Brooke Chase

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So far Brooke Chase has created 60 blog entries.

Quiet quitters, snowflakes: Debunking generational stereotypes in the workplace

office types graphic

Whenever a new generation comes through, it stirs conversations about how much this new cohort will disrupt the way we work. Such was the case with millennials, now it’s Gen Z and soon it will be Gen Alpha creating headlines. And while there are natural differences due to the environments in which each generation is raised, there are actually far more commonalities.

But we often stick rigidly to stereotypes: Gen Z professionals hate work and are all quiet quitters, boomers don’t want to learn new tech and are resistant to embracing artificial intelligence.

In a multigenerational workforce, there are common myths that may be harmful to the workplace at large. To make inclusive and dynamic teams, people from all age groups should have a voice, and be free from age bias. Here’s a myth buster:

Myth: Baby boomers aren’t embracing new technology.

With the boom of AI, the age-old proverb “you can’t teach an old dog new tricks” has arisen once again. But it’s hugely misleading. No matter the sector, workforce or generation, employees are learning new skills as jobs become inevitably digitized and automation-driven. Naturally, there will be exceptions, but that’s the case for all generations.

And it’s not just older workers that we make assumptions about. Evidence has emerged to show that Gen Z actually isn’t as universally tech savvy as older generations have always presumed, at least with workplace tech. Meanwhile, older generations have their finger on the pulse when it comes to workplace technology and are ready to learn more.

Employers who have leaned into this myth have potentially caused more damage. Visier’s newest skills report found that nearly half of all surveyed individuals admitted feeling disengaged from their work because of the lack of skills development and training opportunities. Baby Boomers and Gen X actively seek ways to acquire new skills.

“It’s even surprising that experienced business leaders spend more time learning about emerging technologies than their less-experienced counterparts,” said Dr. Andrea Derler, principal of research and value at people analytics and workplace planning software Visier.

And 56% of C-suite executives (assuming that often more tenured and senior employees are from an older generation) educated themselves on generative AI tools, whereas only 12% of entry-level employees (mostly younger generations) did.

Myth: Gen Z and millennials are lazy and don’t care about work.

Gen Zers have made themselves known for the quiet quitting movement, “lazy girl” jobs, leaving the office at or before 5 p.m., and keeping to a strict work-life balance no matter what. But millennials paved the way, pushing back on working conditions accepted by previous generations. Today, a popular belief is that the two younger generations don’t care about work and are lazy. However, the truth is that they prioritize flexibility and working for organizations with values that align with their own.

There are folks in both generations who have quickly risen to management positions and beyond and have pushed for real change in the workplace. Deloitte’s 2023 Gen Z and Millennials survey revealed that both groups consider their jobs vital to their identity. In fact, 62% of millennials and 49% of Gen Z view their work as more important than exercise, music, or hobbies, second only to family and friends.

“Millennials are some of the hardest working people in the workplace at the moment, but they have the element of mixing that with work-life balance that allows them to work a lot more productively, rather than just head-down for hours,” said Ollie Russell, U.K. head of sales at HR services company Employment Hero.

Niamh Spence, a U.K.-based communications consultant, said she sees this myth being perpetuated all the time. “People say they aren’t prepared to put in the work but they absolutely are,” said Spence. “They’re not snowflakes, they’re not work-shy. I actually think quite a lot of them are just time efficient and are aware of what they can get done in their workday.”

Myth: Your work hours reflect how hard you work.

This statement wouldn’t have been a myth 10 years ago. However, it’s still one that older generations are still leaning into.

“The older generation still think that you must be at your desk past 6 p.m. but it’s an older idea compared to the ones that come with the newer generations,” said Spence.

“There’s an argument to be had with that presenteeism of ‘I’ve sat at my desk for 10 hours today’ compared to someone who says they are only going to work when they know they are the most productive.”

Niamh Spence, a U.K.-based communications consultant.

The traditional workplace for desk-based employees was in the office, starting officially at 9 a.m. with many staying well past 5 p.m., even into the night depending on the industry. Visibility was a key metric to see how productive an employee was. The unspoken assumption was if you were in the office you were working hard, if at home, you had your feet up watching Netflix or other daytime TV. However, post Covid-19, that has gone out the door, at least for younger generations.

“There’s an argument to be had with that presenteeism of ‘I’ve sat at my desk for 10 hours today’ compared to someone who says they are only going to work when they know they are the most productive,” said Spence. “If it works better for you to have a really long lunch break to go to the gym or for a walk and it breaks up your day and it makes you more productive, then that’s fine.”

Myth: Younger generations don’t care about salary.

Gen Z and millennials face a lot of stress due to work pressures and worries about their financial future, according to the same Deloitte study mentioned earlier. “Gen Z, in particular, tends to be more financially conservative because they witnessed prior generations struggling,” said Derler.

Visier research shows that younger employees think about money and also want to discuss it. For example, they are more comfortable discussing pay compared to older employees, according to the survey. And 89% of Gen Z are open to talking about pay, even with their co-workers, while only 53% of boomers are willing to do so.

“This indicates that not only do younger generations think about their work, and if pay is equitable, but they will also inform themselves about salaries, and even discuss their thoughts with each other openly,” said Derler.

