Sunday, June 22, 2008

It's Sum, Sum, Sum, Sum...Summertime

Bar-B-Ques, ball games, family picnics, long weekends, and of course, vacations. Vacations are great. Everyone remembers their favorite trip or place they went on a vacation. As a business owner or manager, your take on vacations usually is 'a scheduling nightmare'. Here are some tips that may help every business.

Vacation is not a mandated benefit. Some companies don't offer vacation, especially to part-time or contract workers, but there are three reasons you want to offer vacations: A good vacation program allows you to hire and retain the best employees; most employees come back from vacation with their batteries recharged and are ready to perform at their best for the company; and managing a vacation schedule allows leadership to cross-train and observe other members of the company.

That's the textbook in me writing. Let's get to what we in the glass industry can do to help ourselves with proper vacation scheduling. The most common vacation schedule in the United States is two weeks during the summer, as that is when the kids are out of school. If everyone wants their vacation in the summer, you may find yourself without enough people to staff your business needs.

In your employee manual, or just your vacation policies sheet, you may make any rules you want. There is no federal guideline. If you want to offer vacation only in the fall and winter, your quiet season, that's OK. You might not hire or retain great employees, so you have to strike a balance.

Set a number of employees, by company or department, that can be on vacation at any one time. For instance, you have six field glaziers, you might say no more than two at any given time can be scheduled out. The single best way to set the schedule is based on employee seniority. It is the simplest and prevents any other problems. Ask for a vacation schedule early in the year, by February if you can. People may say they can't make their plans this early, but others who take a planned week will want to get reservations early to save money on travel and hotels.

So, ask for a schedule by February 15th. If there are conflict dates, or too many people in a week, talk with the group and tell them that the most senior people get the requested weeks, and ask the others for their next choice. A week later, hand out a note with the scheduled vacations. After that, fill in requests only as they meet your minimum staffing requirement. Please don't make the mistake of allowing someone to beg for a closed week. This will only hurt the rest of the company.

It is OK to allow one week during the summer, and the other week sometime during the rest of the year. If an employee has earned more than two weeks, only the first two weeks should go into the advance schedule. A person with a month off should not hinder the rest of the group.

An extremely common situation is the employee who asks to work through a vacation week, earning an extra week's pay. If you accomodate this request, you should allow for one of an employee's two weeks. Remember, you are now paying this person for 53 weeks, not 52, and your budgeting is getting a hole blown in it.

Never, ever grant an employee to work through their entire vacation, most especially any employee that handles cash, your checkbook, pays bills, invoices customers or places vendor orders. You want them away for week and you want someone else to learn and do their job. Why? So that when the customer says, they normally get an order at half price, your alarm bell goes off. It is a major warning when a financial person says they want to work through vacation. This is the time to be suspicious.

You should also have a policy on returning from vacation. If someone is due back on a Monday, they should be back and ready to work. If someone drives from 500 miles away all night Sunday, and comes to work looking like they are half-asleep, send them home, without pay. The old joke about having to go back to work, so they can recover from vacation, is no joke when it affects your company's productivity.

I always have a hard time with the employee who calls at 8:00 on Monday morning, saying they will be late because their flight came in late. Being on vacation is not an excuse for being unreliable.

The most common vacation-earning schedule is:

  • First Year - one week earned
  • Second Year - two weeks earned
  • Eight-Ten Years - three weeks earned
  • Fifteen-Twenty Years - four weeks earned

Don't fall into the trap of trying to match other companies or industries. We are not high-tech or education. I have seen many glass companies that offer vacations to three weeks, and just a very few who go to five weeks.

One of the biggest decisions in vacation policy is: when is a vacation earned and eligible to be taken. Is it after one year of employment, and then take one week during the second worked year? Or is it one week earned and taken during the first year? There is no correct or right decision. If you tend to hire employees for long-terms, then go with the earn and take in the first year. On the other hand, if you turn people over, then wait until one full year worked to earn the vacation.

