Traverse City Business News - February 2024

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

1

3

$

FEBRUARY 2024 • VOLUME 28 • NUMBER 7

Hire. Retain. Repeat.

Six Northern Michigan HR leaders discuss challenges, strategy in Post-COVID world.

From left to right, seated: Gina Stein (Munson), Coni Taylor (TCAPS), Jim Demarsh (Mission Restaurant Group).

Left to right, standing: Tifini McClyde-Blythe (Interlochen), Tim Norman (Grand Traverse Resort) Rob Hanel (TentCraft) Photo by Madi Taylor.

Time for a fresh start?

ssbankmi.com/betterbank TRAVERSE CITY, MI PERMIT NO. 7

PAID

Member FDIC

PRSRT STD U.S. POSTAGE

2 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

Charles Zhang - Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Serving the Entire Traverse City Area Traverse City Office 236 1/2 E. Front Street, #26 Traverse City, MI 49684 231-943-6988 Main Office 5931 Oakland Drive Portage, MI 49024 269-385-5888 or 888-777-0216

Our Zhang Financial Team

www.zhangfinancial.com

Fee-Only Unbiased Investment Advice

• We uphold a Fiduciary Standard and work with clients on a fee-only basis.

• We do not receive commissions, kick-backs, or soft dollars from product sales, eliminating inherent conflicts of interest.

Credibility & Professionalism

• Our team of professionals holds designations and degrees such as CFP®, CFA, CPA, MBA, and PhD. • Charles received his MBA from the Kellogg School of Management - Northwestern University, his MA in Economics from WMU, and Executive Education from Harvard Business School and Columbia University.

Charles Zhang, CFP®, MBA, MSFS, ChFC • Ranked #1 on Barron’s list of America’s TOP Independent Advisors and is the highest ranked NAPFA-Registered Fee-Only Advisor on the list.* • Ranked #4 in the nation on Forbes’ list of TOP Wealth Advisors and is the ONLY Independent Advisor in the top 10.** Minimum investment: $1,000,000 in Michigan/$2,000,000 outside of Michigan.

Assets under custody of LPL Financial, TD Ameritrade, and Charles Schwab.

Founder and President

*As reported in Barron’s March 11, 2023 and September 17, 2021. Based on assets under management, revenue produced for the firm, regulatory record, quality of practices, and other factors.

For fee-only status see NAPFA.org. **As reported in Forbes April 4, 2023. The Forbes rankings, developed by SHOOK Research, are based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients.

See zhangfinancial.com/disclosure for full ranking criteria.

TRAVERSE CITY BUSINESS NEWS

BRIEFLY NEW NAME FOR BUILDERS GROUP The Home Builders Association of Grand Traverse Area has a new name: Home Builders Association of Northwest Michigan. The change comes as the association has expanded its coverage area to include Manistee, Missaukee and Wexford counties. Executive Officer Lauren Tucker says the name change made sense. “We wanted our name to be more inclusive of our outlying areas and the memberships we hope to grow,” she said. “With our expansion, we are looking to fill a void that was left when other HBAs closed down.

We are excited to welcome new businesses into our organization.”

with expedited vehicle repairs and exceptional service,” said co-owner Mike Burlingame. The new ownership has introduced advanced processes and technology as part of its commitment to efficiency and innovation; traversebodyandpaintcenter.com.

NOMINATE A HOSPITALITY WORKER Nominations are now open for the Hospitality High Five Awards by Traverse City Tourism. The inaugural awards are intended to honor those who excel in the northwest Michigan hospitality industry. The awards include recognition for customer service and guest relations, seasonal workers, festival and events staff, sales/marketing/finance team members, and more. Nominations will be accepted through Feb. 9, and winners will be chosen by an independent committee of northern Michigan hospitality experts and announced at the Traverse City Tourism annual meeting in May. The nomination form and full list of rules are available at traversecity.com/hospitality-awards.

FEBRUARY 2024

3

we ca re about YOU!

FOR 40+ YEARS WE’VE MADE INSURANCE

personal.

HOME | AUTO | LIFE | HEALTH | MEDICARE COMMERCIAL | FARM | AGRIBUSINESS

PHOTOGRAPHY STUDIOS OPEN Studio North Collective is now open at 716 Boon St. in Traverse City. The studio is home to Crackerjack Photography Studio and Nicole Martin Photography.

Studio space is also available for rent to other photographers and creatives on an hourly, daily or membership basis; studionorthcollective.com.

STUDY: TOURISM ADDS $1.4 BILLION A new study recently released by Traverse City Tourism shows travel to the region contributed $1.4 billion in total economic impact in 2022, the most recent year the numbers are available. That represents a $1 million increase from a study done the previous year. Trevor Tkach, TC Tourism president, noted the latest findings show growth in all key travel indicators compared to the 2021 study. Those include 7.3 million total greater Grand Traverse visitors, an 11 percent increase; 8,954 jobs, an increase of 5.9 percent; and $134 million generated in state and local taxes, an 8.7 percent increase. The largest growth in visitor spending categories was in transportation, followed by lodging, food and beverage spending. Find the full study at traversecity.com.

NEW OWNERSHIP ANNOUNCED Traverse Body and Paint at 940 West Blue Star Dr. in Traverse City is under new ownership. “We’re delighted to work with the existing talented team of professionals to provide our valued customers

231.941.0450 | FORDINSURANCE.NET | TRAVERSE CITY

Feb 2024 update

PENINSULA GRILL REVAMP The Peninsula Grill on Old Mission Peninsula recently announced a revamp for the restaurant, including the addition of Chef Josh Boyer. Chef Boyer is involved in the rebranding of the restaurant, which involves placing on emphasis on the culture behind the cuisine. This includes more local agriculture on the menus, the introduction of themed dinners, as well as the opportunity for guests to see the techniques and processes behind the courses and a recipe booklet for making the dishes at home.

FUNDER SURPASSES $10M IN LOANS Venture North Funding and Development, a Traverse City nonprofit that provides loan capital to economically disadvantaged small businesses, has now awarded more than $10 million in 170 small business loans since its start 15 years ago. The loans have leveraged nearly $38

EAT LOCAL DRINK LOCAL SHOP LOCAL RETIRE LOCAL

NICK BALDWIN

Financial Advisor nick@stonepathwm.com

(231) 668-6999 Call Today

SPWM Advisors LLC d/b/a Stonepath Wealth Management is a registered investment advisor.

4 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

Your Northern Michigan

Connection

Cherry Capital Airport tvcairport.com

It’s Time For You To Fly!

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

5

BRIEFLY million from lending partners, bringing the total investment to just over $48 million. Venture North custom-fits loans to business plans and financial forecasts for all of its clients. Loans generally range from $2,500 to $350,000 and cover the cost of most anything needed to grow and prosper, including startup and microbusinesses that are often overlooked by commercial lenders. Recent new clients include a delicatessen, a provider of mental health therapy, a producer of organic wines, a manufacturer of fine chocolates, a broadband provider, a cartography business, a day care center and a roaster of fine coffees.

NEW PARTNERSHIP SUPPORTS MANUFACTURING Traverse Connect and the Grand Traverse Area Manufacturing Council (GTAMC) are entering into a new partnership to support the manufacturing industry in the Grand Traverse region.

The centerpiece of the partnership will be a new joint membership for manufacturing companies in the region incorporating services, programs, and events from both Traverse Connect and the GTAMC, including the annual Northern Michigan Manufacturing Summit and its annual golf outing. “The Grand Traverse Area Manufacturing Council was established to promote long-term thinking, education, and collaboration through people and companies that allow us to make great things in Northern Michigan,” said Roni Hazelton, executive chair of the council and vice president of fulfillment for Cherry Republic. “It’s our mission to support a sustainable and globally competitive manufacturing sector for a stronger community. We are very excited about this partnership with Traverse Connect to help us power this mission and provide expanded resources to our local manufacturing community.” Membership information is available at traverseconnect.com.

CAREER FAIR: MARCH 7 Employers are invited to register for Northwestern Michigan College’s 18th annual Career Fair, to be held Thurs., March 7, at the Hagerty Center in Traverse City. Held in partnership with Northwest Michigan Works and Networks Northwest, the fair runs 3pm-6pm.

Employers will have the opportunity to recruit job seekers for career-track, seasonal and entry-level positions, as well as for internships and service learning. Employer registration costs $25 and is available at nmc.edu/career-fair.

Now Booking for 2024!

PICKLEBALL FACILITY OPENS Pickle U, a new indoor pickleball facility, has opened in Acme. The facility is located in Oak Shore Commons, a new mixed-use development by Strathmore Real Estate Group on the former Kmart property on US-31. The 16,000-squarefoot facility has eight indoor courts, rental equipment, a pro shop (Pickle U is a licensed dealer for Selkirk), and a ball machine that allows players to practice alone.

Perfect for: Special Events & Meetings Fundraisers Networking events Team building Product launches

@VenueBluOnDiscoveryPier @venueblu

Contact our Venue Manager to rent Venue Blu Laura@DiscoveryGreatLakes.org

On Discovery Pier at 13271 S West Bay Shore Dr. Traverse City, MI 49684

servprograndtraversearea.com

BOUNDLESS FUTURES ANNOUNCES $120K IN GRANTS Boundless Futures Foundation, a private foundation founded last fall by Soon and McKeel Hagerty of Traverse City, has announced its inaugural EmpowHer grants to three female founders as well as its first Her Village nonprofit grant recipients. The foundation is providing financial support and leadership resources for aspiring female entrepreneurs who are building businesses that either address social issues or have an impact element as part of their business model.

Tatiana Freeman of Minnesota-based Nosh Posh (noshposhmn.com) will receive $25,000, Tina Arroyo, optician and owner of Detroit-based Spectacle Society (spectaclesocietydetroit.com), will receive $20,000 and Stephanie Blanchard of media company Artisan Joy (artisanjoy.com) will receive $15,000.

Additionally, Traverse Connect will receive a $30,000 Her Village grant toward scholarships for women participating in three of its programs aimed at supporting women at different stages in their careers, and the Center for Women and Enterprise will receive a $30,000 grant to fund its female entrepreneurship programming.

To learn more about the foundation or apply for funding, visit boundlessfutures.org.

Time to Change IT Providers?

40 Team Members 20 Years in Business 98.3% Client Satisfaction 2 Locations - Northern Michigan & Metro Detroit

IT SECURITY

|

PARTNER

|

SUPPORT

231.944.1100 www.safetynet-inc.com 248.286.1166

6 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

WE STAND FOR GREAT FLOORING HARDWOOD LUXURY VINYL CARPET LAMINATE AREA RUGS TILE & STONE INSTALLATION

LET’S GROW On your entrepreneurial journey, the road is paved with dreams, grit and determination. We help simplify the complex so you can focus on the results.

Our business is to help your business succeed.

Let’s grow together.

Michael Caruso

BAY VIEW

FLOORING & DESIGN CENTER

SVP Commercial Banking 231.941.6303 mcaruso@nicoletbank.com

67 N US 31 S Traverse City BayViewFlooring.com

FOR SALE

John Galbraith

DOWNTOWN CONDO

VP Commercial Banking 231.632.9331 jgalbraith@nicoletbank.com

119 E 8TH STREET | TRAVERSE CITY, MI

$385,000

Jeremy Harnish SVP Commercial Banking Manager 231.941.6306 jharnish@nicoletbank.com

Andrew Sabatine 1 BED | 1.5 BATH | 917 SQ FT

SVP Commercial Banking 231.941.6301 asabatine@nicoletbank.com

Welcome to Ivy Terrace, in the heart of downtown Traverse City!

This modern condo fits a wide array of lifestyles and uses... a primary residence for those seeking the ultimate low-maintenance lifestyle, a second home with the ideal location for exploring the best of Traverse City, or a profitable short term rental.

SHAWN SCHMIDT SMITH ASSOCIATE BROKER

MIKE PETRUCCI REALTOR

®

231.499.1990

231.645.5922

shawn@shawnschmidtsmith.com

Mike.Petrucci@cbgreatlakes.com

522 E FRONT ST, TRAVERSE CITY, M I 49 6 8 6

Traverse City NicoletBank.com 800.369.0226 Member FDIC

Real People. Real Conversations.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

7

COMMENTARY BY SEBASTIAN GARBSCH

THE WISDOM OF WINNERS: Five principles to ‘stick the landing’ in life and business

Ah, February, the month where New Year’s resolutions go to die. Let’s face it, those lofty goals you set while sipping champagne and watching the ball drop?

Kaput! So, what went wrong and how can you beat the odds to achieve your goals once and for all?

Spanning two decades, I’ve had the distinct privilege of witnessing the goal-achieving power of some exceptionally talented individuals, most of whom did not achieve their grandest goals by leaning on New Year’s resolutions.

My journey, woven through the founding of three businesses and coupled with 20 years of coaching and personally training an eclectic group of leaders has offered me a unique vantage point.

Alongside these remarkable people, I’ve taken in valuable insights into the art of not just setting resolutions but sticking the landing.

The greatest part about these insights is how well they work for such a wide variety of goals. I’ve been able to apply them to everything from learning German, to maintaining a longevity-based health program, growing multiple small businesses, working with non-profits and so much more.

Boiling down what can be a complicated group of ideas, here are some simple, effective, and most importantly, easy to remember principles I hope will serve you well in 2024 and beyond.

Principle 1: The Universality of Time.

Time is like that all-knowing, slightly smug friend we all have. It’s the same for

every type of goal, whether you’re chasing one related to health, wealth or personal happiness. The leaders I’ve been blessed with working with over the years understand this: Great achievements demand patience and endurance, much like a fine wine or a matured cheese. Remember, the path to success is a marathon, not a sprint, and time is your sneaky ally. (And yes, I made a shameless reference to two of my passions!)

Resolution Fix 1: Go long-term with your goals. This time, make it the LAST time you start this resolution. Ask yourself, how much time have you wasted in a repetitive loop of starting, crashing and restarting? Make this the last time!

Principle 2: Roadmap to Success. Ever tried setting off on a road trip without knowing your start and end points? That’s a recipe for a chaotic, directionless adventure, much like most resolutions. You need a clear start, finish, and roadmap – just like Google Maps, but for your life goals.

Resolution Fix 2: Without clear start and end points, resolutions often crumble, lacking a coherent plan. Make sure you know where you are starting and where you want to end up, with a good initial plan to go in between.

Principle 3: Specificity. Vague goals are like trying to find a hidden treasure without a map. “I want to focus on my business” or “be a better spouse” are too vague. Getting specific will allow you to measure your progress. Don’t just go with your gut, look at the numbers.

Resolution Fix 3: Be specific so you can objectively monitor your progress; leave nothing to chance.

Principle 4: Adapt. If you’re following these principles, you’ll have an objective, measurable resolution that will stand the test of time. However, even this doesn’t guarantee success if your plan needs adjustment along the way. Hit a roadblock? Time to adapt. Think of it as taking a detour

Vague goals are like trying to find a hidden treasure without a map. when you hit construction on the road. It’s all about staying flexible and creative and never losing sight of your end goal.

Resolution Fix 4: Check in on your goals at regular intervals and if you get off course, make the necessary changes to get back on track.

Principle 5: Maintain. In many ways, this can often be the hardest of all: Once you reach your goal, don’t get complacent and backslide. Sure, you may be ready to create other new goals that require a lot of energy initially (as this one once

LETTERS TO THE EDITOR // ON THE WEB tcbusinessnews.com PUBLISHER Luke W. Haase lhaase@tcbusinessnews.com CONTRIBUTING EDITOR Gayle Neu gneu@tcbusinessnews.com HEAD WRITER Craig Manning COPY EDITOR Becky Kalajian

CREATIVE DIRECTOR Kyra Poehlman CONTRIBUTING WRITERS Ross Boissoneau Art Bukowski Clark Miller WEB PRODUCTION: Byte Productions MAILING/FULFILLMENT Village Press DISTRIBUTION Gerald Morris SERVING: Grand Traverse, Kalkaska, Leelanau and Benzie counties

Sebastian Garbsch founded Formative Fitness after graduating from Ferris State University with his bachelor’s in business. He is the owner of Blue Goat Wine & Provisions and is currently serving as president of the Traverse Symphony Orchestra, as well as on the board of TC Tritons Rowing and Downtown Traverse City Association. In his free time, he enjoys spending time with his family, being outdoors and seeking new opportunities that align with his passion for business growth and community engagement.

Have something to say?

Send your letters to: news@tcbusinessnews.com We reserve the right to edit for space and clarity.

AD SALES Caroline Bloemer cbloemer@tcbusinessnews.com Lisa Gillespie lisa@northernexpress.com Abby Walton Porter aporter@northernexpress.com Kaitlyn Nance knance@northernexpress.com Todd Norris tnorris@tcbusinessnews.com Michele Young myoung@tcbusinessnews.com

TCBN

the

EDITORIAL & BUSINESS OFFICE P.O. Box 4020 Traverse City, MI 49685 231-947-8787

did) but remember, maintaining is much easier than starting over. Just like all these principals, this applies equally to health, wealth, as well as all other goals.

Resolution Fix 5: Put at least some of your daily energy into maintaining previously accomplished goals. Once you reach a goal, set small habits in place so you don’t backslide. These small habits will be easier than originally accomplishing the goal, but it also requires vigilance, especially when life tries to get in the way.

By holding the line on old goals, you will be able to grow in new and amazing ways without having to restart goals you’ve already met but didn’t continue.

Lastly, keep it simple and start small, or don’t! Some people love setting BIG goals so they stay charged up from the beginning, while others need to start small and celebrate victories along the way. Everyone is different, but with a proper framework such as the five principles above, you will have the structure needed for long-term change and growth.

The Traverse City Business News Published monthly by Eyes Only Media, LLC P.O. Box 4020 Traverse City, MI 49685 231-947-8787 Periodical postage qualification pending at Traverse City, MI. POSTMASTER: Send address changes to The Traverse City Business News, PO Box 1810, Traverse City, MI 49685-1810.

The Traverse City Business News is not responsible for unsolicited contributions.

Content ©2024 Eyes Only Media, LLC. All rights reserved.

EYES ONLY MEDIA, LLC

FROM THE DESK OF...

8 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

Madison Ford, Employee Benefits & Life Insurance Account Executive at Ford Insurance

By Art Bukowski What’s work without a little fun? Madison Ford, who works at Ford Insurance in Traverse City, isn’t one to stare at his screens for very long. He’s got to get up and shoot a few Nerf hoops every now and then or he’d go crazy. Have a look as Madison (who handles HR in addition to sales) walks us through his space. If you have a suggestion for a future “From the Desk Of” feature, let us know at info@tcbusinessnews.com.

It says ‘You Got This.’ I had never done sales before I came to Ford. My wife got this for me to remind me to stay the course, even if things are hard or new.

‘How to Conduct a Great Performance Review.’ I want to talk about people’s growth in a way that’s leaning forward.

I want people to be excited about whatever that next step is for them.

That’s a high-five. I’ve always been a hype man, I guess you could say. I believe in my people and the people who come in here.

Here’s a survey marker from when my wife and I climbed to the top of Angel’s Landing at Zion National Park during our honeymoon. For a while I carried it in my pocket.

I write a ton of thank you cards.

Gratitude is important, and people liked to feel seen.

“This says ‘Most Vulnerable Person.’

The idea behind that is that you can tell me or ask me anything, whether it’s about you or me. I’m willing to be in an uncomfortable space with people, and sometimes that’s very important.

I have to wear the earpiece. I’m always talking with my hands, or sometimes I’m shooting hoops or playing around with something else.

Doing something else in the front of your brain allows you to do better processing in the back of your brain.

“The Ruthless Elimination of Hurry” by John Mark Comer.

It’s about simplification of life in order to get the most out of it. I highly recommend it.

It helps you build margin and peace into your life.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

9

TRAVEL MEETINGS EVENTS

Grand Traverse Resort Governors’ Hall

2024 MEETINGS & EVENTS OUTLOOK IS BRIGHT, SAY PLANNERS

By Art Bukowski

A busy, bright and positive outlook with a slight dash of trepidation.

That’s perhaps the best way to summarize the mood from local meeting and event venues as we move (knock on wood) further into the post-COVID world.

After the global pandemic completely ravaged this industry for the better part of two years, local venues that depend heavily on conventions, meetings, conferences, group outings and other events report solid bookings and good vibes heading into 2024 and beyond.

“I think 2023 was still a recovery year for us, but 2024 and 2025 look very, very promising,” said Katie Leonard, director of sales at the Grand Traverse Resort and

Spa. “They look fantastic.”

The Grand Traverse Resort is the juggernaut of local event venues, with 85,000 square feet of indoor and outdoor space used by thousands of attendees each year.

But the region has long been one of the top destinations in the entire Midwest for meetings and conventions, and groups of all sizes are fortunate to have several excellent large facilities and dozens of smaller venues to choose from.

This means big business for the venues and for the region itself. About two-thirds of the Grand Traverse Resort’s room rentals each year are tied to events and meetings it hosts, for example, and millions of dollars are generated throughout the area by the tens of thousands of people who come here for this reason.

