The Master Builders Association distributes copies of the magazine at home shows throughout the year. Hjelm also invites subcontractors to lunch and gives the magazine to them.
Besides the tour and the magazine, Hjelm does not spend a lot of time on marketing. “I concentrate on what is in front of me: being honest, treating customers with respect, and making them happy,” he says.
He advises young remodelers to respond to service and maintenance calls, even several years after a project has been completed. “The client is expecting an invoice, so send them one that says ‘No charge. Thank you again for your trust and confidence.’ That is spending money where it matters.”
REWARDING WORK When searching for new employees, Hjelm prefers the same non-marketing practices that he employs with clients. “When you recruit, you are almost committed to those employees,” Hjelm says. “I want people to want to work for us. We are always looking for the right person.”
Three years ago, Hjelm searched for and hired 14 people over the course of one year but did not keep any of them as employees. “None of them fit our culture,” he says.
Phase II offers 100% health insurance coverage for employees and their families with an employee payment of $17 per paycheck. Employees can save for retirement with a SIMPLE plan in which Phase II matches their contribution up to 3% of their gross salary. Hjelm also reimburses dental care and mileage. One benefit he does not offer is vacation pay: He told his employees how much money he had for benefits and they chose full medical insurance for their families versus vacation pay.
Hjelm stresses the importance of including employees in company decisions. Last year, he asked his employees to create a “mints on the pillow” experience for customers. He empowered them to make decisions on the jobsite to create this feeling. “I have guys who will stay an extra hour just to make sure the jobsite is clean,” he says.
He also teaches them never to make excuses for mistakes. “If they say, ‘It is my fault, and I will take care of it,’ there is nothing left for the client to say,” Hjelm says, citing a promotion for a local Mercedes dealer who tells customers, “Don’t evaluate us by how we treat you when everything is good. Watch how we take care of you when we make a mistake.”
Phase II General Contractors is housed in a 5,000-square-foot building with an office, a staging area, and a 1,600-square-foot wood shop. When setting up the shop, Hjelm gave each employee a floor plan and a list of equipment and had a contest to see who came up with the best design. He used ideas from several plans, so he decided to give all his employees gift cards.
This year, he is chartering a bus to take employees and major subcontractors and their spouses — to a hot springs area in Canada for a three-day event that includes his company’s annual meeting. “I just felt it was time to say ‘thank you.’ It also helps for the subcontractors to meet one another,” Hjelm says.
His major subcontractors, many of whom have been working with him for 20 years or more, have a key to an upper office and restroom in Phase II’s building. He invites them to this room to do take-offs from one set of plans so he does not have to print several copies to send to each subcontractor. They are also welcome to use the room to rest, catch up on paperwork between jobs, or meet with clients.