In this third and final article on trends of the more progressive contractor, we conclude our interview with Colby Humphrey, director of the Center for Competitive Intelligence & Development. This research division of Pinnacle Development Group is fast growing in its efforts to assist and support contractors of all sizes with industry “intel” useful for market competitiveness and corporate development.
In our first segment, Colby shared efforts being exercised by progressive general contractors built around five primary areas:
- Techniques progressive general contractors are attracting quality workers
- What trends appear to be impacting employee training
- How critical the workplace or corporate culture is to attracting quality workers – and why improving this culture is so important
- Looking at developing more positive and proactive employee treatment efforts with a changing and more diverse employee
- And, the contractor’s effort at succession plans and creating opportunities for better workers to stay longer
In this final installment we examine the last two of the primary areas listed above.
Brad – Let’s focus on the last two areas you addressed, Colby. The fourth primary area involving proactive employee treatment efforts, seems fairly close to the third area we’ve addressed, the company culture.
Colby – This fourth area probably falls within the same process of thinking as the third area, but it focuses on truly causing contractors to look more specifically at how they treat their workers. I think the key for this area has to do with the diversity of worker that appears to be making up the construction workforce at large.
Brad – As an industry we’ve noticed for years the departure of the traditional construction worker, the mostly white male worker, and the move to more workers of color, ethnic diversity and, especially here in the United States, the increasing numbers of women throughout field and management positions. We are seeing more workers coming from a host of different countries around the world, continuing to add to the mix.
Colby – Exactly, and that trend doesn’t necessarily appear to be changing anytime soon. We should continue to see such diversity permeating into more construction companies, beginning with larger construction companies and slowly but surely moving down into the smaller specialty contractors.
Brad – So what sort of treatment might a contractor need to consider? Can you give us some examples?
Colby – I think there are two areas that the progressive contractor is trying to address. First, the difference of work ethic found and practiced by workers. This represents the attitude that more workers might be bringing to their employers. For example, many of the younger workforce feel that it is important to realize some balance between their work life and their personal life. Therefore, some of the younger workers might not be as enthused about working longer hours, weekends or when they have personal things scheduled in the evening, weekends or extended holiday times.
Second, another difference specifically addresses the background or cultural differences among workers. For instance, contractors who hire a worker of Asian, Middle Eastern or European background will benefit if they can at least try to understand the employee’s view of life, view of work, view of the United States, etc.
For some contractors, working with women — especially women who are raising children — provides opportunities to adjust how they might have looked at leading or managing the same position if it had been filled by a man. I realize this is a sensitive issue for many contractors, but it’s one that needs to be carefully considered. As always, I’d support what the human resource manager or a labor attorney recommends if there are questions or uncertainties.
Brad – So, we do have an interesting “mixing bowl” of employees with a greater diversity of backgrounds, interests, expectations and needs. What’s a contractor to do?
Colby – Consider a few things that some of the progressive contractors are working out in their organizations:
- Promote more multi-cultural appreciation of the ethnic mix in the company. Don’t ignore the differences; instead provide opportunities for employees of different ethnic backgrounds to share their heritage without pressure and in a welcoming and learning way.
- Celebrate some of the national holidays or “seasons” of other cultures. This doesn’t mean that you have to give the workers time off for their holiday but at least be interested in it and talk about it.
- Teach, coach and practice patience with your company’s leaders and encourage them to do the same with their diverse workers.
- Coach the more “traditional” workers and leaders who might not be so enthused about the diverse workers, pointing out the benefits to practicing patience and to work a little harder to understand their co-workers.
- Commit to spending more time up front on projects discussing approaches, perspectives, action plans, etc., as workers who have been educated or trained in other countries might view “how” to complete projects a bit different than what the employer has experienced.
- Seriously address how to support and adjust to men and women who are raising children, some of these workers raising their children alone. While this can be a tightrope to walk, it appears that an increasing number of contractors recognize the value of extending some support to workers to keep them for the long-term.
I think the main thing here is not to avoid the obvious when it comes to people who are different than the traditional male worker that once made up the majority of the construction workforce. If a contractor is clearly moving to a more diverse workforce, he will only speed up the performance improvements, quality, employee satisfaction, profitability, etc., by engaging the diverse workforce positively and proactively.