“Bringing in business and industry groups from outside the region for conferences and events not only provides our world-class hospitality venues with a chance to shine, but the exposure also benefits many aspects of our economy,” said Warren Call, CEO of Traverse Connect. “(Visitors) find new retail gems, meet new product suppliers, and gain exposure to our under-the-radar advanced technology and manufacturing sectors.”

Traverse City Tourism CEO Trevor Tkach said events are “critical” to a region that has a very strong focus on summer, sometimes at the expense of winter and the shoulder seasons.

“Meetings and conferences help balance out demand in times of need, both seasonally as well as during the week, when leisure

Ramsey

travel is at its low point,” he said. “They also bring in new travelers who might not have otherwise had the chance to get to know our region, and once they get a taste, we know that many of them will plan their return and bring along more family and friends.”

Recruiting Marketing Tip From Plamondon Marketing Transform digital marketing principles into effective candidate recruitment strategies. Grab attention with compelling visuals, share success stories, and highlight innovation. Leverage PPC and Meta ads to discover top-tier talent. Let's shape success together!

Questions?

Info@plamondonmarketing.com

(231)994-3794

Where Consistency Meets Flexibility

10 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

TRAVEL/MEETINGS/EVENTS COVID’s legacy?

Everyone TCBN spoke to for this story – Grand Traverse Resort and Spa, Shanty Creek Resort, Great Wolf Lodge, Kirkbride Hall and Crystal Mountain – reported robust bookings so far for 2024 and in some cases well into 2025.

Whether things are back to pre-pandemic levels is a bit of a loaded question.

While the bookings and guest numbers have largely returned in most instances, the patterns have changed – possibly for good. For example, companies, organizations and other groups are now less willing to book out as far in advance as they once were, likely due to a combination of factors.

“A few years back, groups were very accustomed to booking years into the future, and multiple years at a time, and they’re not yet back to that that habit,” said Tracey Ramsey, vice president of lodging and sales at Shanty Creek Resort. “Some of it is because they have had a lot of turnover themselves…and I think everybody’s a little gun shy about what the economy is going to be this year and next.”

The booking window is also far shorter, especially with groups of less than 100. This is a pattern seen in multiple segments of Shanty’s business, Ramsey said. Less planning, doing.

FRENCH MANORmore SOUTH

“For some of these smaller groups, they’re not hesitating to ask for a meeting in three to six months,” Ramsey said. “I think people have shifted their mindset to being more spontaneous with personal things like leisure travel, and that can flow over to the work environment.”

Plenty of clients themselves – large companies, associations, organizations and more – also remain on uneven footing in the wake of COVID. Combine that with inflation, staffing challenges and more, and they’re less hesitant to book or follow through with planned meetings.

“We are still seeing some large group cancellations. Some the industries post-COVID are still struggling for a multitude of reasons,” Grand Traverse Resort’s Leonard said. “Some of it is still the result of COVID, and some is due to other things going on in the world right now.”

Like seemingly every other business in the post-pandemic world, staffing continues to be an enormous challenge for most event spaces. Crystal Mountain was the only large event venue contacted by TCBN that seems fully comfortable on that front. Ironically, Crystal launched its events business several years back in large part to provide

Crystal Center

Johnson

“One of the reasons that we have a strong workforce and high guest satisfaction is because we have great people, and we have great people because we’re able to provide them with consistent, year-round employment. The meetings and events segment of our business is a huge contributor to being able to do that.”

- Arah Johnson, senior VP of sales and marketing, Crystal Mountain

work for its staff in between the busy ski and golf seasons.

“One of the reasons that we have a strong workforce and high guest satisfaction is because we have great people, and we have great people because we’re able to provide them with consistent, year-

round employment,” said Arah Johnson, Crystal’s senior vice president of sales and marketing. “The meetings and events segment of our business is a huge contributor to being able to do that.”

Another challenge is one that’s always been there among a deep stable of ven-

BUILDING RELATIONSHIPS VISION

Develop a new assisted living facility with formidable standards: homey, high-quality and affordable

“ I wouldn’t work with anyone else. Burdco was a true

partner –with us, the subcontractors and everyone involved. Mike and his crew take ownership every step of the construction process. There were no headaches – and they were always reachable and always accountable.

– Rusty Ackerman Owner/Manager, French Manor Assisted Living

Rusty Ackerman

”

DESIGN/BUILD MEDICAL OFFICES COMMERCIAL ASSISTED LIVING INDUSTRIAL

French Manor

Mike Brown

Owner, Burdco

TRAVERSE CITY • GAYLORD • PETOSKEY BURDCO.COM • 231.941.9074

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

TRAVEL/MEETINGS/EVENTS

Kirkbride Hall

Leonard

Shanty Creek Resort ballroom ues looking to woo potential guests – but it’s not necessarily bad.

“There’s a lot of competition from resorts and other event spaces in the area, because there certainly are plenty to choose from, but competition is good,” said Chelsea Harland, sales manager at Kirkbride Hall in The Village at Grand Traverse Commons. “I think it’s a positive challenge to have.”

From a technological perspective, venues reported a winding down of in-person meetings with a zoom component.

That format was very popular as people slowly eased back into meetings following the pandemic.

“We’ve reached a point where we’re moving away from the hybrid meeting.

I’m not saying that they don’t happen anymore, but we’re hearing less demand,” said Tori Piersante, director of sales and catering at the Great Wolf Lodge. “People are excited to have face-to-face meetings again and feed off each other in terms of conversations they’re able to have.”

Many in the event industry have a bit of permanent unease in the wake of an event that shut down their business. The positive, of course, is that what didn’t kill them probably made them more resilient in the long run.

“I think post-COVID, a lot of the relationships between clients and host venues have become stronger,” Leonard said. “We’ve all had to work through this together.”

Renovations and upgrades Many of the region’s event venues have taken big steps to freshen their spaces in the wake of the pandemic.

“I’ve worked here since 2010, and the property itself looks the best it has since then,” Leonard said. “We’ve reinvested money into all of our event spaces, along with our recent hotel renovation.”

Aside from a visual refresh, the resort’s spaces are now pillar-free. It might not sound like a big deal, but it is for a variety of groups seeking space.

“For the trade shows or anyone who has an exhibit component, they love a pillar-less space because they can get more booths in and (get) more revenue,” Leonard said. “There’s nothing they have to work around in regard to space.”

Over at the Great Wolf Lodge, it’s a similar story.

“We have completely refreshed all our meeting space in terms of new carpeting, new paint, that type of thing,” Piersante said.

Crystal Mountain recently wrapped a multi-year renovation on the Crystal Center, Johnson said, marking a “really nice refresh and upgrade” to what already was a very nice facility. New carpet, wall coverings, fixtures, furniture, technology and more await visitors.

“It just looks fantastic, and we’re able to accommodate more people in the meeting rooms now with the classroom tables that we purchased,” Johnson said.

Why choose Bonek?

For 90 years, Bonek Insurance has provided personal and commercial insurance protection.

We form strong relationships with our clients – keeping their best interests in mind.

Let us customize your coverage.

Call us today!

Integrity • Relationships • Since 1934

(231) 271-3623 • www.bonek.com

Celebrating 90 Years

11

12 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

TRAVEL MEETINGS EVENTS

TOURISM TURBULENCE? What Pure Michigan shakeups, other travel trends could mean for Traverse City’s top industry in 2024

By Craig Manning They were the words heard ‘round the world: “Inside of all of us is a compass that always points true north – toward mountains of sand, toward new sights and sensations, toward the true bounty of nature. So, let’s set our compass for Traverse City and find ourselves in the magic and the moments of Pure Michigan.”

Those 48 words were spoken by actor Tim Allen in a 2013 TV spot for the Pure Michigan marketing campaign. Over the years, Pure Michigan’s adverts have gone far beyond the Great Lakes State, airing in hotels on the other side of the country and even crossing oceans to entice tourists from entirely different continents.

The Pure Michigan campaign has been effective, and not just for the Cherry Capital that might just be its most-touted destination.

Last year, Travel Michigan – the office within the Michigan Economic Development Corporation (MEDC) that runs the Pure Michigan campaign – reported that its advertising had influenced nearly 2.1 million leisure trips to the state in 2022, generating $3.1 billion in total spending and more than $195 million in state tax revenue.

Those numbers, gleaned from an outside study, amounted to a 11:1 return on investment when compared to the state funding allocated for the program – the highest in Travel Michigan’s history, per the MEDC. As the sun rises on 2024, Pure Michigan is entering a new and somewhat unsure era. Late last year, David Lorenz, longtime vice president of Travel Michi-

gan – and one of the original architects behind the Pure Michigan campaign – announced plans to retire. Lorenz’s 21-year tenure with the Travel Michigan office officially came to an end on December 31.

At the same time, the campaign is in a moment of tumult, with a 2024 budget that is half the size that it was supposed to be.

In July, Crain’s Grand Rapids Business reported that, in spite of a proposed state budget from Governor Gretchen Whitmer that would have included allocated $30

mean for Traverse City? Trevor Tkach, president and CEO of Traverse City Tourism, points to Quentin Messer at the MEDC as an advocate for tourism in Michigan.

“I’m grateful right now that Quentin Messer is at the helm at MEDC,” Tkach said about Messer, the corporation’s chief executive and economic competitiveness officer. “He has a real keen sense of the importance of travel and tourism to the overall economy.”

Not only will the smaller Pure Michigan budget mean that “the opportunities aren’t quite the same as what we’ve had before” in terms of promoting the state nationally and internationally, TCT will also be tasked with filling more hotel rooms than ever before in 2024. million for Pure Michigan – $15 million in state dollars and $15 million – the state legislature and executive branch agreed to eliminate that federal funding. Per Crain’s, the $15 million in federal money was supposed to come from the State Fiscal Recovery Fund (SFRF), established during the pandemic as part of the American Rescue Plan Act, but that funding disappeared because the SFRF ended with the COVID-19 emergency. (President Joe Biden signed a bill in April that officially terminated the national emergency over the COVID-19 pandemic.)

So, what does a scaled-back budget and the loss of one of its biggest tourism allies

Tkach praises Messer, who came from New Orleans, as a “very vocal advocate” for travel.

“I mean, the guy came from New Orleans with a background of working with some really amazing places and organizations, so I think he sees the value in the work that’s being done a Travel Michigan,” he said. “I have a high level of confidence that Pure Michigan will continue to grow and evolve under his leadership.”

While Messer is leading the MEDC as a whole, Lorenz told the TCBN that his successor as the actual leader of Travel Michigan has yet to be named. For now, Lorenz’s “former number two,” Kelly

Wolgamott, has stepped into the VP role on an interim basis.

“I don’t know how long that will last,” Lorenz said of Wolgamott’s tenure. “I believe they’re going wait at least a couple of months (to hire a permanent replacement). They want to give it a little breathing time, and I think that’s a wise move.

But I have full confidence they’re going to get somebody who’s going to do a better job than me.”

Tkach says it will be a challenge for the MEDC to find someone who advocates for Michigan and its tourism economy as fiercely as Travel Michigan’s longtime leader did.

After all, Lorenz says he was there 18 years ago when George Zimmerman, then the office’s travel director, “had a vision that, if we really got serious about promoting the state, we could become a real player in the tourism economy in the country.”

Lorenz, who was Travel Michigan’s managing director at the time, worked closely with Zimmerman and advertising agency McCann Erickson to define the core elements of the Pure Michigan campaign – from picking the music to roping in Tim Allen to be the voice of the brand.

Since then, Lorenz has been a hardcharging champion for all of Michigan but especially Traverse City, which he himself described as “the jewel in the crown that is the Michigan tourism industry.” An advocate like that, Tkach argued, might just be one in a million.

“I will say, Dave will be missed,” Tkach said. “We are so grateful for all he has done for our state, and for Traverse City

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

13

TRAVEL/MEETINGS/EVENTS

and the northern Michigan region in particular.”

Tkach notes Lorenz’s time and energy early on was important to building tourism in Michigan.

“We recognize that he’s a man of character and that he never wavered. His priorities were clear, and that was to make sure Michigan was always putting its very best foot forward when it came to travel and tourism,” he said.

For his part, Lorenz says he is ready to lay his head down and stop running for a while. Eight and a half years ago, Lorenz stepped into the role of travel director, which made him the face of Pure Michigan at conferences and tourism events throughout the state and beyond. As a consequence, Lorenz says his road warrior years put 1.4 million miles on his cars, blowing two engines and one transmission. He also flew half a million miles, including several trips to China and a couple trips with former Gov. Rick Snyder.

“So, it was a lot of travel,” he said. “I’ve joked that I didn’t know when I came to Travel Michigan that the name of the organization would be my job description, but that definitely came to be the case.”

Lorenz isn’t walking away from the travel world completely. He pledges to be back in northern Michigan soon, now simply as a traveler and tourist himself. He and Tkach are even planning to run a race together in this year’s Bayshore Marathon.

Lorenz has also accepted a part-time engagement with the Educational Seminar for Tourism Organizations (ESTO), an annual conference and knowledge-sharing forum hosted by the United States Travel Association that seeks to equip destination marketing professionals with tips, best practices and information about the latest industry trends.

Lorenz says he is hopeful the new job will give him the time and resources to focus on certain aspects of destination development that he never had the bandwidth for as travel director – such as, perhaps, helping communities like Traverse City navigate issues around affordable housing.

As for the slashed Pure Michigan funding, Lorenz is confident that his former colleagues at the MEDC and the statewide team of convention and visitors bureaus – TCT included – will find a way to keep Michigan tourism thriving.

Tkach says he sees some potential turbulence ahead. Not only will the smaller Pure Michigan budget mean that the opportunities aren’t quite the same as what we’ve had before in terms of promoting the state nationally and internationally, TCT will also be tasked with filling more hotel rooms than ever before in 2024.

“It’s likely that we will have four new hotels come online (in the Grand Traverse area) in 2024,” Tkach said. “That new inventory

Lorenz

Tkach

“I will say, Dave will be missed. We are so grateful for all he has done for our state, and for Traverse City and the northern Michigan region in particular.”

– Trevor Tkach, president and CEO, Traverse City Tourism will definitely change the dynamics.”

More supply leads to more opportunity for travelers, he says, which may be great for those who are looking for a chance to come north in the summertime, when the area has more demand than supply at some points.

“But it’s also going to be a little bit more challenging when it comes to the slower times of the year, when we’ve already got far more supply than

demand,” he said.

Tkach says the area might see some unpredictable headwinds with the upcoming elections.

“Election years are always kind of crazy; you never know how consumers are going to respond to that,” he said. “And there are still some signs that inflation and challenges with consumer spending could hamper travel.

“So, we’ll see. The future is unwritten.”

14 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

CUSTOM WINDOW TREATMENTS

FREE Window Treatment Installation going on NOW! Shades • Blinds • Drapery • Shutters • Motorization

“Thanks Americas Carpet Barn!”

FREE Window Treatment Installation going on NOW! Shades • Blinds • Drapery • Shutters • Motorization

Check out our Google reviews to see for yourself!

883 US Highway 31 S Traverse City 231-943-PIGS (7447) www.americascarpetbarn.com

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

15

MARKETING PROMOTION DESIGN

‘WE ALL NEED TO ADAPT:’ Breaking down digital marketing trends in 2024

By Art Bukowski For as long as businesses have existed, marketing has been one of the most important investments to make. But standing out from competitors and successfully winning over customers has arguably never been more daunting than in today’s fast-paced, information-saturated world.

Though plenty of traditional methods are still effective, digital marketing is one of the most powerful and rapidly growing segments of this industry. The TCBN connected with local and downstate agencies to get their take on digital marketing in 2024 and beyond.

The experts: Tessa Lighty: Brand Manager at OneUpWeb (Traverse City) Bob Rose: Owner of Freshwater Agency (Traverse City) Aric J. Brown: Senior Director of Digital Strategy at Intellectual Ninjas (Grand Rapids) Jono Diener: Creative Director at KarmaJack (Detroit)

16 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

MARKETING/PROMOTION/DESIGN What trends are you keeping an eye on in digital marketing?

Diener: In 2024, we’d be remiss to not bring up AI (artificial intelligence) when it comes to trends in digital marketing.

Not as a ‘write this all for me’ prompt engine, but a tool that can be used to craft personas, boost efficiency in idea generation, provide guidance and structure to workflows and streamline processes. Just like anything we use, a tool is an accent to the marketer’s mind.

While this is happening, we’re noticing the importance of storytelling through video, which in a way is the exact opposite of AI. We’re seeing consumers hungry for this feeling of organic matter in social advertising, and it’s translating into TikTok transforming into a search engine and blossoming e-commerce platform. People miss the tastemakers convincing them to purchase something after years of hollow web store experiences, so it’s all happening again, but in a digital way.

Lighty: We’re monitoring the cookie-less future and educating our clients on the importance of first-party data.

Historically, websites have tracked a user’s specific actions using cookies, but that has caused issues, legally speaking.

Now, businesses will need to have a plan in place for collecting, analyzing and retargeting users that is independent of

the cookie system we’ve grown used to.

This means offering users a reason to log into your website so you can monitor their activity that way, or utilizing other channels like social media or email marketing more purposefully to connect with your audience, understand their interests, and target them with the right message at the right moment.

On top of that, we are eager to continue to provide a variety of high-quality and engaging video content to our clients’ audiences as that demand skyrockets. It’s always a balance to keep an eye on trends like high-quality video and not neglect the tried-and-true marketing efforts like search engine optimization. These days, we’re watching how SEO is changing to include social SEO; a whole new world of content creation and keyword opportunities is opening up for businesses.

Rose: From what we can see, AI is going to have a huge impact on digital marketing, and it’s going to happen much quicker than people think. In just the past year, we’ve watched AI make huge strides in content creation, video editing, copy writing, customer support, campaign optimization, and even website development.

AI gives marketers (or companies) with a clear understanding of their target market the opportunity to build extremely successful digital marketing

Lighty

Rose

campaigns. By combining their expert industry knowledge with the power of AI platforms, companies will be able to build campaigns much faster and with much less effort than ever before.

With that said, AI still requires input and guidance from humans to create truly effective digital marketing outcomes. Utilizing a digital marketing expert with a deep understanding of your customers, markets and goals is still paramount to achieving success in digital marketing.

Brown: If there’s one thing that

stands out, it’s that consumer behavior is changing – rapidly. Single-tactic or single-channel approaches don’t work anymore, so we all need to adapt. By using AI tools to track shifting trends, we’re diving deep into what makes our audience tick. It’s no longer just about selling; it’s about crafting personalized experiences for each customer. Approaches are becoming more conversational and natural.

We’re witnessing a turning point in how brands interact with their

MORE EXPERIENCE. MORE CHOICE. MORE LOWER COST OPTIONS. • The largest number of experienced and board certified surgeons with 13 surgeons, and a team of PAs and Physical Therapy providers focused solely on Orthopaedics

• We can get you in the same day with a single phone call when you get injured

• GLOC has served Northern Michigan for over 30 years • No Urgent Care or ER deductibles at GLOC • 2 locations to serve you

GoGLOC.COM / 231.935.0900 4045 West Royal Drive 401 Munson Avenue

Go forward, Go GLOC.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

17

MARKETING/PROMOTION/DESIGN customers. Ethical marketing is really resonating with people who love brands that care. Obviously, AI and automation are revolutionizing our strategies, from customer queries to personalized campaigns, but it still takes experience and expertise to understand the behavior that will make the biggest impact moving forward.

Many businesses (especially smaller operations) have tight marketing budgets.

What is the best way to get a return on a limited investment?

Rose: Goals. To make a return on your investment you must first have clearly defined, tangible goals in place to guide your company or agency toward achieving the outcomes you desire. Goals are the driving force behind the processes and strategies used to achieve success.

Your goals should be specific, clear, measurable, achievable and tailored specifically to your company. You also need to have a very good understanding of your customers, seasonality, costs and profitability. Basically, you need to understand exactly how your company profits before investing those profits back into your company.

Setting goals isn’t always as easy and requires a deep understanding of your performance metrics – but it’s the cornerstone of any good digital marketing campaign and the best tool for keeping budgets in check and improving performance.

Diener: Like anything, there is no one-size-fits-all answer. It all depends on the marketing budget, and ultimately the primary objective. Sometimes social advertising may not be the answer, because it involves paying for the service and then an additional ad spend. That can easily be beyond budget. So in cases like that, if you focus heavily on branding and refining it to meet the client’s objectives, it may be the jet pack needed to break through the barriers.

Is it clear what the company does to and for their customers? Are they reaching the right people with what they’re currently doing? Are they using data to drive decisions or emotions? These are a few simple questions that can lead to the ideal recommended services.

If you’re assuming social media will be the sole driver of revenue and conversions, that’s incorrect. The ad spend piece of this is how to drive true conversions, but it needs to be done in an intentional and strategic way.

Brown: Navigating tight budgets can be challenging, but also rewarding!

Making a smaller budget work effectively can enable continual scaling to reach objectives. Be realistic – the internet is not free and should be treated as any other marketing channel. If budgets are tight, it’s crucial to have a professional working with that budget effectively.

