Minding Your Business: June 2000, A Winning Workplace

With a healthy job market and a record-low unemployment rate, finding and retaining good employees is a difficult task. For smaller contractors with fewer resources than their larger counterparts, this can be a particularly frustrating challenge.

Part of retaining good employees is making sure the right ones are hired in the first place. "You just have to really work hard to choose the people you want and not just take in people who come to you," said Mark Tarzian, owner, Windemere Landscape Services, Steamboat Springs, Colo. "Bad employees are like a cancer," he observed. "They end up negatively affecting other employees."

CREATING AN APPEALING CULTURE. To find and retain good workers, smaller contractors can play on their strengths and emphasize what sets them apart from larger employers, advised Greg McLaughlin, owner, McLaughlin Landscape, Pendleton, Ore.

McLaughlin, who has anywhere from eight to 14 employees depending on the season, noted that smaller companies, in particular, have the ability to get creative and make an extra effort to let their employees know they’re valued. If companies do this, the issue of employee retention is minimized.

For one, smaller contractors need to create a company that employees actually want to work at. To differentiate his company from competitors, McLaughlin, for example, gives his employees weekends off, which is an unusual move for a contractor. Having every Saturday and Sunday free gives his employees time to re-energize, and more importantly, allows them to be with their families, McLaughlin said.

In addition to some obvious employee retention incentives like offering competitive pay and generous benefits, contractors should appreciate their employees in ongoing, concrete ways, McLaughlin advised. "Thank them for specific things they’re doing well," he said, noting that even the slightest gesture of appreciation can go a long way. "Encourage your employees and allow them to have flexibility with such issues as scheduling and work responsibilities. Send a message that you really do care about them."

To further create a "feeling of being on a team that cares," McLaughlin said he writes a yearly letter to individual employees to provide encouragement and feedback and also treats his staff to lunch once a month.

Like many successful companies, Belknap Landscape Co., Gilford, N.H., sees its culture reflected in every aspect of the company, even job titles, according to Andrew Morse, operations manager. That’s why employees are referred to as "team leaders" and "team members" instead of foremen and laborers. "That terminology is old school," Morse said, adding that these titles help worker morale and create a sense of camaraderie.

Belknap has also demonstrated a commitment to employees by helping them find work in the off-season. When the landscaping season ends, the company helps its workers look for alternate sources of income and provides job recommendations if necessary. This creates worker loyalty and keeps them coming back, Morse said. Otherwise, "when someone leaves in November, there’s a chance you might not see them again," he pointed out.

Another way smaller contractors can create a positive work environment is by including their employees as often as possible in any decision-making processes. Allowing them to have a say provides employees with a sense of ownership about their work and instills in them a sense of pride, Morse said.

Belknap, which has about 50 employees, holds annual management training that focuses on creating a positive work environment. During this time, the company brings in a consultant to advise managers about such issues as establishing an appealing company culture and maintaining employee morale. Even for a smaller company watching its bottom line closely, this kind of training is, without question, worth the investment, Morse advised. "It’s a matter of ‘Can companies afford not to do this?’," he said.