millions of Americans could benefit from expanded coverage of CDHPs that incorporated value-based insurance design principles in order to better meet the needs of chronically ill persons and those at high risk for developing chronic conditions.

Impressive Results Studies have shown that valuebased insurance design improves access to health-care services while also helping patients adhere to prescribed medical treatments.

But research also has shown that when CDHPs require a financial penalty for medical treatment, consumers tend not to make the long-term health-care decisions that are necessary to improve care and that, in some sense, CDHPs can create barriers to necessary care.

Value-based design can change that — if structured correctly.

Value-based insurance design has grown out of the evidence that shows that even modest copayments can discourage use of a drug or a service and that those who have high cost-sharing are less likely to follow treatment regimens prescribed by their doctors. With a lowering (or elimination) of out-of-

To learn more about UPMC Health Plan’s Consumer Advantage, visit www.upmchealthplan.com/ newsletters/expanded_CANews.html.

John Mills is senior director, Consumer Products, for UPMC Health Plan, which is part of the UPMC Insurance Services Division.

The UPMC Insurance Services Division offers a full range of insurance programs and products and also includes: UPMC WorkPartners, UPMC for Life, UPMC for You, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefits Solutions, and Askesis Development Group.

June 2015 > www.mbabizmag.com > 7

corporations, government entities, and individual clients with specialized financial goals.

PNC has a team approach that includes bankers with backgrounds suited to clients’ ongoing needs. “We introduce our team and explain their expertise so the client can pick up his/her phone or email them directly,’’ Mosco adds.

PNC’s strength in treasury management allows it to help its clients to improve their payment and collection functions often through services typically not available at smaller financial institutions. In addition, PNC specializes in implementing foreign exchange hedging strategies for current and prospective clients, even those whose primary banking relationship is not with PNC.

Marlene Mosco (center), regional president for PNC, leads the bank’s Erie management team, including, from left: Jeff Szumigale, Christopher Sobel, Matthew Zonno, Colleen Shaffer, John Grazioli, Jake Huff, Vickie Lampe and James Stevenson.

“More specifically, we have partnered with our clients to automate their payables processing function which, in turn, has improved overall efficiency in their respective finance groups. Further, we have advised on and executed foreign exchange strategies to manage currency related risk, a particularly sensitive issue given the U.S. dollar’s strength verses many foreign currencies,” Mosco says.

As technology continues to enhance the banking experience, products like Virtual Wallet, a hybrid checking/savings account with three sub-accounts — Spend (regular checking), Reserve (backup checking that incurs interest) and Growth (savings account) — have been widely received. Clients can check Marlene Mosco, regional president of northwestern their current balance from their computer or mobile Pennsylvania, remarks, “Although the bank has device round-the-clock and enjoy an easier transfer grown, our structure and focus have remained of funds. “As technology changes, our services have consistent on building relationships, helping our kept ahead of the curve to serve the next generation clients grow their business and investing in the of clients,” Mosco says. community. We are a Main Street bank, not a Wall PNC’s investment and delivery model comes from Street bank.” the top of the house with PNC CEO Bill Demchak Growing up in Erie, Mosco spent her career in the who officially launched this initiative through a banking profession. She began with PNC, formerly program titled The Customer Experience. The Marine Bank, as an employee trainer, was later program encourages review of outdated processes appointed to marketing director, senior vice president that cause disruption to the customer experience. of Retail Banking and has served in her present PNC employees are empowered to identify process leadership position, as PNC regional president, changes and elevate them through the regional since 1998. She is regarded as one of Erie’s most president’s office where they receive priority treatment. “Most issues can be resolved within hours experienced and influential business leaders. or just a few days,” Mosco adds.

Mosco oversees all banking business and management in 11 counties with an emphasis on the wealth management and corporate business segments. In addition, she directs more than $1 million in charitable sponsorships, foundation grants and Pennsylvania Educational Tax Credits. “My team meets regularly to discuss decision placement of donations that promote PNC’s brand, engage our PNC Financial Services Group employees in the community, and support causes we believe in,” Mosco says.

About: PNC – the nation’s seventh largest

The Age of the Consumer Customers are demanding more from the brands with which they interact. Their expectations are higher than ever and steadily increasing. Banking clients are seeking quality products and services, and it’s the end-to-end experience that matters.

In the past 10 years, PNC Financial Services Group has grown through the highs and lows of the economy and has emerged as a “super regional” financial institution with a Main Street approach. The bank is focused on relationships with its clients, committed to growing a talented and skilled employee base, and is invested in local initiatives that matter in the communities they serve.

Waldameer Park & Water World, owned by Paul Nelson and his wife, Lane, has been one of PNC’s oldest clients. The amusement park opened in 1896.

“Waldameer Park has grown over four generations because of the wonderful cooperation we’ve had with PNC Bank.”

— Paul Nelson, Owner, Waldameer Park & Water World 8 < www.mbabizmag.com < June 2015

PNC is one of the largest diversified financial service organizations in the United States with assets of $323 billion. PNC operates primarily in 19 states and the District of Columbia and provides retail and business banking; resident mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; and wealth management and asset management.

bank – provides deposit, lending, cash management and investment services to more than 6 million consumer and small business customers across 19 states and the District of Columbia. The bank has 2,700 branches, online and mobile services along with 8,600 ATM machines. PNC’s local market includes 11 counties in northwest Pennsylvania with 45 branches and 105 ATMs.

Leading Products and Services

NWPA Headquarters: 901 State Street, Erie, PA

The NWPA market consists of 11 counties from Erie east to Bradford, south to New Castle and below Interstate 80 to Punxsutawney. The market has 45 branches and 105 ATM machines and provides services to small and medium businesses, large

Phone: 814/871-9317 Website: www.pnc.com

“It has been a pleasure serving on the Advisory Board for PNC Bank. Access to credit and banking products are an integral part to our business community and being part of a group that helps shape and monitor the Bank’s products and services helps assure that northwest Pennsylvania benefits from PNC’s presence. The Erie region is fortunate to have a banking partner with PNC’s depth and breadth.”

