NSBA ADVOCATE

Published by the National Small Business Association

July/August 2008

Volume 22, Issue 3

How Does Your Business Stack Up in Providing Benefits?

How to Operate without a Formal HR Deparment The 2008 Candidates Stances on Health Care

Remaining Competitive

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JULY/AUGUST 2008

NSBA LEADERSHIP CORNER

A Message from NSBA’s Chair C Chair Marilyn D. Landis First Vice Chair Keith Ashmus Secretary Lois W. Riske Treasurer Scott Hauge Immediate Past Chair Grafton H. “Cap” Willey, IV Vice Chair, Communications Chris Holman Vice Chair, Advocacy Larry Nannis Vice Chair, Membership Phyllis Shearer Jones President Todd McCracken Editor Molly Brogan Layout & Design Greg Smith Staff Writers Molly Brogan Jere Glover Daniel R. Jones Kyle W. Kempf Jody Milanese Jim Morrison Greg Smith

HOW TO REACH US National Small Business Association 1156 15th Street NW Suite 1100 Washington, DC 20005 Phone: (202) 293-8830 Fax: (202) 872-8543 Web: www. nsba.biz Notification of address changes should be sent to the address listed above.

MISSION STATEMENT

NSBA is a volunteer-led association.

Our primary mission is to advocate federal policies that are beneficial to small business and promote the growth of free enterprise JULY/AUGUST 2008

Change Is Here

By Marilyn Landis

Throughout the 2008 election season whether the candidates are vowing a different kind of politics, or campaigning on past reform platforms, one thing is clear: change is more than just a campaign buzzword. As business owners, we all know that institutional change can be a difficult thing, but as the American public, we are clamoring for something different, something better from our elected officials. The mere identities of the presumptive Republican and Democratic presidential candidates—one an outspoken voice for change and unity, the other an independent-minded politician known for bipartisan efforts—signals that change is afoot.

Not one to rest on our laurels, NSBA is creating a bit of change too. As the nation’s oldest small-business advocacy group, we take very seriously our mission of advocating on behalf of America’s small business.

We’ve learned over the years that, every now and then, people need a change. In our efforts to best serve you—the small-business community—we’ve given our Web site, www. nsba.biz, and our publications, the NSBA Weekly Advocate e-newsletter and the NSBA Advocate magazine a much-needed update.

Most noticeably, we’ve improved the look of NSBA, but most important to you, we’ve enhanced the information, the advocacy and the resources we provide to you.

NSBA WEB SITE If you haven’t been to the new NSBA Web site, I urge you to take a few minutes and see all the new features we’ve added. On the homepage, we have dedicated a section to streaming the latest small-business news.

We overhauled the information architecture to make a more inherent and easily navigable website, and added new sections including staff and member profiles, a multimedia library, information on upcoming events, business resources, and membership benefits.

One of the key goals we had in revamping the Web site was to enhance the on-line action center where you can get involved and lobby Congress with a mere click of your mouse.

The most useful tool NSBA has in its lobbying arsenal is you—small-business owners who contact their elected officials. Whether we’re fighting against Congressional efforts to

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Marily

n D. L

andis

iincrease y your IRS r reporting, or filing comments with i h the h Federal d l Reserve Bank k on needed credit card reform, your comments are invaluable.

NSBA PUBLICATIONS Every Wednesday, NSBA sends out a weekly update called the Weekly Advocate.

This includes the latest news impacting the small-business community from Capitol Hill and beyond. We also include in every issue a “quick-poll” through which we are able to keep our fingers on the pulse of America’s small businesses. These quick-polls are one to two questions asking your opinions on the important issues that affect you. I can’t tell you how important these quick-polls are, not just in getting a feel for where small business is on a particular issue, but also in keeping our name and organization relevant and newsworthy. If you’re not already signed up for the Weekly Advocate, please take a minute to do so—and don’t forget the quick-polls! (see p. 13 for more details) We have grown our print newsletter, the NSBA Advocate, into a magazine with several new features. We are spotlighting the outstanding work of NSBA’s councils and affiliate members, and are profiling a member in each issue. Supplementing the Weekly Advocate, the magazine includes in-depth analysis of key issues and provides a “what it means for you” perspective on our election coverage.

An overarching theme not only in these columns, but also in my life, is urging people to get involved. We strive to speak for all small businesses and we want to be sure your voice is included. NSBA is working to make your involvement and action on key issues easier and quicker—something every smallbusiness owner can appreciate.

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ON THE TRAIL

The Doctor is In: How the Candidates Stack Up Against NSBA on Health Care

By Daniel Jones

Currently, 47 million Americans lack health insurance. Over 20 million of those uninsured are small-business owners or employees. As health care costs continue to spiral out of reach for many small-business owners, it is clear that a comprehensive reform of the health care system is needed.

Look no further than the 2008 elections for small business healthcare reform opportunities.

Presumptive nominees Senators John McCain and Barrack Obama have offered their proposals for systemic health care reform. While there are similarities between their proposals, their most fundamental difference is over the scope of government involvement in America’s health care system.

See how their proposals stack up with the National Small Business Associations principles for healthcare reform.

