Southern Business Journal by The Southern Illinoisan

Serving 18 Illinois counties • www.sbj.biz • May 2015

THE BUSINESS OF OUTDOORS

Stimulating the economy one visitor at a time | Page 4

Directory of Advertisers

Inside MAY 2015

YOUR BUSINESS Illinois Pregnancy Fairness Law delivers challenges to Illinois businesses: After careful evaluation, an Illinois company hires a new director of purchasing. Three months later, it receives a discrimination charge filed with the Illinois Department of Human Rights (IDHR) alleging unlawful discrimination from a candidate who wasn’t hired. That candidate disclosed during her interview that she was taking fertility drugs and was under doctor’s orders to stay off her feet for the following two weeks.

PAGE 6 INVESTMENTS Leaving your legacy and a philanthropic strategy: Affluent investors who are charitably inclined may have specific philanthropic and estate planning goals in mind, but may not be familiar with the many vehicles and trust structures available to help them implement their goals.

PAGE 7 WORKPLACE Employers should encourage work/ life balance: What’s more important than money to your employees? If you ask today, you might hear the term — work/life balance. In fact, some of your employees

could begin to measure their own career success on whether or not they attain this balance. Also important to note is that striving for and attaining work/life balance has other benefits.

PAGE 9

Futiva........................................10 John A. Logan College .............16

SMALL BUSINESS Navigating worker’s compensation: Worker’s compensation presents a significant challenge to small businesses. Often times, businesses feel that they are held hostage by the medical community, the employee and attorneys when dealing with a worker’s compensation claim. Workplace injuries and illness are costly, both directly and indirectly, to the employers.

Leading Lawyers ...................... 13

PAGE 12

SIU Credit Union ...................3, 11

Pepsi MidAmerica................... 20

ACHIEVEMENTS Who’s in the news: Find out who has been hired, promoted or received honors for efforts in businesses. Be sure to check out latest Faces in the News collection, too.

PAGES 14-15 FINE PRINT What’s happening: See who’s on the move with new building permits, as well as those who haven’t been as fortunate.

SIU Small Business & Admin.....5 Southern Illinois Healthcare ...18 Southern Illinois University ...... 8

PAGE 19

Williamson County Airport ......15

The Southern Business Journal is a publication of The Southern Illinoisan. Contact us via mail at 710 N. Illinois Ave., Carbondale, IL 62901, or at P.O. Box 2108, Carbondale, IL 62903. Also reach us on the Web at www.sbj.biz and via email at SBJ@ thesouthern.com. The Journal is published 12 times per year monthly and distributed by The Southern Illinoisan and www.thesouthern.com. Copyright 2015 by The Southern Illinoisan, all rights reserved. A subscription may be obtained by calling 618-5295454 or 618-997-3356, or by visiting our website.

Publisher John Pfeifer 618-351-5038 Advertising Kim Fowler 618-351-5035 Design and Layout Rhonda May 618-351-5077

May 2015

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From the publisher

‌W

A fresh pair of eyes

ith her promotion to assistant branch manager of a Maryland library system branch, I now have the pleasure of discussing managerial tactics with my 28-year-old daughter. I’m not sure I saw this coming. With the retirement of her predecessor, the interview committee – including the branch manager and an HR manager – was essentially looking for someone with a personality and approach to the position that was the antithesis of the predecessor. The interview committee knew this, and my daughter knew this. They wanted enthusiasm; they got it. They wanted to create a customercentered experience for their patrons; that’s what they’re getting. They wanted

someone to look at the branch with a completely different pair of eyes; that pair of eyes belongs to my daughter. Only two possible problems here. First, this is my daughter’s first Pfeifer supervisory position. Not insurmountable, but a challenge to someone who really, really likes to be liked. The second problem is slightly more difficult. You see, as much as the interviewers and my daughter were on

board with the need for change, the five employees that she inherited knew of no such need. They were plugging along down the familiar status quo road, blissfully (or not) unaware that change – in the exuberant presence of my daughter – was headed their way. These employees aren’t bad, they’re not lazy, they’re not innately resistant to change; in fact, they likely rolled their eyes when asked to do the same things day after day and found their work somewhat mundane. But they had made some measure of peace with their comfortable work existence and change – without context or explanation – scared them. The solution involved just that — providing context and explanation. Last