— Charles G. Scalise, President and Chief Executive Officer Housing and Neighborhood Development Service (HANDS)

PNC has invested heavily in technology, such as Virtual Wallet, to help clients save, spend and grow their money.

Building a Stronger Community

A market-based Advisory Board brings together business leaders from across NWPA to meet and share their collective insights about the changes and challenges of their respective industries.

Investing in the Future

PNC is investing in the future through their sustainable initiatives such as building green buildings, decreasing energy consumption, increasing operational efficiency and offering products and services that help “Our communities are our constituents, along customers decrease their carbon footprint. For more with our clients, employees and shareholders. information about PNC’s green building practices, We exchange changes in our industry with our visit pnc.com/green.

Advisory Board members and they’ve become great Perhaps the most widely recognized and awardambassadors by providing leadership and advocacy winning initiative that PNC initiated has been PNC for PNC,” notes Mosco.

Grow Up Great, a $350 million, multi-year, bilingual PNC Economist Kurt Rankin also conducts a small initiative that began in 2004 to help children from business survey released in the spring and fall titled, birth to age 5 for success in school and life. To date, PNC Economic Outlook Survey. The survey details the program has served more than 2 million children. trends such as job growth, business owners’ level of optimism growth in their respective industries and economic trends. The survey is available in hard copy and online at www.pnc.com/pncpresskits.

According to the spring 2015 findings, small business owners nationwide are increasingly optimistic about their company’s profits and the U.S. economy. Survey results also show that owners are more likely to raise employee wages than to hire new staff and inflation pressure is likely to ease amid lower pricing pressures and energy savings.

“As inflation pressure eases, wages and consumer spending power will tick upward,” notes PNC’s Chief Economist Stuart Hoffman. “In response, business owners are expecting a better 2015 which directly supports what PNC forecasts will be the fastest real GDP growth since 2004.”

“I have been honored to serve on the PNC Grow Up Great Advisory Council for the past nine years and help shape this innovative program that has made a significant impact on our approach to early childhood education. Involvement in a quality, early childhood program helps ensure the infinite possibilities of each child’s achievement.

PNC embraced this belief 10 years ago and assumed a national leadership role through its advocacy, volunteer and philanthropic efforts that benefit our entire society.”

to 40 hours a year of paid time off for volunteerism.

Employees who volunteer at least 40 hours within a 12-month period at a qualified nonprofit early education program earn a $1,000 grant that is donated to the preschool in the employee’s name.

To date, more than 400,000 volunteer hours have been logged at early childhood centers. Employees have donated more than 610,000 items for use in classrooms or for the personal well-being of preschool children. Here in NWPA, volunteers read in classrooms, plant gardens, build indoor play spaces, and teach basic financial literacy such as Sharing, Saving and Spending.

“The financial literacy curriculum was developed to help preschoolers understand basic money “PNC did extensive research on investments in higher concepts. By starting early, our children will grow up education and school readiness which shows that understanding how money can help them achieve children who participate in high-quality preschool their goals in life,” says Vickie Lampe, vice president programs are far more likely to experience greater of Client & Community Relations and Grow Up Great educational achievement, strive toward higher market leader. vocational aspirations and contribute to society later Local faces, local volunteers, local parents and in life,” says Mosco. families, and local community leaders — that’s the The Grow Up Great Advisory Council, along with essence of PNC. about a dozen childhood experts, helps guide the initiative. PNC also works closely with partners Like Mosco, PNC regional presidents share a common Sesame Workshop, The Fred Rogers Company, and goal. “PNC is a company that is consistently focused National Head Start (NHSA) to provide educational on the client. We listen to our customers and provide and multimedia materials dedicated to young them the best options. We bring solutions in the children, their families and those who support them. same manner across our footprint. Whether in Erie, Meadville, Bradford, Pittsburgh or Philadelphia, we PNC encourages employee involvement in PNC Grow remain focused on customer service.”

Up Great through a progressive policy that permits up For more information, visit www.pnc.com.

The PNC UpUp Great continues to make difference in early in early The PNCGrow Grow Great continues toamake a difference childhood education, marking its 10th in 2014. in 2014. childhood education, marking itsanniversary 10th anniversary

— Maureen Barber-Carey, Ed.D., Executive Vice President, Barber National Institute June 2015 > www.mbabizmag.com > 9

The Manufacturer & Business Association.

We don’t sell energy. We represent you, our members – employers who face increasing energy costs in an increasingly competitive environment.

Through our new service, called EnergyAdvisors, we analyze your specific energy use, your energy needs, your energy costs. And then we work with pre-qualified energy suppliers who bid on your business, offering long-term fixed-rate pricing, variable rates indexed to the Day-Ahead Market and blended rate programs. What you receive are the best energy buys for your business.

We can also provide energy curtailment options – how you can earn back as much as 40% of your bill simply by being on standby for reducing electricity during emergency power demands.

If you want to save big-time on your energy bills, call me at 814-833-3200.

Chuck Jenkins cjenkins@mbausa.org

A MEMBER SERVICE OF MBA

2171 W. 38th Street • Erie, PA 16508 • MBAenergyadvisors.com

July

Manufacturer & Business Association

TRAINING SCHEDULE

August September

GAIN

New Skills!

Learn it today. Apply it tomorrow!

As a leader in professional development and computer training programs for more than 25 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

ENHANCE Your Career!

“The Supervisory Skills series provided a great opportunity to learn not just the ‘what’ but the ‘why’ behind so many common issues faced by supervisors and managers and how to explore their resolutions. The concepts presented were easily adaptable to a variety of situations. I also found the dialogue with others enrolled in the course to be as valuable as the course content. I’m grateful that I had the opportunity to participate in the full five-level series!”

