Home Posts tagged evolution


By Allison Ebner

Over the past several decades, the human-resources position has slowly evolved from a very tactical and compliance-heavy role to a more holistic and thoughtful voice that helps lift an organization to bigger heights.

That slow pace of evolution has had a few Red Bull energy drinks recently and is now moving at the speed of light, threatening to leave behind HR professionals who are not moving to gain new competencies and tools.

The ‘new world of work’ is comprised of a complex ecosystem of operations, technology, and integration of human capital. In short, this symphony sounds perfectly harmonized only if all parts of the orchestra are playing the right notes. Like the meteoric rise in AI technology, the skills we must bring to our organization as the people professionals have taken a giant leap forward.

So, what are these new competencies that HR professionals need to bring to the table today? Let me quote my colleague, Kim Dunn for the simple definition first: “business first, people always.”

Business Acumen: Do you know the financial picture of your entire organization? Can you read a P&L or balance a full budget? Do you follow your industry trade publications or attend events to become more educated? Travel with your sales teams to talk with your customers and clients? It’s only when you have a full understanding of your business operations that you can effectively create a talent plan to support it.

Data Literacy: Does your current HR technology support the needs of your organization? Are you maximizing the tech that you have now? Reporting and metrics tied to your people operations are critical components of your strategic plans and initiatives.

Problem Solving and Critical Thinking: Ready to get uncomfortable? Figure out how to build relationships with people you don’t really like. Why? They probably think differently than you do. And that means they have a perspective that you don’t. As HR people leaders, we need to be able to clearly evaluate all sides of an issue or problem, and we can’t do that in a vacuum. By the way, this also includes building and flexing your negotiation skills.

Creating People-centric Cultures: This one feels closest to home for most HR professionals. But we need to expand our skills around helping our employees build resilience and understand that change and uncertainty are here to stay. They’re part of our daily lives now, and we need to learn to function in a world of VUCA — volatility, uncertainty, complexity, and ambiguity.

Organizational Transformation: This includes skills like refreshing your employer brand for talent development, updating your EVP (employee value proposition), and rebuilding your performance management system — big initiatives that put you at the center of the strategic table in your organization.

You may be feeling very comfortable with some of these competencies and less confident in others. That’s OK. Conduct an honest assessment of where you need to focus your attention and find resources that can help you build those skills.

EANE is here to help you with that initiative. Our HRYOUniversity programs are designed to help you be a well-rounded HR professional with all the talents you need to take your career to the next level. For a discussion about building your own learning pathway, contact me, and I’ll be happy to send you our self-assessment form and a few other resources to get you started.


Allison Ebner is president of the Employers Assoc. of the Northeast. This article first appeared on the EANE blog; eane.org

Building Trades Special Coverage

Energy for Change

Professor William Halloran teaches HVAC students at STCC.

Professor William Halloran teaches HVAC students at STCC.

Dr. Fahad Khan said the HVAC program at Springfield Technical Community College (STCC) has been around since the 1960s.

“Many in the field around here went to STCC at some point,” said Khan, a professor in the college’s Engineering department. “It’s a legacy program.”

It’s also a program that has seen plenty of change and evolution over the years — which has only accelerated in the past decade or so.

Take, for example, an associate degree added in 2019 that focuses on building automation and control systems. Or advances in fuel, such as the emergence of biodiesel.

“Things have evolved a lot since the 1970s; boilers have improved in efficiency,” Khan said. “We still have to use combustion; some people hope that, in the next 10 years, we won’t need to use combustion for heat, but that’s probably too optimistic.”

But changes are already emerging, said Scott Cernak, owner of Western Mass Heating, Cooling & Plumbing in Haydenville.

“The big change in the past few years is the initiative to convert people from fossil fuels to heat-pump technology, or anything electric-driven.”

“The big change in the past few years is the initiative to convert people from fossil fuels to heat-pump technology, or anything electric-driven,” Cernak said, citing a broad push among government leaders in Massachusetts to move toward decarbonization through climate-technology investments and programs like Mass Save.

“People who have the money and care about the environment enough to do it are going to heat pumps — whole-house conversions, partial conversions, a lot of it driven by Mass Save rebates and tax incentives as well. It’s been about a decade-long push, but especially strong over the last two to three years.”

