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VIEWPOINT: OSHA Issues Final Rule on HazCom Standard
On May 20, 2024, the Occupational Safety and Health Administration’s (OSHA) announced a final rule updating the Hazard Communication Standard (HCS). The amended rule (29 CFR 1910) better aligns with the United Nations’ Globally Harmonized System of Classification and Labelling of Chemicals (GHS). The HCS requires employers to provide information to their employees about the […]
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On May 20, 2024, the Occupational Safety and Health Administration’s (OSHA) announced a final rule updating the Hazard Communication Standard (HCS). The amended rule (29 CFR 1910) better aligns with the United Nations’ Globally Harmonized System of Classification and Labelling of Chemicals (GHS).
The HCS requires employers to provide information to their employees about the hazardous chemicals to which they are exposed, by means of a hazard-communication program, labels and other forms of warning, safety data sheets (SDSs), and information and training, also known as the “right-to-know” regulation.
The amended rule (1) revises criteria for classification of certain health and physical hazards; (2) revises provisions for updating labels; (3) provides new labeling provisions for small containers; and (4) provides new provisions related to trade secrets and technical amendments related to the contents of SDSs, including requiring a specified 16-section format for SDSs. The updated standard makes changes to help ensure trade secrets no longer prevent workers and first responders from receiving critical hazard information on SDSs. Employers who use chemical products that have SDSs will also have to update their training and chemical hazard communication programs for workers.
While the regulation goes into effect on July 19, 2024, OSHA is giving chemical manufacturers, importers, and distributors from Jan. 19, 2026 to July 19, 2027, to comply with the new rules, depending on if they are evaluating substances or mixtures.
Employers using products covered under the standard must update their HazCom programs, labeling and employee training by July 20, 2026, or Jan. 19, 2028 — again, depending on substances or mixtures. Until those dates, employers and chemical manufacturers, distributors and importers can comply with either the old or new standard — or both — during the transition period.
Michael D. Billok is a member (partner) in the Saratoga Springs and Albany offices of the Syracuse–based law firm of Bond, Schoeneck & King PLLC. Contact him at mbillok@bsk.com. Rebecca J. LaPoint is an associate attorney in Bond’s Albany office. She is a is a management-side labor and employment attorney, serving employers in all aspects of labor and employment law, including employment litigation and counseling. Contact LaPoint at rlapoint@bsk.com.
DiNapoli releases report on IDA activity across the state
Industrial development agencies (IDA) across the state helped spur 4,320 projects valued at $132 billion in 2022, an increase of 5 percent over 2021, according to a recent report from New York State Comptroller Thomas P. DiNapoli. However, that development can come at a cost to local communities, he warned, as those projects combined received
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Industrial development agencies (IDA) across the state helped spur 4,320 projects valued at $132 billion in 2022, an increase of 5 percent over 2021, according to a recent report from New York State Comptroller Thomas P. DiNapoli.
However, that development can come at a cost to local communities, he warned, as those projects combined received more than $1 billion in net tax exemptions.
“IDAs were created to help grow local economics, businesses, and job markets,” DiNapoli said in a statement. “The tax breaks they provide businesses can impact local tax collections, however, and New Yorkers should be mindful about weighing the benefits these projects bring to their communities against the cost. My office reports the numbers on local IDAs to help increase their transparency and make them more accountable to taxpayers.”
According to DiNapoli’s report, the number of active projects has remained relatively stable since 2012, but the reported project values have steadily increased.
County IDAs were responsible for 61.8 percent of all active IDA projects, followed by town IDAs at 17.7 percent, city IDAs at 12.7 percent, New York City at 7.2 percent, village IDAs at 0.5 percent, and city-town IDAs at 0.2 percent.
The report found that the 4,320 active IDA projects would create an estimated 213,887 jobs during their lifespan with a median salary of $42,000. Another 224,234 existing jobs would be retained with a median salary of $45,430. The projects would create an estimated 36,607 temporary construction jobs.
The number of net jobs gained in 2022 totaled 204,147, an increase of 15.2 percent over 2021 job numbers.
The total tax exemptions for IDA projects in 2022 amounted to nearly $2 billion, up $63 million from 2021 figures. Property-tax exemptions represented $1.7 billion, or 87.5 percent, of the total tax exemptions.
Payment in lieu of taxes (PILOT) agreements collected almost $854 million in 2022, lowering the net tax exemptions to $1.1 billion, up 4.3 percent from 2021.