Certified Supervisory Skills Series – Erie From left: Katrina Herring, Jessica Stefano and Dina Heile, IPS Services Inc.

— Jessica Stefano, Manager, Monitoring & Enforcement IPS Services Inc.

T

R

A

I

N

I

N

G

July

August

Professional Development

Professional Development

Certified Supervisory Skills Series Course III (St. Marys) Course IV Course V (Corry)

7/21 and 7/22 7/28 and 8/4 7/1 and 7/2

Certified Supervisory Skills Series Course I Course I (Meadville) Course IV (St. Marys) Course V

8/12 and 8/19 8/20 and 8/27 8/11 and 8/12 8/25 and 9/1

Food Safety Certification

7/6

IATA Dangerous Goods Training

7/9

Leadership for Team Leaders Course I

8/18

IMDG Dangerous Goods Training

7/9

Food Safety Certification

8/17

What Every Small Business Needs to Know About OSHA

8/6

7/29

What Every Small Business Needs to Know About EPA/DEP

8/6

Writing to WOW!

7/30

HR for Non-HR Professionals (Butler)

Customer Service

7/30

HR Essential Certification Series Compensation & Benefits Compensation & Benefits (Butler) Effective Interviewing & Hiring Techniques (Butler) Terminations – Keeping It Legal (Butler) Employment Law – What HR Should Know (Butler) Discrimination & Harassment in the Workplace (Butler)

Telephone Etiquette

7/28

Email Etiquette

7/28

Women in Leadership

HR Essential Certification Series Effective Interviewing & Hiring Techniques

7/30

Computer Access Level II (Two Days) Excel Level I Excel Level II Excel Level III

7/30 and 8/6 7/2 7/7 7/23

“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Business Association has allowed us to provide a cost-effective solution that is critical to our ability to stay competitive.”

— Joy Sherry, Human Resources Director Ainsworth Pet Nutrition “Environmental Reclamation Services takes pride in the continued education of our employees.

In seeking out a program that clearly defines the expectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager Environmental Reclamation Services

8/11 8/20 8/13 8/12 8/12 8/12 8/13

Computer Access Level III Excel Level I Excel Level II QuickBooks 2015

8/27 8/13 8/20 8/7

“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certification Series. Knowing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fastpaced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager Moody and Associates, Inc.

S

C

H

E

D

U

L

E

September

Training

Professional Development

Regional Locations

Certified Supervisory Skills Series Course I (Clarion) Course I Course II Course II (Meadville) Course V (St. Marys)

9/29 and 9/30 9/15 and 9/22 9/9 and 9/16 9/17 and 9/24 9/1 and 9/2

Leadership for Team Leaders Course I (Oil City) Course II

9/17 9/8

Food Safety Certification

9/21

Food Safety Certification (Hermitage)

9/28

Hazwoper Refresher

9/2

Lean Operations Champion (Three Days)

9/16, 10/14 and 11/11

Six Sigma Green Belt (Three Days) 9/17, 10/15 and 11/12 HR for Non-HR Professionals (Grove City) HR Essential Certification Series Employment Law – What HR Should Know Employment Law – What HR Should Know (Grove City) Effective Interviewing & Hiring Techniques (Grove City) Terminations – Keeping It Legal (Grove City) Compensation & Benefits (Grove City) Discrimination & Harassment in the Workplace (Grove City) PHR/SPHR Study Course

9/22 9/17 9/23 9/23 9/23 9/24 9/24

9/1, 9/8, 9/15, 9/22, 9/29

Computer Access Level I Excel Level I Excel Level II Excel Level III

9/3 9/10 9/17 9/24

“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my everyday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant Intellectual Property Services

All courses are held at the MBA Conference Center in Erie, unless otherwise noted.

Butler: Fairfield Inn & Suites

200 Fairfield Lane Clarion: Park Inn by Radisson, Clarion

45 Holiday Inn Road Corry: Higher Education Council

221 North Center Street DuBois: Best Western

82 North Park Place Erie: Manufacturer & Business Association Conference Center

2171 West 38th Street Grove City: Hampton Inn & Suites

Holiday Boulevard Hermitage: LindenPointe

Training & Workforce Development Center

3050 Prosperity Place Kittanning: Armstrong Educational Trust

81 Glade Drive Meadville: Holiday Inn Express

18240 Conneaut Lake Road Mercer/Grove City: Hampton Inn, Grove City

4 Holiday Boulevard Oil City: Keystone Community Education Council

206 Seneca Street St. Marys: Community Education Council of Elk and Cameron Counties

4 Erie Avenue, Suite 200 Warren: Warren/Forest Higher Ed Council

589 Hospital Drive, Suite F Williamsport: Genetti Hotel

200 W. Fourth Street * Handicap access and parking available at all sites.

Onsite Training Get more flexibility and convenience with our onsite training options ­— one of the most cost-effective choices for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Course Registration Contact Terry Nunez at 814/833-3200, 800/815-2660 or tnunez@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

ONe-Day FOOD SAFETY CERTIFICATION REQUIRED: Food safety certification and food handler training is a critical step to maintaining a safe and sanitary food operation. It protects the health of your customers and employees and reduces the risk of lawsuits and high insurance premiums.

Plus, our training teaches participants key leadership skills that will set your food safety team apart from the competition.

ERIE DATES: (8 a.m. - 5 p.m.)

MONDAY, JULY 6 MONDAY, AUGUST 17 MONDAY, SEPTEMBER 21

HERMITAGE DATE: (8 a.m. - 5 p.m.)

MONDAY, SEPTEMBER 28

Course includes textbook, exam and certificate.

Photo ID is required.

