In times of Crisis, Don’t let your Reptile Brain take over
There is something you can’t see that is getting in the way of moving your business forward, even in these unprecedented times. It is hidden from view, but it raises strong emotions in your team that make them resistant to change. Buried deep beneath all that grey matter that deals with creativity, intelligence, collaboration, etc. (the neocortex or ‘human brain’) is a small evolutionary building block of life. Our ancestors’ reptilian brain from millions of years ago is still there and occasionally, when you least expect it, it takes control. The reptilian brain controls the fight or flight instinct, one of the strongest impulses a human being has. It also has another name: resistance to change. When it’s triggered, there is no room for reasoning or creativity, it takes over completely. We would all rather the neocortex that provides intelligence and rational thinking to be in control instead of a largely uncontrollable reptile. The trouble is, it can be triggered not just by physical threats but by anticipated social or emotional discomfort too, so it’s important to set up the working environment to avoid any triggers and help your leadership team understand how to manage this behavior. Otherwise, the result can be blame, indifference, and a lack of engagement. How then, do you avoid activating this rudimentary way of thinking? Put simply, it’s about involving people in change from the onset and trusting them to be a part of the innovation creation and change process. Humans are naturally driven to improve their situation and that of the people around them – we wouldn’t have engineers, artists, or entrepreneurs otherwise. Most companies will find they have a huge untapped resource of creativity, innovation, and enthusiasm if they allow their teams’ ample control over improving their area of responsibility. Empowering them (with the right tools and support) to respond to threats and opportunities through collaboration and open communication. To foster this, there are four key things every organization needs to put in place. First, establish a clear, customer-centric mission that the organization can passionately get behind. (e.g. Tesla’s vision for a sustainable future). Second, create and foster a culture where your people can exchange ideas and opinions openly. Third, give them the tools, power, and accountability for decision-making in their own area of responsibility. Fourth, leadership needs to be supportive and open to new ideas that stray from the status quo and not turn a blind eye to threats that might turn your organization upside down. Again, when we think about growth and culture in this time of continual change, we need to set aside our reptilian way of thinking and be open to the change and innovations that will help us succeed in the long run. (some excerpts from “The Reptilian Brain”, Psychology Today) About the Author: Andrea Olson is a strategist, speaker, author, and customer-centricity expert. As the CEO at Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been featured in news sources such as Chief Executive Magazine, Customer Experience Magazine, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer at the University of Iowa’s Tippie College of Business, a TEDx presenter and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.thecustomermission.com.
Pricing in a pandemic: Navigating the COVID-19 crisis
Demand is volatile right now, creating a variety of pricing challenges. Companies that focus on long-term value rather than short-term gain are best positioned to meet them Nearly every public- and private-sector leader now facing the prospect of human tragedy shares one top priority: the health and safety of employees, customers, vendors, and their families. Once they have put the necessary measures in place to protect people’s lives, leaders must help protect livelihoods as the COVID-19 pandemic turns the global economy upside down. The crisis is also exerting sudden and unprecedented pressures—sometimes up, but more often down—on demand and pricing. In many sectors, from air travel to durable goods, sharp drops in demand, excess capacity, and heightened price sensitivity are converging to drive down prices and destroy value. Many customers are asking for discounts and contract renegotiations, while some competitors are making aggressive pricing decisions. In other sectors, from shipping and groceries to medical supplies, demand has risen to levels no one could have anticipated in early 2020, putting upward pressure on prices. In both scenarios, companies need to sustain value to both survive the crisis and protect their employees’ livelihoods. Companies must also be flexible and creative to support customers in this tough time and work with them to weather the crisis together. While it’s difficult to take a long-term view in the fog of a crisis that seems to change every day, we expect that the companies that emerge in the strongest positions will be those now taking a “through-cycle” view of their relationships with customers and the communities where they do business as part of an integrated approach with marketing and sales. In the midst of the worst health crisis in more than a century, they will be at their best, addressing customers’ pain points with flexible payment terms, unbundling, and one-time promotions. In short, they will drive long-term value creation rather than seek short-term advantage. In this brief memo, we suggest some “dos and don’ts” to help leaders navigate unmapped territory during the pandemic. The situation varies widely across industries and geographies, so we offer an overview of pricing considerations here, not specific advice for any one company. Managing unprecedented variability in demand Each company faces a unique array of challenges today; no single approach or solution will suit them all. But it can be helpful to consider pricing challenges in the following three main market scenarios: 1. Companies experiencing a sharp and unprecedented drop in demand Sectors directly affected by social distancing and government isolation guidelines, such as airlines, hotels, and food service, are acutely impacted today. As they struggle with decreased demand, they also have excess capacity and heightened price sensitivity. Many of these companies are getting requests for steep discounts and new terms as their competitors scramble to attract the few remaining customers, at times with prices well below cost. But for many companies in this kind of marketplace, we believe that pricing is now beside the point. After health and safety measures are in place, they should focus on maintaining cash reserves and preserving key assets and talent to survive the crisis and fight another day. Serving a few bargain-hunting customers at a loss is rarely a route to long-term success. 2. Companies experiencing an explosive increase in demand Some companies are now rushing to expand capacity, including those that provide critical products and services, such as medical supplies, shipping, and cleaning, and those whose products are highly sought after by people confined to their homes, from toilet paper and canned food to audio headsets, video conferencing, and home entertainment. While this may seem like a rare opportunity to generate outsized profits, perceptions of price gouging could have serious reputational and even legal consequences. We urge suppliers not to raise prices sharply on essential goods or services or ignore contracts in order to take advantage of an emergency. In fact, many states in the US are investigating hundreds of price-gouging complaints from consumers in the days that followed state-of-emergency declarations. That said, operational concerns maybe even more important than pricing strategy, including stabilizing the supply chain, keeping products on the shelves, addressing customers’ urgent needs, and maintaining quality. 3. Companies with muted or lumpy demand Some sectors, such as home improvement, landscaping, and consumer electronics, are not directly affected by COVID-19 but feel the impact of a general slowdown or moderate uptick as people’s lives change at work and at home. Many of these companies have opportunities to take near-term pricing actions that preserve and build value—but they should avoid certain pitfalls. Despite this “day and night” variability across sectors, we believe companies of all kinds should focus on a set of actions—and things to avoid—as they contemplate pricing actions. Five things to get right during the pandemic 1. Make sure that every pricing action is legal, ethical, and community-minded A humanitarian crisis is not the moment to sharply raise prices on essential goods or services or to ignore contracts. Certain types of collaboration with competitors and other marketplace responses may also be governed by antitrust or unfair-trade-practice laws. The backlash could be severe, including reputational problems and legal action in many jurisdictions. Any significant price increase should genuinely reflect increased costs. Senior leaders should consult with legal counsel before making any agreement with a competitor, no matter how well-intentioned. 2. Take a through-cycle view of customer relationships Keep a long-term perspective. Reinforce trust by tracking key customers’ evolving needs and standing by and defending them during their toughest times. Help the sales team tailor offerings and contracts to new situations and strengthen value-proposition communication. Several technology companies with overseas manufacturing, for example, surveyed customers and learned that “supply-chain assurance” had become a top buying factor. Sales teams used this insight to communicate the latest supply-chain status, alleviating customer concerns, and to provide some customers with supply guarantees after consulting the newly established pricing war room. Providing incentives for loyalty can also strengthen relationships while decreasing incentives to switch to a competitor. 3.