Net tax exemptions tended to run higher downstate, with IDAs in New York City, Long Island and Mid-Hudson regions together totaling 57.6 percent of the total.
IDAs reported total revenues of $123 million, down $9.3 million from 2021. Charges for services accounted for
53.8 percent of reported revenues.
Total IDA expenses decreased $3.5 million to $76 million in 2022. Regionally, IDAs in the Finger Lakes region reported the highest expenses at $12.5 million while those in the Mohawk Valley had the lowest at $3 million.
The Finger Lakes led the state with 66 new projects approved in 2021 or 2022, followed by Western New York with 50 projects, and Mid-Hudson with 47 new projects. Statewide, IDAs reported 336 new projects.
The number of clean-energy projects increased by nearly 53 percent from 85 projects in 2021 to 130 projects in 2022.
DiNapoli’s report summarizes the most recent annual data, which is self-reported by IDAs through the Public Authorities Reporting Information System. The data is not independently verified by DiNapoli’s office. Most IDAs operate on a calendar-year basis, with a few exceptions including the New York City IDA.
His office examines IDA costs and outcomes in several ways including performing audits of the operations of individual IDAs, providing training for IDA officials on various topics, and encouraging improvements in IDA procedures and reporting.
DiNapoli’s full report is available online at https://www.osc.ny.gov/files/local-government/publications/pdf/ida-performance-report-2024.pdf?utm_medium=email&utm_source=govdelivery.
Broome County launches new grant program to help small businesses
BINGHAMTON, N.Y. — Small businesses are often overlooked when it comes to funding programs, and Broome County is hoping to change that with its new Broome County Small Business Development Grant program. Representatives of the county and The Agency, which will administer the program, announced it on June 4. Fueled by $500,000 in American Rescue
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BINGHAMTON, N.Y. — Small businesses are often overlooked when it comes to funding programs, and Broome County is hoping to change that with its new Broome County Small Business Development Grant program.
Representatives of the county and The Agency, which will administer the program, announced it on June 4.
Fueled by $500,000 in American Rescue Plan Act (ARPA) funds, the program will provide one-time grants of between $5,000 and $50,000 for businesses with 200 or fewer employees. It’s a reimbursement grant program, which means the businesses must first spend the money and then request reimbursement.
The grant funds will cover initiatives including purchasing furniture, fixtures, machinery, equipment, or real estate along with real-estate improvements and working-capital needs for things like inventory, payroll, and other operational expenses. Sole proprietors are eligible if the grant could result in the expansion of their product or service.
“Small businesses are incredibly important to Broome County,” County Executive Jason Garnar said at a June 4 press conference that was also livestreamed on The Agency’s Facebook page. “Small businesses also need this kind of help.”
Those businesses are still working to recover from the pandemic and are struggling with the current high interest rates that make borrowing prohibitive. “I think this program is going to help fill in some of that gap financing,” Garnar said.
Applications for the grant program opened on June 5, and funds will be awarded on a rolling basis as the applications are approved. Applicants must provide supporting documentation, and the Broome County Local Development Corporation board will review all applications. The Agency, which administers the program, is the lead economic-development organization for Broome County and governs both the Broome County Industrial Development Agency and the Broome County Local Development Corporation.
Some of the criteria for evaluating applications includes how the project will help the business expand its operations or services, the number of jobs the funding would help create or retain, project readiness, and the eligibility of expenses.
The program is for established businesses and prioritizes businesses that employ low-income to moderate-income workers, minority and women-owned enterprises, veteran-owned businesses, and businesses located within low-income rural communities. The vetting process will include a look-back at several years of financials, Duncan noted. Recipients must maintain or add at least one full-time position.
“We know how important it is to be able to have those funds to grow your business,” said Stacey Duncan, CEO of the Leadership Alliance, which includes The Agency. “Costs are high, and we have to do what we can.”
Garnar said using ARPA funds to launch the program just makes sense as many small businesses are still struggling to recover, and the money is there to help. “It’s a really good use of the funds,” he said.
Unlike a loan program, the funds won’t be replenished, he noted, but The Agency and the county will evaluate the response to the program and assess whether some sort of continuing program is warranted.
“We think there is a lot of need for a gap program like this,” Duncan said.
Many small businesses don’t have access to grant opportunities, Broome County Legislature Chairman Daniel Reynolds said. That’s why it was important the program did not include a matching funds requirement.
“Sometimes that’s a barrier to small business, too,” he said. Businesses have put off projects because they don’t have funds available, he said, and a matching component would be a deterrent.
