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[VIDEO] Overcoming Customer Objections

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When thinking through how to overcome customer objections, its important to remember that objections are normal! No one wants to spend more money than they have to, or make investments in areas that they can’t personally see as being necessary. However, this can be overcome with planning and strategy. Today’s leading contractors are able to find customer “hot buttons” and cracks in their own business strategy to find ways to push back against customer objections without alienating key clients.

In just 2 minutes, learn five tools you can use to overcoming objections from customers!

https://vimeo.com/160419459

REMEMBER: You can watch all of our 2 Minute Drill series at videos.pinnacledg.com, and you can download the Pinnacle Development Group App to watch your training videos on any iOS, Android, or Windows device.

 

 

Strategic Planning, , , , ,

7 Steps to Worker Retention: Performance Review

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It seems that some contractors would rather not give an employee, who is struggling, an excuse to leave due to the accountability of a Performance Review. Funny thing however, most good workers, even those who can slip occasionally, want their performance to be assessed and discussed. They welcome this opportunity and the accountability that can come with its results. It’s only the lazy and contrary workers who breathe easier if they can live without any accountability.

Learn more by listening to Responsibility Enhancement!

 

[TRANSCRIPT]

We have arrived at the seventh and final installment of articles on the very critical topic of worker retention.  During the time period I’ve spent writing this series (6-8 weeks), I have been contacted by a number of contractors on this very important topic.  It would appear that at a time when the signs of increased construction may be upon most contractors, just as pronounced are the challenging signs of finding and keeping effective workers.

What makes Step #7 – Performance Review so critical for our consideration is that it may be as much of a review on how well we have executed Steps #1 – #6 as it is reviewing the performance of an employee.  For a quick and final review of the first six steps, consider the topics that were addressed over the past six “chapters” of worker retention.  (The first six steps are archived for your review.)

Step #1 – “On-Boarding”

Step #2 – The 90-Day Plan

Step #3 – Skill Training

Step #4 – Coaching & Mentoring

Step #5 – Engagement/Participation

Step #6 – Responsibility Enhancement

Step #7 – Performance Review

Let’s first clarify what this article is not going to address.  I am not going to recommend a formal document to use when conducting a performance review.  There are as many templates and formats for performance reviews and appraisals as there are contractors.  Many are part of elaborate and expensive software packages or Internet services, developed in a way that an in-house employee, often the HR Manager, can easily oversee.

My quick word on this point: find or develop a document that is easy to use for both the leader conducting the review and the employee receiving the review.  You’ll seldom find the perfect template or supporting system but you’ll be years ahead of many contractors by embracing a system and document…and then just “struggle forward.”

My purpose for this article is to provide insights on WHY to conduct performance reviews; HOW to conduct more meaningful reviews; and, WHAT the reviews should cover and address.  Remember, while performance reviews should be conducted on all employees as a normal part of their continued employment, the Performance Review is an especially important tool in assisting contractors retaining their workers, especially the new workers.

First, let’s approach the WHY to conducting performance reviews.

When a new worker first begins their employment, they often ask three questions:

  • “What’s my job?” (Job Roles & Responsibilities)
  • “How am I doing?” (Performance Review)
  • “Who cares?” (Leader’s Involvement & Feedback)

Even the “Carp-Worker” wants to know what the contractor thinks of them and their performance.  However, since the majority of construction workers will be more like the “Fence-Sitter or Thoroughbred,” (i.e. Together these two groups make up about 80% or more of most construction companies.) new employees like to get a feel for how their leaders are viewing their performance.

The WHY of conducting performance reviews allow the new employee to assess where they are on the learning curve compared against where they thought they would be.  It’s not uncommon for workers, especially those who are objective and sincere, to have a self-imposed expectation for their performance progress.  Such workers are a joy to have working for a contractor.  He or she can often nail down 99% of what their actual performance results are without getting it first confirmed by the contractor.  Good workers know where they stand in their development and growth but the Performance Review allows them to confirm what they think and what their leaders are seeing; realizing that future opportunities are often tied to how an employee is observed to be performing.

The WHY also allows the contractor to assess how well they have executed On-Boarding, the 90-Day Plan, or provided the Skill Training, aka Steps #1 – #6.  It’s important that contractors assess how well their employee retention strategies and tactics are working, looking to adjust and tune-up any effort made and to make it better.  The Performance Review can expose weaknesses in a contractor’s approach as well as highlight good efforts that need to be maintained.

