I have asked several audiences what the most valuable assets was in their construction company. People think and come up with all sorts of answers like equipment, inventory, etc. However, when pressed almost all will confess that their most valuable asset is employees. What I would like to discuss is your great employees. Which ones are these?
· Arrive early, leave late when it is necessary
· Take initiative and solve their own problems
· Highly productive
· Motivate others
· Have a real concern that the job is done right and on budget
It is easy to spot the seasoned contractor that recognizes the value of employees and works diligently to get and keep them. When we ask we are told about how many employees who have been around for years. When we ask how they spend their work week they tell us of all the work they do finding new employees. A lot of business people shy away from hiring. Get over this!! Great employees make a great construction company.
What is the Secret?
How do these seasoned veterans get these great ones? Lots of work finding them and high expectations! The work is in the hiring. Those who value great employees are constantly on the lookout for additions to the workforce. Many will find something for a great one even if it costs a little extra to do so.
Finding Candidates
We have found that great companies go thru quite a process to find new employees doing things like:
· Post job openings on Internet
· Advertise in Trade Journals
· Hobnob at builder events and meet potential candidate
· Incorporate Employment Opportunities on their websites
· Have an employee who handles job inquiries
Once found, these candidates need to be vetted (popular new word). Our problem as employers is that we have limited resources to find out who the candidate is and what baggage they are bringing with them. The actual hiring of a new employee is one of the riskiest things a contractor does!
Checking Backgrounds
There are several things that should be done to minimize the risk of hiring the Employee from Hell.
· Call the last 2 or 3 employers. Checking with only the last one will rarely get that frank opinion you are looking for.
· If education, licenses, and/or special training are requires, check these out! Very few applicants are totally honest with things like these.
· Criminal Background Check - Check out Alpha Background Investigations at http://www.alphabackground.com/. This service is used by Robert Half and is reasonably priced.
Interviewing/
This can be time consuming for a busy manager. Narrow the candidate down to 5 or less based on resume or references from people you know and trust. Then, schedule interviews with the appropriate people in your organization. There could be more than one person that needs to talk with your candidate. Here are some items to consider for the interview.
· Ask open-end questions that cannot be answered Yes or No. It is important to hear how your candidate answers.
· Ask why they want to work for your company. This will tell you if they have done their homework and understand what and who you are.
· Ask about their career plans. You are trying to get a sense of how long they will be with you.
· Ask about salary requirements and enjoy the ones who will negotiate with you rather than simply take what you have to offer. This will serve you well when they deal with your subs and suppliers down the line.
Salary Offer
Seasoned contractors always have their ear to the ground with regard to prevailing salaries in the area. We think you should pay the current rate. However, we strongly recommend a probationary period of 3 months where the candidate is paid at 80% of the going rate. At the end the rate goes to 100% with a bonus of the 20% withheld for the first 3 months. If the employee does not measure up, or we find information that contradicts information on the resume, the 20% is retained and we part ways. Look for your candidate to negotiate. If they negotiate with you, they will negotiate with subs and suppliers!
High Expectations
Once you hire great employees you need to keep them motivated. Do this with planning and communicating schedule, labor, and quality expectations before the project begins. “This job is to be completed by May 15 (90 days), using this schedule of hours (by task), with no more than the usual number of callbacks from the client.” Then you need to tabulate and communicate the results!! We suggest you do this weekly for crews and project managers.