The goal of this program is to make it possible for small businesses to take the next step necessary to either grow or to just be able to continue operations, Reynolds said. Ultimately, the hope is that the businesses participating will be able to grow and add jobs.
More information about the new grant program and the application are available on The Agency’s website at theagency-ny.com/economic-development-resources.
Survey: Workers’, retirees’ confidence hasn’t recovered from drop in 2023
Majorities remain optimistic about retirement prospects Workers’ and retirees’ confidence has not yet fully recovered from the “significant drop” measured in 2023, but majorities remain optimistic about their retirement prospects and the lifestyle they envisioned. That’s according to the 34th annual Retirement Confidence Survey (RCS), which was published on April 25. RCS
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Workers’ and retirees’ confidence has not yet fully recovered from the “significant drop” measured in 2023, but majorities remain optimistic about their retirement prospects and the lifestyle they envisioned.
That’s according to the 34th annual Retirement Confidence Survey (RCS), which was published on April 25. RCS is the longest-running survey of its kind measuring worker and retiree confidence and is conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research, both of Washington, D.C.
“Overall, two-thirds of the workers and three-fourths of the retirees are very or somewhat confident about having enough money to live comfortably in retirement, which is unchanged from 2023. The survey also shows that workers and retirees are confident that government programs such as Social Security and Medicare will provide benefits of equal value to today and believe they understand the Social Security program,” Craig Copeland, director of wealth-benefits research at EBRI, said in the survey report. “Confidence is similar across all ages. But, in some cases, younger workers are actually more confident in certain aspects of retirement. For generation specific results, Boomers and Millennials reported higher confidence in having enough money to live comfortably throughout retirement than Gen Xers.”
The 2024 survey of 2,521 Americans (1,255 workers and 1,266 retirees) was conducted online from between Jan. 2 and Jan. 31 of this year. All respondents were ages 25 or older and were prompted to respond to questions about retirement confidence, financial health and concerns, retirement savings and preparation, health care in retirement, workplace savings, retirement income, transition to retirement, and trusted sources of information.
“Workers and retirees are also concerned that their retirement could be impacted by the U.S. government making changes to the American retirement system. In fact, 79% of workers and 71% of retirees have this concern,” Lisa Greenwald, CEO of Greenwald Research, said in the EBRI report. “Inflation’s impact on their retirement also remains a concern among workers and retirees.”
Workers’ and retirees’ confidence has not yet fully recovered from the significant drop measured in 2023, but majorities remain optimistic about their retirement prospects.
1. Americans’ confidence has not returned to prior levels, but the survey found signs that it is “making a positive recovery” as 68 percent of workers and 74 percent of retirees are confident they will have enough money to live comfortably throughout retirement. However, it’s “not a significant increase” from last year, EBRI noted.
Perhaps contributing to the positive trend upward is workers’ and retirees’ increased confidence in their income. EBRI cites the U.S. Census as indicating wage growth is now outpacing inflation growth. Americans are starting to feel this shift as 28 percent of workers and 32 percent of retirees who are confident feel that way due to their finances. However, inflation remains as a top reason for Americans’ lack of confidence.
Among those who do not feel confident, 31 percent of workers and 40 percent of retirees cite inflation as the reason why. Additionally, 39 percent of workers and 27 percent of retirees who are not confident feel this way due to their lack of savings.
2. Social Security remains the top source of actual and expected income for Americans in retirement.
Most workers (88 percent) expect Social Security to be a source of income in retirement. Retirees confirm this sentiment as nearly all (91 percent) report Social Security as a source of income. The survey additionally found that 62 percent of retirees report Social Security is a major source of income, while only 35 percent of workers expect it to be a major source of income.
Most Americans expect/report Social Security as a source of income in retirement, but fewer understand it; those who do understand it are a “clear majority,” EBRI said. Two-thirds of workers and three-quarters of retirees understand Social Security and the various employment and claiming decisions that impact their retirement benefits at least somewhat well.
While most claim they understand Social Security, fewer than half of workers have reviewed the amount of their Social Security benefits at their planned retirement age, and 59 percent have thought about how the age at which they claim Social Security will impact the amount they receive.
Expectedly, “significantly more” retirees than workers have completed either task, with 77 percent having undertaken each.
3. Workers expect to claim Social Security as soon as they retire, but also expect to work for pay in retirement.
Workers believe they will start claiming Social Security benefits at a median age of 65, which is the same age workers expect to retire. While age 65 has been the historical median age workers expect to retire, significantly more workers (28 percent) this year expect to retire at age 65.