week, my daughter had a short meeting with her five troops and explained the “why” behind some of the things she wanted to change. She asked for input. And then she’s proceeded to meet with each of them, one-on-one, to ask for input and to make certain they see that the changes are designed to improve the experience of their patrons rather than changing things for the sake of change. In short, she communicated. It’s great to see things with a fresh pair of eyes. It’s even better when you help everyone in your organization see the same new things you see. JOHN PFEIFER is publisher of Southern Business Journal and The Southern Illinoisan.

Southern Business Journal

May 2015

Cover Story

THE BUSINESS OF OUTDOORS Stimulating the economy one visitor at a time DUSTIN DUNCAN THE SOUTHERN‌

‌The great outdoors is great for sightseeing, exploring or any other recreational activity. It is also home to more than six million jobs and about $650 billion in outdoor recreation spending each year in the United States. Not only does it bring in hundreds of billions of dollars each year, it also generates about $40 billion in federal tax revenue and another $40 billion in state and local tax dollars, according to a report published by the Outdoor Industry Association in 2012. Not only do the outdoors itself provide opportunities

for spending and grazing upon beautiful features, but the elements outside contribute to the economy by those who use it as their canvas. Entrepreneurs have started landscaping and home construction businesses that when the weather heats up, those laborers go to work. Cindy Cain, executive director of Southernmost Illinois Tourism Bureau, said Southern Illinois’s natural attractions are among the best draws to the region. “As a leisure destination, the business of the outdoors is collectively our No. 1 attraction in southernmost Illinois,” Cain said. She said one of the major attractions the tourism bureau attempts to highlight when

showing off the region is the scenic Shawnee National Forest. Sites such as Bell Smith Springs, Rim Rock National Recreation Trail, Lake Glendale Recreation Area, Little Grand Canyon, Pine Hillls Ecological Area and the beautiful Garden of the Gods are all located in the national forest. State parks in Southern Illinois include Giant City in Makanda, Ferne Clyffe in Goreville, Horseshoe Lake in Olive Branch, Mermet Lake and Cache River State Natural Area in Belknap, Cave-In-Rock in Equality, Trail of Tears in Jonesboro, Fort Massac in Metropolis and Lake Murphysboro. SEE COVER / PAGE 17 BYRON HETZLER, THE SOUTHERN‌

Jacob Slosar rides in Creal Springs during the 2013 Great Egyptian Omnium Bicycle Race on Creal Springs.

Guide Dave Fitts descends one of the zip lines at Shawnee Bluffs Canopy Tour.

THE SOUTHERN FILE PHOTO‌

Garden of the Gods in the Shawnee National Forest is a Southern Illinois gem. The park features a number of picnic areas, trails, rock-climbing sites and more. For an outdoors enthusiast, it’s a perfect paradise.

May 2015

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Entrepreneur’s Mailbag

CAVANAUGH L. GRAY

The death of customer service

SBJ CONTRIBUTOR‌

‌Do businesses, big and small, dislike their customers? My reason for asking is that if companies truly understood how customer service positively and negatively impacts their business, it might cause them to reevaluate Gray everything that they do. Today’s media is filled with corporate missteps that elaborate on how Company A left its reputation in shambles due to poor customer service. Take, for instance, the time Jet Blue Airways left passengers headed to Cancun from

New York on a plane for eight hours with no food, and little information due to what the airlines blamed on inclement weather. With the adoption of social media, dissatisfied customers are now quick to grab their technological megaphones and let the world know that there is no fury like a customer scorned. This article takes a look at customer service by the numbers, as well as some major customer service missteps and how to avoid your own firestorm.