The Certified Food Safety Managerâ&#x201E;˘ Exam, conducted during this seminar, is accepted by the Pennsylvania Department of Agriculture to meet state certification requirements.

Your instructor, MBA training specialist Lisa DeFilippo, is a former county health inspector and food safety consultant.

REGISTRATION: Enroll at www.mbausa.org or call 814/833-3200 or 800/815-2660.

Legal Brief

EDITORIAL > By Michael P. Thomas

Using Self-Directed IRAs to Invest in a Closely Held Business, Other Unique Assets Self-directed Individual Retirement Accounts (“IRAs”) offer an individual the ability to invest his or her retirement funds in nontraditional assets such as a privately held business, real estate, intellectual property and precious metals. A self-directed IRA can also provide a sometimes overlooked source of liquidity to pursue such unique investment opportunities where cash and traditional financing methods are limited or unavailable.

Many companies promote self-directed IRAs as simple, easy-to-use vehicles that are superior to traditional IRAs. However, because self-directed IRAs are funded with pre-tax dollars, there are stringent rules that must be followed in their operation. Failure to follow these rules can result in severe tax consequences. The added flexibility that permits self-directed IRAs to invest in assets other than marketable securities creates additional opportunities to run afoul of these rules.

Self-Directed IRAs Generally In many ways, a self-directed IRA is not any different from a traditional IRA or other retirement accounts. The Internal Revenue Code (the “Code”) requires that a qualified custodian hold the IRA assets on behalf of the individual account owner. The custodian remains responsible for recordkeeping, issuing client statements and other general administrative duties. Like other retirement accounts, a self-directed IRA is subject to annual contribution limits and it is prohibited from investing in certain assets, such as life insurance, collectibles and tangible personal property.

Where a self-directed IRA differs from other retirement accounts is in the ability of the account owner

to direct the IRA custodian to invest in nontraditional investments. Each custodian will have its own limits regarding the type of nontraditional investments available to the self-directed IRAs it administers, but investments in real estate and privately held companies are extremely common.

Prohibited Transactions While self-directed IRAs are appealing on the surface, there are significant risks associated with engaging in what are known as “Prohibited Transactions.”

Common examples include: personally using assets owned by your IRA; purchasing property for the IRA from you or a related party; selling property from the IRA to you or a related party; paying for expenses of the IRA with personal funds; loaning funds to, or personally guaranteeing loans for, the IRA; making improvements or repairs to property owned by the IRA; and, receiving compensation for managing the IRA. Depending on the circumstances, a Prohibited Transaction may result in excess contribution penalties, accuracyrelated penalties, or even worse, termination of qualified tax status.

Consider this example: Your self-directed IRA owns rental real estate on Florida’s gulf coast. In January, you make the permitted $5,500 contribution to the IRA. That same year, you cause certain repairs to be made to the property, which you pay for out of your personal funds (not the IRA). You have now made an excess contribution to the IRA in the amount of the repairs. This same treatment may apply even if you made the repairs yourself because the value of the services provided also can be considered an excess contribution.

Excess contributions that are not withdrawn in the same year are subject

to a six percent excise tax for each year uncorrected.

Further, if the next year you and your family spend a week at the rental real estate vacationing — using the property for personal purposes — you have engaged in a “Prohibited Transaction” and your self-directed IRA may no longer be recognized as a qualified account under the Code. As a result the entire value of the self-directed IRA would immediately be subject to tax, plus an additional 10-percent penalty if you are under age 59½.

Conclusion Self-directed IRAs can be a great retirement planning tool, but they are not without significant pitfalls. Careful planning must be undertaken to avoid the severe tax consequences that await the unwary.

For more information, contact Mike Thomas at MacDonald, Illig, Jones & Britton LLP at 814/870-7711 or mthomas@mijb.com.

Michael P. Thomas is a partner with MacDonald, Illig, Jones & Britton LLP. He assists individuals, closely held companies, and larger entities on a wide variety of estate planning, estate and trust administration, wealth transfer, succession planning, tax, and business matters.

June 2015 > www.mbabizmag.com > 11

DIGITAL HEALTH

JUST AS IMPORTANT AS YOUR FINANCIAL WELL BEING

• Website Design • Search Ranking • Social Media Management

• Online Reputation • Website Analytics • Digital Analysis

CALL FOR YOUR FREE CONSULTATION | 814.878.1915

Our Mission

CyberInk is a digital marketing and creative agency powered by Times Publishing Company.

Pro-Business

1

Pro-Growth

Pro-Opportunity

205 West 12th Street cyberink.biz

Visit us at www.mbausa.org

,

As businesses continue to battle rising health-care costs, high energy prices and complex legal compliance issues — the challenge to compete, grow and succeed is greater now than ever before.

That’s why our mission is resolute — to deliver services that lower the cost of doing business, ease the burden of compliance and increase productivity for our members.

And we have.

12 < www.mbabizmag.com < June 2015

2171 West 38th Street • Erie, Pa. 16508 Phone: 814/833-3200 • 800/815-2660 Fax: 814/833-4844

EDITORIAL > By Karen Burchill

Information Technology Eight Things You Should Understand About Your Digital Presence Ensuring that a company has a substantial digital presence should be a top priority in any marketing strategy.

As consumers turn more to the Internet and search engines for entertainment, socialization and business recommendations, a company that ignores the importance of effectively using digital channels to reach potential leads will not survive.

If your company is looking to increase its exposure and gain more leads, here are eight things you should understand about your digital presence: 1) To understand where to go with digital marketing, you must understand where you are. Do you have a website? Do you have social media accounts? Be sure that your brand and company message is identical from place to place with the same contact information, description of services, logo, color scheme, photos and story of your company.

2) Your website is the foundation of your digital presence and a 24/7 employee for your business. Your company must have a website at which potential leads can learn about how your company got started, what services it offers, and why it’s superior to its competitors. It should look modern and professional, have fast loading speed, be mobile-friendly, easy to navigate and contain regularly updated, quality content.