Health Care Record

Cos Co ost os s

NSBA

All individuals dividuals would be requi q red to obtain coverage-qu ens nsuri u ng uri n tha h t both healthy and si ha s ckk individuals participate in insura ins ura ranc n po nc nce p ols, spreading risk more evenly. The required benefi ben efi fit pack ackage would be subject to federally insurance sta tanda nda ndards d s to limitt thee ability of insurers to charge radically differ dif fe ent fer en pr price ic s to different populations and would eliminate the he ab abili i tyy of il o ins n urers to deny coverage or price based upon health he hea lthh coondi nd tions. n Individuals and families would receive fed edera e l financial era na l assistance for health premiums, based upon income inc om .

Obama, Barac k (D (D)

hn (R)

McCain, Jo

Would mandate that parentss iinsure ure re ttheir heir ei ch eir child children. illdre The goal is to reach universal coverage by 2012. He might consider m dating that all the uninsured buy coverage and would man expand eligibility for Medicaid and SCHIP. Individuals and businesses could purchase public and private coverage through a national health insurance exchange where insurers could not re r ject applicants because of illness or preexisting conditions and the policy would be portable. The plan’s benefits would be similar to those of federall employees.

Opposes individual mandates. The federal governnmen mentt would provide tax incentives for people to t buuy insuuran rance. ce.

The taxx exclusion for employer-based health caree woould ld end. He would allo low individuals to purchase outlo t off sta t te insurance and promises to help statees develop “guarant anteed eed access plans” to aid individuals in poor heal alth or wit ithh it preexisting conditions. Main approach to decreasee costt is i to promote insurance competition.

Create a National Health Insurance Exchage through which small businesses and individuals without access to other public programs or employer-based coverrage could enroll in the new public plan or approved private plan. Most employers would cover workers, make a “meaningful” contribution to coverage, or contribute to a public health plan.

Small businesses making a “mea e ningful” contributions to a “quality” health plan would receive a refundable tax credit valued at as much as 50% of health insurance premiums for employee yee s. Employerss receive reimburement for some catastrophic healthcare costs, but employers would have to use the money to reduce workers’ s premiums.

All individuals could get a refundable $2, $ 500 taax credditt ($5,000 for families)) as an incentivve to buy hea h lth lt insurance. If a policy cost less than the tax credit, the h he consumer could deposit the remainder e in a health t ssavinngs account--placing emphasis on “innovative multi-year ear ar policies” that cost less than the tax credit. Individuals als ls could get coverage through any organization or association, including an employer, and the policyy wouuldd have to meet “rrigorous standards and certificantion” and ndd be portable.

Obama would require medical c providers to collect data on costs, quality, preventable errors, nurse-to-patient ratios, and hospital acquired infections. Federal health car c e plans would have to use disease-management programs. He also wants to step up efforts to disseminate best-practice information and pay medical providers more for top-quality care. He would ul invest $50 billion toward adoption of electronic medical records and other Health IT.

Federaal health care programs would reimburse medica caal providers more for fo positive outcomes, for coo c rdi d nat a ing ngg care, and foor preventative services. McCain woul ouu d crere ate national standards for electronic health system e s. Hee would require medical providers to make inforrmation ion about outcomes, quality, and costs readily availlablee to the public. He supports innovative care ddelivery e ssystems, ms, such as clin i ics in stores.

Empo Em powe po w rm men nt & Focus on Individual Federa Fed eraal Gove G v rnment sh s ould create a basic benefit package t t incl tha n ude udess truly necessary benefits and recognizes the need for or hi h gher deductibles for tho th se abl a e to afford them. This type o pac of packag kagee would w help retur u n health insurance to its role as a finan nanc n ial a ba backd c rop, rather than a reimbursement mechanism for allll ex expen pennses e . Reshhape taxx incentive so that the payer receives the benefi ben efi fits, ts, reegar gardless of whether the policy is purchased through the h em emplo plooyer y or indivvidual. Such incentive would be capped att the pr premi em um level forr the require package, and additional covvera erage ge wou w ld be purchased using after-tax dollars. These polici pol icies ici es wouuld encourage a more robust consumer behavior.

Redu Re duci du cing ngg C Cos osts t While Improoving Quality T im The i pleemen me tat a ion i of electronic records and proceddure u s includin clu din ing digi igg tal pr p escription writing, individual electronic medi l reco ica e rds rds, and uniiver v sal physician IDs can reduce unnecessarry proc r edu ed res, increase efficiency, and improve the quality off car care. e Pay Pay-fo - r-performance initiatives should be adopted by ins n ure r s fol o owi oll o ng the lead of the Centers for Medicare and Medica Med icaidd Ser ica Services. Provide i rs should be paid based on outcom omes es andd sttand a ard ar s, rather than procedures. There should be greate gre aterr cost ate cost os aand quallity transparency for consumers to make inf nform orm rmed e cho ed choice c s. s

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FROM OUR AFFILIATES

Be Prepared to Deliver Taking Action to Deliver Real Solutions

By Joan Koerber-Walker, CEO, The Arizona Small Business Association (ASBA)

“How can I help you?” In the world of associations – and in the world of the smallbusiness owner – this is one of our favorite questions. The challenge is once you ask the question – you set an expectation that you actually CAN help.

Each quarter, ASBA asks its 3,000 member companies about the key issues facing small business across the state.