so many businesses continue to make the same mistakes over and over again. The following are a few interesting customer service facts. zz Seventy-eight percent of customers abandon a transaction due to a poor customer service experience. (American Express Survey)‌ zz Loyal customers are worth up to 10 times their initial purchase. (White House Office of Consumer Affairs)‌ zz It takes 12 positive experiences to make up for one unresolved negative experience. Service by the numbers There is no shortage of statis- (Understanding Customers)‌ zz News of bad customer tics related to customer service, service travels twice as fast, both good and bad. Despite all of this information readily avail- reaching as many as 16 people, compared to seven, for good able and seeing it done poorly news. (White House Office of repeatedly, it’s a wonder that

Consumer Affairs)‌ zz Seventy percent of the buying experience is based on how customers feels they have been treated. (McKinsey)‌

Customer service disasters Finding examples of poor customer service doesn’t take much research. You simply have to look around. The following are some customer service tales that I have come across over the years. Recently, baby food maker Beach-Nut began recalling products after a consumer found a small piece of glass in one of the jars. This action is contrary to a local pizza shop whose customer found glass on a pizza, and, upon notifying the company, was accused of staging the entire incident. A customer

of a retail giant goes to pick up an item of clothing he had paid for, and, after waiting an hour, was informed that his item could not be located. In the process, the customer claims to have been talked down to and was nabbed by security upon leaving after the rep assisting him failed to remove the security sensor. Social media feeds can be great for uncovering where customer service has gone wrong. An appliance repair person shows up at a customer’s home and misrepresents the truth about the work being completed, insults the homeowner and simply leaves without notice. I’m no expert, but that just might be the worst customer service experience I have ever heard of. See Gray / Page 17

Coming Sunday

may 17 in The Southern illinoisan Siu College of Business inspiring Lives....Transforming Business This special publication will highlight the mission of the College of Business and its impact on Southern Illinois. Read about some of the alumni, students and faculty who’s stories exemplify the college’s core values of excellence, access, knowledge creation, innovation and integrity.

www.business.siu.edu

Southern Business Journal

May 2015

Your Business Illinois Pregnancy Fairness Law delivers challenges to businesses new Illinois Pregnancy Fairness Law (IPFL), which went into effect Jan. 1. That pregnancy in the workplace should have legal protections is now well ‌After careful evaluation, an Illiestablished. The Pregnancy Discriminois company hires a new director of purchasing. Three months later, nation Act (PDA) and Americans with it receives a discrimination charge Disabilities Act (ADA) have long profiled with the Illinois Department tected qualifying pregnant workers in of Human Rights (IDHR) alleging companies with 15 or more employees. However, under the ADA, only employunlawful disees whose pregnancy constituted a crimination from disability under the ADA were entitled a candidate who to accommodations. Meanwhile, the wasn’t hired. That IPFL joins a chorus of states expandcandidate disclosed ing the right to pregnancy-related during her interview accommodations to applicants and that she was taking employees at Illinois businesses of any fertility drugs and was Blaisdell size. Moreover, the law includes a very under doctor’s orders to broad definition of the protected class stay off her feet for the of pregnant workers. following two weeks. She claims she The new law reshapes Illinois busiwas passed over for the job in retaliness workforce decisions in a number ation for her request for a reasonable of ways by creating a protected class of accommodation for her pregnancyworker that includes not only women related condition. who are pregnant or who have expeAt an Illinois factory, weeks drag rienced childbirth, but also those who on as a pregnant line worker, under experience “medical or common condidoctor’s orders to limit lifting, tions related to pregnancy or childrefuses one accommodation after another as insufficient, birth.” Among its key elements: zz It is designed to afford job opporleaving the company with tunities to and keep this broadly defined few options to maintain any degree of productivity. pregnant class of worker employed.‌ zz It requires employers to provide Meanwhile, an Illinois “reasonable accommodations” to the tech firm finds its sales team down by one member expanded class of protected workers.‌ zz The employer must prove a high as an employee with threshold of “undue hardship” if it postpartum deprescan’t provide a “reasonable accommosion asks to not be required to interact dation.”‌ The law details a laundry list of with clients workplace accommodations such as: and requests zz Bathroom, water and rest breaks‌ two days off zz Private, non-bathroom space for a week. The expressing milk and breastfeeding‌ company zz Seating‌ struggles zz Help with manual labor duties‌ to find a zz Temporary transfer to a less strenreasonable uous or less hazardous position‌ accommozz Buying or modifying equipment‌ dation that zz Job restructuring/modifying‌ will enable zz Reassignment to a vacant position‌ her to do zz Time off work to recover from her job. conditions related to childbirth‌ All three zz Leave necessitated by pregnancy scenarios are now or a related condition‌ realities for Illinois While the typical nine-month businesses under the AMY BLAISDELL