A heat-pump conversion can cost to to three times more up front than replacing one fossil-fuel system with another, he noted, which is why those rebates and incentives are so critical. And the Mass Save program recently committed to a three-year plan in which rebates will not decrease.

“There’s been a lot of training for our sales and estimation staff, manufacturer trainings, climate-initiative trainings from Mass Save,” Cernak added.

In addition, “it’s been a different mindset for people heating their homes. With fossil fuels, it’s very easy to make heat, it’s very efficient, and people feel that warmth right away. Heat pumps are different. You’re harnessing electricity through the heat-pump system, and the heat isn’t as profound as the fossil-fuel heat. So there’s a level of adjustment for the homeowner. And you also need to make sure the house has good-enough infrastructure to support it.”

Scott Cernak

Scott Cernak says a focus on indoor air quality and a move away from carbonization (in the case of heat pumps) are two major ongoing trends in the HVAC world.

While heat pumps have replaced carbon fuels in many residential and commercial systems, Khan said, the efficiency remains a work in progress.

“They have improved in terms of coefficient of performance, with how much heat you can extract from the outside to the inside. That varies depending on the temperature outside,” he added, explaining that, at very low temperatures, heating costs can rise dramatically. “With heat pumps, you can end up paying a lot of money between December and February.”

One way to combat that, he added, is with water-to-air geothermal heat-pump systems that draw on the stable temperature of the earth’s ground or water sources to provide efficient heating and cooling.

The other big shift in the HVAC world in recent years has been an emphasis on indoor air quality, which was certainly accelerated during the COVID years, but had taken root even before then, Cernak said.

“Indoor air quality has become a focal point in our business as well. A lot of people with allergies and sensitivities have embraced air scrubbers or electronic air cleaners because of all the ancillary benefits. They do kill bacteria and viruses, such as coronavirus. It won’t prevent you from getting sick out in the wild, but it can help you in your own home.”

“These guys are not going to be outsourced anytime soon. You’re not going to see a robot come into the house; somebody has to do the work. An engineer can be outsourced, but who’s going to install and cut metal and lay down the ductwork and do the wiring? Somebody has to do it.”

While technologies continue to advance, Khan said, the state is also focusing on incentives for weatherizing houses, making them more efficient in terms of heat loss and gain. “We’ll still rely on combustion, at least for the next 10 years.”


Priming the Pipeline

With business split about 75% residential and 25% commercial and industrial, Western Mass Heating, Cooling & Plumbing handles all aspects of that name, from installation and retrofitting to new construction and service, Cernak said. “We’ve had a steady incline since our inception in 2020 — we’ve tripled our sales and doubled our workforce.”

That employee growth is impressive in itself, at a time when all building trades are struggling with retention as retirements outpace new talent in the pipeline.

“We’ve seen challenges, especially at first. But we have a strong training program,” Cernak said. “It’s been relatively easy to hire young talent coming up from the trades. They’re not ready to run their own jobs yet, so we’re training them extensively to bring them up into our workforce. The growth has to come from within.

“For a young kid coming out of high school or college, bringing them up to speed usually takes one to three years, depending on the position,” he explained, adding that internal training has been very effective in bolstering his workforce.

Fahad Khan

Fahad Khan says STCC is equipping students to take the first steps into an HVAC field that needs young talent.

Cernak said the question of whether to go to a four-year college or enter a training program in the trades is one each young person needs to make based on their interests and needs.

“But what I can offer is, we pay for training, and you start making money immediately. Even in an internship, you’re making a livable wage, and then there are frequent increases, good benefits, and it’s satisfying at the end of the day, knowing that, by providing heating or cooling or plumbing, you’re providing comfort, safety, and efficiency in someone’s home.”

Khan also recognizes the need to bring more young talent into the world of HVAC.

“There is a vacuum in this field, as a lot of folks are retiring, or have taken early retirement since COVID. We’re trying to fill the gap.”

While STCC also offers a two-year degree program in HVAC, he explained, the one-year certificate program starts with the basics, and “by the time you finish, you’ve gotten your feet wet. You’ll still require some in-field training; you’re not going to hit the road and start fixing stuff. You’ll want to shadow somebody. But we have a lot of success covering all the bases, so, by the end of the year, you can start training in an internship.”

It helps, he said, that the state offers funding for businesses to take on interns for six months.

