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With concerns about the pandemic now in the past, how is the 2023 summer tourism season shaping up?

According to a report by the Ontario Chamber of Commerce and the Tourism Industry Association of Ontario released in December of 2022, it was stated that the province’s tourism industry was not fully expected to recover from the pandemic until 2025.

We reached out to Explore Waterloo Region CEO Michele Saran to get a sense of what the summer tourism season may be bring locally:

Q. How much does tourism contribute to our local economy?

A. Tourism is big business.  Over 5 million visitors come to our region annually, injecting more than 557M into the economy.  Tourism is also a catalyst for trade.  People may come to our area for a staycation, sporting event or a business meeting and may like what they see and choose to move here, invest here, or send their kids to school at one of our fabulous academic institutions.  Places that are great for visitors are also great for residents.  Everyone wants to live in a place with wonderful restaurants, retail, and attractions as well as nature.

Q. What is your prediction for the summer tourism season in Waterloo Region? Better than last year?

A. I predict Waterloo Region will have a strong summer season in 2023 surpassing 2022.  It seems that any lingering concerns about COVID are now mostly gone, and Explore Waterloo Region is launching our promotional campaign as early as possible this year. Many people are looking for getaway options closer to home considering inflation etc.  Given a full 96% of visitors to the Region are from other parts of Ontario, we should be in a good position.

Q. What is the driving factor for people to get out and explore this summer?

A. For 2023, there is still incredible pent-up demand for travel after the pandemic but the driving factor about destination selection is affordability.  People want to get out and have fun, authentic experiences but cost may force many to explore options closer to home.  Luckily, we have those kinds of experiences in abundance in Waterloo Region!

Q. Are ‘staycations’ still as popular or are people ready to explore even further this year?

A. Search analytics show people are definitely ready to travel internationally but the high cost of air travel and media reports of airport congestion and other challenges are mitigating factors when it comes to actually booking.  “Staycations” are always popular with our target market in Ontario.  Easy getaways that are close to home and affordable.

Q. Do labour shortages continue to persist in the hospitality and tourism industry and if so, will it have an impact this summer?

A. There are 80% more job openings in our sector now than in 2019.  In fact, of the almost 2000 open positions in Waterloo Region in Q1 of 2023, almost half were tourism related.  That said, our industry is nothing if not adaptable and resilient.  Businesses may have to modify their opening hour and job duties may shift to encompass a broader array of tasks, but everyone is motivated to take advantage of the pandemic winding down.

Q. What are people looking for this year when it comes to spending money on tourism, considering the higher cost of living?

A. People are leaning into the idea of the “road trip” with friends or family to save money which is exactly how we are marketing to the GTA.  We are positioning Waterloo Region as the ultimate road trip destination with something for everyone.  Cities on the edge on the nature; authentic cultural experiences and incredible farm-to-fork, culinary options.

Q. How has Explore Waterloo Region been preparing for the 2023 summer season?

A. All throughout 2022 Explore Waterloo Region has been actively working on product development.  We have been looking to leverage our tourism icons and create packages that will make people want to stay longer in our area and spend more. 

This year we will offer some incredible experiences on the Grand River that feature overnight luxury glamping and indigenous-themed feasts; we have another package that celebrates our amazing “farm to fork” culinary offerings where one can have an al fresco dining experience in a beautiful orchard; there will also be a curated Oktoberfest experience that allows one to really see the best of the best of that festival and it includes a luxury hotel stay.  All these experiences will be marketed on www.explorewaterloo.ca and via our aforementioned “road trip” campaign on our social channels.

In terms of our efforts in Business Events and Sport hosting, we always encourage delegates to add on a leisure visit pre or post to make the most of their time in Waterloo Region.

Q.  What are a few of the ‘must see’ attractions in our Region this summer?

A. There are so many options for people this summer!  Of course, all our annual festivals are back – Uptown Waterloo Jazz Festival, Bluesfest, the Waterloo Busker Carnival and Downtown Kitchener and Cambridge both have Ribfests -to name just a few!

For those that want to get outside and be active, there are some wonderful opportunities to Canoe the Grand with Grand River Experiences or explore on horseback.   We also have over 500 km of trails in the Region.  One can hike or cycle them.  Explore Waterloo Region has partnered with Zeitspace on a new cycling app that is hyper-local and will let you plan your route by level of difficulty.  It also layers on all the bike-friendly, certified businesses along the way!

Canada Day offers up the Stihl Timbersports Rookie Championships at Bingemans and Cambridge is celebrating its 50th anniversary at the “Cambridge Celebrates Canada Day” event.

For those seeking a bit of culture, The Neebing Art Fair will be returning to Bingemans showcasing incredible indigenous art.  Of course, St. Jacobs always has something going on and it’s a great launching point to get out and do a farm gate tour through the townships to buy the best in local produce and get a sense of our wonderful Mennonite community.

People can always check out our events calendar at www.explorewaterloo.ca for more detail and options.

The Ontario government will launch a first-of-its-kind program June 1 to make free naloxone kits (and free training) available at workplaces where there is a risk of staff witnessing or experiencing an opioid overdose.

In 2022, there were 2,521 confirmed probable opioid deaths in Ontario, which represents a 12% drop in cases compared to 2021. Despite this, the number of deaths last year remains substantially higher compared to what was observed prior to the pandemic (2017-2019).

Naloxone is a life-saving medication that can temporarily reverse an opioid overdose, restore breathing within two to five minutes, and allow time for medical help to arrive.

“Ontario, like the rest of Canada, is in the middle of an opioid epidemic made worse by a toxic supply of recreational street drugs,” said Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development, when the program was first announced last year.