SBJ CONTRIBUTOR‌

pregnancy is easily understood, the IPFL’s broader “medical or common conditions related to pregnancy or childbirth” could present the biggest ramification for employers. Infertility might well be a medical condition related to pregnancy. If a doctor orders a patient on fertility drugs to limit activity, such as walking, then it is unclear whether an employer will have to provide that accommodation or not. Postpartum depression would certainly seem related to pregnancy and may require a number of accommodations by businesses, including allowing lengthy absences, unless an employer can prove that providing the accommodation would result in an undue hardship. What may be the biggest challenge for Illinois businesses is that the IPFL seemingly puts the employee in the driver’s seat on accommodations. No matter how reasonable an accommodation may be, an employer can’t force it on a worker. The IDHR mandatory workplace poster states, “Are you pregnant, recovering from childbirth, or do you have a medical or common condition related to pregnancy? If so, you have the right to: … Reject an accommodation offered by your employer for your pregnancy that you do not desire.” One can easily envision a situation in which a pregnant worker repeatedly rejects accommodations that meet medical restrictions until she gets the accommodation that she wants. In addition to mandatory posting, the law expressly requires that employers include notification of the law and the rights provided thereunder in any employee handbook. Most importantly, employers should be mindful of the expansive nature of the pregnancy class in any communication with female job applicants or employees. AMY BLAISDELL is the leader of the Labor and Employment Practice Group of the St. Louis law firm Greensfelder, Hemker & Gale, P.C., which serves Illinois businesses with offices in Belleville and Chicago. For more information, visit www.greensfelder.com.

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Money Matters

Leaving your legacy: Philanthropic strategy are tax deductible. Donor-advised funds are particularly family friendly, as parents and children can consolidate their giving ‌Doing good when doing well: Philanthropy and the activities through a single fund account. In addition, children affluent family can be named as successors to a fund, ensuring the continuation Affluent investors who of a family’s giving legacy. are charitably inclined may Another significant have specific advantage of a donor-advised philanthropic and fund is its capacity to accept estate planning any one of a variety of assets goals in mind, as a charitable contribution. but may not be Checks/wire transfers, familiar with the commercial paper, CDs, mutual many vehicles and fund shares, publicly traded trust structures available to help McClatchey securities, certain privately held securities, bonds and restricted them implement stocks are all acceptable assets. their goals. Donors are able to In order to choose the most recommend how their advantageous charitablecontributions should be giving strategy, individuals allocated among the available and families must evaluate investment choices. As an a number of factors, such as added benefit, the account their need for current income, has the potential to grow over their desire to control and time — increasing the donor’s preserve assets during life and giving power. after death, and their specific The convenience and charitable intent, as well as administrative simplicity of important tax management a donor-advised fund allows issues. Charitable estatedonors to spread their grantplanning techniques can help achieve most, if not all, of these making out over months or even years, in accordance with their objectives. Donor-advised own personal-giving objectives. funds, family foundations, If you are considering a gift annuities and CRTs/CLTs round out the field of essential donor-advised fund, sunset rules, administrative fees and options that are available to management fees should be individuals and their families. discussed before you invest. SCOTT MCCLATCHEY SBJ CONTRIBUTOR‌

Donor-advised funds offer convenience and flexibility

A donor-advised fund is a tax-advantaged, charitablegiving vehicle that offers individuals maximum flexibility to take tax deductions and recommend grants to charitable organizations. By definition, donor-advised funds are public charities under Section 501©(3) of the Internal Revenue Code, and contributions to such funds