“It helps the employer, so they don’t have to carry the burden of training somebody and paying them, and it also helps the students with training hours, and gives them a chance to see if they really want to do it or not.”

Many do, of course, and the pay is a factor; HVAC professionals can make $55,000 after a year, or up to $75,000 or more if they go into automation and control, Khan said.

“These guys are not going to be outsourced anytime soon. You’re not going to see a robot come into the house; somebody has to do the work. An engineer can be outsourced, but who’s going to install and cut metal and lay down the ductwork and do the wiring? Somebody has to do it.

“So it’s a good area to be in, with a lot of job security, and it’s not going anywhere soon,” he added. “We can diagnose things faster, make things more efficient, but in the end, somebody’s got to go into the house for the actual repair.”


Changing Environment

The statewide push toward climate and energy innovation aren’t slowing down, and will continue to impact the worlds of construction and HVAC.

In a speech last month to the New England Council, Gov. Maura Healey cited figures from a UMass Donahue Institute report suggesting that the $1.3 billion her administration wants to invest in climate technology over 10 years would result in $16.4 billion in new economic activity and as many as 7,000 new jobs.

The state spending figure includes $400 million in bond authorizations for capital projects, $300 million in tax incentives, and $300 million to support the Massachusetts Clean Energy Center’s operations, as well as an expansion in eligibility for existing offshore wind tax credits that could cost up to $350 million.

At the same time, the Center for EcoTechnology in Florence — which has been at the forefront of innovation when it comes to energy efficiency and climate impacts for almost a half-century — expects to dramatically expand its work, President and CEO Ashley Muspratt recently told BusinessWest.

“The work we do ultimately rolls up to reducing carbon emissions and shepherding in all of the benefits that come with that,” she said. “Carbon reduction can allow for a better lifestyle in terms of cost savings, health benefits, energy independence, and a more comfortable, better livelihood. We could be tackling this crisis while also paving the way to a better way of life.”

And where there’s a will, innovation will follow.

“The technology is advancing tremendously. It has been forever, but especially the past few years. And that trajectory will probably continue as manufacturers learn new technologies to heat and cool homes efficiently,” Cernak said. “The next change is a new refrigerant which is more environmentally friendly and has a wider range of capability. By 2025, every manufacturer will be affected by that.

“It’s ever-moving,” he added. “We have administrative staff people who are always keeping up with regulations and changes and Mass Save incentives and tax incentives and manufacturer trainings. There are a lot of moving parts, but it all makes it better for the consumer.”

Accounting and Tax Planning

Changes in Benefit Plans

By Melissa English

Melissa English

Melissa English

Audits of employee-benefit plans continue to evolve, and the pace of this evolution is unpredictable.

Areas such as technology and skills continue to grow, as well as industry standards. Now, throw COVID-19 into the mix, and we have to adjust not only to new ways of having these plans audited, but to additional standards that come into play with it.

The Auditing Standards Board has recently been issuing new standards. These standards go hand-in-hand with changes in technology and skills. These standards will improve the provisions of plans, affect the audits of plans, and address risk assessment and quality control. Auditors, as well as plan sponsors and administrators, should understand what these changes are and how they will affect retirement plans.

So what are some of the changes we can expect to see in the near future?

• Accounting Standards Updates (ASU) 2018-09 and 2018-13, which improve the standards on valuation of investments that use net-asset value as a practical expedient and improvements to fair-value disclosures. These both will be effective for years beginning after Dec. 15, 2019; and

• Statement on Auditing Standards (SAS) 134-141, with the biggest impact on limited-scope audits, which will now be called ERISA Section 103(a)(3)(c) audits. These standards will also affect the form and content of engagement letters, auditors’ opinions, and representation letters. The Statement on Auditing Standards was previously effective for years beginning after Dec. 15, 2020 but, due to COVID-19, has been moved, and is effective for years beginning after Dec. 15, 2021.

“Now, throw COVID-19 into the mix, and we have to adjust not only to new ways of having these plans audited, but to additional standards that come into play with it.”

