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Trouble in Paradise

8.6K views 48 replies 21 participants last post by  Mrmac204  
#1 ·
Hi all.

I'm a framing contractor in a red hot housing market. There's tonnes of work and not enough people to do it. Consequently, us framers are able to demand top dollar and this is very pleasant. The only problem is labor. There's a serious labor shortage. Everyone is hiring and offering good money. I cant hold on to a worker for more than a month until they wander off to the next jobsite and I have to settle for crappy workers simply because they showed up. I can't discipline any of my guys properly because they'll just tell me to f---k off and walk down the road. It's like " good morning Johnny, thanks so much for showing up bfore 10:00am. I reaallly appeciate it. Could you go nail together that wall pretty please with a cherry on top?" I'm finding that my inability to hold on to a solid well-trained crew is offsetting the potential to make really good money. Has anybody out there experienced this? Any advice? thanks in advance
 
#3 ·
Pretty common stuff if you're just average. Companies around here are constantly swiping employees with higher wages, more bennies, etc.

BTW, Where is paradise? I thought that I was close to it.:laughing:
 
#4 ·
It's brutal, I know.

My county has 3.1% total unemployment. .04% unemployment among people in my trade. I havn't figured out the secret to getting people in a market like this, except for paying more. The new $50 a week perfect attendance bonus is working very well so far. I have high hopes that it will continue.
 
#7 ·
"Paradise" is Edmonton, Alberta, Canada. It's Oil Country so you're competing with oilfield wages. kids fresh out of highschool with zero experience are wanting 16-17 bucks an hour and as soon as they have 1 year experience they want 20. I ususally just suck it up and pay them close to what they want but they always seem to just wander off. I think alot of the times they just sleep in( for a couple of days}and instead of showing up to work and facing the music they just go find another job. Very frustrating. Spanish huh? I've already learnt newfoundlander and quebecois so how hard could it be? If you know any send them up here but tell them to wear a warm sweater.
 
#9 ·
md and T-KAT, it's the same here too with the younger guys. That's why I hire older guys. The guy rolling out with me in the morning is 61 but he'll be bright-eyed and bushytailed in the AM. He want's to retire when he's 73, it's his goal.
 
#11 ·
A lot of them are highly skilled as well. They just don't move as fast but speed is not the end-all. Old dudes do it right the first time with less waste.

Go fast with a punchlist at the end or a bit slower and no punchlist? Older guys also cover each other and do minor repairs on the move.
 
#13 ·
I agree but if only I could find one. .
I'd sorta like to know how to reach that pool of candidates too. Perhaps I should cruise the morning breakfast spots. Seems like retired guys hang out there. Maybe a hunting supply store. Just thinking out loud here. I hesitate to use a "help wanted" ad, because it would be in too regularly. People see red flags when it looks like you're hiring all the time. (customer's and potential employees alike)
 
#16 ·
You guys ever consider the more people think they can't get in the more they want in? You might want to start thinking of your companies as private clubs with exclusive memberships instead of begging people to join you. Pay scale is always down about #6 or #7 in every single survery about what keeps people at a job.
 
#17 ·
You guys ever consider the more people think they can't get in the more they want in? You might want to start thinking of your companies as private clubs with exclusive memberships instead of begging people to join you. Pay scale is always down about #6 or #7 in every single survery about what keeps people at a job.
I'm all ears... keep talking.....

(how do I make this private club? What's number 1 and 2 on the list?)
 
#21 ·
You have to figure out what it takes to create this environment. You are fighting a losing battle if the only benefit you have to offer is compensation, especially since all your employees think they are under-paid no matter what you pay them!

Most Employees Are Not Underpaid - In fact of the 65 percent who say they are considering leaving their jobs, 57 percent say they believe they are underpaid. By checking its latest compensation data for those respondents, Salary.com found that less than 20 percent of those workers were actually underpaid. In fact, detailed analysis of the latest compensation data from Salary.com shows that some of them are actually overpaid, which may reflect the "over-titling" trend of the past several years.
You have to compensate fairly to attract an employee, but it is up to you to create the perceptions and the environment to retain them.

