There are many different reasons why construction companies can experience stagnant growth periods, but one critical cause is not hiring the right people at the right time. Here’s a recruiting success story where we helped a firm grow to the next level of success they wanted to reach.
A Company in Transition
We worked with a third-generation general contractor that has been around for over 50 years. Our client was very well known by everyone in the healthcare/hospital marketplace within their heavily populated metro area. Yet, our client plateaued year after year at around 15 million in annual revenue. The construction firm was handed down from grandfather to son and then would be handed down to the grandson. The grandson was getting ready to take over leadership of the company as his father prepared to step down. Even though the father was looking to retire, his son didn’t want to take over unless he could grow the company. When they engaged our recruiting firm, we began by asking important questions like what would be needed to expand their operations.
We identified their major issue: their mangers were strong, but never managed healthcare projects over $10 million. We suggested hiring a high-level healthcare construction business development professional and a strong large project healthcare project manager. We ended up placing an individual with 20 years of business development experience with the majority of it in healthcare construction. It also helped that his wife was on the board of directors of several healthcare groups. The second placement was a senior project manager that had a success background in managing large ($100 million plus) healthcare projects. This allowed our client to present their capabilities with the same hospital owners and boards, but now on their most complicated projects. This helped our client and they were able to diversify and get into other areas such as retail, multi-family, and nursing homes. Then the rest was history.
Reaching Their Goals
Our client goal was to grow in profitable revenue, and by hiring these two key managers, they crushed their goal with over 50 million in revenue within three years. They haven’t looked back. Today (20 years later) their revenue is over $100 million!
Return on Investment
Some companies might struggle with knowing the right time to hire. They are hesitant to add more staff to the payroll because of the expenses associated with it. Basically, it’s prudent to bring on more talent if they can help to enhance your profits right now, or in the foreseeable future. You should always be on the lookout for great talent. The best companies always look to improve their talent pool, even if they don’t have any openings. Just like sports, the teams with the best talent wins. Nothing is wrong with bringing on a star to replace the weakest performer. This will help give you an edge toward reaching your larger goals.
Executing Your Plan
Once you’ve determined that the time is right to hire more employees, it’s just as important not to hire out of sheer desperation. Bringing in the wrong candidates will only hurt your profits in the long run. Construction recruiting can be like a complicated puzzle with pieces that don’t fit in some situations. Hence, the golden rule is matching the right candidates up to your business plan and work culture. Working with a market master construction recruiter can help you do just that.
How can we help you?
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