Retirees, on the other hand, report retiring at a significantly lower age than workers anticipate. Most retirees, 7 in 10, report retiring earlier than age 65, with a median retirement age of 62. Also contradicting workers’ expectations, retirees report collecting Social Security later into their retirement but earlier than workers’ expectations at around age 64. Similar to last year, half of retirees say they retired earlier than expected.
Two in five retirees who retired early say they did so because they could afford to, but nearly seven in 10 retirees indicate the reason was “out of their control,” EBRI said.
4. Americans’ retirement calculations result in a desire to save more, as estimations drastically differ from what Americans currently have.
Half of Americans have tried to calculate how much money they will need in retirement. In reaction to their calculation, 52 percent of workers and 44 percent of retirees started to save more. Even though seven in 10 workers and nearly eight in 10 retirees have saved for retirement, this renewed interest in saving is spurred by the “drastic difference” in what Americans believe they will need for retirement compared to how much they currently have saved, EBRI said.
A third of workers who tried to calculate how much they will need in retirement estimate they will need $1.5 million or more. However, a third of workers currently have less than $50,000 in savings and investments. In addition, 14 percent of workers have less than $1,000 in savings and investments.
As part of their retirement preparations, half of the workers have estimated how much income they will need each month in retirement. One quarter of workers do not know how much pre-retirement income they will need to replace in retirement, but an additional quarter of workers believe they will need to replace 75 percent or more of their pre-retirement income.
5. Workers would like help in saving for emergencies through their retirement plan. Two-thirds of workers and almost three-quarters of retirees believe they have enough savings to handle an emergency expense. Additionally, almost half of workers have planned how they will cover an emergency expense in retirement.
However, the ability to save for emergencies is at the top of workers’ list of valuable improvements they would like to see be made to their retirement-savings plan. Some Americans are already using their retirement plans to pay for emergencies as nearly one in five have taken a loan or withdrawal from their retirement plan.
Many of those who took money from their plan did so to pay for unforeseen circumstances such as making ends meet (30 percent), paying for a home or car repair (17 percent), and covering a medical expense (15 percent).
6. Workers are more likely this year to want to purchase a guaranteed income product with their retirement savings.
Among workers who are offered a workplace retirement-savings plan, one-third believe having investment options that provide guaranteed lifetime income to be the most valuable improvement to their plan, EBRI said.
This landed second on workers’ list of most valuable improvements to their plan. Significantly up this year, more workers who are contributing to their employer’s retirement savings plan, 3 in 10, expect to use savings from their workplace retirement-savings plan to purchase a product that guarantees monthly income for life once they retire.
This is substantiated by the fact that 83 percent of workers who are participating in a workplace retirement plan would be interested in using some or all of their retirement savings to purchase a product that guarantees monthly income.
7. While expenses in retirement are higher than some retirees originally anticipated, retirees’ lifestyle in retirement is better than they expected.
Significantly up this year, over one-third of retirees say their travel, entertainment, or leisure expenses are higher than they expected. Half of retirees say their overall expenses in retirement are higher than they originally expected, but nearly four in five say they are able to spend money how they want within reason.
Despite higher-than-expected costs, significantly more retirees this year, three in 10, believe their overall lifestyle in retirement is better than expected. Additionally, over two-thirds of retirees agree they are having the retirement lifestyle they envisioned. A quarter of retirees strongly agree with this statement.
SU student-athletes, area eateries to benefit from NIL program
SYRACUSE — From now through Aug. 1, some Syracuse–area independent restaurant owners are giving patrons the chance to “round up” their bill to benefit SU student-athletes. Onondaga County Executive Ryan McMahon announced the partnership with Syracuse University (SU) Athletics on May 30. Surrounded by local restaurant owners, McMahon made the announcement outside the John A.
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SYRACUSE — From now through Aug. 1, some Syracuse–area independent restaurant owners are giving patrons the chance to “round up” their bill to benefit SU student-athletes.
Onondaga County Executive Ryan McMahon announced the partnership with Syracuse University (SU) Athletics on May 30.
Surrounded by local restaurant owners, McMahon made the announcement outside the John A. Lally Athletics Complex on Syracuse’s South campus. SU men’s basketball coach Adrian Autry and SU football coach Fran Brown both attended the announcement.
Patrons at participating restaurants will have the opportunity to “round up” when paying the bill, McMahon said.
“And whether you’re rounding up to the dollar or rounding up with a couple of dollars, that would be the patron’s choice,” he noted.