The Protective Guarding Manufacturers Association: Know your barriers
The Protective Guarding Manufacturers Association (ProGMA) reminds professionals in industrial facilities of the importance of selecting fit for purpose guardrails. ProGMA is a product group within the MHI trade association. Nearly 100 workers are killed in the United States each year and a further 20,000 are seriously injured in powered industrial truck (PIT) incidents. Furthermore, impacts with pedestrians are the second most common accident involving PITs. The National Institute for Occupational Safety and Health (NIOSH) is responsible for investigating forklift-related deaths, and it reports that many workers and employers may not be aware of the risks of operating or working near forklifts. NIOSH further reports that individuals are not following the procedures set forth in standards or equipment manufacturers’ guidelines. This is a reality that impacts not only those unfortunate enough to be involved in an accident but also their colleagues, employers, families, and friends. Industry awareness is growing about the many protective guarding options available for warehouses, distribution centers, and other industrial facilities. However, as is the case with any product sector, it takes a greater appreciation of the available solutions to ensure you are using the most appropriate tool for the situation at hand. It’s always important to ask yourself whether the purpose of the guarding is to protect pedestrians and/or assets, or simply to separate areas of a facility. How might each scenario require a different level of protection based on a particular environment? Pedestrian barriers are for defining walkways but for areas where pedestrians and PITs share space, you should have a traffic-strength barrier. The strength of these products varies. ProGMA has 20 member companies, many of which provide polymer and steel guarding equipment for pedestrian and vehicle protection. Options include single and double guardrails; pedestrian gates; steel and polymer designs; flexible and bounce-back bollards; and polymer and steel bollards. Properly spaced guardrails are an excellent way of protecting pedestrians adjacent to mobile equipment aisles. They also prevent individuals from straying into areas where they are not permitted: for example, where PIT traffic is operating. Without guarding in place, distracted pedestrians and drivers might not always be aware of the dangers present. ProGMA frequently engages with industry about what decision-makers need to know to make an informed judgment about the installation and use of guarding. There is nothing random about choosing the right solution. We must understand the weight and speed of PIT and potential angles of impact. Other important considerations include the consequences of having no such protection for pedestrians; the environment and the layout of the facility. It’s also crucial to understand that where one guarding solution might be adequate, another will be less so, or even redundant. These are all significant details that often get overlooked. Some manufacturers don’t distinguish at all between pedestrian and traffic guardrails; they talk of barriers and guardrails in general terms. In contrast, other product manufacturers have different ratings for different ranges of products. The most important message for industry to digest is that it matters greatly which barrier you choose. For proof, we should consider the science (without getting too technical). A vehicle traveling with a certain mass and velocity has a calculable amount of kinetic energy (measured in joules). Some manufacturers only state that their product is capable of withstanding an impact of 10,000 lbs. (4,536kg) at 5mph: this allows someone to calculate the energy in principle, but what if the vehicle is traveling with less mass and going faster? It is important to calculate the energy and speed of every PIT in circulation in a facility because not all trucks weigh 10,000 lbs. or travel at a constant 5mph. By looking at these variables purely in terms of energy, we get a truly empirical calculation. For example: 10,000 lbs. @ 5mph = 11,331 joules but 6,945 lbs. at 6mph also equals 11,331 joules. Energy is inescapably dependent on both factors: the more speed, the less weight for the same energy, and vice versa. Speed actually has the biggest influence on this calculation. If someone uses a pedestrian guardrail with a lower rating, it will not perform in the event of an impact from a heavier / faster PIT. The result is a complete failure of the guardrail – and potentially life-threatening consequences for any pedestrian on the walkway at the time. One point to keep in mind as you search for guarding solutions is that an Occupational Safety and Health Administration (OSHA) requirement states that guarding must have a height of at 42 inches to be considered a true barrier. This is often confused with OSHA’s requirement for fall protection above a height of 48”. In conclusion, responsible individuals must always analyze the scenario and the role of protective guarding both in incident prevention and in the event of an accident occurring. This includes ensuring that the product selected has been independently tested and rated to its stated performance data.
IMTS 2020 still on, for now
The International Manufacturing Technology Show (IMTS) is still committed to opening the show in Chicago on September 14 – 19, 2020 at McCormick Place. In a press release Peter Eelman, AMT Vice President, and CXO say that they are committed to opening IMTS as scheduled on September 14. “There are many indications that show us the Manufacturing Technology community is looking forward to IMTS. At this point, from an overall standpoint, IMTS 2020 is at 94% of capacity for exhibit space, some exhibitors are hoping to take more space and grow their booth, and registrations have been steady throughout the onset of the crisis.” “We recognize that IMTS will need to look different in order to keep our audience safe and secure – so we are investigating ways to keep you protected. We are currently redesigning high traffic areas (such as registration, conferences, and receptions), working with trade show partners to ensure a higher level of cleaning protocols are made, and considering new entry point measures such as temperature checks and mask distribution,” Eelman added. In 2020 they are welcoming a new audience to IMTS. The Smart Manufacturing Experience (SMX), originally scheduled to be in Pittsburgh in June, will now be co-located at IMTS. More information on this can be found at www.smartmanufacturingexperience.com “As for Chicago, we remain in constant communication with McCormick Place, the City of Chicago and the State of Illinois to stay abreast of their ever-changing landscape. We have been advised that 2,000 beds have been removed from the alternate care facility and, to date, have had less than a dozen patients. We have also been advised that they are planning to move the entire facility out by June for shows to start up again in July.” said Eelman.
Occupational Health & Safety announces Industrial Hygiene Virtual Summit
Occupational Health & Safety, an industry information source for health, safety and industrial hygiene, announced that it will host an Industrial Hygiene Virtual Summit on May 28, 2020. Occupational Health & Safety has been an industry leader since 1932 and continues to provide an effective collection of media outlets for spreading the word about health and safety products and issues. The brand is known for offering new, innovative ways to engage those in the industry. With many in-person safety events being canceled this year, the OH&S Virtual Summit gives safety professionals the opportunity to learn vital industry information without traveling. Registration is free for qualified safety professionals. The May 28th event will include three webinars on key industrial hygiene topics: Total Worker Health, Respiratory Protection, and Gas Detection. All sessions will be moderated by the OH&S editorial team featuring Editor Sydny Shepard and Associate Content Editor Amanda Smiley. Jennifer Cavallari, ScD, CIH, an Associated Professor at the University of Connecticut School of Medicine in the Department of Public Health Sciences, will present Total Worker Health for Occupational Health and Safety Professionals, which will give participants knowledge of principles, rationale and best practices of a TWH approach. Dennis A. Terpin, Ph.D., O.H.S.T, Senior Industrial Hygienist/Emergency Manager for the University of Illinois at Chicago, will present Respiratory Protection Programs — Maintaining Your Program in Uncharted Waters. This webinar will discuss how it has never been so important to incorporate OSHA’s hierarchy of controls and a hazard control program in respirator protection programs. To round out the day, John Shawder, Ph.D. will present Selection and Use of Direct-Reading and Sensor Technologies for Occupational Health & Safety. Dr. Snawder is the Leader of the Biomonitoring Research Team and Co-Director of the NIOSH Center for Direct Reading and Sensor Technologies. This gas detection webinar will describe the NIOSH Right Sensor Used Right Initiative. “The cancellation, virtualization, and postponement of many tradeshows has been a difficult thing for the industry to experience, as many safety professionals gain important information specific to their daily responsibilities from these shows each year,” said Shepard. “We are pleased to bring OH&S subscribers the ability to further their industrial hygiene knowledge from the comfort of their homes without the increased risk of traveling now brings.” “Given OH&S’s reach and longevity, I am proud to be able to offer safety professionals the opportunity to learn during this unique time of no travel. The concerns in the safety market are as relevant as ever, and these sessions will offer invaluable insights and solutions,” added Kevin O’Grady, president and group publisher of Occupational Health & Safety. Click here to register.
