COVID-19 Employment Resources: What Past Economic Downturns can teach Businesses during COVID-194/29/2020 Shared from the Wake County Economic Development blog site. Guest Writer: Joyce Fang, Marketing Manager, Vaco During every economic downturn, two types of companies emerge. The first focuses on aggressively cost cutting, while the latter deploys a high spend strategy to acquire new technologies and undervalued talent. Rather than committing to one of these, companies should target an optimal balance of each, with their core business and post-recession goals leading the way. In the 2000 recession, Staples did not sway extremely to either side. They reevaluated their business model and, despite closing underperforming locations, grew their workforce by 10%, primarily to support core services. Post-recession, they outperformed their main competitor by 30%. During the financial crisis, Costco opened stores but focused their merchandise mix and limited product variations, allowing for increased discounts and a more streamlined supply chain. These measures allowed revenues and earnings to steadily grow, even post-recession.  Twosteps to take during COVID-19
1. Take a holistic approach. Businesses should selectively focus their capital to ensure they have the right tools and talent to support their core business. In addition to streamlining one’s own business strategy and supply chain, COVID-19 has introduced several new priorities.
2. Know your limits. Only commit to accessible projects.
Companies that follow these principles will not only succeed but will emerge from COVID-19 more resilient. Need some help finding the right talent or strategies to succeed in a virtual market? Either way, Vaco can help. Visit our website or blog page today.
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***UPDATE: We now have a video recording available of our conversation with Speaker Moore.***
The day before North Carolina lawmakers return to session at the General Assembly, North Carolina House Speaker Tim Moore joined us for a virtual town hall meeting, previewing what to expect as legislators return to Raleigh in the face of the COVID-19 pandemic. “The coronavirus has rocked everybody’s world,” said Moore. “This is truly a global issue. We know that right now is a time that we need to make changes in how we’re doing things to help North Carolina weather this storm and survive.” Moore discussed COVID-19 relief packages, as well as North Carolina waiving the unemployment insurance tax that businesses would have paid in the first quarter this year. More than 400 people listened in to hear Speaker Moore. On the healthcare front, he talked about investing in personal protective equipment, expanded testing, and seeing what the state can do to expand coverage for telehealth. Speaker Moore also discussed the situation facing North Carolina schoolchildren. Even though school is canceled for the rest of the school year, Moore said lawmakers must find a way to ensure that children get the core knowledge that they need to be successful. Moore explained that North Carolina received roughly $6 billion in federal funds. He said some of that money already has been allocated to universities, hospitals, and government agencies, but about $3.5 billion still must be allocated in this calendar year. “There’s a time and a place for partisan politics, but this is not it,” said Moore. “We have to get it right. We have to work together and build consensus.” In the House proposal, Moore said lawmakers would look at appropriating the money in two parts. Explaining the need not to allocate it all at one time, Moore said there are too many unknowns with the virus, including what it will look like in the fall. “We certainly don’t want to be caught flatfooted,” said Moore. “There are a lot of things that we just don’t know.” Moore said the House proposal has $75 million that would go to Golden Leaf Foundation for bridge loans for small businesses. “The most important thing for businesses that we can do is to take action to allow liquidity for small businesses,” he said. Moore talked about how, before the pandemic started, North Carolina had low unemployment and consistently recruited businesses to the Tar Heel State. “Things were going really well and then this COVID-19 came around and just rocked everybody’s world,” he said. “This has been a challenge without parallel in any of our lifetimes.” Lawmakers will take more steps to address that challenge when session begins today, April 28. We want to thank Speaker Moore for taking time out of his busy schedule to share his insights on this important topic with those who watched our virtual town hall. We will continue to update our membership and the regional business community as leaders at the local, state, and federal levels continue to address the effects of COVID-19. ***UPDATE: You now can watch a video recording of Coffee with David Meeker.***