We have seen many businesses over the years, including large corporations, try to use existing teams or roles for their new digital endeavors, and it rarely turns out well. If you’re unsure of what to look

WWW.REALESTATETC.COM

5087 N ROYAL DRIVE TRAVERSE CITY, MI 4,481 SF UNIT MED OFFICE INVESTMENT PROPERTY

8.5% CAP RATE | $720,000

Brown for, hire a reputable agency with expertise in your objectives. This will save you money in the end, guaranteed. Above all, always keep an eye on your analytics.

It’s the digital compass that guides your budget to the most effective strategies.

Lighty: Identify what areas of marketing are already working well for you and lean into them. For an e-commerce business, that might be social media marketing. For a service-based franchise, content marketing is a solid strategy.

You don’t need to do a little bit of everything and, in fact, that can leave you stretched thin and not doing any one thing well. Once you identify what works, you can analyze it, optimize from your learnings, rinse and repeat.

Why should businesses or organizations hire an agency to put together a plan? Can’t they do it themselves?

Rose: We know plenty of organizations that do a great job of creating digital marketing plans. Over the years we’ve worked with some awesome internal marketing teams helping them to execute their vision. But not all businesses have the expertise, resources, tools or time to be successful with digital marketing.

Having an agency build your digital marketing plan allows your organization to benefit from the knowledge, expertise and experience needed when creating a plan that is both innovative and effective. Since the success of agencies relies solely on the success of their clients, most tend to stay on top of the latest trends, platforms and tools needed to create high-performing and budget-friendly campaigns.

Creating a marketing plan can also be resource intensive. By partnering with an agency, organizations can free their team up to focus on business operations and other important day-to-day tasks. It’s also important to realize that agencies don’t create great plans in a vacuum. A strong, collaborative partner-

Diener

ship between the organization and the agency is the key to success.

Brown: When considering an agency, use specialists, not Jacks-of-all-trades.

Hiring an agency is like bringing an expert into your internal team. A reputable agency can bring a wealth of experience and specialized knowledge that will help improve your processes and bottom line.

An agency allows you to focus on your core business while they handle the complexities of your digital marketing.

Plus, as your business grows, they can scale their services accordingly, ensuring your marketing evolves with your business.

Remember: Not all digital agencies are the same. It’s important to choose one that is experienced, fits well into your business, and is as invested in your success as you are.

Diener: There are a few reasons businesses hire a marketing agency. They are either too busy to do it themselves, don’t fully understand a true marketing plan and need an expert’s help, or need a fresh set of eyes to best tell their story.

When you are telling your own story, you have blind spots. When you bring in an agency with fresh eyes to see things from a new perspective, you get an end result with more color, dimension and excitement.

Lighty: Some businesses can, and should, put together a marketing plan on their own. We offer tons of resources for people to DIY their marketing. But, after a certain point we typically hear two things: That people become stretched too thin with other priorities, or that there is some specific problem they can’t solve.

Hiring an agency immediately gives businesses access to an entire team of marketing professionals with various backgrounds, skills, passions, etc. When you need support, don’t you want the best? For a business to hire one person to fill the role of an entire agency would be a huge ask. And for a business to hire a team of people to fill the roles of an agency would be a huge cost. After a certain point, it becomes more cost-effective to hire help than a new employee.

1867 CASS HARTMAN COURT TRAVERSE CITY, MI 64,518 SF | 2.9 AC INDUSTRIAL INVESTMENT PROPERTY

9% CAP RATE | $4,194,000

2470 DIAMOND DRIVE TRAVERSE CITY, MI 3,008 SF | 0.95 AC OFFICE & WAREHOUSE

$425,000

3520 RENNIE SCHOOL ROAD TRAVERSE CITY, MI 1,600 SF HEATED WAREHOUSE

$1,333/MO + CAM

DAN STIEBEL REALTOR®

231.633.0432

dan@realestatetc.com 522 E Front Street Traverse City, MI 49686

18 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

MARKETING PROMOTION & DESIGN

CLIMBING THE SOCIAL LADDER What local pros recommend for getting impressions and clicks

By Ross Boissoneau Social media has changed pretty much everything, from finding old friends to how people date and from sharing personal news to getting the news.

That certainly includes marketing, advertising and public relations. For those looking to showcase their business or service, social media offers an alternative to print and broadcast options.

So which media should you use? If the biggest is the best, then turn to Facebook, with more than three billion people using it monthly, according to Search Engine Journal, making it the largest social networking site. Next up is YouTube with 2.5 billion users. Instagram, with 2 billion, and Tiktok, with 1.2 billion. Snapchat, X (née Twitter) and Pinterest are next, while Reddit, LinkedIn and Threads make up the rest of the top 10.

While a business wants to reach the most people, it also wants to reach the right people. Finding the audience for a particular product or service may not be as simple as just setting up a Facebook account (though it may be). So determining which media to use, how to do so, and how often to do so is why many turn to professionals to help them navigate the ever-increasing number of apps and opportunities.

“My world is connecting my clients to customers,” said Rick Kiehle, owner of Garrison Digital Solutions, an online-based marketing company in Traverse City.

He’s a solo-preneur who works with a network of freelancers and subcontractors across the country and world.

While setting up an Instagram or Facebook account is free, utilizing them for business isn’t necessarily. Running ads costs money, and in reality so does simply

Jerome

posting. Time is money, and the more of it a business person takes to create, post and respond, the less they are working on their business’s core product or service. So it can ultimately prove more practical to hire someone like Kiehle with knowledge of which media to use, how to set it up, how to build and utilize ads, how often to

Smith

post updates – even someone to provide the actual content.

Hiring a full-time employee is one route, but for smaller businesses, that is seldom practical. That’s why many turn to outside firms or individuals to oversee their social media.

Still, the expenditure can be significant,

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

19

MARKETING, PROMOTION & DESIGN depending on the scale and frequency of the work. On the UpWork site for hiring freelance workers, the cost for social media design professionals ranges from $30 to $125 per hour. Of course, without contacting each freelancer separately, it’s impossible to determine the scope of the skills and services they offer.

Local marketing firms that offer social media services are often reluctant to provide cost details. That’s in part because the services break down in various ways.

“Every client is different in their needs,” said Dan Smith, co-owner of the marketing and brand communications company Flight Path Creative in Traverse City.

For example, a manufacturing company might need regular posts about its products, or it might want a one-time effort to tell the world about a new employee. A bakery might want to showcase its daily pastry treats. Sometimes it’s not about what the company can do for you, but what you can do for the company.

“Much recent social media activity has been around recruitment,” Smith said.

What all that means is the social media firm’s responsibilities may range from from determining which media to use to making site visits and shooting video.

Maybe creating copy and setting up a schedule. Or simply taking the company’s material and making a one-time post.

Then there’s the question of measuring the return on investment.

“Social media offers data and statistics for impressions and clicks,” Smith said.

But that doesn’t always provide the level of data some clients demand, so that’s often the first question he says he faces.

He and his team work with each client to determine a budget. Smith says that can run from a couple hundred dollars a month based around a couple weekly posts, to thousands of dollars for special campaigns and advertising.

Kiehle says he too often faces the question, “How much will it cost?”

“We don’t know what ‘it’ is,” he said, referring to his typical answer back.

Instead, he says it is important to define what the company wants to accomplish, then determine what percentage of the client’s marketing budget is needed to accomplish said goal.

“We arrive at a service at a price that works,” he said.

Courtney Jerome says her prices are based on what clients are looking for, whether a full campaign or a single event.

Her self-named agency can provide photographic services, video, strategy, copy and content creation, and consulting on which platform(s) to utilize. Clients can post it themselves, or the firm can take on the entirety of managing any or all channels.

“It’s not an hourly price, but proj-

Kiehle Jerome

Comiskey

ect-based,” she said. “We establish a range; how much time it takes.”

Packages start at $1,000, she says, but again, it varies widely.

Taylor Comiskey is a true one-person operation. She offers three different packages for clients: The Essentials includes one platform with eight branded posts per month and email support for $199 per month.

Standard features 15 posts on two channels (Facebook and Instagram) and a monthly analytics report for $299.

Premium, at $499 per month, ups it to 20 posts, adds LinkedIn, two videos and two Instagram stories monthly, plus work on a Facebook ad campaign (though the cost from Facebook is not included).

Other options are available a la carte.

While not typically defined as social media, Google boasts ad features similar to those of Facebook and others. Kiehle said it is important to also keep in mind the reviews found on Google provide feedback from others that a company’s potential customers will almost surely look at. For those reasons, companies such as Garrison and Flight Path Creative often look to include it in their clients’ social media.

Smith says his firm didn’t initially set out to work in the social media sphere, but developed such programs because their customers demanded it.

“We weren’t in it for a while, but as time goes on, our clients had a need for some presence (on social media),” he said.

“That’s where the eyeballs were.”

The Next Generation of Dentistry Welcome Dr. Joe Yancho to the team.

“The beauty of the house is order.”

- Henry Mather Greene

NOW ACCEPTING NEW PATIENTS!

231-941-2201 3699 S AIRPORT ROAD WEST • TRAVERSE CITY

Elk Rapids 231.498.2500

Northville 248.515.4477

josephmoseyarchitecture.com

20 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

TRAVERSE CITY BUSINESS NEWS

a perfect fit for any occasion Weddings, Business Meetings, Retirement Parties, Showers, Holiday Parties, Birthdays, Corporate Events, Reunions, Memorial Celebrations & More!

“Exceptional service, delectable food, awesome staff & beautiful venue. A place we will truly cherish for a lifetime.” - Hilary

FEBRUARY 2024

Proud supporter of our community and non-profit partners since 1898.

Please contact Barbara Olson, Events Director, for more information

S! S E

O

UR

REC

231.944.6984 • BARB@MISSIONTABL.NET 13512 PENINSULA DR, TRAVERSE CITY MISSIONTABLE.NET • PENINSULAROOM.COM

HAPP

Y

H

Join us at Middlecoast Brewing WEDNESDAY FEBRUARY 7TH 5-7PM

Local Beer and wine selections and assorted appetizers. $10 entry ENTER TO WIN: • $200 Downtown TC gift certificate • Assorted merchandise and Middlecoast Brewing gift certificates totaling $250

21

Recess 2024 is brought to you by West Shore Bank. When you choose West Shore Bank, you’re not just choosing a bank; you’re choosing a partner committed to the well-being of our community. Visit us today on 8th Street or at westshorebank.com

Recess is brought to you by

22 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

MARKETING PROMOTION DESIGN

Alfonso

STITCH IN TIME Inside the 34-year journey of Alfie Logo Gear

By Craig Manning In another life, Bonnie Alfonso may never have moved back to her native Traverse City, let alone started one of the area’s biggest and most successful promo and design businesses.

Alfonso is the founder of Alfie Logo Gear, which creates branded merchandise and promotional gear for thousands of clients all over the country. Wind the clock back 34 years, though, and Alfonso was in her twenties, living in Chicago, armed with a psychology degree, and working in the social services field. The idea of creating logo gear for corporate America had never even crossed her mind.

As Alfonso recalls it, the story of how Alfie got its start had to do with two factors: one was the nagging “persuasion” of her father and brother, who wanted her to move back to Traverse City; the other was a crushing family tragedy.

“My brother had been on vacation in Florida, and we have family there that was in the embroidery business,” Alfonso explained. “He got all excited about what a great business model that was, and how there was nothing like it in northern Michigan at the time.”

Alfonso initially resisted. What did she know about embroidery or branding, two things completely unrelated to her career or degree?

But then she got the kind of news everyone fears: Her sister had committed

suicide, and her family was reeling. Just like that, Alfonso started reassessing her life and her priorities.

“I realized everybody I cared about was somewhere else,” she said.

Not only did Alfonso move back home, but she circled back to what her brother and her dad had been talking about for months: the prospect of her starting an embroidery and branding business of her own. She had two uncles who worked in

Alfonso says she felt like she knew enough – including but not limited to the craft of operating an embroidery machine – to start her own business. In the spring of 1990, the company then known as Alfie Embroidery was born.

It wasn’t an immediate roaring success for Alfie – not that Alfonso was surprised.

“I was a one-woman operation and had just moved home after having been gone for 10 years,” she said. “I was not famil-

“Finding a way to connect, finding some way to acknowledge that everyone is part of a team or that you have similar interests, that’s really important for employers right now. And logo gear really is an easy way to do that.” –Bonnie Alfonso, founder, Alfie Logo Gear that industry – one in Florida, the other in Grand Rapids – so there was plenty of institutional knowledge for her to capture.

Her uncle in Grand Rapids even offered to show her the ropes.

“Every Monday, I would drive to Grand Rapids, go work in my uncle’s business, and then drive home on Friday,” Alfonso said. During the week, she’d crash with her aunt and uncle.

The on-the-job experience did what it was supposed to: Within a few months,

iar with the business community here. I joined the Chamber of Commerce. I went to a ton of business after hours to try to network. I did some direct mail. It was very old school, and it grew pretty slowly.”

Still, there were a few big milestones along the way that Alfonso took as proof she was moving in the right direction. The first one? Recruiting a former employee of one of her competitors to join Alfie as a sales rep; it was the first hire she’d ever made.

“That was a significant milestone,” she

said. “I used to have to shut off the embroidery machine just to answer the phone.

So, being able to scale the business and get to the point where I could afford to hire people – and be freed up from doing all the operations myself – that was big.”

Another milestone: becoming certified as a woman-owned business through the Women’s Business Enterprise National Council.

“That opened doors for us,” Alfonso noted. “Suddenly, I was going to national events and national trade shows, and was able to engage at a level with corporate America that just was not here in Traverse City.”

So began Alfie’s process of expanding beyond the boundaries of small-town northern Michigan. Before the business could start rubbing shoulders with big household-name clients, though, it needed a rebrand.

“I had a one-on-one meeting with a buyer from Kraft Foods, and when I said my company name – Alfie Embroidery – I saw the look on her face and knew that she had just put me in a box of ‘This is a small company that can’t help us,’” Alfonso recalled. “Immediately, I went, ‘Oh, we need to figure out how to be big.’”

For a new brand strategy, Alfonso hired Tim Nielsen of Nielsen Design, an agency that has designed numerous iconic northern Michigan logos – including those for Oryana, Downtown Traverse City, and TCBN sister publication The Ticker. “(Tim) created a logo and helped us really think through our positioning and our brand,” Alfonso said.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

23

MARKETING/PROMOTION/DESIGN The Alfie team

Soon, Alfie Embroidery was no more; the new name was Alfie Logo Gear, and the rebrand did the trick. Within a few years, Alfie was serving thousands of clients all over the country.

“Now, we do everything from the baseball team down the street that needs uniforms for the players, to large national companies,” Alfonso said. “We haven’t directly worked with Kraft, but we have worked with other large recognizable namebrand companies. So, I feel that rebranding the company did what it was supposed to do, and I’m grateful for that woman from Kraft for that interaction I had with her.”

Today, some of Alfie’s biggest accounts remain local: A huge one is the Traverse City Track Club, which calls on Alfie each year to deliver the branded gear for its flagship Bayshore Marathon event.

But the Alfie brand has also teamed up with clients whose reach goes far beyond Traverse City. For instance, while the company never worked with Kraft, it did land a partnership with Tyson Foods, a $53 billion multi-national enterprise. Even more iconic is the Detroit Red Wings organization, which calls on Alfie for merchandise for its annual training camp and prospect tournament in Traverse City.

Maybe the most notable client of all?

The President of the United States.

“One of the most exciting projects we ever worked on was when we embroidered custom beanbag chairs for the president to give to the prime minister of Britain,” Alfonso said. “Back when Barack Obama was president, he and Michelle liked to give real-

ly unique gifts to dignitaries that they were meeting with. So, they had found a beanbag chair company out of Grand Rapids, and then they came to us to customize them.”

The project ask was fittingly presidential: The Obamas wanted each beanbag chair to be emblazoned with the presidential seal and customized so that each chair was embroidered with the names of then-prime-minister David Cameron and his family members.

“It was a whirlwind,” Alfonso said of that project. “We had to get clearance from the state department, and we had literally 48 hours to embroider the logo and the names on these chairs. We even did a chair for ‘Larry the Chief Mouser’ – David Cameron’s cat.”

Transcending its local company roots and handling orders from all over the country has necessitated growth for Alfie.

Today, Alfie employs 22 full-time team members and works with thousands of clients across all different industries.

“It could be that, in any given week, we have 500 different orders,” Alfonso said.

The company is also poised to grow even more. Per Alfonso, the pandemic and the remote/hybrid work era have created a world of new opportunities in the logo gear industry.

“Finding a way to connect, finding some way to acknowledge that everyone is part of a team or that you have similar interests, that’s really important for employers right now,” Alfonso said of the current work landscape. “And logo gear really is an easy way to do that. So, I think

that my industry will just continue to grow, because it’s a way for a company to try to build and rally a team.”

Alfonso is just about ready to chase down those new opportunities, but said Alfie needs to hire a few new people before it can move to the next level.

“I don’t want to overwhelm my systems or my team, but I’ve got a lot of ideas, and I’m slowly releasing them as I know that my staff can keep up and we can deliver on what we promised,” she said.

One thing Alfonso is not ready for yet?

Retirement.

“My future is ‘I still love what I do,’” she said. “After 34 years, it’s hard to imagine that I still get excited about a branded ink pen or coffee cup, but I do. There’s all kinds of opportunity and I’m still having fun and enjoying what I’m doing. At some point, I’ll be looking to make some changes. But I’m not there yet.”

Advice for the female business leaders of tomorrow “When I started in 1990, the women in business were not visible to me,” Alfonso said. “The mentors that I found were all men. Which, I’m grateful that I had great mentors, but I would have appreciated having a female mentor or two as well.”

Partially because the Traverse City business scene was more predominantly male when Alfonso started – and partially because her business took off once she joined the Women’s Business Enterprise National Council – she says she is dedi-

cated to helping the next generation of women business leaders.

“I am always willing and grateful and happy to assist,” she said. “And it doesn’t even necessarily have to be a woman that is working on opening a business, but any woman in a leadership position, because that is a challenging role to be in.”

Alfonso’s number one piece of advice for women in business? Build community around yourself.

“Supporting and helping each other grow and learn – and questioning some of our own beliefs as we head down that path of leadership – is critical,” she said.

“Surrounding yourself with strong women that will tell you the truth and are focused on your growth and development, as well as their own, is key.”

She says she has a “tribe” of women that she meets with regularly to support and nurture and help each other. One crucial aspect to that group, she says, is that it isn’t all made up of one age group or demographic. Instead, it’s a cross-generational collection of female leaders – a makeup she said ensures that everyone is getting something out of the group.

“In this group that gets together regularly, there is probably a 25-30-year age range,” Alfonso said. “I think that is so critical, because everyone is bringing a different experience. The experiences I’ve had are going to be way different than somebody who is coming along today. So, everyone has a different perspective to share.”

24 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

“I have known Pat Wilson for many years and have been fortunate to work with him extensively during my career at TCAPS. Pat is built on a foundation of high moral principles, integrity, honesty, and fairness. Pat can be trusted to do the right thing for the right reasons. Pat is also a very kind and caring man and can be counted on to always tell the truth. He is non-compromising in his principles.”

- Chris Davis

“Mr. Wilson is a great combination of optimism (“well, let’s give them the benefit of the doubt”) and skepticism (“Hmmm… let’s be careful—we don’t want to be fooled…”)—a poker face with a twinkle in his eye. Best wishes in this next chapter, Mr. Wilson!!”

– Terrie Taylor “Pat Wilson was the exceptionally wise and legally astute counsel for Rotary Charities for over 20 years. His presence at board meetings was always reassuring. As much as he claimed to be a “simple country lawyer” he had a unique ability to identify a client’s need and find an appropriate legal means or structure for them to achieve their objectives. I wish him all the best in his retirement” -Marsha Smith, Rotary Charities Executive Director 1993-2018

“I’m so proud of you Dad and your 61-year legal career dedicated to serving others. A champion for all, I’ve watched you represent the major institutions of northern Michigan, small business owners, families and individuals with unwavering dedication, respect, and genuine concern for each and every client. You did that while remaining incredibly warm and fun to be around. I am so very proud to be your daughter and grateful we could practice together. -Shelley Kester “Pat served as our outside legal counsel during my years at Munson Healthcare. As such, Pat provided advice and wise guidance to our Board and Administrative group in helping us through a period of significant change.

Munson and healthcare in northern Michigan are better today as a result of Pat’s efforts. Thank you, Pat, for your wisdom, grace, and friendship. Best wishes as you ease into retirement.”

-John Rockwood, Retired CEO, Munson Healthcare

“A Lifetime of Problem-Solving, Integrity and Service to Others – Celebrating the 60 Year Legal Career of Patrick J. Wilson” 627 W. Front Street Traverse City, MI 49684 • (231)922-6800 Empowering our family law clients to build a better life

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

25

MARKETING PROMOTION DESIGN

THE DIGITAL RAGE: Top marketing trends for 2024

By Marsha Stratton, columnist In the dynamic digital marketing landscape, staying updated with trends is crucial for success. A marketing plan for effective strategies and keeping abreast of the latest techniques is vital for your business. Below are the top trends we feel you need to stay abreast of in 2024.

