It's here. It doesn't matter that Mr. Bush says it isn't. It is. More and more people are losing jobs and many more people are cutting back spending on the fear of losing a job. It is this fear that is rippling through the economy and actually sending us further down the spiral into recession.
So, since this column's purpose is not to spread fear, but to help people and companies in the glass industry, let's see what we can do to help ourselves in the glass industry.
Look at your expenses. Scale back on some of the extras at work like, the new car for yourself and every non-working family member on the payroll. Sounds trite, but remember none of your perks exist without a viable company.
It is hard to reduce benefits or perks that everyone gets, but if you have some that only apply to a selected few, these should go first. If you have one or two people that get 45 hours per week, cut them back to 40 so that more people will work. You should never promise OT as a permanent part of income. It can and will fluctuate. Remind your crew of this every once and a while.
You should look at a hiring freeze. Across the board. When someone leaves, share the workload. This will force you to cross-train, to try giving people more responsibility, and will often help you to find a star in your existing work force. If your employees see you trying hard to control costs, they will pitch-in and help. If you still plan on buying a boat and storing it in the extra garage at your shop, your employees will not work hard to help you containing costs.
STOP! This column just turned negative. Let's save that for another day.
Let's find things that we can do to help ourselves! When people start to spend less, this affects your inventory. You won't sell as many framed mirrors, so let your inventory dwindle down. People will fix things rather than replace with new. You will get more screen and storm door repairs than new ones being built. You will see more repair business of everything, rather than new construction sales. Be prepared to fix wheels on sliders or hinges on shower doors. You will replace more fogged IG units then putting in new windows.
You will have more time on your hands...start looking to doing things in-house rather than buying out. Maybe this is the time to look at making your own simple IG. CRL can set you up easily. You might want to polish shelves yourself. Look to doing your takeoffs in house rather than using an outside drafting service. It is a great time to get to know your vendors better. Since they are going to be looking harder for sales, meet with them to negotiate a fixed price for basic products that benefits you, and guarantees them a reliable customer. As money tightens up, talk with your vendors about cash discounts. Even though interest rates are low again, vendors are looking for quick payments to meet their cash flow. If you have the funds, a 2% discount is the best investment you will ever make.
If your vendor offers bill payment by credit card, take advantage. If your vendor offers no payment incentives, 30-45 days is OK.
Recessions also offer opportunities to hire people who have left other jobs, that ordinarily you couldn't afford to hire. Keep your ear open to scuttlebutt in the industry about who may be available. If you are near an AGC plant, there will be plenty of talent around!
It is also a good time to make the investments you had planned. One glass shop told me the edger he had planned to buy was now 5% lower, as the manufacturer was looking to increase sales. The value of the dollar is in the cellar, increasing purchase prices from overseas. Look to American made machinery, or purchases paid in dollars, with a fixed price.
Consumers are increasing their spending in one area--energy conservation.
Present Low-e on every job you go to...show thermal break aluminum to every building owner, and talk about the special blues, greens and grays in float glass that help reduce heat gain.
It seems that the very rich will still be the very rich. Upsell the expensive shower doors all you can. Be prepared to sell medium price doors on a lot of calls. Have your brag book show many styles of doors, including these mid-priced ones.
Purchasing rules are changing with the 'R' word now. It used to be that you would buy enough of a product to get the large quantity price breaks. While you inventory movement is going to slow down, start buying less.
Look at your insurance costs...if your sales or payroll will be less, insurance costs may go down. Talk to your broker and see how much you can reduce monthly payments.
Look at your competitors who may be really slow, and talk about consolidation. If someone is going out of business, I've found the best think you can buy is their phone number. Inventory usually goes for about 10-15 cents on the dollar, and equipment often is below 10 cents on the dollar.
Remember, things will not be the same for a year or two. Be prepared for change, prepare your employees for change without scaring them, but by being honest, and work as smart and as hard as you can in tough times.