At the beginning of 2020, David Meeker was looking forward to a fantastic business year. “We thought 2020 would be our best year ever,” said Meeker, the co-founder of Trophy Brewing and Carpenter Development. “We were feeling higher than we should have been.” Then, the coronavirus pandemic happened. Meeker shared with us during a virtual Coffee with Leaders that the pandemic turned his world upside down. “We were worried about our employees and our customers getting the coronavirus,” he said. “Quickly, we had to do the calculation of how we could pay our team without any revenue. We had to make hard cuts that would allow us to reopen once this ends. How do you best prepare for that? We had to let a lot of people go or furlough a lot of people.” On the Carpenter Development side, Meeker told us that his eight tenants, mainly restaurant and service tenants, all were impacted. Despite the negatives, Meeker’s attitude began to turn positive. “Things are never as bad or as good as they seem,” he said. “That’s what this has taught me.” Meeker and his partners took action. They started to “make short-term decisions with the long term in mind.” “We have ramped up our to-go business and are offering a grocery store,” he said. “There is income there.” You can read about Trophy Brewing offering free groceries for hospitality workers. “We kept our managers on so that we could get reopen quickly after all this is done,” added Meeker. “We finished two projects, our State of Beer and Trophy on Morgan Street expansion, so that they will be ready when things start to open up.” Carpenter Development also waived the rent payments for its eight tenants. Meeker said these actions resulted from a positive outlook. “Optimistic and persistent people run the world,” he said. “If you stay positive through this and can continue to pivot your business, eventually something will work. Your business will work for you and there will be a lane for you in whatever this economy eventually looks like.” Meeker stressed the importance of business owners staying true to their values and figuring out ways to have their business operate more efficiently online. “When we come out of this, it will be a new economy,” Meeker said. He added that there will be opportunities in that economy. We want to thank Meeker for his candid discussion with us and the insights that he provided for other small business owners. We also want to thank First Bank, our series sponsor, for their continued support to make this series possible. Please join us again for our next Coffee with Leaders. On May 5, we will have another virtual session, Coffee with Jon Hayes. Hayes, the founder and CEO of RewardStock, will discuss the impacts of the pandemic on his startup. Registration is open and we hope to see you online on May 5. Shared from the Wake County Economic Development blog site.
Guest Writer: John Reid Sidebotham, Executive Vice President The Nautical Group The last month of widespread remote working under the “stay-at-home” order is changing how we interact and connect—especially professionally. Whether you’re enjoying it or not, you have to admit that it’s easier to miss important nuances and harder to keep and cultivate company culture on Zoom compared to being in person. From a recruiting perspective, determining a technical fit has not changed much. However, on the “softer” side, both companies and candidates are seeking out creative ways to figure out if there’s a mutual culture fit when you are not meeting face to face. As a search firm, we are focused on addressing our clients’ critical talent needs during this pandemic, and are seeing companies maintain a normal hiring structure, but going the extra mile to understand if the hire is a culture fit. A good example of going the extra mile is a hosting a Zoom lunch. We recently heard of a company sending lunch to top candidates and eating together on the video call or you could host a virtual happy hour with the team and the candidate. We are encouraging our clients to take candidates on virtual tours of the office, and at the very least, let the candidate see where they would be eventually working. Company culture is critical—for both the organization and the individual. Don’t let remote interviewing sacrifice the cultural side of your hiring assessment. Think outside the box and figure out a way to personalize interviews amidst our virtual reality. We all know these are challenging times to be recruiting but many organizations are still hiring and, more importantly, able to find the top candidates. Whether you are looking to hire, looking for a new career, or want to learn more about the organization, The Nautical Group has the information you need to get started. If you have ideas or suggestions for this new blog series, contact Kristin Skiba for more information. Shared from the Wake County Economic Development blog site.
During this uncertain time, we know priorities have shifted and our new day-to-day routine has changed. From virtual interviews, happy hours, and events, our new “normal” still seems a bit daunting. Work in the Triangle, a platform meant to help attract and retain the best talent in the Triangle region, has been reactivated to assist individuals who need help finding employment now. You can learn more about Work in the Triangle’s reactivation in our blog post. We hope to shed some light on the unknown by offering a series of blogs focused specifically on employment. Additionally, we will be calling on our trusted partners and expert staffing firms: Greene Resources, The Nautical Group, and Vaco, to speak on these challenges and offer innovative solutions. Our partner, Greene Resources, an award-winning recruiting firm that offers a wide range of talent and staffing solutions, shares tips on remaining competitive in a virtual market. Greene Resources is based in North Carolina, headquartered in Raleigh, with additional offices in Wilmington, RTP, and Burlington. Achieving Virtual Victory Video interviews do not have to be intimidating. With the right practice and preparation, they can become a useful tool to enhance your recruitment and job search efforts. If you are participating in video interviews on either side of the market, here are some best practices to follow on camera:
You can read the full list in Victory at Virtual Career Fairs. As with almost all aspects of the hiring process, career fairs have adapted to new technology. Though they may sound intimidating, virtual career fairs are very similar in the preparation they require to be successful. With some thoughtful planning and tips, you can ace your virtual job hunt!