According to a report released last summer by researchers from the Ontario Drug Police Research Network (ODPRN) at St. Michael’s Hospital, one in 13 opioid-related deaths in the province between 2018 and 2020 occurred in the construction sector. The reasons behind this, say researchers, are a complicated mix of pain management, job insecurity and having nowhere else to turn.

Bars and nightclubs have also seen increased opioid usage and accidental overdoses, often because of recreational drugs laced with deadly opioids such as fentanyl and carfentanil.

For up to two years, Ontario will provide free nasal spray naloxone kits to businesses at risk of opioid overdoses through the Workplace Naloxone Program and free training needed to equip staff with the tools to respond to an opioid overdose.

Businesses can determine if they are eligible for the program and find additional information on accessing naloxone kits and training at Ontario.ca/workplacenaloxone. Once the requirement is in effect, Ministry of Labour, Immigration, Training and Skills Development’s inspectors will take an education-first approach to enforcement.

We reached out to Tushar Anandasagar and Hina Ghaus at Gowling WLG to provide some legal insight as to what this new legislation will mean for some businesses:

Q. What prompted the Province to introduce this OHSA legislation?

A. The province is recognizing that the ongoing opioid crisis is affecting workplaces across the province – something needed to be done.

Opioid overdoses may be preventable or possible to delay (to an extent) – the province has adopted the role of educating employers on steps they can take to recognize and reduce the severity of overdoses.

These measures also have the effect of reducing the load on the healthcare system – the province is pushing for early triage and prevention rather than escalation.

We’re already doing many of the same things when it comes to allergies – for instance, many workers with severe allergies are already carrying around EpiPens.

Many social changes start at the workplace – there is a good chance that we will start to see this protocol (or something similar) extending beyond the workplace.

The opioid crisis is ubiquitous - we have already seen other provinces discussing the adoption of similar requirements for workplaces.

Q.  Is there a possibility the free training and access to the kits could be extended beyond two years and could funding be provided by another source?

A.  Definitely. Our sense is that this is just the start.  There are numerous benefits associated with early prevention rather than treating severe overdose cases via the healthcare system. A stitch in time saves nine.

Q. Are workers legally required to make their employers aware they could overdose?

A. Not by operation of statute – the onus is on the employer to spot a potential health and safety issue and create systems to make the workplace as safe as possible.  Of course, nothing prevents a worker from voluntarily disclosing a substance use disorder to their employer. Aside from statute, employers may be able to establish early warning systems via fit for duty policies – such a policy would require the employee to report to work while not under the influence of an impairing substance. Employers are then responsible for enforcing the policy.

Q. What kind of privacy issues come into play with this legislation?

A.  An employee’s disclosure of a substance use disorder is considered strictly confidential information – the employer should be prepared to treat this information as it would any other medical information received from an employee

Appropriate protections should be put in place to safeguard the information – shared with only those managers or supervisors who “need to know”.

These issues, and sample scenarios, are discussed in the province’s updated guidance on naloxone in the workplace:  https://www.ontario.ca/page/naloxone-workplace

Q. What are potential concerns surrounding this legislation, if any, that managers of workplaces deemed as at-risk should be aware of?

A. There are risks associated with non-compliance with the OHSA – for instance, primary liability may result if the employer doesn’t run through a naloxone kit risk assessment to determine if there is a risk of a worker overdosing at work.  Every employer is required to do this.

There are also risks associated with running a deficient risk assessment or ignoring risks that come to the employer’s attention – for instance, an employee self-discloses that they have a substance use issue, and the employer does nothing.

Another consideration is what could possibly happen if a worker administers naloxone and the recipient has, for instance, an allergic reaction – as per the province’s current guidance, the Ontario Good Samaritan Act should kick in to relieve workers of liability when they are administering naloxone in good faith.

Q.  What should be the first steps an at-risk workplace should take when it comes to introducing this program?

A. Every workplace needs to run through a naloxone risk assessment – employers may wish to engage a third party to demonstrate that they have done this, as needed.

If naloxone risks are detected during the risk assessment, the employer should plan for implementation by referencing the OHSA guidance published by the province – this will necessarily mean engaging with staff, the OH&S rep, the JHSC, etc.

There are specific training requirements which need to be in place, which have been referenced within the province’s guidance. As needed, the employer should also prepare to procure naloxone kits – there may be free naloxone kits available depending on the sector the employer operates within.

Q. Can workplaces not deemed ‘at-risk’ access the program?

A.  All workplaces can access the Province’s guidelines and training resources. As for the free naloxone kits and on-site training, we know the Province is initially focusing on high-risk workplaces. In future we may see an expansion of the training programs and free kits to non-high-risk environments.

Q. Is it difficult to make changes to the OHSA?

A. Yes and no – some changes are met with objection from employers (and employer associations), trade unions, and other stakeholders (e.g., fine increases, doubling of limitation periods, etc.). It really depends on the type of change that is being made.

Q.  How will compliance of the legislation be monitored?

A. Effective June 1, 2023, we can expect standard MOL audits for employers – they will ask about naloxone kits in the same way that they currently ask about harassment policies, etc. There may also be acute responses triggered by workplace accidents – for instance, if there is a serious workplace accident and there is some indication that substance use disorder may have contributed to the situation, the employer’s risk assessment may be called into question, and they may be found not to have complied with these new OHSA requirements if they failed to identify reasonably apparent risks.

Once again, employers will need to be mindful of proving that they have undergone a risk assessment (document, document, document), particularly if they have concluded that there is no risk in the working environment.