Brad – Good enough. Now, what about the fifth and final area you shared?
Colby - Well, as you know better than I, we’re getting older!
Brad – All right, enough of the backhanded compliment…Ha! Just get to the point, Colby.
Colby – Well, we are getting older and the need to replace those positions to ensure a smooth transition to the next segment of years has never been more needed.
Brad – Yes! I’ve been saying this for several years but even the U. S. National Labor Statistics clearly indicate that workers will be retiring in greater numbers than at any other time in American history. So, how are the progressive contractors looking to address this very real future challenge?
Colby – Not much suspense, it’s actually pretty cut and dry. Let me line out a few things that we found are happening.
- From the owner to the front line leader to the specialist worker, identifying the replacements for these positions is growing among progressive contractors. This used to be primarily focused on the owner or president of a company but it’s now impacting every level of a company.
- Having identified potential successors, a transition plan is then developed that reflects dates of “outgoing” movement and “incoming” movements.
- Part of the “transition plan” is to engage the outgoing person to spend additional time with the incoming person to provide critical mentoring on what the position requires from the incoming individual.
- Also part of the transition plan is to create formal educational objectives for the incoming person. This can and often does range from reading assignments, attendance at college or trade school, specific skills workshops, etc. Anything to give the incoming person a head start toward preparing to actually taking over the new role.
- A growing number of the progressive contractors appear to be engaging more professional coaches to assist new and soon-to-be promoted leaders. This is especially true for the middle management and senior leader level of employee.
I think it is important to state that the primary reason for this succession effort is to promote a more seamless transition from one leader to another.
Brad – Seamless is always nice, but why is it especially important in this case?
Colby – I think primarily due to the fact that construction companies are finding things still very competitive. Therefore, there is not nearly the wiggle room to allow any new leader years to get to know his or her role better. It’s as if the newly promoted or hired leader must hit the ground running once he assumes the new job function.
Brad – Good enough. Let me close out this article and topic with a few reminders for our readers. Colby, thanks again for your insights from some of the research you have conducted. I’m sure we’ll bring you back in the future with other important trends in the construction industry.
Succession tips to remember
- Your corporate culture counts. So let your search for a successor include identifying people who support and reflect the culture you have worked many years to develop. The wrong person in the job can set a company back five, 10 or more years.
- Look inside first. Then look outside the company if your search turns up empty. While bringing in “fresh blood” periodically can actually be healthy, I still find that the most successful results in trying to find internal candidates for most succession efforts.
- Remember, new people will have new methods. Even if your succession plan includes promoting internal people, including relatives, to fill positions, they will still bring with them a few of their own ideas that might be different from yours or their predecessor. This is neither good nor bad per se; however, it might require a time of adjustment for all concerned to allow such transitions to find their resting place.
- Bring those soon to be promoted into a planning meeting. This meeting should flush out some of their ideas, expectations and needs. Better to do this early rather than after the individual is promoted. This person might actually share that they cannot work with “Uncle Buck” like the previous general superintendent could and would rather pick his own field leader. While tough to swallow at times, it’s better to discuss this before the succession plan takes affect rather than after.
- Finally, nothing remains the same forever. Contractors change — or need to change — periodically or face a slow but sure extinction. The same is true whenever you bring succession into play.
Your succession plan is as much an indication of the type of work culture you have as anything else. With all that is happening in most construction companies, developing a well thought out succession plan for your leaders now is in the best interest of everyone. Don’t wait until someone up and retires quickly (or worse, dies from an unexpected heart attack or cancer).
Well, this concludes looking at five of the primary trends happening with many of the progressive contractors, especially the progressive general contractors. Don’t let the size of your company prevent you from looking deep and far into what your future holds.
Adapt, adapt and adapt is probably the key phrase to keep foremost in your minds. Stay ahead of the trends and you might find yourself finding, leading and keeping more quality workers than imagined. Sure enough, these same people are looking to spend their careers working with the more progressive contractors!
You can reach Colby Humphrey, director of the Pinnacle Center for Construction Innovation & Development, via e-mail at [email protected] or via the website at www.pinnacleccid.com; follow CCID on twitter @pinnacleCCID.
