Go to Frank's home page by clicking below

Saturday, June 11, 2011

Motivating Younger Employees


There was a time when most people looked at their job as a reflection of who they are as a person. In recent times and more with younger employees, their social life and status amongst their friends dictates who they are, a job is simply a means to help them elevate their social status. Geezers like me believe that our career is who we are and many of us can't comprehend the motivational factors of this younger group. We were driven by the idea of "Improving our financial status so we could take care of our immediate and future needs" People now are driven by "What can I do that will improve my social status". Take a moment to look over "Abraham Maslow's Heirarchy of Needs" and it will explain it. Here is a link: http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm

Us old guys used to, and still think as if we are on the bottom two levels. Since our younger folks have not really had to be too concerned about having someplace to stay that they could call their own home, or fear of losing everything or worrying about how to feed their family. They have become a society of people who, no matter what, have all of their basic fundamental needs taken care of, no matter what. Compared to the rest of the world, our poorest would be considered rich. People don't fret that much about whether they have food, they are more concerned about having Direct TV or the latest, greatest pair of basketball shoes or smart phones. This group is motivated by esteem and status.

So Frank, what do I do? You ask. Just understand that this is the way it is and sometimes money isn't the main motivating factor. Provided you have good measurement systems that everyone understands and know how they may be able to improve, set up reasonable goals with rewards for success that may include more free paid time off with friends and family. It may be status or esteem building awards such as a night on the town, paid for by you, or maybe a gift certificate to a nearby mall. Just be creative and realize what you are dealing with and respond accordingly.

I'm sure I'll get the typical responses like "They should be happy they have a job" or "A paycheck should be considered award enough" That worked for me and you other old guys, but does really not apply 100% now.

Friday, June 3, 2011

The Value of Service Contracts



While working at the RCA Service company many years ago I remember one common theme. "Sell Service Contracts". This indeed was the main revenue stream for the business.What are the benefits?
1. Provides a continuous revenue stream
2. Connects your customer to you. Why would they call anyone else? They have an agreement with you.
3. Adds value to your business. One of the first questions you'll be asked when you decide to sell your business is "How many contract customers do you have?"
4. With regular maintenance checks, it allows your field people to keep busy during the slow times.
5. Improves customer relations. You have less catastrophic failures because service is rendered regularly for minor problems rather than during emergency no cools or no heats.

Ready for Summer?


Are You Ready for Summer?

This is the time of year when most of my clients get too busy to talk to me. It's kind of good because it allows me time to get a vacation, learn some new information, do some research and catch up on things around the house.
Since most of you are in the heating and air conditioning business this is the "make it or break it" time of year. I hope you make it . . so I put together a few tips that may help you reach your goals.
1. Set a goal
So many times we jump into the busy season with no planning, no forecasting and no goal setting. Take some time before it really gets crazy to put some thought into what you expect to accomplish this summer as it compared to last summer. Learn from your mistakes from a year ago.

2. Raise your price
Since demand goes up, so should price. Every other business in the world does it, you should too. Every time you go to buy gas or even milk the price is different from the last time you bought it. Set your prices to increase when you're busy and decrease when you're not. If possible attempt to divert non-emergency work to the fall when things slow down and your price is lower. I've had contractors ask me questions like "What if one customer tells another that they paid a lower price?" Your answer should be "My price goes up when I'm busy." I see nothing wrong with that.

3. Use technologies
Over the last few months I've reviewed dozens of technologies to help contractors work more effectively and efficiently. If you have not taken the time to review the various dispatch, pricing, GPS systems and mobile devices in the last two to three years, you are missing out on some very useful systems and products that will more than pay for themselves in a matter of a few weeks. Call me if you want more information.

4. Be customer friendly
Sometimes we get so overwhelmed with business that we forget about keeping time commitments, calling people back, being friendly, thanking them for their loyalty, acting professionally and answering the phone properly. You want these people to remember you for what you did well, not what you did wrong.

5. Be creative in your work schedules
Air conditioning systems fail whenever they want not just during your normal working hours. One of my clients has her technicians work four, twelve hour days followed by three days off one week and four days of the next. This allows them to capture late calls and gives them a nice break during the busy times. They also stagger starting times to begin anytime between 6AM and 11AM. This allows them to provide regular service hours for clients from 6AM to 11PM. Don't be afraid to work people overtime if they want to, it's cheaper than hiring someone.