Myth: Older generations can’t grasp the importance of DE&I.

Younger professionals are known for taking a stand on social justice and ensuring those values integrate into the workplace. But they aren’t the first ones to make waves in this area.

“If you look at baby boomers, for instance, they were the pioneers of social change and at the forefront of the civil rights movement and strong supporters and starters of the feminist movement as well,” said Russell. “Saying they’re slightly out of touch is wrong. They were the pioneers.”

Today, we have seen a massive ramp up of what diversity, equity and inclusion looks like in the workplace. However, it doesn’t mean that the older generations don’t understand it.

Myth: Each generation is extremely different.

“With few exceptions, we don’t see big differences in our research across the generations,” said Josh Millet, founder and CEO of talent success company Criteria, which conducts an annual job candidate experience report. “The things that rise to the list for what’s most important to you in your next role tend to be pretty common.”

Those things that are on the top of the list range from work being meaningful, wanting more flexibility, work-life balance and career advancement and trajectories.

“These misconceptions can lead to biases, hinder constructive work relationships, and even result in harmful behaviors like microaggressions.”

Dr. Andrea Derler, principal of research and value, Visier.

In terms of priorities at work, Millet says that it’s not all that different. There will always be the core things that keep people at a job and the core things that push people to look for a new job. When we realize that, it can help people of any age work together better.

“These misconceptions can lead to biases, hinder constructive work relationships, and even result in harmful behaviors like microaggressions,” said Derler.

To combat that, she suggests that organizations share data about generational differences and encourage informal interactions between employees from all different groups. Things like reverse mentorships and one-on-one coffee chats can be helpful to provide those opportunities.

“As the workforce becomes more diverse due to shifting population patterns globally, it’s essential to bring people from all walks of life together in harmony,” said Derler. “Focusing on the similarities that unite them during work, rather than fixating on differences, is key to enabling effective collaboration.”

By |2024-03-05T15:05:47-05:00December 6th, 2023|Categories: Articles|

Is an ESOP Right for Your Business?

The National Center for Employee Ownership (NCEO) estimates that about 6,500 U.S. companies have employee stock ownership plans (ESOPs). Many owners of closely held businesses use these plans as an exit strategy. Although ESOPs offer a variety of benefits, including significant tax advantages, they’re not right for every company.

ESOP ABCs

The IRS defines an ESOP as a retirement plan that allows employees to own stock in the companies that employ them. Any company that meets the IRS requirements and has stock can sponsor an ESOP for its employees if the ESOP invests primarily in the securities of the employer.

To establish an ESOP, an employer typically creates a trust to which it will make annual contributions of either new shares of its own stock or cash to purchase existing shares. An ESOP also can obtain financing to purchase shares (with the sale price set by an independent business valuation professional). This is known as a leveraged ESOP. In that case, the company contributes sufficient cash every year to cover the principal and interest payments.

The shares in the trust are allocated to individual employee accounts. Employees usually become eligible for the plan after one year of employment but must be eligible after two service years. Shares are allocated using a formula, often in proportion to compensation. The allocation must satisfy IRS regulations.

A vesting schedule determines what percentage of their accounts employees are entitled to receive at termination, disability, death or retirement. This schedule is also subject to federal requirements. Distributions will be either lump sums or in installments and may be cash or shares, depending on certain circumstances.

Key Advantages       

One of the main draws of ESOPs is that they allow business owners to maintain their legacy. As opposed to selling to a third party, an owner has some assurance that his or her business will continue to operate over time, and employees won’t be laid off by an investor with different priorities for the company.

ESOPs also give employees “skin in the game.” Research suggests that employees who hold a piece of the company are highly motivated and productive because they directly benefit from the success of the business. In this way, ESOPs can boost employee morale, foster teamwork, and improve recruitment and retention.

Moreover, ESOPs provide substantial tax benefits to both owners and employees. Contributions are tax-deductible for the company (with certain limitations). A C corporation that sells 30% or more of the business to an ESOP can defer capital gains taxes if it reinvests the sale proceeds into “qualified replacement property.” S corporations that are wholly owned by ESOPs aren’t subject to federal income tax. Employees pay no taxes on contributions until they receive a distribution, and they can defer those taxes by rolling over distributions into another qualified retirement account.

Notable Disadvantages

ESOPs have some potential drawbacks, though — for starters, the steep cost. According to the NCEO, ESOPs generally cost $100,000 to $300,000 to establish, and even more for large, complex deals. Ongoing costs can run $20,000 to $30,000 annually, with costs rising with size. If several employees leave the company in a short period of time, it could face a cash crunch.

In addition, ESOP deals generally don’t reward sellers with much of a sales premium. By law, an ESOP can pay only fair market value for shares in the company. An outside buyer may well pay more than fair market value, based on buyer-specific synergies.

ESOPs also are burdensome to administer. (See “IRS Issues a Compliance Caveat,” above.) They’re considered a type of retirement plan, so they’re subject to the numerous rules and regulations under the Employee Retirement Income Security Act, as well as state requirements. Compliance will require the hiring of various professionals, including a trustee, adding to the costs.

Likely Candidates

Which companies make good candidates for ESOPs? Entity type matters because only S corporations, C corporations and limited liability companies (LLCs) taxed as S corporations or C corporations are eligible.