Family foundations: Building a legacy, reaping tax benefits Family foundations offer an effective way to pursue philanthropic objectives, involve family members in charitable activities, and reap tax and estate planning efficiencies. A family foundation derives its assets from the members of a single family, in which

the donor and/or the donor’s relatives play a significant role in governing and/or managing the foundation throughout its life. Aside from helping families channel their philanthropic ambitions, family foundations can form a legacy of community involvement and responsible citizenship for generations to come. And, as their founders soon realize, family foundations offer potential tax and estate planning benefits.

and/or transfer tax benefits associated with most charitable giving vehicles help reduce the cost of making charitable gifts, an individual’s own income or wealth transfer needs often determine his or her ability to give. To address both goals, individuals may want to consider other charitable vehicles such as a charitable remainder trust, a charitable lead trust or a gift annuity. A charitable remainder trust (CRT) can guarantee an Private foundations vs. supporting organizations income stream for you and your spouse, while minimizing current income taxes since In general, there are two you generally may deduct types of family foundations: the fair market value of the private foundations and charity’s remainder interest supporting organizations. in the CRT in the calendar Private foundations, the more year the CRT is funded. A common of the two, offer more CRT can also be an integral flexibility and control (i.e., part of a family business they can select and oversee succession plan. Lifetime their own board of directors stock transfers can be made and grant-making decisions), to a CRT and subsequently while supporting organizations redeemed by the closely held enjoy more favorable tax treatment. Please keep in mind, corporation. The redemption funds the CRT with tax-free private foundations are heavily monies that subsequently regulated and closely watched. The regulations contain control can be invested to provide an rules on oversight and minimum income stream to the business annual payouts. In addition, the owner and spouse. CRTs are cost of establishing, staffing and set up to provide income to keeping your private foundation a beneficiary for a specified period of time. Once the period legally compliant can be expires, the remainder of the prohibitive. trust is transferred to the Gifts made to either type designated charities. of giving vehicle are generally A charitable lead trust allows tax deductible for the donor, you to place in trust assets yet these deductions differ that will be left to your heirs; depending on the foundation’s structure, the type of property/ however, you specify a set number of years during which asset contributed and the a fixed percentage of the value donor’s income level. As a general rule, however, all gifts to of the assets in the trust will a family foundation are removed be paid to a charity. You pay from the donor’s estate, thereby discounted gift taxes on assets avoiding estate and/or gift taxes. transferred to the trust and do not receive a charitable Balance giving goals and deduction. However, your heirs ultimately can receive trust financial planning assets free of estate taxes. A charitable gift annuity (CGA) While the tax deductions

is in some respects even more cost and tax effective than CRTs/CLTs. CGAs have no administrative or setup fees. Virtually any asset can be used to fund a CGA, and the charitable organization itself guarantees either immediate or deferred lifetime payments to the donor. The typical tax deduction available in the year’s assets are transferred to a CGA ranges from 30 to 45 percent of the fair market value of the asset. Including charitable giving strategies in your estate plan can be an effective way for you and your family to enjoy an income stream during your lives, earn tax savings and maintain a significant degree of control over assets, all while fulfilling your charitable goals. Please note, taxes will be due on the income stream provided. If you are creating a charitable-giving plan, consider seeking the guidance of an attorney, accountant or other trusted professional who is familiar with tax laws and legal intricacies. Obtaining assistance early on, and retaining such counsel on a continuing basis, is key to making responsible decisions. SCOTT MCCLATCHEY is a certified financial planner with Alliance Investment Planning Group, a Carbondale investment firm located at 115 S. Washington St. He can be reached at 618-519-9344 or scott@ allianceinvestmentplanning. com. He also provides investment, retirement planning and insurance services to SIU Credit Union members through the SIU Credit Union Investment Services partnership. Securities offered through LPL Financial, Member FINRA/SIPC.

