Board Converting News, November 13, 2023

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 39 years November 13, 2023 VOL. 39, NO. 46

Manage Toxic Employees By Identifying Damaging Behaviors BY PHILLIP M. PERRY Wilber always arrives late. Margareta constantly badmouths her em- ployer. Joseph talks over others in meetings. Welcome to the employees from hell. Their toxicity creates a nega- tive workplace, causes resignations by colleagues, and threatens the bottom lines of the best businesses. What to do? Here are the actions supervisors can take to turn nega- tive workers into positive performers.

SPG Acquires Complete Packaging Of Monroe, MI Oakland, California based Specialized Pack- aging Group (SPG), a vertically integrated provider of protective packaging products, announced the acquisition of Monroe, Mich- igan based Complete Packaging, a portfolio company of the Spell Family Office. Complete provides custom-designed packaging solutions for a diverse array of end markets, including automotive, heavy truck, energy, aerospace, defense, heavy equip- ment, and general industrial. SPG, one of the largest independent pro- tective packaging manufacturers in North America, is a portfolio company of Altamont Capital Partners. The acquisition will enhance SPG's existing capability set by expanding the company's engineered packaging offerings and geographic reach while adding approx- imately 90 employees to its 1,600-person workforce. Complete's leadership and full workforce will continue to operate in their current locations in Detroit and Monroe, Mich- igan. “The addition of Complete Packaging to our rapidly expanding team means we will be adding industry-leading custom engineered

1. Wilber is chronically late and always has a good excuse. Chronic lateness inconveniences colleagues and creates a dysfunctional work- place. “Dealing effectively with Wilber is a two-step process,” said Eric Cormier, Manager of HR Services at Insperity (Insperity.com). “The first is to find out the real reasons why Wilber struggles to arrive on time. The second is to help him connect the dots to solve the problem.” Keep in mind that Wilber may be just as frustrated as you by his chronic tardiness. “The fact that Wilber always has a good excuse indi- cates either that he cannot see the bigger picture for his tardiness, or he is resisting taking accountability,” said Cormier. Either way, Wilber needs help. Schedule a one-on-one conversation with the goal of shifting Wilber’s perspective so he begins to recog- nize the scope of his problem. Be open and non-judgmental so Wilber feels comfortable revealing any personal challenges that are affecting his performance. “Set your frustrations aside and be genuinely curious CONTINUED ON PAGE 24

CONTINUED ON PAGE 5

WHAT’S INSIDE 5 ICPF: Only A Few Seats Left For Holiday Weekend In NYC 8 PPC Virtual Boot Camp Set For December 4-7 10 AICC Drops New Episode Of Breaking Down Boxes 14 PPC Recaps Highlights From Fall Meeting In San Diego, CA

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AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner $955.00-960.00 $970.00-980.00 $970.00-980.00 $ 970.00-980.00 $1000.00-1010.00 $973.00-983.00

26# Semi-Chem. Medium

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$ 890 .00-9 4 0.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 2 5.00-9 4 5.00 $9 0 8.00-9 2 8.00

West Coast U.S. Average

SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets

E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.

More box makers, brokers and end users are relying on the containerboard pricing in Board Converting News to negotiate their contracts than ever before. See the current prices every week right here on Page 3. The Price is Right!

200# 275#

$62.26

$72.05

$62.69 $82.80

$85.35 119.54

$73.13 101.29

97.32

99.89

90.86

113.65

OYSTER UP-CHARGE 8.34

8.34

8.34

8.34

8.34

8.34

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08 148.46

122.76 131.80

CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.

Len Prazych at 518-366-9017 lprazych@nvpublications.com

42# Kraft Liner 26#

Semi-Chem Medium

East West

$9 2 0.00 $ 96 5.00

$9 1 0.00 $9 4 5.00

3

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November 13, 2023

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SPG Acquires (CONT’D FROM PAGE 1)

packaging capabilities to an operation that is already world class. Complete has been a go-to provider of pro- tective packaging solutions for over 40 years,” said SPG CEO Paul Budsworth. “We are also excited to strengthen our presence in the Detroit-area and Midwest markets, allowing us to better serve our customers. We are looking forward to bringing the Complete Packaging team fully on board and integrat- ing them into a footprint that extends across North Amer- ica and provides high-quality packaging solutions to a di- verse customer base.” Complete Packaging President & CEO Gregg Reau said that the company has grown rapidly over the last several years by focusing on highly engineered, multi-substrate packaging solutions that enable its customers to reliably transport their most sensitive, mission-critical products. “With SPG, we have found a partner that shares our vi- sion and has the resources to accelerate our growth plans in new and existing markets. The Complete team is thrilled to join SPG, and we look forward to taking our combined business to the next level.”

