It is the challenge of every service business to attract, train, manage and retain high quality staff. For some industries, like remodeling, it can mark the difference between success and failure for a company. Our key employees and trade contractors not only determine our capacity to get work done, but they also have a tremendous impact on the quality of the work we do and overall experience that the customer received. Having a first-class, “A”-rated team is important at any time for a remodeling company.
But today, it is even more critical and at the same time more of a challenge. COVID and demand in the industry is resulting in more and more remodeling companies outselling their current capacity to build, with no end in sight. All the while, a wide array of statistics show that turnover, including voluntary turnover is very high, and this is further aggravated by many having taken themselves out of the workforce – at least for some time – and the continued lack of training in the trades. It is by all measures a “perfect storm” for our industry.
So this leaves many remodeling companies with some important questions:
· How do you attract the best talent?
· If you can’t find good, should you hire mediocre?
· Should you overpay to attract new hires?
· What can you do to improve employee retention?
· Should you tolerate an under-performing employee just to keep that person employed?
· How do we maintain schedules and quality if the team is under-performing?
· Can we be an “A” company with “B” players?
First, let’s be clear. You cannot maintain an “A”-level operation with “B” players in the long-term. When business owners look at their 3 to 5 year plans and their 3 to 5 year org charts (which everyone should have) they should be able to clearly delineate between the “A” players and any others. Those that are not in the top category must either improve or be replaced as the organization moves forward.
Let’s be clear. You cannot maintain an “A”-level operation with “B” players in the long-term.
These are some strategies that successful remodeling companies are implementing for the short-term to navigate the challenges I have described:
1. Always Be Recruiting
We would never wait until our last job was done to start marketing for the next. However, this is how many companies treat hiring. Companies should have a continual recruiting effort which includes their website, social media, employee referrals and industry contacts. You might have to adjust your plans and timing when that “A” player becomes available.
2. Invest in Retention Strategies/Programs
Retention is very challenging, but there are proven practices to improve retention. Use incentive programs and benefit programs to encourage employees to stay with the company. Look at industry practices and have conversations with other company owners to see what is working for them. Most importantly, if you put something in place, make it stick. Make sure that team members see the benefit.
3. Maintain a Good Work-Life Balance for the Team
One of the biggest factors in remodeling company employees leaving a company and going to another is the lack of work-life balance. Lots of companies are paying well, offering benefits and have plenty of work. In so many situations, the overabundance of work is leading to long hours, constant pressure, jobs being rushed into production and an overall frustrating situation. Companies need to manage workloads, schedule carefully, and measure the stress level in the organization frequently. The best employees have options and too much work, frustration and pressure can make another position look very attractive.
4. Practice Real Accountability
Do not adjust your standards to a lower quality of work. Instead, be very clear on what good performance looks like in each position and make sure each member of the team understands what is a “win” for him or her. Set goals for each job, each month together with clear, measurable milestones. The absence of standards does not create harmony in the workplace. In fact, ambiguity and miscommunication are some of the biggest drivers of staff frustration and job dissatisfaction. Be clear. Celebrate wins. And address losses with training and coaching.
5. Frequent Communication and Quick Corrections
When performance is not at the level it should be, communications with a manager or leader and the team member should be frequent and quick. Sometimes, in the interest of avoiding conflict, issues are allowed to fester and grow to be a bigger problem than they should. It can also be misleading to a team member who thinks their work is good, only to find out there and a number of areas where they are off track.
6. Better Processes
One way to lower employee frustration, improve performance and gain consistency is continual process improvement. Good processes have clear steps, defined roles, good documentation and they make it harder for an employee to under-perform. This is just the right time for all companies to be looking at improving their standard processes in order to get better performance from the team. Lean is an excellent framework to introduce to a remodeling company as it can be done in stages and engages employees from the start.
As a consultant to the remodeling industry, I get to see every day how these strategies can make a huge impact and help business owners navigate these challenging times.
Like any good sailor, business owners right now must adjust to the prevailing winds. They need to understand and respond to current conditions that can put the whole trip in jeopardy. And yet, they must continually focus on keeping the ship intact, avoiding taking on too much water and getting the ship back on course as soon as possible. This is the long-term play, and right now it is the challenge of most every remodeling company owner.
