The problem has become so severe and is so prevalent that it’s almost a cliché now – green industry contractors can’t find labor, and there’s no two ways about it.
“In order for a company to grow, other than having the market available, which, for most of us isn’t a problem, the necessary mechanisms to have in place are labor and management,” noted Mike Rorie, president, Groundmasters, Cincinnati, Ohio. “Do you have the workers to do the work and the managing tools in place to manage the work competitively so you can get it and keep it?”
EMBRACING NEW SOLUTIONS. One solution to Groundmasters’ labor problem has been opening its doors to the Hispanic workforce a few years back, despite the uniqueness of this idea for a Midwestern market.
“Once we broke the $3-million mark in 1995, I realized that we would have to employ Hispanic workers,” Rorie noted. “I had thought it would be a long time before this trend hit the Midwest, but when I looked around the country I saw that any company doing more than $5 million was using Hispanic labor.
“We had a great year in 1996 with a lot of growth, and it came down to the fact that our limiting factor was a lack of labor,” Rorie continued. “We decided at the end of 1996 that we were going to introduce Hispanic employees to our workforce after July 4 of the next year.”
Rorie explained that this date was selected because the busy spring season would be over by then and the company wouldn’t be distracted.
“But we were busier than we expected that spring, so we accelerated the implementation and began in April,” he added.
The first challenge then was to find a source of Hispanic labor, so Groundmasters turned to what it deemed a reliable source familiar with the local Hispanic population – the Cincinnati Hispanic archdiocese.
“When we first went to the parish, we told the priest we needed legal workers and not a short-term solution to a long-term problem,” Rorie recalled. “Once we selected the first seven or eight workers, we brought them to Groundmasters and put them through a two-week field training course on the basic job functions from floral installations to operating a mower. Then we dispatched those guys to various crews and brought in seven or eight more.”
Hispanic employees are treated exactly the same as non-Hispanic employees at Groundmasters, receiving the entry-level package of a $7 an hour wage, uniforms, a pager, health care availability after 500 hours of work for a bonus and 401(k) after 12 months.
In order to deal with the communication barriers that exist, Groundmasters hired a Spanish-speaking interpreter to be in the offices every morning and evening when the crews are starting and completing their day. That way account managers and foremen can be sure the Hispanic technicians have a clear understanding of anything that needs to be communicated to them. In addition, the interpreter offers English classes one day a week after work to Hispanic employees and is available to travel to a job so a foreman can discuss a job or an employee’s performance specifically.
“We also hired someone to provide us a training class that helped the non-Hispanic employees better understand the Hispanic culture,” added Jim Bishop, operations manager. “That was important because the cultures are very different and that influences the employees’ approach to work. For example, Hispanic employees are much more focused on the immediate future and their compensation for next week instead of the long-term future and things like 401(k) programs.”
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“Finding employees is the greatest challenge for all labor-intensive employers, whether you’re TruGreen-ChemLawn, Environmental Care, Wendy’s or anyone else,” observed Mike Rorie, president, Groundmasters, Cincinnati, Ohio. “The reality for us is that going to a Hispanic workforce became necessary because the supply and demand of labor are on opposite ends of the spectrum,” Rorie continued. “And this is a problem that isn’t going to be solved with just money. “I think we need to learn from what has taken place in the manufacturing industry,” he added. “Manufacturing has gotten unbelievably high tech even though doing so requires tremendous capital investments to accommodate these plants. But the overriding factor for them is that now they’re not as dependent on people, and the less dependency you have on people, the easier it is to manage your business.” – Bob West |
After two seasons of using the Hispanic workers, Rorie said he has never questioned that decision. In fact, after having a workforce comprised of about 25 percent Hispanic employees in 1997, that number grew to almost 40 percent in 1998.
“The upside vs. the downside isn’t even measurable,” he maintained. “These employees have given us tremendous flexibility in terms of growth, and their availability to us is unlimited.
Groundmasters hasn’t had any significant problems dealing with illegal immigrants thus far, either.
“We recognized that a few of the potential employees probably weren’t legal although they had the right paperwork,” Rorie recalled. “To us, the threat wasn’t about being raided, but it was that we could be training workers that could go away suddenly and we’d be left with nothing.”
His goal for the future is to maximize the productivity of Hispanic employees by promoting some into foremen positions.
“When we get Hispanics managing Hispanic crews is when we’ll really start accomplishing some great things,” he predicted.
“Because we use Hispanic employees, I pay more attention to state and federal legislation involving them,” Rorie added. “And what the government loses track of is that yes, these people need to be brought into the company legally, but there is no one else to do the work they’re doing. They are not a threat to Americans working.”
BENEFITTING WORKERS. In addition to turning to legal immigrants to grow its workforce, Ground-masters also strives to retain its workers by paying them well and offering them a host of attractive benefits.
“I think we’re competitive at the high end in terms of what we pay,” Rorie stated, adding that Groundmasters’ heavy dependence on equipment allows it to keep payroll costs to 23 percent of total revenues. “Some companies may pay more, but in terms of offering overall work conditions and benefits that go a long way toward retaining employees, we feel we’re the place to be.”
At the same time, Groundmasters looks for ways to deliver more money to its employees without increasing its own costs.
“We ‘trade’ the employees money for activities that reduce damaged equipment, injury claims, indirect time or poor workmanship in the form of bonuses,” Rorie noted. “If we can move some of the money that would have been spent in those areas to additional rewards for employees then everyone benefits.”
The author is Editor of Lawn & Landscape magazine.
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