Businesses: Think about Tomorrow when hunkering down today
Until recently, the number one concern for many employers was finding and retaining top talent. Today, to fight the novel coronavirus (COVID-19), many of those same companies are being forced to shed workers en masse. If you haven’t yet pared down your workforce or need to do some more trimming, what are your options? How you carry out a workforce reduction — and how you maintain contact after the cutbacks — can either engender loyalty and keep employees wanting to come back, or it can send them away feeling disgruntled. As employers trim their employee rosters, they have several options, including: Reduce employee benefits — for example, 401(k) matching contributions, Furlough workers, Lay off some or all of staff, or Cut nonexempt employees’ hours. (Note: Reducing the hours of salaried exempt employees doesn’t allow you to cut their pay proportionately under the Fair Labor Standards Act.) The less drastic the measures, the easier it will be to keep valued workers available to rejoin the company when you need them. In part, it depends on how much time has elapsed since they were let go. Don’t underestimate the importance of the way you say goodbye. It will have an impact not only on your ability to bring those employees back on board but could affect your “brand” as an employer. Former employees who feel mistreated are only too happy to write about it on social media. Cutting Hours Cutting nonexempt workers’ hours lets you hang on to more employees, of course. While nobody wants to see their hours cut, they dislike being laid off even more, especially when unemployment rates are spiking. Not only do they retain some income, but they’re less likely to feel singled out for punishment since more of their coworkers are in the same boat. Note: Federal assistance (under the CARES Act) to employees harmed economically by the COVID-19 outbreak isn’t limited to employees who lost their jobs entirely. The law’s “Pandemic Unemployment Assistance” program can provide funds to workers who aren’t eligible for regular unemployment compensation because they still have some employment income. A special provision of the CARES Act focuses on supporting employees whose hours were reduced in a work-sharing arrangement. The benefits vary according to whether states — which administer unemployment programs — already provide some support for employees forced to take reduced hours. Twenty-seven states have such programs. Employees permitted to work with reduced hours are generally able to hang on to some of their employee benefits, which often represent a significant part of their total compensation. The picture gets more complicated, however, when employees are furloughed. Employee Benefit Implications With a furlough arrangement, the employee’s job is essentially put on hold. But in some respects, the employee is still under your economic umbrella. Plus, there’s an expectation that he or she will eventually return to full-time employment. The legal impact of a furlough, as it pertains to employee benefits, can vary according to its duration. For example, a health insurance company might not agree to maintain coverage for furloughed employees just because you continue to pay your customary share of the cost of their health benefits. Your contract with your carrier might become void if you’re covering people who aren’t working for you now and might not be employed by you in the foreseeable future. It’s critical to read the fine print on insurance contracts before making any promises to furloughed employees. There’s generally more leniency with 401(k) plans. While you can’t deduct any payroll-based employee payments to a 401(k) plan if an employee isn’t receiving a paycheck, employees can deal directly with the 401(k) provider for some transactions. For example, if the furloughed employees want to take advantage of the CARES Act’s liberalization of plan loan rules, they can do so but need to make payments on a loan by means other than payroll deductions. When Termination Is Your Only Option Using a furlough strategy can improve your chances of keeping valuable employees available to return to full-time status when you’re able to reopen your doors. But sometimes, a simpler straight layoff (which is similar to termination) is your only option, depending on your industry and the economy. Even then, you can still do your best to avoid losing those valued employees forever. One key to maximizing the chances of being able to rehire laid-off employees later is to be as generous and sensitive as you can when you pull the trigger. That can include helping terminated employees, either directly or through an outplacement service, to take advantage of available state and federal unemployment benefits. If you can afford to pay a severance benefit, that can instill loyalty as well. However, be aware that such a policy needs to be administered consistently. Also, if you structure a severance payment plan as a series of periodic payments instead of as a lump sum, that could delay a laid-off employee’s eligibility for unemployment benefits. Why? Your state might treat it as the equivalent of ongoing employment income. Keep Talking If you want to hold onto your workforce, don’t neglect to contact your staff in general, especially those you’re most interested in hiring back when the time comes. It’s best to avoid making an actual commitment to rehire them, but you can still keep communication friendly. The longer workers go without hearing news directly from you, the more likely they are to assume the worst and start looking elsewhere. Communication doesn’t have to be formal, but it should be regular. If there’s news you can share, your laid-off workers are probably eager to hear it. Whatever you do — group emails, texts, letters, Facebook posting on your company’s page or occasional phone calls to your most valued workers — don’t neglect to stay in touch so that, when times get better and you prepare to turn the “closed” sign to “open” your loyal staff is right there beside you.
The Post-Coronavirus Culture
The $64,000 question is what will things look like following the Coronavirus epidemic. More specifically, what will business look like, and how will customers change? Instead of focusing on specific tactics, we should look at how behavior will change and we can look to history to give us some insights. If we examine past generations that have experienced major events in their youth, we can glean a bit of insight as to the next wave of change. Take the Boomers. Boomers are often associated with the counterculture of the 1960s, the civil rights movement, and the “second-wave” feminist cause of the 1970s. Early and mid-boomers experienced events like Beatlemania and Woodstock, organizing against the Vietnam War, or fighting and dying in the same war. Boomers were the inventors of the Apple II, the World Wide Web, and even Viagra. Or the Gen Xers. As “latchkey kids”, they grew up through Carter and Regan. They experienced the early 1980s recession, where unemployment rose to 10.8%. They experienced the Great Recession in 2008 as they were just getting a foothold in the workforce. Gen Xers experienced the crack epidemic, the AIDS epidemic, and were the first generation to experience computers in schools. The Millennials (or Gen Y) came of age in a time where everything began to be affected by the Internet. Growing up in a wholly digital era, they experienced underemployment, where in April 2012, it was reported that half of all new college graduates in the US were still either unemployed or underemployed. They pushed for a stronger work-life balance and have a larger set of expectations of employers, including more social responsibility. Now it’s Gen Z. The Economist has described Generation Z as a more educated, well-behaved, stressed, and depressed generation in comparison to previous ones. Mental depression has been said to be more common among Generation Z than any previous generation, with increased technological and online dependence and decreased face to face interaction. They experienced 9/11, school shootings, Hurricane Katrina, and the rise of social media. And now, Coronavirus. So what does this all mean? That every generation, especially when they are at that 20-30 year age bracket, responds to major events by being the catalyst for change. Boomers focused on invention and business. Gen X and Millennials focused on society and technology. Now it’s Gen Z’s turn. This epidemic is a life-changing experience for all of us, but as a young person, it can be the catalyst for changing and transforming your life’s direction. As the next generation to be entering the workforce, Gen Z will be thinking about how this epidemic has impacted their lives and acting on ways to change the future. What will this look like? While there’s no way to know the specifics, if we look back at history, Gen Z will likely look at technologies, businesses, and behaviors that focus on protecting income and savings, specifically financial security. They will examine with more scrutiny on what they need to spend their money on, and what isn’t needed. They will focus on creating solutions to eliminating bureaucracy and simplifying communications and the transmission of information. They will be examining new innovations in medicine and health. They will also be much more sensitive to honesty and transparency in leadership. What can your business do to look ahead and address the future needs and demands that will be rapidly growing in importance? Can your organization begin some of these transformations today, not only to get ahead of the curve but also to enable the onboarding of the next generation of innovators? Because it’s worth using history to your advantage. About the Author Andrea Olson is a strategist, speaker, author, and customer-centricity expert. As the CEO at Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been featured in news sources such as Chief Executive Magazine, Customer Experience Magazine, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer at the University of Iowa’s Tippie College of Business, a TEDx presenter and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.thecustomermission.com.