The extra dollars and cents would benefit Orange United, and the student-athletes involved in the NIL program. Syracuse University (SU) Athletics back in September unveiled Orange United, which the school describes as the “preferred” NIL collective for Syracuse student-athletes to leverage their name, image, and likeness (NIL) opportunities to earn money. Orange United is “powered” by Atlanta, Georgia–based Student Athlete NIL, or SANIL, SU said in its announcement.
NIL is playing a major role in college sports recruiting these days with most universities deploying collectives to help compete as the average NIL deal needed to attract high-level recruits to commit to a university continues to rise in value.
The initiative also seeks to benefit area restaurant businesses and the local economy and community.
“Syracuse Athletics drives the hospitality industry,” McMahon said. “Coach Autry knows this and Coach Brown is learning this, when we are doing well in Syracuse athletics, the mental health of this community is much better.”
Some of the participating restaurants in the pilot program include Apizza Regionale; Emerald Cocktail Kitchen; Kitty Hoynes; Scotch ‘N Sirloin; Noble Cellar; King David’s Restaurant; Middle Ages Brewing Company; San Miguel Mexican Bar & Grill; Trappers II Pizza & Pub; The Taphouse on Walton; Buried Acorn; Pavone’s Pizza; and Willow Rock Brewing Company.
The program begins June 1 and continues through Aug. 1, Mark Hayes, general manager of Orange United, said in his remarks at the Thursday morning announcement.
“We want to drive awareness. We want to drive foot traffic to these local establishments … and also supporting the mission to help our student-athletes,” Hayes added.
He also noted that selected SU student-athletes will provide their own engagement with the restaurants involved, including social-media posts and meet-and-greet events.
In answering questions from local reporters, McMahon also acknowledged that Onondaga County operates on sales taxes and could generate increased revenue as a result of the initiative.
“Every service we provide this community is driven by sales tax,” McMahon said. “[It’s a] $1.5 billion operation … our property taxes only make up about $150 million of the $1.5 billion. Everything else is from consumer spending. We need a competitive entertainment infrastructure.”
Northrop Grumman wins nearly $120M U.S. Navy contract, with most work to be done in Syracuse
SYRACUSE — Northrop Grumman Systems Corp. has been awarded a $119.6 million long-term, requirements contract for the repair of 17 weapon replaceable assemblies and shop replaceable assemblies in support of the E-2 aircraft. Much of the work will be done in Central New York. This is a 19-month contract with no option periods, and work
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SYRACUSE — Northrop Grumman Systems Corp. has been awarded a $119.6 million long-term, requirements contract for the repair of 17 weapon replaceable assemblies and shop replaceable assemblies in support of the E-2 aircraft. Much of the work will be done in Central New York.
This is a 19-month contract with no option periods, and work will be completed by December 2025. Work will be performed in Syracuse (88 percent); Duluth, Georgia (4 percent); Woodland Hills, California (4 percent); Burnsville, Minnesota (2 percent); and Ronkonkoma, New York (2 percent), according to a June 3 contract announcement from the U.S. Department of Defense.
No funds will be obligated at the time of award and funds will not expire at the end of the current fiscal year. Appropriate fiscal year working-capital funds (Navy) will be used as delivery orders are issued, per the contract announcement.
Naval Supply Systems Command Weapon Systems Support in Philadelphia, Pennsylvania is the contracting authority.
KeyBank rolls out KeyVAM for treasury-management clients
Uses Qolo’s technology platform KeyBank (NYSE: KEY) is now offering KeyVAM, which it describes as a virtual account-management product for treasury-management clients who have “complex” demand deposit account (DDA) structures and want to streamline their cash-flow and account structure. Cleveland, Ohio–based KeyBank is the No. 2 bank ranked by deposit market
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KeyBank (NYSE: KEY) is now offering KeyVAM, which it describes as a virtual account-management product for treasury-management clients who have “complex” demand deposit account (DDA) structures and want to streamline their cash-flow and account structure.
Cleveland, Ohio–based KeyBank is the No. 2 bank ranked by deposit market share in the 16-county Central New York area. It operates branches across the region and upstate New York.
KeyVAM is a technology-enabled, cash-management product supported by Qolo, providing clients with the ability to manage multiple clients or cost centers with custom virtual-account structures; automated reporting and reconciliation; an intuitive user interface; and “fast, easy API [application program interfaces] integration,” per the May 7 announcement.
With Qolo’s omnichannel payments platform, businesses can instantly open or close new subaccounts using self-service tools, KeyBank said. The collaboration with Qolo represents is designed to make cash management easier for treasurers across the U.S., “solving their complex payments and financing needs.”