The HOW to conducting the Performance Review is perhaps as important or more to address than the WHY and WHAT together.  So, let’s camp out a few minutes on this very important effort that contractors must strive to perfect.

Facts, actual and credible examples, and first-hand observations are all important to bring together at the Performance Review.  It is the HOW to bring them together to be meaningful, accurate, and sincere that we need to address here.  Consider several ways to execute the HOW.

  • Provide a “mini-version” of the Performance Review prepared and executed at the first 30, 60, and 90 days of a new employee’s tenure. This review may not be as exhaustive as the annual review format but it educates a new worker on early progress and prepares the worker for what will become an annual event.
  • Always conduct the Performance Review in private setting to allow and reinforce privacy and a comfortable presence.
  • Always have prepared examples of observations made of the employee’s work practices or behavior.
  • Allow the employee to complete a “self-assessment” form of the Performance Review document, if the same document is not used. (I recommend having your employees complete the same document that the leader will be completing to better benchmark the similarities and differences.)
  • Always provide several positive observations along with areas needing attention. While there does not have to be a “1:1” ration of positive to negative comments, it is important that the employee knows that they are not a total and major “screw-up.”  (Unless they really are!)
  • Encourage the employee to ask questions about their concerns or need for clarification.
  • Encourage open discussion of those observed areas that the employee may feel different than what was noted on the Performance Review.
  • Always include a discussion about performance and behavior expectations. The leader should make this effort very clear if the employee has fallen from what is required or from his or her own previous positive “standards.”
  • IF the Performance Review is expected to be primarily negative in substance, it might be wise to have two leaders participate in the discussion. Likewise, be sure to allow more time for the Performance Review as the final portion may be more coaching, counseling, documenting discipline, or a combination of all three efforts.
  • Should the employee demonstrate “boiling” frustration, even anger, be prepared to take the discussion in sections. This can allow a bad tempered worker the time to calm down, in effect, taking the steam out of their anger.
  • IF the Performance Review is going to be a “Perfect 10” discussion, do not cheat the good employee by short changing the setting of developmental goals, with action plans. The tendency is just to tell the “10” to, “Just keep up the good work.”  Great workers do not always welcome such feedback.  My experience is that the best workers want to be challenged further to grow and expand their skills, knowledge, and presence of responsibility and visibility.
  • Always include a proactive goal setting effort with the employee. The goals can be on technical, attitudinal, or behavior in scope but need to be created for every worker.
  • Include a brief but clear action plan that further drives goal achievement. This effort should provide what action the employee will take, what support effort will be provided by leadership, and what resources will be needed.  The time line for achievement should bump up against the next scheduled Performance Review.
  • A copy of the Performance Review should be kept in the employee’s personal file in HR. While the employee may have their own copy, what is more important for them to have is a copy of the goals and action plan that was created.
  • Conclude the Performance Review with words of encouragement, no matter if the review was positive or negative in nature. Employees, even those struggling, can often strive to improve when they capture the sincerity of a contractor, or the leader, who conducted the Performance Review.

The suggestions just presented, while exhaustive, barely touch all that can be considered part of the HOW to conduct the Performance Review.  It is important first to conduct a Performance Review on each employee, no matter how long his or her service with your company has been.  While this effort takes time to complete, it is very critical to the overall retention of employees to be consistent with conducting regular Performance Reviews. 

One additional thought on the HOW to conduct the Performance Review.  Depending on the size of your construction company, I would recommend a minimum of one Performance Review per year.  The new employee may receive 2-3 “mini-reviews’ just in their first ninety days as presented earlier, but the employee who has passed their probationary time should expect to receive at least an annual review.

Now, let’s turn our attention to WHAT should be addressed in the Performance Review. 

The WHAT of any Performance Review should, at the minimum, include the following areas for inclusion in the review effort.

