My Business Advocate

Building Better Communities by Building Better Businesses

March 2010 Volume 30, Issue 3

Highlights of Coming Events

Lunch 'n Learn - How to use LinkedIn 3/4Chamber After Hours - Celebration Cinema-South 3/11Daylight Savings Time Begins 3/143rd Fridays! Networking Luncheon 3/19Business 'n Books Days (Volunteer to Read) 3/22-26Lunch 'n Learn LinkedIn Part 2 4/1Kentwood K-12 Career Expo 4/14Sport of Words Speech Contest 4/14Multi Chamber Speed Networking 4/163rd Fridays! Networking Luncheon 4/16

Calendars on Pages 6 & 7Log on to www.southkent.org for details.

Plans to Rebound in 2010? Not Without Employee Engagement

After a year of massive layoffs, longerhours, increased stress, and less pay,the number of employees who areactively engaged in their jobs declinedby nine percent from 2008 to 2009,according to Watson Wyatt’s EmployeeEngagement Index. And even morealarming, employee engagement amongtop-performing workers fell by 23percent over the same period, raisingconcerns for high employee turnoverrates in 2010.

Should employers worry?

In a recent online survey by

ExpressEmployment Professionals

, readers were asked if they would job hop for abetter job opportunity in the coming year. Of nearly 800 respondents, 81percent said, “Yes,” they would job hopin 2010.

What does this mean?

Attrition can cost companies thousandsof dollars per lost employee and can

signicantly impact the nancial

performance of a company. If employers want a chance to rebound in 2010 andavoid high employee turnover, theymust refocus their efforts on employeeengagement and make it a top priority.

How do employers get employees tore-engage in 2010?

There are many key tactics, butone tried and true method forrebuilding trust and increasingemployee engagement is throughcommunication.Employers should encourage theiremployees to ask questions, nomatter the topic, and address concernshonestly, no matter what the answer.Employees are more inclined to stayloyal and engaged to a company whenthey feel their concerns are beingthoughtfully considered.Employers can also increaseengagement by showing appreciation

and recognizing sacrices being made

by everyone. Find creative, low-costincentives. “If you don’t take a smallamount of money now to investin engaging your employees, youcould be out a lot more later when your employees decide to leave yourcompany for other opportunities when the job market opens back up,”said Robert A. Funk, CEO and co-founder for

Express EmploymentProfessionals

. This recession has had a huge impacton the workforce, those who havelost their jobs, as well as the ones who are worried they’ll be next inthe unemployment line. In timeslike these, it’s critical to rememberthat the real reason companies aresuccessful is because of their people.Businesses that invest in and valueengagement will achieve higher levelsof employee satisfaction, loyalty, and inturn, success. These are the companiesthat will come out on top and reboundin 2010.

For more information on workplace and workforce solutions, please contact

Express Employment Professionals,

616-281-0611 or casey.jankoska@ expresspros.com

How to useLinkedIn 201

April 1, 2010 11:30am - 1:00pm Hilton Grand Rapids Airport Register on line early!

If you know a little already or wereone of the nearly 60 business

leaders that caught the rst part

of this business building workship you can't miss this sequel on howto continue to build connectionsusing Linkedin.com.Admission includes lunch.Not-Yet Members - $21WKACC Members - $15(You must register by the end of theday on Monday, March 29

)After March 29 - $21

Sponsorships

of this great Hi-Tech,Hi-Touch workshop are availableat only $100! Contact julie@ southkent.org.

YOUR CHAMBER MANAGEMENT

2010 Board of Directors

*indicates Executive Committee Member

*John Crawford - President & CEO*Norine Mulvihill - American Diabetes Association,Board Chair*Todd Duncan - Consumers Energy, Past Chair*Kathey Batey - Priority Health/SpiritedPresentations, Senior Vice Chair*Matt Uhl - National City Bank*Danna Mathiesen - Mercantile Bank

*David Szidik - Proforma Innite Marketing

Brent VanderKolk - VanderKolk & VanderKolk PLC,Legal CounselRichard Chrisman - Hungerford, Aldrin Nichols &Carter, Chair, Fin. & Budget

