Simplifying Retirement

Brought to you by Darrin J. Shallcross
 In conjunction with Lincoln Financial Advisors, a registered investment advisor.

Retirement planning can seem complex and intimidating, which explains why some people delay doing it. However, with the appropriate help from a knowledgeable financial advisor, preparation can be a straightforward process that produces a sound strategy and a sense of security. To simplify your planning, consider pursuing these 10 steps:

1. Shift your viewpoint.
In retirement, you must go from accumulating wealth to providing a lifetime income stream while preserving wealth. If you accept this focus early in the retirement planning process, then you can go from being a great saver to being a great saver with a rational retirement income security plan.

2. Review your anticipated incomes needs.
Calculate all the necessary expenditures required in retirement as well as the unnecessary but desirable ones. Be inclusive so that you can gauge the scope of expenditures accurately. This is the most critical step in the process because it provides the foundation for all other financial planning.

3. Conduct a comprehensive revenue review.
Start by collecting information on any pensions you may receive. That includes pensions paid by corporations, governments or other organizations. Know the amounts due to you and the methods of payment – and especially at what age you can begin drawing benefits. Do the same thing for other accounts, whether they are savings or defined contribution plans, like an IRA, a 401(k), a SEP or an annuity.

4. Know your Social Security benefits.
Social Security could be an income source in retirement, so it should be included in a revenue review. Because of its complexities, Social Security calls for a level of diligence and understanding beyond that required with other revenue sources. The Social Security Administration can provide information on what you’ve paid into the system and what you can expect to receive. It is important to know what your spouse’s benefits will be as well. Also, make sure you understand the impact that divorce or remarriage may have on benefits.

5. Factor in inflation’s impact.
It’s important to understand the impact long-term inflation will have on retirement investments. Unfortunately, many people fail to include calculations for inflation in their retirement planning preparations. Even low levels of inflation can erode the buying power of the dollar. For example, 3% inflation over a 24-year period will double your income needs. So, you need to create a retirement plan that has the potential to increase your income over time.

6. Prepare for health care costs.
Good medical care is vital in retirement, and figuring the costs now ensures it will be available when needed. Those costs could amount to as much as $1,000 monthly. A comprehensive study of medical benefits and costs should include consideration of long-term care insurance, supplemental health care insurance and a review of any medical benefits for which you may be eligible. For the latter, be sure that you understand coverage and co-payments.

7. Develop a tax management strategy.
Retirees need to convert the appropriate assets to income. Every conversion choice carries a tax implication. Wise choices can minimize taxes thus boosting income. It is important to compare your current tax bracket with the one you probably will occupy during retirement.

8. Understand market volatility.
All markets, including those for stocks and bonds, rise and fall due to a variety of circumstances. An individual’s ability to tolerate these changes will have a huge impact on the composition of his or her retirement portfolio. Recognizing the inevitability of market fluctuations (and knowing your tolerance level) allows you to create a strategically balanced portfolio. That means you can tolerate the changes as they occur. Financial planners know of many strategies that can help meet your needs and ensure a sense of security.

9. Get important documents organized.
Everybody should have some basic documents prepared, including a will, a living trust, a health care power of attorney and a financial power of attorney. These basic legal tools can ensure that inheritance matters are handled in an orderly and timely fashion. They also help loved ones make important decisions and gain access to needed funds if you become incapacitated.

10. Review your retirement plan.
Regular meetings with your financial planner give both of you the opportunity to check that your retirement plan’s goals are being reflected in its performance. They also allow timely refinements to the plan required by major changes in your life. Annual reviews can be devoted to strategic issues, while quarterly meetings can cover tactical matters, like rebalancing portfolios.

