Every contractor knows how much planning goes into hitting next year’s revenue goals — you forecast jobs, maintenance agreements, equipment costs, and marketing budgets. But here’s what often gets overlooked: Who’s actually going to do the work?
Your people are the engine behind every dollar you make. Without the right team in place, even the best business plan can stall. That’s why it’s crucial for you to start your team planning BEFORE you need to hire.
If you’re not looking at your workforce with a 5- or 10-year scope, you’re missing the big picture, especially in the HVACR industry, where the employee challenge is only growing. Many experienced techs are nearing retirement. The average HVACR professional today is in their mid-50s, carrying decades of knowledge that could walk out the door with them. Now’s the time to capture that expertise, train your up-and-comers, and plan for the future of your team.
The 3 Bs of a strong hiring strategy
A strategy to help guide your team planning process is the 3B Strategy: Build, Buy, and/or Borrow. This talent strategy helps bridge the gaps for companies with differing employment weaknesses.
1. Build your team
Building takes time. It’s an ongoing process, not a last-minute fix. While building your team takes longer, it’s often one of the most effective long-term solutions. Built teams give your current employees a clear career trajectory and often hold higher retention rates when promoting internal staff.
Start by identifying career paths for every team member.
- Who’s ready to grow into leadership?
- Who’s best suited to mentor new hires?
- What pairings of leads and techs or installers would work well together?
If you don’t know the answers to these questions, it’s time to assess your team.
When you build from within, you’re creating depth. That way when someone leaves, you have talent ready to step up instead of scrambling to fill the gap.
2. Buy your team
Buying takes money. Typically, buying your team helps you fill more specialized, senior roles, brings in new perspectives and leadership styles, and is faster than building your talent. However, buying comes with its own set of costs. There’s a higher risk of turnover particularly in leadership roles. It will take them longer to acclimate to your company culture and internal processes (often yielding less effective managers in the first 2 years). And there’s higher upfront costs since you’ll be competing with other local contractors for talent, so you need to offer competitive pay and benefits.
If you’re unsure how your compensation stacks up, run a salary survey – an efficient tool that shows how you compare to employers in your area. Cost of living and salary expectations constantly change, so we recommend reviewing wages every 6 to 12 months to stay competitive.
3. Borrow Your team
Borrowing takes flexibility. Sometimes that means hiring 1099 contractors or seasonal help to cover busy seasons. It can be useful, but it comes with tradeoffs.
Short-term workers may not blend well with your full-time crew or align with your culture. Too much turnover in and out of your business can hurt morale and consistency. It’s also a lot harder to fill temp roles. Most employees in the trades want stability from their employer, not in-and-out jobs for a quick buck.
That said, seasonal work can be a great opportunity to bring in trade school students during the summer. They’re eager to learn, and the experience can lead to full-time employment later. Just be mindful of legal requirements and make sure every employee is at least 18 years old.
If you bring on temporary help, assign them lower-impact roles (parts running, deliveries, or shop assistance) where they can learn without affecting customer experience. Also, there are more states adopting laws that prevent 1099 contractor relationships in the same field as your specialty (HVAC, Electrical, etc).
Planning ahead for your team
The 3 Bs (Build, Buy, and Borrow) give you a framework to think about how your team will grow in the years ahead. It’s time to put this strategy into action by mapping out your 5-year hiring plan.
Ask yourself:
- How many people might you lose to retirement or turnover this year? In the next 5 years?
- What new roles will your growth plan require?
- Are you actively preparing and training your team for those future roles?
- Do you have the right trainers and mentors in place to pass on tribal knowledge?
A clear plan helps you stay ahead of hiring challenges instead of reacting to them. If you’re not sure where to start, our team can help you create a strategy and budget that aligns with your goals. Together, we’ll make sure your business has the right people in place for what’s ahead.
Recruit4Business is an ACCA Strategic Partner. To learn more about ACCA’s Strategic Partner Program, contact partners@acca.org or visit acca.org/partners.
The post How to build a long-term hiring strategy for your HVACR business appeared first on ACCA HVAC Blog.