In addition to these new standards, new acts recently came into law:

• The Bipartisan Budget Act of 2018, which was signed into law on Feb. 9, 2018. This act made changes in regulations for hardship distributions;

• The SECURE Act which became law on Dec. 20, 2019. This act will make it easier for small businesses to set up safe-harbor plans, allow part-time employees to participate in retirement plans, push back the age limit for required minimum distributions from 70 1/2 to 72, allow 401(k) plans to offer annuities, and change distribution rules for beneficiaries. This act also added new provisions for qualified automatic contribution arrangements (QACAs), birth and adoption distributions, and in-service distributions for defined benefit plans; and

• The CARES Act, which was signed into law on March 27, 2020 and acts as an aid and relief initiative from the impact of the COVID-19 pandemic. This act allows participants who are in retirement plans the option of taking distributions and/or loan withdrawals early without penalties during certain time periods for qualified individuals.

Lastly, there are constant discussions on cybersecurity. Cybercrime is one of the greatest threats to every company. Some questions to consider: does your company have a cybersecurity policy in place? Do you have insurance for cybersecurity? What is management’s role on cyber risk management? Do you offer trainings on how to handle cybercrime for both your IT department and all employees of the company? Cyberattacks are a normal part of daily business, but they can be significantly reduced if companies understand the risk, offer adequate resources and trainings, and maintain effective monitoring.

These changes affect most defined-contribution and defined-benefit plans. Plan sponsors should be evaluating these changes and the impact they have on retirement plans.

Some of these changes are optional, some are required, and some require amendments to plan documents. Plan sponsors should be discussing these changes as soon as possible with their third-party administrators and auditors. Remember, it’s the fiduciary’s responsibility to run the plan in the sole interest of its participants and beneficiaries, and to do this in accordance with all industry rules, regulations, and updated standards.

Melissa English is an audit manager at MP P.C. in its Springfield location. She specializes in employee benefit-plan work, such as audits; researching plan issues; compliance regulations, including voluntary plan corrections and self-corrections; and DOL and IRS audit examinations; (413) 739-1800.


All the Right Moves

Fran Arnold and his wife, Rosemary, have guided the family business through consistent growth and evolution over the past four decades.

Conklin Office recently completed the consolidation of its various operations into the former Ampad factory on Appleton Street in Holyoke. The new space tells a story about how this company has evolved over the years — and also about the modern office and what it should look like.

The back wall of the massive showroom at Conklin Office Furniture’s complex on Appleton Street in Holyoke is decorated in a somewhat unorthodox but quite meaningful way.

There, Fran Arnold, owner and president of this multi-faceted, family-run operation, has arranged some of the signs that have hung on the company’s facilities over the years, including one from when he bought the venture in 1981; it says ‘Conklin Office & School Supply Company.’

“I kept them — and I thought this would be good place for them,” said Arnold as he offered a tour of the sprawling facility. “They tell a story, really — they tell how far we’ve come over all these years.”

Indeed, they do.

The ‘Office & School Supplies’ part of the operation was scrapped a long time ago as Staples and businesses like it took over that part of the world. And the ‘office’ part of the equation has evolved tremendously into a company with a host of moving parts — from sales of new and mostly used furniture (including lines the company has developed itself) to recycling and reconditioning of furniture of all kinds, to an office-design component.

It’s all under one roof now — one very large roof — after the company moved its showroom and offices from a facility on Canal Street (sold to one of the many entities now looking to cultivate cannabis in Holyoke’s vast portfolio of old paper and textile mills) last fall. It was quite a move, as one can imagine, and the company is in many ways still catching its breath after that lengthy and logistically complex undertaking.

“We decided to do it like a Band-Aid; we just pulled it off quickly,” he said, noting that the move came in one large stage that ended in October rather than several, and the moving-in process is still ongoing in some respects.

But the new space seems to be well worth all the cost and trouble. And it gives the company an opportunity to not only display all that it sells, but also put the modern office — or the emerging interpretation of the modern office — on full display.

“I don’t think the ink on the contract was dry when Staples opened up. That put such pressure on all the old, local office-supply dealers that many of them went of business. I took a turn toward used office furniture.”

Indeed, the office/welcome area at Conklin employs many of the current trends, said Arnold, from the glass walls that surround his own office to the wide-open spaces, distinct lack of cubicle walls, modern lighting, and sit-stand desks being used by employees.

Meanwhile, the items on the floor, especially new benching models and smaller workstations, speak to how businesses are maximizing the square footage they’re willing to pay for.