  • Past performance and productive positives since last Performance Review should be included so both employee and their senior leader recognize growth and development.
  • Observed “negatives,” or opportunities for improvement (OFI), that need to be addressed, corrected, and improved.
  • Specific areas that the employee is to be assessed and reviewed. This might include areas such as: technical skills; job related skills and knowledge; behavior with co-workers, leaders, clients, and vendors; problem solving skills; attitude and their effort to improve; attendance history and adherence to company policies; etc.
  • Tied to all of the above is the future effort that needs to be addressed for the employee. This includes the setting of improvement goals and the appropriate action plan of items to accomplish the goals.
  • As presented earlier, there should be a “self-assessment” effort provided the employee. While the same Performance Review document to be used by the leader can be provided to the employee to use, it doesn’t necessarily have to be the exact same document.  No matter your document, it is important to include the employee’s completed assessment in the Performance Review

The WHAT is rather simple to execute.  The actual document used needs to be simple to understand, with enough room for writing observations and opinions, and future thinking enough that both the leader and employee are projecting where the employee needs to be by the next review time.

Some final thoughts on this seventh and last step to employee retention.  Unfortunately, the smaller the contractor, general or specialty, the less I see contractors conducting any form of a Performance Review.   I see this as both unwise from an employee growth strategy and as a way to retain workers, especially the better workers.

It seems to me that some contractors would rather not give an employee, who is struggling, an excuse to leave due to the accountability of a Performance Review.  Funny thing however, most good workers, even those who can slip occasionally, want their performance to be assessed and discussed.  They welcome this opportunity and the accountability that can come with its results..  It’s only the lazy and contrary workers who breathe easier if they can live without any accountability.

As I have written in an earlier article for this series, it’s not a matter of using one or two of the seven steps.  Instead, it’s very important that all seven steps are executed.  Unless you are ready to experience 10% – 20% of unnecessary turnover, integrating the “7 Steps” into your company’s strategy will retain workers and will help you fight off what looks to be a very challenging shortage of construction workers.

Review your Performance Review to improve your company’s performance!

Employee Development, , , , , ,

[AUDIO] The 7 Steps: Responsibility Enhancement

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When a new worker has come on board there is an expectation that it will take a period of time for the employee to learn their job, learn about the company’s work culture, work processes, and to learn about their new co-workers.

In this episode, learn how you can increase your employee’s responsibility over time to enhance your worker retention.

 

TRANSCRIPT:

We continue working through The 7 Steps to Worker Retention as provided in this seven part series of articles.  In today’s effort we zero in on our sixth effort called Responsibility Enhancement.

The first five steps to employee retention have already been presented and can now be found in the archive if you have missed one.  For a quick review of all seven steps again, the following provides a reminder to the components addressed to strengthen the retention effort with today’s workers.

Step #1 – “On-Boarding”

Step #2 – The 90-Day Plan

Step #3 – Skill Training

Step #4 – Coaching & Mentoring

Step #5 – Engagement/Participation

Step #6 – Responsibility Enhancement

Step #7 – Performance Review

While our approach in this series has been directed at the new worker, many of the steps, especially Steps #3 – #7, are really applicable for all workers.  (The second step, The 90-Day Plan, could be utilized for any employee who has just assumed a new job title or function.)  Now we specifically address our next step, Step #6 – Responsibility Enhancement, which will prove to be a critical action for contractors to employ, not only to gain greater retention, but to also raise performance results and profitable work.

Before we explore how to give more responsibility to a worker, a question that should be asked is:

Why is giving responsibility to a worker important

to the employee retention discussion?

Briefly, when a new worker has come on board there is an expectation that it will take a period of time for the employee to learn their job, learn about the company’s work culture, work processes, and to learn about their new co-workers.  Obviously, this can involve a different range of days, weeks, or months depending on the individual and, as we’ve addressed in the first six articles, on the contractor.

Again, having an “On-Boarding” effort prepared and executed, developing a stronger Skill Training effort, along with the other steps we’ve presented, can all make a very positive impact on the new worker’s “company embedding” experience.  But what impact does giving an employee more responsibilities have on their remaining longer with their contractor?

The single most important reason is related to the fact that most workers want to progress in their jobs.  Perhaps not progress in reaching a higher-level role or position such as becoming a foreman, a project manager, a vice president; they may not want to be an owner of their own company some day.  Progress, in the context of how we’re using it here, is more related to just wanting to know more about how to perform their current job, at least to a greater level where others don’t think of them as being unskilled or worse, “stupid.”

So, one of the proofs that a worker is progressing in the organization, growing in their capabilities and skills, is when the individual can begin to receive tasks that require a higher level of responsibility to accomplish.  Another “proof” is when that same individual is thought of as trustworthy, capable of working independent of having a leader standing right over them as they work.