CRN201305-2080409

Darrin  J. Shallcross is a registered representative and investment advisor representative of Lincoln Financial Advisors Corp., a broker-dealer (member SIPC) and registered investment advisor, 568 Pennsylvania Ave Glen Ellyn, Il 60137 630-469-752, offering insurance through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a tax advisor regarding this information as it relates to your personal circumstances. The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients

 

 

Posted in Shallcross Financial Planning | Tagged , , , |

EAPs: Taking Emotion Out of Work

Written by Bernie Dyme – A friend of Marcus Newman and GCG Financial.

The other day, I heard about an interesting study by Duke University researchers. It found that doctors often make different recommendations for their patients than they do for themselves.

In a nut shell, when trying to determine a course of treatment for themselves, physicians let their emotions get in the way.

And why wouldn’t they? It is hard to separate your own emotions from something that very directly affects you and/or your loved one.

Well this got me to thinking about the workplace and managing employees. No matter how good we are as managers, it’s hard to separate our personal and professional roles with respect to employees. We are only human and our emotions often get involved in making tough employee decisions.

How often for instance have you or any of your managers been confronted with an employee with job performance issues who offers that problems outside of work are causing them? And how often have you or your colleagues “given the employee the benefit of the doubt” or gotten really angry at her “excuses”?

Be honest.

Of course you’ve had one of these reactions. We are all human and, like the physicians in the Duke University study, we are all affected by our emotions.

That’s why an employee assistance program (EAP) is so valuable. It helps take the emotion out of an encounter and allows you, the manager, to deal very specifically with the performance and workplace behavior.

You can still be compassionate, but you can leave the emotions to the EAP and, in essence, be of greater help to the employee by offering him or her confidential help by a professional.

I’ve been in the EAP field for 30 years and have always counseled managers to see the disciplinary process as something that runs parallel but not in lieu of any emotional issues.

When performance issues and emotional issues are treated by these two separate but parallel means, the employee has all of the tools to get better in both his work and personal life. He can’t use work or home to avoid dealing with whatever it is that is causing him pain which usually leads to a successful outcome in both areas.

Also, consider using EAP before, during and after any constructive confrontations with an employee. Long term success comes from this close collaboration between managers or HR and the EAP which can only occur if you have an EAP that is highly accessible and visible.

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Questions or comments? Please call Marcus Newman RHU, CBC at GCG Financial, Inc.  847-457-3058.

Posted in GCG Financial | Tagged , |

1099s: A little form with a painful bite

When Congress tried unsuccessfully to expand the Form 1099 filing requirements a couple of years ago, at least one thing was accomplished. It raised awareness of an important IRS business reporting rule. And at $100 per infraction, the penalty for ignoring this regulation can be painful.

That’s right; the IRS can fine you $100 for each 1099 form that you fail to file, up to a maximum penalty of $1.5 million.

The most common Form 1099 is the 1099-MISC, which is used to report payments of $600 or more to vendors who provide services to your business. Examples include payment for repairs, accounting services, consulting fees, and legal advice. Normally if the vendor is incorporated you do not need to send them a 1099-MISC, but there is one important exception. All payments to attorneys must be reported, whether they are incorporated or not.

Timely filing of the Form 1099-MISC is also critical. The form must be filed with the IRS by February 28 (unless you file electronically). But you must provide the vendor a copy of the form by January 31. Electronic filing is optional if you file fewer than 250 forms. If you have 250 or more forms to file, you are required to file electronically. The deadline for electronic filing is March 31.

There are a few more twists. If you pay a vendor for parts and services, you must include the total of both of these on your form as long as the parts or materials were incidental. Reporting is also required if you provide non-employees taxable fringe benefits or pay fees to your board of directors.

Correct reporting requires you to confirm the vendor’s tax identification number.  Before you make a reportable payment to any of your vendors, the vendor should provide you with a Form W-9 (Request for Taxpayer Identification Number and Certification).  The IRS also has a Taxpayer Identification Number Matching Program that allows for the matching of vendor TIN’s with IRS records before submitting information returns to the IRS.