3) What are you using to assess your marketing strategy? Data provided by website auditing tools and analytics can teach you about your website and social media efforts and should be used as an essential marketing resource. This

information can tell you what’s working, what isn’t delivering results, and how to proceed to achieve your future goals for brand awareness, traffic and conversion.

available that let you know when your brand is being mentioned online and allow you to respond to negative and positive reviews in a timely manner.

4) It is important to understand who your audience is when planning your digital strategy.

If your company sells software services, an audience comprised of mostly 18 to 24 year-olds will not greatly increase your client base.

You must decide the parameters of your target audience and tailor your strategy to attract that specific subset of the population.

8) Unless you have a proven background or time to manage a successful digital presence, it’s wise to hire a digital marketing agency to do the work for you. Today, consumers are skeptical of companies that do not deliver a well-rounded online brand and, thus, place their business with a technologically savvy competitor.

5) If you aren’t regularly adding quality content to your website and updating your social media accounts, you are losing potential leads.

Those following your social media accounts will quickly unfollow you if there is a lack of informative, entertaining content that is related to your business.

Don’t lose business because your digital presence is ineffective or nonexistent.

A digital marketing agency can assess your current digital presence and create a custom strategy to help your business succeed online. Contact the CyberInk team by calling 814/878-1915 or visiting cyberink.biz and discover how they can help your company harness the power of the digital world.

6) Not every company should have a profile on every social media outlet available. The manpower needed to properly execute an engaging social media profile is extensive, especially to be effective on Twitter. You must understand which social media platforms your audience are using and choose only as many profiles as can be successfully maintained.

7) Your online reputation is an important piece of your digital presence. With more people turning to smart phones and tablets to search and do business, eight out of 10 people use online reviews as personal recommendations (Search Engine Land). Tools are

As the director of Creative and Digital Operations at CyberInk, Karen Burchill oversees the daily operations of the digital team, including project management, digital marketing and creative services.

During her more than 10 years in design and marketing, she has managed the development and deployment of multiple digital products.

June 2015 > www.mbabizmag.com > 13

Doing Business Worldwide?

Know what your exposures are?

Insurance Management Company is one of only 28 U.S. insurance brokerage firms who, by invitation, are members of the Worldwide Broker Network, the world’s largest integrated network of independent property and casualty insurance brokers operating in more than 75 countries and territories on six continents.

Membership enables us to have local boots on the ground, where you need them, to meet the importance of providing coordinated cross-border expertise.

“The Bloomstines” Commercial, Industrial & Institutional Property, Liability & Workers’ Compensation Insurance Agents Lloyd’s London Correspondents and Correspondent Brokers Worldwide

123 West 9th Street Erie, PA 16501 814-452-3200 Fax 814-454-5598 www.imcerie.com e-mail: john.bloomstine@imcerie.com

How much can you save with the new MBA

WORKERS’ COMPENSATION Program?

Call Doug Loesel or Joe Parlak and find out.

814-833-5433 www.LSinsure.com

14 < www.mbabizmag.com < June 2015

OntheHill

DEPARTMENTS > Contact: Lori Joint

What Will Pennsylvania’s 2015-2016 Budget Really Look Like?

Angela Zaydon is the state government relations representative for the Manufacturer & Business Association in Harrisburg. Contact her at 717/525-7213, cell 814/460-3136 or at azaydon@mbausa.org.

The Pennsylvania state budget is the spending blueprint for each fiscal year. Governor Tom Wolf presented his budget request in March to the House and Senate. Soon after, the House and Senate Appropriations Committees hold public hearings on the budget. Next, both the House and the Senate introduce their versions of the budget; one of those bills will be chosen as the vehicle for the final budget bill, with amendments likely. Then a Conference Committee meets to iron out any differences between the House and Senate versions of the budget. Members of the House and Senate vote on this compromise budget and under the Pennsylvania constitution, final passage and the governor’s signature are required by June 30.

This year may be very different. The governor stated in April that he didn’t think they would meet the June 30 deadline. The governor and the General Assembly are worlds apart on budget numbers, taxation, new taxation and distribution of funds. Governor Wolf’s plan contains the largest spending increase in 25 years and, as a percentage, is one of the largest tax and spend packages ever presented to the General Assembly. The General Fund spending is projected to reach as high as $34 billion, a 16-percent increase. This is an obscene tax increase on Pennsylvanians and Pennsylvania business and it does not address or correct the underlying problems that have created Pennsylvania’s current economic state. The General Assembly has publically stated that they do not and will not support a tax increase such as this. The question is, what will the General Assembly’s budget look like and will the governor sign what is presented to him?

Governor Wolf’s budget creates new problems, rather than fixing the underlying problem. That problem is the public pension crisis. There should be no discussion of new taxes or revenue until the $50-billion public pension crisis has a clear and long-term solution — and that solution is not raising taxes to pay for an unsustainable, archaic and unfunded system. The current system will lead to increased tax burdens on the state’s

residents and employers and continue to downgrade Pennsylvania’s economic climate. In addition, moving $1.7 billion in school pension payments to a new fund to make the increase in General Fund spending look smaller is nothing more than creative accounting; it looks good on paper, but the liability still exists. Substantive, long-term reforms need to be enacted today in order to protect the Commonwealth’s economic stability and competitiveness.

In addition, skyrocketing property tax increases that have well surpassed the rate of inflation are a direct result of the public pension crisis. There are several problems with Governor Wolf’s plan for property tax relief. First of all, it is not relief when personal and business taxes will increase dramatically. Governor Wolf’s claim that his budget will save homeowners more than $1,000 in 2017 is based solely on proposed property tax cuts and does not account for his proposed tax increases. This property tax relief plan fails because the proposed tax increases more than triples any tax relief, and local school districts can continue to raise property taxes. Additionally, tax increases would begin immediately, while property tax cuts would be more than one year removed. Lastly, this is not property tax elimination — only reduction.