Census Bureau launches COVID-19 Data Hub
The U.S. Census Bureau released a new resource page on Census.gov to help federal agencies, businesses, and communities make decisions related to the COVID-19 pandemic. Similar to the Census Bureau’s resources pages created during natural disasters, this resource page includes information on population demographics, economic indicators, and businesses. It features a new interactive data hub that centralizes already-released data from the American Community Survey and the County Business Patterns program to facilitate users’ access to data useful in pandemic-related decision making. The data hub, released as a beta version, will be updated periodically as the situation changes and as feedback is received from users. Click here to connect with the new web site.
How to properly wash your hands in especially in the COVID-19 world
One of the best ways to keep you and your family healthy is by properly washing your hands. Despite being taught to wash our hands as children, many of us don’t know the proper techniques for washing our hands correctly, or how often we should be performing this important task. We’ll walk you through the proper steps as laid out by the leading health organizations around the globe such as the Centers for Disease Control and the World Health Organization. When should you wash your hands? The major health organizations have a general list of activities that they recommend washing your hands before, during, and after. Wash your hands before: Preparing and eating food Treating a cut or wound Caring for someone who is ill Wash your hands during: Food preparation Wash your hands after: Food preparation Treating a cut or wound Using the restroom Changing a diaper Cleaning a child who has used the restroom Coming in contact with animals, animal food, or animal waste (pets included) After coming in contact with garbage Blowing your nose Sneezing Coughing Caring for someone who is ill What are the proper handwashing steps? To effectively kill germs and help prevent the spread of infectious disease, it’s important that you know how to properly wash your hands. Following these steps will help keep you and your loved ones healthy. Get your hands wet using clean, running water. Turn off the tap and then apply your soap. The water can be any temperature, you don’t need to have hot water. Also, any soap will do, you don’t necessarily need antibacterial soap. Work the soap into a lather by rubbing your hands together with the soap. Be sure to lather every part of your hands front and back as well as between your fingers and under your nails. Scrub your hands for at least 20 seconds. If you don’t have a watch or a clock available, this is roughly the amount of time it takes to sing the “Happy Birthday” song twice. You can use that to make sure you reach 20 seconds. Rinse your hands using clean, running water. Dry your hands using a clean towel or let them air dry. To see proper handwashing techniques in action, please watch this video from the CDC. How long should you wash your hands? It’s recommended that you wash your hands for 20 seconds once you’ve wet your hands and lathered them up. How should you dry your hands? While many people pay attention to how they wash their hands, it’s easy to ruin the process by drying your hands correctly. Having clean towels are critical to keeping your hands clean. Once you’ve rinsed your hands, be sure to use a clean towel or air dry them if a clean towel is not available. Can I use hand sanitizer instead of washing my hands? The CDC recommends the use of soap over hand sanitizer for getting rid of germs. This is because hand sanitizers aren’t as effective at getting rid of all types of germs, and they also don’t work as well removing certain chemicals and metals. Another issue with hand sanitizers is that they often don’t work well if your hands are greasy or caked with dirt or contaminants. That said, running water and soap aren’t always readily available. In these cases, they recommend using a hand sanitizer that has a minimum alcohol content of 60%. Any sanitizer you purchase should have the percentage listed on the label. How to properly use hand sanitizer Using hand sanitizer effectively is very similar to some of the steps for proper handwashing. These are the correct steps for using hand sanitizer: Apply the sanitizer into one of your palms, using the amount recommended on the sanitizer’s label. Rub your hands together as if you were using soap, covering all areas of your hands including between your fingers, the fronts and backs, and the fingernails. Rub the sanitizer over your hands for 20 seconds or until the sanitizer has dried. This article originally appeared on cnaclassesnearme.com
WOW your anxious employees by showing them you care (Here are nine ways to do so)
Deb Boelkes says it’s crucial for leaders to actively show pandemic-weary employees that they care—and create a WOW experience in the process As the pandemic churns on, your employees may be getting somewhat settled into their strange new routines. But don’t be fooled: Even as they get acclimated with Zoom meetings or working in masks, their anxiety hasn’t gone away. If anything, it’s just gone underground. That’s why Deb Boelkes says it’s up to you as the leader to remind them just how much you care, even as you engage, inspire, and challenge them. “Heartfelt leadership is needed more than ever in times of great fear,” says Boelkes, author of The WOW Factor Workplace: How to Create a Best Place to Work Culture (Business World Rising, December 2019, ISBN: 978-1-734-07610-3, $19.95). “And the good news is that striving to be this kind of leader is nothing new. Best-ever bosses have always sought to WOW employees by showing them authentic love.” Of course, love is only part of the story. Leadership actions that create Best Places to Work include things like sharing pride in your mission, products, and services; empowering workers to feel they have a career instead of a job; challenging them; teaching skills that help them succeed; and helping them feel happy, fulfilled, and successful in their lives by fostering friendship, camaraderie, and a sense of belonging. “Employees still need all of these things,” asserts Boelkes. “The pandemic hasn’t changed that. And the good news is, none of them are mutually exclusive. In fact, all the things you do to create a WOW culture automatically show employees you care.” She offers the following tips: Build trust by keeping team members informed Whatever it takes, find ways to inform team members about what is going on, what’s expected of them, and what they can expect of you. This builds trust. Pick up the phone, make a call, or send emails or an occasional text to keep team members updated in real-time. Be transparent. Share what you know. The more they know about what’s going on, the more connected, comfortable, and assured they will feel. “Tell your team members you want to be kept informed by them, too,” says Boelkes. “Eagerly encourage them to contact you, at their convenience rather than yours, to ask questions, express their feedback about what’s working or not working, and share their concerns. Let them know your ‘virtual door’ is always open.” Pay attention to those who don’t do well working alone Some people feel isolated, depressed, and unproductive when working alone. These are the team members at greatest risk of becoming disengaged. If you have the chance to do so—and if your situation allows—encourage these people to volunteer to be part of small groups that rotate into the office or warehouse every few days. It will give them something to look forward to, help them stay productive, and bolster their sense of self-worth, well-being, and belonging. Be especially considerate and forgiving of those with family issues Some people may find it difficult to work from home even under normal circumstances. But now, with most schools and daycare centers being closed, working from home can be especially challenging for those who must now also perform duties they usually pay others to perform. Be mindful that some workers may struggle with weaving their business responsibilities around additional responsibilities of homeschooling and childcare. “Single parents may be particularly overwhelmed by managing both work and family duties, especially if they have infants or toddlers and no one else to rely on for assistance,” says Boelkes. “You as the leader might even be struggling with these things yourself. Offer team members the option to change their work schedules to best coordinate the sharing of responsibilities for homeschooling, fit in nap times when infants are napping, and so forth.” Offer creative options to ease their burden at home Anticipate that for most everyone, regardless of whether they must now work from home or are still on the job in the workplace with added workload, work-life balance will be a greater challenge than usual. Offer the option for team members to select from a list of home-delivery services, to be funded by the organization, to help reduce the stress and ease the burden in unique ways. Home-delivery service options