Business of Building e-Source - 11/18/2004 (Plain Text Version)

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How to Find Skilled Labor

With a little effort, you can find good, dependable employees and trade contractors to uphold the quality your company is known for.

The construction industry’s labor crunch is nothing new. After all, housing’s still booming, and so is production. Meanwhile, many young people are opting for careers in industries like finance or IT—a trend that began several years ago—instead of going into the building trades. “They all want to make a lot of money fast,” is a frequent complaint from builders.

However, there are some effective, innovative ways to look for labor that may be new to you. Try the following tips from home builders and other industry professionals.

Ask Around

Get involved in your local HBA and ask about its associate members. “This helps you find out who the better suppliers and trade contractors are,” says Dave Stormont, president of Stormont & Co., in Kitty Hawk, NC. “You can then approach those trades directly.”

To make it easier to meet them, “Find out where all the trades eat breakfast and lunch and go join them,” recommends Larry Johnson, who heads up Larry T. Johnson Construction in Hattiesburg, MS.

Another source for labor leads is to confer with salespeople who work at your local supply house. “They know who the good folks and the bad folks are,” says Stormont.

You may be one of the first to learn about the good folks. “Some of the skilled trade contractors the suppliers know are not currently working in the residential construction industry—perhaps because they don’t know how to bid jobs—but they would be good at it,” says David Swift, a vice president at HomeSphere in Golden, CO.

If you’re looking for a superintendent, your trade contractor may know a builder or remodeler who has excellent skills and is tired of running a business. That’s how Todd Slyman, vice president of Slyman Construction Co., in Huntsville, AL, found out about a great new hire. “I asked one of my trade contractors and he recommended a guy I’m about to bring on board,” says the builder.

Take Advantage of Training

Tony Zimbelman, owner and general manager of Zimbelman Construction, LLC, in Wichita, KS, has hired students from carpentry training programs in vocational schools. “Make sure you talk to the instructors to get the best students available,” the builder advises. “We usually have to train them to do what we want, but at least they have a basic knowledge of a construction site, tools, etc.” Zimbelman generally starts the students out with his framing contractor.

Home Builders Institute (HBI), NAHB’s workforce development division, offers training to students enrolled in the Department of Labor’s Job Corps program. To find skilled graduates in your area, check out the Job Corps page on HBI’s Web site. The “Hire a Job Corps Graduate” link connects to a map that’s searchable by state. You’ll find out which building trades graduates have trained in, and get contact information for local placement coordinators.

A $4.3 million grant will help increase the pool of skilled workers for the building trades through NAHB-affiliated programs. The money was awarded to HBI by Department of Labor Secretary Elaine Chao during the 2004 Fall Board of Directors Meeting in Columbus, Ohio.

The grant will fund the development of a series of building trade training curricula—from entry-level training, through apprenticeship, to an associate in applied science degree. HBI will partner with the American Association of Community Colleges, local HBAs, and educational institutions.

Seven years ago, the Utah Valley Home Builders Association, in cooperation with the local technical school and two local school districts, brought in high-risk high school students (those who were bored with school and considering dropping out) to help build homes and learn the trades.

The program, dubbed Building Youth Institute (BYI), is still going strong. There’s an expert journeyman on every home site for quality control, and the student-built homes sell well. BYI helps students realize they don’t have to drop out of school, and that they can learn a trade and make money. Three school districts are now involved in the program, which is self-funding.

“Parents have told us that the program has essentially saved their students’ lives,” says Brad Simons, vice president and associate broker at Cottage Homes in Draper, UT, who provided plans and assistance for BYI. The program also has beefed up the local labor pool.

If you’d like to start a similar program in your area, read the Project CRAFT fact sheet available from HBI.

Ask the Right Questions

Once a lead turns up some likely prospects, you need to winnow them to find the good ones. Don’t think that you can’t be choosy given today’s job market. You can—and you should—pick your employees and trade contractors as carefully as you select building materials. To maintain the quality of the homes you build, you likewise need to hire quality people.

Here’s a question to start with:

What other local builders have you worked for in the area?