The minimum wage in Ontario will increase on Oct. 1 to $16.55 an hour and could impact many businesses and their customers.

“I think we’ll be fine because I’m confident with our business model and location, but I think it’s going to affect some businesses dramatically because there is no way there can’t be an increase in prices on goods and services,” says Matt Rolleman, a Chamber Member and co-owner of Thirteen at the corner of Water and Main streets in Galt, noting like many restaurants the majority of his staff currently is paid above minimum wage.

While the same holds true for many tourism and hospitality businesses, the Tourism Industry of Association of Ontario (TIAO) says it will continue to advocate for tax reforms and other measures to help offset rising commercial costs and supply chain disruptions while promoting business growth.

“We’re constantly hearing from businesses about the rising cost of doing business, from paying down pandemic debt to supply chain disruptions that affect the availability of key goods and products, unaffordable commercial insurance premiums, and reduced liability coverage that may impact the scope of what operators can offer in the visitor experience,” says Dr. Jessica Ng, Director, Policy & Government Affairs for TIAO. “The labour crisis has only added to these costs, as businesses look for ways to recruit and retain the staff they need.”

She says reviewing compensation structures is one strategy to make tourism and hospitality jobs more attractive and sustainable.

“You have to try and pay people for their value, or perceived value,” says Matt, adding it is likely increases will be implemented for all his staff as minimum wage hikes close the salary gap between employees. “We’re doing our best to keep our prices where they are right now, but costs have gone through the roof and trying to manage all these things for all businesses has just become more tougher.”

Matt says the timing of the wage hike this coming fall so close to the December 2023 CEBA (Canadian Emergency Business Account) loan repayment deadline may also be an issue for many small businesses.

“For businesses that rely on part-time minimum wage workers there’s no way they cannot raise their prices,” he says, adding while boosting minimum wage is necessary to help ensure people can pay their bills, the way increases are introduced leaves a lot to be desired.

“It’s become too politicized,” says Matt, noting if it was indexed with a cost of living increase it may be easier to plan for it. “Businesses would expect it every year and maybe we wouldn’t have to have these huge increases that sensationalize the whole issue.”

We reached out to Chamber Member Jason Kingston, partner at the accounting firm Grant Thornton LLP, to get his perspective on this latest minimum wage hike:

Q.  What do you see as one of the biggest impacts raising Ontario’s minimum wage will have on businesses?

A.  Minimum wage increases are always a hot-button topic, with researchers and think tanks releasing contradictory articles and papers ranging from an increase causing either complete economic collapse or being the gateway to an economic utopia. That being said, the largest impact on businesses will be that those who rely on minimum wage earners as their employment pool will need to plan on how they are going to absorb the additional cost.

Q.  Are most businesses prepared for this minimum wage boost?

A.  I would say that many small businesses are not prepared. Could they have been? Undoubtedly. If a business is dependent on the portion of the labour pool who earn the minimum wage, then that business should always be prepared for increases. I think if you look back over the last decade, it’s easy to see more momentum towards increasing minimum wages and aiming towards a living wage, which is still projected as being much higher than the newly increased minimum wage point.

Q.  Could the Province have implemented a minimum wage increase in another way?

A.  An increase in the minimum wage does make sense, though the extent of the increase can be argued. The average wage increase, across the Ontario labour market in 2022 has been pegged by many as approximately 4%.

A minimum wage increase is an easy solution for the government. It allows them to say that they’re doing their part to combat poverty and wealth inequality. But ultimately it puts the burden on employers, not the government itself, and it still falls far short. For example, under the increased minimum wage the monthly gross income of a full-time employee will be about $2,800. The average cost of a one-bedroom apartment in our region is $1,950 per month. It isn’t hard to see the challenges here.

I think there are larger issues surrounding minimum wage and its purpose and policy reasons which the government should examine.

Common alternatives to minimum wages which are commonly discussed are introducing more collective bargaining options for employee groups, introducing a universal basic income or other government supports for low-income individuals, etc., but these also introduce challenges and differing opinions.

A tidal wave of business ownership change is coming, and many business owners should be preparing now, urges Carson O’Neill, Managing Principal of Rincroft Inc., a Waterloo Region-based company which facilitates the sale of small and medium-sized businesses.

His firm has completed the sale of more than 50 family-owned businesses, many of them in Waterloo Region.

Carson most recently penned a book for business owners entitled The Road to Enterprise Value.

He confirms that most owners of Canada’s 1.2 million SMEs are now in their 50s and 60s and looking to sell their businesses over the next five years to fund their retirement.

“The owners are capable in running the operation. They’re down to earth, salt of the earth people and smart,” says Carson. “But most have never been down this path before. For many of them, it’s unchartered water with a lot of money on the table.”

Carson adds that the process is complicated and can last six to nine months.

“There are many issues above and beyond agreement on purchase price. Who’s going to pick up the employees? What about the future of the manufacturing facility? What about the leases? What about the intellectual property? It can be complex and multi-dimensional.”

As entrepreneurs, he says business owners often are often inclined do everything themselves which runs the risk of them receiving much less than what their business is worth, in turn resulting in a less comfortable ‘nest egg’ for retirement.

“The buyers are typically aggressive and want to get the price down,” says Carson. “They’re professional buyers, many of whom who’ve bought many businesses before, so they want to work with a business owner who unfamiliar with the process.”

To better understand the process of selling a business and some of the factors that drive business owners to sell, we discussed several questions:

Q. What would you recommend be the first steps a business owner should take when it comes to selling?

Carson: Delay if you possibly can and get the business in good shape. The business owner should step back, assess the state of the operation, and take steps to strengthen it any way possible. They should not be in a hurry to go to market; our company sometimes takes months working with owners to build the business up before the divestiture process even begins. The best defense is a good offense. Don’t go into this defensively, thinking ‘oh, we have to retire now’. You need to make sure the business is fundamentally strong to secure top dollar.

