For the last few months, I’ve made the case that the lack of skilled labor is a significant problem throughout the industry. Meanwhile, we are facing a tidal wave of work. At least that’s the situation here in Southern California and in other areas I’m familiar with throughout the nation; hence, one of the main reasons for the title for this article “The Ugly Side of Beautiful.” The problem with more is indeed a very real problem, so what we need is a very real solution.
When it comes to solving your manpower problems, I began by telling you what not to do. You must resist the kneejerk reaction to respond to the problem by throwing money at it. If you’re going to spend money, you better be as sure as possible that it’s a worthwhile investment. I warned you of the futile stupidity of simply throwing money at the problem as though somehow you could just buy your way out of it. Even if you have the money to spend, why spend it on something stupid? I gave you an example of what not to do: “Don’t turn this into a bidding war with your competition and surrender control of labor pricing to the workforce.”
Let me take a few moments and explain what I mean by the quote italicized above. The failure to heed that warning has two significant flaws. First, don’t fall for the fool-hearted notion that you can buy your way out of this by simply paying more than a competitor. Second is the warning against focusing on a tug-of-war for what little labor that currently exists. What’s so wrong with that notion? The answer is simple and should be obvious to any clear thinking individual. Doing so has its own built-in downside, fueling and exacerbating the problem. You can do so, if you wish, and you will have increase labor rates at times, but you need a much better plan than that. What you need is a cure, not a Band-Aid for this colossal problem, and bidding up labor simply isn’t it. If you bribe them in, someone else will bribe them out and then what will you do, bribe them back again? Meanwhile, how are you going to pass those costs on, anticipate them or bid them in? How long are you willing to chase profitability?
Blood in the Water
There is blood in the water and labor already knows it. Like sharks they are already circling around our businesses. Just last week I had a crew leader of 12 men who came into our office. The crew leader and his crew were working for a competitor but were interested in working for us and wanted to know what we had to offer. They knew we needed help. We did need help, badly—but not theirs.
They assured me that if I was willing to pay more than their current employer, they would drop everything and come to work for us. We talked for a bit and I sent them back to the competitor. After all, do we really need help like that? I don’t think so.
It’s understandable. Times have been rough and they want to make the most they can. But they won’t make good employees. They are always going to be in search of greener grass—no loyalty to anyone, just looking for the best offer. Gypsies, tramps and thieves, but not good employees! The very best thing I can do for our business is put them to work for a competitor. They may be a short-term solution for the short-term thinker. They might be a bandage but certainly not a cure. They are not the solution to our manpower problems. Yes, they might get the desperate employer out of a jam, but it’s clear they have no loyalty whatsoever, no character and would not benefit us in the long run. Tempting maybe and at times one could find it necessary to hire them, but you don’t want to build a business on the broken back of this sort of manpower.
No Silver Bullet
There is not a single solution to our manpower problem. Just like most problems, it is multi-faceted and consequently so is the solution. You’re going to have to learn how to walk, chew gum and at times, jump rope simultaneously. Some things just can’t be said any better, so I’ll lean on that old truth that was discovered years ago but is all too often forgotten: “You are going to have to work smarter, not harder.” I think I might actually up the ante, you’re going to have to work smarter and harder!
The real problem is that there simply isn’t enough manpower! All the money in the world isn’t going to solve that problem unless you focus on spending money to produce (not seduce) more of what it is you need. Manpower! So then what’s a soul to do? If manpower is so very lean and in such high demand, you’re going to do your best to resist the tug-of-war for what little skilled labor currently exists?
In the early 1980s we were pulling out of a deep recession and rocketed our way from single digit manpower to 425 employees in a few short years. We built a business with an impeccable reputation for both quality and schedule. It wasn’t easy, but we did learn a few things that might come in handy about now. Check and see, next month!
Doug Bellamy is president of Innovative Drywall Systems Inc. dba Alta Drywall, Escondido, Calif., where he is known for his proactive, innovative approach to our changing industry, and use of modern technology and cutting edge products and services.