Few Seats Remain For ICPF Holiday Weekend In New York

Limited spots remain for the International Corrugated Packaging Foundation’s 2023 Holiday Weekend in New York event set for December 8-10. The event helps sup- port ICPF’s educational programs and initiatives while en- joying New York’s holiday season. Guests will be staying at The Refinery Hotel, a luxury hotel near Bryant Park in Manhattan’s Garment District. Beginning with a Friday evening reception, ICPF guests will attend a Saturday matinee of The Neil Diamond Musi- cal, “A Beautiful Noise,” sponsored by BW Papersystems. The musical tells the story of the legendary Neil Diamond and features all his hit songs, including “Sweet Caroline,” “America,” and “Cracklin’ Rosie.” From his early days in New York to the sold-out spectacles that defined his ca- reer, the Los Angeles Times says that A Beautiful Noise ex- plores the life of a rock icon through the music that made him a national treasure. Saturday evening, participants will attend a reception and dinner at a location soon to be announced. Drawing inspiration from their early life as a hat factory, each of the 197 rooms at Refinery Hotel feature industrial details such as 12-foot ceilings, large windows, and dis- tressed hardwood floors. ICPF has reserved Studio King rooms ($649) and suite Atelier Executive rooms ($799) for the event. To reserve a room, visit refineryhotelnewyork.reztrip. com . To register for the event, visit icpfbox.org . For more information, contact Caitlin Salaverria at csalaverria@icpf- box.org or (847) 226-2671 with any questions.

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November 13, 2023

EL Winter Social To Feature Harris Packaging Designer Shaban Al-Refai AICC, The Independent Packaging Association, an- nounced open registration for the upcoming Emerging Leaders Annual Winter Social set for November 30 fo- cused on training, networking, and a virtual happy hour. This year’s event will feature the Emerging Leader's own Shaban Al-Refai spending a few minutes discussing the some of the best education and training options across our industry. Shaban is a designer at Harris Packaging in Fort Worth, Texas, and teaches packaging and 3D CAD

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2023

Year

Actual

Percent Change Avg Week Percent Change

2023 2022

3 0.911 3 2.734

-5. 6

7. 728 7. 794

- 0.8

Industry Total

Year-to Date

September 2023

Year

Actual

Percent Change Avg Week Percent Change

2023 2022

285.619 305.519

- 6.5

7. 556 7.998

- 5.5

Industry Total

Containerboard Consumption (Thousands of Tons)

design at the University of Texas at Arlington. He also sits on the AICC Education Committee. Shaban will be talking about his work in helping improve the availability of industry education resources and will also share what he's excited about for the future. Participants will form into small

Year

Month

Percent Change Year-to-Date Percent Change

2023 2022

2. 5387 2. 6314

- 3.5

23.3187 24.8978

- 6 .3

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Sept. Aug.

2.2 15 2 2. 1606

2.5

3. 5 3. 6

- 2.8

groups for the virtual happy hour. Emerging Leaders say this is always one of their most popular webinars of the year one won’t want to miss. Register at aiccbox.org . For more information, contact Taryn Pyle, Director of AICC Ed- ucation and Talent Development, at tpyle@aiccbox.org. Shaban Al-Refai

Shipping Days

Year

Month

Year-to-Date

2023 2022

2 0 2 1

1 89 1 91

SOURCE: Fibre Box Association

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Registration Open For Folding Carton Boot Camp Set For December 4-7 The Paperboard Packaging Council announced the return of the virtual Folding Carton Boot Camp set for Decem- ber 4-7. Boot Camp is an essential training opportunity for those new to cartons or the industry and non-plant per- sonnel with limited experience outside a plant operation.