Also businesses should be on solid financial ground with reliable earnings and cash flow. Without solid financials, a company could end up scrambling to cover its contribution and distribution obligations. A strong management team and clear succession plan are essential, too. That’s particularly so for a leveraged ESOP, as lenders will want to see evidence that the company can service its debt.

Test the Waters

If you’re considering an ESOP, first conduct a feasibility study to determine how it might play out for your business. Contact your tax and financial advisors for more information.

esop graphic

IRS Issues a Compliance Caveat

The IRS recently cautioned businesses about a range of compliance issues that can jeopardize the good standing of employee stock ownership plans (ESOPs). The tax agency warned that it’s executing enforcement strategies to ensure employers’ compliance with a variety of tax requirements.

The IRS highlighted several issues, including:

  • Valuation of employee stock,
  • Prohibited allocation of shares to disqualified persons, and
  • Failure to follow the requirements for ESOP loans.

It also cautioned businesses about potentially abusive promoted arrangements. For example, the IRS described a scheme where a business creates a management S corporation whose stock is wholly owned by an ESOP for the sole purpose of diverting taxable business income to the ESOP. Your tax and financial advisors can help you avoid these potential pitfalls and comply with the regulations of the IRS and U.S. Department of Labor.

By |2024-03-05T15:05:12-05:00December 6th, 2023|Categories: Articles|

The Concept Of Displacement Was Discovered While In The Bath

Bathtub Party Day

Bathtub Party Day encourages us all to skip the ordinary shower and linger in the tub instead. On December 5th, add some suds to the tub and pamper yourself.

  • 3000 years ago is about the time that the first ‘ancestral’ pedestal tub was unearthed on the island of Crete, it measured five feet long, was made of hard pottery, and its shape resembled our modern 19th-century claw-foot tub.
  • 6000 years ago archeologists discovered a plumbing system near the Indus River Valley in India
  • 264 BC – The physics of displacement was discovered by Archimedes while he was soaking in a bathtub
  • 17th Century – The earliest variant of the modern bathtub appears in Crete.
  • 1825 – It wasn’t until the sixth president of the United States, John Quincy Adams, took office that the first bathtub appeared in the White House. Unfortunately, actual bathing was a bit tricky as there was no running water.
  • 1873 – The Kohler Company is founded, with Jacob Vollrath and John Michael Kohler among the founders.
  • 1853 – Franklin Pierce, the 14th man to serve as President, was the first to have a tub installed in the stunning Washington D.C. residence.
  • 1883 – John Michael Kohler invented the world’s first claw-foot tub in enamel.
  • 1921 – only 1% of the population’s homes had indoor plumbing, as outhouses were still the norm in rural America.
  • 1928 – It was the Crane Company that first invented various colored bathroom fixtures in the US market back in 1928.
  • Bathtub Gin received its name as the bottles were too tall to be topped up with water from a sink so they were filled in the tub and the gin was even sometimes distilled and fermented in a tub
  • It’s against the law for donkeys to sleep in bathtubs in Arizona
  • In Kentucky, a historic law required citizens to take a bath at least once every year.
  • About 365 people drown in their bathtubs each year (bath safety is critical!)
  • The average bathtub holds approximately over 52 gallons of water
  • Marilyn Monroe reportedly bathed in champagne and it took a whopping total of 350 bottles to fill the bathtub
  • It would take 17,000 McDonalds straws of water to fill a standard bathtub
  • Mike Tyson reportedly spent $2 million on a bathtub for his ex-wife
  • Dermatologists and skin experts have confirmed that ‘feel-good’ hormones – endorphins – are released when you bathe, similar to that feeling when you’re laying down on the beach enjoying all the warmth of the summer weather.
  • An hour long soak at 38 degrees can burn on average 130 calories, which is the equivalent of doing 40 sit-ups or walking for half an hour.
  • Did you know baths can make your heart actually pump faster? As the heart plays a vital role in cooling the body down, it has to work harder in a hot bath – not only exercising the heart but also great for the body’s general blood flow.
  • Italy-based manufacturer Devon & Devon created a gold-coated tub.
  • On the Titanic, only two bathtubs were available to over 700 passengers in third class.
  • A steamy bath during cold and flu season helps to clear our sinuses and improve our oxygen intake. It also increases our circulation.
  • The warm water reduces inflammation, easing achy joints and sore muscles. It also helps relieve stress.
  • Dropping temperatures outside mean cold hands and feet, or just a chilled body in general. A soak in a warm tub warms us right up.
  • Roman baths were originally built exclusively for the poor. The very first of Rome’s 900+ public baths were actually built for the poorest people to use, while the rich folks would have baths at home. Over time, however, the leisurely bathing pastime became a hallmark of Roman society in general – and bridged the gap between rich and poor just a little bit.
By |2024-03-05T15:04:28-05:00December 5th, 2023|Categories: Articles|

Mergers and Acquisitions in the Age of AI

By: Datasite – October 30, 2023

Recent breakthroughs in artificial intelligence are having ripple effects in virtually every industry, and the M&A field is no exception. This new technology has potentially huge implications for dealmakers, both in day-to-day practice and big-picture strategy. Datasite’s roundtable discussion for Q3 of 2023 focused on how buyers, sellers, and M&A advisors should think about AI as they look ahead.