If your compensation was adequate to attract your new employee then he isn't leaving you because of it.

There is a disconnect in your company's enviroronment that is causing your employees to be dissatisfied with their job prospects with you.

Do some quick searches of the web about employee satisfaction and you will get lots of information, maybe something will click with you and help you make a small change that could make a big difference.
 
#22 ·
[Companies around here are constantly swiping employees with higher wages, more bennies, etc.


More Bennies? Nobody beats my eggs benedict buddy:laughing:

Mike, I dont really see what I could change. Most guys don't give a rat about benefits (we have free health care}. I run a framing crew like any other: we build houses all day and work hard. I'm not yelling at them all day or anything like that. I offer to pay for their schooling. I try to train guys in a positive manner and advance them as quickly as possible, teaching them to read plans and do layout etc. I honestly think they've just been spoiled by this economy.
 
#25 · (Edited)
Mike, I dont really see what I could change. Most guys don't give a rat about benefits (we have free health care}. I run a framing crew like any other: we build houses all day and work hard.
Just so you know, bennies and salary are one in the same, they are compensation. You just said it yourself - "guys don't give a rat about benefits (compensation)", exactly what I have been saying. Compensation just has to be in the ball park after that it is irrelevant. Do you really believe that guys are finding an never ending ladder of higher pay from one job to the next?

"I run a framing crew like any other". - That's part of the problem, like I've been saying. Your company is just like the next, and the next and the next, to your employees it's the same job just different name on the paycheck and different surroundings, but nothing different from working for you as working for the next guy, might as well swing on down the road and see what the next guy has to offer. If your company is nothing more than average you are going to get all the problems that come with average and none of the benefits that come with being superior. That's just the way it is, average is what average gets.

Reread what I said and you can do some simple research using google, the answers are out there for you if you have enough self-motivation to find them, if not it's just going to be a revolving door.

On one more note - do you think that every single construction company is experiencing exactly what you are or are their various degrees of it and even some companies you might know of personally that don't have the problems to the degree you are having? If you think about it, that's all the evidence you need that there is more to it then compensation.

Good luck, hope you find some easy solutions.
 
#23 ·
T-KAT - The GC I work for is having the same exact problem. I understand exactly where you are coming from. It's funny, because just today him and I were talking about what would happen if several contractors who are all in the same boat pulled together to tackle jobs. This is considering pulling together enough experience and talent and resources to get the jobs done in a timely manner. Would there be less stress? How much would it effect the profit if they were all able to consistently take on more jobs.... just talk we were throwing around today. You are not alone - and what MD said is exactly what my GC says "knowing what the business can become with the proper employees is what is so frustrating"
 
#26 ·
do you think that every single construction company is experiencing exactly what you are or are their various degrees of it and even some companies you might know of personally that don't have the problems to the degree you are having?

As a matter of fact, everyone I know IS experiencing the same problem. The turn-around rate is ridiculous. It's not like I'm totally without labor. I do have a couple good solid guys that have been with me for a while, but I could easily quadruple my number of employees right now and have non-stop work for them. The name of the game right now is man-power. period.

I will research some employee incentives though,thanx
 
#27 ·
T-Kat,from what I understand is right.They are just screaming for tradesmen out there in Edmonton.I almost moved out in the spring and spent quite a bit of time talking to other people who have moved there and contractors who are there.Everyone is saying the same thing,busy ,busy,busy.None stop.I just read an article the other day that there was about 2200 people from Nova Scotia who has left here to go west,thats alot of people for a small province.Definetly a boom going on there.I still may come out that way if work doesnt soon pick up for me here.
T-Kat,Im quite sure it isnt you or your company.I dont know you so i could be wrong(kidding) More then likely these guys that are coming and going have the mentality of getting that perfect job and they will continue to come and go for that reason.Maybe they are leaving for better money or maybe they are just lazy and looking for easier work.Who knows for sure.Anyway,just my 2 cents worth.Later Steve

On another note.Tim Hortons in Canmore are hiring,$11.50 an hour to start:rolleyes: Empoyees here get like 7.15 and wont get much more then that after a few years.
 