Sunday, April 27, 2008
Monday, April 21, 2008
How To Save Big Money on Your Medical Insurance
Here is the easiest money you ever saved. Honest. This week I set up to save $864 annually on medical insurance for my wife and myself. If you work for someone who gives you medical insurance you may save, and if you provide the insurance, you will definitely save.
Here is the simple path to these savings.
This all started last month when I went for my annual physical. Weight and cholesterol both down...the doctor is happy.
Between my wife and myself we take nine prescriptions for a variety of things. None serious, but still recommended by the Doctor. Our medical insurance, provided by my consulting company, covers Elaine and me. We have an average plan, with a drug co-pay of 10/20/40. Which means, we pay $10 for a generic pill, $20 for non-generics, and $40 for the heavy-hitters.
Just after seeing my Doc, I saw a commercial for the $4 drug plan at Wal-Mart. I had seen these commercials before and figured it was just a come-on to get people in the store. But, curiosity prevailed. I went to Wal-Mart's web site, clicked through to the pharmacy, and they listed almost 400 drugs that were on the $4 program. My jaw dropped. 8 out of 9 of our prescriptions were listed. I pay $150 a month on the deductibles, and the insurance pays hundreds of dollars more each month.
Paying just $4 for a prescription just didn't seem right. After all prescriptions cost up to hundreds of dollars a month. Now, I paid $72 for all of my prescriptions, with only one (the $40 drug) having to go through insurance. I saved $78 this month, and every month coming up, and my insurance company will save hundreds each month. The biggest savings is yet to come. Last year my insurance company paid over $3000 for our drugs. This year they will pay under $1000 for the one drug that will be submitted to them.
How much would be saved if each person in your company went to Wal-Mart for their prescriptions? When your insurance broker comes to you, and the plan has laid out thousands less in expenses, you can look to lower premiums, or maybe no increase! This is a no-brainer.
To make it easier, I found out that many other reputable companies have the same $4 plans. Target Stores, for one does this in their in-store pharmacy. My local super market chain does it as well.
They undertake this to drive more business to their store. OK, it will work for me.
If you are a provider of insurance, make a few phone calls. Find out who does this in your area. Encourage your employees to go there. If you paid them the $4, and every one went along, you can only guess how much your premium will be lower in a year, but I bet it will get your attention. If you show your employees how to save money, you win again. If you are in a 'community-rated' plan, where your individual group's experience doesn't change the premium, still encourage your crew to use these discounts. The savings throughout the whole economy will eventually effect all insurance costs!
At the store I went to, they extend this program to pets too! If your pooch or kitty is on a human drug, which is fairly often, they will honor the $4 cost for pet meds as well!!!
I asked the Pharmacist about coverages throughout the country. I was told roughly half of all people take a prescription, with the heavy usage being in the older people. The odds are your medical insurance plan will save, and you will get lower premiums!
Here is the simple path to these savings.
This all started last month when I went for my annual physical. Weight and cholesterol both down...the doctor is happy.
Between my wife and myself we take nine prescriptions for a variety of things. None serious, but still recommended by the Doctor. Our medical insurance, provided by my consulting company, covers Elaine and me. We have an average plan, with a drug co-pay of 10/20/40. Which means, we pay $10 for a generic pill, $20 for non-generics, and $40 for the heavy-hitters.
Just after seeing my Doc, I saw a commercial for the $4 drug plan at Wal-Mart. I had seen these commercials before and figured it was just a come-on to get people in the store. But, curiosity prevailed. I went to Wal-Mart's web site, clicked through to the pharmacy, and they listed almost 400 drugs that were on the $4 program. My jaw dropped. 8 out of 9 of our prescriptions were listed. I pay $150 a month on the deductibles, and the insurance pays hundreds of dollars more each month.
Paying just $4 for a prescription just didn't seem right. After all prescriptions cost up to hundreds of dollars a month. Now, I paid $72 for all of my prescriptions, with only one (the $40 drug) having to go through insurance. I saved $78 this month, and every month coming up, and my insurance company will save hundreds each month. The biggest savings is yet to come. Last year my insurance company paid over $3000 for our drugs. This year they will pay under $1000 for the one drug that will be submitted to them.