Video Marketing: When it comes to grabbing attention and driving conversion, video marketing is at the top of the list. Including a video on your landing page can increase conversions. It also significantly contributes to your SEO, making your pages more discoverable.

Video will likely prove central to e-commerce retailers’ marketing strategies in 2024. Consumers want to see high-resolution 360° surround views of the product, see it being set up, being used and more.

Video is the medium that helps you meet those expectations.

Social Media Marketing: Studies show there are more than 150 million new social media users daily, or roughly 410,000 unique users. Social media use has accelerated at a stunning pace as new generations appear on the scene. As a result, social media marketing will continue to be a top marketing trend in 2024.

Customizing marketing strategies for each platform will be crucial. Short-form video is incredibly popular on TikTok, Snapchat, YouTube Shorts and Instagram Reels. LinkedIn is good for reaching out to business professionals and capturing B2B leads. Including subtitles to social videos is a good idea since they’re often set to auto-play on mute. You want to ensure you create content that resonates with current consumer buzz. Your marketing campaigns can capitalize on these by running similar themes, using hashtags to improve visibility.

Personalization: It’s a safe bet that personalization will likely be a standout marketing trend in 2024. If you’re unfamiliar with the term in marketing, personalization implies customizing content, products, offers and communication for individual users based on their demographics and behavior. The goal is to make content that can ‘speak to’ the user and provide a human touch amid the gen-

eralized content consumers are subjected to daily. You will often see this with the use of celebrity endorsements.

Artificial Intelligence (AI): This has taken the world by storm since the popularization of generative AI. It’s easy to see why it’s such a top marketing trend for 2024; its accessibility has proven a real game changer for companies and consumers alike. Businesses see real value in integrating AI to help automate and simplify tasks while cutting down on workforce requirements. An estimated 70% of marketers have used it for article writing and content generation. The reported breakthroughs in artificial general intelligence (AGI) will likely increase interest in this technology.

Email Marketing: This is among the most powerful marketing strategies in 2024. Studies show it offers outstanding ROI and can prove transformative in building customer relationships and improving lifetime value. You can expect an increase in brands offering newsletter subscriptions to their customers. Email marketing is an excellent way to capture a lead when a website visitor isn’t ready to purchase. By creating valuable content,

you can make a community that facilitates user-led growth for your business.

Mobile Optimization: With more than 67% of people using mobile devices, you’re missing out on many potential customers if your website isn’t optimized

It’s a safe bet that personalization will likely be a standout marketing trend in 2024.

for mobile. A key point to remember is the limited screen space and how this affects how you design your navigation.

‘Hamburger menus’ are much more mobile-friendly than navigation bars. It also affects your text-to-image ratio, heavily tilting the scales in favor of the latter.

Essentially, you want to deliver a seamless user experience that offers the same convenience as a person browsing on a desktop.

Voice Search: This has long been an emerging marketing trend and 2024 will only accelerate its adoption. With voice search users and the proliferation of intelligent assistants like Alexa and Google Home, businesses will have to rethink how they create their content. Voice queries tend to be much more colloquial and feature long-tail keywords. You may also want to use keyword phrasing to optimize your site for voice search better and have it featured higher in search results.

Digital marketing is an ever-changing platform on what’s trending. Creating a specific strategic plan and calendar will keep you on track to reach your 2024 marketing goals. Seeking the advice of a professional marketing firm is recommended as you navigate these waters to make the best use of your budget.

Marsha Stratton is the owner of Idea Stream, a full-service marketing firm specializing in websites, media strategy, public relations and social media. It has been helping businesses grow for 25-plus years; idea-stream.com

26 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

From left to right, seated: Gina Stein (Munson), Coni Taylor (TCAPS), Jim DeMarsh (Mission Restaurant Group).

Left to right, standing: Tifini McClyde-Blythe (Interlochen), Tim Norman (Grand Traverse Resort), Rob Hanel (TentCraft). Photos by Madi Taylor

THE PEOPLE PROBLEM Local employers talk challenges and strategy

Roundtable participants:

By Art Bukowski

Rob Hanel, Director of People and Space at TentCraft and President of the Traverse Area Human Resource Association Tifini McClyde-Blythe, Associate Vice President of Human Resources at Interlochen Center for the Arts Gina Stein, Manager of Talent Acquisition Operations at Munson Healthcare Coni Taylor, Associate Superintendent for Labor Relations and Legal Services at TCAPS Jim DeMarsh, Area Manager for the northern unit of Mission Restaurant Group (North Peak, Blue Tractor, etc.)

Tim Norman, General Manager of Grand Traverse Resort & Spa

Walk down the main drag in any local community and talk with small business owners. Call up the leaders of some of the region’s largest employers. Head over to the kitchen or dining room of virtually any restaurant, anywhere.

Everybody’s talking about one thing: Staffing.

There is without question no hotter topic with businesses of all shapes and sizes these days than the need for employees. For many companies and organizations, the workers who left during and after the COVID-19 pandemic simply haven’t returned, and it’s leading to substantial problems.

Some outfits with years of stability are now scrounging to find the bare mini-

mum to even remain in business. Others are in much better shape, but very few can say with confidence that they’re fully comfortable with their staffing levels. The question is…why?

The TCBN recently formed a roundtable with human resources professionals and other business leaders to discuss this issue and figure out where we are and where we’re going from here. While many positions are going remote, we focused our discussion on positions that require a physical presence at the place of employment.

First things first It should surprise precisely no one that housing and childcare are the first things mentioned when these professionals are

Homa asked about the challenges of hiring and retaining staff.

These issues have been near or at the top of the list for many years prior to COVID, but a tremendous surge in housing prices combined with record low inventory/availability has brought that problem to a boiling point. This issue looms the largest for positions in which there is a limited local talent pool.

“Depending on the starting wage, it’s getting more difficult for someone relocating to our area,” said Gina Stein, manager of talent acquisition operations for Munson Healthcare. “It’s a big barrier.”

Jim DeMarsh, area manager for the northern unit of Mission Restaurant Group, says that housing is “totally unaffordable” for staff in his industry.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

27

HIRING & RECRUITING

“Everybody wants to feel this real connection.

We are hearing that loud and clear.”

– Gina Stein, Manager of Talent Acquisition Operations, Munson Healthcare “It’s one of the biggest issues, if not the biggest issue,” he said.

The housing crunch often leads to candidates being discouraged from applying for (or even backing out of) jobs that they might really want, but can’t make work.

“We’ve had teachers accept jobs, come up for a weekend to find housing, and

then turn around and say ‘Sorry, I can’t accept the position,’” said Coni Taylor, the associate superintendent for labor relations and legal services at TCAPS. It’s not just a problem for those trying to relocate. Workers who already live here also are getting priced out.

“I’ve had people that had to leave and

go to Cadillac because it was somewhere that they could afford to live, and then consequently couldn’t make the commute from there to Traverse,” DeMarsh said.

“There’s a lot of people we employ who don’t have licenses or cars for one reason or another, so proximity is huge.”

A big difference between now and a

few years ago is that housing (and other) costs have skyrocketed while wages have increased, but not by enough to keep up.

“The $17-$20 an hour employee, which I have a ton of, simply cannot afford an apartment with all the other expenses they’re going to have up here,” said Tim Norman, general manager of the Grand Traverse Resort & Spa. “We can’t recruit…because nobody’s going to get in a car and drive up here when they can pay less to live downstate. You cannot get them here.”

Norman and others said this issue is not isolated to entry level or low-paying jobs. Other factors are at play, including mortgage interest rates that have more than doubled after record lows.

“Even if you’re looking at people at the executive level, it just might not make sense for them,” he said. “If I’m trying to recruit someone and they’re going from 2.5% to 6.5 or even 8%, they’re going to look at that and think really hard before they move.”

The lack of (and cost) of childcare is a huge problem, all attendees said. The issue is exacerbated by childcare providers themselves struggling to find bodies, creating a vicious cycle with no end in sight.

As with housing, this leads to potential employees turning down or leaving jobs under childcare-induced duress.

“I’ve heard people say that by the time

SAVE BEES. DRINK MEAD.

SIMPLY DELICIOUS! Join Us For A Foodie Celebration

MEAD•BEER•WINE•FOOD LIVE MUSIC•EVENT SPACE DISC GOLF•PRIVATE PARTIES SCAN FOR EVENTS HOLIDAY PARTIES

RESTAURANT WEEK February 25 – March 2, 2024 Make Your Reservations Today!

& MUSIC LINEUP

841 S PIONEER RD•BEULAH, MI 49617 STAMBROSECELLARS.COM • 231.383.4262

For more info: Downtowntc.com

28 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

they pay childcare expenses, they’re working for nothing, so they might as well stay home and raise their own children,” Taylor said. “And we would love to offer more extended day childcare options for our staff and for our families, but we can’t staff it.

We have the postings up constantly.”

It’s a problem impacting all industries, but arguably hits service industry workers hardest.

“It comes down to someone saying ‘Do I pick up this shift to make X amount of dollars while I pay someone to watch my child, or do I just stay at home?’” DeMarsh said.

The region’s relative lack of diversity was also listed as a challenge for attracting out-of-area talent, along with other companies offering remote work that siphons bodies away from local employers. Then there’s the fact that most local employers are competing against other employers for the same talent pool for non-specialized positions. And while this isn’t a current challenge, many local industries are bracing for the impending wave of Baby Boomer retirements, especially with professional staff.

“We have a large number of staff members who are eligible for retirement,” Taylor said. “So there’s this huge concern of when is that bubble going to burst, and when those folks leave, how will we go about replacing them?”

“If you’re not committed daily to reinforcing your culture and making sure you’re a good place to work, and letting employees know this is where they should be and that you do care about them, you’re in trouble.”

– Tim Norman, GM, Grand Traverse Resort & Spa Last, nearly everyone at the table said they’ve seen a generational shift in which young people, for one reason or another, are not working as prolifically as they did in years past. This is likely a large factor in the overall dearth of available workers, particularly for hospitality and other related industries.

Thank you for another record-breaking year!

• Top 1% of Realtors Worldwide • 11th Top Producing Agent in Northern Great Lakes REALTORS® MLS • $30,000,000+ in Sales • 61+ Transactions • Voted Best Realtor in the Record Eagle “Simply the Best” contest for the fifth year in a row

“That younger demographic, which is a big, big portion of our staff, are not being encouraged by their parents to get out and get that first job,” DeMarsh said. “It used to be that every spring all the kids would come in and you could sift through and pick out who you want, but … I’m just not seeing the young people as much as I used to.”

Just pay them more…right?

If housing and childcare aren’t affordable, it would seem the simple solution is to increase wages. Employers say they’re actually doing so on a relatively drastic level, but there are limits to how high they can go. That’s in large part because their

ANNUAL MEDICAL PROFESSIONAL SALE

SAVE 20% *

THE ENTIRE MONTH OF FEBRUARY

All made possible by your trust and confidence in me.

ANN PORTER

ASSOCIATE BROKER / REALTOR

231.944.4959

*PLEASE PROVIDE PROOF OF EMPLOYMENT IN MEDICAL INDUSTRY. VALID ON REGULAR PRICED MERCHANDISE. SOME EXCLUSIONS MAY APPLY.

Ann@AnnPorterTC.com

Find detailed listing information at www.AnnPorterTC.com 521 Randolph Street, Traverse City, MI 49684

144 E FRONT STREET TRAVERSE CITY, MI 49684 PLAMONDONS.COM

MON 9-5 TUE-SAT 9-6 SUN 11-4

e loys of he

desne it as

-

and ew eptut for e rep,

ed Tayn d g

e.”

ue. d ble

or ee msed

m-

e to re y man

on

the y n’t y n o

ed no ment

olds l n ith, nce art-

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

expenses across the board have ballooned workers in terms of pay, flexibility and in the past few years. more. But with this discussion comes “All of us in business, our margins at certain uncomfortable truths about the the bottom line have shrunk…We’re paycurrent balance of power between employing so much more, not just in payroll, but ers and employees, particularly in terms of also in benefits and insurance,” Norman expectations and employee morale in the said. “That’s the hidden one nobody long run. wants to talk about. If you go around the Employers are in many instances so desroom, all our insurance costs have gone perate for bodies that they’ll take anyone up astronomically in the past few years.” they can get – “feel for a pulse and give it And it’s more than payroll and benefits. a shot,” as DeMarsh put it – but this has “We recently did an exercise where I led to problems with long-term, quality asked my managers to go through and employees who are rankled by their emlook at how the cost of everything they ployers’ duress-based tolerance. buy has changed over five years,” Norman “We have to uphold our standards, and said. “They’re spending 30, 40, and in it’s been very, very difficult in the last few some cases 50% more for supplies.” years to do that, in terms of what’s acceptAnd there are other factors that lead to able and what isn’t,” DeMarsh said. “But squeamishness when it comes to continyou have to look at the emotional cost for “WeRob have to bepresident really careful about what we do,employees, becauseand we’re ued raises.

Hanel, of people your steadfast make sure and space ata TentCraft andand president of go backwards. they see us acting in amanufacturing way that doesn’t resetting precedent, you can’t These thejobs Traverse Area Human Resource don’t in Traverse City that wereAssoin that ward $12 people to $15who range arewant nowtoinshow the up, ciation, said employers need to walk a fine or don’t want to work when they do.” to $20 range, and then next year they’re going that to be $20is to $25, line$15 in that regard.

Taylor agrees there a growing “Wewe have to betoreally careful morale problem. and have think very about carefully about whether or not we can keep it what we do, because we’re setting a “There’s just up when or if the market softens.”a lot more grace provided precedent, and you can’t go backwards,” because we can’t afford to lose folks,” Tay– Rob Hanel, Director of People and Space, TentCraft he said. “These manufacturing jobs in lor added. “And that’s really hard when Traverse City that were in that $12 to $15 people who are coming in every day and range are now in also the $15 to that $20 employrange, giving it their are seeing getting Shifting values mean “If it’s goingall down, why? Iffolks it’s going and then next year they’re going to be $20 away with more than they have would ers may need to readjust what they expect up, why? You can correlate the things to $25, and we have think very carefully you’re have in the past it’s a big morale issue.” from workers over thetolong term. doing as an–organization.

People about whether or not we can keep (it up) There are other big disconnects in “I don’t want to overgeneralize, but can leave notes, too,” he said. “It’s just when if thesee market softens.”in which regard to advancement and worker you justordon’t the situation something consistent to measure howvalue. your Then there’s the matter of the inflexNorman and others said they’ve noticed they want to be with this one employer for employees feel about your organization.” ibility employers face,Taylor either a trend unsustainable unreasonable 30 yearsthat andcertain get that gold watch,” Whileofthings have beenorvolatile since due to their funding or their inability to expectations from some employees and said. “If you polled the Baby Boomers, the pandemic, the consensus is it’s probawork one-on-one with individual employpotential hires in the wake of COVID. their goal was stability. If you poll younger bly too soon to say which trends are here ees dueit’s to union or other restrictions.

The growing push for more money, for people, flexibility and freedom.” to say.

“We’re funded by taxpayer dollars, and one, can went be troubling the but employee Wages up, for when example, more than 80% of our revenue already goes is not adding any more value and anoff emRetention and the future there’s now a growing push to back out to personnel expenditures. So there’s ployer is increasingly pinched by increased on that front. Remote work was hot and not a lot ofsome additional wiggle room,” Taylor heavy costs across the board.

Despite tensions regarding expecfor a while, but that trend is also said.

“I’ve worked in multiple districts, and “They have this built-in mentality tations, employers are working hard to keep regressing to a degree.

Anecdotal datacomwe have some of the best teachers I’ve ever ing out of COVID that this is my minicurrent staff in place. After all, just as it costs also suggests that the worker merry-goworked with.

If I had it, I’d love to give it to mum value, you’ve got to at least get me to five times more to get a new customer than round is starting to slow down. The dust, them, but it’s just not there.” here…but now they’re getting 30% more to keep one, employers realize their best bet as it were, still needs to settle.

Some are starting their than they were years ago,what and they is likely toemployers keep and develop staffto–give especial“I don’t thinka few we’re seeing the employees what’s known as a total compenhaven’t done anything different,” ly when the recruiting situation is so dire. new norms are with what’s going Norman on sation statement, breaks down anis said. “We’re paying more but we’re not Munson’s Steinwhich said her organization post-COVID,” McClyde-Blythe said. employee’s benefits and perks in monetary getting any more skillset.” spending a “ton of time and effort” on re“These things have been changing over terms. An employee whoon is finding nominally makmore,ofemployers areit’s increastention.

They’re focused ways for theWhat’s past couple years, and been a ing $50,000, for instance, can easily see that ingly gun shy about pulling the trigger on employees to feel more genuinely connected moving target.” they’re more than more pay in what has become andigging arms with thegetting organization.

That$60,000-80,000 includes clearly Employers themselves are also once retirement benefits, health insurance race of sorts. outlining paths for growth and advancein their heels in some regard, which is and other included.

“I pay the salary, I’m eating some of the ment, new items rewardare and recognition prolikely to shift some patterns.

And while that health care contribenefits, my margins thin,where so I really grams, better wellness programs and more.

“We’re all reaching are a point we bution isn’t going to help an employee need that loyalty,” Norman said. don’t “Everybody wants to feel this real concan’t do this anymore to just have“Ia body,” afford a house, it still“We might want to invest everything that everybody nection,” Stein said. are prevent hearing them that Norman said. “It’s got to be somebody from chasing another job that pays a few wants us to invest in the employee, then loud and clear.” who’s going to (fit and do the job well).” more dollars on the front end. have them run down the street…for two Employers also say workers aren’t interIn the Traverse City region, employers “I’ve had people say to me, ‘Wow, I’m dollars more an hour.” ested in lip service in terms of culture. It’s will do the best they can while keeping making that much?

There also are generational shifts at something that needsI’m to kind be at of thesurtop of a somewhat uneasy eye on continued prised,’” said Tifini McClyde-Blythe, assoplay, which may or may not be connected the list and relentlessly pursued. growth in the face of these employment ciate vice president of human resources at to or exacerbated by COVID. Though no “If you’re not committed daily to challenges.

Interlochen Center for the Arts.

“Comone wants to denigrate young people, emreinforcing your culture and making sure “It’s very nerve-wracking decision to munication critical.

We’reand investing ployers aremore noticing streaksgo of in…especialentitlement you’re a goodisplace to work, lettingin a just watch businesses lot of things, and they need to understand with those just entering the workforce. employees know this is where they should ly when we’re already fighting (for employwhat “We’re not getting the 18, 19, 20-year-olds be andthat thatinvestment you do careis.” about them, ees),” Norman said. “The number of hotel to come into the business in the line level you’re in trouble,” Norman said. rooms about to go in this marketplace Give and takesampling satisfaction is a and way up through,” Norman Consistently in thework nexttheir 24 months is astronomical. said.

“They’re walking in the door and with, good way to keep your fingers on the pulse, Where are you going to get the people?

Because it’s been hard to get and keep again, very little skillset or actual experience Hanel said. TentCraft regularly polls emBecause all you’re going to do is rob Peter workers, employers also giving a and ployees to area obtain a generalare satisfaction score. to payasking Paul.”to be put in charge of the departlot of thought to their relationship with ment. And I’m like, ‘Holy crud.’”

FEBRUARY 2024

29

HIRING & RECRUITING

Right coverage.

Right price.

Right here in town.

Todd Hart Insurance Agency Inc Todd Hart CPCU ChFC CLU, Agent agent@toddhart.net www.toddhart.net Bus: 231-946-8790 Fax: 231-946-0822

Here’s the deal. The right insurance should help you feel confident and comfortable. I’m the right good neighbor for that. Call me today.

Like a good neighbor, State Farm is there.®

State Farm Bloomington, IL 2001290

Don’t Wait - Book YOUR date at

“We have to be really careful about what we do, because we’re setting a precedent, and you can’t go backwards. These manufacturing jobs in Traverse City that were in that $12 to $15 range are now in the BUSINESS OR PERSONAL $15 to $20 range, and thenFeatures next year they’re going to be $20 to $25, include: | Unique event spaceabout and covered patio |or not we can keep it and we have very carefully whether dto think owne | Inspiring conference room with connecting deck | y l l up when or if the market softens.” | State-of-the-art technology | Loca – Rob Hanel, Director of People and Space, TentCraft Personalized service, attention to

detail and just plain fun people to help

ra in fo

tour

Shifting values also meancoordinate that employgoing down, and execute “If yourit’s event.

Stopwhy? If it’s going ers may need to readjust what they expect up, why? You can correlate the things from workers over the long term. you’re doing as an organization. People “I don’t want to overgeneralize, but can leaveusnotes, Contact today!too,” he said. “It’s just you just don’t see the situation in which something to| kristal@highimpactnow.com measure how your | 231.649.6347 Kristal Flateauconsistent | judy@highimpactnow.com Judy Harrison they want to be with this one employer for employees feel| 231.620.6246 about your organization.”