Repeatedly, two issues rise to the top of the list: affordable healthcare and workforce development support. That leads to the all important and often unspoken question – “So what are you going to do about it?”

AN ANSWER FOR AFFORDABLE HEALTHCARE. Sometimes, the answer can be built by taking what you have and using it in a new way to build a viable solution. In ASBA’s case, the answer came in the form of an ailing Association Healthcare Plan that had been around for 35 years. Step one was to determine can this plan be saved – and if so how. In 2007, a partnership was developed with CIGNA Healthcare of Arizona to

improve the program’s reach across the state while focusing members on consumer driven behaviors and healthier lifestyle choices. The result – together ASBA and CIGNA were able to deliver in 2008 a statewide, HSA qualified plan for smallbusiness owners that required no medical questionnaires or screening, provided 100% coverage for wellness exams, and offered annual fixed rates that applied equally for all member companies. Best of all – the plan experienced a 20 percent price decrease with enhanced benefits! Today, ASBA has the only plan of its kind in the state of Arizona – and its members have the answer they need for accessible, affordable healthcare.

WORKFORCE TOOLS THAT WORK FOR SMALL BUSINESS. If your people are your company – then it’s no surprise that developing a skilled workforce is a high priority among smallbusiness owners. With over 40 classroom learning opportunities offered each month, ASBA figured it was serving this need pretty

well until it analyzed where the students were coming from and realized that over 80% of the attendees came from a drive time distance of 20 minutes or less. (And that was before gasoline topped $4 per gallon!) Research uncovered that not only was distance an issue, but many small-business owners and their employees could not get away from the office for classroom work. ASBA Academy™ was created to provide workforce development training on-demand from the user’s desktop 24/7. With over 300 courses ranging from workplace safety to effective team work and from sales & marketing to software training, small-business owners can enroll themselves or employees at an annual rate of $100 and take as many courses as they wish. The system also tracks registrations, time spent in training, and test scores so that managers can monitor employee progress.

The result - no loss of productivity due to travel time, accessibility to more employees, and ultimately a more skilled team. It’s a workforce development solution that works for small business.

CHOOSING THE RIGHT RETIREMENT PLAN FOR YOUR BUSINESS All too often, small-business owners dismiss the idea of offering a qualified retirement plan for themselves and their fulltime employees. You assume that high third party administrator costs, complex IRS nondiscrimination rules, and fiduciary liability are all roadblocks to providing this valuable benefit. However, you may be able to sponsor a quality retirement plan and not even realize it. Some of your options might include: Keogh plans, 401(k) plans, SEP IRA’s, SIMPLE IRA’s and profit-sharing plans, many of which can be offered at little or no cost to the employer, and require little effort to set up and run.

Implementing a retirement savings plan helps both the employer and the employee. Generally, any contributions you make to an employer sponsored retirement plan are tax deductible to the business, and you can receive a tax credit for a portion of the cost to administer the plan.

“Our SIMPLE IRA is a great benefit for our employees,” says Dave Lake, CFO of Hook & Ladder Brewery, which has 25 employees and is based in Silver Spring, MD. “There is no IRS testing, no 5500 form to be filed every year, and the costs of administration, which are negligible to begin with, are passed on to the employees. It offers a lot of flexibility for what you want to do

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presently and in the future.”

The advantages, though, go far beyond income tax benefits for the business. Retirement plans are often listed as among the most important benefits that a company can offer, and having such a plan is an ideal for retaining and recruiting quality employees, as well as helping to enhance employee loyalty. These plans are separate from the investment in your company, and many small-business owners overlook the fact that this is a very efficient method to put money away for their own retirement as well. Integrating your personal financial plan and your business plan is an important step, especially for those who intend to utilize their business for retirement funding.

With such a wide variety of plans from which to choose, each with individual advantages and disadvantages, you’ll have to define what your specific goals are before attempting to make a decision.

Speak with your Financial Advisor or CPA and have them lay out all of the options. Only then should you make the decision as to what plan you want, or can afford, to offer.

Joseph D. Kristovich is a CERTIFIED FINANCIAL PLANNER™ and is a Financial Advisor with SPC Financial, Inc.(Registered Investment Advisor/SEC) in Rockville, MD. Joe can be contacted at jkristovich@spcfinancial.com

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FROM THE HILL

Fair and Simple Congressman John Linder (R-Ga.) Talks About the Fair Tax

By Congressman Linder

I was honored to speak about H.R. 25, the Fair Tax, with the National Small Business Association at the Washington Presentation Congressional breakfast on June 4. Your organization has been a long-time supporter of this fundamental tax reform bill and your continued support and work towards spreading the Fair Tax message will help move the FairTax forward.

The Fair Tax would eliminate all income taxes, all taxes on capital gains, all payroll taxes, the self-employment tax, and the gift and death taxes. In place of these oppressive burdens, the government would impose a 23 percent tax on personal consumption of new goods and services, thus, businesses would pay no Federal income-related taxes.

Additionally, every family would receive a monthly rebate of the sales tax on spending up to the Federal poverty level. This would allow a family of four in 2008, to spend $28,000 before paying a single penny in Federal taxes.

