Labor Shortages Don’t Have to Mean Trouble for Restorers
Recently, Bloomberg published an article discussing what record-low unemployment looks like in America and what impact it's having on businesses big and small.
Boy, did it ring bells with me.
The article pointed out the difficulties many business owners are now facing in hiring and retaining employees, and went on to illustrate some of the inventive hiring choices that sometimes result in this situation. But in the restoration industry, you can't cut corners on hiring. While some industries can look to hire people with difficult pasts, all of our employees have to pass background checks. In our industry, the current labor market climate presents some real challenges.
So how do we rise to the occasion? Here are the things we are doing to improve the situation and make us more competitive in the labor market:
1. Focus on Culture
We pay close attention to our employee Net Promoter Score (eNPS) to make sure our employees are happy and engaged. We measure it regularly, and we work hard to build loyalty and trust in our company. We do everything we can to value and build our people, recognize their contribution to our business, and invest in their success. And it seems to be working. Last week we found out that an employee had been offered 41 percent more to go work for another company, but decided to stay. That kind of commitment and loyalty is incredibly humbling.
Building a good culture, like a good marriage, takes work. It requires good communication and even better listening. People need to know that they "are seen," that their effort and work are noticed, and that they are appreciated and supported.
2. Find Talent in Unexpected Places
In the current market, it’s important that we not be limited to the usual or traditional job candidates. We have started training people outside of our industry who have made a big impact, including an estimator who joined our team in January without any experience in estimating. He has been a quick study and been a fantastic addition for us, with his incredible attention to detail. His training and experience in the industry was limited, but his work ethic and fastidious nature made him an ideal candidate to train and coach. In many cases, character can be a substitute for experience and can yield great additions to a team.
3. Refine Your Onboarding Process
In the last quarter, we have been specifically working on improving our onboarding program to simplify and standardize it. The truth is that in this labor market, you are going to get turnover, so we tried to think about how to minimize the expense and time involved in our training. How fast could we get a new employee up and operating with all the essentials? How could we streamline the process and ensure that nothing gets overlooked? We created a series of onboarding videos that teach the fundamentals to make sure every employee is on the same page regarding our company culture, philosophy and expectations, before getting turned over to their department for specific role-related training.
4. Support Ongoing Development
Giving your people an opportunity to grow and progress is key to retaining employees. In addition to the standard industry training, we have made big investments in additional training and development so our team can continue to progress and learn.
These include a flood house, which we flood with a garden hose to initially train new employees and provide ongoing training for experienced techs. We participate in Xactimate training, where our estimators take part in a monthly webinar to learn tips and tools for improvement from other estimators in the industry. Our sales team has had training in overcoming objections, and we set up courses for our administrative department, where we pay a yearly fee so they can attend an unlimited number of classes on communication, leadership and hundreds of other topics.
All of these resources allow us to invest in our people. We care about their individual development. We work hard to provide a career path for water techs to move to junior superintendents and new superintendents to become large-loss experts. We provide ongoing coaching and 45-day plans where everyone sits down with their managers to identify opportunities for growth, choose their key initiatives and select an accountability partner to report to. We even have a book club that everyone in the company can participate in.
5. Use Your Network
Your own people are your best advertisement. Create an initiative to get employees to refer people who they think would be a great fit for your company. We are always looking for good potential people who are friends of friends or friends and family of our current employees. We also reach out to our industry contacts, especially carriers, to ask if they know any contractors who are unhappy and looking to make a change.
6. Sell Your Company
Sell your company during the interview process. What sets you apart? From the way someone is greeted, to the décor and atmosphere of the office, to the unique opportunities your company has to offer — it all makes a difference to a potential employee. Share your culture, core values and purpose. Talk about your commitment to their engagement and their opportunities for growth in your company.
7. Offer Creative Benefits Packages
This is really the icing on the cake. It’s where all your talk of really valuing your people becomes your walk. In addition to providing a 401(k), we pay 100 percent of employee health insurance. We also pay for unlimited vacation days. And it works. Because we hire the type of people who appreciate that but don’t abuse it. We believe that in this industry, a healthy work/life balance is critical to longevity and retention. It’s important to balance the stress and the 24/7 nature of our business with adequate time to decompress and connect with the people and things that are most important.
So what’s the takeaway? Challenges provide opportunity. The current labor market has further encouraged us to get really serious about our people. The improvements we have made to recruiting, onboarding, training and retention has raised our game significantly and made us a better company. Better companies create a better industry. And strong industries attract the best talent. The effort and changes we collectively make today affect our talent pool tomorrow. So let’s get to work; we only want the best!