“This is one of my initial questions when I interview a possible new trade contractor,” says Stormont. “Chances are I’ll know a couple of those builders. I’ll call them and check the guy out regarding quality, dependability, integrity, etc. I put a lot of weight on what my fellow builder has to say.”

These requests and questions can help you gauge how someone would perform on the job:

Please describe the worst situation you ever had to fix on a jobsite. How did you rectify the situation?
What was the first/last job you worked on? What did you learn from this experience?
Tell me about an ideal job you worked on.
Tell me about your average project. How long would it take? Who did you report to?

Ask this question as part of your reference check:

Would you hire this person again?

“If the reference says ‘yes,’ you might have a decent employee or trade contractor on your hands,” Zimbelman says. “If they say ‘no,’ they will usually follow up with several reasons why.”

Hiring and Training Resources

Selecting the right people for the right jobs goes a long way towards boosting company profitability and increasing employee productivity and retention. With 40 job descriptions for home building industry employees, Job Descriptions for the Home Building Industry, Third Edition, will help you do that. Special features in this new edition include: 12 new job descriptions, sample job description and other forms; detailed lists of legal questions and items that are illegal to ask job candidates; and electronic job descriptions and forms on CD to download and customize for your business. Call 800-223-2665 or go to BuilderBooks.com to order this publication now.

Do you have a promising superintendent who could use some more training? Send him or her to HBI’s Residential Construction Academy. Students take classes at local HBAs. They receive a Residential Construction Superintendent (RCS) designation after mastering the following core competencies:

General project management
Planning and scheduling
Budget management and cost control
Customer service and homeowner relations
Safety and security
Codes and quality control
Hiring, training, and supervision
Office and subcontractor relations.

For a course schedule and other details, visit the RCS Web site. You can also contact program specialist Joseph Krinock at 800-795-7955, x8928.

Want More Articles Like the One You Just Read?

You’ll find more than 160 resources to help you run your business more profitably at www.nahb.org/biztools.

Log on as an NAHB member and you’ll get guidance on accounting & financial management, business strategy, computers & information technology, customer service, human resources, and more!

Articles and other items are added weekly. Bookmark www.nahb.org/biztools so that you can go directly—at any time—to these vital business management resources.

Local & State HBAs—Feel free to link to www.nahb.org/biztools from your Web site. You’ll give your members instant access to these great resources and it reinforces to them that your Web site is the place to go for the information and guidance they need to succeed.

It’s all at www.nahb.org/biztools! [return to top]

Fax Regulations on Hold

New fax regulations will not take effect this January, thanks to a six-month extension approved by FCC commissioners that pushes back the effective date to July 1, 2005. The regulations are part of the FCC's anti-telemarketing campaign and would force home builders and other companies to obtain signed, written consent forms from each of their customers prior to transmitting any faxes. The six-month delay will hopefully give Congress time to pass pending legislation to allow firms that have an "established business relationship" to transmit unsolicited commercial faxes to their customers and would give recipients the ability to opt-out of future unsolicited faxes. Contact J.P. Delmore at 800-368-5242, x8470 for more information. [return to top]

Don’t Let Storm Water Fines Blow Your Budget

Get more information on storm water permitting with an important new resource on the NAHB Web site. Go to www.nahb.org/stormwaterforum to find the Storm Water Information Exchange. This is a channel through which our environmental policy staff routinely hears from HBA staff and members about great programs and strategies that are working in localities throughout the country. From participating in the development of local storm water ordinances, to finding new, cost-effective Best Management Practices, to locating storm water training programs close to home, this forum should connect you with the solutions you need to satisfy the EPA’s National Pollutant Discharge Elimination System permitting requirements. For more information, contact Amy Ericksen at 800-368-5242, x8662. [return to top]

Does Your Business Measure Up?

Get your copy of the 2004 Cost of Doing Business Study and you’ll instantly see how your financial performance stacks up against the rest of the industry. The publication gives home builders a rare glimpse at other builders’ books by providing data about profitability, cost of sales, and expenses from hundreds of home builders across the country.

