Working to improve the way we educate our children has been the focus of discussions for a lengthy period of time now -- in our state's capitol and throughout the state. And, one of the primary cries we continue to hear from employers is their inability to find workers with the necessary skills to meet workforce demands. This can be attributed to a number of factors -- the two primary ones being the strength of today's economy having absorbed the bulk of the eligible workforce, and the need for our school systems to elevate curriculum to the level necessitated by the demands of today's workplace.

Building a system that will provide a smooth education-to-careers transition is a priority of the Illinois Chamber of Commerce, exemplified by the establishment of the Chamber's Workforce Development Institute in the fall of 1997. In fact, the Illinois Chamber is the only statewide business organization with a division dedicated solely to the betterment of our state's education-to-careers program. The primary mission of the Institute is to build a bridge between our school systems and the workplace, and to begin providing our youth -- tomorrow's workforce -- a meaningful link between the worlds of learning and earning.

But, to laud the successes of the Chamber's Workforce Development Institute is not sufficient. To be a success, we must look broader than the education-to-careers initiatives. We must also pause to recognize the host of other programs made possible through priorities established by the current administration.

Fortunately, Illinois is a state that is fast-becoming recognized as one focused on preparing tomorrow's workforce for the demands of the 21st century. Just recently, Gov. Jim Edgar accepted the National Alliance of Business 1998 Distinguished Performance Award, which recognized Illinois as "State of the Year" for the strides made in building a new workforce development system and aggressively and creatively focusing on worker training and infrastructure development.

In being presented the award, Gov. Edgar was recognized for establishing a one-stop career network to provide comprehensive employment and training services under one roof for employers and job seekers. It was noted that today, 54 Illinois Employment and Training Centers are operating throughout the state, using the latest in computer and telecommunications technology to provide potential employees with the services they need to find and qualify for employment.

Gov. Jim Edgar's administration is to also be applauded for funding made available through the Industrial Training Program (ITP) -- a program the Chamber has also been an active participant in for a number of years. Recently, the Governor announced nearly $1.6 million in worker training grants to help train about 6,600 workers in some 340 companies across Illinois. The Governor said in his awardingof the most recent round of grants, the goal of the Industrial Training Program is to help Illinois workers develop skills second to none in the world. He credited the tremendous demand for these dollars as the result of the determination of Illinois companies to modernize and compete in the world marketplace. Investments in the workplace education of our citizens, the Governor added, will help ensure that Illinois remains a respected leader in the production of high quality goods and services around the world.

And, of course, we must also recognize the positive strides made by the passage of educational reforms in the spring of 1997, and by the emphasis now being placed on removing welfare recipients from the welfare roles and positioning them in the workplace to become contributing members of society.

All of these efforts combined have helped set the stage for establishing a workforce second-to-none as we approach the new millennium. Let's continue down this path of success, keeping our eyes open to the possibilities we can create by pursuing innovative programs that enhance the workforce we offer our businesses.

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Q & A

Q. Can our company be sued for acts of sexual harassment that we didn’t know about?
A. Yes, according to a recent U.S. Supreme Court ruling. Employers must be proactive with training, policies, and investigations.

Q. How long must I keep a former employee’s employment verification form I-9?
A. The federal Immigration Reform and Control Act (IRCA) requires that the I-9 form must be retained for three years from the date of hire or one year after termination, whichever is later.

Q. Is there a new I-9 form and document list?
A. Not yet, but a new I-9 form, handbook, and an acceptable document list (reduced to 13) are expected to be required in the spring of 1999.

Q. Is turnover increasing?
A. Yes, not surprisingly with the tight labor market. Technology workers and administrative staff have turnover rates averaging about 36%. Estimates of the cost of turnover are at 50% of annual salary.

Q. Are companies paying for liquor on meal allowance expense forms?
A. Only half are, according to a recent survey by Runzheimer International.

Q. Are companies required to provide severance pay?
A. No, there is no Illinois or federal law that requires it. About 85% offer some form of severance pay. Most base it on years of service.

Q. How common is it to give a paid holiday before Christmas and New Year’s?
A. According to the Illinois Chamber Holiday Survey for 1998, 25% are giving a half day and 51% are giving a full day before Christmas. The figure drops to 21% for a half day and 31% providing a full day paid holiday before New Year’s Day. The day after Thanksgiving is the highest non-paid "holiday," at 70%.