How much would be saved if each person in your company went to Wal-Mart for their prescriptions? When your insurance broker comes to you, and the plan has laid out thousands less in expenses, you can look to lower premiums, or maybe no increase! This is a no-brainer.
To make it easier, I found out that many other reputable companies have the same $4 plans. Target Stores, for one does this in their in-store pharmacy. My local super market chain does it as well.
They undertake this to drive more business to their store. OK, it will work for me.
If you are a provider of insurance, make a few phone calls. Find out who does this in your area. Encourage your employees to go there. If you paid them the $4, and every one went along, you can only guess how much your premium will be lower in a year, but I bet it will get your attention. If you show your employees how to save money, you win again. If you are in a 'community-rated' plan, where your individual group's experience doesn't change the premium, still encourage your crew to use these discounts. The savings throughout the whole economy will eventually effect all insurance costs!
At the store I went to, they extend this program to pets too! If your pooch or kitty is on a human drug, which is fairly often, they will honor the $4 cost for pet meds as well!!!
I asked the Pharmacist about coverages throughout the country. I was told roughly half of all people take a prescription, with the heavy usage being in the older people. The odds are your medical insurance plan will save, and you will get lower premiums!
Monday, April 14, 2008
Happy Tax Day to You
Yes, April 15 carries a horrible connotation. Pay the piper. Cover the bill. Fork it over. But let's look at it another way. To me, paying income tax is the cost of living in our country. (We are not going to discuss if the tax revenue is well spent or not. ) Paying tax says, hey--I had a good year--or even better--I had a great year! Why do we, as independent wage earners feel we can evade taxes that people who work and get w-2's have to pay in full?
For those of you who have a suitcase of cash somewhere...how do you sleep at night? I would stay awake waiting for the letter from the IRS. No amount of savings could make that enjoyable for me.
There is a difference between user fees that target small businesses and income taxes. There are way too many of these fees, from sign permits for your showroom, to getting a building permit to replace a toilet in your shop. These are way out of control at the local and state level, and there is no good answer on how to control or limit them. Maybe cut the spending of every government bureaucracy, or make the spending responsible with oversight by a small business person, and we would save enough to get rid of the fees every business owner feels.
You are a glass shop owner and a customer pays you with a crisp new hundred dollar bill. It is so tempting to put this in your pocket. I know. But look around. Your employees will see this at one time or another. And all it takes is one upset employee to drop that dime to the IRS and you have costs and grief far exceeding the Ben Franklin you saved. If you have a profit sharing plan, an employee will remember that money and ask if it is included in this year's distribution. I would if I were your employee. How does your bookkeeper reconcile paying bills, if the cash is never brought through the books? Your employees will know what this is...and wonder when do they get their share. If they see you sneak a hundred, then is it OK for them to take a ten for a small screen on Saturday afternoon? After all, they have seen you do it.
But if they see you put a ten dollar bill in the till for a screen repair, they will too. How much do you loose through this shrinkage? Probably more than you save in your tax bill.
Talk with your accountant...he/she will show you how much each path benefits you. And the IRS does know that most small cash businesses, like ours, get creative on their accounting. It is probably not enough to trigger an audit, but if something else pops that red flag, be prepared for the worst.
For those of you who have a suitcase of cash somewhere...how do you sleep at night? I would stay awake waiting for the letter from the IRS. No amount of savings could make that enjoyable for me.
There is a difference between user fees that target small businesses and income taxes. There are way too many of these fees, from sign permits for your showroom, to getting a building permit to replace a toilet in your shop. These are way out of control at the local and state level, and there is no good answer on how to control or limit them. Maybe cut the spending of every government bureaucracy, or make the spending responsible with oversight by a small business person, and we would save enough to get rid of the fees every business owner feels.