What about when an employee leaves you--do they get their accumulated vacation? Remember, it is not covered by federal law, so you may pay it or cancel it. (some states may have other policies). I know some employers who forfeit accrued vacation when an employees resigns. This may make an employee think twice before quitting after a disagreement in the plant; but for the most part, this just causes ill-will, which is transmitted by the ex-employee through out your community. We paid all accrued vacation after confirming hours worked in the last pay period, and after all company materials, (phones, safety gear, etc) were checked back in.

If an holiday occurs during the employee's vacation period, make it optional if the employee gets the following Monday, or another day of their choice.

Some companies let employees take a vacation day or two in advance, in effect loaning them the days ahead of when they are earned. This is really a win-win situation. You give the employee something they are going to earn in a short period of time, the employee thinks you are really accommodating, and you can still with hold a day's pay from their last paycheck if they quit the week after the vacation. Do this when it is within a month or two of actually earning the last day, and to an employee you want to reward.

We'll talk more about vacation scheduling when winter vacations come up for scheduling, later in the fall. To all, have a great trip, wherever you are going!

Monday, June 16, 2008

Change In The Glass Industry

Sure, you think this will be about Mr. Obama or Mr. McCain and the politics of change. Wrong.

This is about change in your store. Read on----

Last month I was on a visit to a client and I forgot my small calculator, usually packed in my briefcase. Stopping into a national printing and office supply store I found a $4.70 calculator, which was just right. I brought it to the counter where two young women were talking. After waiting about thirty seconds, I asked if one of them could take my money.

The dirty look told me volumes about their customer service. I handed one of them a twenty-dollar bill. She told me the amount was $5.03 with tax. I said, wait a second, here is three cents. She froze like a deer in headlights, looking at me and then at the cash register. She had already recorded my twenty and had the change amount flashing on her screen. She looked petrified. Finally, after about 15 seconds, I asked if she was all right. She shook her head kind of up and down, and then sideways. She said wait a minute, she had to see a supervisor. She came back with the supervisor who used a key insert to void the sale, and the the clerk reentered the transaction with $20.03 tendered, and gave me my change. I asked her why she called the supervisor, and slowly she replied, she didn't know how to make change without the screen telling her.

All together, it took over three minutes to pay. Now, three minutes is not that important, but then again, it was. I was irritated that my time was wasted, as was the time of my partner in the car. I was surprised that a national store couldn't train their counter help to make change.

The moral of the story is: make sure your counter help is trained. When you hire someone, test him or her to see if they can make change. Don't depend on the school system to do this. Make sure your staff knows how to use whatever systems you have to finish a transaction.

Train your staff to ask if there is anything else the customer needs. Have them ask for their e-mail address for your mailing list. Have them say, with enthusiasm, "Thank You" for shopping in your store. Teach them to say, "And by the way, we sell mirrors for your home, and we can replace your old windows with new low-e, energy saving, windows."

Don't let the weakest link in your chain be the last person your customer sees!

Sunday, June 8, 2008

You Know You Have To Fire Him, But...............

You have cursed him for three years; told yourself you would do it on three different times; you almost did it once; why can't you fire him? He does just enough to get by, most of the time; he shows up on time, on pay day; he said he was sorry for spilling his coffee on Mrs. Customer's white rug, after she stopped payment on the check; why can't you fire him? You gave him a raise every year for three years because you didn't want him complaining.

Yes, it is hard to do. You loose sleep over it, and you chew antacid pills by the dozen. It is easier to live with mediocrity than fire someone. He might sue you for something. He will play on your heartstrings, telling you about his sick daughter. He may bad mouth you to the rest of the employees. He might work for a competitor and tell them who your best account is.

On the other hand, your other employees will thank you for getting rid of a rotten apple and you will sleep better. You may save money, because, with our current economy, you are not going to replace him.