Q. How long do I have to keep my employees’ time records? I have several boxes of them.
A. The time and pay records must be kept for three years, since wage claims can go back three years.

Q. Are we required to offer medical insurance continuation coverage for our employees since we have fewer than 20 employees at different times during the year?
A. Possibly. You could avoid the federal insurance continuation requirement of COBRA, if you had fewer than 20 employees during at least 50% of the working days in the previous calendar year.

Q. Can I terminate my 75-year-old clerk and not worry about an age discrimination charge? Isn’t it OK as long as the employee is over age 70?
A. No. The Age Discrimination in Employment Act of 1976 did have an upper age limit of age 70, but the limit was removed January 1, 1987. There currently is no upper age limit except for a narrowly-defined exception for certain executives.

Q. One of my management employees has been working short days. Can I deduct pay on an hourly basis when he leaves early?
A. No, not if this management employee is considered "exempt." He cannot be docked for absences of less than a full day without endangering the exemption from overtime pay.

Q. Am I required to pay time-and-a-half for hours worked over eight hours in a day to my hourly employees?
A. No, you are not required to do so under Illinois or federal law, although in some other states, company policies and union contracts do require this premium pay. The law does require you to pay non-exempt employees time-and-a-half for all hours worked over 40 in your work week.

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Welcome Steve Singer as Chairman

I am honored and proud to accept the Chairmanship of the Illinois Chamber of Commerce for the next two years, and extend my praise and recognition of the many contributions made by outgoing chairman, Jim Schultz.

As your Chairman, it is my goal to work with all Illinois businesses, educational institutions, and government entities to help ensure that our state is the best state for business and workers as we approach the new millennium.

Contributing to my enthusiasm for leading the Illinois Chamber is my previous experience in the public sector, coupled with my current role at Andersen Consulting which keeps me in touch with the needs of Illinois business throughout the state.

Because of the positions I held -- as Administrator of the Illinois Bureau of Employment Security and as the Regional Administrator of the U.S. Department of Labor's Employment and Training Administration - Midwest Region--I have first-hand knowledge that workforce development issues must take high priority if our economy is to remain viable and strong.

Workforce development is a priority of the Illinois Chamber of Commerce. This will become increasingly apparent as you view the pages of this special issue of Illinois Business. In fact, your Chamber is the only statewide business organization with an established division dedicated solely to the education-to-careers concept.

As a Partner with Andersen Consulting's State and Provincial Government practice, I play a lead role in the firm's global Labor Industry segment. Included in my responsibilities to our clients is to help partner with them to establish job/skill matching and job training systems -- as well as workers' compensation, unemployment insurance benefits, and tax systems. Coincidentally, each of these areas are also ongoing priorities of the Illinois Chamber.

As I work one-on-one with companies throughout the United States, I am keenly aware of their need to build on the many successes they currently enjoy, and to eliminate the barriers they currently face. Many of these needs are the very same issues the Chamber squares off with daily: specifically, ensuring we have a skilled workforce to offer Illinois-based companies, and ensuring we proactively achieve legislative successes that help, not hinder, Illinois business. After all, when our economy is strong -- like it is at present-- it means our businesses and our citizens are all winners.

What are some of the goals I have set to achieve during my term as Illinois Chamber Chairman? We need to make the Chamber the "Business Information Store" for Illinois businesses. Very simply, that means a broker and provider of business information that is easy to access, reliable, relevant and timely. This is part of a "technological mandate" for the Chamber. In addition, we must research, forge and strengthen strategic alliances with other intra- and inter-state business organizations to pursue common goals and opportunities: re-evaluate the Chamber's focus on its "customers" and work with a new Illinois state government administration beginning in January.

We must be in a position to move quickly and take advantage of current politically-driven changes, using positive leverage to build on our already visible leadership role in the business community.

I congratulate Jim Schultz on a job well-done during a period of tremendous transition and change for the Illinois Chamber. And, I look forward to building on those successes.

Steven M. Singer
Chairman, Illinois Chamber of Commerce
Partner, Andersen Consulting

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Sports and tourism are synonymous in Rockford

Sports and tourism are synonymous in Rockford, and sports is big business to Illinois’ second-biggest city.