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A majority of Americans do not realize how much they actually pay the Federal government in taxes. Applying a transparent 23 percent personal consumption tax, as the Fair Tax does, will allow each and every American to know exactly when and how much they are paying the Federal government. The Fair Tax will, for the first time, tax what you take out of society, and not what you work so hard to put in to society.

The Fair Tax will revitalize our economy as no single piece of tax legislation has ever been able to do before. The Fair Tax will mean more economic growth for America, American jobs, and American paychecks than any proposal in modern times. This significant economic gain will translate into huge steps forward for your small business.

By eliminating the tax component in the price of goods we make each of you more competitive not only in the United States, but also in the global market.

The Fair Tax will also dramatically eliminate the massive compliance costs imposed on Americans by our current

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system. According to the Tax Foundation, Americans spent an estimated $278 billion in 2006, to comply with the complicated Internal Revenue Code. By reducing the massive compliance costs that our current system imposes on you we lift a significant burden off the very backbone of our American economy.

The consumption tax system is not new and Americans come into contact with it daily. The Fair Tax is a simple system that will be easy to implement as 45 states already have a sales tax system in place that the Fair Tax will essentially piggyback off of for collection purposes. Under the Fair Tax, retailers and service providers are compensated for collecting and remitting the 23 percent tax.

As the election draws near you may hear naysayers spreading misinformation about the Fair Tax, but if we continue to work together, our voices of support will be stronger and louder. Together we will make the Fair Tax a reality and pass along to our children and grandchildren a brighter and more prosperous economic future.

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RESOURCES

Small Businesses Need Human Resource Knowledge: How to Avoid Common HR Mistakes

By William J. Maroni

E

very company, no matter how small, relies on people for its success. And that means somebody has to handle human resource duties—from finding and retaining top talent, to managing benefits and training, and more. But many smaller firms don’t have HR staff or departments to guide them. This can lead to costly and damaging mistakes, particularly during challenging economic times.

“Fairly common employment-related mistakes can really cost an organization, whether in lost productivity, diminished efficiency, effectiveness, sales and revenues, or decreased profitability,” said Patricia Mathews, president of Workplace Solutions and former member of the Society for Human Resource Management’s Employee Relations Special Expertise Panel.

Fortunately, even the smallest business can avoid the most common HR management mistakes. Being aware of what those mistakes are is the first step.

must still show cause for terminating an employee at the end of the probationary period. As an alternative, employers should consider using the term “introductory employment period,” and take steps to ensure that what’s expected of new employees is

NOT KNOWING EMPLOYMENT LAWS. Today more than ever, employment laws affect companies of all sizes, change frequently, and can be difficult to understand.

Besides federal statutes, there are also state and local statutes and regulations.

Business owners must be aware of them all, and understand how they can affect their organizations and their people.

LACK

OF KNOWLEDGE ABOUT IMPORTANT

BUSINESS AND HR CONCEPTS.

Without an understanding of basic HR concepts, employers can inadvertently find themselves in trouble. Two of the most commonly misunderstood workplace concepts are “at will” employment and “probationary periods.”

The former refers simply to the ability of an employer to hire and fire employees “at will.” Many businesses assume they are “at will” employers, but they actually must act within a variety of constraints. There are correct and incorrect ways to manage people in these critical situations, even if they are “at will” employees.

“Probationary periods” for new employees also can be misunderstood. Even if that designation has been made, employers 8

clearly stated from the beginning.

BEING IMPATIENT IN HIRING EMPLOYEES. In a small business, it may be hard to find time to choose the right person for an open job, especially when an already undersized staff is stretched thin to fill in for a vacancy.

An impatient manager or owner may quickly settle for an adequate candidate, rather than wait for the right person.

Without a dedicated HR department, employers might not know that there are personality and assessment tests to help identify the best person for the job and the organization. Also, be careful of questions posed during an interview, because some can be illegal to ask. Taking the time to craft incisive and appropriate questions will help find an employee who will do well in the job and fit in with the company culture.

INFERIOR PERFORMANCE PRACTICES.

DOCUMENTATION

Proper documentation is important for employers and employees. Not having it can hurt a small business when it’s necessary to fire an employee quickly or respond to a lawsuit.

Whenever an employee is reprimanded or shows behavioral or performance problems, ADVOCATE

meet with the individual to discuss the issues, and then take care to write a full report.

USING

ANOTHER BUSINESS’S

EMPLOYEE

HANDBOOK AS YOUR OWN.

Some small businesses use another organization’s employee handbook to save the time and expense of creating their own. This is a dangerous practice. The other organization may have a different mission, structure or set of operating goals. It could be governed by the rules of a different state or region, or its handbook could be outdated, containing data that is not compliant with current employment law. Take the time to write an employee handbook specific to your business. Doing so will ensure that the handbook is current and compatible with your organization’s culture, policies and practices.

Smaller businesses, even those without human resource professionals, can avoid the most common HR mistakes by keeping abreast of federal and state employment laws and HR best practices. Consult with your local chamber of commerce, trade group or professional association for the most up-todate information. You also can check your library and book store for resources, and visit the Web sites of organizations such as the Society for Human Resource Management (SHRM; see www.shrm.org), the world’s largest HR organization.

It’s your business and your people are your most important asset. Taking the time to learn and practice smart people strategies can help ensure your success.

William J. Maroni is the Chief External Affairs Officer at the Society for Human Resource Management (SHRM).

