All aboard

©iStockphoto.com/DNY59Labor is the single greatest expense for landscape companies. And when the going gets tough, labor is often the first item slashed to preserve profits. But letting go of valuable employees may cost more than an owner realizes.

“We have a lot of long-term employees, and the reality is, they’re more valuable to you the longer they stay with the company,” says Kevin Marko, landscape division manager at Chalet Landscaping in Chicago.

Before you do anything, talk openly to employees about the company’s situation and what measures are necessary to preserve its success for the future. Help them understand that you want to do everything you can to make things work for the company and employees.

Trimming back labor hours by moving to a four-day workweek was one solution for Marko and the two other business owners we talked for this month’s Business Briefcase. So was cutting hours, letting attrition ride its course, and transferring employees from less profitable divisions in a company to busier departments.

All this change can upset employees who are used to lots of overtime and the same-old schedule. The key to introducing a new schedule – or letting people know that layoffs could be a reality – is to level with employees. Don’t be embarrassed to tell them you haven’t taken a paycheck in three months.

Tell them you understand how tough it will be to take a pay cut or work fewer hours. Employees see the owner driving around in the same car, going to the same home and they don’t necessarily realize that the owner is going through tough times him or herself.

Owners almost always take a pay cut or forfeit pay entirely before pulling back hours and dollars from their valued workers. But how many owners share this fact with their staffs?

Honesty goes a long way toward getting all of your employees on board as you manage labor expenses and keep strong employees on your team. The more employees feel they are part of the solution, the less of a problem they will be when decisions are made.

This month, Lawn & Landscape spoke with three landscape firms to learn how they adjusted work schedules and trimmed labor expenses while keeping their star players.  

The author is a freelance writer based in Bay Village, Ohio.