In 1997, the Rockford Area Convention & Visitors Bureau (RACVB) hosted 99 tournaments, which drew more than 129,300 visitors to the region. They booked 61,600 hotel rooms and spent an estimated $9 million at hotels, restaurants, stores, gas stations and tourist attractions.

Tournament sponsors included the U.S. Slo-Pitch Softball Association, Amateur Softball Association, American Youth Soccer Organization, Illinois High School Athletic Association, American Fast-Pitch Association, American Bicycle Association, National Cheerleaders Association and American Waterski Association.

The Rockford region hasn’t always been a sports destination. "We started marketing sports in the mid-1990’s," explained Martha Mitchell, RACVB Vice President. "We were inspired by the Illinois Bureau of Tourism’s initiative. They researched the market and offered special sports marketing workshops." In 1995, RACVB hosted 70 tournaments, which drew 91,500 people, who booked 38,200 hotel rooms and spent an estimated $5 million.

In the tourism business, visitor expenditures are the bottom line, and in 1997 the economic impact of sports on the Rockford region increased 44 percent over 1995. Never one to rest on its laurels, RACVB has a "Destination 2000" Strategic Plan that calls for a further 15 percent increase by 2000.

To achieve that lofty goal, RACVB recently created the position of "Sports Marketing Executive" and hired Christopher Davenport, a former college athlete turned teacher and sports organizer.

"We’re focusing on ‘high value’ events," said Davenport. "Soccer and softball fill our hotels in the summer. We want to draw events like badminton, ice skating, fencing, wrestling and skateboarding to fill our hotels from September to May."

The Rockford region has all the necessary elements: people, facilities, cost and location. "We’ve got a huge cadre of dedicated, enthusiastic sports professionals and volunteers," said Mitchell. "They do a fantastic job of helping host the events."

When it comes to facilities, with two colleges and a progressive park district, the region has a wealth of ball diamonds, soccer fields, tennis courts and gyms, with new facilities coming on line every year. Carlson Arctic Ice Arena, the region’s second indoor ice-skating facility, opened this past winter. Wedgebury Soccer Complex & Indoor Sports Center has 40 acres of soccer fields and a 60,000-square-foot indoor stadium. SportsCore, with 105 acres of soccer and softball fields, is the focal point of many tournaments. The P.I.T. is famous among skateboarders as one of the biggest and best. To top it off, this summer Golf Digest ranked Rockford as the nation’s #1 mid-sized city for golf, based on number of holes per capita and low greens fees.

In the affordability category, the Rockford region’s hotel rates and sports facility usage fees are lower than average. As for location, Rockford is at the juncture of I-90 and I-39, an easy 60-minute drive from Chicago’s O’Hare International Airport.

"We may not have an image as a vacation destination...yet," said Mitchell, "but to many sports organizers, the Rockford Region is the destination of choice. They love it here, and they return often. At the same time, the athletes discover how many fun things there are to do, and they come back for weekend getaways."

To sell and service big tournaments and conventions, RACVB and the Rockford Area Chamber of Commerce are co-sponsoring the production of a colorful map, complete with street directory and key attractions. Advertising revenues will cover production costs. When the two organizations discovered they were planning nearly identical maps, it made sense to join forces — this way everyone benefits.

For more information about holding a sporting event in the Rockford Region, contact RACVB Sports Marketing Executive Christopher Davenport at: phone 800-587-1674, fax 800-691-7035 or e-mail cdavenport@gorockford.com.

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Since assuming his post in May of 1997, Illinois Chamber of Commerce President and CEO Dennis Whetstone has spent a good part of the past year traveling to local chambers of commerce to talk with members and other local businesses. The common thread that has run through his discussions with large and small employers alike - by far their greatest concern - is the availability of qualified employees in all industries and business sectors. "Finding good help these days" is becoming increasingly difficult for employers of all sizes and in all industries.

Many employers expressed a concern about the future, but an alarmingly large number, says Whetstone, report they are already struggling to find the workers they need to fill positions they have available today to keep their businesses operating at full capacity. Based on his conversations with hundreds of business people, the problem will only grow - and could significantly affect Illinois’ now-prosperous economy in the years ahead.

Whether there will be enough qualified workers for greater numbers of jobs that are generated in periods of economic expansion and growth, such as the one we are presently enjoying, is an issue that should concern every employer in the state.

