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Wednesday, September 24, 2008 - Modern Woodworking - By Jeff Crissey
Industry Trends
The lack of available skilled labor remains at or near the top of the list of concerns for wood products manufacturers according to the latest Modern Woodworking Human Resources Survey. When traditional recruiting and retention methods fail, many companies are throwing in the towel and using the ‘warm body' hiring approach. But successful companies are rethinking their recruiting practices to attract the brightest people and reshaping their own employee practices to retain their best workers.
Now a shining example of good employee recruitment and retention practices, Crown Point Cabinetry, Claremont, N.H., once struggled with hiring policies, focusing on the quantity of employees instead of quality of employees.
"We used to start with low expectations and set the bar low so we wouldn't be disappointed," says Brian Stowell, president and CEO. "We knew it wouldn't work out and they would either leave or be fired. It's easy to reach the bar when it's sitting on the floor."
At one point in its past, employee turnover was so high the company had 50 employees but had more than 90 W-2 forms in one year. The company changed its tune when it realized it didn't have to accept the idea that it couldn't do something about it. Today, Crown Point Cabinetry has 125 employees and more good applicants than it can hire because it focused its energy on retaining its good employees.
"We raised the bar," says Stowell. "For us, it's not about recruiting; it's about how we run our business, how we treat our employees and how they perceive themselves. We focus on quality, and we train our new hires so they can generate for the company and we can in turn increase benefits. I tell them that if they learn to build for quality first, I will do everything I can to keep them employed. If they can't grasp that, they need to leave."
Sam Stoltzfus, president and CEO of Keystone Wood Specialties, Lancaster, Pa., faced the exact opposite problem. His company had a good employee retention strategy, but struggled finding new employees.
In addition to updating the employee handbook and rethinking how and where to advertise job openings, Keystone Wood Specialties overhauled the application process to gather information and create a favorable impression of the company in the eyes job candidates.
Company leaders looked at what questions were asked on the application and in the interview, where the candidate sat to fill out the application, the setting that the interview was conducted, and so on.
"These are changes that we made that don't cost anything," says Stoltzfus. "When you put these practices in place, recruits can tell a lot about your company. If you don't present your company professionally, you won't attract quality employees."
Keystone now follows through with job candidates after the application and interview process, sending them a package that includes a list of benefits, company newsletters and other information to help the candidate make a decision. After the candidate accepts the position, he or she undergoes the company's orientation program that includes a plant tour, introduction to company officers and managers and safety training.
Building a respectful environment
At Great Lake Woods, Holland, Mich., management goes the extra mile to makes its employees feel like they have a stake in the company.
"We demonstrate excellence to our employees, and they need to show commitment to us," says Keith Malmstadt, president and owner. "We treat our employees as fairly as possible and instill a sense of pride in what they do." One common practice at Great Lake Woods is open lines of communication, including quarterly luncheons to talk about company performance, outlook and industry issues.
Trust is a major component of employee retention at Arcways, a staircase manufacturer based in Neenah, Wis. The company recently switched from five nine-hour workdays to four 10-hour days, and leaves Friday as an "open shop day" for its employees to come in and work on personal projects. More than three quarters of the company's employees have master keys to the building, and co-owner Tom Stilp insists that no doors are locked on the inside of the building during work hours.
"We have created a true sense of ownership for our employees," says Stilp. "The greatest successes come from who you surround yourself with, your employees. The most creative and innovative ideas we have come on Fridays when employees are in here on their own time and discovering new techniques."
Part of the recipe for success at Horizon CNC Products, Travelers Rest, S.C., is demonstrating authority and confidence to its employees. "I believe character is the strongest source of authority," explains Bern Fitzgerald, consultant for Horizon CNC Products. "We follow people we look up to, and if the employees know you will do the right thing and you will treat them right, you have great influence. If they have confidence in you, you can build a relationship with them that goes a long way in retaining them as employees."
Plant safety is another area where owners and managers can demonstrate their commitment to their employees.
"I like telling a client buying a $50,000 kitchen that quality isn't our number one priority, but safety is," says Stowell. "I can always replace a defective cabinet, but I can't replace an employee."
Stowell cites one aspect of his company's safety program to show respect is a two-way street. "Employees can tell me to get off the plant floor at anytime if I'm not wearing my safety glasses, and I'll listen."
Arcways also emphasizes the importance of safety in the workplace and turns over the insurance dividend back to its employees as an incentive to maintain safe work habits.
Cultivate your workforce
Companies looking to gain the edge in recruiting and retention need to develop a responsibility to educators and training services in their areas. Malmstadt is a champion of WoodLINKS USA and Great Lake Woods provides its expertise and materials to area schools.
"By working with kids at the high school level, we instill a sense of pride and demonstrate our commitment to them early on," says Malmstadt.
"I get tired of business owners saying there are no good employees out there," says Stilp. "They need to go back to the high schools and technical colleges and help write curriculums for students."
Source: Randall-Reilly Publishing, Co. - http://www.modernwoodworking.com/
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