30 years and get that gold watch,” Taylor While things have been volatile since said. “If you polled the Baby Boomers, the pandemic, the consensus is it’s probatheir goal was stability. If you poll younger bly too soon to say which trends are here people, it’s flexibility and freedom.” to say.

Wages went up, for example, but Retention and the future there’s now a growing push to back off on that front. Remote work was hot and Despite some tensions regarding expecheavy for a while, but that trend is also tations, employers are working hard to keep regressing to a degree. Anecdotal data current staff in place. After all, just as it costs also suggests that the worker merry-gofive times more to get a new customer than round is starting to slow down. The dust, to keep one, employers realize their best bet as it were, still needs to settle. is likely to keep and develop staff – especial“I don’t think we’re seeing what the ly when the recruiting situation is so dire. new norms are with what’s going on Munson’s Stein said her organization is post-COVID,” McClyde-Blythe said. spending a “ton of time and effort” on re“These things have been changing over tention. They’re focused on finding ways for the past couple of years, and it’s been a employees to feel more genuinely connected moving target.” with the organization. That includes clearly Employers themselves are also digging outlining paths for growth and advancein their heels in some regard, which is ment, new reward and recognition prolikely to shift some patterns. grams, better wellness programs and more.

“We’re all reaching a point where we “Everybody wants to feel this real concan’t do this anymore to just have a body,” nection,” Stein said. “We are hearing that Norman said. “It’s got to be somebody loud and clear.” who’s going to (fit and do the job well).”

Employers also say workers aren’t interIn the Traverse City region, employers ested in lip service in terms of culture. It’s will do the best they can while keeping something that needs to be at the top of a somewhat uneasy eye on continued the list and relentlessly pursued. growth in the face of these employment “If you’re not committed daily to challenges. reinforcing your culture and making sure “It’s very nerve-wracking decision to you’re a good place to work, and letting just watch more businesses go in…especialemployees know this is where they should ly when we’re already fighting (for employTRAVERSE CITY PLYMOUTH be and that you do care about them, ees),” Norman said. “The number of hotel Curtis D. Kuttnauer Fred Manuel you’re in trouble,” Norman said. rooms about to go in this marketplace (734)is320-6667 Consistently sampling satisfaction is a(231) 922-9380 in the next 24 months astronomical. good way to keep your fingers on the pulse, Where are you going to get the people? www.goldencircleadvisors.com Hanel said. TentCraft regularly polls emBecause all you’re going to do is rob Peter Your Local Business Broker info@goldencircleadvisors.com ployees to obtain a general satisfaction score. to pay Paul.”

Commute Before Selling Commute After Selling

Realize your dream by selling your business at the highest price.

30 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

expenses across the board have ballooned in the past few years.

“All of us in business, our margins at the bottom line have shrunk…We’re paying so much more, not just in payroll, but also in benefits and insurance,” Norman said. “That’s the hidden one nobody wants to talk about. If you go around the room, all our insurance costs have gone up astronomically in the past few years.”

And it’s more than payroll and benefits.

“We recently did an exercise where I asked my managers to go through and look at how the cost of everything they buy has changed over five years,” Norman said. “They’re spending 30, 40, and in some cases 50% more for supplies.”

And there are other factors that lead to squeamishness when it comes to continued raises. Rob Hanel, president of people and space at TentCraft and president of the Traverse Area Human Resource Association, said employers need to walk a fine line in that regard.

“We have to be really careful about what we do, because we’re setting a precedent, and you can’t go backwards,” he said. “These manufacturing jobs in Traverse City that were in that $12 to $15 range are now in the $15 to $20 range, and then next year they’re going to be $20 to $25, and we have to think very carefully about whether or not we can keep (it up) when or if the market softens.”

Then there’s the matter of the inflexibility that certain employers face, either due to their funding or their inability to work one-on-one with individual employees due to union or other restrictions.

“We’re funded by taxpayer dollars, and more than 80% of our revenue already goes out to personnel expenditures. So there’s not a lot of additional wiggle room,” Taylor said. “I’ve worked in multiple districts, and we have some of the best teachers I’ve ever worked with. If I had it, I’d love to give it to them, but it’s just not there.”

Some employers are starting to give their employees what’s known as a total compensation statement, which breaks down an employee’s benefits and perks in monetary terms. An employee who is nominally making $50,000, for instance, can easily see that they’re getting more than $60,000-80,000 once retirement benefits, health insurance and other items are included.

And while that health care contribution isn’t going to help an employee afford a house, it still might prevent them from chasing another job that pays a few more dollars on the front end.

“I’ve had people say to me, ‘Wow, I’m making that much? I’m kind of surprised,’” said Tifini McClyde-Blythe, associate vice president of human resources at Interlochen Center for the Arts. “Communication is critical. We’re investing in a lot of things, and they need to understand what that investment is.”

Give and take Because it’s been hard to get and keep workers, area employers are also giving a lot of thought to their relationship with

workers in terms of pay, flexibility and more. But with this discussion comes certain uncomfortable truths about the current balance of power between employers and employees, particularly in terms of expectations and employee morale in the long run.

Employers are in many instances so desperate for bodies that they’ll take anyone they can get – “feel for a pulse and give it a shot,” as DeMarsh put it – but this has led to problems with long-term, quality employees who are rankled by their employers’ duress-based tolerance.

“We have to uphold our standards, and it’s been very, very difficult in the last few years to do that, in terms of what’s acceptable and what isn’t,” DeMarsh said. “But you have to look at the emotional cost for your steadfast employees, and make sure they see us acting in a way that doesn’t reward people who don’t want to show up, or don’t want to work when they do.”

Taylor agrees that there is a growing morale problem.

“There’s just a lot more grace provided because we can’t afford to lose folks,” Taylor added. “And that’s really hard when people who are coming in every day and giving it their all are seeing folks getting away with more than they have would have in the past – it’s a big morale issue.”

There are other big disconnects in regard to advancement and worker value.

Norman and others said they’ve noticed a trend of unsustainable or unreasonable expectations from some employees and potential hires in the wake of COVID. The growing push for more money, for one, can be troubling when the employee is not adding any more value and an employer is increasingly pinched by increased costs across the board.

“They have this built-in mentality coming out of COVID that this is my minimum value, you’ve got to at least get me to here…but now they’re getting 30% more than they were a few years ago, and they haven’t done anything different,” Norman said. “We’re paying more but we’re not getting any more skillset.”

What’s more, employers are increasingly gun shy about pulling the trigger on more pay in what has become an arms race of sorts.

“I pay the salary, I’m eating some of the benefits, my margins are thin, so I really need that loyalty,” Norman said. “I don’t want to invest everything that everybody wants us to invest in the employee, then have them run down the street…for two dollars more an hour.”

There also are generational shifts at play, which may or may not be connected to or exacerbated by COVID. Though no one wants to denigrate young people, employers are noticing streaks of entitlement with those just entering the workforce.

“We’re not getting the 18, 19, 20-year-olds to come into the business in the line level and work their way up through,” Norman said. “They’re walking in the door and with, again, very little skillset or actual experience and asking to be put in charge of the department. And I’m like, ‘Holy crud.’”

“We have to be really careful about what we do, because we’re setting a precedent, and you can’t go backwards. These manufacturing jobs in Traverse City that were in that $12 to $15 range are now in the $15 to $20 range, and then next year they’re going to be $20 to $25, and we have to think very carefully about whether or not we can keep it up when or if the market softens.”

– Rob Hanel, Director of People and Space, TentCraft Shifting values also mean that employers may need to readjust what they expect from workers over the long term.

“I don’t want to overgeneralize, but you just don’t see the situation in which they want to be with this one employer for 30 years and get that gold watch,” Taylor said. “If you polled the Baby Boomers, their goal was stability. If you poll younger people, it’s flexibility and freedom.”

Retention and the future Despite some tensions regarding expectations, employers are working hard to keep current staff in place. After all, just as it costs five times more to get a new customer than to keep one, employers realize their best bet is likely to keep and develop staff – especially when the recruiting situation is so dire.

Munson’s Stein said her organization is spending a “ton of time and effort” on retention. They’re focused on finding ways for employees to feel more genuinely connected with the organization. That includes clearly outlining paths for growth and advancement, new reward and recognition programs, better wellness programs and more.

“Everybody wants to feel this real connection,” Stein said. “We are hearing that loud and clear.”

Employers also say workers aren’t interested in lip service in terms of culture. It’s something that needs to be at the top of the list and relentlessly pursued.

“If you’re not committed daily to reinforcing your culture and making sure you’re a good place to work, and letting employees know this is where they should be and that you do care about them, you’re in trouble,” Norman said.

Consistently sampling satisfaction is a good way to keep your fingers on the pulse, Hanel said. TentCraft regularly polls employees to obtain a general satisfaction score.

“If it’s going down, why? If it’s going up, why? You can correlate the things you’re doing as an organization. People can leave notes, too,” he said. “It’s just something consistent to measure how your employees feel about your organization.”

While things have been volatile since the pandemic, the consensus is it’s probably too soon to say which trends are here to say.

Wages went up, for example, but there’s now a growing push to back off on that front. Remote work was hot and heavy for a while, but that trend is also regressing to a degree. Anecdotal data also suggests that the worker merry-goround is starting to slow down. The dust, as it were, still needs to settle.

“I don’t think we’re seeing what the new norms are with what’s going on post-COVID,” McClyde-Blythe said.

“These things have been changing over the past couple of years, and it’s been a moving target.”

Employers themselves are also digging in their heels in some regard, which is likely to shift some patterns.

“We’re all reaching a point where we can’t do this anymore to just have a body,” Norman said. “It’s got to be somebody who’s going to (fit and do the job well).”

In the Traverse City region, employers will do the best they can while keeping a somewhat uneasy eye on continued growth in the face of these employment challenges.

“It’s very nerve-wracking decision to just watch more businesses go in…especially when we’re already fighting (for employees),” Norman said. “The number of hotel rooms about to go in this marketplace in the next 24 months is astronomical.

Where are you going to get the people?

Because all you’re going to do is rob Peter to pay Paul.”

TRAVERSE CITY BUSINESS NEWS

Exactly where you should meet.

There’s a little bit of magic when we come together in a place like Traverse City.

Where meetings have purpose, people have connection, and business has direction.

We can help put it all together...

TraverseCity.com/meetings

FEBRUARY 2024

31

32 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

LABOR PAINS Where does organized labor stand in NoMi?

By Craig Manning Unions, strikes, and labor negotiations: These things dominated the headlines in 2023.

Two major Hollywood unions – the Screen Actors Guild and the Writers Guild of America – went on strike concurrently, a phenomenon not seen since 1960. Seventy-fiv thousand workers for the California-based health system Kaiser Permanente walked off the job, staging the largest health care strike in American history. The International Brotherhood of Teamsters brokered

a new contract for approximately 340,000 UPS, narrowly avoiding what would have been the biggest labor strike to happen in the United States in 60 years.

All told, Cornell University’s Labor Action Tracker reported some 400 strikes in 2023, with more than half a million workers participating.

The many strikes and near-strikes meant that unions were front and center in the nationwide discourse last year.

And while coverage and conversation around unions tends to quiet down – or

Traverse City Educators Association The union: The Traverse City Education Association (TCEA) is a union made up of teachers at Traverse City Area Public Schools (TCAPS). According to Chandra Fles, a fourth-grade teacher at Cherry Knoll Elementary School and the TCEA’s current president, the union represents more than 400 members from across TCAPS schools.

Ongoing member engagement: The TCEA is steered by a four-member leadership team – a president, vice president, treasurer, and secretary – who meet twice monthly with a large board of directors that includes one associate representative from each school building in the TCAPS district. Beyond that inner circle, TCEA hosts regular social gatherings and celebrations with its full membership, among other ongoing engagement efforts.

Current contract: TCEA’s current union contract with TCAPS runs from Sept. 1, 2023 to Aug. 31, 2026.

Most recent negotiation: “In the past two years, the TCEA and the district sat down during ‘meet and confer’ and negotiated certain aspects of the contract,” Fles said.

“Meet and confer” sessions, which TCAPS does with all its unions, allow those bodies to meet with the district to discuss contract items on a yearly basis without going into full negotiations. Often, those sessions lead to contract tweaks and extensions, which helps widen the gap between more effortful labor negotiations.

“For example,” Fles continued, “in the first year, we negotiated changes to the salary steps for beginning teachers; then, last year, we negotiated changes to the salary steps for experienced teachers. During these negotiations, the TCEA was also able to improve dental care for teachers. These changes were well received when the general membership voted.”

Emerging priorities: While the TCEA won’t sit down at the bargaining table with TCAPS again until the spring of 2025, Fles says there are already some emerging issues that will likely factor heavily into those discussions.

“There have been several recent changes to state law that impact the teaching profession,” Fles said, pointing specifically to “changes to the laws in regard to teacher evaluations” in Michigan.

The new legislation, which Gov. Gretchen Whitmer signed into law in November, reduces “the weight of student performance on standardized tests when evaluating teachers,” the Detroit Free Press reports. It also eliminates the usage of teacher evaluations in making decisions to grant tenure to, promote, or retain teachers.

While the new laws set certain rules around evaluations, though – standardized tests can’t be weighted more than 20% in teacher evaluations, for example, and other metrics of “student growth, assessment data, and student learning objectives” must be factored in – it also leaves it up to school systems and teachers unions to work out exactly how to structure the evaluation formula in their districts.

“The district has proactively reached out to the TCEA to begin discussions around this issue,” Fles said of the shifting landscape around teacher evaluations,

cease entirely – when strikes or labor negotiations aren’t in progress, the truth is that labor unions are constantly meeting, engaging with their members, monitoring labor conditions, and preparing for the next contract negotiation.

The strike-centric 2023 got us wondering: What are northern Michigan’s biggest unions, and what does life look like for those unions and their leaders during the “peacetime” periods that extend between contentious, widely-reported contract negotiations?

“There are some active union members

in automotive, Teamsters, and utility work (in northern Michigan), but not very significant in numbers,” said Traverse Connect President Warren Call, when asked about the region’s union landscape.

“The biggest union groups active here are the nurse’s union, the NMC faculty union, and the teacher’s union.”

The TCBN connected with those three unions – as well as with the local school administrator’s union – to get a better understanding of how northern Michigan’s top unions operate.

The TCEA and TCAA are both unions of TCAPS employees.

adding, “(w)e are excited at the prospect of adjusting the evaluation system that encourages and supports high-quality instruction for all students.”

Fles also expects a statewide teacher shortage will prove to be a major factor of the next negotiation cycle.

“It is going to be very important that TCAPS and the TCEA work together to attract and retain talented teachers,” she said. “Our system of education does not work unless there are teachers available to work with students…It is our hope that TCAPS and the TCEA can create a system to attract and retain teachers through contract negotiations.”

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

33

HIRING & RECRUITING Traverse City Administrators Association The union: The Traverse City Administrators Association (TCAA) is the collective bargaining unit of TCAPS administrators, a group that includes building principals, athletic principals and athletic directors. According to Dan Tiesworth, building principal at East Middle School and TCAA’s current president, the TCAA only has “30ish” members, but is a rarity because most school districts in the state aren’t even big enough to have a principals union.

“Technically, we’re an association, not a union, because unlike TCEA – which has the National Education Association that they’re associated with – we don’t have a national union backing,” Tiesworth explained. “There are some principal unions in the state, but it’s a pretty rare thing, because you need a very large district in order to create that association.”

Ongoing member engagement: Per Tiesworth, the TCAA has a five-member board that meets monthly. The association also typically has quarterly virtual meetings that involve the entire 30-plus-member group. Beyond the local team, TCAA encourages members to join larger statewide associations – such as the Michigan Association of Secondary Principals – in order to have access to professional development opportunities, legal support, and other benefits those bodies offer to their members.

Current contract: TCAA’s current contract with TCAPS runs from July 1, 2023 to June 30, 2026.

Most recent negotiation: “Last year was just a ‘meet and confer,’” Tiesworth said of the most recent contract talks between TCAPS and TCEA. Top-line items for that negotiation, he notes, were the usual suspects for administrator contracts: health insurance coverage for administrators and their families, salary raises to keep up with inflation, and legal coverage.

Emerging priorities: “Ours would be stuff around retirement,” Tiesworth said when asked what issues he expects will be top of mind when the TCAA next sits down with TCAPS. “There’s been a big change with how the state’s Office of Retirement Services (ORS) handles retirements of administrators.” Previously, Tiesworth explains, the ORS used a formula that based pensions on an administrator’s top three years in terms of salary, as well as on number of years of service.

“Now, the ORS has recently come out and said ‘We’re actually going to use the first year of your administration (to calculate your pension),” Tiesworth said. “And that’s very impactful.”

Coffia Jessie Houghton (building principal at Central High School), Biz Ruskowski (who retired at the end of 2023 as building principal of Eastern Elementary), and Dan Tiesworth (building principal at East Middle School and TCAA president).

Things get complicated with associations like the TCAA, he added, because of how they split and schedule out pension payments ahead of time, rather than defaulting to the “lump sum payments at the end of their career” that Tiesworth says most administrators get. As a result, there is some debate at the state level right now as to whether the new ORS rules will even apply to union or association members.

“So, I’m not sure about how that would impact our next contract, but it would definitely be something to look at,” Tiesworth said of the new pension structure.

ELEVATE YOUR NEXT MEETING Located in the heart of Traverse City, Delamar is perfectly placed to accommodate your group and provide access to the region’s best entertainment and attractions. With our multiple flexible event spaces, attentive services and experienced catering team, we strive to make your event a resounding success.

Start the conversation: dtc-sales@thedelamar.com | 231-421-2122

DELAMAR.COM

34 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING Northwestern Michigan College Faculty Association The union: The NMC Faculty Association is a relatively new union. It wasn’t until 2015 that NMC professors began the process of unionizing. Nine years later, the union has negotiated multiple contracts for its membership, which numbers 70-80 faculty members. “Almost all of our faculty are dues-paying members of the union,” said union president Brandon Everest.

“But of course, we represent all of the faculty – union members or not – whenever we do any advocacy or negotiations at the table.”

Ongoing member engagement: “It does ebb and flow to some degree,” Everest said of the NMC union’s communication and engagement. “Our board meets regularly – especially during the school year – and by that I mean more than monthly. Our officers are more or less in continuous conversation with one another, and we’re also involved in a lot of different things on campus.

For instance, we’re representing faculty in everything from strategic planning to administrative national searches to campus safety.”

Current contract: The NMC Faculty Association last negotiated a contract two years ago, with its terms valid from Aug. 1, 2022 to July 31, 2025.

Most recent negotiation: “I think,

with most unions, the things that are always uppermost priorities tend to be benefits and pay,” Everest said. “So, we did work in the last contract to improve the ground for benefits around child care, and we are always tracing median pay for community college instructors in our state and factoring those benchmarks into our negotiating.”

Emerging priorities: As the NMC faculty union gears up for a new negotiation cycle next year, Everest pointed to two things that he’s eyeing as priorities right now: technology and demographics.

“You can definitely bet that faculty are very keyed in to the artificial intelligence space, and to what AI can and cannot do,” Everest said. “AI is certainly closely related to our work, and so, for the next year, as that technology and our understanding and interaction with it continue to develop, I’m sure that that will be involved (with our contract negotiations) in some way.”

“But I think it’s fair to say that that our top concerns are a little bit closer to home,” Everest continued. “There are certain demographic issues out there, with the number of children being born and the number of high school graduates in our area, where the number of folks coming into college age is getting less and less.

We know that will create an even more competitive environment for the college to operate in, and the college administra-

The NMC union represents the interests of 70-80 faculty members. tion and the faculty and staff are going to have to work together to make sure that we can take on those kinds of challenges.

We as a union will be actively defending faculty roles at NMC as the college looks to ‘right-size’ itself.”

HIRING & RECRUITING

Traverse City Munson Nurses Association The union: In 2017, registered nurses at Traverse City’s Munson Medical Center (MMC) unionized under the statewide Michigan Nurses Association, officially forming the Traverse City Munson Nurses Association (TCMNA).

Today, that union represents approximately 800 nurses at MMC, according to Shannon Gillespie, current union president. Notably, nurses at Munson Healthcare’s other hospitals are not a part of the TCMNA. Ongoing member engagement: During contract negotiation periods, the TCMNA meets monthly. In between contracts, the union shifts to a more relaxed every-other-month schedule – though union leadership still gets together more regularly.

“Every unit within the hospital has a steward who is appointed to be their department’s liaison for the contract,” Gillespie explained. That structure, he says, allows the union to stay up to date on the specific issues Munson’s nurses are dealing with locally in their units.

An executive council then works to synthesize those takeaways into a more unified view of what is going on throughout MMC – and what issues might need to be front and center during future negotiations.

Current contract: The TCMNA ratified its most recent contract just last spring – an agreement Gillespie said will go until March 2026.

Most recent negotiation: Key wins during last year’s negotiations included big wage increases and retention bonuses for experienced nurses, as well as the creation of a new staffing committee that includes nurse representation.

“Obviously, one of the big things with nursing across the entire country is staffing,” Gillespie said, noting that TCMNA worked “very hard” to institute staffing guidelines as part of its most recent contract. Such guidelines would have set defined nurse-to-patient ratios at MMC, among other rules.