There are other types of Form 1099 to watch for. A Form 1099-INT is used to report interest payments of $10 or more to an individual in the course of a trade or business. Form 1099-R is used by investment companies to report distributions from retirement accounts and annuities. And businesses that make loans are required to disclose canceled debt on Form 1099-C if the amount is $600 or more.

Transmitting the Forms 1099.  Copy A of all paper Forms 1099 (as opposed to forms transmitted electronically) must be submitted to the IRS along with Form 1096.  Each type of Form 1099 must be transmitted with a separate Form 1096.  For example, if a business files Forms 1099-MISC and 1099-INT for a given year, the Forms 1099-MISC must be transmitted with one Form 1096, and the Forms 1099-INT must be transmitted with another Form 1096.

If these reporting rules leave you uncertain of your responsibilities, give us a call. A little attention paid now might help prevent a painful penalty later.

We hope this information is helpful.  If you’d like to discuss the new Act and its effect on your situation, please contact Karen Snodgrass or Deanna Salo from Cray, Kaiser Ltd. (630-953-4900), a strategic partner with the Chicago Family Business Council.

 

Karen Snodgrass CPA                                      Deanna L. Salo CPA

Cray, Kaiser Ltd.                                             Cray, Kaiser Ltd.

1901 S. Meyers Road                                      1901 S. Meyers Road
Suite 230                                                         Suite 230
Oakbrook Terrace, IL 60181                           Oakbrook Terrace, IL 60181
Phone: (630) 953-4900 x248                           Phone: (630) 953-4900 x210
Fax: (630) 953-4905                                        Fax: (630) 953-4905

Email: ksnodgrass@craykaiser.com                  Email:  dsalo@craykaiser.com

Posted in Cray, Kaiser Ltd. | Tagged |

DePaul’s Developing Sustainable Strategies Lab

How did this lab get started?
On one level, this lab is an extension of DePaul’s sustainability network. After we audited some of DePaul’s activities around sustainability, we decided to venture into the academic aspect of sustainability. As a university, we educate. We decided not to educate just our graduate and undergraduate students; we wanted to offer a great opportunity for business executives and corporations. We want to challenge people’s assumptions. This is a unique opportunity, not to just learn but to also bring in questions that they can develop into strategies. Early on we decided to call this program a lab versus a workshop. It’s an opportunity to test your ideas.

What is the purpose of this Lab?
The purpose of this Lab is for business owners to find new and more effective ways to define and address a pressing strategic issue, idea, challenge, opportunity, question or problem that they and their organization face.   We want participants to walk away with an executable strategy, and then boldly take action.

So what makes this lab different than other sustainability workshops?
Info seminars on sustainability and workshops teaching best practices are prevalent now through schools and private consultancies.  But we believe the key to solving sustainability issues is to train leaders to think critically.  Sustainability is about understanding the complex systems impacted by our decisions both personally and professionally.  We challenge our participants to think beyond sustainability and being “green.”  And unlike traditional workshop or seminar format filled with talking heads, this Lab uses project-based learning with participants engaged in real projects in their own companies.

Who should attend this lab?
This Lab practicum is designed to offer senior and mid-level executives a way to challenge, expand and shift their thinking about organizational issues from a narrow focus on sustainability towards a broader framework for building integrative sustainable management practices. The Lab is the expanded, senior level version of the Capstone/Practicum course in the innovative, interdisciplinary Master of Science in Sustainable Management.

Is this lab mainly for those who work in a corporate setting?
Not at all.  We are targeting a diverse range of organizations – commercial, nonprofit, and government – who are engaged in various ways and at various levels.  We encourage organizations to send individuals, or better, a small team to work on some challenge or opportunity they see dealing with sustainability. This is also in keeping with DePaul’s Mission and Values of supporting diversity/different points of view.