The myth that funding for education was cut in the previous administration and that more funding for education is needed must end. Pennsylvania does not underfund education. Pennsylvania’s education spending is at an all-time high. Not only is the increased funding for education absurd but there is no rhyme or reason on how the money would be distributed and no clear proof that the money will be spent on learning, but rather to pay the largest line item in every school budget — pension, salaries and benefits.

If the General Assembly and the governor cannot agree on a budget, it may be a very long summer, with the June 30 deadline passing us right by.

June 2015 > www.mbabizmag.com > 15

HR Connection EMPLOYEES’ FINANCIAL HEALTH INCREASINGLY IMPORTANT TO EMPLOYERS The number of employers taking responsibility for their employees’ financial health is growing, according to a recent Bank of America Merrill Lynch Workplace Benefits Report.

Eighty-three percent of employers now say they feel an obligation to help employees improve their financial wellness, which impacts the benefits and education employers provide, says the report. The report is based on 1,020 companies of all sizes with retirement plans.

Three-quarters of retirement plan sponsors, including 90 percent of large companies, believe that financial wellness solutions will be standard elements of benefits packages in the future, with large companies leading the way in implementing programs. Large companies for the survey are defined as those with $100 million or more in 401(k) plan assets.

In the past year, the number of large companies offering employees financial

education on topics including budgeting, planning for health-care costs and managing debt has significantly increased, says Bank of America.

“Today’s plan sponsor must look beyond 401(k) enrollment and participation. As the survey underscores, there is a growing need for companies to consider their benefits offering more holistically and provide more comprehensive financial education and solutions that can address today’s challenges such as managing rising health-care costs,” says David Tyrie, head of retirement and personal wealth solutions for Bank of America Merrill Lynch.

According to the survey, plan sponsors believe utilizing financial wellness programs also make good business sense.

The employees who use the programs become more satisfied (78 percent), loyal (70 percent), engaged (68 percent) and productive (57 percent).

EXPERTS: SUCCESSION PLANNING CRUCIAL IN THE YEAR AHEAD Companies need formal succession plans to be competitive in 2015.

In HR Magazine’s “What’s in Store for HR in 2015?”, Josh Bersin, principal and founder of Bersin by Deloitte, wrote that many organizations struggle to facilitate internal talent mobility. Fewer than onethird have formal succession plans for all but the very top levels.

“When an employee leaves a company, we are forced to bring in someone else who starts at the bottom of the curve,” said Bersin. “This means we incur the cost of hiring, the loss of productivity and the diminished learning curve of the new employee.”

However, if HR facilitates internal talent mobility, people are constantly being developed and challenged and engagement goes up. Tips include: • Make sure that all posted positions are marketed internally and that employees are encouraged to apply for them by creating incentives.

• Invest in onboarding and new-hire orientation.

• Assign career coaches to map patterns of movement and chart career paths.

Business Banking No matter what your business demands, Northwest delivers.

Jen Marz, avp Business Services Advisor (814) 461-6968 • jmarz@nwbcorp.com 20 offices to serve you in Erie County Northwest Direct: 1-877-672-5678 • www.northwest.com Member FDIC 16 < www.mbabizmag.com < June 2015

DEPARTMENTS > Contact: Stacey Bruce

Cross-Training: The Best Offense is a Good Defense When we are looking for ways to increase the efficiency of our business, sometimes the best place is in the most obvious one — internally. Regardless of how successful your organization is, there will be times when employees are sick, take vacation time or leave for other opportunities.

“Long gone are the days when employees are hired and then are in the same position at the same company for years and years,” says Ramon Ray of SmallBizTechnology. “It’s important that companies work hard to hire the right employees but also train them to be cross-functional.”

To avoid a deterioration of efficiency every time one of your key players is absent, focus on these four areas to establish a cross-training initiative: 1. Culture: Some employees hold onto their expertise because they feel it makes them indispensable. Create an environment that values employee’s ability to support each other.

GEt out of the office.

Express to them that their capacity to help their co-workers in times of need will benefit them when they need additional support.

2. Expectations: Make it a requirement that employees must have at least one person who has the knowledge and ability to step into their role at a moment’s notice. Require it as a mandatory element of the job description and provide the time to cross-train effectively.

3. Test: Simulate situations to make sure your cross-training initiatives are meeting your expectations.

Remove a key employee for a desired time period; if someone is able to step into this person’s role, you’re covered.

4. Feedback: Provide a mechanism for employees to give you their opinions on the cross-training progress and then use the information to improve the initiative.

Many times the first place to look for “new” employees is your own company.

Hiring and promoting from within not only increases morale, it also gives you candidates with track records you already know. Although a cross-training program may result in some short-term loss in productivity, it is a small price to pay for long-term improvement in efficiency.

Think of cross-training as a financial investment for your company’s future.

For more information, contact the Association’s Training Department at 814/833-3200, 800/815-2660 or email Tracy Daggett at tdaggett@mbausa.org.

Tracy Daggett is a training specialist for the Manufacturer & Business Association.

“The managers loved the team building activities and did not want the meeting to end. “ - Anderson Precision

Scott Enterprises and Niche Team, LLC. have partnered to offer exciting Team Building activities to groups of all types

Improve teamwork

Team building and corporate outing packages are available.

Reserve today!

