Bruised by the downturn, builders turn to the fundamentals of the construction game.
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One of Gemcraft's goals is for the people it has hired as supervisors to have actually done the job of the people they are supervising. Offering the training demonstrates to employees that the company cares about their personal development. Builders who find that their shops are a revolving door need to start thinking about how they develop talent. If you can't afford a high-cost sales trainer, start by using your in-house people. Subs may also be available for construction seminars, and manufacturers are always available for product training sessions.
3 Put everyone in the company on an incentive program. The typical home building company will have incentive programs in place for its sales and construction staff. However, one of the best ways to breed loyalty is to offer some kind of quantifiable incentive for every job.
At Tim Schaeffer Communities, customer service people are rated on the average number of days service orders are left open; the number of items on the final walkthrough list; warranty dollars spent per home; how the customer rates the overall service experience; and whether the customer would recommend the company after 12 months.
The builder's estimating and purchasing employees are rated on how well they control variances; cost control from one quarter to the next; and maintaining margins. Administrative staffers are rated on how they score on customer satisfaction surveys; reports submitted on-time; and on-time accounting work.
Builders don't have to break the bank to offer these kinds of incentives. For employees who meet their goals, Tim Schaeffer starts off by paying a $50 bonus per closing up to $5,000. Money is always a great motivator, but the incentives are packaged in a way that clearly outlines the requirements of the job. For the most part, people react more positively if you clearly spell out what's expected of them.
4 Offer as much health care as possible. Health care is without question a builder's most expensive and important benefit. People will leave the job or opt not to take a job at your company based on the health care you offer. A lot of builders offer health care for employees, but not for their families. This is a mistake. Companies that find it difficult to offer full family coverage may ultimately have to dig deep and offer the benefit, but there are options. One possibility is to have employees pay an increased share for family coverage.
T.W. Lewis in the Phoenix area pays about 65 percent of family coverage and has the employee pick up the additional 35 percent. Another idea is to tailor the benefits to the needs of the employee. A person in his mid-30s is likely going to want and need a family plan, but such coverage may be less important to an empty-nester in his mid-50s with grown children.
5 Target future leaders. T.W. Lewis created a management development training program in which the builder pinpoints 20 employees as future company leaders. Employees selected for the program meet once a month for three hours on a leadership topic. Typically, course materials are handed out in advance and the employees are asked to make presentations. The presentations are then followed up by group discussions.
6 Organize team-building events. Don't underestimate the good will and sense of community you can develop by holding company picnics, trips to local amusement parks and sporting events, or simply hosting an open house at a model home. If you hold such an event at a model home, invite everyone, including the back-office and administrative staffs, salespeople, construction managers and supers, your subs and suppliers, and if possible, some recent home buyers who have been living in one of your new communities for a few months. - S. Zurier
