If you think it's expensive to employ good people, consider the cost of losing them: the clients who go with them; the time spent finding, training, and cleaning up after their replacements; the jobs that fall behind; the opportunities that are missed; the burden that falls on the remaining employees; the morale that drops. And that's just for starters. “It's hard enough to find qualified employees who can do the work” of remodeling, says Mike Denker, co-founder and president of Hopkins & Porter Construction, Potomac, Md. “Even fewer people can do the work and communicate effectively. Remodeling needs people who care about other people,” he says. “And once you find these people and train them in your way of doing things, you want to keep them.”
How? Compensate them well, of course, but several people told us they've turned down higher-paying offers in order to stay put. One remodeler who knows this is Randy Foster, president of The Artisans Group, Olympia, Wash. “I can't be clear enough in my own mind that the money isn't what it's about,” he says. “It's more about the whole package of creating an environment where people feel they can succeed, and then letting them take responsibility for their success.”
Here are some ways to create that environment.
Doug Horgan
Customer Service Manager
Bowa Builders, McLean, Va.
Hired: 1989. Age: 38
At Bowa Builders, “anything you're any good at, they'll let you do,” Doug Horgan says. In 1989, he had just graduated from college and took what he thought would be a summer job. On day one, he put his philosophy degree to work digging holes. A few days later, he says “I realized that I absolutely loved building, in part because there's so much to learn. I'm really motivated by learning.”
And because Bowa is all for education, Horgan's “summer job” never ended. He quickly gained on-the-job experience in framing, trim, drywall, roofing, and the trades. Within a year or so, the company was sending him to trade shows locally, then nationally, then to take certification classes. He later moved into management, where he continues to learn through a variety of formal and informal training opportunities.
“We try to invest in everyone's career,” says Josh Baker, president and co-founder of the $38 million company. For instance, Bowa is open-book about everything except individual compensation, and each of its 85 employees creates quarterly personal goals. It's all part of a strategic plan, Baker explains, “to help them become more valuable to the company, and also to get them interested in new parts of the business.”
Culture also looms large at Bowa, and Horgan appreciates that this big company is still very personal. Co-founder Larry Weinberg hosts weekly jobsite lunches for field crews, and everyone attends quarterly companywide meetings. All share in Bowa's success as well; among other generous benefits, a profit-sharing plan divvies up a fifth of annual profits among all staff members.
Paul O'Brien
Finish Carpenter
Out of the Woods Construction, Arlington, Mass. Hired: 1993. Age: 53
Relationships settle into a groove over time, and Greg Antonioli and Paul O'Brien largely keep each other at a respectful distance. “We're like a father and son who don't talk a lot but have an appreciation for each other,” says Antonioli, president, who is 12 years younger than O'Brien.
That hands-off approach suits O'Brien fine. He has no desire to be top dog or even lead carpenter. “I like to work with wood,” he says simply. Not being bogged down by paperwork frees him to exercise creative license, which ensures quality craftsmanship, interesting projects, and great relationships with clients, many of whom he considers friends.
Having worked for himself through the recession of the early '90s, O'Brien also appreciates his job security. Antonioli says he has never had layoffs — or even sent anyone home early — due to lack of work. “If someone commits to us, then we're committed to providing them with steady work, year-round,” he explains. Employees get generous benefits from day one, including 100% health and dental coverage, quarterly bonuses, and 19 paid days off (more with time), including holidays, personal days, and vacation.
“It's the most rewarding company,” O'Brien says. “Greg even gave me a trip for my 10-year anniversary” — an all-expenses-paid ski trip that came as a complete surprise. “It pays to stay put and take your licks a bit,” he says. For instance, the relatively new open-book policy “helps us all see what we have to do each quarter, and everybody strives for it,” he says.