You are a glass shop owner and a customer pays you with a crisp new hundred dollar bill. It is so tempting to put this in your pocket. I know. But look around. Your employees will see this at one time or another. And all it takes is one upset employee to drop that dime to the IRS and you have costs and grief far exceeding the Ben Franklin you saved. If you have a profit sharing plan, an employee will remember that money and ask if it is included in this year's distribution. I would if I were your employee. How does your bookkeeper reconcile paying bills, if the cash is never brought through the books? Your employees will know what this is...and wonder when do they get their share. If they see you sneak a hundred, then is it OK for them to take a ten for a small screen on Saturday afternoon? After all, they have seen you do it.
But if they see you put a ten dollar bill in the till for a screen repair, they will too. How much do you loose through this shrinkage? Probably more than you save in your tax bill.
Talk with your accountant...he/she will show you how much each path benefits you. And the IRS does know that most small cash businesses, like ours, get creative on their accounting. It is probably not enough to trigger an audit, but if something else pops that red flag, be prepared for the worst.
Saturday, April 5, 2008
What I Learned In A Restaurant
Last week I stopped in at the only restaurant in town for a cup of tea. It wasn't busy just then and I started talking with the owner. I asked her what nights she offered my favorite dish, Shepherd's pie. She told me it is made on Mondays or Tuesdays, usually selling out by Wednesday. I asked her why not on the weekends. She explained that this is a basic dish, ground hamburg, some veggies and mashed potatoes. She sells this dinner for $7.95 , but she creates weekend specials with lobster and steak, which are considerably more profitable.
What products or services are like this in our glass industry? Can we up sell products to help ourselves? Sure We Can!
Every glass shop should change their show room around every other month. Coming now into spring, put up signs about screen repairs. Hang some old screens, and show what a new one looks like...people will ask! Try to increase the sale by using charcoal screen, or wire to replace plastic! Do you sell screen rooms? If you don't--you should, and this is time to do it. (Google 'screen rooms' for manufacturers who sell to the trade) For spring cleaning, you will sell more IG replacement units where you should promote the benefits low-e. Speaking of spring cleaning, sell professional grade glass cleaner and your lint-free towels. You'll clean up with this one.
Do you do window tinting? Spring is the busiest season for reflective tinting to reduce heat gain. Go to 'windowfilmmag.com', start reading and find out why this is a great tool for profits at a glass shop.
With swimming pool season coming up, look at the outdoor railing systems offered by CRL. A glass company that offers this will make more money than a glass shop that sits around waiting for business to come in the door. Call on every swimming pool dealer in your area; ask them if they want to install glass wind screens, and if you only get one order, it sure is better than sitting around.
What was that you said "there is a recession out there, housing starts are down!" So go where the money is! Emphasize repair and remodel rather than new installs. Call on the remodeling contractors and you'll find the business you are missing from the new house builders.
Place an order for tempered, and for IG for the popular patio door sizes in your market, so you can replace ASAP for spring openings.
Baseball season is here. Major League tickets require a home equity loan, but if you lie near a minor league park, hook up some kind of promotion. Maybe, 2 seats with every low-e IG unit...or anything that you think goes along with spring.
Don't sit there playing solitaire waiting for business to walk in the door...go out, with your best foot forward, and you will gain business.
What products or services are like this in our glass industry? Can we up sell products to help ourselves? Sure We Can!
Every glass shop should change their show room around every other month. Coming now into spring, put up signs about screen repairs. Hang some old screens, and show what a new one looks like...people will ask! Try to increase the sale by using charcoal screen, or wire to replace plastic! Do you sell screen rooms? If you don't--you should, and this is time to do it. (Google 'screen rooms' for manufacturers who sell to the trade) For spring cleaning, you will sell more IG replacement units where you should promote the benefits low-e. Speaking of spring cleaning, sell professional grade glass cleaner and your lint-free towels. You'll clean up with this one.
Do you do window tinting? Spring is the busiest season for reflective tinting to reduce heat gain. Go to 'windowfilmmag.com', start reading and find out why this is a great tool for profits at a glass shop.