points and processes in between. Some of the speakers and topics will include: • Virgin Paperboard: Steve Rote, A 45+ year veteran of the industry and Technical Director of Metsä Board Americas Corporation • Recycled Paperboard: Jennifer Lechlitner, Technical Service Manager for Graphic Packaging International’s Kalamazoo, Michigan team; and Jacob Reid, a Chem- ical Process Engineer for Graphic Packaging Interna- tional’s Middletown, Ohio Mill • Processes and Formats, Sheeting & Rewinding, Digi- tal Diecutting, Air Hammer Stripping, Automatic Pack- ing: Ben Markens, President & CEO of the Paperboard Packaging Council • Printing Processes, Digital Printing, Rotary Cutting: Eric Frank, Senior Vice President of Marketing/Product Management, Koenig & Bauer • Litho Laminating, Sheetfed Diecutting: Doug Herr, a ca- reer veteran at Bobst North America • Folding & Gluing: Bill Rice, Product Manager, Heidel- berg USA Each participant will receive a copy of the “Ideas and Innovation Handbook” ($180 value), as well as a binder full of paper and carton samples, instructional information, speaker presentations, a glossary of printing terms as well as a certificate of completion, ready for framing. To regis- ter, visit paperbox.org . Pricing is $1,295 for members and $1,795 for nonmembers.

The four-day virtual event will include topics such as windowing, rigid boxes, automatic packaging, cold and hot foil, tooling, laminating, and more. There will be a mix of professionally pre-recorded presentations as well as live interactive speakers. This is an opportunity to hear from industry leaders and learn all aspects of the industry, from making paper to customer delivery and all “folding carton”

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Registration Opens In December For AICC 2024 Spring Meeting AICC, The Independent Packaging Association, an- nounced registration will start in December for the 2024 Spring Meeting & 50th Anniversary Celebration in Palm Desert, California. Taking place April 8-10 at the JW Marriott Desert Springs Resort & Spa, the meeting will offer attendees valuable sessions, speakers, essential information and in- sight into new trends, along with various networking and social events. AICC will be celebrating a few milestones during this meeting including the association's 50th Anniversary, the 10th Annual Independents' Cup Charity Golf Tournament, and the Emerging Leaders 10 Year Reunion.

The resort is situated 13 miles southeast of Palm Springs and is a two-hour drive from both Los Angeles and San Diego. The luxury hotel, which was recently renovat- ed, features superb service, redesigned venues, and fam- ily-friendly amenities. Located on 436 landscaped acres, the resort complex features 23 acres of lakes and Venetian inspired waterways including an eight-story atrium lobby with exotic birds, palm trees, waterfalls and boat dock. The resort also boasts five swimming pools, 36-holes of Ted Robinson designed championship golf, 20 tennis courts, 18 boutiques, and tantalizing restaurants. Attendees are encouraged to make their hotel reser- vations before the group cut-off date of March 12, 2024, to be guaranteed availability, and to ensure you receive the group rate. The hotel block will likely sell out prior to the cut-off date so booking your hotel reservations early is strongly recommended. Additional details on the meeting

and registration information will be avail- able in mid-December 2024 at www.aic- cbox.org/meeting . AICC Drops New Breaking Down Boxes Episode AICC, The Independent Packaging Asso- ciation, announced the latest episode of Breaking Down Boxes featuring the team from Haire Group. Hosts Gene Marino, President, Akers Packaging Service Group, and Joe Morelli, Vice President of Sales & Marketing, Huston Patterson Printers and Lewisburg Printing Co., will speak with Jeff Quinn, Haire Group CEO & Owner; Keith Umlauf, COO & Owner, and Mike Mulroe, President, for the Wild West webinar. After decades of working together, the four horsemen go down to two and Quinn and Umlauf knew they needed to bring in a skilled leader to complement their skills. Enter Mike Mulroe. With humor and humility, they candidly talk through their history, the transition, and lessons learned. They also discuss their decision and process to keep the culture while moving Haire Group from a lifestyle company to a performance-based company. “The conversation with Haire covers our industry’s history, a family business, gener- ational transitions, and how to face change and the future. The Haire team has been a part of each listeners’ story so there is a gem for everyone,” said Mike D’Angelo, AICC President. The Wild West webinar is available on all major podcast players or at www.AICCbox. org/Boxes .

