Trying To Expand Finding Very Hard To Make It Work

plazaman

At this point now, I feel I need to expand my business. I need to have more crews on the road.

I have 4 full time employees, dad and me

Me & dad drive, and 1 other employee, others don’t


I am having a very difficult time putting it all together. I have 3 vehicles that could be on road everyday, and a 4th I really really need to have it.

Leads are there, i hardly advertise. I just need more crews, quality employees, no illegals.


It seems that everyone that drives and knows some work goes out on their own, working for cheap HO who don’t want to hire a professional.

A few of my Former employees have done this and I think a few of my current are soon on their way once they have a car.

1 obvious solution would be to pay better, but how can I? I do need to make a profit also. I think my labor rate is fair.




How do you guys keep employees from leaving or looking for outside work? How do you guys with multiple crews on the road manage it?

Right now, myself or my dad always has a crew. We cannot find someone trustworthy enough to send out on jobs. All the good guys are working for themselves. These guys aren’t necessarily direct competition, they usually take jobs we would normally refuse.

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ruskent

If you want top guys, you need to pay top rate. Paying 'fair' will not get you the top guys.

My main guy is proably one of the top payed guys in all of New Jersey for what he does. I have never met another company who payed their guy what i pay mine. But i have ZERO employee proablems. Zero.

Pearce Services

Start by raising your pricing, this may allow you to keep up with the work with less guys, and if you continue to keep busy, now you can afford to pay more for the right help.

dirt diggler

then you haven't had employees long enough ...

plazaman

if you dont mind me asking, how much do you pay him and what's his role?

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Mike Finley

You guys hit on the secret like ruskent said. It's a combination of financial incentive and the environment you create that rewards your employees in ways other than financial.

Of course the problem most companies run into is they can't figure out how to be able to pay their guys enough because they themselves haven't figure out how to build enough value in their services to get the high rates required to pay well. It's kind of a catch 22, but it's never going to change. Everybody has to fix the internal problems before you can fix the labor problems.

A.W.Davis

I think the trick is to recognize talent at an early "developmental" stage and train the employee to do things the way you want your business to be ran. As they learn and progress, pay them what they deserve and always take care of them.




just my 2 cents

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MattCoops

You don't necessarily have to lose your shirt paying employee wages.
You can treat them well, and show them you value their work.

Paid lunches, weekend barbeque's, bonuses or rewards for getting the job done earlier than expected.

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plazaman

[QUOTE=A.W.Davis;263518]I think the trick is to recognize talent at an early "developmental" stage and train the employee to do things the way you want your business to be ran. As they learn and progress, pay them what they deserve and always take care of them.


Its like that now, i train how i want things to be ran with decent pay. But there is a point where i cannot pay as much.

The work they target, is the leads that just doesnt pay for me a contractor to take. They look at it this way, if they are making 100 per day and work 5 days a week. They can take these jobs and make 500 2-3 days vs all week. It usally HO who cant afford to hire a pro and at the same time employees arent willing to work for their hourly.

Lunch is provided often, no bbq's, but i did start to hand bonuses for jobs completed early.

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myshtern

If you hire people that cant speak english they wont be able to undercut you

plazaman

good point

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plazaman

work load is very very heavy right now... i still need more help!

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Second Look

So you're in the New York metro area and you're paying $12.50 an hour? It's amazing you have any employees at all.

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realpurty2

Ok, I swear I do not mean to sound rude or arrogant here, but I have to ask this in order to offer a suggestion. If your current guys don't even have a car to drive, and would go out on their own if they did have a vehicle to do it in... what type of guys are you hiring?? Pay scales aside here... your company is only as good as your crew. If you want top notch work that satisfies top notch clients, you have to have top notch employees. I know it sounds judgmental, but it's something to consider.


If you have a quality crew, you can pay higher rates because the work gets done faster and with less mistakes. When you truly are a professional company, you can bill higher as well. ( I'm not saying that you aren't, just using the example of the difference between the rates of a licensed company vs joe blow handyman)

Ask them! Have a company meeting, explain the goals you want to accomplish, and ask your guys what changes they would like to see made. You have to build loyalty, and it takes a while to accomplish, but it's well worth it. Establish some company incentives and training programs for the ones who want to stay with you so that they can obtain the knowledge they need to become crew leaders, and eventually foremen and superintendents. All while building your trust in them at the same time. Give bonuses for jobs completed under budget. Ask the guys what benefits they would like to see the company offer. Direct Deposit, Insurance, 401k, Paid Days Off, a choice in the work hours (8hr days vs 4 -10's ) etc. You'd be surprised at the low cost incentives that are available to small businesses.

It doesn't happen overnight. It takes a long time to get a trustworthy loyal crew leader who will make sure the jobs are running exactly as you would want them to. Take your best guy and train him or hire someone with experience, then start them out small. Make project books for every job that details the objectives, and delegate authority. Stay on-site but out of the main stream and watch how they do until you are comfortable leaving them unattended. Then repeat with as many crews as you want running. The main thing is never turn a crew loose until you are 100% comfortable that they are representing your company in the manner you want. Above all else.... Plan before you act.

Where are you looking? How are you doing your recruiting? What's the interview process like at your company? You have to be the one who has something to offer and a reason someone wants to work for you, not the desperate guy who will hire anyone who applies just because you need help. Screen the applicants and hand pick the ones you want. Grow the crews around the applicants, not the other way around.

I could go on and on but this is getting too long as it is.. lol

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Stone Mountain

$100 a day? I expect a 2 man crew with a truck to earn $400 to $500 a day for themselves, as subcontractors. My foreman earns $20/hr, plus a truck and medical. Plus a little $ now and then.
My bookkeeper charges us $35/hr for an 8 hour day.
My student receptionist gets $11/hr, and my delivery driver gets $13.00
You want good men, you pay them. Simple.
Build this labour cost into your price. If you are any good, you'll get it.

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WOODPECKER LLC

In my part of the US it is very rare to receive any benefits as a carpenter .After 4 years in business I can't afford it for myself much less employees .12 dollars an hour is what experienced helpers make here (at least that's what I pay).Isn't the cost of living almost twice as much there as here ?

George Z

Like he said!

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toddcla2002

There's not point to expanding a business that isn't already profitable. I would sit and make changes until I am at least at a net profit of 20% before I start expanding. If you need to better calculate your overhead try www.yourcostcenter.com. You will be surprised how much you are undercharging in order to run a profitable business.

~todd

Celtic

You have 2 choices here:
A) Raise your rates and possibly take less jobs, while paying your guys a higher rate and/or take some, if not all the work, and goto 5/12's, 6/10's ~ whatever it takes and whatever the guys are willing to work WHILE upping their hourly.

B) Continue as you are...with the headaches it incurs

Just my opinion.

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Brian

In my opinion, based on my experience, if you want better employees you must first be a better employer.

Brian Phillips

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