With swimming pool season coming up, look at the outdoor railing systems offered by CRL. A glass company that offers this will make more money than a glass shop that sits around waiting for business to come in the door. Call on every swimming pool dealer in your area; ask them if they want to install glass wind screens, and if you only get one order, it sure is better than sitting around.
What was that you said "there is a recession out there, housing starts are down!" So go where the money is! Emphasize repair and remodel rather than new installs. Call on the remodeling contractors and you'll find the business you are missing from the new house builders.
Place an order for tempered, and for IG for the popular patio door sizes in your market, so you can replace ASAP for spring openings.
Baseball season is here. Major League tickets require a home equity loan, but if you lie near a minor league park, hook up some kind of promotion. Maybe, 2 seats with every low-e IG unit...or anything that you think goes along with spring.
Don't sit there playing solitaire waiting for business to walk in the door...go out, with your best foot forward, and you will gain business.
Monday, March 31, 2008
How Much Is That Doggy In The Window?
A great song, but an even better lesson for glass shops! If the singer couldn't see in the window, he doesn't ask how much is the puppy, and the dog store doesn't make the sale. As you travel in your service area, take a look at retail stores--can you easily see in their windows? If customers can't see in, no sale! Stop, look and think how you could improve the look of their storefront.
If they have a fogged unit, jump in there and show what you can do. If their glass is scratched, it is an opportunity for you. If there is condensation around the window, with finger paintings on the glass, explain that IG will reduce the moisture, and more customers will be able to look in their windows. When you see a sun screen pulled down to prevent glare in the shop, point out how a blue, green or bronze glass would reduce glare without the reflective look, letting more customers see in.
If you see clothes or furniture in the window, they should be using lami because of it's great level of reducing ultra-violet rays. If you see a faded red chair that has to be sold at reduced prices, lami could pay for itself real quick.
You have seen many storefronts with no merchandise in them--the shop owner is afraid of the smash and grab--he is also not drawing in customers. Suggest Laminated glass to prevent a break through; you'll sell lami, and the shop owner will sell more of their product.
Starphire, by PPG, looks great in storefronts of jewelry stores and clothing stores. You can get laminated, tempered, insulated, or low-e Starphire that will improve the look of every retail shop.
On the other hand, if you see a sleek new store, glazed with a reflective glass, it may look great architecturally, but reflective glass scares away customers. People don't like to walk into stores where they can's see in. If there is a reflective glass in the door, there will be no traffic coming in.
So what is a glass guy going to do? Stop in at any store that is a candidate for a glass overhaul. Carry a brag book with you showing various store fronts that you have worked on, or and any good looking front in your town. Explain to these shop holders that you can give them a store front like this, a front that will be inviting to their customers to come in and shop.
If you are walking through a mall, stop in at the mall office and ask what the mall's rules are for replacing fronts. Can each store do what they want, or is there a policy of a certain look? Where creativity is allowed, go for it...this is an invitation for you to help these shops, and help your own business.
By the way--look at your own front...start at home and give yourself a makeover...someone coming in for a picture frame repair or a windshield may be a shop owner...let your own front be your display sample. Put a sign by the front, showing before and after pictures, and describing how a front can be put in with little inconvenience. Contact your main glass supplier and your main aluminum supplier to set you up with a special front in your store. It is the best advertising you can do!
If they have a fogged unit, jump in there and show what you can do. If their glass is scratched, it is an opportunity for you. If there is condensation around the window, with finger paintings on the glass, explain that IG will reduce the moisture, and more customers will be able to look in their windows. When you see a sun screen pulled down to prevent glare in the shop, point out how a blue, green or bronze glass would reduce glare without the reflective look, letting more customers see in.
If you see clothes or furniture in the window, they should be using lami because of it's great level of reducing ultra-violet rays. If you see a faded red chair that has to be sold at reduced prices, lami could pay for itself real quick.
You have seen many storefronts with no merchandise in them--the shop owner is afraid of the smash and grab--he is also not drawing in customers. Suggest Laminated glass to prevent a break through; you'll sell lami, and the shop owner will sell more of their product.