In this 2004 edition, you’ll learn how to develop cost control systems and get tips on cutting cycle time. Start working more profitably by ordering it today.
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Next issue—Tricks of the Trade From the Custom Builder Symposium

Look for content from the 2004 Custom Builder Symposium in the December issue of Business of Building e/Source. Last week, hundreds of custom builders, remodelers, and other residential construction pros gathered in Indian Wells, CA to network, share business strategies with each other, learn how the Ritz-Carlton’s take on customer service can work in their companies, participate in educational sessions, view unique homes, and play golf on a gorgeous course surrounded by mountains.

We’ll fill you in on what you missed so you’ll be raring to go to the 2005 Custom Builder Symposium. Join us November 11-13 in New Orleans, LA.
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Business Opportunities From NAHB Councils and Departments

2005 NAHB/NOD Disability Award

NAHB, in partnership with the National Organization on Disability (NOD), will recognize outstanding examples of programs, projects, and activities conducted by HBAs that further the goal of full participation of people with disabilities in community life. The 2005 NAHB/NOD Disability Award will be presented at the 2005 International Builders’ Show in Orlando. The recipient HBA will receive a cash award.

Programs and projects honored in previous years include last year’s “Rampathon” program from the Master Builders Association of King and Snohomish Counties in Washington state, a program that provided 21 local residents with wheelchair ramps for their homes. The 2003 winning project involved the wheelchair-accessible renovation of a campers’ cabin and the health cabin at a summer camp for children by the Building Industries Association of Northeastern Pennsylvania. That enabled children with differing abilities to attend camp together.

State and local HBAs are invited to submit entries for the NAHB/NOD disability award. The deadline for entries is December 15. Use this link to download an application form (see last page). For more information, contact Denise Malatesta at 800-368-5242, x8550.

Inspire Your Salespeople

Want to light a fire under your sales force? Have them attend the Nationals Awards Gala at the 2005 International Builders’ Show in Orlando.

Now in its 24th year, The Nationals – the National Sales and Marketing Awards, which are sponsored by NAHB’s National Sales and Marketing Council—continues to astound gala attendees with the level of achievement in new home sales and marketing.

With 53 categories, including two new categories for small volume builders, The Nationals rewards professional excellence in residential product design, marketing, interior merchandising, advertising and individual achievement and Website design. Attend the gala event to hear the Gold Award winners and to celebrate The Legends of Residential Marketing winners. The Legends Award was started in 1992 to recognize innovative leaders in residential marketing.

The gala event takes place on Thursday evening, January 13. Featuring a cocktail hour, fine dining, and the awards program, The Nationals is held at the spectacular Orlando World Center Marriott. Tickets are available online at www.TheNationals.com.

2005 Bryan Patchan Scholarship for Remodelers

NAHB's Remodelors™ Council is currently searching for the 2005 Bryan Patchan Scholarship winner.

The candidate will be the 2005 vice chair of their local Remodelors™ Council and wants to learn about leadership on a national level. The purpose of the $1,000 scholarship is to help defray the costs of attending the Spring Board meeting for a local leader who may not otherwise be able to attend. The winner of the scholarship will be expected to attend the Remodelors™ Council meetings. The award recipient will also participate in the leadership orientation activities hosted by the Remodelors™ Council national leadership and staff.

All 2005 vice chairs or vice presidents of a local Remodelors™ Council are encouraged to apply for the Bryan Patchan Scholarship. The winner will be announced in early March 2005. Completed applications are due January 28.

For more information on how to make a donation to the Bryan Patchan Scholarship and/or apply for the scholarship, e-mail Therese Crahan or call her at 800-368-5242, x8211. [return to top]

Member Advantage: NAHB Members Save 15% on Payroll Processing With Paychex®

Paychex® Payroll Processing makes automated payroll efficient and cost-effective for any size organization. Paychex offers an array of services including Paychex Payroll Service, Taxpay®, Flexible Pay Package and Paychex Human Resource Services. For more details on any of these services, call 800-729-2439, visit the Paychex Web site at www.paychex.com, and mention code 5685. Or go to http://memberadvantage.nahb.org, click "view all member discounts," and scroll down to Paychex to take the Online Tour. Paychex has more than 100 locations across the U.S.

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to http://memberadvantage.nahb.org. Or visit www.nahb.org to explore the full range of benefits associated with membership in your local, state, and national home builders associations. [return to top]