716-355-4141 x7143

Independent Challenge

2,000ft Giant Dual Ziplines! VISIT PKNPK.COM FOR DETAILS June 2015 > www.mbabizmag.com > 17

Legal Q&A WE ARE REVAMPING OUR TIMEKEEPING METHODS AND INSTITUTING A TIME CLOCK OVER TIMESHEETS. DO WE NEED TO HAVE THE TIME CLOCK ‘ROUND’ THE TIME? Absolutely not. With all the software technology available today, all businesses should be able to calculate time down to the last minute. Unless you are facing a unique challenge, tracking straight time is easy and avoids any of the ambiguity of rounding practices. If you do decide to round time punches, stick with an interval specified in the regulations – five minutes, six minutes (one-tenth of an hour) or 15 minutes (a quarter of an hour).

employees as exempt from the overtime payment provisions of the Act or non-exempt from the provisions of the act. Non-exempt employees can be paid either hourly or by salary. All employees in nonexempt jobs must be paid overtime for their hours worked that exceed 40 hours in a workweek, whether they are regularly paid by the hour or by salary.

WHAT IS THE DIFFERENCE BETWEEN HOURLY, SALARY, EXEMPT AND NON-EXEMPT EMPLOYEES? The Fair Labor Standards Act defines

CAN I MAKE A JOB OFFER VERBALLY? Of course. However, it is better to make job offers in writing via an

Note: Not all employees paid on a salary basis are exempt; just because an employee receives a salary does not make his/her job position exempt from overtime. To be exempt, a position must meet the tests established by the Department of Labor: a salary test and a job duties test.

Our Services Knock It out of the park!

Janitorial Services “We Don’t Cut Corners, We Clean Them!” www.btjanitorialservices.com | 1-814-368-7199 or 1-800-249-5656

18 < www.mbabizmag.com < June 2015

offer letter. The offer letter should state the agreed upon job title and starting wage or salary. The letter should include a statement that it is contingent upon all of the contingencies listed in the letter (that is, background check, drug test, etc.).

Thus, if the applicant signs the offer letter, he or she has agreed to accept the contingencies.

HAVE A LEGAL QUESTION? GET ANSWERS! We know that urgent employment law issues can arise at a moment’s notice. That’s why members of the Manufacturer & Business Association can call our certified HR specialists and labor and employment law attorneys anytime, at no charge.

Call our FREE Hotline today at 814/833-3200 or 800/815-2660!

DEPARTMENTS > Contact: Tammy Lamary-Toman

NLRB Report on Employer Handbook Policies Over the last few years the National Labor Relations Board (NLRB) has persistently scrutinized employer handbooks and policy manuals to see if any provision contained therein violates the National Labor Relations Act (NLRA). In continuation with these efforts, the General Counsel for the NLRB recently issued a report to offer guidance to employers to aid in creating handbook provisions that will withstand the NLRB’s scrutiny and help employers identify the types of policies that the General Counsel believes may have a chilling effect on employees’ concerted activities protected by Section 7 of the NLRA. The 30-page report addresses what the General Counsel calls as an “evolving area of labor law,” and attempts to explain several years of NLRB decisions and positions taken by the General Counsel’s office. However, because the decisions and positions have often been inconsistent, the guidance provides few bright lines for employers to follow.

The report discusses various types of workplace rules including confidentiality policies. For instance, overall, employees

have a Section 7 right to discuss wages, hours, and other terms and conditions of employment. Thus, an employer’s confidentiality policy that either specifically prohibits employee discussions of terms and conditions of employment, or that employees would reasonably understand to prohibit such discussions, violates the NLRA. The General Counsel provides various examples and explanations of examples of confidentiality policies found to be unlawful overbroad: • Do not discuss “customer or employee information” outside of work, including “phone numbers [and] addresses.”

• “You must not disclose proprietary or confidential information about [the Employer, or] other associates (if the proprietary or confidential information relating to [the Employer’s] associates was obtained in violation of law or lawful Company policy).”

The report also provides example of confidentiality policies found to be facially lawful by the General Counsel: • No unauthorized disclosure

of “business ‘secrets’ or other confidential information.”

• “Misuse or unauthorized disclosure of confidential information not otherwise available to persons or firms outside [Employer] is cause for disciplinary action, including termination.”

• “Do not disclose confidential financial data, or other non-public proprietary company information. Do not share confidential information

regarding business partners, vendors or customers.”

For more information, contact the Association’s Legal Services Division at 814/833-3200, 800/815-2660 or tlamary@mbausa.org.

Tammy Lamary-Toman is the labor and employment law counsel for the Manufacturer & Business Association.

Fin that fi

Denise Thomas, Owner of Countryside Agility: “ I have always believed that good business starts with good relationships and trust. Erie FCU was eager to establish a personal relationship with me and my business from the get-go.”

Denise Thomas

Nathan Crouch

Countryside Agility

Commercial Lender

Nathan Crouch, Commercial Lender

Loans subject to credit approval.

Membership eligibility required.

MBA Ad 0515.indd 1

(814) 825-2436 Ext. 1051 ncrouch@eriefcu.org

www.eriefcu.org 5/5/15 2:57 PM June 2015 > www.mbabizmag.com > 19

Events

2015 Patrick R. Locco Awards Blue Ocean Strategy Center

The Manufacturer & Business Association recently announced the winners of the Patrick R. Locco Scholarship Awards during a recognition ceremony held Wednesday, April 15, at the Associationâ&#x20AC;&#x2122;s Conference Center in Erie.

Winners were: Nicholas Soboleski, Erie County Technical School; Rebecca Brown, Crawford County Career and Technical Center; Kaylee Burk, Mercer County Career Center; Dillon Carnes, Corry Area Career and Technical Center; and Sylvia Totie, Central Career and Technical School.

A $1,000 scholarship has been awarded to winners to assist them in future academic endeavors, and their names are inscribed on plaques prominently displayed at their respective high schools. Awards also were presented to nominees during the event.