#28 ·
Teetorbilt, you questioned having to cater lunches. I've been doing that for 15 years. I bring in lunch for all my guys, sure it costs a little but...

No time wasted packing up the tools and getting them out again so they won't get stolen.

Employees don't get lost at lunch.

Everyone is on the job at starting time after lunch.

Nobody has a beer to many at lunch.

Becuase it serves a business purpose, the cost of supplying lunch is fully deductible.
 
#29 · (Edited)
That's a perfect example of increasing the value of your work environment for your employees, not only do Thom's employees get something that other crews don't but Thom understands it's actually beneficial for him.

The other companies in his area I'm sure would just say "I ain't buying lunch for a bunch of scum bags, let em buy their own lunch!" Meanwhile Thom is enjoying the benefits that out weigh the costs of lunch and laughing all the way to the bank, meanwhile the other companies keep bitching about the revolving door.
 
#33 ·
Mike Finley apparently hasn't been to Alberta.

No matter what you do here you can't get good people, and you can't get people to stick around. You could carry them around on your back all day and spoon feed them, but they'd still jump ship because they always think the grass is greener on the other side.

I don't think you're experiencing a boom like this in colorado.

Once you have been up here and seen what the labor market is like, then maybe you can provide some sort of advice...
 
#35 · (Edited)
Once you have been up here and seen what the labor market is like, then maybe you can provide some sort of advice...
Don't try to apply specific advice broadly and you won't be so confused by what I say.

A man being paid $20 an hour in your field leaving you for a job paying $30 in another field is not the situation I was discussing, nor the original situation being discussed, you're now talking apples and oranges. Very little of what I said would help you with that situation, whether you are in Alberta, Iowa or Colorado.

The situation being discussed and I replied to is about labor moving within the same field. Roofers moving to other roofing jobs, framers moving to other framing positions, carpenters moving quiting for anothe carpenter crew, a paper boy moving to another paper boy job, a Wendy's worker moving to a McDonald's job.

The following still applies, it doesn't apply to somebody making what amounts to a career change in work. A mechanic taking his tools and moving from one auto repair shop to the next auto repair shop is not the same situation as a mechanic quiting doing auto repair work and taking a job as a fisherman for a bunch more pay.

You have to compensate fairly to attract an employee, but it is up to you to create the perceptions and the environment to retain them.

If your compensation was adequate to attract your new employee then he isn't leaving you because of it.
 
#34 ·
As I face this every day...every day, starting off 2 guys or 3 guys short, and not firing these loosers since we just can't replace them.....Unless you have been in this position, you have no idea what it is like. Oil field jobs paying $13.50 up to $23 depending on a guy's willingness to SHOW UP is killing the labor pool. My lead guy quit $16 plus just to try out a drilling rig starting at $20....now where exactly, do I find a replacement? I train one....if I can find anyone interested in the trade, that will show up, and wants to learn, yad yada yada....

The bottom line about hiring help is that 99% of the time, if a guy is worth hiring, he isn't looking for a job, he already has one.
 
#38 ·
Fair enough.

I just don't like to think that things are so black and white...

I'm sure there is alot more than wages and benefits that companies could be doing to try to retain quality employees.

Other than the exclusive club idea, what else would you do differently?
You're willing to say we're not doing it right up here, so how should we do it?
 
#40 ·
You're willing to say we're not doing it right up here, so how should we do it?
:laughing: You're f'n hilarious.

Must be that Canadian exchange rate again.