Starphire, by PPG, looks great in storefronts of jewelry stores and clothing stores. You can get laminated, tempered, insulated, or low-e Starphire that will improve the look of every retail shop.
On the other hand, if you see a sleek new store, glazed with a reflective glass, it may look great architecturally, but reflective glass scares away customers. People don't like to walk into stores where they can's see in. If there is a reflective glass in the door, there will be no traffic coming in.
So what is a glass guy going to do? Stop in at any store that is a candidate for a glass overhaul. Carry a brag book with you showing various store fronts that you have worked on, or and any good looking front in your town. Explain to these shop holders that you can give them a store front like this, a front that will be inviting to their customers to come in and shop.
If you are walking through a mall, stop in at the mall office and ask what the mall's rules are for replacing fronts. Can each store do what they want, or is there a policy of a certain look? Where creativity is allowed, go for it...this is an invitation for you to help these shops, and help your own business.
By the way--look at your own front...start at home and give yourself a makeover...someone coming in for a picture frame repair or a windshield may be a shop owner...let your own front be your display sample. Put a sign by the front, showing before and after pictures, and describing how a front can be put in with little inconvenience. Contact your main glass supplier and your main aluminum supplier to set you up with a special front in your store. It is the best advertising you can do!
Monday, March 24, 2008
How the Glass Business is Like The Start of the Baseball Season
Thirty teams start playing ball about now. It is the start of the season, last year is forgotten (unless you are a Mets fan), and everyone's batting average is the same. There are fresh faces to learn and seasoned pros handing down the secrets of their success. Everyone cheers on opening day, every team has a chance at the World Series (this year it will be Red Sox and Mets--trust me) and players and teams have a clean slate.
Can you start your glass business over, wiping the slate clean? Yes.
You can build a new enthusiasm with your employees and your customers which will translate to a higher level of success...here's how!
There will be some small amount of pain here, just like working out after a winter of hangin' around. Look at your customer list and change the terms on customers that pay later than 90 days. Change them to 1/3 with the order, 1/3 as you begin the job, and 1/3 at completion. Look at your small dollar and high maintenance accounts. Let's pick $200 as a cutoff, and all orders less than your cutoff point must be COD. You don't have the time to create an invoice, make three phone calls to check on payment, and be happy when the customer pays at 75 days, and takes a discount.
If you don't take credit cards, now is the time to start. Tell your customers that they can put their deposit on a card, and you will bill the final amount after the service is performed.
Also look at your small accounts to see, even if they pay promptly, if you are losing money. No matter how you slice it, sending a man and a truck to someone's home to repair a garage door window costs more than you are billing! Look at your minimum service charge...is it at least $75 in the center of the country, and at least $95 on either coast?
Now is the time to steer your company towards a niche. What do you enjoy doing, and can make a profit on? Shift your advertising towards this area of the business.
Look at your vendor lists. Every business in America has too many vendors. Begin to wean yourself off of most of the small vendors, even if you pay 5% more on your small purchases, you'll save in bookkeeping and transactional costs.
Go to your problem child employee. Sit down and explain that this is the start of baseball season, and last year is history. Give them a clean slate to start, whether on attendance or anything else. Give them a pep talk, that you want them to keep playing on your team, but now they have to step up to the plate and perform. You can't lose. If they perform you have a good employee. If they don't, send them to the minor leagues, away from your business, and go out and hire a free agent that wants to be on your team!
The single most important thing in your business, just like baseball, is attitude. Make yours happy and proud to be in the glass business. Your employees will mirror this and you and them will become better for it.
Can you start your glass business over, wiping the slate clean? Yes.
You can build a new enthusiasm with your employees and your customers which will translate to a higher level of success...here's how!
There will be some small amount of pain here, just like working out after a winter of hangin' around. Look at your customer list and change the terms on customers that pay later than 90 days. Change them to 1/3 with the order, 1/3 as you begin the job, and 1/3 at completion. Look at your small dollar and high maintenance accounts. Let's pick $200 as a cutoff, and all orders less than your cutoff point must be COD. You don't have the time to create an invoice, make three phone calls to check on payment, and be happy when the customer pays at 75 days, and takes a discount.
