Despite unprecedented demand for tradespeople across Australia, a regional trade services business with 48 staff had a 100% staff retention rate last year.
| Entrepreneur |
Wayne Perry |
| Company |
Perry Trade Services |
| Business type |
Trade services provider |
| Founded |
1994 |
| Employees |
48 |
| Head office |
Nuriootpa, South Australia |
| Contact details |
+61 8 8562 3655 |
Key Learning Points |
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Staff retention
In a tight employment market, it is vital to have well-designed and actively managed strategies for ensuring a good supply of well-trained employees. Above award pay rates are essential. Reward loyalty and foster a sense of community.
Big picture
Are the problems that affect your business part of a wider community issue? If so, what can you do about those? Think about your company as part of a larger system.
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The Perry Trade Services Story
Wayne Perry, Managing Director of Perry Trade Services, always wanted to be a tradesman. He did an electrical apprenticeship and in 1994 started his own business in the Barossa Valley town of Nuriootpa. By 1997, he had six employees, including a full-time administration assistant. He wanted to expand the business in order to overcome cashflow problems and become financially viable. But faced with an acute shortage of skilled tradespeople, Wayne had to decide whether expansion was realistic.
The Challenge
To overcome an acute skills shortage and expand his business into a financially successful and community-minded workplace of choice.
The Solution
Wayne refused to accept the limitations of the employment market. He has developed innovative ways of finding and retaining skilled workers and involved himself in training organisations in South Australia. Wayne diversified the business to provide various trade services in the Barossa Valley including electrical, plumbing, data and communications, security, automation systems and locksmithing. He now employs 48 people in the region.
Wayne had always employed two or three apprentices, but the decision to expand required a decision to invest much more in new apprentices and training. He now tries to ensure that there is a junior apprentice at each year level and he encourages qualified tradespeople to cross-train in compatible areas. For example, an electrician, can train in security or data and communications.
Wayne also began to employ older apprentices who wanted to change careers. He says: "We pay them about three times the apprentice award rate so that they can continue to feed their families. They are paid at the trades' assistant rate of $16-17 / hour. It is more expensive but well worth the investment for what you get in loyalty and retention."
Wayne also committed to dealing with the labour shortage on a macro, community-wide level. He chairs the region's Workforce Development Network and is on the board of the Australian Technical College. He encourages other tradespeople to employ more junior apprentices. "If everybody takes on more apprentices, then everybody has got the pool to draw on to get the trades people they need."
Perry Trade Services' keeps staff satisfied and engaged by regular evaluation and team meetings, building career paths and plenty of two-way communication about work performance, innovative ideas, decision-making processes and other issues. Perry says: "As a result, employees take pride and ownership of the company's performance and this is reflected in a 99% satisfaction rate from our customers." Perry has an open-door policy and a communications book in which employees are encouraged to record their suggestions or complaints, which are read and taken seriously by management.
Perry's eight managers have done Certificate IV training in Frontline Management. TAFE trainers were brought in-house so that training could be tailored to the particular needs of the business. Wayne says: "It was a great team-building exercise, doing real things such as rewriting the HR policy and developing new evaluation criteria designed to retain employees." Managers are now much more able to evaluate their own team members, a job Wayne used to do.
Apprentices are well supported throughout their training with a constant focus on their desired career path. Perry managers ask apprentices how they are coping with school and, if needed, offer to help with study problems.
Other incentives to employees include flexible hours for people with children, time off to deal with family issues and attractive pay rates. Perry holds weekly social get-togethers for the employees and two other social functions a year: one in July that includes their partners and a family day in October.
Wayne has pursued his own professional development too. He has a diploma from The Australian Institute of Company Directors and a TAFE Diploma of Business Management.
The Result
Wayne's investment has paid off. Perry Trade Services has grown from employing six people in 1997 to 48 now. Its 2005-06 revenue grew by 35% over the previous year, achieving a turnover of $4.7 million. Last year, Perry had a 100% staff retention rate.
Wayne's achievements were recognised with a Telstra Business Award for best regional business in 2006.