Virtual accounts are linked to an existing commercial bank DDA on KeyNavigator, KeyBank’s online commercial-banking system. KeyVAM allows incoming or outgoing payments to be reflected in real-time, to maintain a virtual sub-ledger that provides a “continuously updated” transaction and balance history to deliver transparency into company-wide cash flows.
These accounts have an account number accessible on external payment networks, are self-serviced and managed, and can be established to reflect a client’s business needs or ideal liquidity structure with complete flexibility.
KeyVAM also provides the ability to process real-time payments (RTP) in and out of the sub ledgers, in addition to wire and ACH (automated clearing house) transactions.
“In today’s fast-paced digital business environment, clients appreciate real-time information and the flexibility to reflect account structures without having to open a multitude of physical accounts with multiple banks,” Jon Briggs, head of KeyBank Commercial Product, said in the bank’s announcement. “With KeyVAM, we can provide crucial straight-through processing for reconciliation or to help segregate transactions across multiple business units or entities.”
“We’re excited to power KeyVAM through our advanced card and payments capabilities combined with our bank-grade ledger,” Patricia Montesi, CEO of Qolo, added in the KeyBank announcement. “This collaboration with KeyBank marks a giant leap forward in making next-generation financial technology available to businesses of all sizes and in any market.”
KeyBank says KeyVAM offers several benefits. They include real-time reconciliation within a flexible virtual account structure, bringing speed and clarity to cash management while keeping up with evolving regulatory needs. They also include improved efficiency streamlining cash management to help avoid unwanted bank fees and additional overhead.
In addition, the benefits include customized reporting with transaction and reconciliation data for each virtual sub account, while the client’s total funds settle in one physical DDA account; and easy integration with a suite of flexible APIs designed to work with the client’s existing infrastructure, KeyBank said.
Nottingham Trust advisor talks interest rates, inflation
Interest rates and inflation have been on the minds of almost everyone, whether you’re a business owner or a consumer at the grocery store trying to feed your family. According to one expert, there may be some relief in sight soon. The period of the past several years has truly been a unique experience, says
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Interest rates and inflation have been on the minds of almost everyone, whether you’re a business owner or a consumer at the grocery store trying to feed your family. According to one expert, there may be some relief in sight soon.
The period of the past several years has truly been a unique experience, says Karissa McDonough, senior VP, fixed-income strategist with Nottingham Trust, a division of Community Bank, N.A.
“You had an economy that essentially came to a screeching halt,” she says regarding the economic shock of the pandemic era. It was uncharted water for the Federal Reserve, which was, by default, the only player left in the game for a time.
Armed with lessons learned during the 2008 financial crisis, the Fed took steps to promote quantitative easing. In simple terms, it means putting more dollars into the system to spur people to spend and invest it.
At the same time, the Federal Reserve dropped the federal funds rate — the interest rate that banks charge each other to borrow or lend excess reserves overnight — to practically zero and had to leave the rate low as it waited for consumer confidence and spending to return, McDonough says.
Then as consumers started to spend on goods, the economy rebounded and supply chain issues cropped up, which helped cause prices to jump.
“Inflation started to just take off,” she says.
The Federal Reserve responded by raising interest rates in a series of 11 rate hikes over a period of about a year and a half (2022-2023). That brought rates to 20-year highs and started concerns about a recession.
For businesses, both inflation and high interest rates have caused concerns, making it more expensive to operate and attract customers. Everyday consumers have seen the crunch at the grocery store and most places they shop as prices rose to match the rising cost of doing business.
Those concerns were heavy at the end of 2023, especially because this was such a novel situation, McDonough says.
So, how does this end?
Typically, an economic cycle ends because of a big macro event, but in this situation, the cycle started because of a macro event — the pandemic.
McDonough is less worried today about a recession than she was six months ago. “Now I’m sort of thinking it goes one of two ways,” she says.
The first is a “soft landing” of sorts where inflation settles somewhere around the “norm” of 2 percent allowing the Federal Reserve to incrementally lower interest rates until things balance out.
The second possibility is continuing small pockets of volatility, especially in areas where private credit options are in play.
Another concern going forward is the vast amount of commercial real estate as offices sit empty while people continue to work remotely even after the pandemic, McDonough says.
For investors, some volatility remains, and she cautions against making rash moves. Now is a good time to reassess your portfolio and make sure it’s well balanced.