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Kolbus America Appoints Anissa Smalls To Oversee Finance Dept. Huntersville, North Carolina based Kolbus America an- nounced the recent appointment Anissa Smalls to the position of Director of Finance and Accounting. She will work out of the Huntersville office and will report to Kolbus America President, Jeff Dietz. Smalls comes to Kolbus America with a great deal of education, finance knowledge and experience. She holds a Master of Business Administration (MBA) from Southern New Hampshire University and a Bachelor of Science in Business, Management and Economics from SUNY Em- pire State University. Prior to joining Kolbus America Inc. as the Director of Finance and Accounting, she has held controller positions for both an Israeli based financial consulting firm and a re- gional construction services corporation. Her experience includes over a decade of supervisory accounting roles in manufacturing, distribution and construction industries. “We are very pleased to bring Anissa on board. She is ethical and knowledgeable in managing financial controls in accordance with standard procedures and principles of accounting,” said Dietz. “Her background and experience will be an asset to our company and our customers.” ChromaScape Introduces R&D Scientist Jason Bateman Cleveland, Ohio based ChromaScape introduced Jason Bateman, its dedicated and results-driven R&D Scientist, who has a passion for exploring new frontiers in technolo- gy and innovation. Bateman’s primary focus is identifying opportunities within adjacent markets, strategically expanding revenue streams and cultivating technical expertise. One of his key

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Paperboard Packaging Council Recaps Final Highlights From Fall Meeting In San Diego, CA More than 200 people attended the Paperboard Packaging Council Fall Meeting & Leadership Conference at the Rancho Bernardo Inn where at- tendees enjoyed sunny San Diego, California and learned strategies to strengthen leadership skills, heard powerful insights from industry lead- ers, and celebrated innovative paperbox designs. Clearwater Paper Corporation President and CEO Arsen Kitch pre- sented the first keynote, speaking to an engaged audience about the pivotal role of innovation within our business and how the sustainability of fiber-based products is driving growth within the industry. Arsen also provided insights into the hiring challenges many members are facing and offered tactics to retain talent in our ever-evolving field. Royal Paper Box Co. President Darryl Carlson offered some of the cri- sis management takeaways he experienced in the aftermath of a tornado that touched down on his Los Angeles, California based plant. Darryl pro- vided tactics to retain customer trust in times of crisis while showcasing the importance of strengthening business resilience. In the thought-provoking session on Packaging Megatrends for 2023 and Beyond, David Feber from McKinsey & Company shed light on the evolving landscape of the global packaging industry. His presentation outlined the key factors driving change in the $1 trillion global packaging industry, with a keen focus on paperboard packaging. David showcased how sustainability has taken center stage with consumer and regulatory pressures pushing new initiatives to the forefront. The presentation also focused on how digital technologies are be- ing integrated into various aspects of packaging, while economic factors such as inflation and the need for destock- ing are now causing new hurdles.

Thursday afternoon’s programming was filled with sessions focusing on col- laboration, member achievements, and economic foresight. With a strong lineup of speakers and presenters, attendees garnered insights on design, sustainabil- ity, and economic trends to consider for the year ahead. The afternoon session commenced with the gathering of our Women’s Lead- ership Council, led by Ann Bowers-Evan- gelista, who guided women leaders through revolving key issues like global communication changes within our in-

The University of Wisconsin, Stout won first-place in the Stu- dent Design Challenge for the Triangular Paperboard Lip Balm after tasked to create a design for a personal care product that is typically packaged in plastic.

dustry and its impact on organizational and personal effectiveness, the various myths and realities of different communication styles, along with strategies to increase communication effectiveness and engagement. Stay tuned for upcoming announcements on the PPC Spring Outlook & Strategies Conference set for April 10-12, 2024 in Dallas, Texas.

14

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November 13, 2023

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What Reducing Plastics Means To The Canadian Paper Packaging Industry BY RACHEL KAGAN There are so many policy proposals aimed at addressing plastic packaging right now that it can be hard to keep

the marketplace and in the media. On one hand, more businesses and brands are shifting from plastics to oth- er materials, including paper-based packaging. But in re- sponse to some of those moves, PPEC has also seen an increase in misleading commentary about paper packag- ing. As more companies and government organizations around the world commit to reducing plastic packaging in the marketplace, and in landfill, the paper packaging in- dustry has been working to meet demand for renewable, responsibly-certified, and recyclable packaging alterna- tives. These are just a few examples where plastic pack- aging is being replaced by corrugated and paper-based packaging: • Graphic Packaging International’s range of plastic-free paperboard lids • WestRock and Atlantic Packaging’s fibre wrap to re- place plastic shrink films • Cascades closed corrugated cardboard basket for fresh fruits and vegetables • Church & Dwight’s Arm & Hammer Power Sheets Laun- dry Detergent’s paperboard box • PepsiCo Beverages paperboard design to replace plastic rings on multipacks • Unilever’s Pot Noodle new paper-based packaging • Mars Wrigley’s recyclable paper-wrapped chocolate bar CONTINUED ON PAGE 18