The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management.

Representing more than 245,000 members in over 130 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the U.S. and subsidiary offices in China and India. Visit SHRM at www.shrm.org.

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RESOURCES

SMALL BUSINESS TRENDS How to Attract and Retain the New Workforce Small-business owners who know how to tap today’s increasingly diverse talent pool will be tomorrow’s success stories.

By Rick Jensen

The face of small business is dramatically changing. Today’s emerging entrepreneurs, according to the Intuit Future of Small Business Report, are far more diverse than their predecessors in age, origin and gender.

and create a profile to attract new talent. Facebook and LinkedIn, part of what’s known as social media, are staples of the new recruiting landscape. You may also want to join a community based similar trade, regional or industry interests through sites such as JumpUp.com or Meetup.com.

TOMORROW’S ENTREPRENEURIAL LINEUP •

•

•

•

•

Baby boomers – Nearing retirement age, many of those born between 1946 and 1954 will launch a second career, pursuing a passion that might have been too risky when they were younger.

Generation Yers – Less risk averse than their parents, those born after 1980 are more inclined to choose a career based on an interest or cause. They want to maintain their independence by controlling their own careers.

Mompreneurs – Moms-turned-entrepreneurs are increasingly turning to small, home-based, personal businesses for part-time work. Many start by helping a friend get their business off the ground.

Immigrants – As business borders fall, immigrant entrepreneurs will use the Internet to aid businesses using their crosscultural skills, contacts and experience to form international partnerships.

Professional Women – Successful career women who have ascended the corporate ladder are ready for new challenges to test their know-how.

One of these descriptions might apply to you. Or perhaps to your customers or employees. The challenge for tomorrow’s successful small-business owner is to attract and retain this diverse work force and harness its passion and experience to grow and enrich a business.

KEEPING EMPLOYEES After landing the best employees, how do you keep them? Here are three ways to keep employees engaged: •

•

•

Encourage entrepreneurism. Good employees know how your business runs, and can help make it better. Encourage them to suggest more efficient ways to work, to submit ideas for new products or services, or to offer thoughts on how to live your cultural values. Schedule monthly brainstorming meetings to come together as a group and share new ideas.

Promote flexibility. Many workers prefer working at a small business because it offers more freedom than a more rigid corporate environment. When possible, work with employees to create a schedule that fits their lifestyle, especially with part-time workers. Most are happier and more efficient when given the freedom to work in a way that’s best for them. This accommodating atmosphere could also include your dress code, desk décor or vacation requests.

Help them grow. Meet regularly with employees to discuss their career goals. Maintain an open dialogue where employees can discuss their ambitions and concerns, both within and outside of the company. This connection builds trust and respect for both of you.

Here are three ways to get started:

The new, more diverse face of entrepreneurs presents new opportunities for small businesses to succeed. Those who recognize and embrace the opportunity today will be the success stories of tomorrow.

•

For additional resources related to this article, visit www.intuit.com/NSBA.

ATTRACTING EMPLOYEES

•

•

Tell them what you stand for. What is your company’s culture?

Is there an established set of values? Share these characteristics whenever you’re talking to customers or recruits – on your Web site, in promotional materials, on job postings or when talking to the media.

Establish networks. Your friends, family and business partners are an extended network to grow your business. Everyone you know is a potential connection to a future employee. Become active in the community, volunteer with a charity, join the chamber of commerce, introduce yourself to neighboring businesses and even competitors. You never know who may lead you to your next hire.

Raise your online profile. Establish your company on the Web

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Rick Jensen is senior vice president and general manager of Intuit’s small business group, which provides business and financial management solutions for small and mid-sized businesses. In addition to its flagship products and services including QuickBooks®, Quicken® and TurboTax® software, Intuit Inc. provides small businesses the ability to create and host their own Web sites with Homestead.com.

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FEATURE ARTICLE

MAKING

THE

MOST

OF

YOUR MEMBERSHIP

Are You Taking Advantage of the Myriad Cost Saving Member Benefits Offered by NSBA?

by Greg Smith, Britni Little, and Jennie O’Leary

You have already made the wise decision to get a head start on fostering the growth of your small business by becoming a member of NSBA. But just like the success of your small business, your NSBA experience depends on your willingness to take advantage of the resources made available to you.

The same employee benefits and resources that are offered by larger businesses throughout the country are available to you and your employees as an NSBA member, at a fraction of the cost. So don’t let them go to waste.

Not sure where to start? Don’t worry. We have highlighted a few of the products and partner services that are available exclusively to NSBA members.

• • • • •

Send your children to college Live comfortably in retirement Have financial options during critical times Maintain your independence as you age Care for elderly parents

Contact Mutual of Omaha for a no-obligation assessment of your insurance and financial needs.

To learn more, call 1-800-6245554.

Health Insurance Tailored for Your Needs.

Protect the business you’ve worked hard to establish The NSBA Member Benefits and grow.

Department is pleased to Your NSBA membership includes a unique, member-only provide members benefit package that can help you protect your family and and their business -- and save you money.

NSBA and Mutual of Omaha Insurance Company have teamed up for more than 40 years to provide valuable benefits to small business owners. Our goal is to help you protect what you’ve work so hard to build.