Questions and Concerns About AI Adoption

Artificial intelligence seems poised to reshape virtually every field of human endeavor. Which of those impacts should be top of mind for M&A professionals?

According to Justin Gans of Capstone Partners, it can be hard to pick just one. AI has already had a considerable impact on the market landscape as major tech firms race to scoop up top talent through large acqui-hires. It’s also impossible to ignore the risks this technology poses, such as the spread of misinformation through deepfakes or the possibilities for market disruptions due to algorithm-driven stock trading.

Meanwhile, professionals across the workforce are wondering how this new technology will affect their careers, even as they search for effective ways to work with it. Audience polling numbers suggested that adapting to the novel capabilities of AI may be the most pressing concern for many, with 53% of viewers listing it as their number-one concern.

What’s Next For AI?

Amir Ghavi, a partner at Fried Frank and the head of the firm’s technology practice, said he’s anticipating a major expansion in the ways artificial intelligence will be deployed. Initially, he pointed out, many observers viewed AI mainly in terms of individual apps like ChatGPT. Now, there’s a growing awareness of the viability of a multimodal approach incorporating disparate capabilities like image recognition, language models, and video generation.

“All of the applications we’re used to using today in the enterprise are going to have varying degrees of AI baked into them,” he said. “AI won’t look like one particular thing. Sort of like eggs in a cake, it’s going to be an invisible but quite powerful layer.”

Ashish Pagey, Datasite’s Vice President of Artificial Intelligence, agreed with Ghavi’s assessment. He also noted that there’s a great deal of progress being made on agentic tools that can perform complex, multi-stage tasks autonomously. In addition, the open-source world may be catching up to proprietary models like GPT4, which should further accelerate AI adoption.

AI Market Trends to Watch

The panelists suggested that the M&A market’s initial enthusiasm for AI is being tempered by a growing caution about the risks it poses. Sellers today often have to make a case for their ability to remain competitive in the face of AI-driven disruption.

At the same time, there’s an increasing expectation that companies in every space will have sophisticated cybersecurity and data analytics capabilities. Audience poll responses reflect this concern, indicating that concerns about data security are the biggest headwinds for AI in the M&A industry.

On the more positive side, the panel identified two major hotspots for AI-related deals. The first was advanced tech, as machine learning tools enable companies to better identify and engage with their customers.

Gans offered TikTok as a perfect example. “The thing that makes TikTok such a super-popular app is the way its algorithms can very quickly determine what is most of interest to any particular user,” he said.

Another potential growth area is in large-scale data analytics. The ability to derive useful insights from massive, unstructured data sets offers potentially game-changing benefits for buyers of all kinds.

Kicking the Tires on AI Acquisitions

Moderator Abby Roberts (Senior Director for Datasite Insights) asked the audience what’s most likely to cause a deal in the AI space to fall apart. The top contender: difficulty verifying the seller’s claims about their tech.

Gans concurred, adding that most of the deal collapses he’s seen have been due to exaggerated promises by sellers.

“For example, there was a company that claimed they were experts at identifying hazards for driverless cars,” he recalled. “They were great…when it was a nice, clean street in the middle of the day.”

The panelists suggested that one of the critical questions diligence teams should ask is whether a given solution is taking advantage of the latest in AI capabilities. Buyers may need to beware of companies that say they’ve built their own models, when in fact they’re simply reskinning open-source technology or adding UI/UX features to an existing engine.

“In a very short period of time, we’ve gone through two or three generations of technology,” Pagey said. “The thing I would look for is: Is this product using the previous generation’s technologies and competencies? Or are they well-positioned to use the next gen and continue to expand and differentiate?”

AI Tools In the M&A Workplace

Will generative AI tools increase or decrease the workload of M&A professionals? In a recent survey by Datasite, 47% said they expected this technology to make them busier rather than taking work off their plate.

“We think of AI more as automation, which is true,” Pagey said. “But the macro-level value for an organization is to use that automation to scale up.”

While many individual tasks may be faster with help from these novel tools, dealmakers may have much more to do as the capabilities of their firms expand. Ghavi seconded this view.

“It’s a productivity tool,” he said. “A country like France might use it to take more time off. I suspect that’s not going to be the way it plays out in America. We’re going to continue to try to do more in the same amount of time.”

The trillion-dollar question, he said, is whether dealmakers can handle this accelerated pace competently. Even with the added capabilities offered by AI, there’s a risk of vital details falling through the cracks when major workflows are handed over to computers.

Why Dealmakers Should Stop Worrying and Learn to Love AI

Roberts closed out the discussion by asking the panelists what advice they’d offer to M&A professionals who are concerned about this technology’s potential to disrupt the industry.

“Become as smart as possible about what AI can do,” said Gans, “both for you and your company. We’re past the initial adoption curve…if you don’t get smart on it, you’ll get left behind.”

Ghavi cited MIT roboticist Kate Darling’s suggestion that we should think of AI as animals rather than human replacements — semi-autonomous tools that will sit alongside humans.

He also pointed out that companies may be facing an important tradeoff: should they let vendors use their data to train their models? Their competitors will also have access to the advanced tools that result, but AI may not realize its full potential if companies are stingy with their data.