Most of the better workers we might employ want to be sure of their efforts, confident that what they do each day is right, appropriate for the need, and accomplishes some end result that produces quality, safe, and profitable work.  Workers who experience such things are more often satisfied with themselves and more likely to stay with the contractor who has enabled them to feel and experience such things.

If this sounds a bit crazy, just consider some comments that I’ve collected from employees who quit their contractor.

  • “My boss never gave me anything more difficult to do.”
  • “She didn’t show me what she was expecting.”
  • “I never really knew what I was supposed to do and why.”
  • “They just threw me in there and expected me to figure it out myself.”
  • “Geez, the contractor made me feel like a child, standing like right over me when I was working.”
  • “The contractor never gave me a chance to learn another position.”
  • “He was the only one that ran the equipment; he never let me even try to learn how to operate any of the equipment.”

Now, just because an employee wants to learn how to operate a backhoe or to run a paver doesn’t mean that their contractor should give them the chance to learn.  However, when better employees are limited in what they can learn, when they are prevented from taking on more difficult challenges and responsibilities, these better employees often look to leave.  Such motivated workers rarely remain with a contractor for long if they’re not being given the opportunity to grow.

So, when does a contractor begin to add more responsibility to a new worker?  The answer I hear the most from contractors is,

“Whenever the employee demonstrates

that they are ready for more!”

But here in lies another challenge for many contractors:

  1. What does a worker have to do to “demonstrate” that they are ready?
  2. What does “ready” mean?
  3. Does “more” mean more physical work, more responsibility, or more of both?

For some contractors, such considerations never really cross their minds.  A new worker is hired and immediately exposed to “How we do things here,” and then expected to pick up the unique processes and how-to’s used by the contractor’s other employees.  If the new worker picks things up quickly, great!  If they don’t, the new worker may be teased, harassed, ignored, or simply fired because “they just didn’t learn fast enough.”

While all new workers will not always work out for the long-term, a good percentage of new workers are often not given the chance to hang around long enough to prove what they can grow to become.

So, what might be some considerations that a contractor should make about their new workers before they move on to either separate the worker from the company or move further to add to the worker’s responsibilities?  This really falls in line with how a worker might “demonstrate” their readiness to take on more responsibility.  Consider using the following techniques when observing.

  • First, realize that every worker is unique and different, possessing different learning styles.
  • Go back and really execute Step #1 – #5. There is simply no excuse for orientation, training, coaching, etc.
  • Get a feel earlier about what the worker wants to do; what they want to accomplish; and what they feel most comfortable and confident in doing?
  • Try out a new worker on some different job functions; confirm what they appear to be good at with actual work results.
  • Notice the response of a new worker after they’ve made a mistake. Do they…run away, want to try again, shut down because they are depressed, etc.?
  • How late do they arrive to work, return from breaks, pack up and leave at the end of the day?
  • What questions do they raise about their current job function?
  • Does the employee volunteer when given the chance to learn a new job task or to join a crew that will be challenged with greater amount of difficulty?

I think you get the idea here about what signs might be observed from a worker projecting their interest or focus on growing in their current role.  Let’s not place any super high expectations on their effort or progress, but we should recognize some of the items listed above.

The second question, presented in a series of three questions, presented earlier asks, “What does ‘ready’ mean?”  Not real sure that this is a very complicated effort made by the contractor to determine a worker’s readiness, but here are just a few things you might make note of.

  • Employee is definitely performing work with greater confidence
  • Employee is assisting others in a task that they have completed in the past
  • Employee is asking fewer “How to” questions
  • Employee actual work results are reaching very good to excellent like status…regularly
  • Employee is teaching or coaching others on how to execute a task or complete a process
  • Employee’s next senior leader is very comfortable with and confident in the employee’s effort
  • Employee may be filling in for their leader for short periods of time
  • Employee has directly informed the contractor that they’re ready for more
  • Contractor clearly recognizes that the employee is ready for more and can provide greater value to the company by being in a different role with greater responsibilities

The third question presented earlier invites the contractor to considering how much “more” can the employee take on and, does this only suggest more physically only, or more responsibilities, or some combination of both?  Well, depending on the next level of responsibility that an employee might take on, the answer is most likely both.

