With good planning and preparation, electrical contracting companies can submit their quotes for big projects they have always wanted – or must have to grow. All that is required is sufficient lead-time and a knowledge of industry partnering on the supply side of materials and manpower. Spend the next five minutes reading the article and you will see there are options, both achievable! You will also read about a growing industry many electrical contractors are discovering to help propel them to the top with minimal financial, overhead and legal risk.
Risk and reward: You must “take it to get it”
The scenario is you have grown your business with the proper mix of office personnel and electricians, have decent cash flow, and enjoy an amicable working relationship with your materials supply house(s). You have your estimating fundamentals down and your business is cruising along at a good pace ready to advance to the next step. Your willingness to accept risk is going to place your business over the top or keep you in check. Which way do you go? Are you comfortable or are you ready to progress in the electrical contracting industry? If your answer is “no” - stop reading here. Otherwise, go on to the next step…
Opportunity
Steven Covey said it the best, “Effective people are not problem-minded; they're opportunity minded.” Maintaining the status quo simply obstructs growth. In a 40-hour workweek, a couple of office support personnel and ten electricians in the field can easily handle a manpower availability factor of ten electricians. With overtime - in perfect conditions - you can squeeze overtime at fifteen man-days (ten at 60 hrs/week) out of your crew and still keep projects on schedule over a short-term period. Now the big knock at the door sounds and an opportunity to grab a big project presents itself. You find you have a requirement for an additional ten electricians to handle the job. Your current crew is stretched to the point of diminishing return. You have a few options; turn the work down and maintain the status quo or go with one or a mix of the remaining two below:
In-house: Focus on the people and the job
OK, start your clock and watch it good! Bid and allow lead time to advertise, drug screen, check references, test for knowledge, interview, notify your worker’s compensation insurance company, gather social security, federal, state tax withholding information, perform payroll functions and then hire to double the size of your staff before the project start date. This will, of course, take time away from getting your materials take-off list in order, ironing out job details with the GC, attend planning meetings, pull permit(s) along with other miscellaneous tasks. You decide to bring in an additional part time office employee to assist the other two already focused on their full-time functions. Also, consideration for the post-project issues must be factored in, like handling unemployment forms, adjusting your worker’s compensation insurance, letting workers go, etc. OK, stop your clock; count the days juggling schedules, whew! Next option is for those ready to throw away the pain and hassles or effectively managing human resources.
Outsource: Focus on the job – not the people
Have time to place one five-minute phone call and want to focus on job preparation, not human resource headaches? Call an electrical staffing company and have the right skill sets assembled for you with all administrative burdens delegated. The price, you ask? Slightly marked up but, it includes the price you would pay for all of the insurance, overhead, payroll, time tracking, advertising, and recruiting duties incurred. By taking on the big job, your return on investment will be surprisingly large by rolling in the known manpower cost. You will have the freedom to focus on the job and maintain your current employee base to supervise job site duties. Do you want more work without added administrative headaches? Want others to handle hiring, replacing, and termination of employees and avoid legal pitfalls with tax and insurance issues? If yes, then select a staffing agency that has licensed electricians in the office who understand what it’s like out there in the real world. Speaking of risk, multi-trade staffing firms let a “staffing technician” hire your electricians. Demand an Electrical Contractor and Master Electrician - backed by human resource experts - hire the specific electrician or electrical crew you require!
Mike Widner, Director Strategy Construction Company
Learn more about outsourcing electricians by contacting Strategy Construction Company at 719.574.1881.
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