Here's the plan. Put him on probation. Write a thoughtful and accurate critique of his work. Comment on his attitude, his quality and quantity of work, his safety habits, and his reliability. When you say something negative, (and you will), give a specific instance which backs up your comment. Most important, set a target date and work goal you expect for improvement. It is hard to figure out for attitude, buy you will know it when you see it. It is subjective, yes, but you are within all bounds to ask for better and more polite communication with all levels of the company and customers.

Meet with him for an half-hour, laying out your concerns, and your goals for his improvement. (If he does improve, you have a win, and all is fine!!)Set a time to meet again, usually 30-60 days. Explain that his job is in jeopardy if he does not improve. Give him every reason to improve in your meeting, specifically, he will keep his job. Keep accurate notes during this time period about his failures and his successes. Since tigers don't change their spots, his failures will continue.

At your next meeting, explain where he has not met your goals and now you are going to suspend him for 1 week. Tell him to go home and think about whether he wants to work for you. Keep his medical and other benefits intact for this week, but no pay. This is not a lay-off. Be clear, this is a dire consequence of his inability to meet your goals. He may ask to be paid a week of vacation...split answer on this. No pain, being no pay, may improve him. My feel--give him the vacation money, you will owe it anyway, and you are showing the strongest support by doing this.

After the suspension, give no more then 30 days to your next meeting. If he doesn't improve, it is time to terminate. Make it quick and simple. Tell him he hasn't met your goals and his job is done. Do not get into an argument, have another person present with you; don't present details; if he is going to sue you, don't give him the ammunition. Save this for your lawyer.

I promise you, all the fear and problems will be offset when one or two other employees come to you and say thank you for letting the rotten apple go. You will sleep better. Your company will be a better company.

This is a simple note on a complicated situation. It is a start. Think about him and his impact on your business. Do you want to talk with an impartial person? Drop me a note a paulbaseball@msn.com.

Saturday, May 31, 2008

US Glass and Medal

So, I have this cousin Mark, who really means well. It is just that his recent activities have caused me to hope if he ever has kids, his wife's gene pool will overflow his. What makes me talk about Mark, especially here in this blog that is based in the glass industry? Here's the story, and at the end, I think you will agree.

I ran into Mark at a recent family get-together. We were alone at the table, while the other couples and our wives were swapping baby and grandchild stories and photos. Mark said to me, "Hey, Paulie, I hear your retired from the glass business, what are you doing now?" I told him I was a writer for US Glass and Metal. Mark says, "What is this us glass--is it like us and them glass?" (Are you beginning to get an insight into Mark?)

I told him that US Glass and Metal is a very successful business and told him about the people who run it. "It's simple...do something better than anybody else, have a great idea, and you, too, will be a success." Well, our wives came back to the table, and we dropped the conversation. As we left, Mark said, "Paulie, can I call you about this glass and medal business?" "Sure," I said, "anytime at all."

He didn't call, not that I was looking forward to it. Six months later at another cousin's wedding, Mark pulls me into the bar and begins to tell me this story.

He had thought a lot about the glass and medal business, and if a mere 'girlie' (Our publisher Deb Levy), could succeed, than he would be a shoo-in to be a success. So, Mark opened up a store, without having the faintest idea of how to be in business. He went around to every senior citizen home and offered to pay two bucks to every war vet for each of their medals. He paid an extra buck for purple hearts. Mark told these unsuspecting vets that he was going to open a store to showcase these medals, and he might sell a few. Everyone would share in the profits, with the two dollar payment being an advance of the profits to show his good faith.

Soon, he had over six hundred medals. Now, what would the glass be. He knew. He went on-line and bought hundreds of imported magnifying glasses, to better see the medals. He opened the store, selling the medals for $100 bucks each, and throwing in the magnifying glass for free.