track of it all. The Paper and Paper- board Packaging Environmental Council (PPEC) has been working to stay updated on government and industry initiatives aimed at reducing plastics – both in Cana- da and globally – and how that im- pacts PPEC members and the pa-

per packaging industry. In addition to the mandatory ban on some single-use plastic items, there has also been consultations on pro- posals for everything from enacting minimum recycled content standards for plastics, to developing new labelling rules and reporting requirements for plastic packaging, to the most recent consultation on specifically reducing plas- tic food packaging at large grocery stores. These are just some of the Canadian initiatives being considered to help the federal government reach its zero plastic waste goal by 2030. The Canadian paper packaging industry has already started to see the impacts these initiatives are having in

16 November 13, 2023

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Reducing Plastics (CONT’D FROM PAGE 16)

one of the most widely recycled materials. Not only do consumers have access to residential recy- cling programs that accept paper-based packaging – the majority of Canadians have access to recycling for cor- rugated cardboard, paper bags, and boxboard as deter- mined through an independent third-party study – but the infrastructure and end markets are also in place to ensure paper packaging materials can actually be recycled.

• Kelloggs trials a new tube made of paper for its Pring- les chips It should be noted that while these initiatives are posi- tive, their success hinges on the role of the consumer, and will only be beneficial if consumers do their part by recy- cling to allow those materials to be reused, so that they can be made into new paper-based packaging, again and again. And we expect to see continued moves from plastics to paper-based packaging in the wake of regulatory and corporate initiatives. In fact, a study from the Society for Packaging Research showed that corrugated cardboard could replace 21% of plastic packaging. But as governments and businesses navigate their way around how to meaningfully reduce the use of plas- tic packaging and waste, we are seeing more discussions unfold on what “recyclable” means, confusion surrounding the term “single-use,” and misleading statements about paper-based packaging. Most materials can technically be recycled if given the right conditions, such as access to recycling, collection, processing, and, most importantly, the existence of estab- lished end markets, which allow recycled materials to be bought and used in place of virgin materials. That doesn’t mean those conditions exist for all materials consistently or at scale. But they do exist for paper packaging, which is

These conditions have been in place for years, which is why paper packaging makes up a large proportion of residential Blue Box recycling programs across Canada. It’s all part of the Canadian paper packaging industry’s long-standing circular economy. PPEC members have been using recycled content as their primary feedstock for decades, it’s an inherent part of their business model.

CONTINUED ON PAGE 20

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Reducing Plastics (CONT’D FROM PAGE 18)

According to Natural Resources Canada’s State of Can- ada’s Forests Annual Report, the total forest harvest for all lumber (which includes market pulp, tissue, newsprint, packaging, and printing and writing paper) represented 0.2% of Canada’s forest land in 2020.

And yet, despite this successful model, despite the wide access to recycling, and despite the investments from our industry to regularly buy back their own materials to use in place of virgin materials, we are seeing more misleading statements about paper packaging in the context of plas- tics, especially as they relate to the term “single-use,” and misconceptions about forestry and paper packaging. It’s important to understand that, in essence, most packaging materials – whether it’s glass, metal, plastic, or paper – can be considered single-use. But the key point is that some of these materials are more successfully re- cycled than others. And paper packaging is one of those successful examples, with research showing that paper can be recycled up to seven times. That’s not single use. That’s reuse up to seven times. That’s because paper packaging materials have the right conditions in place to be collected, processed, and actually recycled – and not all materials have those condi- tions or such an established recycling framework. While most paper packaging made in Canada is pro- duced with recycled content, the paper fibres it was origi- nally made from came from a tree. However, the Canadian paper packaging industry doesn’t use much in the way of freshly cut trees, and the little that is harvested must be successfully regenerated by Canadian law.

Furthermore, the paper packaging industry is not a ma- jor cause of deforestation – which is when forest land is permanently cleared and converted to make way for new, non-forest land use – it is the agriculture, mining, oil and gas, and built-up sectors that account for the majority of permanent deforestation. The facts are clear. The major paper packaging grades made in Canada – which include containerboard (used to make corrugated cardboard boxes), boxboard (e.g., cereal or shoe boxes), and Kraft paper (used for bags and sacs)

CONTINUED ON PAGE 22

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Reducing Plastics (CONT’D FROM PAGE 20)

– are made from a highly recyclable material that is re- used repeatedly. It is not single use. It is not made from a non-renewable material. It is a highly collected material in residential recycling programs across Canada. And it is a highly recycled material. And in some cases, it is also a compostable material, where organics management facil- ities exist.