Pagey suggested that M&A companies may want to start their AI adoption with simple, reliable tools that will enhance their workflows without disrupting them. Then they can move on to more transformative capabilities.

“The first step, I think, will position people to understand, learn, de-risk, and remove some of the unknowns,” he said. “Step number two will probably have much higher returns.”

By |2024-03-05T15:03:55-05:00November 1st, 2023|Categories: Articles|

Should Investors Vote Blue or Red?

By, Matt Benjamin, Senior Markets Expert, The Oxford Club

In a presidential election, should smart business owners, CEO’s and investors vote for the Democrat or the Republican?

It’s an age-old question, and it’s becoming relevant again as the 2024 election season approaches and business owners, CEO’s and investors start eyeing the polls.

Invariably, each election delivers hysterical prognosticators who tell us the market will tank under a particular candidate.

On election night in 2016, when it looked like Donald Trump would beat Hillary Clinton, and New York Times opinion columnist and Nobel laureate Paul Krugman predicted apocalypse.

“Markets are plunging,” Krugman wrote that night. “If the question is when markets will recover, a first-pass answer is never.”

He was dead wrong. While the market went for a wild ride over Trump’s four years in the White House, the S&P 500 Index was 63% higher when he left office.

Similarly, I have Republican friends who predicted an utter market collapse under Barack Obama.

Yet the S&P was up 176% over his eight years in office.

For comparison, the market has struggled a bit during the Biden administration and is up just 14% over Joe Biden’s first 33 months as president. And the market fell almost 40% during George W. Bush’s eight years.

As the chart below shows, it doesn’t make that much difference to the market whether the Oval Office occupant is a Republican or a Democrat. (You can compare the S&P performance under presidents going back to Herbert Hoover here.)

S&P History Chart

That isn’t to say that a president’s policy choices don’t matter.

It’s All About the Policies

Regulation and tax policies influence the behavior of companies and individuals.

Just as important – and maybe more so – is fiscal stimulus. If you pump a lot of money into the economy, chances are that consumers and businesses will spend it. And that spending will drive corporate profits up and, eventually, stock prices higher.

And boy, oh boy, have we had fiscal stimulus in the past few years!

Trump’s 2017 Tax Cuts and Jobs Act amounted to $3 trillion in economic stimulus over 10 years. That’s bigger (as a percentage of GDP) than the entire New Deal pushed through under Franklin Roosevelt. The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 amounted to another $2 trillion. Overall, Trump’s administration enacted about $6 trillion in stimulus spending.

Biden has tried to match that. His administration has overseen the passage of five pieces of stimulus legislation that total just over $5 trillion.

As you can see in the table below, these numbers (all adjusted for inflation) dwarf both the New Deal and the Marshall Plan.

Stimulus Table

Yes, I’m well aware most of this government largesse is deficit spending, and that the national debt has ballooned to more than $33 trillion. And yes, eventually, there will be consequences to this uncontrolled borrowing.

Monetary policy, however, matters just as much as fiscal policy. And unfortunately for Biden, the ZIRP – zero interest rate policy – era is over. Just about 13 months into Biden’s term, the Federal Reserve embarked on the steepest interest rate hiking cycle in four decades.

That marked the end of easy money.

What Will 2024 Bring?
The 2024 presidential election could be very important indeed, and you’ll want to have a plan for it no matter who wins.

The reality is that smart American businesses find ways to succeed no matter who’s in charge.

By |2024-03-05T15:02:29-05:00October 31st, 2023|Categories: Articles|

Better Hiring Decisions! The Power of Executive Search

Meeting of search executives image
Author:  Steve Finkel is a globally renowned author and trainer for the executive search profession.

Executives depend on the quality of their people to achieve their corporate and personal career goals. It is an old adage – and a true one – that the best jockey cannot win races if he only rides slow horses. A better understanding of the skills and abilities of executive recruiters will enable any manager to greatly increase the quality of his hiring decisions, and thereby enhance his own career!

Some managers are aware and take full advantage of the best possible means of identifying and selecting top quality candidates for critical staff openings. However, many do not. Frequently, this stems from misconceptions regarding the merits of utilizing the services provided by topflight executive recruiting firms.

By a better understanding of these realities, hiring managers will dramatically improve their ability to secure the most qualified candidates in a timely manner.

Misconception # 1: Companies Can Find the Same Talent That Executive Recruiters Can.

With the rise in popularity of on-line job boards and networking platforms, many companies mistakenly believe that these sources contain the same talent that can be found through executive search firms.

This belief couldn’t be further from the truth. Executive recruiters don’t just post ads on job boards to find qualified applicants. Typically, they focus on specific industries, and many even specialize by types of positions within those industries. The benefits of doing so are enormous. It allows them to invest tremendous time and energy forging relationships with high performing candidates within these niche markets, learning the types of positions in-demand people would see as advancing their careers.

Professionals who genuinely excel have neither the time nor desire to peruse on-line ads or to respond to on-line inquiries. It is only when a search consultant personally approaches them that the best people take the step to becoming available for your firm.

Good recruiters invest countless hours establishing unique connections with key performers. These connections allow access to talent pools built over many years…and which are available through no other sources.