Let's make a long story short...he lasted about three months without a single sale. A few people came in looking for a quote on patio doors, and Mark didn't know what to do. He did donate six magnifying glasses to a kindergarten teacher so the kids could see some caterpillars.

The moral of the story? The glass and medal business is not as easy as it looks.

Wednesday, May 28, 2008

So, You've Got A New Suit

OK, you have a new suit---a nice blue one, with a faint stripe---NO, not that kind of suit, the kind where a beefy guy with yellow teeth, comes to the counter in your shop, asks for the owner, hands you a document, says "You've been served; have a nice day", and leaves.

What next?

Most people read the suit, say it is a load of bull, that they did do the job correctly. Of course, you curse a little, and the next day you read the summons again, getting more angry. A couple of days later, you call the client and ask what is going on, and they say you screwed up, and you have to speak with their attorney now.

You call the attorney, and three days later, he spends two minutes on the phone with you, telling you he cannot help you solve this, that the court has set a date for an answer, and that must be followed.

You beg him for a meeting, he finally agrees, and four days later you meet, and come away thoroughly upset and of course, the suit goes on.

Now what, you don't want to spend a couple hundred an hour on your cousin's son, who just became an attorney, so you figure you can handle this yourself. To make this long-story short. You loose a bundle, when you miss the court date because it was yesterday, not today, and the judge hands down a summary judgement.

Dummy!

Let's start over. A beefy guy with yellow teeth comes into your store and hands you a document...oh you know.

What now?

First step, read the suit. Second step, calm down. In America, anyone can sue anyone over anything. Most suits are frivolous, more concerned with a bruised ego over a perceived problem, that a real problem. Step three, call your attorney. You're going to spend some bucks for one hour of advice, which will be: calm down, and write down everything you can think of about the case, and call back in a couple of days.

Step four. Call your insurance broker or agent. Almost all liability suits are covered by your insurance. If you carry liability insurance, and just about all comprehensive business insurance packages include liability, the insurance company is required to defend you in the suit. They will provide the lawyer, work up the defense, and if you loose, pay the suit, up to the limits of the policy. Isn't this easier?

Do not go to any meetings to discuss the suit without your attorney, or the insurance attorney present. If your adversary has gone to the point of filing a suit, they have invested all the money and time with their attorney, and will not settle without money, and usually a pound of flesh.

Yes, it will take some of your time to explain everything to the insurance company lawyer, or your lawyer, but it is worth it. If you don't tell your insurance company within a specified number of days (usually twenty), they don't have to pay the suit. That's right...if you handle this yourself and lose, thinking then you will put this in as a claim, you are going to lose.

The smart route when Mr. Beefy comes to the front door, is to thank him, call your lawyer, call your insurance agent or broker, visit your cousin from Tennessee, Mr. Jack Daniels, and go back to work. Let the pros handle this. All you will do is upset yourself.

Monday, May 19, 2008

At $4 A Gallon, You Have To Read This Blog About Saving Glass In The Glass Industry!

We don't have to watch the news to see $4 a gallon gasoline. Just look at the station on the corner. If you use diesel, you would be happy with $4 a gallon. Who knew?

Many choices here:

  • Close the business

  • Sell your trucks and work only within a 5 block walking radius of your shop

  • Cut your own pay by a couple hundred a week

  • Work smart, read on, and you will save money--

You have read the standards, fill your tires, drive under 55, tune the engine and tell your shop drivers to "take it easy". These will work for sure. But here are a few extra thoughts that will help a glass company.

CLEAN OUT YOUR TRUCK--This will save you a ton of money. Just about every glass truck has 20 half-used tubes of sealant, three fogged IG Units, and mirror taken from a job three weeks ago. There is also 32 pounds of fast-food cups and wrappers stuffed under the seat.

