Back to Basics: Labor

What’s missing in many cleaning contractors’ human resources plans

/DECK--> Last issue, we began a series identifying four “Corner-stones of Profitability”: equipment, chemicals and supplies; labor and human resources; marketing/sales; and finance/administration. This installment regarding labor also happens to compliment the previous issue’s cover story about waging the battle against high turnover in the industry.
A couple of points in the cover story were disheartening. First, some 14 percent of BSCs surveyed actually responded that they did not provide management training. Like other industry executives asked to comment on these findings, I was disappointed at how this reflects on our industry.

More light bulbs went off in my head when I read that “on-site demos” came up as a single training plan; that only 38 percent of managers and supervisors receive regulatory training; and that a significant majority, 57 percent of all surveyed, do nothing to train managers on how to train others. These staggering statistics all point to the lack of a comprehensive labor plan for many BSCs.

Employee assessment
Such a plan begins with an analysis of each person you now have employed within your company. Start with yourself and work your way through your organization.

What skills does each individual possess? What are their strengths and weaknesses? Some key areas to assess are communication, leadership, creativity, technical knowledge, and the ability and willingness to learn. Given the right resources to develop, what is the opportunity for growth, both personal and business-related?

There also are threats, but stay focused on what attributes affect employees’ ability to help your company grow and prosper. One area I call the “positive threat” is that certain workers have talents that, if properly developed, could indicate ability far beyond their present position in your firm. Failure to recognize these abilities, or worse, failure to provide an environment for employees to develop their talents, ultimately will force star workers to go elsewhere.

Next, develop a list of abilities, interests and areas of expertise for your whole organization. Are there obvious skills and abilities missing from your company’s list?

Skills missing from senior management but available in line employees offer exciting opportunities to enhance teams or promote from within. Skills held only within senior management, yet absent from the direct work force will lead to a “we/they” attitude and may lead to high employee turnover rates. Abilities you recognize as missing from both groups point toward a clear hiring need. Alternatively, if you find skills in both workers and management, you can apply those for future profit.

Your place in the market
Next assess your current customer base alongside you marketing and sales plan for future business.

First, look at your current customer facilities and the labor needed to complete each job. Don’t only look at labor in an “hours-needed” or “bodies-needed” basis. Look at your customer accounts to document the skills needed to complete a job. Then look at the hours/bodies that you placed at the account. Do these two lists match up? Often, because of timing issues and inconsistent hiring practices, contractors actually “overspend” with employees who may be overqualified for a particular account.

It is one thing to place additional skills at a new account to whip it into shape or to ensure a successful start. It is another to place whatever labor is available without consideration for the workers’ advanced skills or range of abilities.

Next, review your marketing and sales plan. What is your revenue goal for next year? For the next three years? If you have prepared a comprehensive marketing and sales plan, then you have identified your current account strengths and potential growth, both geographically and in service offerings. This is the time to review your labor skill list again to see if you have the right skills lined up to fulfill projected needs.

Pump up your labor
Then you must ask what you are doing today to enhance the skills of your current labor force? Again, if we go back to last issue’s cover story, we can see that there are many quality companies offering training programs and skill development for managers, supervisors and employees. There also are a number of innovative recruitment techniques companies are using to bring in better talent.

Studies indicate that employees find personal recognition more motivational than money. Take a closer look at what motivates your employees. Then follow three tips for motivating through rewards:

• First, match the reward to the person; reinforcing behavior by using rewards that have real meaning to the people receiving them. Whenever possible have the employees tell you what would motivate them.
  
  
• Next, match the reward to the achievement. If an employee significantly impacts your business in a positive way, let them know with an award that is as significant. It is worrisome to see employers penny pinch on awards when the employee sell a major account, saves a failing account or dramatically holds down costs.
  
  
• Finally, be timely, specific and public. It will have a ripple effect on all other employees. Everyone in your organization should be aware that you recognize positive behaviors or achievements quickly, publicly and appropriately.