You can read the full list in Video Interviews: Tips for Success. Whether you’re looking to hire, looking for a new career, or just want to know what they have been up to, the Greene Resources blog has the information you need to get started. If you have ideas or suggestions for this new blog series, contact Kristin Skiba for more information. “A leader is a person who understands their own and others’ unique gifts and brings them together to accomplish a greater good.”
Donald Gintzig, president and CEO of WakeMed Health & Hospitals, shared those words with us at our first virtual C-Suite Perspectives. Gintzig certainly has been busy in recent weeks, leading WakeMed’s response to the COVID-19 pandemic. But, he was quick to talk about his employees and thank them for all that they are doing on a daily basis. “Our employees are doing amazing work,” he said. “Times like this bring out the best of people.” Gintzig shared WakeMed’s nearly 60-year history of serving the community, and how many of their employees are second and third generation employees of WakeMed. Much of Gintzig’s leadership journey was shaped by his time in the U.S. Navy. He served as a commanding officer and reservist in the Navy. A retired Rear Admiral, Gintzig served as acting deputy surgeon general of the Navy for the Bureau of Medicine and Surgery. He also has served as CEO/COO for hospitals across the country. His time in the military also helped prepare him for the challenge he is facing right now, leading WakeMed during the pandemic. “Through the military, I learned that you plan for multiple scenarios and you plan for what to do after the conflict,” said Gintzig. Gintzig shared 10 military leadership characteristics:
The ability to empower, Gintzig said, is critical for a strong leader. “Great leaders empower others to innovate,” he said. “You have to focus on short-term and long-term priorities. Strategy is key to innovation.” An example, he pointed out, would be keeping a company in good financial shape right now while driving the right innovation strategy. Gintzig also discussed how it is important for a leader to define clearly and own his or her organization’s vision for innovation. We want to thank Gintzig for sharing these lessons and perspectives with us, in particular during such a challenging time. We also want to thank our C-Suite Perspectives sponsors for their continued support. It is critical for us to maintain that level of support in order to be able to offer such informative, compelling content. Our next C-Suite Perspectives will take place on June 5. Please check our event page later for updates about the speaker.  We are excited to welcome Kelly Cox to our team! Kelly is the executive assistant to our president and CEO.
She joins us with a background in the hospitality industry. Kelly graduated from Appalachian State with a degree in Hospitality and Tourism Management. A native of Hertford County, N.C., Kelly moved to Raleigh a little more than a year ago. She says she and her fiancé love calling the City of Oaks home. They moved here with their two cats, Chipotle and Stratus. Outside of work, she tells us you will find her checking out Raleigh’s restaurant scene. Welcome Kelly! ***UPDATE*** We now are able to provide the video link of the webinar.
Business owners across our area continue to face questions every day about how best to address the impacts of the pandemic. We find that many of the questions small business owners are asking focus on issues related to employment law and accounting. Our office hosted a webinar, FAQs for Employers about Accounting and Legal Issues, to offer businesses an opportunity to get their questions answered by industry experts. For issues related to employment law, we heard from Kevin Ceglowski, partner, Poyner Spruill LLP. For tax questions, we heard from three presenters with Elliott Davis:
Ceglowski highlighted the key areas where he sees clients have the most questions. These areas include:
His presentation slides provide more details about each of these areas. From Elliott Davis, the speakers covered these accounting topics:
Their presentation slides also cover these areas in more detail. During their presentation, Littrell said, “Everything we talk about is evolving and subject to change on a daily business. Stay in touch with your service providers because there is a lot to manage with all the changes.” Both the representatives of Poyner Spruill and Elliott Davis said that businesses with specific questions could reach out directly to their offices. Our Response Raleigh Chamber site also has answers to many frequently asked questions from small businesses, as well as resources available to them. You also can reach out to us through this site with questions that you may have. Bandwidth Inc. (NASDAQ: BAND), has announced a major expansion of its Raleigh operation. Bandwidth will designate Raleigh as its corporate headquarters and will expand operations in Wake County by adding 1,165 jobs and generate more than $100 million in capital investments.