How does this lab fit in with the mission of DePaul University?
From our experience in the sustainable management education field over the past several years, we are more convinced than ever that there is the need for senior and mid-level managers to have a more integrative perspective regarding challenges, and not just in sustainability.   DePaul provides the perfect setting for our participants to learn just that.  This lab stems from DePaul’s firmly rooted tradition of providing students with a “greater perspective” in an urban multi-cultural setting.

Link to Video.
DSS Lab e-brochure

 

For more information, please contact:
Ron Nahser PhD
Senior Wicklander Fellow
Director, Urban Sustainable Management Programs

Institute for Business and Professional Ethics
Driehaus College of Business
DePaul University
1 E. Jackson Blvd Suite 5000
Chicago, IL 60604-2287
O: 773-325-1146
RNAHSER@depaul.edu

Posted in DePaul Spotlight, News |

My New Year’s Resolution

My New Year’s Resolution

As this new year begins we are urged by tradition to make resolutions. The core of a resolution is self- improvement, one of the tenets of the CFBC. How do we pick a resolution? We are assaulted on TV and in books by a myriad of ideas to help us live healthier lives, more mindful lives, more productive lives, happier lives. How can we tell the realies from the phonies? The right paths for our resolutions may be out there somewhere, but they are hidden someplace between the hawkings of Kevin Trudeau and the teachings of the Dalai Lama.

As Jack Palance’s character said to Billy Crystal’s character in the movie, “City Slckers,” the secret of life is “one thing,” something we have to figure out for ourselves. The only way to know is to pick something that seems “gut right” and give it our best effort. If it’s not right, move on to something else.

I read an article in the July, 2013 issue of Wired Magazine about a fast growing trend in Silicon Valley — meditation training.
It was noted that there are “dozens of employee development programs at Google that incorporate some aspect of meditation or mindfulness.” The practice caught on at Google when an employee “packaged contemplative practices in the wrapper of emotional intelligence.” Bing! Bing! Bing! At a meditation related conference top execs from LinkedIn, Cisco and Ford were featured speakers.

If it’s working for individuals in huge companies, it’s worthy of a try in my entrepreneurial endeavors and my life. That’s my resolution.

I wish you health, happiness and prosperity in 2014.

JF - signature_cvent

Posted in Uncategorized |

Plan The Work – Work The Plan

We’ve all heard the clichés of how critical goal setting and planning are to the success of a business, but still many business don’t do it … or start a plan, but then lose track of that plan during the year. It’s important to lay out your goals for the year, and how you realistically plan to achieve them, including detailed projections. And then track it! Fortunately for most CFBC members, they have done this already. But if you haven’t, get to it!

Goals. Keep them simple, memorable and inspirational for the whole team. Hitting key benchmarks; 1,000,000 units sold, $X million in revenues, or a certain profit or efficiency levels – can keep everyone focused on the key drivers of the business. The book, The Great Game of Business, provides nice guidelines on setting the goals (or rules of the game per the book). Then, drill down to individual departments and individual goals, the summation should total the company goals.

Strategy and Tactics. Plan how you will achieve these goals as company, division and individually. If you want to increase sales, are you going to use the same tactics or change things a bit? Are you going to use technologies more effectively? This applies to nearly all of us. Some need to data mine the information we’re already collecting, some can use social media more effectively, some can use internet and intranet sites to make information flow more efficiently with employees, vendors and clients. Look at your goals and key objectives and find one area you can be more efficient in using technology. Of course, there are a myriad of strategies and tactics – and you should review many of them – but try not to implement too many at once and over burden yourself and your team.

Forecast. There are many forms of cash flow projections. The most effective, in our experience, seems to be a 13-week cash flow forecast that tracks cash in and cash out in all major categories. Many companies are often introduced to these tools when they are experiencing difficulty from their bank or consultant, and eventually find them so useful that they continue to use them even when their businesses are thriving again. A simple excel spreadsheet often can do the trick. Most bankers, CPAs, or business advisors can help you get started.