Southern Business Journal

May 2015

Celebrating 30 Years

growing southern illinois…One business at a time Follow your dream and start your own business. We will show you how! starting a business in illinois TuEsDay, May 12–9 a.M. TO 11 a.M. Dunn-RichMOnD EcOnOMic DEvElOpMEnT cEnTER 1740 innOvaTiOn DRivE, caRbOnDalE REGisTRaTiOn fOR ThE sEMinaR is $15.

to register, or for information, call 618/536-2424, go online at sbdc.siu.edu, or register by email at sbdc@siu.edu. seating is limited at all workshops, reserve your space today!

success story: sbDC helps histology firm go beyond concept Maureen Doran was not quite ready to give up her career interests when she retired as director of the Southern Illinois University Carbondale Histology Center. So Doran, who has more than three decades histology experience, collaborated with Deborah Jung, a former business manager of the SIU School of Medicine’s physiology department, to create their own business. Saffron Scientific Histology Services launched in August (2014) and the Illinois Small Business Development Center at SIU has been instrumental in enabling them to turn a concept into a viable business. Doran and Jung, along with Elizabeth Dawn Grisley, a graduate student in molecular, cellular and systemic physiology, found a location and wet lab for the business in the Dunn-Richmond Economic Development Center. Researchers and medical professionals investigate disease processes and evaluate drugs and products using histology, which is the study of tissues. Saffron makes microscope slides used for research and diagnostic services. The company’s clientele includes researchers, veterinarians, physicians and others involved in research or medical fields. They found the startup assistance they needed at the SBDC, getting help with their business plan, financial projections, incorporation, other relevant applications and website. Most importantly, they say the SBDC helped them secure lab space that is cost efficient and well-suited to their business needs. —excerpt from University Communications and Marketing at Southern Illinois University Carbondale

to read more about saffron Histology services or to be inspired by our other success stories, visit us online at sbdc.siu.edu. The Illinois Small Business Development Center/International Trade Center is funded in part through a cooperative agreement with the U.S. Small Business Administration and the Illinois Department of Commerce and Economic Opportunity and hosted by Southern Illinois University Carbondale.

May 2015

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Workplace

Employers should encourage work/life balance ANGELA HOLMES-YOUNG SBJ CONTRIBUTOR‌

‌What’s more important than money to your employees? If you ask today, you might hear the term — work/ life balance. In fact, some of your employees could begin to measure their own career success on whether or not they attain this balance. Also important to note is that striving for Holmesand attainYoung ing work/ life balance has other benefits. Improved productivity, morale and workplace longevity all stem from having happy and well-adjusted employees. Employees who are happy at home do better at work. The workplace must be a happy place as well. Encouraging employees to operate within a culture that is supportive is truly best for all involved. Before getting your employees to Zen out and balance, maybe you should work on yourself. Where to start? Work/ life balance is something that employers should strive to encourage, but, more importantly, as a leader, are you doing this for yourself? These days, it is even harder to do this for yourself as we get busier and busier. Do you ever think about what we ever did with our hands before we had phones? How do you handle yourself outside of the office? WEB MD suggests the following tips to build work/life balance into your days: zz Build non-work activities into your schedule. zz Keep what makes sense and drop the rest. Do not allow your time to be zapped.

zz Outsource errands, eliminate flow issues, work ahead, plan. zz Exercise. zz Relax. I find that so many of us have been taught to react and overreact. People who do this think they are working and getting things accomplished, when, in reality, they are adding fuel to the fire. So much brain power and so much emotion can be spent reacting inappropriately to items that do not require such a reaction. Don’t sweat the small stuff. Oftentimes, it can take a major life-changing event for us to realize that some things just are not as important

as other things, and that is OK. Take care to react appropriately. Remain calm. This is easier said than done. Take my advice and utilize my tips for working toward a healthy balance. zz Make things as easy as possible for yourself. If someone offers to help you, let him. If the work is better suited to someone else, then give it to someone else. If the task if outside your scope, say so. Delegate if you are able. Suggest a team-based strategy. Include others.‌ zz Get rid of OCD tendencies. Things do NOT have to be perfect. I learned this once I

had kids. I learned quickly that there is more than one way to do things, and it is not always my way.‌ zz Turn off email notifications. In other words, make it so your phone is not dinging every second. It is very distracting, and it makes you want to check it all the time. Once you have turned off the notifications, you can decide for yourself how often you need to check it. You are an adult and should be able to manage your time appropriately. For example, when I am working on a hot item with a heavy deadline, I may check my email often, etc.‌