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Toxic Employees (CONT’D FROM PAGE 1)

about why Wilber is late so often,” said Cormier. Start by pointing out that he is rarely on time and ask why that might be the case. If recurring immovable con- flicts, like school drop-offs, are the issue, then schedule flexibility might be the solution. “Shifting Wilber’s official arrival time thirty minutes later could make Wilber a punc- tual employee overnight, and reduce his stress level, too,” said Cormier. Perhaps Wilber has personal challenges that are caus- ing the problem. “Some mental health conditions can make it more challenging for employees to arrive on time,” said Cormier. “Gently ask him about how he is doing, giv- ing him the opportunity to share without pressuring him to open up. Regardless of Wilber’s answer, his manager can remind him of any available personal resources such as an employee assistance program (EAP).”

The meeting should, above all, be solutions oriented. “Be clear that the goal of the conversation is to step away from excuses, understand the bigger picture and come up with a lasting solution.” Bonus Tip: Schedule follow-up meetings so Wilber is held accountable for improvement and can request need- ed support. 2. Sandy keeps saying “It’s not my job” when asked to do a task. Recalcitrant employees who appeal to the constraints of their “job description” can frustrate the best of managers. The traditional solution was to throw down a gauntlet: get to work or get fired. But that can create morale problems that affect team performance and erode profitability. Instead, undertake a three-step plan designed to uncover the hidden reason for Sandy’s behavior. Step One: Assess the situation. “What does your histo- ry with Sandy tell you in terms of her willingness to get a little bit stretched in the work she does?” poses Bob Ver- chota, senior consultant at RPVerchota & Associates, Min- neapolis. “Is her reluctance something new, or did it start at a certain time? And is it related to one specific task, or many?” The answers to these questions can provide clues to possible causes. Step Two: Ask Sandy for input about her motivations. “Have a frank conversation with Sandy,” suggests Vercho- ta. “Cover what you know about her work habits, as eluci-

CONTINUED ON PAGE 26

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Toxic Employees (CONT’D FROM PAGE 24)

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dated in Step One. If she has been willing to perform extra duties in the past, what has changed in the organization?” Step three: Determine solutions. Rather than impose a solution from above, ask Sandy to suggest a path forward. If she feels her skills are inadequate to the new duties, that can be solved with additional training. If the problem is personnel clashes, this can be solved with counseling for all involved. Bonus tip: Remind recalcitrant employees that most job descriptions include a phrase requiring em- ployees to perform “other duties as assigned.” 3. Joseph is in the habit of “talking over” others in meetings. Failure to deal with an overbearing team mem- ber can create morale and productivity problems when employees feel their contributions are belittled. “Have a sit-down meeting with Joseph and explain how their behavior is affecting other people,” suggests Deanna Baumgardner, President at Employers Advantage (employersadvantagellc.com). “Say something like, ‘We've noticed you’re talking over people, you're talking loudly and interrupting. We need to give other people the op- portunity to share. Here's what we expect from you.’ Then provide guidance on how Joseph should pause his own statements to let others contribute.” Despite Joseph’s best efforts to improve, he may occa- sionally lapse. If his intrusions continue unchallenged, oth- er employees will lose respect for the manager. It’s wise to speak up and create opportunities for other people to express their ideas. This can be done with a statement as simple as, “Joseph, thank you for your feedback. Now let's hear from somebody else.” Bonus tip: Ask Joseph if he would like coaching on how to communicate well in group settings. 4. Julia is bad-mouthing a customer to a colleague, and another customer overhears her remarks. Custom- ers have long memories. When they hear an employee make negative remarks about a fellow customer, they will start to wonder if they will also be targeted. Revenues will likely be affected. “You should talk to Julia to say you have observed her behavior and it is not acceptable,” said Anastasiia Khyzh- niak, Talent Enablement Director at Jooble (jooble.org). “She needs to understand that such actions create a bad environment for other workers, turn off customers and create a bad image for the company in the community.” Even if a customer had not overheard her remark, impos- ing negative sentiments on another employee can create a toxic workplace. The trick here is to avoid being too negative in tone be- fore you get Julia’s side of the story. Perhaps she was hav- ing an especially bad day or other factors played into the event. “Start the conversation by giving positive feedback about Julia’s performance in general,” said Khyzhniak. “Highlight her positive traits and tell her she has a huge future with the company. Then go on to say that you are

