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2016-06-01 Eagan Business NewsEAGAN BUSINESS NEWS | SECOND QUARTER 2016 1cityofeagan.com EAGAN JOURNAL OF THE EAGAN BUSINESS COMMUNITY BUSINESS NEWS On May 22, The New York Times crossword puzzle featured, for the first time, not the longtime favorite “Edina” for “suburb of Minneapolis–St. Paul” but “Eagan.” Coincidentally, it shared a letter ”a” with AAArated, unintentionally highlighting Eagan’s solid financial footing in the top one percent of cities nationwide. Besides the obvious—hiring the right people for the right jobs, and providing fair pay and benefits—how can businesses increase employee retention? This is proving to be an increasingly important question for Eagan businesses as the economy improves, the unemployment rate remains low (2.8 in Eagan, April 2016) and the number of job opportunities grows. Indeed, according to the U.S. Bureau of Labor Statistics, three million U.S. workers quit their jobs in March 2016 (the latest month available for this statistic); these “quits,” usually voluntary resignations, are a measure of workers’ willingness or ability to leave jobs. Perhaps you’re worried some of your employees are considering job- hopping. Or maybe even you have been perusing employment websites. That’s bad news for your company. According to a study by the nonpartisan Center for American Progress, the average cost to replace an employee can run from 20 percent to two times that of an employee’s salary due to the costs of recruiting, onboarding, training and more. No wonder then that more companies are creating formal employee-retention strategies. But here’s the good news for Eagan companies: Many such strategies don’t cost a lot and may even add to a company’s profits. In researching employee-retention approaches, here are three on which businesses often rely. Employees want to make a difference. We all like to feel that the work we do is important. Employees at all levels want meaningful work that positively affects customers, colleagues and the bottom line. Key to helping employees feel this way is clear communication, including regular companywide meetings, employee surveys, and managers who listen and provide helpful feedback. Sometimes employers encourage employee involvement in activities that boost both professional and personal satisfaction. SECOND QUARTER 2016 VOLUME 14 NUMBER 2 Closing the revolving door: MARK YOUR CALENDAR SUBSCRIBE ONLINE City of Eagan 3830 Pilot Knob Road Eagan, Minnesota 55122 To subscribe to Eagan Business News or our online publication, E-Biz, please visit us at cityofeagan.com/EBN. Summertime brings holiday weekends, company softball leagues and shorter Friday hours for a lucky few. Unfortunately, summer may also deliver employee resignations—“the grass is always greener” and all that. Now is the time to head off those departures by following three strategies in our feature on employee retention (cover). This summer also finds a practical and artistic addition to Eagan’s cityscape in the form of a new communications structure (page 4). Finally, check out the initial list of tenants at Central Park Commons (page 3), opening later this year. JUNE 20, 2016 DCR Chamber Golf Classic Join friends and associates for a day of golf at Mendakota Country Club; register online now (dcrchamber.com/golf-classic.cfm) or onsite, beginning at 10 a.m. on the day of the tournament, which starts at noon. JUNE 21, 2016 Open to Business Eagan entrepreneurs are invited to access Open to Business for services and loan packages. Visit City Hall Tuesday, June 21, 1–3 p.m., or the third Tuesday of any month; visit cityofeagan.com/OTB; or contact Laurie Crow at crow@mccdmn.org. FROM THE EDITOR 3 ways to boost employee retention Employee retention coNtINUEd oN PAGE 2 1 “Our whole team inspires each other to be the best we can be,” says Kim Kelly, scheduling coordinator and LDA, of her colleagues at Dr. Jennifer Eisenhuth Orthodontics in Eagan. EAGAN BUSINESS NEWS | SECOND QUARTER 20162 cityofeagan.com Briefly PeOPle: Mike Elliott, who has a dozen years of experience in the financial services industry, has been named Spire manager for the credit union’s Eagan branch. v Scott A. Lanners, former market president at Minnwest Bank in Eagan, has been named chief credit officer at Alliance Bank, a privately owned community bank with $590+ million in assets. v Matthew Marek, formerly of Blue Cross Blue Shield, succeeds CEO Carol Kraft at Eagan-based SelectAccount, a provider of medical savings accounts; Kraft retired after 40 years in the health-care industry. v Eagan resident Bill Morrissey, president, CEO and founder of The Morrissey Group, passed away April 26 from leukemia. His company had been pursuing a $14 million hotel development, Home2Suites, in Cedar Grove; the company has decided to step back from the project. Master developers for the site have begun to market the property to other hotel investors. v Osah Phetsarath, owner of Puffy