Consider this. Your chances of missing at least 90 days of work due to a disability are one in three.3 Compare that to the possibility you’ll use your homeowners insurance (one in 20).1 Or that you’ll use your auto insurance (one in 15).2 And you’ll see why it’s important to think about protecting your family and business with disability income insurance.

As an NSBA member, you’re eligible for disability and other valuable insurance plans with discounted rates or no-cost benefit enhancements that aren’t available to the general public.

Mutual of Omaha offers flexible individual insurance policies to help you protect your business and your family.

These products can help you: • Keep your business going strong • Provide for your family if you can’t • Grow your nest egg 10

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FEATURE ARTICLE families with comprehensive and affordable health insurance plans that can save you money. The NSBA Health Insurance Plan provides members, employees and their families with excellent health insurance options and other, necessary, life-event benefits. With multiple plans and an extensive network of national providers (over 750,000) the NSBA Health Insurance Plan is one of the most comprehensive health programs available.

Our focus is on individual and group needs. Whether you are seeking coverage for seven months, seven years or a lifetime, we can help balance costs and benefits, and invent a plan as unique as your are. Plans include: • $8 Million in Benefits • Worldwide Coverage • Extensive PPO Networks • Optional HSA Account • Prescription Coverage • Multiple Deductible Choices • Choose Your Own Providers • Lock in Your Rate Until 2011 Guarantee • 10% Healthy Member Discount

safety-related terms, and more.

Online Safety Training. SafetyCertified provides a rapidly growing library of online training courses covering the most relevant safety topics for small businesses. Courses are approximately 20-30 minutes in length, include quiz questions and exams, and are accessible to students 24/7. Online courses can also be customized to fit a small business’s unique needs.

• Best-selling Publications. SafetyCertified’s OSHA Answer Book Series includes the safety industry’s popular books OSHA Answer Book, OSHA Training Book, and OSHA Recordkeeping Book. These books give small businesses OSHA and recordkeeping solutions at their fingertips. Also ideal for small businesses is SafetyCertified’s best value product, OSHA in a Box, which is a hands-on, 3-ring binder that provides as an introduction to what most small businesses need to know about OSHA. Founded by the father of OSHA, Robert D. Moran, SafetyCertified’s specialists have over 30 years of expertise in the safety certification industry. By partnering with SafetyCertified, NSBA is giving small businesses To find out how more about the NSBA Health Insurance the tools and confidence they need to create a safer, more Plan logon to www.nsbahealthplans.org or call 1(888) productive workplace.

624-5886.

Everyday Benefits Provide a Safer and OSHA-Compliant Work NSBA offers a number of other benefits that assist Environment. members in their day-to-day operations. Members can SafetyCertified is proud to partner with NSBA and logon to www.nsba.biz or email membership@nsba.biz provide small businesses with easy access to the tools to get more information about how NSBA can better they need for a safer, more OSHA-compliant work serve your small business. environment. SafetyCertified has proven to help small businesses lower their Workers’ Comp insurance costs and decrease risk for potential fines from OSHA. As a leader in online safety and risk management, SafetyCertified can save small businesses valuable time and money with: • Safety Management Tools. Small businesses can have immediate online access to: safety audit programs, checklists, customizable written programs, online recordkeeping tools, customizable policies and procedures, access to State and Federal regulations, safety meeting guides, slide presentations for classroom training, OSHA Advisor for quick answers to OSHA questions, Material Safety Data Sheets, safety industry news updates, glossary of over 1700

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ADVOCATE

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RESOURCES

Benefits and Balance: How Small Companies Can Compete

By Jessica Cross Rohman

When it comes to being a great workplace, it may come as no surprise that small companies have several advantages over their behemoth counterparts. After all, a streamlined structure can facilitate direct communication, frequent contact with senior leaders, and a genuine sense of camaraderie across the organization. These attributes are among the hallmarks of a great workplace according to the Great Place to Work® Institute, the organization that selects HR Magazine’s 50 Best Small and Medium Companies to Work for in America (as well as FORTUNE Magazine’s 100 Best Companies to Work for in America for organizations with 1000 employees or more).

Though being small has its perks, many modestly-sized enterprises feel they hold the short end of the stick when it comes to providing competitive benefits and worklife balance practices. While the quality of such practices are of utmost importance in attracting top talent, small businesses often do not have resources for eye-popping offerings seen at the Googles of the world such as onsite childcare, state-of-the-art workout facilities, gourmet cafeterias, and sophisticated telecommuting options.

In the face of the betterknown “best companies”, how can s m a l l businesses compete?

According to the Institute, the efficient nature of small 12

organizations can actually be advantageous when it comes to creating high-caliber programs and policies. One characteristic of best practices in general is that they meet the actual needs of employees. Policymakers often collaborate with employees to determine what benefits and work-life programs will be most effective, thinking creatively toward implementation. The end result is a suite of tailored, strategic benefits and policies that employees value—and likely cannot find elsewhere.

Clearly, small companies have the upper hand in this arena, as it is easier to survey and accommodate the needs of fewer employees.

McMurry is a 159-person marketing firm, and #5 Best Small Company to Work For this year. Lee Vikre, Vice President of Tremendous People, says that while small companies need a solid benefits package to compete, “You can’t ever outspend larger organizations. You must have a different strategy.”