“Treasuries are super attractive right now,” she notes of investment options. Treasury bonds are currently paying rates of 4.5 percent to 5 percent, she says.
Government-backed mortgages are another attractive investment option at the moment for those considering portfolio changes.
Going forward, McDonough says the expectation is that the Federal Reserve will make at least one if not two rate cuts before the end of this year.
“I believe the federal policy is working,” she says regarding the Fed trying to create a soft landing.
Nottingham Trust and Community Bank, N.A. are business lines of Community Financial System, Inc. (NYSE: CBU), a DeWitt–based banking and financial-services company. The company also operates Benefit Plans Administrative Services, Inc., a benefit-administration firm, and OneGroup NY, Inc., an insurance subsidiary.
Tompkins Financial Advisors grows through relationships
ITHACA, N.Y. — It’s been a tricky time for wealth management since the global COVID pandemic, but Tompkins Financial Advisors, the wealth-management firm of Tompkins Financial Corp., isn’t slowing down. “This is where the rubber meets the road,” says Jennifer Green, senior VP and managing director of Tompkins Financial Advisors’ Central New York region. “We’ve
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ITHACA, N.Y. — It’s been a tricky time for wealth management since the global COVID pandemic, but Tompkins Financial Advisors, the wealth-management firm of Tompkins Financial Corp., isn’t slowing down.
“This is where the rubber meets the road,” says Jennifer Green, senior VP and managing director of Tompkins Financial Advisors’ Central New York region. “We’ve certainly experienced volatile markets the past several years.”
That makes it more important than ever for advisors at Tompkins to reach out and connect with their clients, she adds, and it’s something the company has been focused on of late.
Forging those types of connections and relationships with clients is the hallmark of what sets Tompkins apart from competitors, Green contends, and she believes it is a big reason the firm is adding new clients all the time.
“Probably 40 percent of our new assets under management revenue is coming from existing client referrals,” she says. That includes an increase in generational planning, planning with multiple generations of the same family, which has seen a significant uptick over the past year and a half.
Another 20 percent to 30 percent comes from referrals from strategic partners such as estate-planning attorneys or accountants, Green says.
Those referrals really drive home the trust that developing relationships brings, she notes. A number of advisors have been with Tompkins for 10-15 years, or even longer, allowing them time to really cultivate those relationships.
One of Tompkins Financial Advisors’ newest advisors may be new to the wealth-management side of the business but isn’t new to the company.
At the beginning of this year, Thomas Cannon left his position as branch manager of the plaza branch of Tompkins Community Bank, the banking subsidiary of Tompkins Financial Corp. (NYSE: TMP).
Cannon started his career at Tompkins as a teller right out of college in 2018 and quickly advanced through multiple positions at the bank.
In all those roles, Cannon says he enjoyed being able to get to know and build relationships with clients. “It really felt like the next step in serving my clients,” he says of his transition to wealth advisor.
He was inspired in no small part by another Tompkins wealth advisor, William Murphy.
“I’ve been getting lunch with him ever since I was a teller,” Cannon recalls. He has always admired the relationships Murphy built with his clients and aspired to do the same.
“Trust is the foundation for any successful relationship,” he says, adding that people need to be comfortable with the person that is helping them plan their future and know that person is looking out for their best interests. “We’re talking about people being able to retire on their timeline,” and leave a legacy for their family, friends, and charity, he says.
Cannon holds a bachelor’s degree in pre-counseling from Moody Bible Institute and will receive his MBA with a concentration in finance from Post University this August. After that, he will start the 12-month to 18-month process of earning his certified financial planner (CFP) designation.
In his new role, Cannon also administers the Tompkins Charitable Gift Fund, an experience he has found rewarding. The fund provides financial awards to nonprofits in the community through both donor-advised funds and the Director’s Philanthropy Fund.
Enabling Cannon to really dive into his new role is knowing that his prior position at the plaza branch is in capable hands. Michelle Harlan, who served as an assistant branch manager and has 16 years of banking and financial experience, has filled the role.
Tompkins Financial Advisors currently employs between 20 and 25 advisors, and “we’re always growing,” Green says. The firm has between $4.5 billion and $5 billion in assets under management. It provides an array of wealth management and trust services with offices in Ithaca, Syracuse, Rochester, Buffalo, Mount Kisco in New York; and Wyomissing and Blue Bell in Pennsylvania.