This, along with the ability of executive recruiters to carefully screen and evaluate the best candidates, is what allows them to bring the strongest talent to a company’s attention. Companies that rely on job boards or networking platforms will never find the outstanding quality of talent that executive recruiters can provide.

Misconception #2: The Internal Staff Can Do the Same Job as a Quality Executive Search Firm.

While this belief is prevalent within some firms, a thoughtful analysis will prove the opposite. Executive recruiters make a living by finding talent that companies cannot find on their own. While in-house resources may be effective for lower level roles, it makes sense for hiring managers to give themselves every opportunity to interview the very best candidates.

Moreover, internal recruiters typically spend their time vetting applicants who apply or can be found through on-line portals. Search firms focus on finding superior candidates who are successful in their present situation. This very different methodology results in a very different level of candidate.

The ability to call proven performers with direct competitors to discuss career options is a significant factor in what sets professional recruiters apart from internal recruiters or HR people. Having the ability to reach out to these peak performers offers hiring managers access to highly-sought-after candidates they would never see otherwise.

What experienced manager has not extended an offer to a candidate who would have helped the manager’s company and career enormously – only to receive a turndown? In many instances, the manager is not emphasizing the specific elements of the opportunity which are of greatest interest to the candidate. These quality performers are not actively looking, and may need to be “sold.” While there are various reasons why good candidates are open to making a change, the fact is that virtually none would be comfortable sharing those concerns with an internal recruiter.

Professional recruiters have great expertise in developing in-depth individual relationships with the candidates they present. As part of a professional recruiter’s service, they will provide the candidate’s primary motivators to making a move – and thereby reduce or eliminate turndowns and assure the manager of securing the best talent available.

Misconception #3: Executive Recruiters Are Too Expensive.

Executive recruiters report that many of the companies that can most benefit from their services employ internal recruiters. This may lead to the belief that utilizing executive search firms when internal recruiters or HR people are employed is not cost effective.

A simple cost analysis will show otherwise. Consider the combined cost of salaries and benefits of HR personnel and internal “recruiters”, as well as the time that HR people spend doing non-productive interviews with unqualified candidates. These direct and indirect costs are substantially higher than paying out a one-time fee for an executive recruiter’s services.

Executive recruiters eliminate the time and expense required by a firm to find, hire, and train a new internal “recruiter”. And any truly successful in-house recruiter will soon leave his salaried position to become a successful executive search consultant.

Additionally, your chances of securing a long-term contributor are much better if an experienced executive search consultant is involved. Studies have shown that a bad hire costs companies three times more than an employee’s annual salary.

With executive recruiters, their work isn’t done once a candidate has been placed successfully. A guarantee covering the candidate during the probationary period is standard in the industry. Seasoned recruiters make a point of periodically checking in with candidates that they have placed and will share any concerns with the hiring manager. This is invaluable information and directly contributes to a long-term successful employee… and a highly productive staff.

Internal recruiting can be a good solution to filling less critical positions. They can screen the candidates that apply via the company portal and can provide hiring managers with candidates for lower end roles.

However, for more significant positions, it is an excellent and necessary business decision to utilize the services of a highly skilled executive recruiter with a strong industry focus.

By |2024-03-05T15:01:54-05:00October 25th, 2023|Categories: Articles|

Planning a Graceful (and Profitable) Exit from Your Small Business

At some point, every business owner leaves the company, either voluntarily through retirement or otherwise. Some businesses will outlive their founders. Others can’t survive without the continued involvement of a key owner-employee. And a few business concepts — from horse-drawn buggies to video rental stores — eventually lose relevance. Here’s an overview of the options for owners in this phase of the business lifecycle.

Selling the Business

Many owners cash out by selling their business interests to the remaining owners, family members, employees, private equity firms, competitors, or other outsiders. A sale provides owners with cash flow to fund retirement and pass along to their heirs.

Steps to make your business sale-ready may include:

  • Divesting less-desirable assets,
  • Buying out difficult shareholders,
  • Trimming excessive overhead costs, and
  • Transitioning customer accounts to employees who will continue working for the business after the deal closes.

Your professional advisors can help position your business for sale and maximize the selling price. They can also help identify potential buyers, compile financial documents for prospective buyers, set a reasonable asking price and recommend alternative deal structures.

After closing, buyers might ask key owner-employees to continue working for the business as an employee or consultant. These arrangements are usually temporary and go hand-in-hand with a noncompete agreement and/or an earnout provision, where a portion of the purchase price is contingent on the company meeting certain financial benchmarks in the future. It’s important to understand the tax obligations associated with these arrangements — they may be treated differently than capital gains from sales proceeds.

Going Public

With a professional management team in place and audited financial statements, larger companies might be positioned to make an initial public offering (IPO). This can be a daunting endeavor, but an experienced professional advisor can help navigate the details.

When contemplating an IPO, it’s important to carefully estimate the costs associated with going, and being, public. Beyond the initial registration costs, publicly traded companies are subject to extensive ongoing filing and disclosure requirements with the Securities and Exchange Commission.

Reorganization

When a mature business’s performance starts to decline, it can potentially be saved with a turnaround (or reorganization) plan. Reorganizing can provide a fresh start, especially in today’s volatile economy. For instance, management might:

  • Renegotiate debt terms,
  • Close unprofitable segments,
  • Refocus on core business operations, and
  • Revise its marketing strategy.