Tracking. Most people need someone to help keep them focused on the goals. Fortunately for the CFBC, forum members can act in this role for each other. Too many businesses lack that focus to track their progress. Select a regular time to review your progress with your team. In the Great Game of Business they stress a weekly Huddle. There are plenty of different successful options as long as you’re tracking your progress and making adjustments when you see something is not working. In every business there is usually something that is not working – or that could be improved – FIND IT!

Best wishes to all CFBC members for a successful 2014! If we can assist you in achieving any of your goals, please let us know.

Michael Moran, mmoran@americanchartered.com, 847.418.3226
Chris Prestegaard, cprestegaard@americanchartered.com, 847.956.3994
Ken Stemke, kstemke@americanchartered.com, 312.492.3133
Sarah DeRuntz, sderuntz@americanchartered.com, 312.492.3120

Posted in American Chartered Bank |

Sharing Our Experience

Last year we identified the need to make significant changes in our corporate culture. Our management had become complacent. In spite of our efforts to implement best practices, lean and improve our processes, we did not progress. We talked and talked about our culture, past and future, we promised and pointed to hope, but nothing changed.

Two things were obvious: we needed to change and we could not make it happen alone. We needed help.

I became aware of, and somewhat familiar with, Kiara and Mary Deibert. At a general meeting, Mary spoke and after I engaged her in conversation. I started to learn more about how Kiara could help us.

What I heard sounded good, but I had heard that tune in the past. We had tried consultants and only received marginal results at best. We couldn’t waste our time, energy and resources on more of the same. I sought out and spoke with some of my forum members and other CFBC members who had experience with Kiara. They were all very well satisfied. This led me to contact Mary to schedule a meeting to find out if she could help us and how. After a couple of meetings and some very tough questioning, Mary and I agreed Kiara could help us.

We are well into the process beginning with agreeing upon, setting and formalizing our corporate values. We then learned how to communicate openly and honestly with each other and our people. I had hoped to learn how most of us were close to understanding what I thought we all believed and lived. But that was just my hope. None of us were consistent and, in some cases, were pulling in opposite directions. 

Since we are now on the same page and became consistent in our values, direction and culture, we have been able to identify and move people into positions of higher functioning. With training and coaching, we are improving our management style and skills. We are now providing our people with a well-managed workplace that is rational and functional.

This has been a long process and sometimes difficult, but extremely worthwhile. We are now positioned to go from good to great.  Although we have not quite achieved breakthrough, we are on the verge. Currently we are negotiating contracts for two manufacturing opportunities which we could not have previously entertained.

Kiara has helped us organize, communicate and position staff with an effectiveness we were unable to achieve ourselves. Thank you, Mary and Kiara.” ~ Bruce DeMent, President of Kastalon, Inc.

Posted in Kiara |

President’s Message

At the Thanksgiving dinner table last week, I was looking at my relatives across a plate overfilled with food when I began to realize how lucky I am. I like my relatives as much as I like my friends and, to paraphrase an old quote, “I didn’t pick my relatives.” So, I sat back, smiled and enjoyed the moment.

Earlier this week I got the reminder and agenda for my next Sigma forum meeting. As I read it over, I considered my luck redoubled. I love the people in my forum. I truly look forward to being with them. Our meetings are just the right balance, vacillating between the serious and the sublime (depending on what happened to whom since the last meeting.) Over the years we have learned from each other. We’ve grown in “life savvy” together, living through short and long as well as mild and severe difficulties.

We self-moderate. Each moderator has brought the best out of us. We not only respect each other, but we trust each other. Being reminded of confidentiality is our call to attention. It’s our reminder that we are about to share information that, often, we entrust to no one else. Then we listen because we are genuinely interested. We ask in order to understand. Finally, we share, support and appreciate. No one (except the presenter) expects a payoff, but we all get payoffs, and they’re huge. Then we move on to dinner which is, well, a cross between a State dinner and a scene from Animal House.