VIEWPOINT: How to Navigate Recruitment & Retention Challenges
As the competitive job market proves its staying power, many industries continue to suffer from labor shortages and retention challenges. With more opportunities than ever before, the demands and expectations of the workforce are changing, forcing companies to reassess their benefit and culture offerings to remain competitive. To ensure operations are not negatively impacted by
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As the competitive job market proves its staying power, many industries continue to suffer from labor shortages and retention challenges. With more opportunities than ever before, the demands and expectations of the workforce are changing, forcing companies to reassess their benefit and culture offerings to remain competitive.
To ensure operations are not negatively impacted by these persistent issues, leaders must act now to mitigate these challenges by finding ways to effectively communicate who they are, what they believe, and what they offer as an employer.
There are four prevailing pain points in recruiting and retention today that contribute to ongoing labor-shortage challenges, with the most obvious being the state of the current job market. Businesses are finding it harder than ever to remain highly competitive in an environment where the pool of experienced, skilled laborers seeking new opportunities is getting smaller.
To make matters worse, potential hires have more options than ever before. This puts companies across industries in direct competition with each other and applies pressure for leaders and hiring managers to remain well-informed of ever-changing and sometimes “trendy” benefits and perks.
Wages, for example, are a leading driver of an employee’s decision to accept a job offer or remain at their current company. Across the board, from fast-food establishments to financial institutions, entry level wages are rising as the demand for workers increases. Leaders must remain aware of what competitors and industry peers are paying their workforce to ensure they are finding, and keeping their top talent.
Lastly, the rate of turnover continues to rise for many, as the workforce is constantly seeking opportunities for better pay, more benefits, and greater flexibility. This continues to be highly disruptive to operations and costly for employers to find and train new talent.
These challenges, unfortunately, aren’t going anywhere, so companies must seek to make systematic changes to stay ahead of the curve. Below are some recommended strategies to deploy in [the year ahead] to effectively navigate these pain points.
Communicating your expectations properly to prospective hires and current employees will build a strong foundation of transparency and trust. For starters, when seeking new talent, make sure that the job expectations you are sharing are accurate, clear, and all-encompassing. This applies to the job description, the way you define your culture, and day-to-day expectations for the role. This ensures you are hiring someone with the right skillset for the job and avoids any frustrations from employees that feel they were misled. Beyond job descriptions, these rules should apply to your marketing materials as well, from your website to your social media platforms. All these materials should paint an accurate picture of your culture and the nature of your work.
When it comes to retention, ensuring communication goes two ways is key, especially with the abundance of opportunities in the marketplace that threatens to attract your workforce to competitors on any given day. Conducting regular “stay interviews” is a great way for managers to identify and address any frustrations or desires from employees before they consider leaving. Your people should take an active role in shaping your culture to ensure that you are fostering a pleasant and positive work environment for all, and regular check-ins are invaluable in making sure your employees feel heard.
When it comes to fostering a culture that remains competitive in the marketplace, you should start by asking yourself some vital questions. Do my employees value the benefits I offer? Are we living up to the way we define our culture externally? Reflection is the first step in making pivotal changes to attract more talent and keep your current workforce happy.
This is another area where listening to feedback from your employees is crucial, especially in an environment where the needs and wants of the workforce continue to evolve. Through methods like input sessions and surveys, companies should seek to refine the employee experience in ways that meet employees’ needs, while identifying recurring language and employee desires to re-articulate their culture in job descriptions and external channels. This ensures that current employees see the change they want to see, while also improving your chances of attracting likeminded prospects.
One group that should not be overlooked in this process are your board members. Since they form the governing body that oversees the direction and performance of all areas of your organization, it only makes sense to ensure they are taking an active role in the creation and maintenance of your culture.
While the above methods are great strategies for addressing labor shortages in the long term, many companies are seeking short-term solutions to their staffing woes. That’s where automation and outsourcing come in.
Automation is a great way to address administrative tasks so that your current employees can focus on value-driven work and avoid being overwhelmed. For example, tools like chatbots can collect and organize customer or prospect information quickly, improving efficiency and streamlining operations. There is also more complex software available for functions like accounting that can improve reporting accuracy while saving companies time and money.
Outsourcing is another great opportunity to ensure you have access to professionals while avoiding the cost and disruption of turnover. Operations like auditing, human resources, and information technology are commonly outsourced to combat a lack of experienced and skilled talent.
Recruitment and retention will continue to pose challenges for leaders in the year ahead, but they are essential to successful business functions. Taking proactive measures to appeal to the right talent and maintain a content workforce will help you to combat and avoid the common pain points of the labor shortage and thrive in competitive markets.
Joanne Vadala is director of talent management at The Bonadio Group.
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