might include a month of laundry service; a “meal-in-a-box” dinner service (such as Blue Apron, HelloFresh, Sun Basket, etc.); provide a replacement for regularly subsidized school and/or workplace lunches by having lunch delivered daily (such as pizza, salad, soup, and/or sandwich); a short-term subscription to online yoga classes…and send the gift of a yoga mat via an online or local retailer. Understand what makes employees tick and why they work there Don’t underestimate the importance of having regular performance reviews and professional development one-on-ones, especially during times like these, even if such meetings must be held online. Just because jobs are no longer as plentiful as they were just a short time ago, never assume your best team members won’t jump ship. Ask them, “What keeps you at our company?” If you haven’t done it in a while, ask about their career goals. Make sure they know they have your support in working toward achieving their dreams and desires. Determine how, in the current situation, they can best align their unique strengths, evolving professional objectives, and personal needs to best support the organization’s new objectives. Foster networking between team members Help every member of the team and beyond to build and maintain meaningful relationships while working apart. Create online task forces, as needed, to solve new problems that may now come up. Ask for volunteers from different departments, from key customer accounts, and/or from suppliers to keep ideas flowing and everyone engaged (both in and outside the company) and working together to achieve common goals. Schedule plenty of “fun” breaks Encourage team members to periodically get away from the computer, especially if working from home. Suggest they take advantage of scheduled break times
U.S. Weekly Rail Traffic for the week ending April 18, 2020 down 23 percent from prior year
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending April 18, 2020. For this week, total U.S. weekly rail traffic was 403,283 carloads and intermodal units, down 23.3 percent compared with the same week last year. Total carloads for the week ending April 18 were 189,598 carloads, down 27.5 percent compared with the same week in 2019, while U.S. weekly intermodal volume was 213,685 containers and trailers, down 19.1 percent compared to 2019. None of the 10 carload commodity groups posted an increase compared with the same week in 2019. Commodity groups that posted decreases compared with the same week in 2019 included coal, down 35,555 carloads, to 48,423; motor vehicles and parts, down 14,459 carloads, to 1,943; and nonmetallic minerals, down 5,188 carloads, to 30,377. “Rail volumes suffered again last week as extremely difficult times for rail customers and the economy continued,” said AAR Senior Vice President John T. Gray. “Like everyone else, railroads are looking forward to a return to normalcy and an end to the significant challenges associated with the pandemic. Until that happens, railroads will work hard to keep their employees and the communities they serve safe will continue to deliver the goods needed to sustain and heal the nation and when appropriate, support its economic restoration.” For the first 16 weeks of 2020, U.S. railroads reported cumulative volume of 3,592,286 carloads, down 9.5 percent from the same point last year; and 3,823,931 intermodal units, down 10.4 percent from last year. Total combined U.S. traffic for the first 16 weeks of 2020 was 7,416,217 carloads and intermodal units, a decrease of 10 percent compared to last year. North American rail volume for the week ending April 18, 2020, on 12 reporting U.S., Canadian and Mexican railroads totaled 277,795 carloads, down 23.5 percent compared with the same week last year, and 291,778 intermodal units, down 16.5 percent compared with last year. Total combined weekly rail traffic in North America was 569,573 carloads and intermodal units, down 20 percent. North American rail volume for the first 16 weeks of 2020 was 10,236,377 carloads and intermodal units, down 8.4 percent compared with 2019. Canadian railroads reported 72,049 carloads for the week, down 13.5 percent, and 65,088 intermodal units, down 7.9 percent compared with the same week in 2019. For the first 16 weeks of 2020, Canadian railroads reported a cumulative rail traffic volume of 2,253,268 carloads, containers, and trailers, down 4.7 percent. Mexican railroads reported 16,148 carloads for the week, down 10.3 percent compared with the same week last year, and 13,005 intermodal units, down 10.2 percent. Cumulative volume on Mexican railroads for the first 16 weeks of 2020 was 566,892 carloads and intermodal containers and trailers, down 2.2 percent from the same point last year. To view the U.S. rail traffic charts, click here.
March 2020 Logistics Manager’s Index Report®
LMI® at 58.9% Growth is INCREASING AT AN INCREASING RATE for: Inventory Levels, Inventory Costs, Transportation Utilization and Transportation Prices. Growth is INCREASING AT A DECREASING RATE for: Warehouse Utilization and Warehousing Prices Warehousing Capacity and Transportation Capacity are CONTRACTING Likely spurred on by the COVID-19 outbreak and the associated fallout, the March 2020 Logistics Managers’ Index (LMI) presents a marked change from the trends of the past year. While much of the global economy is in free-fall, the logistics (and particularly transportation) industry appear to be thriving. The overall LMI is up (+6.25) to it’s highest level in a year. This breaks a two-year trend of near-constant decreases in the overall index. While there is some evidence to suggest that this spike in logistics activity may not last, for the moment we are reporting significant resiliency across the logistics industry. Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50 percent indicates that logistics is expanding; a reading below 50 percent is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in March 2019. Six of the eight metrics are currently demonstrating growth. Only Warehouse Capacity and Transportation Capacity show contraction in this reading. This is crucial as these two metrics generally move inversely with economic growth (less warehousing/transportation available = increasing demand). The overall LMI score is up significantly from February when it registered at an all-time low of 52.6. This breaks a long-running trend as prior to this reading, the lowest eleven scores in the history of the index have all occurred within the last eleven months. The dramatic increase in Transportation Prices (+16.54), and the similar decreases in both Warehousing and Transportation Capacity (down 17.0 points and 8.12 points respectively) are likely attributable to the recent rush by consumers to stock up on everything they need (or don’t need) during the forced quarantine. The lack of capacity and increase in Transportation Prices is likely due to the inability of retailers to keep staple goods such as eggs or toilet paper on the shelves, and suppliers rushing to replenish them. Transportation metrics continue to be the most dynamic measures in LMI®. Transportation Prices are up 16.54 points to 65.6. This metric was contracting in February, so this is a significant month-over-month increase (in fact, it is the largest monthly jump we have ever recorded for this metric). Interestingly, more granular analysis demonstrates that firms that are upstream in the supply chain saw greater increases than downstream firms (by a rate of 68.0 to 60.0). This likely indicates that the real crunch on transportation is being felt by suppliers looking to move goods to their customers, and less so on retailers attempting to move goods throughout their internal supply chains. Another factor driving prices up is the mismatch of inbound and outbound freight coming in and out of the major metro areas currently under “shelter-in-place” order. A lack of outbound freight means trailers are leaving these cities empty, driving up costs[1]. Transportation Capacity is contracting (-7.9) for the first time since October 2018. The slack that had existed int eh market is clearly gone. With the demand for transportation so high that even commercial airliners are being pressed into cargo service[2]. Warehousing Capacity has experienced its largest drop in the history of the index (-17.0) as retailers struggle to keep up with the spikes in consumer demand. We don’t see much movement in Warehouse Prices (-1.4), but this is likely due to those contracts being longer-term propositions. Inventory Levels are growing again (+7.0) after displaying contraction in February. This is also likely due to the rush on staple goods during the early days of lockdown, when suppliers such as Campbell’s Soup, Conagra, and General Mills were reporting increased shipments of 50% or more[3]. Inventory Costs are up as well (+4.7), likely due to the increased demand and limited capacity. It will be interesting to monitor whether or not consumer demand falls off in the coming weeks. With the initial rush to procure goods winding down and 10 million Americans newly-unemployed, it is likely that consumer spending