Q. What are some of the misconceptions a business owner may have when it comes to the process of selling?

Carson: Having never been through the process before, many owners think selling a business is like selling a house. The process is far more complicated and takes much longer. The valuation is far more complex, the information package is far more extensive and there are multiple conditions which need to be met before the funds are wired. Is there inherent value in the business? Does the business have unique capabilities so it can be sold? Where is the ‘secret sauce’?

Q. Other than impending retirement, what are some other reasons a business owner may decide to sell?

Carson: There are usually three other reasons: health problems with one of the owners; shareholders issues with at least one shareholder in need of cash; or the business has plateaued and is going south and that is never a good time to sell a business. Other reasons can include major players are entering the market with vast resources to spend to build market share and the owners are justifiably concerned they will have difficulty competing. They may not yet have reached retirement age, but they are concerned that the value of the business may well go down in the years ahead, so they are better off to sell now.

There is also the possibility of a pre-emptive offer. It is not uncommon for a buyer to approach an owner to buy even if the business is not being sold. This happens with very strong businesses. Sometimes millions are put forth, well over the assessed value. Owners may not have ‘planned’ to sell but many will seriously consider if the price is right.

Finally, the next generation has made it clear they have no interest in the family business. The owners may be in their late-40s with the second generation in their early-20s but that serves as a valuable wake-up call that it is inevitable the business will change ownership. With the emergence of the digital economy, at an early age, many in the next generation have absolutely no interest in ever taking ownership of the established family business.

Q. How has the pandemic affected the sale of businesses?

Carson: Not really. In the early months of the virus there was a period of adjustment, but people realized there was very little need to meet to complete the transaction. Our business did not miss a beat; actually, it got stronger. The change in ownership in Canada will continue relatively unaffected by the ebb and flow of the economy.

The reality is many owners have too much money locked in their business – they usually need it for a comfortable retirement. That has remained the primary reason why they sell, whether the pandemic is here or not. Canadian business owners are getting older. You can’t stop ‘Father Time’.

Q. How has the process of selling a business changed?

Carson: It is now more complicated due, in part because due diligence has become much more rigorous. We live in an age of increasing importance of transparency and full disclosure. No stone will be left unturned. Buyers will look at everything.

Did someone slip on the ice outside your business? What insecticides do you use on the grass and plants? Do you have an alleged harassment situation happening? If one is pending, it must be dealt with because the buyer doesn’t want any liabilities and will walk away. Due diligence and purchase agreements alone can now take three months.

Throughout much of last year, economics firms predicted Canada and other western nations would fall into recession by the end of 2022 or early 2023.

However, even though the latest data shows these economies have been somewhat more resilient than expected, finance experts are expecting a recession will begin a little later than originally thought.

We reached out to Chamber Members Jason Kingston and Kris Yungblut, partners at the accounting firm Grant Thornton LLP, to get their input on how to run or buy a business during a recession:

Q. Is buying a business during a recession something worth pursuing and what are some of the factors that need to be considered?

A. There are always good businesses out there, and some are even, ‘recession proof’. The key is to understand the fundamentals of the business, in relation to what is driving the recession. Looking to acquire a business during a recession can in some cases present attractive pricing opportunities.

There are a number of factors to consider:

• Proper purchase price structuring and availability/cost of financing the acquisition.
• Generally, value multiples will come down during a recession. It is important to consider if the multiple adequately reflects the company’s ability to generate sustainable positive cashflow.
• The macro issues driving the recession, and how they impact the business need to be reviewed and understood.
• The fundamentals of the business, and how the recession pressures impact them.
• The impacts of the recessionary environment on the company’s suppliers/customers. Will customers keep buying or delay their orders? Will customers be able to pay on time? Will suppliers have products available?
• The company’s ability to generate adequate cash flow to make payments, as needed (i.e. protect the company) OR to take advantages of opportunities that come up because of the recession (i.e. grow the company).
• Are there opportunities to do things more efficiently and/or take costs out of the business?

Q. What kind of strategies are needed when it comes to operating a business during a recession?

A. There are several strategies business owners and senior management can look to during uncertain economic times. Some of these would be different depending on where in the business lifecycle (start-up, mature, etc) the particular business is, but many are common to all businesses. Examples of these would include:

• Improve cashflow of the business. This can be through reducing cash going out, such as not ordering large quantities of unnecessary supplies to have on hand or cancelling unnecessary subscriptions or getting additional cash in the door through the sale of redundant assets. The important thing to remember is that expenses should only be reduced if doing so does not harm the business and its ability to operate.
• Review larger strategy initiatives and the actions needed to meet the strategies. Ensure that only those activities which will have a clear impact on the achievement of key strategies are invested in, taking a less is more approach. For example, if pursuing multiple new product offerings, take the time to realistically project the potential sales volume of each product and its contribution to the gross margin of the business and focus on those which generate the best return on investment.
• Prepare budgets and financial forecasts. Cash forecasting can allow a business to better understand how and when cash is received, as well as the impact of investing in new equipment and machinery. Strong budgets and forecasts give the business owner the ability to engage in scenario planning and adjust quickly as cash needs and opportunities change.

Q. Are there any steps a business owner can take in advance of a recession?

A. Before the onset of a recession there are several things a business owner can do. Some of these would be good business strategy regardless of economic conditions, while others are more situational.