Bandwidth is a software company focused on communications for the enterprise and has called Raleigh home for the past 19 years. Bandwidth is currently located on North Carolina State University’s Centennial Campus. It has grown to more than 750 employees between the Raleigh, Denver, and Rochester offices. The company completed an initial public offering (IPO) in 2017 and has played a critical role in the development of communications for global companies such as Google, Microsoft, Zoom, and many others. “We are excited to share the commitment Bandwidth has made to Raleigh, Wake County, and the region. Even as this community faces recovering from a global pandemic, we are confident Raleigh will continue to be a competitive, resilient market,” said Adrienne Cole, president and CEO of the Raleigh Chamber. “Bandwidth remains one of our community’s greatest supporters and we are excited that Bandwidth will continue its journey in Raleigh.” Bandwidth will look to grow its existing workforce by adding roles focused on research and development, sales and marketing, operations, and administration. Bandwidth’s new positions will offer wages that average $96,832 in annual total cash compensation. Bandwidth will continue its longstanding commitment to innovation, company culture, and employee wellness by building their corporate headquarters in Raleigh. “We are excited to have Bandwidth grow their roots in Raleigh. Our community will stand to benefit from this announcement for many years to come,” said Michael Haley, executive director, Wake County Economic Development (a program of the Raleigh Chamber.) “From jobs created, to investment in the community, to growth, Bandwidth is helping secure the future of Wake County.” The following organizations were key partners on this project: N.C. Department of Commerce, Economic Development Partnership of North Carolina, North Carolina Community College System, Wake Tech Community College System, Wake County Board of Commissioners, Wake County Economic Development, Raleigh City Council, City of Raleigh Office of Economic Development and Innovation, Capital Area Workforce Development Board, North Carolina State University, and the Raleigh Chamber. **Update**
You can listen to the recorded version of the discussion that we wish to share for anyone who may have missed part of it. “Small businesses are key to our local and state economy,” said Thomas Stith, district director of the U.S. Small Business Administration. “We have more than 900,000 small businesses in North Carolina who employ more than 1.7 million people. The SBA is standing prepared to work with small businesses throughout this state as we go through this tremendous crisis.” Those words from Stith come at a time when many small businesses are asking the SBA and the federal government for help. Stith shared those thoughts at the beginning of his talk during a virtual town hall, organized by the Raleigh Chamber, with Rep. David Price, NC – 4th Congressional District. Both shared their insight for small business owners. Six hundred participants joined them on the call. Price echoed those thoughts about small businesses and the important role they play. He also thanked everyone whose work is keeping the country going at this time. “The federal response to this, so far, has come in three pieces of legislation,” said Price. “In the end, we came together on a bipartisan basis. My role is to summarize the legislation.” The town hall discussion focused on the third piece of legislation, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which created a $349 billion loan package that is designed to help small businesses while encouraging them to avoid layoffs. Much of the discussion focused on the Paycheck Protection Program (PPP), which started the same day as the call, as well as the Economic Injury Disaster Loan (EIDL) program. On the Paycheck Protection Program, Price said, “The idea is to keep businesses in business and keep their payrolls intact. This is the way a lot of people will be able to see their way through this.” “The Economic Injury Disaster Loan is one key initiative, as is today’s launch of PPP,” said Stith. “Small businesses in every county in North Carolina can apply for an EIDL of up to $2 million.” Our blog, SBA Disaster Assistance Loans Available to NC Small Businesses, highlights the key points of the EIDL program, the potential benefits to small businesses, and the application process. “The PPP is designed to keep businesses going,” said Stith. Some of the important aspects of the Payroll Protection Program include:
To learn more about the PPP or to find an eligible lender, please visit the SBA’s web page dedicated to the Paycheck Protection Program. He recognized that there will be a “significant response” to the PPP and many applications are expected. “We feel confident that we have adequate resources to address the applications,” said Stith. “But, we will monitor how things move forward.” Price responded to a question about what to expect next in Washington. “I foresee a continuing need to respond to this crisis,” he said. “There will be gaps and other things that we will need to deal with in a broader bill. We’ll also need to focus on economic recovery. This is going to have a huge economic impact and getting out of it is something that we will have to face together.” For more information or assistance, please call the SBA’s Customer Service Center at 800.659.2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call 800.877.8339. You also can visit our Response Raleigh Chamber page for additional resources and guidance for businesses responding to the effects of the pandemic. |
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Greater Raleigh Chamber of Commerce
800 S. Salisbury St. Raleigh, NC 27601 |