will decrease. This may lead to a classic “bull-whip effect”, and cause both retailers and their suppliers to become over-inventoried. When comparing data from the last week of March to the first three weeks, there is evidence to suggest that the initial rush is subsiding. The table below displays metric scores from 3/1-3/23, and from 3/24-3/31. The third row presents the difference between the two time periods and the fourth row displays whether or not that difference is statistically significant. The sample size for the two groups is approximately equal so the comparisons are statistically sound. Inv. Level Inv. Cost WH Capacity WH Utilization WH Price Trans Capacity Trans Utilization Trans Price 3/1-3/23 55.1% 62.0% 52.0% 56.9% 65.3% 45.6% 61.6% 69.8% 3/24-3/31 56.5% 71.2% 35.2% 57.4% 63.5% 49.2% 44.2% 61.0% Difference 1.4% 9.2% -16.8% 0.5% -1.8% 3.6% -17.4% -8.8% Statistically Significant? Not Significant Somewhat Significant Strongly Significant Not Significant Not Significant Not Significant Strongly Significant Somewhat Significant The Transportation Utilization is significantly lower and available Warehouse Capacity is significantly higher, with some effects on both Transportation Prices and Inventory Cost. This suggests that the spike in consumer spending is subsiding. Whether or not spending remains high, or drops due to the worsening economy remains to be seen. The index scores for each of the eight components of the Logistics Managers’ Index, as well as the overall index score, are presented in the table above. Six of
Why behavior is everything in the coronavirus era
If the Coronavirus pandemic has taught us anything, it’s that behavior is everything. The impact of the stay-at-home policies shows in the decline in new cases. But like a virus, behavior within organizations can be healthy or detrimental. Not only for individuals but for the success of the organization itself. Many companies emphasize their focus on strategy, financials, or even products over organizational behavior. However, the behavior is actually the key to success in those areas. Here’s why. 1) All businesses are made up of people There’s no getting around it. And no matter what your strategy, plan or product, you need people to develop and execute it. 2) People aren’t robots While we may believe that people simply do what they’re told for a paycheck, it’s never that simple. People have good days, bad days, productive days and unproductive days. 3) Your job as a leader is not to create plans but to lead and motivate people to accomplish an objective Too many leaders spend an inordinate amount of time on planning, almost down to the letter, and then “hand-off” the plan to the team to execute. If your team isn’t bought into the objective and understands their role and impact on it, they’ll struggle to execute. 4) When people are all working towards a common objective in a uniform and aligned way, stuff gets done We all know the challenge of trying to push an initiative forward when internally the organization or leadership thwarts forward progress (intentionally or unintentionally). Two steps forward, one step back. As a leader, it’s your job to clear the way – of obstacles, politics, and BS. 5) Stuff gets done faster, cheaper and more effectively when everyone’s truly aligned Think about your organizational objectives. Are they overarching and apply to everyone in the organization? Or are they selective and narrow? Organizational alignment and ensuring the team are all moving in the same direction gets you more resources and momentum. Just like social distancing, if not everyone is fully participating, it just draws out the time, cost, pain, and negative outcomes. 6) It’s not about stating the objective, but empowering and helping teams to do so While the United States recently stated a 30-day social distancing guideline, they also stated the why and the how. This is what you also need to articulate with your teams when establishing an objective – the why and the how. As we reflect on this pandemic, we need to consider how it sets the example for how we lead and drive our organizations. It’s clear that no matter what the strategy or plan, or how good that plan is, it means little to nothing when the “team” doesn’t or can’t execute it. Following the COVID outbreak, it’s an opportunity for organizations to re-examine how they address the coupling of strategy and culture – and how a stronger and more effective focus on team alignment will ensure your organizational objectives actually get achieved. About the Author Andrea Olson is a strategist, speaker, author, and customer-centricity expert. As the CEO at Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a 4-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been featured in news sources such as Chief Executive Magazine, Customer Experience Magazine, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer at the University of Iowa’s Tippie College of Business, a TEDx presenter and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.thecustomermission.com.
ASSP recognizes five Next-Generation Safety Leaders
The American Society of Safety Professionals (ASSP) has selected its first group of recipients for a new award and professional development program that aims to advance occupational safety and health careers while supporting the entire profession. ASSP’s 2020 Emerging Professional Award was earned by five next-generation safety leaders who demonstrate leadership, volunteerism and a desire to widely impact workplace safety through their involvement in the world’s oldest professional safety organization. “Today’s emerging professionals are tomorrow’s leaders in occupational safety and health,” said ASSP President Diana Stegall, CSP, CFPS, ARM, SMS, CPCU. “We want to support their personal and professional growth so they are well-positioned to help advance the profession and strengthen our Society. This year’s group has exceptional potential and we look forward to seeing them take on greater volunteer leadership roles over time.” The inaugural group selected for ASSP’s Emerging Professional Award are: • Matthew Herron, M.S., P.E., CSP, CPE, is a senior safety engineer at Southwest Research Institute in San Antonio. He has worked in safety since 2009. In his current role, Herron developed the Safety 360 Program. “This innovative program promotes a safety culture that empowers employees to proactively identify, correct and report unsafe conditions and at-risk behaviors,” he said. “We’ve had a dramatic reduction in recordable incidents.” • Jayme Hobson, M.S., CSP, STS, CHST, is a regional safety, health and environmental director for AECOM joint venture GUBMK in Paducah, KY. She began her safety career in 2007. Hobson has instituted leading indicator-based safety and health promotional programs that have been adopted on a global scale. “It’s all about the people,” she said. “It’s my mission to show companies that an investment in safety upfront is worth it.” • Jarred O’Dell, M.S., CSP, CUSP, is a safety director at Syracuse Utilities in Brewerton, NY. He has been a safety professional since 2011 and has been involved in complex projects such as international river crossings on the St. Lawrence Seaway and airlifts into New York’s Adirondack Park system. “I began as a department of one and built a team that is as large as seven during our peak in the summer build season,” he said. • Anthony Marletta, M.S., CSP, ARM, LEED GA, is a risk control consultant at Liberty Mutual Insurance in Long Island, NY, where he began his safety career in 2013. He is leading the development of a new standard on-premises design and maintenance related to slip and fall prevention on ice. “Our goal is to address one of the leading causes of injury to both the worker and general public – that falling on the same level,” he said. • Ogaga Tebehaevu, M.S., CSP, CIH, is an industrial hygiene specialist at East Carolina University in Greenville, NC. He started his career as a safety engineer in 2007. “I like to find new ways to solve workers’ safety and health challenges,” he said. “In 2016, I was part of a team that implemented a LiveSafe app that reports hazards and communicates safety needs. It’s become a hub for hazard data collection and reporting.” The group will be placed into a yearlong professional development program that begins June 1. Each person will be matched with a mentor from ASSP’s past president and Fellows community. Highlights include complimentary registrations for ASSP’s annual Professional Development Conference and Exposition, Leadership Conference and Leadership Development Experience. There also will be opportunities for the emerging safety professionals to engage with ASSP’s Board of Directors at networking events and participate on ASSP committees. The group will have its own page on the online ASSP Community platform to join safety and health discussions and ask questions of experienced members. Candidates for the award must be ASSP members who are under 40 years old or have fewer than five years of experience in the occupational safety and health field. The Society will recognize five recipients each year.