One planning exercise that can be done is creating a cost adjustment checklist. This would be an analysis of costs which can be reduced should times get tough. During good times there is no imperative to act on the checklist, however, when the tides are turning having already performed the exercise the owner will be better prepared to act and follow through with the cost adjustments they need to implement.

Other items which should be considered is looking at debt load being carried and renegotiating, if possible, to reduce strain on cashflow. Proactively reaching out to key customers and ensuring a strong relationship exists is a must. If you are a key supplier to another business this can give them peace of mind that you yourself are taking steps to prepare for a recession and are less likely to disappear than others who are not planning appropriately.

Q. Can a recession ever be a positive thing for a business?

A. While I don’t think I would ever make a blanket statement that a recession can be a positive thing for a business, there are clearly some opportunities and positives that can come out of a recession.

To survive a recession, most businesses will need to look at cost cutting measures as well as how to improve operational efficiency.

These actions can have longer term positive impact on the business, as the efficiency gains will continue as the economy improves, and while previously curtailed spending may be reintroduced, there will almost inevitably be spending that was eliminated that will end up not being missed and therefore won’t be reintroduced.

There can also be other opportunities to take advantage of during a recession. An example would be discretionary spending on customer acquisition, which is a commonly cut expense. Companies who have or develop a low-cost marketing plan to get potential customers attention may be able to grab market share while their competitors cut their advertising dollars.

Finally, once things improve, there may be less competition in a business’s market. If competitors were less prepared to survive a recession, they simply may not, and that leaves available market share for those who did survive.

Q. Are recessions just a natural part of the business cycle?

A. Recessions can be caused by several factors which impact the economy, such as a financial crisis like what was seen in and around 2008 and 2009 or the early 1990’s recession, the primary factors for which are believed to have been restrictive monetary policy and loss of consumer and business confidence.

Recessions do appear to follow periods of strong growth and are often viewed as inevitable, though there are some alternative theories into the causes of recessions which would argue against the inevitability of them.

However, history seems to be on the side of recessions occurring. As such, I think it only prudent for business owners to regard recessions as a regular part of the business lifecycle, to be aware of the indicators of recession, to have plans in place to help ensure their business survival during the recession and to set themselves up to thrive as the recession lifts.

Business is built on relationships and networking is a key tool to make that happen.

But walking into a room filled with strangers can be very a daunting task, says Cambridge Chamber of Commerce President & CEO Greg Durocher.

“The whole trick to networking is understanding what you’re doing,” he says. “You’re not there to make a sale. You’re there to start building relationships because people prefer to do business with others they know, like and trust.”

The Chamber Social, held monthly at a various Members’ businesses, is a great place to build those relationships providing the commitment is there to attend often.

“It’s very much like learning to swim. You don’t learn just by jumping in the pool; you have to continually jump in, and it can be scary,” says Greg. “But the more you do it the more comfortable you become.”

He says by approaching a networking event as way to discover how you can help others can lead to success.

“It might just be offering a recommendation to help them solve a problem and that in itself is doing business. It’s not about being the salesperson, because you’re not selling a product or service, it’s about selling yourself and building a relationship to the point where people will start wanting to do business with you.”

To assist, Greg recommends attending networking events using a tag team approach.

“Tag teams are really important, especially for people who feel a little bit nervous if they’re attending an event where they don’t know many people.”

He says having a comfortable backup will not only give them someone to chat with, but also makes it easier to circulate at an event.

As well, Greg says having a good supply of business cards on hand – in pockets and the car - is vital.

“Having a business card is the authorization you’re giving people to collect the data that’s important to make contact with you,” he says, noting digital cards which utilize a QR code are also good to have. “The only problem with a digital business card is that people have to remember who it was they were speaking with and if they forget your name, it may take time to search it out.”

But when it comes to networking, Greg says ‘repeat, repeat and repeat’ is a must in terms of attendance to build a strong foundation of trust.

“You want to be that one person in the room that virtually everybody knows,” he says. “When you become the person they know, like and trust, that’s going to be your new salesforce because they are the ones who will be referring you and recommending you to others which makes good business sense.”

Put your networking skills to the test at our next Chamber Social which is at Staples, The Business Depot on Monday, Feb. 13 from 5-6:30 p.m

Networking tips:

• Introduce yourself by name and give them your card.
• Make your card memorable, but easy to read.
• Tag-teammates introduce you to people you don’t know but they do, and they get their network working for you too.
• Tag-teammates help one another and keep an eye out. If one is trapped in a conversation or left high and dry, the other can come to their aid.
• Tag-teammates can sing your praises much better than you can. It’s hard for you to launch into a story about yourself.
• Use your teammates name in conversation, this ensures everyone remembers their name.
• If your teammate doesn’t introduce someone to you, use ‘step forward rescue’ and stick out your hand and introduce yourself.
• When you enter a room of strangers, stop, and take your time, look around for the best opportunities, friendly groups, wallflowers and or acquaintances.
• Front of the room is the place to meet people or start a group.
• Approach networking by thinking about what you can do for someone else.
• Establish eye contact, extend a dry, warm hand, exchange cards, engage in conversation (weather, game)
• Great networkers work on building relationships and are known for being there.
• Keep track of events, and the number of contacts you make.  Set goals of events and contacts.
• Just being there isn’t enough, remember, you to need to exchange info. Be entertaining and informative.
• To be a good networker, you need be someone who’s good at following up.
• You need to learn something about people before you can discover what you can do for them. Ask questions, check their website, and talk with others.

Disruption has become a familiar word in many workplaces as organizations search for ways to conduct business amidst a never-ending barrage of economic and social upheaval.