Community Relations Division (Blue)*Kathey Batey - Sr. Vice ChairTommy Brann - Brann’s Steakhouse & GrilleRichard Chrisman - Hungerford, Aldrin, Nichols &CarterJohn Schwartz - AT&TBrent Vander Kolk - Vander Kolk & Vander Kolk,.PLCLillian VanderVeen - Lenger Travel ServicesMember Relations Division (Red)*Matt Uhl - Vice ChairBetsy Artz - Loeks Theaters (Celebration Cinema)Skip Knapp - EdwardJones InvestmentsTom Kruisenga - The Kruisenga AgencyMembership Development Division (Gold)*Danna Mathiesen - Vice ChairBob O'Callaghan - Citadel BroadcastingJoel Iakiri - Business Interconnect Group, LLCFinancial Development Division (Green)*David Szidik - Vice ChairBrent Holland - Chameleon LtdCarol Crawford - The Alternative BoardDan Van Dyke - PDS Group LTDDenise Hughes - D2 MarketingRob Wells - Vantage Pointe Financial

Ex-Ofcio

Jack Poll - City of Wyoming, MayorRichard Root - City of Kentwood, MayorCurtis Holt - City of Wyoming, ManagerBill Doren - Chamber Foundation Chair

My Business Advocate,

Building Better Communities by Building Better Businesses

Opinion by John

March 2010By John J. Crawford, Jr.President & CEO

Taxing Issues Tough Issues

Kentwood and Wyoming are holding very importantmillage elections on May 4. We’ve lost state and localtaxpayers and our municipalities are facing some real andserious cash shortfalls. Fewer taxpayers mean higher taxrates, all things being equal.In Kentwood, voters will be deciding a 2.0 mil propertytax hike and in Wyoming, the amount will be 1.25 mils.In both cases, the city will use the money their generalfunds, the majority of which (about 70%) is spent onPolice and Fire services. Neither city has an Income Tax.

Businesses Also Pay Taxes on ‘Stuff’ IN TheirBuildings, Which Homeowners Do Not

For each $100,000 Market Value ($50,000 SEV), theKentwood tax hike is $100 per year and $ 62.50 inWyoming. A business with $150,000 SEV in Kentwood would see a jump of $300 in taxes, while their Wyomingcounterpart will pay $187.50 more. Two main causes of the problem are 1) a sizable cut instate revenue sharing and 2) (probably the bigger hit) a

signicant decrease in property values, upon which the

taxes are based.

Fewer Taxpayers Means Higher Tax Rates

The Grand Rapids Press reported that the 2010 valuesdecline in Kentwood is in the 7% to 8% range while theWyoming drop is about 8% or 9%.Actually, because of these drops, in many cases, propertyowners could see a small decrease in their tax bills even with the tax rate hike! The cities’ cash crunch is real and I can say that it is notcaused by mismanagement. Our cities have both beengood stewards of the money they do receive. They’ve beenscaling back operations the last few years. Both citiesoften receive very high scores when it comes to deliveredcity services.

Business Cash Crunch is Also Real

One Contractor Member located in Wyoming sent me a listof the following other increases hitting his 10-employeecompany this past year.

Michigan Unemployment Tax Rate JumpFederal Unemployment Tax Rate Jump

(Continued on page 8)

••

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Nutrition 'nMore

has issued a challenge to ourmembership. Participants will receive:A Personal CoachFree body analysisGroup supportWeekly prizes for most weight lossNutrition informationNew friendships, contacts and funChallenges start soon so don't delay.Contact Dorris at 616-455-1775 andinvite friends, family and co-workers. The more the merrier and the biggerthe payout to the biggest losers.••••••

Government Cracks Down on Misclassied Employees

A recent federalstudy reportedthat 3 out of 10 companiesmisclassifycontractors to generate over $7billion for government agencies overthe next ten years. It’s a problemthe government is taking veryseriously, and you should too.Companies who incorrectly qualifyemployees as independentcontractors could face the cost of back taxes along with any penaltiesand interest incurred. Protect your company with accuratedocumentation and appropriatetreatment of contract workers.

Independent ContractorTreatment

When determining the classication

of a worker, the Internal RevenueService (IRS) evaluates factors likeinstructions and training providedby the company along with a

worker’s ability to prot or suffer

loss.

Workers classied as independent

contractors are not required tofollow instructions on when, where, and how work is conducted.So, if you’re providing detailedinstructions on how work isto be completed or training oncompany processes, you may beincorrectly qualifying an employeeas a 1099 worker. Contractors arenot employees and should not betreated as such. Treat your(continued on page 10)

SAVE THE DATE AUGUST 27 & 28

MILES AND MILES OF COOL CARS!

employees, which could equate tomillions of workers not receiving the

benets guaranteed to them by law

and huge tax fund losses for thegovernment. Those losses could alsoresult in higher tax cost for regularemployees and businesses.With federal and state agencies

facing dismal budget decits, the

Department of Labor is expectedto crack down on employee

misclassication. President Obama’s

2010 budget anticipates the federal

onslaught against misclassied