Professional advisors are central to an effective turnaround. They can help you get the business back on track by creating short-term cash flow projections and monitoring progress. Real-time tracking allows you to pivot as needed and improves the odds of success.

Once a turnaround is successfully completed, the business could be positioned for a sale. Conversely, failed turnaround attempts may result in a distressed business sale or an asset liquidation.

Liquidation

Some businesses are no longer viable. In this situation, the owner will need to sell assets, repay creditors and wind down operations. This includes filing final tax returns.

Selling assets at auction is usually the method of last resort because you’ll receive pennies on the dollars you’ve invested. Professional advisors can help liquidating businesses find competitors, suppliers and even customers who might be willing to buy the assets for a fair price. When creditors are involved, liquidation might require a formal bankruptcy proceeding. Your advisors can guide you through this process.

Ask the Pros

Businesses need guidance from experienced professional advisors as they mature and evolve. Sometimes long-term plans may need to be revised as market conditions and owners’ personal circumstances change. If you haven’t done so already, discuss exit strategy options with your tax and legal advisors. They can help determine the optimal path based on your business and personal situation.

By |2024-03-05T15:01:14-05:00October 25th, 2023|Categories: Articles|

KCMA: August cabinet sales jump month-over-month

By Larry Adams

WOODWORKING NETWORK

October 23, 2023

Custom and semi-custom cabinet sales increased from August 2022 to August 2022, rising by 11.4 percent and 6.3 percent respectively. These positive gains, however, were muted by stock sales, which took a YTD drop of 22 percent.

According to the Kitchen Cabinet Manufacturers Association’s Trend of Business Report, August’s year-to-date sales were $1,879,829 in August 2022 and rose 1.7 percent to $1,911,327 in August 2023.

In terms of monthly sales comparison, August 2023 compared to August 2022 is down 7.4 percent. However, when compared to July 2023 numbers, which were $211,047, sales were up 12.5 percent.

Estimated year-to-date sales through August were $11,847,800, according to KCMA statistics. In July 2023, YTD sales were $10,357,800.

Business Trend Report Image

By |2024-03-05T15:00:35-05:00October 25th, 2023|Categories: Articles|

Choosing The Right Executive Recruiter For Your Organization

Jon Jennings, Forbes Councils Member

Forbes Business Council

In today’s fiercely competitive market, the talent behind a company’s pricing strategy can significantly influence its trajectory. Finding the ideal fit for such a pivotal role can be daunting. This is where executive recruiters can come into play, bridging the gap between businesses and top-tier talent.

But how can businesses ensure they select the right recruiter for their unique needs? Let’s look at the intricacies of executive recruitment, highlighting the traits of effective recruiters and offering a road map for businesses to find their perfect match.

Traits Of A Skilled Executive Recruiter

A recruiter’s merit doesn’t only lie in their ability to spot talent but also in their understanding of the nuances of the industry. Here are some pivotal traits that I have found set top-tier recruiters apart:

  1. Deep Industry Knowledge

To be truly effective, recruiters should possess an in-depth understanding of the industry they serve. This includes staying updated with market trends, recognizing the intricacies of pricing strategy roles and being aware of emerging opportunities and challenges. Their insights should be actionable, enabling them to spot and attract talent that’s not just qualified but is also poised to innovate and lead.

  1. Assessment Of Cultural Fit

Every organization boasts its own unique culture. A seasoned recruiter shouldn’t just scout for skills; they should also ensure candidates resonate with a company’s ethos. This alignment between a candidate’s values and a company’s culture can be the differentiator between a good hire and a great one, and it often involves an intricate dance of assessing candidates’ soft skills, adaptability, and alignment with organizational values.

  1. Broad And Deep Networking Capabilities

A hallmark of an experienced recruiter is their diverse network. Their connections should range from budding professionals in the field to seasoned industry stalwarts, ensuring a rich talent pool to choose from. This network is typically nurtured over years and is often global, ensuring a diverse mix of candidates from various backgrounds and expertise levels.

Key Questions To Guide Your Recruiter Selection

Selecting the right executive recruiter is akin to choosing a strategic business partner. Their expertise and network can have a profound impact on your company’s future leadership. To make an informed choice, it’s essential to initiate a meaningful dialogue and ask pertinent questions. Here are some questions that can shed light on a recruiter’s capabilities and fit:

  • How do you stay updated with industry trends?”This question can reveal the recruiter’s commitment to continuous learning and staying ahead in the ever-evolving landscape of pricing strategy.
  • “Can you provide examples of successful placements you’ve made in the pricing strategy domain?”Past success can be an indicator of their understanding of the role, their network’s quality, and their ability to match candidates effectively with organizational needs.
  • “How do you assess cultural fit?”Understanding their methodology can offer insights into the depth and breadth of their evaluation process.
  • “What’s your approach to passive candidates?”This can help determine their proactive nature and their ability to engage candidates who might not be actively looking but could be the perfect fit for your needs.
  • “How do you handle confidentiality throughout the hiring process?”The ability to ensure discretion is vital, especially when the recruiter will be dealing with high-level positions and candidates.
  • “What post-placement support do you offer?”This gauges their commitment to long-term success and not just a one-time placement. It can also provide insights into how they handle situations if initial placements don’t work out.
  • “How do you customize your approach for each client?”Every company is unique, and a standardized approach might not always yield the best results. Their answer can reveal their adaptability and client-centric focus.