It occurs when are there are major changes to a business’ structure, competition, facilities, the economy, and even world events.

But how a business manages this disruption will depend on its leadership.

“I would say as an organization and a leader you need to embrace it,” says leadership coach and consultant Ricardo Camara, who operates Cambridge-based On This Rock Business Consulting Ltd.

As a leadership development professional who deals with ways to minimize management conflicts within organizations, he is very aware of the many disruptions that can befall a business, noting the pandemic has been the biggest disruption most business leaders have experienced.

“It was like a rude awakening for all of us,” he says, noting the trends it has spawned such a ‘quiet quitting’ or ‘The Great Resignation’ has led to the attraction and retention of employees becoming key priorities for many businesses. “But we have always had both internal and external factors that have impacted in how we do business.”

He says complaining about disruptions can create a negative work culture, but that by creating an environment of collaboration and innovation with employees helps build a higher level of trust and engagement that will benefit an organization as it deals with these changes.

“COVID-19 is a good example where organizations brought their teams together and they collaborated and everyone was engaged in that fight,” he says, adding staff is the No. 1 resource of any organization. “So why not give them a voice and make them feel part of the process? By doing that, you’re encouraging them to engage and buy into changes. Otherwise, if you force those changes upon your employees, they’re going to fight them.”

He says leaders who fear disruption can often paralyze an organization.

“It can create a sense of despair and uncertainty and adds to that mindset.”

Also, Ricardo says for businesses to successfully manage disruption it helps to have a pre-existing environment where collaboration and trust were already in place, especially when faced with a situation like a pandemic.

“I think disruption can also be short-term, long-term or even permanent,” he says. “We’ve seen that with COVID as businesses had to pivot and quickly develop new business models.”

But when it comes to preparing for disruption, he recommends leaders focus on developing their emotional and relationship intelligence, allowing them to motivate their teams in a compassionate way and connect with them on levels that will benefit the business.

“Leaders that have developed a higher level of these skills are more likely, statistically speaking, to be better at leading, guiding and coaching, and dealing with these types of situations more effectively,” says Ricardo. “Whereas individuals who do not have these struggle and often pass on that fear and uncertainty to their teams, and it can quickly become a wildfire that spreads through the organization.”

A few tips for managing disruption:

• Think of disruption as an opportunity. Looking at disruption as an opportunity to create something better enables an organization as a team to move forward optimistically, and a better future.
• Devise a plan to manage disruption. Creating a plan reduces confusion and allows your organization to a create strategy and allocate resources and responsibilities.
• Communicate clearly and often. Consider holding town hall meetings, or one-on-one discussions because it’s vital to get in front of your team and working through the ramifications of disruption will be critical to your ability to engage and retain your key staff.

As businesses continue to look forward as they develop staffing plans to tackle 2023, they may also wish to take a quick look back at new policies that have now been added to the Employment Standards Act, 2000.

These include the right to disconnect legislation first unveiled in Ontario Bill 27 in December of 2021, and the electronic monitoring policy outlined in Bill 88, Working for Workers Act, 2022, and added to the ESA in April of last year.

The new policies – the subject of much discussion since they were first introduced - directly affect employers that employ 25 or more employees as of January 1 of any year and must be in place before March 1 of that year.

We reached out to Meagan Swan, an employment law expert at Pavey Law LLP in Cambridge, to offer insight on what these new policies mean for employers:

Q. What should employers be thinking about when it comes to timelines surrounding these ESA changes?

Meagan:  Employers were supposed to have these new policies in place last year, but as we know for some employers it takes a new year to really start thinking about what needs to be done in 2023. If an employer now has 25 employees, inclusive of all the employer’s business locations, as of Jan. 1, these policies are to be in place by March 1 of each year and provided to their employees within 30 days.

The government has been very reasonable about rolling out the new requirements and giving lots of notice in advance. As we start a new year, employers need to think, ‘do I now meet the employee threshold’ and ‘if I do, how do I create the right policy for my business’. 

The timelines each year do give employers a buffer to ensure they have any new policy reviewed before implementing them with employees.

Q. What are some of the steps employers should be taking regarding these policies if they haven’t already?

Meagan: The first step is to make sure they have the necessary policies in place by March 1 that work for their business. However, employers need to understand that these new policies do not give any new rights to employees. They are basically setting out what the expectations are when it comes to electronic monitoring and the right to disconnect. These policies are all about being transparent. 

An employer can tailor these policies to their business.  For the Right to Disconnect policy, an employer can outline the expectations for when an employee is required to review or respond to emails after hours or engage in other after-hours activities. 

An employer can also include exceptions in their policy to address urgent work that may arise. 

Communicating these expectations to employees is likely not new.  Rather, we are now requiring employers to have these expectations outlined in writing. I have seen some employers implement standard form policies – because there are lots of templates online – and then they end up restricting themselves more than necessary because many are very employee focused. 

These standard form policies don’t consider or address each employer’s specific business or its needs, so it’s important to obtain advice regarding the use of any template to see if it’s the right fit for your business. 

An employer should ensure their policy includes those exceptions and considerations needed for their own operations. Simply, an employer should consider obtaining professional assistance when creating their policies.

Q. What type of penalties could employers be facing surrounding lack of policy implementation?

Meagan: The government has not updated the regulations to include any specific penalties related to these new policies.  As of now, the standard complaint process to the Ministry of Labour is available to employees if an employer had not complied with its requirement to implement the policies.  This type of complaint will likely trigger a visit or communication from an ESA officer to investigate whether the employer is compliant.  If not, an Order requiring the employer to become compliant will likely be issued.