zz No phones at home or no phones with kids. You decide, and stick to it. Your family is watching you and paying attention to which is more important. As a matter of fact, I try to leave all work matters over the weekend to the end of the day. Some weekends, I don’t check my email at all.‌ Once you get yourself balanced, think about your workplace and how you can add items to offer balance. For example, what kind of break area do you provide? Is it clean? Is there fresh water? Is there decent seating? Is there a place where people can walk during breaks or lunches? Do you have healthy items in your vending machines? Even the smallest items are appreciated. Encourage and educate your staff on taking technology breaks. Encourage fitness and stretching. These are only a few ideas. I know that you can think of many. Again, work/life balance is good for the business in the end. It is also good for the employees as they can be happier and more satisfied on a daily, weekly and monthly basis. Happy employees are more productive. They have better and more inspired ideas. These ideas can lead to improvements that truly can save you money and/or improve your business. ANGELA HOLMES-YOUNG is author of “Bring It On: The Aspiring Professional’s Guide to Getting a Leg Up on the Competition.” Her book is available at Bookworm, iTunes Store, amazon.com and barnesandnoble.com. Angela is also the corporate recruiter for National Railway Equipment Co. (NRE). She can be reached at ang_holmes@yahoo.com or @A_Holmes_Young.

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Southern Business Journal

May 2015

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May 2015

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Investments Business succession/estate planning: Questions you need to ask issue for business owners. If you own your own business and are considering a business succes‌Do you have a business succession plan, there are five questions sion plan? Life-changing events you should address with your or retirement can bring on some financial advisor. Together, you will want to ensure you have a tough choices. It’s not unusual plan in place to help reduce the for business ownrisks associated with one of your ers to find a majormost important assets. ity of their wealth tied up in their company. This What other assets have is often a major you set aside to help fund provider for them your retirement? and their families. But when the time Tison Should you rely on your busicomes to sell their ness alone to fund retirement? businesses, many Just as your investments should owners often have not thought be diversified, so should your about how they would replace assets. Though it may be difthat important chunk of income. ficult to do in a business climate, Business succession can be an as a business owner, you should emotional, financial and timing save and build your retirement MICHAEL P. TISON SBJ CONTRIBUTOR‌

savings plan away from the business to work toward your retirement goals.

Have you considered whether your business is an asset you can sell? Whether or not you can find a buyer for your business depends on a variety of factors. Are there employees or partners who could continue to run the business after you retire? Will your business attract outside buyers? For example, companies that produce tangible goods and have positive cash flows can often be sold. On the other hand, specialty firms that rely on you and your skills alone, such as boutique consulting firms, are generally not salable. The truth is

that most businesses fall somewhere in between.

If you were to sell your business and pay the taxes on your gains, would the proceeds be enough to last for the rest of your life? It’s important to determine if you expect a similar level of income in retirement that you now enjoy from your business. As a business owner, you likely work very hard and your dedicated efforts are an important ingredient to your business success. The investment returns from your growing business may well exceed the investment returns from a prudent investment portfolio. In the long run, however, the

income derived from your valuable work ethic simply may not be replaceable. Business owners are often optimists by nature, and they take risks to grow their business. The risk of putting all your eggs in one basket may not work as well, however, when it comes time to build an investment portfolio.

What happens if you cannot be involved in running your business? Stories abound about business owners who are struck down by illness, death or disability, leaving business partners and spouses to figure out what comes next. If more than See Tison / Page 17