Nominees included: Jacob Ferko, Lindsay Lane, Gregory Leretsis, Benjamin Wheeler, Erie County Technical School; Donald Baron, Destiny Betts, Christine Gilligan and Gabriel Stein, Crawford County Career and Technical Center; Glenn Babcock Jr., Jonathan Scheidhauer and Halie Stafford, Mercer County Career Center; Alex Fahey, Chad Hajec, Drew Sorenson and Sabrina Toplovich, Corry Area Career and Technical Center; and Manzur Asadov, Kayla Groger, Nickolas McGranor and Aaron Ruf, Central Career and Technical School.

The Locco Awards were created by the Association to recognize outstanding high school students who distinguish themselves in pursuit of technical and academic excellence. Students must apply and be nominated by a teacher to be considered. Each school narrows the nominees to their top five candidates. These students are interviewed by local businesspeople who choose the winners. To view photos from the ceremony, visit the Photo Gallery at www.mbausa.org.

2015 Locco Award Winners and Nominees Front row, from left: Christine Gilligan, Nicholas Soboleski, Rebecca Brown, Kaylee Burk, Sylvia Totie, Dillon Carnes and Lindsay Lane.

Second row, from left: Liz Allen, Donald Baron, Nickolas McGranor, Halie Stafford, Kayla Groger, Sabrina Toplovich, Destiny Betts, Glenn Babcock Jr., Drew Sorenson and Bill Hilbert Jr. chairman of the Manufacturer & Business Association Board of Governors and president of Reddog Industries.

Back row, from left: Manzur Asadov, Aaron Ruf, Chad Hajec, Benjamin Wheeler, Greg Leretsis, Jacob Ferko, Jonathan Scheidhauer and Alex Fahey.

20 < www.mbabizmag.com < June 2015

Parents, students, employers and educators attended the Associationâ&#x20AC;&#x2122;s annul Locco Awards ceremony.

2015 Locco Award Judges From left: Liz Allen, Erie-Times News; Harry Eighmy, American Turned Products; Andrew Foyle, H&H Machined Products Company; Phil Katen, Plastikos; Barb Kimmy, Corry Contract; Jim Ohrn, Custom Engineering; Dan Pertl, FMC Technologies; and Patty Smith, Manufacturer & Business Association. Not pictured: Paula Merkle, Corry Manufacturing; Jennifer Gourley, Corry Rubber; Tami Case, EnTech Plastics; Don Hester, MAJR Products; Chuck Hickernell, Northwestern Rural Electric Co-op; Jim Lowery, GAEDC; and Tom Barron, G.W. Becker.

People Buzz MOORE RESEARCH SERVICES CEO NAMED 2015 WILD LEGACY AWARD WINNER Colleen Moore Mezler, president and chief executive officer of Moore Research Services, Inc., a global research company based in Erie, was presented with the Women in Leadership Development’s 2015 Legacy Award during the 8th annual WILD Conference on April 29 at the Ambassador Banquet & Conference Center.

The Legacy Award is presented each year to an experienced professional woman leader who mentors other women, supports her community and excels in her career. The winner is also a trailblazer who has not followed but rather has carved her own path to success and has supported other women along the way. She must demonstrate high standards in all that she does and serves as an example to others professionally and personally.

BOSTWICK DESIGN PARTNERSHIP WELCOMES NEW ADDITION TO ERIE OFFICE David A. Brennan AIA has joined Bostwick Design Partnership as director of the Erie office. Brennan will collaborate with firm leadership to shape and deliver office strategies to enhance existing client relationships and cultivate new opportunities in western Pennsylvania and New York.

Brennan has practiced architecture for more than 20 years since earning his bachelor of architecture from Kent State University. His previous experience in both architecture and economic development adds a remarkable depth of civic and business leadership expertise to the firm.

Founded in 1962, Bostwick Design Partnership is a fullservice architectural design firm with offices in Cleveland and Erie.

DEPARTMENTS > Contact: Karen Torres

KIDDER WACHTER ARCHITECTURE & DESIGN ADDS PLANNER, PROJECT MANAGER Jacqueline Spry recently joined Kidder Wachter Architecture & Design in Erie as a planner and project manager.

Spry’s professional planning experience includes working for Michigan State University with the Planning and Zoning Center at the Land Policy Institute, and as a senior planner for Department of Defense with planning and facility management projects for Marine and Naval bases in North America and Europe.

Spry received a bachelor’s degree in Urban Studies from the University of Pittsburgh and a master’s degree in Urban Planning from the University of Pennsylvania. She also has certificates with Form-Based Codes and Placemaking.

Erie-based Kidder Wachter Architecture & Design is a full-service architectural firm that offers planning, design, development, and construction management services.

GORZYNSKI, UGLOW & FARRELL, P.C. NAMES NEW PRINCIPAL Gorzynski, Uglow & Farrell, P.C. (GU & F) recently announced that Joyce L. Grolemund, CPA is now a principal of the firm.

Grolemund has been a member of the firm since 1991, starting as a staff accountant. She is a graduate of Penn State-Behrend with a bachelor’s degree in accounting.

Grolemund became a CPA in 1998. She is also a member of the AICPA and the PICPA. She is a lifetime resident of Erie County.

GU & F is a certified accounting firm located in North East, Pennsylvania, which has been providing services to the area for more than 35 years.

June 2015 > www.mbabizmag.com > 21

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

Hereâ&#x20AC;&#x2122;s the plan that employees are choosing more than ever.

Your employees want to know that they and their families have access to the highest quality health care possible.

So itâ&#x20AC;&#x2122;s no surprise that UPMC Health Plan is such a popular choice. By offering guaranteed in-network access to the top-ranked care of UPMC, plus other doctors and hospitals in your community, UPMC Health Plan provides the peace of mind your employees appreciate. Not to mention award-winning customer service, online wellness tools and more. Give your employees the opportunity to choose UPMC Health Plan.

Call for a quote today at 1-888-383-UPMC.

UPMCHealthPlan.com