Vikre says smaller companies have the advantage as they can more easily tailor benefits to their people. McMurry utilizes a cross-functional Benefits Selection Team to gather employee feedback on benefits, work with brokers to find options, and make policy recommendations to the CEO, CFO, and Vikre. According to Vikre, no recommendation has ever been rejected.

The fact that 80% of McMurray’s employees are women also helps inform their practices; new moms receive 30 days paid maternity leave beyond FMLA and $800 for housekeeping and nursing care. A full 100% of employees utilize flexible scheduling— any working mother’s preference, to be sure.

With no forms or paper work, employees only need to speak with their managers to ensure their chosen schedule won’t be problematic for clients and co-workers.

Just as it is important to understand the needs of employees, it is also crucial that organizations articulate their own unique philosophy and approach regarding the ADVOCATE

treatment of employees, and then structure practices to reflect those beliefs. People practices that are tied to a deeply-held, organization-wide perspective respecting the employee are more likely to gain traction in the organization from the top down.

At New Mexico Mutual, a 122-person insurance provider and #14 Best Small Company to Work For, employees receive 39 paid days off in their first year of employment; 28% of employees use flexible scheduling, 15% telecommute. In the summer, the office closes early on Fridays.

According to HR Specialist Yvonne Santos, healthy work-life balance is a fundamental philosophy of the organization, grounded in one of their guiding principles: Employees are our most valuable asset.

Employees from the top of the organization down firmly believe people need substantial time away from work to reduce stress and come back to work refreshed. In fact, each year leadership creates a new goal that aligns with this principle. By articulating, highlighting and living this people-centered company value, leaders demonstrate their commitment to employees while walking the talk they espouse.

These tailored approaches to benefits and work-life balance practices illustrate the fact that no “one-size-fits-all” solution exists when it comes to creating a great workplace.

However, by coupling their natural agility with a sound people philosophy, small businesses can build a strategic suite of practices that are meaningful to employees and competitive against their sizable counterparts.

Great Place to Work® Institute is a global research and management consulting organization.

For

over 25 years, the Great Place to Work® Model© has been recognized as the standard for assessing workplace quality. To learn more about our research and services or to participate in the list competitions visit our website, www.greatplacetowork.com.

JULY/AUGUST 2008

MEMBER PROFILE

Kushner & Company Benefiting the Small Community

By Greg Smith

I

t is no secret that small business is essential to the American way of life. NSBA has been a strong advocate for regulatory reform, calling on Congress to ease the paperwork burden on small businesses and incorporate plain-language policies.

What are the real-world implications of burdensome regulation and paperwork? Any small-business owner who offers any kind of benefits can tell you—the implications are significant and far-reaching. The complex web of federal, state and local regulations affecting employee benefits can be a major roadblock to recruiting and retaining quality employees.

Gary Kushner, founder of Kushner & Company, founded his small-business in 1982 with the belief that providing employee benefits didn’t have to be so hard. His belief has landed on solid ground as Kushner & Company has grown to a highly respected pioneer in employee benefits consulting and administration for small and mid-size businesses. Kushner’s decision to start his own business was a simple one: small businesses face a great enough competitive disadvantages against their larger counterparts—employee benefits shouldn’t be one of them.

A small-business owner himself, Kushner employs 12 full-time staff in Portage, Michigan. Kushner’s greatest joy of being a smallbusiness owner is providing meaningful jobs for a dozen individuals and their families in a professional, nurturing, learning environment.

Kushner takes pride in being one of the first businesses in the country to focus its efforts on helping small- and mid-sized employers with benefit design without receiving any kick-backs from insurance or investment companies. This policy has cemented Kushner & Company’s integrity and autonomy in providing advice that is truly the best for their clients.

“From day one, we have been and remain completely independent and objective by not receiving any commissions or finder’s fees from the insurance or investment communities,” Kushner states. His unique business model ensures that clients receive the best quality and service of care based upon their needs and not the kickbacks that Kushner & Company would otherwise receive.

Kushner’s business ideals are what prompted him to get involved in myriad small-business organizations. Kushner served as chair of the Small Business Association of Michigan (SBAM), a NSBA affiliate, in 1991, and was NSBA chair in 1995. He participated in two White House Conferences on Small Business, 1986 and 1995, and is no stranger to the challenges that face small-business owners.

The countless conversations Kushner has had with small-business owners across the country validated his own business experience that the biggest challenge entrepreneurs face is the ability to compete effectively in an increasingly global marketplace. This belief has been one of the primary motivators for Kushner’s activism in pushing Congress to help level the playing field between big business and small business.

As Kushner explains “It is interesting that many in Congress talk about small businesses and entrepreneurs in glowing terms as the growth engine of our country, yet refuse to provide parity (let alone a competitive advantage) with larger employers.”

The realization that small business needs a consistent voice and advocate in the nation’s capitol was just one reason why Kushner became a member of NSBA. “My decision was easy,” says Kushner. “Seeing the effectiveness of NSBA at the 1986 White House Conference on Small Business I knew I wanted to be a part of such a vibrant organization.”

By the Numbers: VACATION TIME In order to keep a pulse of the most pressing issues and concerns facing the small-business community NSBA conducts weekly Quick Polls.