Governor Jim Edgar’s education reform package is a major step toward helping Illinois’ youngest future employees get the educational basics they need. Similar "reform," however, is also needed in the workplace. Rapidly advancing technology, development of new and more efficient processes and procedures in every sector from manufacturing to personal services, and the sheer amount of information being generated and distributed every day, dictate that all of us in the workforce must become lifelong students with the opportunity to learn and grow professionally.

Employers can help ensure their own futures by investing in their current employees, by offering tuition reimbursement for continuing education and/or advanced degrees and certifications, as well as in-house periodic training and skills development. Many Illinois employers do have excellent employee training programs in place - unfortunately, many do not.

Savvy businesspeople know it is short-sighted to focus only on bringing in new customers because it costs five times as much to find a new customer as it does to retain a current one. Employers who believe it’s easier or cheaper to replace long-time, loyal employees with "fresh talent" at a lower salary are also being short-sighted. It is much more costly to hire and train new employees - no matter how "cheap" you can get them - than to provide the necessary training and skills development for employees who already know your business, are invested in the company and dedicated to its continued success. What Do You Think?

The Illinois Chamber of Commerce and Illinois Business magazine want your opinions, insights and comments on Workforce Development in Illinois, which will be the subject of a special editorial focus in the October/November 1998 issue.

We would appreciate your taking a few minutes to respond to the Workforce Development survey you’ll find in this issue, and returning the card by October 1, 1998. The results will be published in the October/November issue.

If your company is addressing workforce development, let us know. If you anticipate a worker shortage in the months or years ahead, voice your concern. Or if you have a different point of view, share it with fellow Chamber members and readers. The Illinois Chamber of Commerce is the voice for Illinois business - so make your voice heard. Let us know what steps the Chamber - as well as employers, colleges, universities, government agencies and anyone else - can take toward ensuring that Illinois businesses like yours have the qualified workers they need to stay in business.

Juli Bridgers
Managing Editor

On-line labor force.

Glenbrook Security Services, a Glenview-based firm employing more than 450, is looking to hire dozens of guards over the next few months. A plumbing service with three full-time staff has one opening to fill. And a nursing home just breaking ground is anxious about filling hundreds of positions at all levels. Thanks to a joint effort by the Glenview Chamber of Commerce and the North Suburban Employment and Training Center, these very diverse companies can take advantage of a powerful program offering a direct route to prospective employees.

"Using the latest technology and resources, the Glenview Chamber is providing our members more tools to help them compete in an increasingly fierce market," says Gregg Goslin, Chair of the Chamber’s Business Council which sponsors this free service. The concept was developed when the chamber staff heard repeatedly that an inability to find employees was inhibiting business growth. "It was clear that we needed to find some way to assist our membership in this area," Goslin remembers. A meeting was set up with the local Workforce Development Board and the issue was discussed and shaped into an action plan.

Now, housed in the chamber office is a proactive way to access employees. Direct Select utilizes the state’s database of individuals seeking a job. Using the chamber’s equipment, employers can search for prospective employees by experience, geographical location, full or part-time hours, wage scale, and any other key traits. A unique software program designed by Jim Ballee of the North Suburban Employment and Training Center then performs a search. The employer can review each page on-screen and highlight those whom they would like to contact for an interview, even that very day!

Over 200,000 job seekers are listed with the State’s Department of Employment Security, which provides a substantial pool to draw from. Individuals automatically are listed when they file for unemployment, but many others, such as those returning to the work force, as well as seniors and recent graduates, also choose to take advantage of this service. Because the North Suburban Employment and Training Center is an accredited One-Stop Career Center, they are already positioned to help those seeking employment. While the potential number sounds overwhelming, the criteria search identifies those who are a fit and then breaks this down further by geographic area.

It is an effective method to include in a comprehensive hiring strategy. "Direct Select lets us target people with the skills we need who are looking for a job," reports Steve Bucklin, President of Glenbrook Security Services. Chamber members appreciate the convenience and familiarity of working within the chamber office.

Working Direct Select from start to finish is very easy and no special skills are needed to work the system, just the ability to work a computer mouse. "This is a valuable resource for many employers, and reflects the chamber’s commitment to providing tangible benefits," Goslin says. "Businesses today are demanding that their associations provide them with services that help the bottom line. This is one example."

Terri Graham, CAE is president of the Glenview Chamber of Commerce.