If you don't take credit cards, now is the time to start. Tell your customers that they can put their deposit on a card, and you will bill the final amount after the service is performed.
Also look at your small accounts to see, even if they pay promptly, if you are losing money. No matter how you slice it, sending a man and a truck to someone's home to repair a garage door window costs more than you are billing! Look at your minimum service charge...is it at least $75 in the center of the country, and at least $95 on either coast?
Now is the time to steer your company towards a niche. What do you enjoy doing, and can make a profit on? Shift your advertising towards this area of the business.
Look at your vendor lists. Every business in America has too many vendors. Begin to wean yourself off of most of the small vendors, even if you pay 5% more on your small purchases, you'll save in bookkeeping and transactional costs.
Go to your problem child employee. Sit down and explain that this is the start of baseball season, and last year is history. Give them a clean slate to start, whether on attendance or anything else. Give them a pep talk, that you want them to keep playing on your team, but now they have to step up to the plate and perform. You can't lose. If they perform you have a good employee. If they don't, send them to the minor leagues, away from your business, and go out and hire a free agent that wants to be on your team!
The single most important thing in your business, just like baseball, is attitude. Make yours happy and proud to be in the glass business. Your employees will mirror this and you and them will become better for it.
Saturday, March 15, 2008
The First Most Important Day in Your New Employee's Career
DUH! Of course the first day of work is the first most important day; the next most important day probably won't come for three months. A good manager will know after the first day if this new employee has potential, or will never make it. It's at that point that you already begin to lick your wounds and plan to start over.
Good interviewing techniques, reference checking and gut feel really do matter. Why then do some employees not succeed, if you've done a first-rate interviewing and hiring procedure. More importantly, what you and your company do on the first day of employment can help a newcomer to prosper and grow within your company.
The first day of work for anyone is filled with fear (Did I do the right thing leaving the other job?) (Will they take me back?), and filled with hope, (Wow, I am so proud the be in this new company!) (I can really show them what I can do, and they will appreciate me--not like the bums at my last job!). It is your job to accentuate the positive (If you know this song, like me, we are way too old!).
Be ready for a new employee on their start date. Don't keep them waiting for an hour while you take care of your morning chores. Greet them at the scheduled start of their shift. Don't introduce them to everyone that walks by...they will never remember and this will produce awkward situations...but focus on their immediate co-workers. An average person cannot remember more than 8-10 new names in morning or afternoon. Keep to this rule. Have an agenda for them...who they are going to meet and what their relationship will be. Have their immediate supervisor take over from you to show them around. If a person is going to be in the office, take a short period to show them the back, and vice-versa with a hands-on glass person. Don't let it start out being 'us' and 'them' from the first day. Spend time going over the legal niceties of the job..handing out the employee manual, and going over it; filling out paperwork for government needs, taxes and immigration control; and filling out your paperwork such as receipts for equipment given, safety programs and standards, and emergency contact info.
The next step is for the supervisor to take them on an in-depth tour of their working area, going over responsibilities and duties. Even with the hire of an experienced person, your flow of paperwork will need teaching.
Before a new person starts, select a current employee to act as their 'buddy' for the first couple of days. This buddy should be someone who will work in the same general area, and have the same background. The buddy should explain the unofficial rules---when and where the coffee truck comes, where the bathrooms are, the pay phone and the little ins-and-outs of the day to day job. The buddy should invite John Newcomer to lunch with him, where Newcomer can meet the others in the work group. A sure predictor of failure is to see a new person, sitting by themselves eating a sandwich. Mr. Newcomer will be thinking about how he can go back to his old job if he is sitting there alone. The buddy should be available for questions on how checks are given out, the rules for getting O/T, and the little quirks that every company has. Pick the buddy carefully. Pick someone who believes in the company and the role they play in it. If you pick the right person for this first day you will have a greater percentage of employees who survive the first week of employment.