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CONTINUED ON PAGE 28

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Toxic Employees (CONT’D FROM PAGE 26)

Did she start out contented, and at a certain point become upset or unhappy? If so, that information can be helpful in a coaching session to uncover the reason she is so nega- tive about the company.” Schedule a coaching session that is positive in its na- ture. State something like, “I heard you make this com- ment. I'm very concerned about it. I want to understand why that was made. What happened to you to make you want to say that?” This approach tells Margareta that you are on her side. You want to alleviate any workplace pres- sures that are affecting her performance. This is a perfect opportunity to uncover anything wrong in the company that might be affecting other employees. Is it a certain process? The behavior of a colleague? A supervisor? Once you have this information you can take steps to alleviate any negative workplace problem. You can also coach Margareta on steps she can take to adopt a positive attitude. Bonus tip: Toxic bosses are the number one reason good employees quit their jobs. 6. Carlos pooh-poohs every idea other employees (and managers) suggest. “Carlos’s supervisor should first try to uncover what’s causing the negativity,” said Randy Goruk, president of The Randall Wade Group, Scottsdale, AZ (leadersedge360.com). “Are there challenges at home? Is something happening in the work environment?” If Carlos is being negative about a certain topic, then ask for solutions that can turn the negative into a posi-

addressing her recent performance from a place of care. Note that the behavior you observed will get in the way of her advancement if it continues.” It may be that rude behavior on the part of a custom- er sparked Julia’s outburst. If so, Julia needs instruction on productive engagement of such situations. “A better way to handle a rude customer is to give direct but polite feedback, setting reasonable personal boundaries,” said Khyzhniak. “If Julia feels the need to blow off steam, she should do so outside of work with her friends. She might even be encouraged to come to you to vent.” Finally, agree on some outcomes. Julia can commit to not repeat her offense. She can also make a conscious effort to adopt a certain kind of positive behavior with the public that will help her advance in the company. Over the coming weeks, monitor Julia’s behavior to assess her progress. At an appropriate time, praise Julia for her be- havior or schedule another counseling session. Bonus tip: Create a workplace environment in which employees feel free to come to you to unbottle frustra- tions that can impede their performance. 5. You hear Margareta tell a customer “Manage- ment really stinks here.” Poisonous attitudes don’t come from a void. “It’s important to understand why Margareta made her comment,” said Shep Hyken, customer service consultant. “The first step is to consider her work history.

CONTINUED ON PAGE 30

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Toxic Employees (CONT’D FROM PAGE 28)

Board Converting NEWS INTERNET DIRECTORY

tive. If you can’t do what he suggests, explain why and explore alternatives. Longer range, the supervisor should also make a point of showing appreciation and recognition to Carlos when he does something worthy of it. Empha- size his skills and value to the organization. Being avail- able and approachable to all employees sends a signal that you want to hear what they have to say.

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Goruk also suggests making a personal connection with Carlos to discover what gives him joy. “The supervi- sor may be able to find ways to introduce nuggets of joy into his negative viewpoint or conversation.” Bonus Tip: Supervisors can help create positive feelings in the staff by taking the lead in celebrating team successes and de- veloping recognition programs. Stay Positive: There is no universal formula when deal- ing with negative employees. Because everyone’s back- ground is a little different, success lies in determining a tailored response. All solutions tend to share one commonality: They rely on a proactive supervisor to arrange for a counseling ses- sion, determine the cause of toxic behavior, and blaze a path forward. “Schedule a transparent and clear conver- sation about what has transpired with the negative worker and why their behavior is not okay,” said Dennis Theodor- ou, Managing Director at JMJ Phillip Group. “Exhibit some understanding and empathy and encourage employees to open up about underlying issues.” Supervisors should emphasize the positive in employ- ee relations. “The management habit of only pointing out negatives can create an unhealthy work environment,” said Theodorou. “While you have to be firm but fair with employees when things are not going in the right direc- tion, you must also recognize and reward those same em-

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ployees when things are going right.” Phillip Perry is an award-winning freelance writer and a regular contrib- utor to Board Converting News. His byline has appeared over 3,000 times in the nation's business press. Reach him at linkedin.com/in/phillipmperry.

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