The Isolation Process, A powerful path to more sales
Psst — hey — c’mere! I’ve got a secret to tell you…Sometimes prospects will stall you, sometimes they will lie to you, sometimes they won’t tell you the real reason why they won’t purchase. When a prospect gives you some lame excuse (stall) about why they won’t buy now, he’s really saying, “not yet.” There are two basic types of stalls: People stalls and Thing stalls. Thing stalls are when prospects say — I’m too busy now, your price is too high, I have too many other obligations. Frustrating, isn’t it? Want to make the stall go away? Simple. Here’s the strategy: Isolate the stall or objection as the only obstacle, and then eliminate it from the situation by asking, “what if it was gone, or was not the situation…would you buy?” Isolating and eliminating creates a new situation AND a possible sale. You repeat the stall back to the prospect and then take it away. For example — you say, “I understand, Mr. Johnson. So, what you’re telling me is if it wasn’t the fact that you were too busy, this would be a perfect opportunity for you, is that correct? (get the commitment). (then double qualify) In other words, if you had the time, you would get involved? (then say) Well let’s look at the situation closer, you say you have no time, but you also said that you’re not earning all the money you need. Maybe there’s a way to use this opportunity to buy back some of your time with increased earnings.” Another example — The prospect says, “I don’t have the money.” You say, “If you had the money, would you buy it?” The best way to handle a stall or objection is to take it away and consider new options or solutions. You say…If it wasn’t for…then insert the stall — price, the timing of workload, other obligations — would you buy it? People stalls are worse. Does this sound familiar? Sounds good Jeffrey, but I have to talk this over with my wife, husband, boss, accountant, lawyer, the executive committee, the home office, my cat whiskers, my two-year-old son, or my girlfriend. People not being able to decide on their own — Don’t you hate that? Well, here’s how to overcome it. First, isolate the person to a decision that does not include the others. “Bill, if it was only you…what would you decide?” This gives you a chance to find out how they really feel (will they support you). Second, double qualify the commitment. Ask – “Is there anything you would change or object to if it was only you?” Third, secure the prospect’s support when he meets with the third party. “Bill, when you go to the others, will you support the purchase?” And fourth, find other ways to get a decision now. Suggest alternatives that might get Bill to act now without risk. “Bill, since you’re in favor, and we only need your spouse’s approval, how about if we fill out the paperwork — give it to me so you can be in before the end of the month, and when your spouse says OK, we’ll be ready to go (and if your spouse says no, we’ll tear up the papers — no obligation.)” Hard to say no to that. One of the most interesting things about objections is that even though they continue to recur, they continue to stymie or dumbfound salespeople. I don’t get it. You put your hand on the stove once, you get burned, you don’t do it again. You learn the lesson. Salespeople continue to get burned. If you think about it for any length of time, it’s kind of silly. The isolation process is a powerful way of getting to the truth, finding out the real objection, AND in about 30% of the cases actually making the sale. But it’s only one of an arsenal of weapons available to salespeople for stalls and objections. You can prevent them by covering them in your presentation, or you can at least prepare “best responses” for the ones that happen all the time. Most of the time an objection is actually a buying signal. They’re saying, “I’m interested, but you haven’t sold me yet. And the sale is always made. Either you sell them on yes, or they sell you on no. Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at salesman@gitomer.com or call him at 704 333-1112.
COVID-19 relief for employers: New employee Retention Tax Credit
The coronavirus (COVID-19) pandemic has shut down many sectors of the U.S. economy, causing widespread job losses. Over 10 million Americans applied for unemployment benefits in March, according to the U.S. Department of Labor. And far more claims are expected in April. Some economists predict that the unemployment rate could rise to Depression-era levels of 10% to 15% before the crisis ends (compared to 3.5% in February 2020). To help curb layoffs, Congress has created a new federal income tax credit for employers that keep workers on their payrolls. The credit amount equals 50% of eligible employee wages paid by an eligible employer in a 2020 calendar quarter. It’s subject to an overall wage cap of $10,000 per eligible employee. Here are the details. Eligible Employers Eligible employer status for the 50% employee retention credit is determined on a 2020 calendar quarter basis. The credit is available to employers, including nonprofits, whose operations have been fully or partially suspended during a 2020 calendar quarter as a result of an order from an appropriate governmental authority that limits commerce, travel or group meetings due to COVID-19. The credit can also be claimed by employers that have experienced a greater-than-50% decline in gross receipts for a 2020 calendar quarter compared to the corresponding 2019 calendar quarter. However, the credit is disallowed for quarters following the first calendar 2020 quarter during which gross receipts exceed 80% of gross receipts for the corresponding 2019 calendar quarter. To illustrate, suppose ACE, a limited liability company (LLC), reports the following quarterly gross receipts for 2019 and 2020: First Quarter Second Quarter Third Quarter 2019 Gross Receipts $210,000 $230,000 $250,000 2020 Gross Receipts $180,000 $100,000 $230,000 2020 as % of 2019 86% 43% 92% In this example, ACE had a greater-than-50% decline in gross receipts for the second quarter of 2020. So, ACE is an eligible employer for purposes of the 50% employee retention credit for the second and third quarters of 2020. For the fourth quarter of 2020, ACE is ineligible for the credit because its gross receipts for the third quarter of 2020 exceeded 80% of gross receipts for the third quarter of 2019. Eligible Wages The 50% employee retention credit is available to cover eligible wages paid between March 13, 2020, and December 31, 2020. For an eligible employer that had an average of 100 or fewer full-time employees in 2019, all employee wages are eligible for the credit (subject to the overall $10,000 per-employee wage cap), regardless of whether employees are furloughed due to COVID-19. For an employer that had more than 100 full-time employees in 2019, only wages of employees who are furloughed or given reduced hours due to the employer’s closure or reduced gross receipts are eligible for the credit (subject to the overall $10,000 per-employee wage cap). For purposes of the 50% employee retention credit, eligible wages are increased to include qualified health plan expenses allocable to those wages. Important: The amount of wages eligible for the credit is capped at a cumulative total of $10,000 for each eligible employee. The $10,000 cap includes allocable health plan expenses. For example, Alpha Co. is an eligible employer that pays $10,000 in eligible wages to an employee (Art) in the second quarter of 2020. The 50% employee retention credit is allowed for wages. The credit equals $5,000 (50% × $10,000). Alpha pays another employee (Bart) $8,000 in eligible wages in the second quarter of 2020 and another $8,000 in the third quarter of 2020. The 50% employee retention credit for wages paid to Bart in the second quarter is $4,000 (50% x $8,000). The credit for wages paid to Bart in the third quarter is limited to $1,000 (50% x $2,000) due to the $10,000 wage cap. Any additional wages paid to Bart are ineligible for the credit due to the $10,000 wage cap. Additional Rules and Restrictions The 50% employee retention credit is not allowed for: Emergency sick leave wages or emergency family leave wages that small employers (those with fewer than 500 employees) are required to pay under the Families First Coronavirus Response Act (FFCRA). Those mandatory leave payments are covered by federal payroll tax credits granted by the FFCRA. Wages taken into account for purposes of claiming the pre-existing Work Opportunity Credit under Internal Revenue Code (IRC) Section 21. Wages taken into account for purposes of claiming the pre-existing employer credit for paid family and medical leave under IRC Sec. 45S. In addition, the 50% employee retention credit isn’t available to a small employer that receives a potentially forgivable Small Business Administration (SBA) guaranteed Small Business Interruption Loan issued pursuant to the Paycheck Protection Program under the CARES Act. That program has been funded with $349 billion, so far. In general, a small employer for purposes of the Paycheck Protection Program is one that has fewer than 500 employees — including a sole proprietorship, self-employed person or private nonprofit organization. Businesses in certain industries can have more than 500 employees if they meet SBA size standards for those industries. For additional information on the Paycheck Protection Program, visit the SBA website or contact your CPA. Need Help? No employer wants to lay off employees during these difficult times, but sometimes it’s the only way to stay afloat. The 50% employee retention credit rewards employers that can afford to keep workers on the payroll during the crisis. For more information about this tax-saving opportunity, contact your tax advisor. Claiming the Employee Retention Credit Technically, an eligible employer’s allowable 50% employee retention credit for a calendar quarter is offset against the employer’s liability for the Social Security tax component of federal payroll taxes. That component equals 6.2% of the first $137,700 of an employee’s 2020 wages. But the credit is a so-called “refundable” credit. That means an employer can collect the full amount of the credit even if it exceeds the aforementioned federal payroll tax liability. The allowable credit can be used to offset all of an employer’s federal payroll tax deposit liability, apparently
