No Margin for Error

July 10, 2009

David Katz runs a tight labor force and hires beyond skill – a good attitude reigns over 20 years of industry experience, in his opinion.
Photos by Michael Polito PhotographyDavid Katz got his MBA the winter of 1990 – not the business degree, but a harsh lesson learned when he spent $150,000 to retain a band of bright-eyed college graduates until spring. He paid for health insurance, holidays, sick time and personal days. “I invested a great deal of money to keep the staff on when we had a brutal winter,” relates Katz, president, Elite Landscaping, Wappingers Falls, N.Y.

“That really was not something we could afford,” he remarks.

He assigned these talented, young landscape design graduates to tasks such as fixing equipment and organizing the new facility. Meanwhile, Katz was financing a fast-growing firm, investing in machines, phone systems, computers – the works.

Katz never missed payroll. But by the end of winter, his savings cushion was long gone and it would be 10 years before he recouped from the labor expense.

Today, Katz has eight full-time employees, and he admits to being a micro-manager. “Not because I don’t trust people, but because I know how quickly things on a job site can go astray,” he explains.

Elite Landscaping is a boutique firm that rarely relies on subcontractors. In fact, Katz is one of 225 professionals in the country certified by the Association of Pool and Spa Professionals. “I’m everywhere, on every job we do, and we may be doing one to five jobs each day,” he says.

At one point, Katz employed 38 workers in season. That roster has diminished drastically, a “correction” similar to the one the U.S. economy is facing.

Katz maintains a tight labor force, and he hires based on attitude and aptitude – not just skill. He references the book Fire Up Your Employees and Smoke Your Competition by Jay Forte. “Everyone has a forte, so to speak – their natural gifts,” Katz relates. “That is what you need to find.”

To Katz, a great attitude is worth 20 years of experience. To that end, he compensates employees based on performance, so regardless of how long an employee has worked in the industry prior to joining Elite Landscaping, pay is based on results – not a fancy resume.

The tricky part about hiring for attitude, though, is ensuring enthusiastic employees are just as energetic about hitting performance goals as they are about introducing new ideas to the company. Because once the “sugar rush” is over, and it’s time to implement those big ideas dreamed up with such gusto, some employees will start looking for another company where they can “honeymoon.”

“I try to offer people opportunities in training, experiences and exposure to different projects to keep them motivated,” Katz says. “But you need to reign that back in and hold them accountable because you have a specific agenda to accomplish.”

Planning is more fun than procedure. Katz wants employees who appreciate both and stick with the company.
He learned this the hard way, after the first round of college graduates he hired used his company as a launch pad to their next green industry gig.

Today, Katz screens candidates with technical and philosophical interview questions: List as many parts in an irrigation sprinkler system that you know. What was your worst job position and why? What was the best job you had and why? What was the longest work week you ever had? Explain that in total hours. If you could create an ideal position, what would that be and why?

“Expect the process to take time,” Katz says, adding “years in business teach you skepticism and caution.”