Cream Donut Plus, a family-owned-and- operated business in Eagan, died tragically in a hit-and-run car crash on April 1; he leaves behind his wife and three children. BUSiNeSS: The construction of Affinity of Eagan, a 173-unit, 55+ senior apartment project planned for Cedar Grove, has been pushed out a year, now due to begin next spring. v Country Financial, a financial-planning firm, has moved its Eagan location from Erin Drive to the first floor of The Flats in Cedar Grove. v DataBank is adding a $750,000 main data bay. v Endurance House—the first such Minnesota franchise for the Wisconsin-based, triathlon-focused retailer—opened on the ground floor of The Flats in Cedar Grove. v Dozens of business owners will be selling their wares—from fresh “Working at Thomson Reuters allows me to follow my passions and get involved in projects that make a difference in the world,” says Chelsea Reynolds, national client manager, Large Law segment. “As cochair of the Eagan Green Team, we have recently been able to draw attention to important global issues, including the recent climate-change talks in Paris, during which we held an 11- hour, continuous relay for employees to run on our campus nature trails this past winter, and hosted a summit for local business leaders to discuss the impact of climate change on their respective businesses.” Employees are loyal to companies when the feeling is mutual. Company loyalty isn’t a given. It’s earned over time as employees are trusted with challenging work, recognized for their contributions, and rewarded with salary increases, career- development opportunities and special perks. For example, Eagan-based Ergotron often hears from clients whose employees feel healthy, happy and lucky to work at the national manufacturer’s sit-stand desks. “Increasing natural, low-level activity helps employees manage energy levels, improve focus and mood states, burn calories and support their personal work styles—increasing both employee engagement and productivity,” says Lynne Odegaard, human resources business partner director. Employees desire flexibility and life- work balance. Perhaps your corporate campus has a community garden. Or maybe it offers an on-site health club or day care. Or perhaps flexible work schedules accommodate doctors’ appointments and family obligations. According to GlobalWorkplaceAnalytics. com, “what employees of all age groups want is the flexibility to determine for themselves where, when and how they work.” Employees who telecommute, for example, tend to work harder and longer, thanks to fewer interruptions; they are more effective at time management; they feel trusted and empowered; they experience less stress; they continue to work when they’re sick (from home, where they aren’t negatively affecting colleagues); and they are happier with their jobs. Jaime Nordin, a community-relations coordinator for Dr. Jennifer Eisenhuth Orthodontics in Eagan, appreciates her flexible work schedule and working from home. “I love working here because of the importance of life- work balance,” she says. In addition, some companies offer paid leaves because it helps their employees and because such a benefit makes economic sense. According to a 2015 White Paper on Paid Leave and Health by the Minnesota Department of Health, “employers offering paid sick and family leave enjoy economic benefits, including improved recruitment, retention and morale of employees. Conversely, a lack of employee access to paid leave results in costs for employers, including lost labor time, costs related to the spread of illness and disease, and challenges in employee recruitment and retention.” Finally, it’s a good idea to remind your employees why they want to work for your company in the first place. People like working for a winning company. Perhaps employees want to work for your company because your products are top notch. Or maybe your customer service is unparalleled. Or your company is the leader in its field. Whatever the reasons, it’s a good idea to keep that knowledge front and center. Doing so might give your employees pause if they’re ever considering that revolving door. EBN Employee retention coNtINUEd FRoM covER 2 3 Briefly coNtINUEd oN NEXt PAGE Chelsea Reynolds Lynne Odegaard EAGAN BUSINESS NEWS | SECOND QUARTER 2016 3cityofeagan.com produce to hand-crafted art—al fresco at Eagan Market Fest; the Wednesday evening events are held at Central Park’s Festival Grounds and Eagan Rotary Band Shell at the Eagan Community Center, June 1–September 28. v The Eagan Planning Commission unanimously approved rezoning City-owned land to limited industrial property due to interest from Gerten’s Nursery. These 12 acres (805 Yankee Doodle Road) were platted in 1988 and remain undeveloped. The decision now goes to the City Council. v Hydra-Flex—which manufactures fluid-handling equipment for vehicle-wash, water-excavation and sanitation purposes—plans to move its office and manufacturing facility to Eagan