labor utilization to help you compete
DESCRIPTION
LABOR UTILIZATION to help you compete. BONUS PROGRAM WEBINAR SERIES MODULE 5 September 10, 2014. Presented by Kip Bagley Vice President of Service, EMCOR Services/Mesa Energy Systems Jim Leslie Vice President, Tucker Mechanical, an EMCOR Company. Moderator. Don Neal CEO & Founder. - PowerPoint PPT PresentationTRANSCRIPT
LABOR UTILIZATION
to help you compete
Presented by
Kip BagleyVice President of Service, EMCOR Services/Mesa Energy Systems
Jim LeslieVice President, Tucker Mechanical, an EMCOR Company
BONUS PROGRAM WEBINAR SERIES MODULE 5September 10, 2014
Don NealCEO & Founder
Moderator
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• Engage by answering the polling questions
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Kip BagleyVice President of Service, EMCOR Services/Mesa Energy Systems
Jim LeslieVice President, Tucker Mechanical, an
EMCOR Company
OBJECTIVES
Understand how to use labor mix properly and how it can increase margins along with the longevity of your business.
National Agreement? What you didn't know! Learn to use your best salespeople – the
technicians! Understand the pitfalls and peaks of field
incentive programs.
Polling Question #1
Do you track your service crew/labor mix?
A. YesB. NoC. Not Sure
Labor Mix – Blended Work Force (crew rates)
ACTUAL TOTALS
Jim and Kip's Air
FOREMAN & JOURNEYMA
NAPP 5 YR
APP 4YR
APP 3YR
APP 2YR
APP 1YR
TRADESMAN
or < 50% of
J Rate
Total Techs
J MEN / A&T%
TOTALS 125 11 2 8 8 7 12 173 2.6
Office 1 15 3 18 5.0
Office 2 14 1 1 1 1 18 3.5
Office 3 49 3 1 2 2 6 63 3.5
Office 4 17 2 2 2 23 2.8
Office 5 13 3 1 1 1 19 2.2
Office 6 3 1 1 5 1.5
Office 7 8 2 3 2 15 1.1
Office 8 6 5 1 12 1.0
Labor Mix – Blended Work Force (crew rates)
IDEAL TOTALS
Jim and Kip's Air
FOREMAN & JOURNEYMA
NAPP 5 YR
APP 4YR
APP 3YR
APP 2YR
APP 1YR
TRADESMAN
or < 50% of
J Rate
Total Techs
J MEN / A&T%
TOTALS 112 9 9 9 9 9 16 173 1.8
Office 1 12 1 1 1 1 1 1 18 2.0
Office 2 12 1 1 1 1 1 1 18 2.0
Office 3 42 3 3 3 2 3 7 63 2.0
Office 4 16 1 1 1 1 1 2 23 2.3
Office 5 13 1 1 1 1 1 1 19 2.2
Office 6 3 1 1 5 1.5
Office 7 8 1 1 1 1 1 2 15 1.1
Office 8 6 1 1 1 1 1 1 12 1.0
National Service Agreement Discussion
Service, Maintenance & Operations Work
ARTICLE VII – Scope of Service, Maintenance and Operations Work
ARTICLE IX – Classification of Employees14. Service Journeymen15. Servicemen (MES)16. Service Apprentices17. Tradesmen (MEST)
ARTICLE X – Hiring and Use of Employees
ARTICLE XII – Wages, Benefits and Hours of Work
Polling Question #2
If you’ve ever moved a technician from the field into sales, how was the transition period?
A. GoodB. BadC. UglyD. N/AE. I don’t know.
Technicians Selling
Identify techs who are a good fit for sales
How to transition techs from field to sales
Provide guidelines for incentivizing techs
Who Do They Trust?
Who do your customers really trust to give them technical
information about their systems?
Who Do They Trust: The Salesperson?
Who Do They Trust: The CFO?
Who Do They Trust: The Dispatcher?
Who Do They Trust: The Technician!
Technician Loyalty
In order of priority:
1. Customers2. Contractors3. Unions
The Good, The Bad and The Ugly . . .
Transition from Field to Sales Positives Negatives What technicians fear the
most
Transition: The Good
Technical knowledge and background Understand systems and equipment Natural at sales Comfortable in front of customers No fear to speak from their experience
and knowledge
Transition: The Bad
Technical knowledge – too much is sometimes a bad thing!
Tendency to oversell Lack of pure sales training Horrible at “cold calling”
Transition: The Ugly
Technicians don’t consider themselves “salespeople” – they view themselves as customer “supporters.” Techs provide solutions they truly believe will help the customer.
Deathly afraid to jump from hourly to salary/commission.
Fear of leaving the uniform for a polo shirt.
Not used to delayed or long-term results.
Eyeing Future Salespeople
What to look for when targeting future salespeople from the field: Outstanding rapport with existing customers Willingness to go “above and beyond” Great at paperwork/computer skills Works well with others Dispatcher and office staff perception Talk to technician’s existing customers Is the technician ready to go from union to
non-union financially? Do you have a replacement?
Polling Question #3
Do you currently have or have you ever had a Field Referral Program for sales?
A. YesB. NoC. I don’t know.
Field Referral Program
Helping technicians sell from the field:
Beware of compensating “normal” activities
Watch payout amounts Decide between revenue or
gross profit payouts Use COMMON SENSE!
Profitable Maintenance Agreements
Looking at the entire account vs. contract only
Gross margin of maintenance agreement Gross margin of pull-through work Average margin of maintenance
agreement and pull-through work = actual profitability of account
Key Takeaways
Implement a blended work force to maximize your labor resources.
Use the National Service & Maintenance Agreement as a tool to strategize and manage your labor force.
Capitalize on the customer’s inherent trust of their technician, and transition your techs into sales – but choose wisely and train thoroughly.
Evaluate the actual profitability of an account by averaging the gross margins of pull-through work and maintenance agreement.
It’s Your Turn…
Q1: Was this webinar informative and useful?A. Yes, I found this informative and useful.B. Yes, but it wasn’t as informative and useful as I expected.C. No, this was not informative or useful.
Q2: Did the speaker present the material in a clear and concise manner?D. YesE. No
Q3: Will you download this webinar, and share it with others in your company?F. YesG. No
Join us for the next webinar on October 22!To register, go to https://msca.webex.com
October 22: EfficiencyPresented by Mike Star and Devon Hubbard
December 3: New Business OpportunitiesPresented by Jaimi Lomas and Adam Wallenstein
Reminder
The PowerPoint and handout will be available on the homepage of the MSCA website immediately after the webinar at www.msca.org.
The archived webinar will be accessible from the MSCA website within 24-48 hours.
For Additional Information or Questions, Contact:
Barbara DolimExecutive DirectorMSCA(301) 990-2210 (direct)[email protected]
Kip BagleyVice President of ServiceEMCOR Services/Mesa Energy Systems(949) [email protected]
Jim LeslieVice PresidentTucker Mechanical, an EMCOR Company(203) [email protected]