Take time during the first couple of days to really explain the company history getting Mr. Newcomer to buy in to the company culture. Make him feel a part of the company from day one. Yes, you should still place John, like all new employees,on a standard new employee schedule...a period of probation along with short reviews, giving and asking for feedback.
When you go out to the plant confirm that Mr. Newcomer is completely following your safety program. This is a habit which has to be reinforced right away. Workers comp accidents occur more with new employees. Its obvious, but you can work to reduce this right from that first day. Ask Mr. Newcomer to come back to you at the end of their first working shift, seeing how the day went and answering questions.
Treat each employee like they are family from the first day...don't wait for a month to see if they will make it. Each new employee is a potential treasure for your company...treat them fairly from the very first day and both you and Mr. Newcomer will be happier.
Good interviewing techniques, reference checking and gut feel really do matter. Why then do some employees not succeed, if you've done a first-rate interviewing and hiring procedure. More importantly, what you and your company do on the first day of employment can help a newcomer to prosper and grow within your company.
The first day of work for anyone is filled with fear (Did I do the right thing leaving the other job?) (Will they take me back?), and filled with hope, (Wow, I am so proud the be in this new company!) (I can really show them what I can do, and they will appreciate me--not like the bums at my last job!). It is your job to accentuate the positive (If you know this song, like me, we are way too old!).
Be ready for a new employee on their start date. Don't keep them waiting for an hour while you take care of your morning chores. Greet them at the scheduled start of their shift. Don't introduce them to everyone that walks by...they will never remember and this will produce awkward situations...but focus on their immediate co-workers. An average person cannot remember more than 8-10 new names in morning or afternoon. Keep to this rule. Have an agenda for them...who they are going to meet and what their relationship will be. Have their immediate supervisor take over from you to show them around. If a person is going to be in the office, take a short period to show them the back, and vice-versa with a hands-on glass person. Don't let it start out being 'us' and 'them' from the first day. Spend time going over the legal niceties of the job..handing out the employee manual, and going over it; filling out paperwork for government needs, taxes and immigration control; and filling out your paperwork such as receipts for equipment given, safety programs and standards, and emergency contact info.
The next step is for the supervisor to take them on an in-depth tour of their working area, going over responsibilities and duties. Even with the hire of an experienced person, your flow of paperwork will need teaching.
Before a new person starts, select a current employee to act as their 'buddy' for the first couple of days. This buddy should be someone who will work in the same general area, and have the same background. The buddy should explain the unofficial rules---when and where the coffee truck comes, where the bathrooms are, the pay phone and the little ins-and-outs of the day to day job. The buddy should invite John Newcomer to lunch with him, where Newcomer can meet the others in the work group. A sure predictor of failure is to see a new person, sitting by themselves eating a sandwich. Mr. Newcomer will be thinking about how he can go back to his old job if he is sitting there alone. The buddy should be available for questions on how checks are given out, the rules for getting O/T, and the little quirks that every company has. Pick the buddy carefully. Pick someone who believes in the company and the role they play in it. If you pick the right person for this first day you will have a greater percentage of employees who survive the first week of employment.
Take time during the first couple of days to really explain the company history getting Mr. Newcomer to buy in to the company culture. Make him feel a part of the company from day one. Yes, you should still place John, like all new employees,on a standard new employee schedule...a period of probation along with short reviews, giving and asking for feedback.
When you go out to the plant confirm that Mr. Newcomer is completely following your safety program. This is a habit which has to be reinforced right away. Workers comp accidents occur more with new employees. Its obvious, but you can work to reduce this right from that first day. Ask Mr. Newcomer to come back to you at the end of their first working shift, seeing how the day went and answering questions.
Treat each employee like they are family from the first day...don't wait for a month to see if they will make it. Each new employee is a potential treasure for your company...treat them fairly from the very first day and both you and Mr. Newcomer will be happier.
Subscribe to:
Posts (Atom)