Since July, Judy and I have begun our visits to all forums. The feedback has been helpful for tweaking various components of CFBC. A secondary benefit for me has been to witness the genuine connections and mutual respect within each forum. Outside in the parking lot, the members arrived as individuals, but inside, they became a unit, an ensemble — like a well-cast TV show. The banter reveals evolving chemistry among people who are often quite different from each other.

My forum has been around since the inception of CFBC and while people have come and gone, we remain solid. I don’t pretend to see our same closeness in the newer forums, but I do see the traces, the sprouts and the connections that promise the same feelings that I hold for my forum experience. In the longer established forums there’s an evident depth and practiced grace. I feel lucky to have witnessed this.

As you hold your next forum meeting, take a moment to sit back and look around the room. Recognize the value that each person brings, the personality that he/she brings that fits perfectly, like a puzzle piece. Then, consider the value that this collective brings to your life. I hope you feel as I do… that you are lucky to be part of it.

I wish you a happy, healthy holiday season and a prosperous new year.

JF - signature_cvent

Posted in News, Uncategorized |

Member Spotlight on AJ Jania of Diamond Envelope Corporation

CFBC: What year was your company founded?
AJ: July 2, 1984

CFBC: Tell us a little bit of the history behind the company.
AJ:  My father, Alan Jania founded the company with two other partners, the plant manager and the office manager, who have since retired. Diamond Envelope Corporation is an envelope manufacturing company focusing on direct mail and statement fulfillment applications. Alan’s first job was a bookkeeper at Transo Envelope Company. With a good solid work ethic, he climbed the ranks and eventually felt there wasn’t enough room for him to grow. He decided to leave and became a partner with Royal Envelope. He was with Royal Envelope for about 3-4 years and because of business differences about growth and the company’s future, he decided to leave and start his own company in 1984. I joined the company in 1990 full time. We are a three shift, seven day a week operation. We have clients throughout the continental United States and focus on direct mail with creative and impactful printing designs.

CFBC: What family members work with you in the business?
AJ: My father, Alan Jania, and my brother, Michael Jania, joined the company in 1995. My sister, Susan Jania, is also in the company and she joined in 2008.

CFBC: How did you hear about the CFBC and what motivated you to join?
AJ: I heard about the CFBC through my father and my sister. Diamond Envelope looked into the CFBC when they were still at UIC but didn’t decide to join. Alan received a call from Judy last spring and she came out and met with him. The motivation for us to join was so that we could get some outside perspectives on different business concepts. Our whole life has been Diamond Envelope with little outside experience and influence.

CFBC:  How has CFBC helped your company succeed?
AJ: We’ve only been members since March. So far, it’s helping Diamond to change or establish some new business models that hadn’t been previously looked at.

CFBC: What has been the most rewarding aspect of your experience with your forum?
AJ: The most rewarding aspect of my experience is that, through the retreat and meetings, I’ve been able to gather information and I have learned there are possibilities for greater success. I’ve also learned that there are many different roads and perspectives/methods to achieve success.

CFBC: Is there one thing you have learned from being a member of CFBC that has impacted your business or your life the most?
AJ: I’m already taking what I learned from forum and the retreat and applying it to my business. I’m learning that as a family business owner you need to concentrate more on working on the business instead of in the business. Work is not the only thing in life; you have to enjoy life and family outside of the business as well.

CFBC: What do you enjoy doing in your free time?
AJ: I enjoy coaching and volunteering with my kids’ sports activities as well as attending all their games and cheering them on.

CFBC: Name one person who had the biggest impact on you as a leader.
AJ: I would have to say my father. I grew up with him in the business; he taught me a strong work ethic, which I continue to follow every day. I also have many colleagues that have achieved success and I take their strong points and model after them.

CFBC: Describe your ideal customer.
AJ: My ideal customer is loyal and collaborates with Diamond as a partner versus just giving orders. They view us as part of a team process to produce a product that achieves success and results through direct mail.

