Choice Hotels becoming home-based
By WHITNEY PANDIL-EATON, Staff Writer wpandileaton@minotdailynews.comArticle Photos
Fact Box
First MAGIC Fund recipient
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Choice Hotels International was the first major company to benefit from the creation of the MAGIC Fund when it was approved by Minot taxpayers in 1990. In November 1990, the company was approved for a $400,000 grant that helped it locate a call center at 625-20th Ave. SE and open for business in 1991. During the next half decade, the company's call center business increased rapidly from less than 2 million calls per year in 1991 to more than 6 million calls by 1998.
As a result of the increase in business, Choice Hotels requested a $500,000 MAGIC Fund grant in September 1998 to assist in the nearly $1 million, 7,500- square-foot expansion of the existing facility which would create 60 additional work spaces as well as expand the facility's break room and other office amenities. The MAGIC Fund screening committee approved the request, which provided $100,000 per year for five years as long as specific employment numbers were met each year. The company, which increased its Minot workforce from approximately 300 employees in 1998 to 425 by 2003, met or exceeded the job requirement all five years that were required under the agreement.
(Information provided by the Finance Department of the City Manager Office)
By all accounts, the announcement Wednesday by Choice Hotels International of its intent to close its call center in Minot within the year and transition to a home-based customer service business approach came as a shock to its 350 employees, who were advised by corporate officials not to speak to the media.
"We've been evaluating the situation for quite some time and looking at an array of options. We felt this is the best overall solution for the company, the best overall solution for the associates in Minot and the best overall solution for our franchisees," said David Peikin, the company's senior director of corporate communications. "I think it's important to emphasize that this is a deliberate, gradual transition that will occur over the next year as we move to home-based operations. We will still have a significant presence in the Minot community."
The company currently employs 50 home-based teleservice representatives in the Minot area, but officials refused to say how many of the 300 employees currently working at the call center would be part of the company's transition to home-based customer service operations, saying only that they hope to reach that figure through attrition.
Phyllis Burckhard, director of the call center, said several employees over the years have requested to work from home due to weather and traveled-related issues.
"Instead of driving in from Glenburn, for example, they can dial in right from home and it's made a significant difference for them," she said. "It also has provided us with an opportunity when there are storm days like on Christmas where the city was virtually shut down, the home-based setting provided us with people that could dial in and work right from home."
But with an indefinite closure date and an unknown number of home-based service positions available, some employees will undoubtedly be looking for other employment opportunities - but what's out there?
According to Minot ND Job Service, there were 400 jobs available in Ward County in December.
DJ McIntyre, manager of the Minot office, said unofficial figures indicate that roughly 45 positions were available in each of the office and administration, retail sales and hospitality sectors, while the remaining employment opportunities were in the food service, oilfield and other industries. She added that as spring approaches and oilfield activity increases, she expects to see a large number of jobs open up in the oilfield and construction industries as well as in the service sector, with jobs openings for commercial trucking and mechanics.
"The customer service skills they learned at Choice are broad and there are a lot of office-type settings that use the same skill sets," she said. "The question now is, is there opportunities using the skills they obtained at Choice to work in the current job market or do they want to choose a new career? Right now, it's important that they know we can help them look at their skills and see what transfers into a new job, or we can help them train for a new career."
Currently, McIntyre said the employees would qualify for dislocated worker status within the Workforce Investment Act, which channels federal funds to states that experience mass layoffs or when major corporations close, to help provide job training and other employment services.
With teleservice companies seemingly in a state of flux, what does that mean for Minot?
"It's the effect of what's going on on the national level in respect with the tourism and hospitality industry. They are affected by the economy, so these national firms are looking at better management opportunities through reorganization and consolidation," said Jerry Chavez, president of Minot Area Development Corporation. "Minot's future is bright ... we are insulated a little bit but not from some industries. We've been above the saturation point for some time now so we are balancing the workforce industries in Minot and we will look to the outside for help."
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concerned
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01-22-10 6:09 PM
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Well why didn't they address the issue back when we were outsourcing to a foreign country and where were our senators who hate outsourcing. Boo on them and the city. We need to seriously put the MAGIC Fund money to a vote, but then again I hope the lawsuit does prevail and lowers our taxes!
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Stacman
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01-22-10 1:56 PM
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I thought Obama said unemployment wouldn't go higher than 8%. I want my tax money back since none of his grand schemes are working. He would have known this if he had taken Econ 101.
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thoughts
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01-22-10 1:03 PM
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When Choice announced to it employees in November of 2009 that it was out-sourcing to a forgien country on a temp bases, but that their jobs were safe - They should have started looking then. I feel bad for them.
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BadWolf
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01-22-10 11:27 AM
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I have a bad feeling that ING and/or MLT will be the next to close shop.
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concerned
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01-22-10 10:02 AM
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They won't last a year! You better go find a job now! Also, we need to end this silly use of MAGIC Fund money or stop it all together. No it wasn't a shock like city people already knew I am sure, and don't act innocent. Who will want a $10 paying job with no benefits like at Choice? I am sorry be prepared to lose these people. And, don't rely on Warren Buffett helping you out.
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