Q. Were there many changes to the Employment Standards Act in 2022 and did the pandemic play a role?

Meagan: COVID-19 has really pushed the government to implement new regulations through the ESA. For example, we had the Infectious Disease Emergency Leave (IDEL) regulation implemented to temporarily change the ESA rules related to reduction of hours, pay and layoffs.   We all know that the pandemic also required many employees to work remotely.  

Many of these employees began feeling the stresses of remote work and maintaining a balance between their home and work life. I believe the government was reacting to these pandemic related issues by implementing the requirement for employers to have Right to Disconnect and Electronic Monitoring policies in their workplace.

Many employers were hesitant at first and believed these polices would be onerous or would take away their ability to manage their own business.

But in reality, most of my clients have been able to implement policies that fit their business and it is now very transparent to employees what the expectations are for remote work and the monitoring of work.   

A new year has begun and with it comes challenges ahead for businesses.

Even though there are signs economic conditions are improving, such as a relatively fast drop in inflation and labour market additions, many small businesses are likely to feel the pinch of rising interest rates, the threat of a looming recession, and persistent labour shortages in 2023.

We reached out to Noah Jensen, a partner at Racolta Jensen LLP in Cambridge, to get a sense of what businesses can expect in the coming year:

Q.  What priorities or potential pitfalls should businesses wishing to expand in 2023 keep in mind?

Noah: Keep acquisitions open as an option. There are quite a few business owners with established businesses who are looking to divest themselves into retirement. Lower-mid market acquisitions (say, less than $10 million in value) are starting to see more supply than there is capital for private equity/investment firms to invest, especially on smaller deals. Acquiring an established brand with a customer list and team of trained employees that have complementary customers, production process, and/or supply chain partners can help achieve more scale by eliminating redundancies in the combined business after the acquisition is complete.

Avoid over-committing on cash, or over-hiring of employees. In the start-up world they   call this “lengthening the runway” by containing overhead costs. Labour is a fixed cost in the short-term and a variable cost in the long-term, be selective on who is being hired for what as many customers in the business-to-business landscape are being more thoughtful about purchases and many things are being delayed.

Q. How should businesses prepare for potential economic slowdowns this coming year?

Noah: Evaluate pricing. Costs have risen substantially in the past two years and there are still some businesses that have not adjusted their prices to their customers. If you have not changed pricing because your competitors have not changed theirs, you may have an issue with productivity to look at. If the market price has gone up and you have not changed your price, look at a price increase as an option. If your customers are unable to accept a price increase, look at the profitability of the relationship and consider not serving the client any longer.

Be clear on terms of payment with customers and suppliers to think through forecasting your cash flow over the next several months. Look into how this can be done with your accountant and/or bankers to see about a back-stop financing facility if needed. It is generally better to ask for financing facilities when your company is showing good financial results. You will not regret doing so now before things get too grim.

Think through your cost structure for any commitments to experiment with new products or services for your business that you thought would improve the productivity of your business. Are they all working? Is there anything that could be cut?

If you are in the business-to-business market, talk to your customers. What trends are they seeing from your competitors that they like or don’t like? How could you provide a better solution for them?

Do you have any redundant assets on your balance sheet? This would be assets that have no value to the operations of your company that have monetary value.

Q. Will this be a good year for businesses to make productivity investments?

Noah: Productivity investments will need to continuously be considered in today’s economic climate. Whether you are in dairy production or robotics, your competitors are purchasing equipment and/or software that is allowing them to get work done with less labour (a necessity in today’s labour market).

Q. How important is it for businesses to ensure they have a solid succession plan in place?

Noah: It is important to always consider the contingency plan of your business. If you are young with the intention of running your business for the long-term, failing to plan for what happens if you are suddenly disabled or facing terminal illness will put you and your family in a precarious position if any of those events transpire and you are unable to run the company. Certain insurance products mitigate the financial impact of this, but you still need to consider what shape your company will be in if you are eventually able to return to work.

If you are older and considering retirement, you should be thinking about this five-10 years out. Some considerations:

1. Customer concentration: try to avoid having a lot of revenue tied to one customer relationship
2. Supplier concentration: try to avoid having a lot of your inputs concentrated with one supplier.
3. Management aptitude: always be grooming someone else (or a couple of internal candidates) to do your job.
4. Cash flow: the valuation of the company is often determined on a multiple of cash flow. If you are selling at five times multiple, a $1 increase in cash flow increases your value by $5. So, make sure you are dialed in on profitability.
5. Structuring: the structure of corporations will make a difference in the taxation of the sale, and you should be thinking of this a couple of years prior to sale.

Q.  What should business owners consider if they are planning an acquisition in the coming year?

Noah: Be aware of market trends. With uncertainty in the system related to financing costs (interest rate driven) and risk tolerance of people investing in private companies, there will be ebbs and flows in the low-mid-market mergers and acquisitions environment.

According to a recent poll, 2022 Q4 had a pull-back in interest on the buy-side of acquisitions which could indicate that the bargaining power could tilt in the favour of buyers rather than sellers. We have seen a lot of interest in our existing clients wanting to sell. Mainly related to age/retirement.

Be aware of the quality of earnings that are presented. While many people had an amazing fiscal 2022, if you broke it down by quarters, they were increasing prices to their customers faster than they were adjusting their costs for labour. Additionally, certain industries would have been on fire during the low-financing cost era (residential/industrial construction, auto sector manufacturing), that will be facing downturns in the upcoming year or two.

Q. Will 2023 be a good year to start a new business?

Noah:  Every year is a good year to start a new business if you have a good idea or good contacts in a particular field. The difficult thing about right now is that people currently employed will probably be seeing the best of the best in terms of offers for their labour time and talents due to the shortage.