CFBC: How does your Company celebrate successes?
AJ: Diamond Envelope celebrates successes with an annual customer appreciation day every summer. Every year we have an annual Christmas party. Everyone is rewarded for results and successes. We’ll host various lunches throughout the year for good production days and super sales days

CFBC: What was your first job?
AJ: This was my first job. I started, in May of 1986, part-time in the plant, in the shipping and receiving area. Then I moved into accounting full time in 1990 and then sales. Now I am Vice-President of Sales.

CFBC: Do you have a favorite song?
AJ: I have two favorite songs:
Back in Black by AC/DC (my favorite group)
Volcano by Jimmy Buffet

CFBC: What one book would you recommend to your fellow CFBC members?
AJ: Jack: Straight from the Gut by Jack Welch

CFBC: What are your plans for the future?
AJ: Our plans for the future are to find ways to make our business more profitable but achieving better manufacturing results and creating greater profit margins in sales though added value customer service. We will look to grow in other businesses that support or mirror our current operation.

 

Posted in Spotlight | Tagged , , |

WHERE HAS ALL THE GREAT TALENT GONE?

Employers across the country are wondering and asking one key question – Where has all the great talent gone? Why is it so difficult to find the best hires in nearly all business sectors, from manufacturing to professional services, when the US Unemployment Rate is still above 7%?

CEO’s who describe the skilled job candidate shortage plaguing their companies sound like the Ancient Mariner: Water, water everywhere, nor any drop to drink!

One reason is that employers have not adapted to the new landscape of the labor market. Early in the recession, when millions of people were being laid off, it was reasonably easy to find an individual seeking employment that had the appropriate experience and skills required for a position. Now that a few years have passed, many unemployed candidates have been out of work for an extended period of time.

The better and more desirable people with the best skill sets and work experience are employed and are not desperate for a new job. Interestingly, the long-term unemployed make up more than 38% of the jobless market today.

The take-away for employers with job openings is to recognize that the candidate market has changed. Demand and competition for talent has increased substantially. To be competitive, employers will have to re-evaluate both the job fit requirements and the overall compensation package. Are employers asking job candidates to do too much work and paying too little?

Additionally, why are new college graduates not finding jobs as quickly as they have in the past? Most companies have slashed and burned their Training and Staff Development Departments during the economic downturn. Companies have not been hiring new college grads simply because training and mentoring isn’t available. Employees and managers are doing more work and have less time to do it. Employers are begging for talented individuals with 3+ years’ experience who can hit the ground running. Smart, competitive companies are beginning to make the time to train and mentor. This can be costly, but the payback is substantial.

If the traditional recruitment methods are not working, employers should consider the following suggestions:

1. Develop a recruitment strategy with a timeline. Write creative ads that draw candidates to your doorstep. Employers need to do their homework and evaluate which job boards are worth spending their recruitment dollars.

2. Partner with universities and community colleges. Companies need to go to these institutions personally and make a case for their company being the best place for the school’s top graduates. Connect and network with deans, professors, and placement staff to convince them of the company’s assets, such as its culture, opportunities for growth and bright future. Just posting job openings on university career boards or participating in college job fairs no longer guarantees the candidate of your dreams.

3. Pay current employees for referrals. Some employers cringe at this thought but keep in mind, it’s much cheaper than running multiple ads or paying recruitment fees.

4. Use your six degrees of separation. Company leaders never know who could be in their extended networking circle that might be a great fit for a job in the company. After all, social networking as a premiere recruiting strategy didn’t start with LinkedIn or Facebook.

The Chicago Family Business Council is a primary example of where you can begin to network. Go beyond your Forum Members – put the word out to all of the CFBC members when filling positions.

Good luck and happy hunting!

Mary Deibert
President
KIARA

Posted in Kiara, Uncategorized |