The signs on the back wall of the new showroom help tell how far this business has come over the years.

“Everything is moving toward efficiency and budget,” he explained. “The individual workspace is getting smaller, but that’s necessary — office space in New York and these other major cities costs a fortune today, so companies are reducing the size of the footprint the person sits in, but the spaces are open and more conducive to collaboration.”

Conklin’s product lines, and its own offices, speak to these trends, said Arnold, adding that, while the company responds to these movements, it is also living up to the motto seen on many of those aforementioned signs: “What Goes Around Comes Around.”

That’s a nod (and a play on words) to the recycling and re-manufacturing aspects of the business — huge components of the operation — but also to its very ‘green’ mindset (right down to the 2,600 solar panels on the roof) and the way the company does business with a wide range of businesses in sectors ranging from education to financial services to manufacturing.

For this issue, BusinessWest visited the Conklin complex in Holyoke and talked with Arnold about office furniture, the modern office and how it continues to evolve, that motto and all that it reflects, and those signs along the wall in the showroom and how they really do tell a compelling story.

News Desks

While office design and office furniture are obviously serious businesses, Arnold said it’s quite OK — and actually quite necessary, in his mind — to have a little fun with it all.

Hence the names on many of the chairs he showed BusinessWest in one of the showrooms.

There’s the ‘Nellie,’ named after one of his granddaughters; the ‘Roxie,’ named after Conklin’s office manager; the ‘Brode,’ named after one of his grandsons; and the ‘Vito,’ named after … him; that’s what his grandkids call him. There’s also the ‘Junior Vito,’ a slightly smaller version of the original.

Conklin’s new facilities were designed to reflect the changes that have come to the modern office.

These chairs, all on the cutting edge of ergonomic trends, are part of the Gateway line of furniture the Conklin company has developed itself. The products — everything from chairs to benching to laminate furniture — are made in China, said Arnold, and they’re selling well as companies large and small look for value, quality, and chairs that are ergonomically friendly.

‘Fun’ isn’t a word that word that would be used to describe Conklin’s recent move — Arnold shook his head as he thought back on all that was involved — but it was necessary in some ways, and now that it’s over, the company is in a better place than it was — figuratively but also quite literally.

Arnold was able to take advantage of the soaring interest in Holyoke real estate, and the company, as noted, is now able to put everything together under one roof.

And as the tour clearly showed, it is a huge roof, and there is a lot under it.

The many components have come together over the past 39 and a half years, and there has been constant evolution, said Arnold, noting that, as that sign said, the Conklin company he bought in 1980 sold office supplies.

“I don’t think the ink on the contract was dry when Staples opened up,” he recalled. “That put such pressure on all the old, local office-supply dealers that many of them went of business. I took a turn toward used office furniture.”

And that has been the company’s main focus for most of its existence — buying and reselling used furniture, often refinishing, refurbishing, or ‘remanufacturing’ it (the term the company prefers to use) before it lands in the showroom or the warehouse. This mindset is captured succinctly in another one of those old signs hanging on the back wall: Beside the company name and logo, it reads ‘Don’t Monkey Around with the High Cost of New Office Furniture.’

Companies of all shapes and sizes have heeded that advice, and Conklin has taken full advantage, growing into one of the largest operations of its kind, with other offices in Red Bank, N.J., Philadelphia, and Chicago.

The company’s showrooms are filled with furniture bought across the country from a variety of sources. Very often, it arrives via liquidations — large companies either closing or moving from one space to another and selling the furniture it leaves behind.

“You can’t move more than 100 people over a weekend and move the furniture at the same time,” Arnold explained. “They need to move into furniture that was already set up.”

The Conklin company spent the ’80s and a good part of the ’90s building up the vast amounts of capital needed to properly run a business like this one and expanding operations. The company was located on Lyman Street in Springfield for a number of years, and also operated out of property on Warwick Street.

“You used to be able to put 100 8-by-8 cubicles on a floor; today, you can put 250 people on that floor. And what the employees are getting back by having so little space are big open areas.”

In 2005, Conklin moved its headquarters to the massive facility on Canal Street that was formerly home to American Thread and one of the first factory buildings built in Holyoke, and later moved the showroom (still on Lyman Street) there as well.