in late June; the new site (980 Lone Oak Road) will be 30,376 square feet—more than double the size of its current location in Burnsville. v The City Council’s votes on the Minnesota Vikings’ planned move to Eagan have been scheduled for June 7 and 21. Prior to the City Council’s taking action on a comprehensive plan amendment and rezoning 200 acres in northeast Eagan, the Metropolitan Council must review regional impacts, including any affecting traffic, of the proposed use. GOVerNMeNT: Construction of a new platform at the Cedar Grove Transit Station will enable METRO Red Line commuters to board and exit buses in the middle of Cedar Avenue, and arrive up to 10 minutes earlier to their destinations. v The Minnesota Legislature completed its session without passing a public-works bonding bill, leaving hundreds of construction projects at a standstill. A possible special session to pass such a bill may be in the works. v Dakota County’s summer reconstruction project on Pilot Knob Road, between Yankee Doodle Road and Central Parkway/Northwood Parkway, is expected to start in mid-July and last through the 2016 construction season. For more, visit cityofeagan.com/construction. EBN with the following stipulations: allow capacity for current antennas, provide room for future antennas, make it aesthetically pleasing, provide a minimum downtime for users and ensure a smart investment. The new tower also will double as public art, with dynamic light displays — say, green on St. Patrick’s Day. “The idea of this longtime landmark will live on,” says Russ Matthys, public works director, “but in a more creative manner—with a one-of-a-kind light show over Eagan.” Scheduled for completion this year, the tower is funded by cellphone companies and private users via leasing fees to the City; it is scheduled to pay for itself within nine years. And like its predecessor, it is designed to last 30 to 50 years. EBN New tower coNtINUEd FRoM PAGE 4 Developer CSM is busy completing Central Park Commons, its approximately 400,000-square-foot retail/office development on the site of the former Lockheed Martin building (Pilot Knob and Yankee Doodle roads). Tenants will begin opening this fall. And at long last, curious onlookers are learning their names: AT&T Bank of America Cafe Zupas DSW Fairview Clinic Five Below Hobby Lobby HomeGoods Hy-Vee Marshalls Massage Envy Central Park Commons tenants announced Men’s Wearhouse Naf Naf Grill Orangetheory Fitness Piada Italian Street Food Punch Pizza Sierra Trading Post Tavern of Eagan Tile Shop Total Wine Ulta Xfinity Briefly coNtINUEd FRoM PREvIoUS PAGE The 166-foot height of the former Sperry Water Tower wasn’t just for show; its stature provided pressure, delivering water far afield to Eagan businesses and residents. The new tower will reach 186 feet; its height is needed to ensure that communications will reach all areas of Eagan. EAGAN BUSINESS NEWS | SECOND QUARTER 20164 www.cityofeagan.com STANDARD U.S. POSTAGE PAID TWIN CITIES, MN PERMIT NO. 4902 3830 Pilot Knob Road Eagan, Minnesota 55122 IN THIS ISSUE Design & Layout Cory Laux Overdog Art Editor Karin B. Miller Working Words, Inc. Back in 1967, Eagan residents were making calls on rotary dial phones, taking instant Polaroid photos and watching newfangled color TVs. That was also the year they witnessed the construction of Eagan’s first City-built water tower, which stood at 146 feet and was designed to hold half a million gallons of water. The modern structure, dubbed the Sperry Water Tower after its then nearby business neighbor (now Unisys), would stand near Pilot Knob and Yankee Doodle roads as a landmark for nearly 50 years. While the previous tower hadn’t held water since 2009, the structure had hosted cellular-service and emergency-communication antennas for which the City collected lease fees from government agencies and cellular service providers. (Until the new tower’s completion, the antennas have been moved onto temporary poles.) Last month—after a public survey, media coverage and many City Council discussions— the tower was demolished (www.youtube.com/ watch?v=ir6ZdpCUshs) by Vinco, Inc., making way for the Minnesota-based, wireless-construction contractor to build a 186-foot, $1.2 million “stealth” tower—so-called for its antenna concealment. Rather than build a new tower, other options to preserve the former tower were discussed, including repainting and refurbishing, which would have cost roughly $600,000. Yet 76 percent of surveyed residents liked the idea of replacing the tower, and 100 percent said maintaining or improving cell-phone coverage was important. The City Council unanimously approved a new tower New cellular-service tower in the works Sperry Water Tower demolished New tower coNtINUEd oN PAGE 3 p1 Closing the revolving door p3 Central Park Commons tenants announced p4 New cellular-service tower in the works The new communicaTions Tower will feaTure a digiTal clock and a “one-of-a-kind lighT show over eagan.”