“We were ultimately unsuccessful at getting enforceable staffing guidelines in our contract, but we did get Munson to agree to a staffing committee that meets every six months to discuss issues

SIMPLY DELICIOUS!

that are going on within the hospital,” is given to them every day. Figuring out Gillespie said. those staffing issues is nothing less than Emerging priorities: While TCMNA’s the preservation of our profession.” current contract won’t expire for more Gillespie says he’s worked with a than two years – and while a return to nurse for the past two years who has Join Us For A Foodie Celebration the bargaining table won’t even happen been a nurse about four years. until fall 2025 – Gillespie said he and “He’s already talking about getting out his fellow nurses are already talking of the profession, because he’s feeling so about how staffing issues will likely be burnt out. He’s feeling like he just can’t the top priority once again when the deliver the level of care that patients time comes to negotiate contract. 2, 2024 deserve,” Gillespie said. “So, we’re in February 25that – March “Staffing is probably going to conthis weird compounding cycle where, tinue toMake be the number priority for certainly, the resources are strapped, but Your one Reservations Today! nurses,” he said. “Right now, our nurses the problem is only going to continue to are feeling very strapped and very overworsen unless we can find some way to whelmed with the amount of work that ease the burden.”

RESTAURANT WEEK

For more info: Downtowntc.com

Most recent negotiation: “I think,

to operate in, and the college administra-

have to work together to make sure that we can take on those kinds of challenges.

faculty roles at NMC as the college looks to ‘right-size’ itself.”

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

35

HIRING & RECRUITING

Traverse City Munson Nurses Association The union: In 2017, registered nurses at Traverse City’s Munson Medical Center (MMC) unionized under the statewide Michigan Nurses Association, officially forming the Traverse City Munson Nurses Association (TCMNA).

Today, that union represents approximately 800 nurses at MMC, according to Shannon Gillespie, current union president. Notably, nurses at Munson Healthcare’s other hospitals are not a part of the TCMNA. Ongoing member engagement: During contract negotiation periods, the TCMNA meets monthly. In between contracts, the union shifts to a more relaxed every-other-month schedule – though union leadership still gets together more regularly.

“Every unit within the hospital has a steward who is appointed to be their department’s liaison for the contract,” Gillespie explained. That structure, he says, allows the union to stay up to date on the specific issues Munson’s nurses are dealing with locally in their units.

An executive council then works to synthesize those takeaways into a more unified view of what is going on throughout MMC – and what issues might need to be front and center during future negotiations.

Current contract: The TCMNA ratified its most recent contract just last spring – an agreement Gillespie said will go until March 2026.

Most recent negotiation: Key wins during last year’s negotiations included big wage increases and retention bonuses for experienced nurses, as well as the creation of a new staffing committee that includes nurse representation.

“Obviously, one of the big things with nursing across the entire country is staffing,” Gillespie said, noting that TCMNA worked “very hard” to institute staffing guidelines as part of its most recent contract. Such guidelines would have set defined nurse-to-patient ratios at MMC, among other rules.

“We were ultimately unsuccessful at getting enforceable staffing guidelines in our contract, but we did get Munson to agree to a staffing committee that meets every six months to discuss issues

that are going on within the hospital,” Gillespie said.

Emerging priorities: While TCMNA’s current contract won’t expire for more than two years – and while a return to the bargaining table won’t even happen until fall 2025 – Gillespie said he and his fellow nurses are already talking about how staffing issues will likely be the top priority once again when the time comes to negotiate that contract.

“Staffing is probably going to continue to be the number one priority for nurses,” he said. “Right now, our nurses are feeling very strapped and very overwhelmed with the amount of work that

is given to them every day. Figuring out those staffing issues is nothing less than the preservation of our profession.”

Gillespie says he’s worked with a nurse for the past two years who has been a nurse about four years.

“He’s already talking about getting out of the profession, because he’s feeling so burnt out. He’s feeling like he just can’t deliver the level of care that patients deserve,” Gillespie said. “So, we’re in this weird compounding cycle where, certainly, the resources are strapped, but the problem is only going to continue to worsen unless we can find some way to ease the burden.”

OUR COMMITMENT IS UNWAVERING Every day. Every night.

On holidays. On weekends. We’re dedicated to you and your loved ones. Dedicated to providing exceptional care, close to home.

We’re committed to ensuring excellence and improving lives.

And we’re committed to you.

Gary B. Rajah, MD Cerebrovascular Neurosurgeon

Learn more at:

munsonhealthcare.org/commitment

COMMITTED TO IMPROVING LIVES

36 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

A YEAR TO CELEBRATE 2023

$45M Total Sales Volume

First broker in our region to earn this prestigious designation

136

#1

Closed Transaction Sides

Commercial Office in Northern Michigan

#1

Commercial Agent Kevin Endres

Sign up to get 3W’s commercial real estate insights delivered to your inbox

We are the leading commercial real estate firm in northern Michigan. For 16 years, we’ve earned the trust of our clients, assisting them with buying, selling and leasing commercial properties.

THREEWEST.COM (231) 929-2955

COMMERCIAL REAL ESTATE is all we do

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

37

HIRING & RECRUITING

Call

Anderson

Baudry

Creative Coast a key toward growing working age population

By Ross Boissoneau Over the years, a number of media and other sources have touted the Traverse City area as one of the best places in America in which to retire. Recognition from the likes of Realtor.com, Forbes, AARP and CNN has fostered a move to the area for many age 50, 60 and up from across the country.

That has helped foster growth, but also accelerated the graying of the region. As part of an effort to increase the percentage of younger people moving to (or staying in) the area, Traverse Connect initiated the Creative Coast. It is a program designed to engage and attract those in the working population and their families.

The goal is to showcase the region to people who might not know about Traverse City, or dismiss it as too small or lacking in some way, in spite of it being named one of the best top “micropolitan” areas for new small businesses in the country, according to census data cited by marketing and media consultant Nate Shivar in an article posted by the Traverse City investment company Boomerang Catapult.

Micropolitan areas are those with a population between 10,000 and 50,000. They are areas that have too large a population to qualify as a rural area, and too few commuting ties to a larger city to qualify as part of a larger metropolitan area. Traverse City ranks #4 in the U.S. for startups.

That’s a great place to start. Indeed, Creative Coast notes these things on its website (MichigansCreativeCoast.com), but there’s more than just statistics. The site also includes a job board, a local guide, an entrepreneur’s tool kit, a freelance directory, a podcast series, networking group meet-ups and one-on-one mentoring opportunities.

Traverse Connect CEO Warren Call said the program’s genesis dates back fourplus years, as part of Traverse Connect’s strategic plan.

“One concern was Traverse City was regularly losing the prime age (population),” he said, specifically workers in their mid-20s to mid-30s.

Formally established in June 2020, the Creative Coast’s efforts have been helped by grant funding, including one from the Michigan Economic Development Corporation and the Michigan Film and Digital Media Office. Its most recent grant – $350,000 from the Michigan Community Enhancement program – will allow the program to continue to grow and expand, says Call.

“We’re still under the radar,” he said.

Call says that one of the keys is Northern Navigators, a mentorship and advisory program. Each navigator serves as an am-

when he took the reins from the retiring Diane Baribeau this summer. He says he continues to look to it as a tool, personally and professionally.

“I used it both before and after” moving here, he said. “I got hooked up with a Northern Navigator and that calmed some of my concerns about housing.”

While Lindsey says there’s no end to the websites and online resources providing information about the area, the oneon-one relationship with the Navigators sets it apart.

“I can turn to the same people for questions about the region,” Lindsey said, from finding a doctor or dentist to places to go.

While he did not apply for the position

“One concern was Traverse City was regularly losing the prime age (population).”

- Warren Call, President & CEO, Traverse Connect bassador to promote the area and answer questions from professionals in their 20s to 40s and beyond, providing a professional and personal network of support.

Max Anderson, an assistant vice president and commercial lender at Honor Bank, is one of the Northern Navigators and is listed as a resource for those interested in charitable organizations and volunteering, job-hunting, childcare/daycare and housing, among other things.

“Warren reached out to me, and it makes sense,” said Anderson, who has worked with a number of individuals since joining the program. “We talk about their goals, where to live … help them plug in.”

Chad Lindsey is one of those who has taken advantage of the program. The new executive director at the City Opera House moved here from New York City

based on its posting on the Creative Coast job board, he says he used it to see what kinds of jobs were being posted locally and the direction the market is headed.

“What’s on offer? Is it arts and tech? Or all healthcare?” he said.

He intends to continuing to take advantage of the resource for his own hiring purposes.

“As I move into hiring, I can use it as a great tool,” he said, generating applications and seeing what else is on offer in the local economy.

Abby Baudry of Traverse Connect is the project leader and oversees the day-today operations of Creative Coast. She says the program is a key in working toward one of Traverse Connect’s strategic goals: to grow the population of those between 35 and 49 years old by 5% by 2030.

Baudry says they use several factors to assess the program’s success.

“We measure by engagement on the job board, attendance, the meetings the ambassadors have,” she said.

She and Call say that the data show it is also working, based on the goal of growth in the key age range, and point to census bureau statistics to show that population has already grown by 3%.

That cheers Anderson and the other navigators.

“It’s cool to see growth, that people want to be here,” said Anderson.

He says it’s also a valuable experience for him.

“Several people have asked me about things I don’t know about,” he said.

That give him a chance to expand his network and find out about other opportunities and experiences he might enjoy himself, while passing such information on to others.

One other way to measure the success of the program is that it inspired a similar statewide effort. Call said the state initiative “You Can In Michigan” at TheMichiganLife.org was based in part on the local effort. It even looks similar.

“We work with the state to advocate” for both the region and all of Michigan, he said.

Despite its promise and success thus far, those with the program note there are still concerns that must be addressed.

“Success brings challenges,” agreed Call, pointing to housing and childcare as two areas that those in the region and those moving here continue to deal with.

He says the program’s growth will likely include showcasing the region beyond the five-county area.

“We think of Traverse City as Traverse City. We talk about the opportunities from Frankfort to Central Lake,” he said.

But outside the state and the Midwest, “Traverse City means Manistee to the (Mackinac) bridge.”

38 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

THE HOUSE ALWAYS WINS Kate Pearson is a major gifts officer at the Grand Traverse Regional Land Conservancy.

Six companies betting big on employee local housing initiatives

By Craig Manning Ask any local employer to name their biggest recruitment roadblock, and you will likely hear the same answer every time: Job candidates can’t find anywhere to live.

Between limited housing stock, elevated real estate prices, and the area’s huge number of short-term rentals – Traverse City Tourism President Trevor Tkach says Grand Traverse County has about 2,000 short-term rentals during the peak summer travel season – finding long-term lodging in and around Traverse City is no easy task.

Increasingly, that situation is leaving employers with a tough ultimatum: Either get by with less staff, or find a way to offer housing to candidates as an employee benefit.

From retail to craft beer and from resort hotels to hospitals, a slew of local enterprises are choosing the latter option.

To find out how different businesses are approaching their housing investments – and to learn more about the pros and cons of this growing recruitment tool – the TCBN touched base with six local companies that are betting big on employee housing.

GRAND TRAVERSE RESORT AND SPA

SHORT’S BREWING COMPANY The projects: “We have bought a 26-room inn that we use for workforce housing and community support,” said Scott Newman-Bale, referring to the old Bellaire Inn, which the beer company purchased in the summer of 2022. “We have also assisted other developers that are interested in the area in starting their developments.”

The numbers: Per Newman-Bale, many Short’s employees share a room at the Bellaire Inn, allowing the company to maximize the impact of its investment. “We probably housed 40 people in the summer,” he said.

The tenants: Short’s uses the Bellaire Inn space to house a variety of employees, including foreign students working in the United States on J-1 visas, college students who are home for the summer and looking for seasonal employment, and “new full-time employees who are starting with the company but unable to find immediate housing.”

The tenants aren’t all Short’s employees either: Newman-Bale said the company also uses the inn to meet “other local needs, such as healthcare workers, teachers, disaster victims, and some seasonal government employees.”

The upside: “Without the Inn, we would not have been able to open the past two summers,” Newman-Bale said.

The challenges: “Being a landlord is not fun, especially when things go wrong,” Newman-Bale said. “We have had to terminate a few employees, which is extra painful for both parties when housing and employment are tied together.”

The future: With several new housing projects currently underway in and around Bellaire, Newman-Bale is hopeful that, “at some point in the next several years,” it won’t be necessary for Short’s to offer its own housing. “But I am not sure the market is on track to solve (the issue) just yet,” he said.

Grand Traverse Resort has on-property housing for approximately 100 foreign labor workers.

The projects: In 2022, Grand Traverse Resort and Spa announced that it was breaking ground on a brand-new construction project on its property, with plans to dedicate the entire building to employee housing. The two-story structure, which includes multiple dorm-style units, opened last year as a space for accommodating the Resort’s sizable foreign labor force.

The numbers: Between the new dorm and several other housing assets – including six different apartments, a house, and a few other dorm-style buildings – Resort GM Tim Norman says the enterprise has accommodations for around 100 employees.

The tenants: The Resort makes substantial use of visa programs, welcoming workers to the property through both the H-2B and J-1 visa programs. All on-site housing, Norman says, is set aside for those foreign workers.

The upside: “To have the space to house additional employees during our peak season is crucial,” Norman said. “We have been able to bring in extra H-2B and J-1 workers to fill positions in culinary, housekeeping, food and beverage, and grounds.

With the investments we’ve made in our housing units, we have also been able to bring in workers to fill higher-level roles, like supervisors and managers.”

The challenges: “With housing around 100 employees, there can be wear and tear on the buildings faster,” Norman noted. “We find ourselves making necessary upgrades to the units frequently to keep everything in top condition. But it is worth it!”

The future: Fresh off a big investment in employee housing – past reporting on the matter estimated the cost of the Resort’s new dorm building at $1.5 million – Norman said there are no plans for the business to build any additional housing infrastructure in the near future.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

39

HIRING & RECRUITING CHERRY REPUBLIC

STORMCLOUD BREWING COMPANY

Cherry Republic partners with the Leelanau School to house some of its summertime staff, including at the Cochran Hall dormitory (pictured).

The Projects: Per Cherry Republic Founder and President Bob Sutherland, the company’s housing investments include three properties in Leelanau County, primarily aimed at housing both seasonal and year-round employees. The company also works to actively support local housing initiatives like Housing North, Peninsula Housing, and HomeStretch, all of which are contributing to the development of attainable housing in the region, Sutherland says.

The numbers: “In terms of capacity, our efforts have enabled us to house 18 team members directly,” Sutherland said. “We also collaborate with the Leelanau School during the summer, extending our housing capability to accommodate an additional 16 people.”

The tenants: Cherry Republic’s housing initiatives cater to a diverse group of employees, including seasonal labor in the summertime, Sutherland says. “However, we’ve expanded our scope to include year-round team members, addressing their housing needs throughout the year,” he added.

The upside: Sutherland sees Cherry Republic’s housing initiatives as a key aspect of its talent recruitment and retention capabilities. “Our ability to provide housing has directly contributed to our business growth and sustainability, despite facing a housing deficit for our employees,” he explained.

The challenges: Despite the positive impact, Sutherland admitted that housing employees comes with an “impactful” cost. “Each seasonal employee costs us about $1,500 a year in additional expenses that we would not have to cover if there were more locals to hire,” he said. “We also encounter significant challenges with local township zoning roadblocks and limitations. These challenges mean we are spending lots of unnecessary time – time that could be better spent selling cherries! – solving our housing and code issues. This underscores the necessity for collaborative efforts and support from township leaders and the county to overcome these hurdles effectively.”

The future: “A five-year goal of Cherry Republic is to provide a dozen apartments to rent for our new hires and year-round employees who currently struggle to find reasonable housing,” Sutherland said.

Stormcloud Brewing partners with a variety of local housing advocacy and development groups, including the Frankfort Area Community Land Trust.

The projects: The Frankfort-based Stormcloud Brewing Company is the smallest business on this list, but has invested substantially in employee housing in recent years. According to co-owner Rick Schmitt, the brewery has so far purchased “a three-unit apartment building and a nice fifth-wheel travel trailer to house employees.”

The numbers: During the summer of 2023, Stormcloud housed six employees across its real estate portfolio.

The tenants: “In the past we have focused on housing summer employees, given that our employment needs double during the summer,” Schmitt explained. “Having housing available for interns or key returning staff that have proved their incredible value has been a great asset in recruitment.”

The upside: For Stormcloud, offering staff housing has been an especially large boon for employee retention. “The biggest benefit for our business has been bringing back seasonal workers who are exceptional team members,” Schmitt said. “While we have never reached full employment over the last three to four summers, just having some level of security from knowing that a core group of staff is returning allows for some confidence in planning for the season.”

The challenges: Frankfort is a heavily seasonal town, and Schmitt points to that seasonality as the big downside to offering employee housing. “The biggest challenge, bar none, is finding renters during the winter months while also attempting to keep units open for the summer,” he said. “There are lots of options for renters (in the winter), and as a result, apartments sit empty. Translation? No rent income coming in during the winter to offset year-round expenses. Paying non-homestead tax is also an absolute killer.”

The future: “Currently, we do not have plans to add to our rental pool,” Schmitt said, noting that a variety of entities – including the City of Frankfort, the Frankfort Housing Commission, and the Frankfort Area Community Land Trust – have done “great” work over the years to aid in this critical issue, reducing the need for companies like Stormcloud to offer housing as an employee benefit.

ALE SALE SALE You know your business.

SALEWe know your business insurance.

ALE SALE ANNUAL PROGRESSIVE SALE ALE SALE SALE SALE SALE ALE SALE SALE SALE % % SALE OFF OFF ALE SALE SALE ALE SALE SALE % % ALE SALE SALEOFFSALE OFF SALEDowntown Suttons Bay hours 18 ALE SALE SALE SALE 76 SALE Mark your calendars!

20

JANUARY 22, 2024

40

FEBRUARY 19, 2024

JANUARY 2, 2024

FEBRUARY 1, 2024

30

50

LOCATED IN BEAUTIFUL

MON–SAT 10AM-530PM SUNDAY- CLOSED

bahles.net

Proud partners with

Louis A. Rodriguez

EST.

231.943.1326 ThirdCoastIns.com

40 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING CRYSTAL MOUNTAIN RESORT Crystal Mountain Resort has been investing in employee housing since the 1990s.

The projects: Staff housing isn’t new at Crystal Mountain. According to Director of Communications Brittney Primeau, the Thompsonville resort first started investing in employee housing back in the early 1990s, building two four-bedroom homes that can sleep up to 16 employees each. “Then, in 2021 and 2022, Crystal added four more homes, with each housing up to six people each,” Primeau said.

The numbers: The employee housing at Crystal, called the Cabanas, can house a total of up to 56 employees.

The tenants: “The Cabanas are available to any incoming or current employees who find themselves in need of temporary housing,” Primeau said. The biggest users of the housing benefit are seasonal employees, interns, international staff and new employees who have recently moved to the area.

The upside: Per Primeau, it’s only because of Crystal Mountain’s employee housing that Primeau says the resort can participate in internship programs and foreign exchange programs.

In recent years, she says, it’s also become a powerful tool for recruiting candidates from out of the area. “It makes it possible for new hires who are relocating to the area to start work earlier while they look for permanent housing, instead of waiting to find housing before they can begin work,” Primeau explained.

MUNSON HEALTHCARE

The challenges: “A recent study done

by Housing North determined that Benzie County is short by more than 700 units for the area’s workforce,” Primeau said. “Needless to say, affordable, attainable, and quality employee housing is critical, which is why you see businesses buying and repurposing hotels and houses for their employees.”

The future: Crystal Mountain’s next big housing project is a collaboration with HomeStretch, a nonprofit working to provide affordable housing in northern Michigan.

Recently, Primeau says, HomeStretch identified a property near Thompsonville Airport – and owned by Crystal Mountain – as a potential project site. “Crystal has agreed to donate about 15 acres of land to HomeStretch for their phased proposal to build eight buildings with 32 townhouse style rental units,” Primeau continued. “HomeStretch will manage the project, as well as the rental applications and units.”

Expect to see one of the region’s biggest employers bet big on housing in 2024.

“The availability of long-term affordable housing continues to be one of our greatest barriers to attracting candidates to our area,” said Megan Brown, chief marketing and communications office for Munson Healthcare. “This is an issue that we need to solve as a community, and Munson Healthcare is committed to being a part of this important conversation.”

To address challenges with recruiting and retaining talent, Brown says that Munson is launching a series of new initiatives and community collaborations to find creative solutions that assist job candidates and employees with housing challenges.

For instance, Brown says Munson is currently in the process of launching a new program for qualifying employees who need support with housing, financial guidance and career growth.

Brown also touted several other new programs or strategies for addressing housing challenges within the Munson workforce, including: • Working with landlords in the community to offer rental opportunities to Munson employees.

• Establishing employee discount programs, including special mortgage offers from banks and other companies. Quicken Loans, for example, is currently offering reduced closing costs to Munson employees that use Quicken for their mortgage.