Whether your employee is a laborer, crew foreman, lead person, superintendent, or department manager, almost any additional responsibility will require an increase in their physical effort while also assuming more responsibility for their work performed.  But for the worker desiring greater responsibilities, recognizing that additional focus, acquiring better skills, spending more time reading or being educated, etc. are all just part of getting more on one’s plate.

Responsibility Enhancement is less about dumping more “stuff” on workers and more about contractors really recognizing the readiness of a worker for growth and responsibility.  The contractor who takes his or her time studying their employee’s strengths, weaknesses, likes, dislikes, and the employee’s future goals and expectations is the contractor who will be much wiser in preparing their workers for greater responsibilities.  Such a contractor is simply going to retain their workers longer and drive performance improvements, and the profitability that often parallels such improvements, more consistently over time.

A final area to consider that may not always be so upbeat and positive.  What happens when a contractor tries to properly “enhance” their employee by giving to them greater responsibilities…and the employee’s fail?  While this can be frustrating for both the contractor and the worker, this isn’t the end of the story.

Anytime a worker, especially a newer worker, is to be given greater responsibility, they should be totally prepared.  The contractor should of course educate and train the worker on their new duties, tasks, and responsibilities.  But included in this effort should also be a discussion with the worker about the, “What if this doesn’t work out?” possibility.  You can’t cover all of the possible bases but let me speak to a few ways to address this with greater confidence and success!

  1. Let the employee know that failure at the “new” effort does not mark them as a failure. (Give them credit for wanting more responsibility!)
  2. Encourage them that, “I will support your new effort.” It’s amazing how this moral support inspires workers to make the extra effort to do their very best!
  3. Communicate to others to buy-in to support the worker expanding their “belt of responsibility.” Hey, let the other workers know that you respect those who are willing to take on “more.”
  4. IF the worker does in fact fall flat on their face, coach them ASAP about their not losing faith in themselves, you, the company, and in their position with your company.
  5. IF the “failure” really needs to adjust the employee back to a previous level of responsibility, communicate with them that this is good and that, “We need winners at all levels of the organization.”

I can’t help but to share a technique that I’ve used personally and have taught contractors across the world to use when they are considering the promotion of a worker to a crew leader’s role.  (This technique can be applied in almost any situation.)

Pre-Promotion Preparation (3P’s)

As part of the preparation to promote a worker, share with them personally that you will support them 100% in their learning and adjusting to their new role.  You also want them to consider a 90-day trial.   This time allows both you, and the employee, to consider whether or not the new position is really for them.  If they determine at the end of 90 days that they just don’t feel good about the increased responsibility that they’re just not cut out for it like they may have thought previously then their “old” job is still there for them.  Also, at the end of 90 days, should the contractor recognize and feel that the new job just doesn’t seem a good fit for the employee, the employee will return to his or her previous role.

Additionally, part of this “3P” effort includes communicating to those individuals working with and for the employee, in their new and more responsible position, that the employee has agreed to a 90-day trial.  Also, that IF, at the end of 90 days the employee determines that they really do not want the new role, that they are free to return to their current position, with absolutely no bad feelings on your (the contractor’s) part.  This last effort is to protect the employee from those who might tease or ridicule the worker if they do fail in their new promoted role.

I’ve used this effort on numerous occasions and I can tell you first hand that, in those cases where the promotion did not work out favorably, there was less embarrassment for the “failed try.”  I felt that it was more important to protect the employee who at least had the guts to try to improve themselves over those who are too scared to try anything that might require a bit more effort.

By the way, the construction industry as a whole has been brutal to those whom they’ve promoted in the past.  Rather than allow the employee who promoted to a higher-level position, and failed, to return to a previous level of responsibility, many contractors have separated ways, terminating the worker.  This is a double negative in that we have lost a good worker, or at least one that we at one time considered good, and we’ve proven to the remaining workers that it’s not worth getting a promotion unless you want to be fired if you don’t produce.

Sorry for the extended presentation here but this sixth step is very important to retaining good workers in today’s construction companies.  As contractors, we must take serious the effort to Enhance Responsibility taking from workers without pushing them into a greater role that we may not prepare them to complete or worse, leave them in a boat without any “oars” to survive the rapid waters.

You want to retain workers?  Train them, growth them, support them, but certainly, engage them in taking on greater responsibility but be strategic and deliberate in your efforts.

Employee Development, , , ,