For every 100 pounds you take off the truck, on average you will save 2% of your gas cost in a a car, and I guessing 1% in a truck. (from a US Government Pamphlet). http://www.ftc.gov/bcp/edu/microsites/energysavings/savegas/flash.html

A glass truck with a couple of filled garbage cans, and the above junk, can easily shed 500 pounds. This can give you 5% better gas mileage. This is free, no special gimmicks. Do this tomorrow. The only complaints will come from the crew who should be maintaining a clean truck anyway! If you are in a cold weather area, next winter remember to get all the snow and ice off the truck. If you only clear the windshield, you are carrying hundreds of extra pounds.

The biggest savings come from reducing the weight you move around, next comes making the truck more aerodynamic. No...you can't get a Ferrari with a side rack, (If you did, I guarantee you a great publicity story), but clean up your rack. When driving with no glass on the rack, place the sticks on the bed of the truck. Presto--better air flow around the truck--better mileage.

Lay out the route for your truck carefully. Most of the glaziers will want to take the streets bordered by coffee shops. Explain to all concerned, that the constant stop and start, stare at shoppers, stop and start, all hurt gas mileage. You will be taking away the fun for the crew...but it is a cruel world.

There is one gas waster that I do recommend. Leave the Air Conditioning on. Let the guys cool off between jobs. They will be more refreshed, will work harder, and in the long run, the company will be better off.

Are you charging a fuel surcharge to your retail customers. You should be. Plumbers and electricians do it, UPS and Fedex do it, Let's Do It, let's recover some costs.

If you follow the above instructions, you will save $ every week. In these economic times, that is important.



Sunday, May 11, 2008

Happy Mother's Day, and other Holidays

I know each and every one of you called your mother, or your mother-in-law, or your children called you, or your Aunt Helen. My opinion, seriously, is every day is Mother's Day. It is, kinda like, that's where you came from, and you should never forget family.

Now that I have sounded like a Hallmark Card, let's bring this discussion back to the glass industry. How many of you did something in your showroom acknowledging Mother's Day. True, there is not a lot to tie to our industry, but you could have put up a sign to bring in your mom's picture and get the glass replaced in the frame. Or maybe, let people know the best Mother's Day present would be a new shower! Or you get a greenhouse window installed over the kitchen sink. Or...use your creativity.

Every holiday gives you marketing opportunities in your glass showroom.

It requires thinking ahead to make a display, teach your counter help to discuss the specials and coordinate with your vendors so that what you do sell will be available to install by the holiday date. Usually, you want to work two to three months ahead of each holiday.

It is close now, but what would you do for Memorial Day? Think about what your potential customers are doing for the holiday, and then help them spend money with you to help their celebration of the holiday. Let's see what Memorial Day brings to mind.

  • We barbecue and eat on the patio to celebrate the start of summer. So, be ready to sell patio table tops...make sure your tempering supplier has a full stock of aquatex glass. Learn what their stock sizes are. Do you have a radius corner chart to help you measure the tables that customers bring in? (Your tempering supplier should give you one!) Do you have a back-up tempering fabricator just in case? Can you cut your own aquatex to size and bring to your temperer?

  • Memorial Day also will bring in pictures to have glass replaced. If you do framing, put up a display with patriotic themes.

  • Do you want to give a discount on all auto glass replacement for any active duty military personnel? How about to any guard or reserve members? Aside from good business, you can get some excellent PR by doing this.

  • Are you near a military base? As most housing is government owned you probably don't deal with the tenants, but make sure you know the base housing officer.

  • How about putting red,white and blue glass in your showroom, showing that glass can come in many colors. This glass can be back-painted, like spandrel, or you can have Lami made from Solutia's Vanceva color pallet. You supplier of tempered or lami can make these samples available. Keep these pieces up through July Fourth. You probably won't sell red, blue or white glass, but your customers will ask questions, and that can lead to sales.

OK, your turn. Look around your shop...can it use a little sprucing up? Where would you put a shower door display? Does your own storefront have hi-performance low-e? Then, do you have a sign explaining what low-e is?

Now that you have read this, start thinking about labor-day!