• A new convener program, to help connect job candidates with local resources to help them find housing.

FOR MORE INFO VISIT w w w .T h e S h aw n S c h m i d T G ro u p . c o m

LEELANAU COUNTY LIVING

Experience, Knowledge, Protection & Peace of Mind 10292 East Fort Road | Suttons Bay, MI

231.947.8800 • www.LarkinGrp.com 13900 S. W. Bay Shore Dr.

This spectacular, chic & artistic farmhouse in Leelanau county is surrounded by 17 acres of cherry orchards and vineyards. A Ken Richmond designed home which boasts its own 3 acre working vineyard, barn, outdoor pool, sauna in primary suite shower and ice skating rink with lights- truly a 4 season FUN home! With 4 ensuite bedrooms, 5.5 baths (one with a steam shower) & over 8800 finished square feet, there is room for everyone. Bay views in 3 directions, including sunrises & sunsets from parts of the house.

SHAWN SCHMIDT ASSOCIATE BROKER

231.499.1990

Shawn@ShawnSchmidtSmith.com

52 2 E F R O N T ST, T RAV E R S E C I TY, M I 49 6 8 6

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

41

42 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

INDEPENDEN T LI V ING, A SSIS T ED L I V ING & MEMORY C A RE

Embrace Freedom & Connection Unlock a world of freedom where you can explore your interests, forge lasting relationships, and relish every moment of independence. Our unique community is designed with you in mind, ensuring you experience a life filled with excitement!

OPENING IN 2024 IN TRAVERSE CITY! Call 231.310.1999 MeadowValleyTraverseCity.com

+ Casual & fine dining + Movie theater + Exercise and fitness facilities + 24/7 nursing & personal care assistance

FORE V ER YOURS 5143 North Long Lake Road Traverse City, MI 49685

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

43

HIRING & RECRUITING

Sanok

THURSDAY IS THE NEW FRIDAY

Inside the push for a four-day workweek

By Art Bukowski

The first thing Joe Sanok needs you to understand is simply this: Trying to disrupt the traditional five-day workweek isn’t as radical as it seems.

The Monday-through-Friday grind hasn’t been around 1,000 years, he says.

Or 500 years. Or even 200 years. In fact, it only became commonplace about a century ago, when Henry Ford became one of the first employers to adopt the now-ubiquitous practice.

The point is, depending on your age, your very recent ancestors may have been born into a world that didn’t yet revolve around eight-hour days and five-day weeks. In Sanok’s opinion, the five-day week’s relative youth is just one of many reasons to not treat it like a sacred cow.

“The five-day work week started less than 100 years ago. Our grandparents, or our great-grandparents, were the very first generation to even experience it,” he said.

“So if we start right there, this is all loose; it’s arbitrary and changeable. And if we’ve learned anything in the past few years, it’s that there are things that we thought were clear and correct aren’t always that way.”

Sanok – a Traverse City native, popular podcaster and professional counselor – quite literally wrote the book on this topic. “Thursday is the New Friday: How to Work Fewer Hours, Make More Money and Spend Time Doing What You Want” breaks down the history of the five-day week and makes the case for why its reign should come to an end.

Sanok says the origins of the fiveday week lie in an industrial desire to standardize and optimize output, producing the maximum amount of goods and services at the lowest cost. But the COVID-19 pandemic upended nearly everything about the way we work and interact with our fellow workers, meaning it might be the perfect time to do away with what Sanok considers an apple cart ripe for tipping.

Helen Osterlin was recognized as a Northwestern Michigan College Fellow in 1970. Photo provided by NMC.

“The pandemic really was the final nail in the coffin of the industrialist way being the only way,” he said. “We’re now in a post-industrialist mindset. People are talking about family, mental health, time with your kids in ways that we never could before.”

Working less, but doing more?

It’s easy for managers, CEOs and other leaders to dismiss the push for a fourday workweek as employees merely wanting to work less for the same amount of money, Sanok says. With that thinking comes an understandable concern that profits or productivity might take a big hit. And workers themselves might even

meeting, or the meeting itself that took two hours when it could have been a focused 20 minutes.

“Work expands to the time given,” Sanok said. “Giving people less time to do the same amount of work allows you to shed a lot of the dead weight in business.”

On the back end of the cycle, Sanok says a worker better recharged after a three-day weekend is going to consistently do better work when they’re actually working. While some companies and organizations certainly do genuinely care about their employees, plenty of them care first and foremost about the bottom line, so this component is critical if this idea is to gain widespread traction.

“The pandemic really was the final nail in the coffin of the industrialist way being the only way. We’re now in a post-industrialist mindset. People are talking about family, mental health, time with your kids in ways that we never could before.”

–Joe Sanok, owner, Mental Wellness Counseling be worried about their ability to cram five days’ worth of work into four.

But you can throw all of that out the window, according to Sanok, and you don’t have to take his word for it. The data is there. Several large studies, some international and some domestic, are showing that outcomes of all sorts are better with the four-day week. What’s more, most businesses that try it on a pilot basis do not switch back, Sanok said.

“People are more productive, they’re happier, they’re healthier, their healthcare costs are lower,” he said.

The key is giving employees more time off to rest and recharge, Sanok says, and creating that extra time off by trimming down inefficiencies and “natural bloating” baked into the current system. The time standing around the water cooler, perhaps, or sitting around waiting for a

“As just one example, when do we have our best ‘Ah ha’ moments, our best ideas? It’s when you’re in the shower, or going for a walk, or at the end of a vacation,” he said. “It’s not when you’re stressed out and maxed out and your boss is coming down on you, or you’re on deadline for an important project but you keep getting pulled into all of these ridiculous meetings.”

Bumps in the road Sanok acknowledges some problems with his push for a four-day workweek.

Among those is that the pesky industrialist mindset that created the five-day cycle also compelled other critical operations, including schools, to follow suit. A move to a society-wide four-day week might be met with significant pushback from those

institutions, or the very daunting need to change them as well.

“A lot of people will ask what happens if everyone has Friday off? Or if my kids skip Friday in school, and all the parents can’t?” he said.

That leads to another potential problem. The four-day workweek is also not something that would seem to be a viable option for all workers. While careful scheduling could allow 24/7 businesses or operations to still have complete coverage while granting four-day workweeks, that alone wouldn’t address how to handle compensation. After all, the idea is to pay workers the same amount for their four days.

“One pushback that I often get, and it’s completely valid, is what about hourly workers?” Sanok said. “It really raises a broader societal question about how view hourly workers.”

Sanok says he is not aware of any local companies or organizations that are adhering to (or trying) a four-day workweek, but there are some big ones nationwide that have or are trying it, including the entire city government of Golden, Colorado. It’s also already more popular in Europe, with some adherence in the United Kingdom, Belgium, the Nordic countries and more.

“It’s like many things ... the earliest adopters are usually seen as really crazy, and that’s already happened. Then what usually happens is some major players start to back it,” Sanok said. “So it could be Berkeley, or UCLA, or one state that says they’ll try it for six months with all of its state workers.”

It should be noted that Sanok’s book is about more than the four-day workweek.

Much of it is focused on learning new efficiencies, creating the schedule you want and seeking a work-life balance that will maximize both success and happiness.

The book, published by HarperCollins, is available in local bookstores and on Amazon.

44 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

By Michelle Baldwin, columnist My 13-year-old daughter and I recently attended Taylor Swift’s Movie, “The Eras Tour.” I found it inspiring!

Perhaps you’ve heard of Taylor? Her current tour is number one worldwide and is the highest grossing music tour ever. She has released a catalog of number one hits, broken multiple records, and has changed the music industry by advocating for artists’ rights and finding new ways to connect and engage with her fans. I wouldn’t have considered myself a “Swiftie” prior to the movie, but I joined the club. It’s hard not to admire Taylor’s business sense in building her brand and adding to her fan base, which according to Forbes magazine is 53% of U.S. adults.

Mind blown!

When it comes to recruiting employees, I think we can learn a few things from Swift. As your organization works to attract and retain employees, think about your reputation in this small community.

How are you attracting “fans” and managing your brand?

As an HR professional for the past 20 years in northern Michigan, I can tell you that your business does have a reputation as an employer. Do you know what it is?

How is it impacting your business? Are you willing to change it if it needs improvement? Swift has created a personal brand that is authentic, relatable, and accessible. She started as a country singer and has kept her devoted fans engaged while attracting new fans, building a fan base that has been willing to follow and change with her.

Creating a culture of authenticity and trust MUST come from the top. As an owner or leader, are you telling stories, writing the lyrics, and creating processes that create the culture that you are working to build and maintain in the organization? If not, you should be thinking, “I’m the problem.”

Building a positive reputation as an employer in the community doesn’t mean that the organization must have the highest wages and the biggest benefit package. Employees are looking to work for companies that are fair, trustworthy, have opportunity for development, and are a fun place to work.

Organizations that choose to invest in their number one asset (the employees),

‘SWIFT’ THINKING ON TALENT What we can learn from a music industry giant

deliver quality goods and/or services that they can be proud of, and engage in ethical business processes and policies will outpace others in recruiting and retaining employees. Treating employees with kindness when it comes to illness, attendance, and personal issues and in a fair and ethical manner is critical in building a culture of integrity and trust.

“Don’t treat me like some situation that needs to be handled,” Swift sings. All employees are watching.

Look to hire internally, even if the employee doesn’t have the full skill set now.

Think of those that are not on the top performer list. Maybe they are bored or not in the right position. What is their potential and can they be developed? Investment in people builds loyalty, trust and engagement, not just to those in the training, but those other employees observing the company’s commitment to the employee. It raises people up and builds community. Word gets out about good things. In Swift’s words, “And when I felt like I was an old cardigan under someone’s bed, you put me on and said I was your favorite.” Sounds like an encouraging and kind place to work!

Use technology in the recruitment process in a way that doesn’t remove the human factor. For external candidates, this is your first point of contact with the company, the start of what could be a beautiful work relationship. It shouldn’t feel cold and impersonal.

Swift was able to connect with fans on multiple platforms and with the use of social media, but somehow managed to make it feel personal. If you haven’t begun using or invested in an applicant tracking system, it’s time! For a small investment you can manage all those applicants in one tidy place, forward applicants electronically to others on the hiring team and take notes. Most systems allow for texting, which is an important way of communicating with candidates.

Automatic responses to applications are a nice feature and do save time, but make sure the messages are written in the “lyrics” that convey your culture, and that after a certain number of electronic messages, a human being picks up the phone to speak to the candidate. Building a relationship with your new employee starts at this point, not when they walk in the door on their first day of work.

Be creative and bold! Take some risks in your recruiting efforts! Swift’s decision to pull her music from streaming services and later reintroduce it on her terms demonstrated a calculated risk that ultimately paid off. Create a team within your organization that includes marketing, hiring managers, front line employees, and HR that work together on recruiting and retaining talent. These employees have different skills sets and perspectives that can lead to better efforts and outcomes than just one person.

Write job postings that convey the personality of your organization. Make sure that your brand and company page are updated and presented well on platforms like Glassdoor and Indeed. Use Indeed and other recruitment platforms on your terms and get to know the platforms so that they can be utilized to their full potential.

Create partnerships with other organizations like high school career tech centers and community colleges. Look to other pools of candidates that you may not have tapped in to yet, like part-time or contract workers. There is a whole other pool of qualified candidates that don’t want to be your full-time employee and need more flexibility. Don’t be afraid to re-hire an employee that left the organization for another job, or maybe wasn’t the best employee years ago. I always take it as high praise when a previous employee decides to return. They often bring new lessons and skills sets with them when they come back, along with a deeper appreciation for the organization.

As Swift says, “When you find everything you’ve looked for, I hope your life leads you back to my front door.”

Michelle Baldwin, SHRM-SCP, SPHR, is a Senior Human Resources professional at Human Resource Partners in Traverse City and can be reached at michelle@humanresourcepartners.com.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

avoid the stank...

THE MARKET

pump that tank!

INVESTMENT INSIGHT FROM THE LOCAL PROS

Tax season surprise?

Take steps to reshape your strategies.

If tax season resulted in you owing more to the IRS than you expected, you may want to revisit your investment-related tax strategies. Doing so can help put you in a better position and avoid having to face unexpected surprises. These steps can help.

Licensed Septic Septage Haulers inspections detailed

Much More than Pumping

CALL TODAY!

231-228-7499

williamspumping.com

BEHAVIORAL HEALTH CARE FOR ALL AGES

Review your investment portfolio for tax efficiency 1. Review the location of your investments.

• Do you have investments in taxable accounts that distribute nonqualified dividends or taxable interest?

• Do you have actively managed funds that are generating significant capital gains?

• Could these investments be held in tax-advantaged accounts instead?

2. Evaluate the tax impact of the types of investments you select for your taxable accounts.

• Compare taxable bonds or bond funds with tax-exempt bonds or bond funds. Determine which are better for your situation.

• Work with a financial advisor to identify investments that will distribute primarily qualified dividends. Qualified dividends are taxed at a lower rate than nonqualified dividends.

• Mutual funds can distribute capital gains at year-end, delivering income that may be difficult to predict. If this is a concern, review other investment options that could offer more control over the recognition of capital gains.

3. Identify any unexpected taxable events that occurred. Determine if they are going to reoccur and think about actions you may want to take to help mitigate that impact.

Formulate your plan Your advisors have resources to assist you with your tax strategies. Work with both your tax advisor and your financial advisor to build your overall plan.

First, schedule an appointment with your tax professional to discuss your situation and review your tax projection.

Then, follow up with your financial advisor to evaluate your portfolio strategies and any investment changes that may help reduce your tax bill. If you’re nearing retirement, a financial advisor can also make income projections to help you understand the potential tax implications of your retirement income strategy.

JULIAN | BLACK

Wealth Management Group of Wells Fargo Advisors

45

10850 East Traverse Highway Suite 5575 Traverse City, MI (231) 922-4213

www.JBWMG.com

Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties.

Please consult your tax and legal advisorsto determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.

This advertisement was written byWells Fargo Advisors and provided to you by JULIAN | BLACK Wealth Management Group.

Investment and Insurance Products are: • Not Insured by the FDIC or Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. ©2023 Wells Fargo Clearing Services, LLC. CAR: 0223-03706

SERVICES & SUPPORT FOR EVERYONE Crisis Intervention Services

• 24/7 Crisis Line 833-295-0616 • Crisis Welcoming Center, 105 Hall Street, Traverse City, 8A-5P, M-F • Mobile Crisis Teams for Adults and Children

Integrated Health Services - Integrated Health Clinic • Primary health care clinic for anyone in the community, all ages, all/no insurance. Accepting new patients. Call for appointment: 231-935-3062.

Kandu Island Drop-In Center – a safe place to be, for all, on South

Garfield.

CMH SERVICES FOR ELIGIBLE PEOPLE • • • • • • • • •

Psychiatry Therapy Counseling Case Management Autism Applied Behavioral Analysis Specialized Residential Services Long-term Services and Support Traverse House & Club Cadillac Clubhouses See full list at northernlakescmh.org/services

WHEN IN DOUBT, CALL US! 24/7 Crisis Line:

833-295-0616

Access to Service:

800-492-5742

Customer Service:

800-337-8598

46 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

47

HIRING & RECRUITING

By Andi Dolan, columnist Attracting and retaining top-tier talent for small business owners in northern Michigan presents unique challenges. Creating a workplace that attracts accomplished individuals and fosters an environment where employees positively contribute to your organization is an ongoing process that requires a strategic and proactive approach. In the ever-evolving landscape of small businesses, the recruitment and retention of top talent is critical to your organizational success.

How can small business owners attract top-tier talent in northern Michigan? Here are a few practical strategies to achieve your 2024 workforce goals: Define Your Employer Brand: Clearly articulate your company’s values, mission and culture. Showcase what makes your small business an attractive workplace through your website, social media and other platforms. A well-defined employer brand helps attract candidates that align with your organization’s ethos.

Tap into Your Network: Leverage your personal and professional network for recruiting efforts. Networking remains a powerful tool. Recommendations from trusted connections can significantly influence a candidate’s decision to join a small business. Utilize industry events, online platforms and local business communities to expand your network. Joining the Economics Club of Traverse City or Traverse Connect are a few good examples!

Showcase Small Business Advantages: Highlight the potential for professional growth within your small business. Top talent seeks opportunities for career development and advancement. Communicate how employees can progress within the organization, take on more responsibilities and how they can play a pivotal role in shaping the future of your company.

Offer Competitive Compensation and Benefits: Despite potential budget constraints, it’s crucial to offer competitive compensation packages. Conduct market research to ensure your salary and benefits are attractive and aligned with industry standards. Competitive remuneration is a key factor in attracting and retaining top performers.

Flexible Work Arrangements: Em-

NORTHERN LIGHTS: How to find top-tier talent in northern Michigan

brace flexibility in work arrangements.

Small businesses can stand out by offering remote work options, flexible schedules or compressed workweeks. This flexibility contributes to a positive work-life balance, a key factor for many top performers.

Invest in Onboarding: A robust onboarding process is crucial for seamlessly integrating new hires into the company culture. Provide comprehensive training, assign mentors and ensure that new employees feel welcomed and supported from day one. A positive onboarding experience sets the tone for employee engagement.

Create a Positive Work Environment: Foster a positive and inclusive work culture. Encourage open communication, recognize achievements and create an environment where employees feel valued and appreciated. A positive workplace culture enhances employee satisfaction and contributes to long-term retention.

Offer Professional Development Opportunities: Small businesses can retain top talent by investing in continuous learning and development. Provide access to training programs, workshops and resources that support employees’ professional growth. Opportunities for skill enhancement contribute to job satisfaction and career progression.

Regular Feedback and Recognition: Establish a culture of regular feedback.

Recognize and acknowledge employees for their contributions. Constructive feedback helps employees understand their strengths and areas for improvement, contributing to overall employee satisfaction.

Implement Flexibility: Maintain flexibility beyond the recruitment phase.

Allow employees to adapt their work schedules to accommodate personal needs or changing circumstances. This flexibility contributes to job satisfaction and employee loyalty.

Promote a Collaborative Culture: Create a collaborative work environment where employees feel a sense of belonging.

Encourage teamwork, cross-functional collaboration, and create opportunities for employees to work together on projects.

Create Opportunities for Advancement: Provide a straight line to career opportunities and actively communicate career advancements to your employees. Offering clear paths for progression and recognizing internal talent for promotions can contrib-

Despite potential budget constraints, it’s crucial to offer competitive compensation packages. Conduct market research to ensure your salary and benefits are attractive and aligned with industry standards.

ute to employee retention. Demonstrating a commitment to employees’ career growth is integral to long-term engagement.

Employee Wellness Programs: Implement wellness programs to support the overall health and well-being of your employees. This can include fitness class-

es, mental health resources and other wellness-focused activities. Prioritizing employee well-being contributes to a healthy and motivated workforce.

Encourage Work-Life Balance: Promote and respect work-life balance. Small business owners can create policies that prioritize employee well-being, discourage excessive overtime, and encourage time off when needed.

Stay Ahead and Competitive in the Market: Continually assess the competitive landscape and adjust your strategies accordingly. Small businesses that stay informed about industry trends and employee expectations are better positioned to attract and retain top talent.

Nestled in the heart of northern Michigan, small business owners have the opportunity to build more than just a workforce, they can create a community of professionals deeply connected to the region’s charm and beauty. By defining a strong employer brand, aligning recruitment strategies and giving priority to retention initiatives, small business owners can not only draw in top-tier talent but also cultivate a culture that celebrates the direct influence employees wield over the success and growth of their organization. This journey boosts productivity and fortifies the foundation for long-term success in northern Michigan’s competitive market.

Andi Dolan is the owner of Traverse Benefits, a local independent insurance agency advocating and providing health, life and disability solutions for employers, individuals and Medicare beneficiaries across northern Michigan.

48 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

HIRING & RECRUITING

By Lindsay Raymond, columnist Recruiting and onboarding employees can be an expensive endeavor. When looking for ways to reduce these costs, employers may consider engaging a worker as an independent contractor instead.

Similarly, when an employee is planning on retirement, but is not ready to give up their work life entirely, employers and employees may think it is more cost effective to keep them on as a contractor during the next phase. Further, given the rise of remote work and an increasing employee expectation of flexibility, it is not uncommon to hear about an employee asking their employer to switch them to an independent contractor so they can control more of their own schedule and avoid being subject to an employer’s more rigid employment policies and/or practices.

While classifying a worker as an independent contractor may appear to be more cost effective and/or may even be exactly what your worker is requesting, employers should beware. Misclassification of a worker can be costly and could result in back wages, liquidated damages, taxes, penalties and even criminal charges under certain circumstances.

In January, the U.S. Department of Labor (DOL) replaced its prior rule and guidance regarding independent contractor classification under the Fair Labor Standards Act (FLSA). The new final rule will become effective on March 11. Employers should take this time to assess the status of their current worker relationships and ensure that they have been properly classified.

Why This Matters The FLSA is a federal law that requires covered employers to pay employees minimum wage and overtime as applicable, and establishes record-keeping requirements and nursing breaks. These requirements do not apply to non-employees like independent contractors. However, the FLSA itself does not define “independent contractor.”