Southern Business Journal

May 2015

Small Business

Navigating worker’s compensation

employees who are physically able to meet the demands of the job. These tests also allow for establish‌Worker’s compensation presents ing baseline physical data on the employee that can be used as coma significant challenge to small businesses. Often times, businesses parison in the event of an injury. Physical job demand analysis: feel that they are Having current physical job demand held hostage by the analysis that accurately and objecmedical community, tively measures the demands and the employee and establishes essential functions of attorneys when dealthe job is the key to both the proing with a worker’s active and reactive program. This compensation claim. information is required to develop Workplace injuan Equal Employment Opportunity ries and illness are Henshaw Commission (EEOC) compliant recostly, both directly employment post-offer test. The and indirectly, to the employers. medical community also uses this According to a 2011 article in an in the event of an injury to deterindustry education series, Fit2WRK, “the cost for all U.S. workers mine return-to-work ability and to out of work due to Musculoskeletal establish light or transitional duty possibilities. Disorders (MSDs) is estimated at Drug and alcohol testing: Ensuring $13-20 billion annually with india drug-free workplace through prerect costs between $26-110 billion employment, random and postannually.” Furthermore, the same accident testing can reduce the publication shared this compelling data from a National Safety Council number of work-related accidents and a drug-free work environment. cost formula: an employee injury Ergonomic risk assessments: with direct costs of $5,000, for example, will carry indirect costs of Reviewing injury logs and an ergonomic assessment can lead to idenabout $20,000, which would bring the total cost to $25,000. Therefore, tification of potential musculoskelusing this formula, it would take the etal and safety hazards. An assesssame company with a profit margin ment of potential areas will result in a correction plan to reduce risk. of 10 percent at least $250,000 of Education: Employee education revenue creation (and collection) to on proper lifting, body mechanics offset the expense. and micro-break stretching proDirect costs may include medigram are an important component cal costs, worker’s compensation to an injury prevention program. premiums and case management. Employee wellness program: An Indirect costs include productivity reduction, loss of employee morale, employee wellness program offers overtime pay, administrative costs, employees the opportunity to participate in an organization-led potential fines from regulatory healthy initiative. Healthy workagencies, etc. ers are at less risk for work-related In today’s market, it is imperainjury and illness. This program tive for small business to use can also help reduce the cost of every opportunity to participate in employer-provided health insurnavigating a claim and reduce the financial impact. Vital proactive and ance. A wellness program should reactive services exist to reduce the focus on smoking cessation, weight management and attention to biooverall worker’s comp cost. metrics and health risks. VERLINDA J. HENSHAW SBJ CONTRIBUTOR‌

Proactive services

Pre-employment testing: Both Reactive services medical and physical demand testEmergency medical care: Develop ing ensure that employers are hiring a relationship with a quality

occupational medicine facility that can be used during business hours to reduce the number of costly emergency room visits. Injury navigation: Injury navigators work for the company to communicate and coordinate between medical provider, employee, insurance company and employer. They assist in developing and monitoring return to work for light or transitional duty. Fit for duty testing: Testing the ability to complete the essential functions of the job for an employee, who has been off work for either work or non-work related injury or illness, is key to ensure the employee is safe to return. Light duty/ transitional duty program: Many employers are leery about bringing an injured employee back to work; however, this is a key component to reducing losttime days and lowering the overall cost of a claim. It is important to bring back those employees with restrictions on modified duty as soon as possible. Research shows that the longer employees are completely off work due to a workrelated injury, the less likely they will return. These components of a workinjury program are key to reducing both the direct and indirect costs of work-related injuries and illness. The cost to provide these services is typically less than 1 percent of the overall total cost of an injury, and it is often returned to the business through the savings that a company realizes from both premium discount for being proactive and the reduction of lost-time days. VERLINDA J. HENSHAW is administrative director of SIH/RIC Rehab Outreach Services and can be reached at Verlinda.henshaw@sih. net.

May 2015

Southern Business Journal

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Peer Reviewed. Leading Southern Illinois Lawyers

These lawyers have been recommended by their peers to be among the TOP LAWYERS in the area(s) listed under their names. Less than five percent of all lawyers licensed in Illinois have received the distinction of being a Leading Lawyer. William L. Broom, III

Barrett Twomey Broom Hughes & Hoke LLP

Carbondale

618.457.0437

Patricia A. Hoke

Barrett Twomey Broom Hughes & Hoke LLP

Carbondale

618.457.0437

Kenneth R. Hughes

Barrett Twomey Broom Hughes & Hoke LLP

Carbondale

618.457.0437

Michael R. Twomey

Barrett Twomey Broom Hughes & Hoke LLP

Carbondale

618.457.0437

Mark J. Ballard