MHEDA offers virtual 2020 Convention
The Material Handling Equipment Distributors Association (MHEDA) has announced a Virtual Convention due to the cancelation of the May 2-6, 2020 convention in Orlando, Florida. “For the first time in MHEDA’s history, we were forced to make the difficult decision to cancel the 2020 annual convention in light of the impact of COVID-19. While it’s not the same as being together in person, we hope that the Virtual Convention will provide you with a bit of the learning and connecting you would enjoy at a live convention. said Liz Richards CEO of MHEDA. “This series will feature 2020 MHEDA convention speakers presenting and answering questions live from the audience. Space is limited for the live sessions and a recording will be available on-demand. The sessions are FREE for MHEDA members (optional registration fee respectfully requested and non-member fee applies). Richards added. April 2, 2020 The Undiscovered Truth to Leading on Purpose presented by Brant Menswar Critically-acclaimed author/speaker, Brant Menswar, discusses the hidden truth to calming employee fears and making the “good” decisions needed to carry you through. Brant is available for organizational & client enrichment sessions designed to define and activate your core values to start living and leading on purpose. For more information please visit brantmenswar.com or findyourblacksheep.com. WATCH ON-DEMAND (requires member login) April 9, 2020 The Power of Black Sheep Values and How to Find Yours presented by Brant Menswar Join critically-acclaimed author/speaker, Brant Menswar, to help you discover your core values and how to use them to choose and live out your purpose. Brant is available for organizational & client enrichment sessions designed to define and activate your core values to start living and leading on purpose. For more information please visit brantmenswar.com or findyourblacksheep.com. WATCH ON-DEMAND (requires member login) April 16, 2020 Cybersecurity – What MHEDA Members Need to Know! presented by Mike Foster Mike Foster will help CEOs understand the threats that lurk at home and provide the information needed to make positive changes in their organization’s IT practices. Mike Foster’s company provides cybersecurity audits to help organizations protect against cyberattacks. The tests search for immediate threats so organizations can take decisive action. For more information please visit fosterinstitute.com/ LEARN MORE April 23, 2020, 12:00 pm CT Mastering the Art of Virtual Meetings and Presentations presented by Sylvie diGiusto In this session, Sylvie will walk you through some essential tips and steps required that ensure you are making a professional impression on the screens around the world. LEARN MORE April 30, 2020, 12:00 pm CT How to Effectively Manage your Sales Team from Afar presented by Lauren Zak Managing your team remotely can be a challenge even for the most tech-savvy sales manager. Learn how to rely on your CRM to do heavy-lifting, while coaching your team to build a pipeline through effective questioning not just customer check-ins. LEARN MORE May 5, 2020, 12:00 pm CT An Interview with Economist Brian Beaulieu presented by Brian Beaulieu This interview with ITR Economist Brian Beaulieu will give real-world insight on how material handling companies can face the economic crisis unfolding around the world. May 14, 2020, 12:00 pm CT Digital Marketing – What MHEDA Members are Doing and Why presented by Brian Bluff A growing number of MHEDA members have fully embraced digital marketing and are seeing results. In this session, we will unveil Site-Seeker’s research on the state of digital marketing within MHEDA member companies. May 21, 2020, 12:00 pm CT The Complexity of Sales in Material Handling & How It Will Change presented by Ty Swain Ty Swain explores the dynamic changes and complexity occurring in sales for our industry and how field & inside sales will evolve.
ALAN launches Supply Chain Intelligence Center for COVID-19
As COVID-19 continues to challenge freight flows, a longtime logistics relief group is fighting back with an advanced visibility dashboard that it’s releasing free of charge to all U.S. businesses and non-profit organizations. Earlier today, the American Logistics Aid Network (ALAN) launched the ALAN Supply Chain Intelligence Center (http://alanaid.org/map), which provides a cloud-based, real-time view of the latest COVID-19 impacts via an easy-to-use map. The map includes the status of roads, ports, and airports as well as the latest policy changes at national, state, local and county levels. “Right now, organizations have to navigate a very fragmented landscape as they work to deliver essential commodities. And new policies with new supply chain consequences and opportunities seem to be unfolding faster than most groups can keep pace,” said ALAN Executive Director Kathy Fulton. “This tool is our ‘We’re all in this together’ answer to that challenge.” The ALAN Supply Chain Intelligence Center is provided by ALAN as a free-access layer on the Riskpulse platform, a tool used by many global companies and government entities to visualize and analyze supply chain risk. ALAN has mobilized a team of volunteers who update the dashboard daily from the many disparate government sources that share closure or waiver information. “During disasters like this, few things are more important than accurate visibility to the situation on the ground. But getting that visibility often puts a huge burden on organizations at a time when they’re already overloaded,” said Fulton. “Now, rather than numerous entities across the country working overtime to collect and analyze the same critical pieces of information, this dashboard will serve as a single, unified source. “We’re thankful it was ready in time to be of use during this pandemic and hope it will pave the way for a better and faster response during all future crises – expediting the delivery of medical supplies, food, and hydration. And we’re grateful to Riskpulse for making it possible.”
MHI launches MODEX 365 Virtual Trade Expo experience
Material Handling Industry (MHI) has created a virtual show experience to connect you with all the manufacturing and supply chain education and solution sourcing that their bi-annual MODEX delivered in March. While nothing can match the power of attending the face-to-face expo, MODEX 365 delivers the best supply chain solutions, the smartest thinking and the latest equipment and technology solutions in a digital format to meet the immediate needs you have today. MODEX 365 gives you instant access to virtual booth showcases, show news, expo videos, webinars, podcasts and more directly from the MODEX 2020 expo. MODEX 365 features: MODEX 2020 Seminar Webcasts and Podcasts – MODEX’s over 150 show floor seminars can now be accessed as podcasts and webcasts. MODEX 2020 Exhibit Showcases – These virtual exhibit showcases include video booth tours and other solution sourcing details including product photos, news releases, videos, product specifications and brochures, case studies, and exhibitor contacts. Complete videos of the 2020 MHI Annual Industry Report keynote panel discussion and a show floor session on unichannel fulfillment News from the MODEX 2020 show floor including videos and daily show recap videos
ITA makes National Forklift Day a virtual event due to COVID-19
The Industrial Truck Association (ITA) just announced that June 9, 2020, National Forklift Safety Day will be a virtual event this year. “The impact of COVID-19 remains to pose challenges for our nation. Due to these challenges, this year ITA’s National Forklift Safety Day (NFSD) 2020 will be held as a virtual event on the same date and time: June 9, 2020, at 9:00 AM east coast time.” according to Heather Wilson at the Industrial Truck Association. Wilson added, “NFSD 2020, open to everyone, video of speakers and presentations will be available for viewing on June 9, 2020, at 9:00 AM (east coast time) by visiting ITA’s web site (www.indtrk.org) and DC Velocity’s web site (www.dcvelocity.com). The format will remain the same with presentations from government representatives, safety experts, and industry representatives.” The NFSD is now in its 7th year, National Forklift Safety Day remains an opportunity for the industry to unite behind safety and, perhaps this year more than ever, the need to reinforce the need for operator training. Please visit this page for updated information on NFSD 2020.