Further, other legal requirements also hinge on whether the worker is an employee or independent contractor. For instance, employers are required to pay the employer share of FICA taxes related to wages earned by their employees, as

Employee vs. Independent Contractor DOL issues new final rule on FLSA independent contractor classification

well as unemployment taxes. Employers are also required to pay for workers’ compensation coverage for their employees and, depending on their workforce size, may be required to provide certain employee benefits like health care coverage and paid medical leave. Moreover, certain nondiscrimination and anti-retaliation protections apply to employees.

Each of these laws may have different definitions and/or tests for “employee” and “independent contractor.” For instance, the IRS has its own test for determining whether a worker is an “employee” for tax purposes. Thus, simply because a worker is an independent contractor for tax purposes, does not necessarily mean that worker is an independent contractor under the FLSA. Thus, it is imperative that covered employers understand the new final rule from the DOL. The New Final Rule Under the FLSA, the economic reality of the situation will govern when classifying a worker. This means that employers and workers cannot side-step the requirements of the FLSA by simply using or agreeing to an independent contractor label – labels or contracts do not matter if the worker is, in fact, economically dependent on that employer.

The new final rule provides six factors that businesses and workers must consider when analyzing the economic realities of the working relationship. No one factor is determinative, and additional factors may be relevant if they indicate that the worker truly is in business for themselves, as opposed to being dependent on the employer for work.

1. Opportunity for Profit or Loss: If the worker’s own managerial skill (initiative and business expertise or judgment) directly impacts their opportunities for profit or loss, the worker looks more like an independent contractor. Is the worker advertising for clients beyond the employer? Does the worker negotiate their own contracts, choose their own jobs, hire

their own staff, and/or make decisions about costs? If the worker performs assignments only as directed by the employer and only for the employer and/or the employer’s clients, the worker looks more like an employee.

2. Investments by the Worker: If the worker’s investments are capital or entrepreneurial in nature (like purchasing software and tools, renting space, spending money on marketing, etc.), the worker looks more like an indepen-

Misclassification of a worker can be costly and could result in back wages, liquidated damages, taxes, penalties and even criminal charges under certain circumstances. dent contractor. On the other hand, if the employer is providing most of the equipment, software, and marketing, as well as a place to work, the worker looks more like an employee.

3. Degree of Permanence: If the relationship is project-based and/or for a finite period, it looks more like an independent contractor relationship. Further, if the relationship is non-exclusive and the worker is able to provide services to multiple businesses at once, the independent contractor status is clearer. However, if the work relationship is continuous and exclusive (meaning the worker does not provide services to other businesses), the worker looks more like an employee.

4. Nature and Degree of Control: If a worker has control over their own performance of the work and the economic aspects of the relationship, the worker looks more like an independent contractor. If the employer reserves the right to supervise or discipline the worker, set the schedule, or direct the manner of performance, the worker looks more like an employee.

5. Extent to which Work is Integral: If the work performed by the worker is not central to the employer’s principal business, the worker looks more like an independent contractor. However, if the worker is providing the critical and necessary component of the employer’s business (like picking cherries at a cherry farm that are sold to a distributor, etc.), the worker looks more like an employee.

6. Skill and Initiative: If the worker brings their own specialized skill to the relationship (that is earned through their own completion of outside trainings, education, etc.), and if such skills are being used by the worker in a business-like initiative, the worker looks more like an independent contractor. On the other hand, if the worker is dependent upon training from the employer to perform the work, or if a worker is highly skilled but dependent on the initiative of the employer for work (like providing carpentry services for a construction firm, etc.), the worker looks more like an employee.

The total weight of all of these factors must be considered when determining classification under the FLSA. Misclassification under the FLSA can subject an employer to back wages, liquidated damages, penalties and attorneys’ fees. Thus, if the worker is doing the same job as other employees, and/or is asking for a change in classification only, switching to independent contractor status may not only be bad for business, it could also be a violation of the law.

As a reminder, the new final rule relates to “independent contractors” under the FLSA. Other laws and agencies may have different definitions. Given myriad interrelating and overlapping requirements, it is important for employers to work with their legal counsel to complete these worker relationship assessments and ensure proper classification.

Lindsay Raymond of DAR Law is a business owner and an experienced employment law attorney who counsels employers on workplace compliance; lraymond@darlawyers.com.

TRAVERSE CITY BUSINESS NEWS

HOOL C S 3 2 0 2022-2 NROLLMENT E Y E A R H OT SNAPS

Compass Junior High Capital Project Boundless Group James Modrall Sarah Bancroft-Treadway and Corey Treadway Bright Futures Gala Roots & Wings Sponsors Presenting Sponsors High Street Insurance Partners Deviate* Gold Sponsors Brady’s Bar Golden-Fowler Home Furnishings Grand Traverse Radiologists Independent Bank Karen & Mark Lundmark Rehmann Rembrandt Construction Williams Chevrolet Silver Sponsors 4Front Credit Union Suzanne & Jason Allen John & Liz Ammond Bay Area Urology Cass Street ENT Down to Earth Outdoor Services Events North The Beverage Company The Glenwood Restaurant Bronze Sponsors Adventure Golf & Sports BayWest Animal Clinic Beers Family Dentistry Bonek Insurance Agency Burritt’s Fresh Market Comfort Center Crystal Lake Health Center D&W Mechanical

Fitzmaurice-Garvin Insurance Henderson’s Mettle & Moxie MoneyFit Schrader & Associates Shugart Builders TBA Credit Union The Magiera Family Trattoria Stella WTCM Goodie Bag Sponsors Bendon Blossoms Daily Ritual Health Coaching Dharamsala TC Edson Farms Natural Foods Enlightened Living, LLC Hidden Hill Acres Lakeview Hill Farm and Market Michigan’s Creative Coast Old Mission Associates Pure Pilates Simply Ali Steven A. Lee, Esq. Svec Construction Table Health The Glenwood Restaurant The Neidorfler Group Wolverine Cabinet Company

Door Prize Donors Blue Cross Blue Shield of Michigan The Boathouse Captain’s Quarters Common Good Bakery Farm Club Golden Shoes Grocer’s Daughter Hop Lot Brewing Co. Luxbody Nicole Martin Photography Traverse City Golf & Country Club Traverse Magazine

Braiden Voss Memorial Scholarship Bike Shop Threads Corbin and Leslie Buttleman Hayden Buttleman Beth Collins Gerald Hakala Virginie and William Kanner Caleb Kinney Norte Youth Cycling

FEBRUARY 2024

*in-kind donation

THS

—TO — 3 14 3 MON

RS

6 YEA

Karen Circle Members Suzanne Allen ENTS U Sarah S T D Bancroft-Treadway Danielle Beauvais Margie Beers Mindy Beers Julie Boss Arielle Castine Mona Daddario Carrie Goodreau Soon Hagerty ADE Tammy Hagerty 1ST GR Summer Hennessy Diana Huckle Courtney Kaiser-Sandler ADE Connie Kerns TH GR TS 8 N Nicole Klau E D U S TKolassa Emily Lori Lemonnier Hillary Loomis-King Brittany Luea 19% Renee$Mittelstaedt Judy Murphy Angela Petty Carrine Pomaranski Cynthia Ruoff Molly Stanifer t Body Studen Jessica Sullivan Gretchen Uhlinger

—TO — 8 11

45 41 9 , 7I O N

T U I TTANCE ASSIS

49 F O R EN TS STUD

2022-2023

ANNUAL REPORT OUR MISSION

“The Children’s House prepares a Montessori learning environment that supports and respects the development of each unique child and nurtures them to become independent, curious, confident, lifelong learners who strive to contribute to their communities and the greater world.”

Thank you to The Children’s House for partnering with families to raise exceptional learners.

You’re making the future much brighter!

2779 Aero Park Drive Traverse City, MI 49686 marketing@vpdcs.com 800.773.7798

49

50 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

LUXURY VINYL PLANK

WITH CUSTOM STAIR TREADS OVER 40 STYLES IN STOCK AND ON SALE NOW AT AMERICA’S CARPET BARN!

“Thanks Americas Carpet Barn!”

ASK US ABOUT OUR CUSTOM ONE-PIECE VINYL STAIR TREADS Check out our Google reviews to see for yourself!

883 US Highway 31 S Traverse City 231-943-PIGS (7447) www.americascarpetbarn.com

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

51

BOOK REVIEW

By Chris Wendel

If you recognize Michael Lewis’ name, it may be because his books have been made into hit movies, including “The Blind Side,” where Lewis followed the path of an inner-city kid adopted by wealthy parents who guided him to football stardom; “Moneyball” that profiled baseball general manager Billy Beane’s switch to analytics that built a better team; and the exploits of financial contrarians in “The Big Short” that predicted the impending housing crash of the mid 2000s.

In each of these books, Lewis follows his unsung heroes through their unlikely journeys, where the underdog ultimately wins out. In his latest book, “Going Infinite,” the central character was headed on a similar path, until he wasn’t. Author Lewis met Samuel Bankman-Fried (Sam) through a friend of the 20-something cryptocurrency tycoon, who at the time was worth $29 billion.

Sam has been prominent in the news lately because he’s presently in jail after a jury found him guilty of several counts of money laundering and fraud.

Lewis does his usual good job of introducing his main character’s origin story, detailing his intriguing personality traits. We learn that Sam is a smart, introverted student who gravitated toward complicated games and problem solving. In college he became a believer in altruism or the idea of doing well financially in order to do good for others.

Sam aspired to eventually earn and then give large sums of money to take on big picture world problems like pandemics and the threat of artificial intelligence.

After college he worked at Jane Street Capital, a proprietary trading firm where he thrived and learned about the emergence of crypocurrency. Sam broke off from Jane Street to form his own low-profile trading company, Alameda Research, bringing with him like-minded friends he met previously at math camp and during his college days at MIT. There was opportunity in the crazy new world of crypto trading and Alameda Research was well positioned for it.

Through a routine of trades, Sam’s company was able to take advantage of higher priced bitcoin in other companies compared to the United States.

In January 2018, one of these trades netted Alameda $25 million in one day.

Yet, Sam’s lack of managerial skills and some temporarily lost funds led to upheaval with his staff, with many leaving the company altogether. However, Sam continued on with Alameda with good success. To cut out the middle man with his trades, he started FTX, a cryptocurrency derivatives exchange. Over time the illegal movement of funds between Alameda Research (with its stockholders) and FTX snowballed and became the roots of Sam’s legal issues.

< live. > < work. > < play. > MORE impact on people, LESS impact on the environment.

env-arch.com 231.946.1234 10241 E. Cherry Bend Rd. Traverse City

GOING INFINITE: The Rise and Fall of a New Tycoon

By Michael Lewis Lewis describes how Sam lacks the complete attention span necessary for communicating in key situations with employees, investors, and the media.

Lewis mentions circumstances where Sam is talking with someone on a Zoom call and, at the same time, playing a video game. It’s this lack of total focus and situational awareness that leads to Sam’s demise. When FTX is lacking cash, more funds go missing, people are cheated, and he doubles down on his deception and lies to the point where he’s committed major crimes and is arrested on financial fraud charges.

“Going Infinite” fails when Lewis and his main character no longer follow the typical hero’s journey. Lewis is loyal to Sam to a fault. Although over time Sam becomes less revealing to Lewis, being a fly on the wall doesn’t mean you can ignore major discrepancies that are taking place in real time. Lewis is much too sympathetic to Sam’s indiscretions and poor judgment. As one can predict, the ending is not good and, unlike Lewis’ other successful books, “Going Infinite” doesn’t ever measure up.

Chris Wendel works for Northern Initiatives, a mission-based lending organization based in Marquette, Mich. Northern Initiatives provides funding to businesses throughout Michigan and online business resources through its “Initiate” program to small business owners throughout the United States.

Wendel lives and works in Traverse City.

> We design the circumstances, objects and conditions that surround you. © Environment Achitects

For Traverse City area news and events, visit TraverseTicker.com

52 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

ESCAPE THE HUSTLE RECHARGE | REFRESH| RETREAT

MAKING IT IN NORTHERN MICHIGAN

THIS ARTICLE IS MADE POSSIBLE BY

GTA MC

TriMet Invests in the Future Scan the QR code to see our work!

231.922.0087 trunorthlandscaping.com

By Clark Miller

“Our winches simply wind up the cable that actuates the mechanical lift for lakeside boats,” Dan Mello, president and owner of TriMet he said. “They are either driven by an electric Industries, started his manufacturing career demotor or hand cranked with a wheel. They are cades ago. Sheet metal, which is TriMet’s princi- not for boat trailers or other applications.” pal (though not only) focus, is his expertise.

The docks and winches combined account The material was not particularly high-tech for roughly 30% of TriMet’s annual revenues. back then, and that’s more or That number suits Mello. less still true today. But from “I don’t want those products TriMet has a business point of view, it has to get to 60% or 70% of sales,” one great advantage: It is used he said. “It’s a luxury item, so if started in countless applications across there’s an economic downturn, supplying cusa wide number of industries. people won’t buy as much.”

Mello oversees a workforce Mello says he is upbeat tom-designed of around 20 employees as they about TriMet’s future. A clear sheet metal fabricate and, when called for, sign of that optimism is his reapply powder coating to all cent investment of $750,000 in forms for sorts of sheet metal cabinetry, new equipment, with another miniature golf or “boxes.” $250,000 tagged for a future “We powder-coat about purchase. Revenues have nearly courses on 80% of our products,” he said. doubled since he took over in cruise ships.

“It prevents rust and oxidation 2017. He says the current staff and improves appearance.” fits well with the work at hand In many cases, Mello and his and adapts quickly to new team never see the finished products they make. technologies.

“Mostly we ship out six panels, enough Mello sometimes takes on surprising projfor a box,” he said. “That’s more convenient ects. TriMet has started supplying twisting, for shipping.” turning, custom-designed sheet metal forms Clients or third parties then finish the for miniature golf courses on cruise ships. assembly process.

“One even went from one deck to a lower Many of those boxes are used in the heatone,” he said. ing and cooling sector, which accounts for Closer to home, the company builds roughly 40% of TriMet’s annual income. End neighborhood vending boxes that contain users include new residential and business life-saving overdose medicine. It’s part of the construction, and a long list of other settings. non-profit Harm Reduction Michigan’s effort Some of it goes to Tesla for chillers in the to reduce drug-related deaths. manufacturing process.

TriMet was founded in 1995 by Kirk Not all projects involve sheet metal. Based Schuch and Mark Ludwig. on proprietary designs, TriMet makes two products related to the marine industry.

The Grand Traverse Area Manufacturing Council One is its aluminum boat docks, which (GTAMC) sponsors this column. The mission of sold well during the worst of the pandemic.

GTAMC is to support a sustainable and globally The other is TriMet’s custom chain winch. Its competitive manufacturing sector for a stronger working components are made of steel; the economy. Learn more about membership options at casing is made of aluminum. makegreatthings.org.

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

53

NEWSMAKERS

1 // CLAUDIA RODRIGUEZ

2 // BARBARA SHELLMAN

3 // MISTY LUCYK

4 // PRACILLA VENHUIZEN

5 // KRISTEN VIGLAND

6 // MARSHALL COLLINS

7 // JARED DIEPHOUSE

8 // JONATHAN DUCASTEL

9 // JOSEPH REXROAT

10 // SARAH RODERY

11 // SARAH SHEPLER

12 // CURT WARD

>> BANKING & FINANCE 1 - Claudia Rodriguez, associate wealth advisor with Horizon Financial in Traverse City, has earned the Certified Financial Planner (CFP®) designation.

2 - Barbara Shellman has joined Stifel’s Traverse City branch as a financial advisor. She brings more than 10 years of financial services experience to her role and specializes in personal wealth management plans.

Honor Bank announces the following personnel news: 3 - Misty Lucyk has been named assistant vice president, help center manager.

4 - Pracilla Venhuizen has been promoted to assistant vice president, human resource manager.

5 - Kristen Vigland has been promoted to officer, commercial loan operations manager.

>> EDUCATION 6 - Marshall Collins, a member of the instructional services team and regional health and DEIB (Diversity Equity Inclusion and Belonging) coordinator for Northwest Education Services (North Ed) in Traverse City, has been appointed to serve on Gov. Gretchen Whitmer’s Black Leadership Advisory Council.

7 - Jared Diephouse, power equipment instructor at North Ed Career Tech in Traverse City, was recently selected as 2024’s Teacher of the Year by the Michigan Association of Career and Technical Education.

>> HEALTH CARE 8 - Jonathan Ducastel, M.D., has joined Munson Healthcare Kidney and Hypertension Specialists in Traverse City. Dr. Ducastel specializes in nephrology.

9 - Joseph Rexroat, M.D., has joined the Milliken Medical Group in Traverse City as a family medicine physician.

10 - Sarah Rodery is a new behavioral health therapist at Traverse Health Clinic. She has more than 15 years of experience in the health care field, including working with people with disabilities, students with trauma responses, and the aging population.

11 - Sarah Shepler has joined Munson Healthcare Foster Family Primary Care in Traverse City as a physician assistant.

12 - Curt Ward, M.D., has joined Munson Family Practice Center in Traverse City as a family medicine physician.

54 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

NEWSMAKERS

13 // HEIDI BOLGER

14 // SHILOH SLOMSKY

19 // ANN STREHLE

15 // MATT WALIGORSKI

20 // SAM ABOOD

>> NONPROFIT 13 - Heidi Bolger, co-founder of Iron Fish Distillery in Thompsonville, has been named president of the Friends of the Betsie Valley Trail board of directors.

Bolger brings extensive experience to her new role, having previously served as chair of the Great Lakes Bay Regional Trail and as president of the Friends of the Saginaw Valley Rail Trail.

14 - Shiloh Slomsky has joined 20Fathoms in Traverse City as chief financial officer and tribal liaison.

She provides management and strategic direction for the organization’s financial and governance responsibilities and leads the organization’s partnership with local Native American communities to deliver startup programming and other support.

15 - Matt Waligorski, an insurance agent with Peterson McGregor Insurance in Traverse City, has been named the new president of the Rotary Wheels of Hope, Traverse City chapter. The Wheels of Hope organization raises funds and awareness for the gift of mobility and independence by providing wheelchairs to polio survivors in Africa.

16 // JOHN BERCINI

21 // GORDON LIECHTI

financial services industry. He currently is treasurer for the board of trustees for Peninsula Community Library and board secretary for the Grand Traverse Regional Land Conservancy.

17 - Kira Davis is the Great Lakes senior program manager for the National Parks Conservation Association with an emphasis on water quality, wetlands, wildlife protection, and tribal and federal policy work within the Great Lakes Region.

18 - Barbara Matthews has more than 30 years of international leadership and business experience.

Most recently, she served as senior vice president, general counsel, and corporate secretary of Hagerty and a member of Hagerty’s executive team.

16 - John Bercini spent more than 30 years in the

18 // BARBARA MATTHEWS

23 // LEE HORNBERGER

22 // TJ TAYLOR

more than 28 years of experience in residential, commercial and vacant acreage real estate.

21 - Gordon Liechti has joined The Mitten Real Estate Group in Traverse City as a REALTOR. Liechti is working with the Ryan and Jenni Craig real estate team and has experience in both commercial and residential sales and previously owned Garage Door Services in Traverse City.

22 - TJ Taylor has joined CENTURY 21 Northland in Traverse City as a sales associate. Taylor specializes in residential and luxury property sales in the five-county region. >> OTHER

19 - Ann Strehle is a retired physical therapist and previously operated Mobility Now Physical Therapy providing home care services across northern Michigan. Strehle currently services as board president for the Darcy Library of Beulah.

>> REAL ESTATE The Grand Traverse Regional Community Foundation recently announced new appointments to its board of directors:

17 // KIRA DAVIS

20 - Sam Abood has joined Five Star Real Estate in Traverse City as an associate broker. Abood brings

23 - Lee Hornberger, an arbitrator, mediator and hearing officer in Traverse City, is among 22 new members of the National Academy of Arbitrators.

Hornberger is a former chair of the Alternative Dispute Resolution Section of the State Bar of Michigan, a Diplomate Member of The National Academy of Distinguished Neutrals, a member of Professional Resolution Experts of Michigan, and more.

Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com

TRAVERSE CITY BUSINESS NEWS

FEBRUARY 2024

and Grow Your Business MSUFCU offers the products and services you need to expand — along with a dedicated, full-service Business Services team ready to help you find the right solutions to set your business up for success.

MSUFCU offers a variety of products and services including: eDeposit — Save time by depositing checks electronically.

Merchant Processing — Accept all major credit cards and have the funds deposited into your MSUFCU business account.

PositivePay — Protect your company with automated fraud detection that verifies and reconciles your checking and ACH transactions before final payment.

Business IMMA — Earn higher dividends on savings.

MSUFCU. Good for Business.® msufcu.org/business 231-715-4016

55

56 FEBRUARY 2024

TRAVERSE CITY BUSINESS NEWS

Carpet Galleria and Karndean... The ideal choice for your home.

SPECIAL PRICING THRU FEB 29, 2024

·

·