“We never thought we’d fill up Canal Street, but we did,” he Arnold went on, adding that the company eventually needed additional space and found it, ironically enough at the former Ampad facility on Appleton Street (Ampad made the legal pads and other office products the Conklin company once sold), which it purchased in 2008.

And in that 233,000-square-foot facility, the company greatly expanded its reconditioning and remanufacturing operations, adding a powder-coating operation, reupholstering, and more. Eventually, it was decided that operations needed to be moved there as well.

“I thought that the building on Canal Street was not really conducive to what we do,” he said. “We need higher ceilings and big areas to move in, and I started thinking about selling Canal Steet.”

Those thoughts coincided with the start of the cannabis era in Massachusetts and broad interest in Holyoke’s old mills for a number of possible reuses — cannabis in particular, but also condominiums and apartments.

“There were two or three serious possibilities in play working with condominiums or apartments,” he recalled. “But, lo and behold, cannabis was legalized, and they came after the building.”

‘They’ is True Leaf, a Florida-based medical-marijuana dispensary, he went on, adding that things moved quickly after that, with Conklin having to move out 150,000 square feet of space cram-packed with furniture.

Space Exploration

And eventually move it into space Arnold described as “totally raw” and, like much of the used furniture that comes his way, in need of some refurbishing. His staff now occupies the former administration area of the Ampad operation, space that looked like offices used to look, with enclosed private offices against the windows and tall cubicle walls outside — “people really couldn’t see much further than eight or 10 feet away from where they were.”

That has all been replaced with what most are saying the modern office should look like, said Arnold, who, as he talked about trends in modern office furniture and design, abruptly stopped talking and started walking toward a showroom area at the front of the store where the ‘Roxie’ and ‘Nellie’ are on display.

Talking again as he walked, he said offices everywhere, but especially those in large cities where real-estate prices are soaring, are getting smaller, and every square foot is being put to efficient, meaningful use.

Many people are doing some work at home, he went on, and companies are encouraging more people to join those ranks. For those who do come to the office, their employers are seemingly in a mood to trade more of those aforementioned wide-open spaces for smaller actual workspaces.

“You used to be able to put 100 8-by-8 cubicles on a floor; today, you can put 250 people on that floor,” he said. “And what the employees are getting back by having so little space are big open areas to continue their productivity — areas for collaboration, coffee bars, and just communal areas where they can be themselves. And windows are being left open, so they can see what’s going on outside.”

To get this point across, he referenced a product the company is selling a lot of these days — benching. These are small workstations — a desk with a drawer or two underneath — arranged in rows, or benches, with fabric screens separating the workers on either side of these benches.

While some of these workspaces measure 30” by 72”, said Arnold, many companies have moved to 60” and others to 54” or even 48”. The goal, as he said, is to put more people into a smaller amount of space, knowing they only spend some of their time at these spaces, with the rest in those collaborative areas mentioned earlier.

The Conklin website now lists a number of benching options, many part of what it calls its Stretch line, as well as what would be considered today’s ‘private’ office — a desk (often one that can be raised or lowered), credenza, and pedestal, all of them small in comparison to what was popular years ago.

And while staying at the forefront of these trends, with its Gateway line and items on the showroom floor, Conklin is working hard to respect that motto and be ‘green’ in every way it can — from the solar panels, which produce enough power for roughly 125 homes, to every aspect of the recycling operations.

“When we take a [cubicle] panel apart, all the fabric gets sent down south; it gets ground up and recycled,” Arnold said. “The shrink wrap gets baled and sent to a local company that makes oil from it. All the cardboard is baled … very, very little goes to the landfill.

“We’ve been ‘green’ from the very beginning,” he went on. “It’s a big part of who we are.”

Chair Man

As he walked around the office area at the new headquarters building, Arnold noted that all it might be missing, that’s might, is a large aquarium — a touch he might look to add in the near future.

Other than that, it represents all that the modern office is — or should be — in terms of space, light, glass, work areas, amenities for employees, and space-saving strategies for employers.

It also represents change and evolution for this company, which has come a long way since it sold office and school supplies on Lyman Street.

Like Arnold said, those signs on the showroom wall tell a story — one of ongoing growth, evolution, being ‘green,’ being proactive, and introducing products like the ‘Vito’ and the ‘Junior Vito.’

A story with a number of intriguing chapters still to be written.

George O’Brien can be reached at [email protected]