The upside to starting a business right now is that a lot of people throw in the towel when there is the amount of uncertainty as there is right now with the changing economic landscape. This creates new opportunities for people.

It has become an all too familiar scenario for many small businesses: a potential employee doesn’t show up for the interview or a new employee, perhaps after a single day or a few weeks, suddenly disappears, never to be heard from again.

For businesses already struggling with labour shortages, the phenomenon of ‘ghosting’ has grown into a real challenge as our economy continues to rebuild.

“The last time we checked, we had about 30% participation in live interviews,” says Mike Black, owner/operator of Valet Car Wash in Cambridge and eight other locations. “I’m also finding that many people go onto Indeed and apply to dozens of job postings and they have no idea why you are even contacting them because they have so many irons in the fire and are just picking and choosing.”

He’s not alone in this regard. According to a survey conducted by the Canadian Federation of Independent Business (CFIB), 37% of small business owners who responded said they have had potential hires suddenly disappear without explanation, while one out of three who’ve hired someone during the last year either had that employee not show up their first day or had them stop coming in shortly after being hired.

While salary is a clear motivator for many job seekers, Mike also believes there has been a cultural ‘shift’ as opposed to just an economic one in terms of how people currently look for work.

“There almost seems to be a complete lack of courtesy and respect for others,” he says, noting the adage ‘never burn a bridge’ no longer seems to apply.

Janice McVey, Manager Partner at the Dean Group which specializes in employment recruitment, says the fact there are so many jobs available and that accountability no longer seems to be there when it comes to referencing, are a few of the key factors.

“It used to be that having a good job reference was important and not having one used to be a real impediment,” she says. “Now, again with unemployment so low and good people hard to find, companies are lowering the bar. The job candidate understands that lack of investment from the client’s perspective, so it becomes a bit of a two-way street.”

Janice says conducting a short Zoom interview may not necessarily win over a potential employee and make them feel invested enough to sign on.  However, she acknowledges that most companies also no longer have the luxury due to staff shortages to properly acclimate a new employee –spending additional time on training or introducing them to all their co-workers - because they need them to start working immediately.

“As a result of tightening up the interview process, they actually lose that ability to truly engage somebody in the role and therefore they can lose them,” says Janice, noting ‘A list’ companies that offer higher salaries and benefits tend to have fewer ghosting issues. “I think what it boils down to is there are too many options out there and therefore people do not worry about not finding a job when they need one.”

To help combat this, she encourages her clients to really promote why a person should want to work for them.

“You have to make sure what you’ve got to offer is what the candidate is really looking for. You as an employer, have to be clear on why people want to work for your organization,” says Janice. “Because now, they’re interviewing you more than you’re interviewing them.”

And if the candidate accepts the job but there is a concern they could soon be looking elsewhere, she recommends reminding them why they accepted the job in the first place.

“What was their motivation; if money was the reason, you’re never going to keep those people because they’re going to go to the next guy who pays them more,” says Janice. “I think you’ve got to make sure you’re lining up what it is you’ve got to offer with what it is an individual is looking for.”

Mike agrees noting potential employees are paying much closer attention to a company’s core values and how it projects itself, especially online.

“You are definitely selling yourself more today,” he says, adding that communication is vital, especially during the initial interview process and explains how his company keeps in close touch with a potential employee once contact has been made.

“We stay in constant touch with that candidate, reminding them about the interview and confirming the date and time,” says Mike, adding they have had great success with video interviews which can also lead to an in-person meeting depending on the position they’re trying to fill.

Also, he says that close communication continues for the first few months after a new person has been hired.

“You really need to build a relationship that makes them feel welcomed and appreciated, and make sure they have everything they need,” says Mike. “You also have to be aware of how your employees are interacting with your new hires because they can play a major factor on whether they will stay or leave. It only takes a couple of bad apples to taint someone.”

Janice agrees, explaining leveraging your internal network can help an organization retain new employees.

“Your best salespeople as a good organization are your current employees,” she says, adding the pandemic has made the work of HR departments even harder. “I’m afraid the downside is they haven’t been able to do some of things that helped with engagement of candidates like they used to.”

When it comes to recruitment, Mike has purposely entrusted that responsibility to someone else in his organization.

“If it’s not something you’re comfortable with, you really have to delegate it to someone who is,” he says, adding each January his company also does an analysis of its turnover rate during the previous year. “We compare it with previous years to see if we’re getting better or worse. If we’re getting worse, then we really need to look at why and look at solutions as to why that rate when up.”

Employment turnover at a glance:

• More than one-third of Canadian companies (35%) say employee turnover has increased compared to last year, a significant rise from the nearly a quarter (24%) who said the same thing in 2021.
• According to the survey, employee turnover costs companies an average of over $41,000 each year (including the cost to rehire, lost productivity and more). Those costs are even higher for some employers, with more than 1 in 10 hiring managers (16%) reporting $100,000 or more per year in turnover expenses.
• For companies with increased turnover this year, the main causes identified include better pay and/or benefits offered elsewhere (36%), employees resigning (35%), employees feeling overworked (33%), retirements (30%), increased workplace demands (29%) and better perks elsewhere such as summer Fridays and unlimited vacation days (28%).
• Two-thirds of companies agree that employee turnover places a heavy burden on existing employees (64%). This is especially the case with large employers with 100 or more employees (75%) compared to small businesses with fewer than 10 employees (50%). With the added complexity of the current labour shortage, companies are having to lean heavily on their current employees.

•    Info provided by The Harris Poll commissioned by Express Employment Professionals