The results not only help NSBA staff better serve your needs, but they are also an important tool in educating your elected representatives and members of the media. To cast your vote in the weekly quick poll either view the Weekly Advocate E-Newsletter, delivered to your inbox every Wednesday, or visit www.nsba.biz. The results are published each week.

SMALL BUSINESS OWNERS 62% OF OR EMPLOYEES ARE PLANNING

38%

ON TAKING A VACATION THIS SUMMER

62%

SMALL BUSINESS OWNERS OR 38% OF EMPLOYEES ARE NOT PLANNING ON TAKING A VACATION THIS SUMMER

JULY/AUGUST 2008

ADVOCATE

HOW DOES THIS COMPARE

WITH VACATION TIME IN PAST YEARS?

SAME 64% LOWER 31% HIGHER 5% 13

COUNCIL UPDATES

Battle on the Hill SBTC is Fighting to Keep “Small Business” in SBIR Program

by Jere Glover & Jim Morrison

The U.S. Senate is considering legislation that could dramatically affect many small, technologybased companies.

SBTC has no plans to sit back and allow such legislation come to fruition.

SBTC, working in conjuction with NSBA, is launching an initiative to actively educate and persuade members of Congress about the negative effects H.R. 5819 will have on small businesses.

H.R. 5819, which passed through the House of Representative, would make major changes in the Small Business Innovation Research (SBIR) Program. SBIR is the largest single source of early-stage capital for R&D in the United States.

The program also accounts for over half the R&D contracts that small companies win from the

federal government. H.R. 5819 is now on a fast track in the Senate and would radically change SBIR if passed.

While SBTC favors the renewal of the SBIR Program, also a top priority for NSBA, the program is set to expire in September if Congress does not act. Unfortunately, the bill that the House passed and the Senate is considering to extend SBIR unravels many of the strengths and safeguards of the program.

That is why SBTC is ramping up its efforts and gathering the necessary resources needed to battle with special interest groups on the Hill. SBTC has recently taken several steps to help equip its members to speak on the issue. Among these steps are myriad resources added to the SBTC website; Congressional fly-ins on June 4 - 5; and the establishment of the online donating portal the SBIR Reauthorization Victory Fund.

To find out more information on how you can help keep the SBIR Program intact please visit www.sbtc.org or contact Alec at alec@sbtc.org.

Why Limit Your Business Potential?

Do you want to gain additional value and benefits from your NSBA membership?

If so, join one of of NSBA’s councils for a nominal yearly fee. It is a great way to compliment your NSBA Membership, expand your business network, and gain access to valuable resources.

Visit www.NSBA.biz for more details.

Sounding Off: SBEA’s Hard Work Pays Off for Small Business Exporters.

by Jim Morrison

There is good news for smallbusiness exporters who plan to use the valuable services of the U.S. Commerce Department to help find overseas customers and distributors -- Prices are actually going down!

After several years of negotiation between the exporter community, the Commerce Department, and the White House Office of Management and Budget, the Commerce Department has lowered its charges to small-business exporters, particularly first-time users of Commerce’s exporter services. (Fees charges to companies with more than 500 employees, however, will rise.)

Perhaps the most celebrated and admired service offered by the Commerce Department is its “Gold Key Service,” Here’s how it works: An exporter tells the

14

Commerce Department what he or she hopes to export and to which market(s).

Then the Commerce Department personnel in the U.S. Embassies in those markets identify qualified buyers and distributors for the products. When the exporter flies into that country, a series of appointment with pre-vetted buyers is already set up.

This great service eliminates much of the worry about prospective foreign buyers, and saves enormous amounts of time and money for exporters traveling abroad. Also, foreign buyers tend to be impressed by an exporter who can get the U.S. Embassy to act on his or her behalf.

Other exporter services offered by the Commerce Department include profiles of potential foreign buyers and joint venture partners, as well as assistance with web promotion overseas.

SBEA worked closely with the Commerce Department on this revised fee initiative, and commends the Department for its leadership.

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JULY/AUGUST 2008

ADVOCACY & EVENTS

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May 22, 2008 NSBA staff spoke at the Consumer Energy Alliance’s “Energy Day” at the Capitol.

Former NSBA Chair Raymond Arth testified before the U.S. Senate Finance Committee at a hearing entitled, “47 Million & Counting: Why the Health Care Marketplace is Broken.”

08 , 20 osted 1 1 e h Jun staff r the A tes fo B S N ng dvoca ss fi e i r a b onal A Busine i ll e R g e Sma on. ti h of t inistra m Ad

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JULY/AUGUST 2008

June 10, 2008

June 13, 2008 NSBA staff attended a briefing by BP’s chief economist on the world energy outlook.

Jun e Hou 12, 2 se S 008 m Hea ring all Busin . Pr Mc ess es C C com racken ident T omm odd ittee test mitt ifi Pay e me e on t ed be nt fo h Req uire s Tax R e Elect re the epo ronic me nt. rting

8 7, 200 July 1 rticipated a NSBA p business s all m s e SBA’ in a le at th y b a t d n rou ocac of Adv Office s a proposed us to disc le with small ru E-Verify stakeholders. ss busine

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July 15, 2008 Policy Forum a policy Staff attended ato Institute forum at the C ic Platforms on the Econom l Candidates of Presidentia Obama.

McCain and

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