When posing these questions, evaluate not just the answers but also the depth, clarity, and specificity with which the prospective recruiter responds. Their willingness to engage, clarify doubts and provide detailed insights can often serve as strong indicators of their commitment and expertise in the realm of executive recruitment.

Navigating Challenges In Engaging Executive Recruiters

The recruitment journey can present certain hurdles, but by understanding these challenges upfront, you can devise strategies to mitigate them so that your engagement with a recruiter can be both efficient and effective. Here are a few to keep in mind.

  • Niche Expertise: While many recruiters are available, not all will have specialized knowledge in the pricing strategy realm. Ensure your chosen recruiter is well-versed in your industry.
  • Balancing Reliance: While leveraging a recruiter’s expertise is beneficial, solely depending on them without internal hiring efforts can be restrictive. Try to find the sweet spot between external recruitment and in-house initiatives and be ready to adjust your expectations and strategies as needed.
  • Cost Considerations: Top-tier executive recruitment often comes with a price tag, so make sure this step fits within your budget. In my experience in this industry, however, the long-term value of securing the right talent can often justify the initial investment.

There are multiple ways you can further ensure your recruitment journey goes smoothly. Maintain a transparent communication channel with your recruiter. Having open discussions about requirements, potential challenges and specific expectations can streamline the process. I also recommend regularly touching base with your recruiter; these check-ins can provide updates and feedback that may highlight when a strategic shift is necessary.

Feedback is gold, so consider posting any placement, successful or otherwise, and sharing your feedback. This iterative feedback loop can help refine future searches for stronger and more effective partnerships.

Conclusion

Talent acquisition is nuanced. By understanding what to look for in an executive recruiter and by being aware of potential challenges, you can make informed, strategic decisions for your company. Transparency, active engagement, and feedback can help you turn potential obstacles into steppingstones for a more refined and effective recruitment process.

By |2024-03-05T14:59:57-05:00October 24th, 2023|Categories: Articles|

Data Entry Specialist Remote/Part Time

For more than 43 years, Brooke Chase Associates has grown into a boutique, retained, executive search firm with international reach, specializing in the identification, recruitment, and placement of industry professionals with manufacturers, distributors, and builders. We help companies build powerful world class organizations. We focus on finding the best fit to create a long-term solution.

Are you looking for an opportunity to…

  • Explore, learn, and grow in the dynamic industry of executive search and recruitment?
  • Use and develop your naturally curious research skills to support the expansion and updating of our database?
  • Join a rapidly growing company where you can learn and grow in a professional, positive, and supportive environment?

Duties include but are not limited to:

  • Maintains and updates the corporate database.
  • Input information from resumes and LinkedIn profiles into our internal database
  • Safeguards the confidentiality of all.
  • Meets deadlines, keeping supervisor/team leader(s) informed of the possibility of any backlog or delays.
  • Check data input for completeness and accuracy.
  • Proofs and verifies the accuracy of own work.
  • Runs computer reports as directed.

Responsibilities we require:

  • Communicating tactfully and effectively, verbally and in writing.
  • Competency in correct English usage, grammar, spelling, punctuation, and essential business mathematic calculations.
  • Demonstrated ability to work in a fast-paced environment.
  • Must maintain a high degree of accuracy, speed, and attention to detail.
  • Ability to type accurately.
  • Maintains a superior degree of follow-through on all assigned work and provides high customer service.

The successful candidate will be:

  • Intellectually curious, smart, eager to learn, hard-working, disciplined, organized, detail-oriented, tenacious, self-directed, able to multi-task well, strong verbal and written communication skills, excited about research and due diligence, reliable, pride in workmanship, hungry to learn about business and comfortable with a more behind-the-scenes role. Able to work collaboratively in a team setting and get along well with people.
  • Willing to roll up your sleeves, provide hands-on support and truly enjoy going down “internet rabbit holes,” exploring new topics and finding interesting data to connect the dots to achieve company goals.
  • Excited about getting a practical, on the job “mini-MBA” education without the expense of graduate school.

What we bring to the table for you:

  • Exposure to a broad range of industries and company types (e.g., manufacturing, business services, distribution, consumer durable goods, building materials, kitchen and bath, decorative plumbing and more.
  • Camaraderie with a great group of driven, smart, creative and “can-do” professionals while building general business skills such as research, teamwork and management.
  • A culture that inspires learning, encourages autonomous work, fosters team collaboration, rewards hard work and results, and offers a sustainable work/life balance.

We do have a few requirements:

  • High School Graduate.
  • Experience with Microsoft Office, LinkedIn, and other online research tools.
  • Strong attention to detail and highly organized.
  • A self-starter and able to effectively contribute within a team environment.
  • A minimum of one year of work-related experience performing data entry into a Windows-based application or related experience is required.

Contact:
Joe McElmeel
Chairman & CEO
jmcelmeel@brookechase.com
941-479-6382

By |2023-10-20T16:24:04-04:00October 20th, 2023|Categories: Current Searches, Join Our Team|
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