A lot has been made of the labor shortage since the COVID-19 pandemic hit nearly two years ago. Service businesses were the most severely disabled by a shrinking workforce … for evidence of this, simply walk into a restaurant and expect to be served quickly.
People like to throw out a lot of reasons to explain why “Help Wanted” signs are placed in just about every window in commercial districts and industrial parks across the country. Some will say lazy people are disincentivized from working because of generous unemployment benefits that started during the pandemic. Others will point out that many who died of COVID or related illnesses were taken out of the workforce, contributing to the shortage of able-bodied workers.
These arguments about the worker shortage have devolved into partisan political tirades and I’m not at all interested in that. It’s not productive and it won’t lead to any meaningful solutions to our present crisis. I guess I’ve lost my patience with the current national debate because our wastewater industry has faced a growing shortage of workers for years. It’s nothing new.
How can we turn things around for septic system installing and excavation companies? That’s the question I would like to dwell on as we head into a new year that promises a continued worker shortage and opportunities to turn around the grim outlook.
It’s never been a more important time for change as it seems the wastewater industry is populated mostly by workers who are much closer to collecting Social Security checks than starting a fresh, new career. I see many installers in their 50s and 60s searching for ways to ensure a solid future for the companies they started and love. They want to turn the great potential of these businesses over to enthusiastic younger people to take to the next level.
But how do they get there? How can they attract and retain the workers who will step up eventually to supervise a crew, assume daily management duties, and eventually take over the company? This is the central dilemma facing onsite installers today. Certainly, there are other pressing issues, such as adapting to new wastewater regulations and constantly learning new technologies. But these things won’t matter if you don’t have the workers to operate equipment, set tanks and lay pipe.
Show me the money!
When I worked as newspaper reporter years ago, whenever we investigated government corruption or a shady business deal, the editors always used the old adage, “follow the money.” Whenever you wanted to test someone’s motivation for a questionable decision, a big green wad of cash usually pointed to the truth. So when we look for reasons young people aren’t joining the wastewater industry, we have to consider that low wages might be a major factor. Are installers being paid enough?
There was a time not too long ago when companies might be talking about onboarding a new helper or crew member for $15 an hour. However, competition for good blue-collar workers before and during the pandemic seems to have changed that. For companies charged with providing an essential service like yours, we might be in the midst of a radical pay adjustment period. Given what I’ve heard about the workforce in general and wastewater industries in particular, we may be looking at doubling that $15 expectation to find reliable workers who see a future in the wastewater industry.
To the longtime owner of an installing company, it might seem like starting pay has kept pace with U.S. economic conditions. But a recent study of minimum wages worldwide says otherwise.
According to the personal finance website, www.money.co.uk, the U.S. tops countries whose minimum wage value has decreased over the past 10 years. According to the global study, the minimum hourly wage for U.S workers was $8.60 in 2010 and, adjusted for inflation, was $7.10 in 2020. That’s a drop of 15%. Countries following the U.S. on this inauspicious list are Greece, Belgium, Netherlands, France, Luxembourg, Slovakia, Ireland, Australia and Brazil.
Installing jobs don’t pay minimum wage, but the statistics may be an indicator of lagging pay up and down the scale. Wastewater jobs entail hard work, sometimes unpleasant conditions and long hours of unpredictable emergency service. Working in a trench is not glamourous, but it is rewarding because handling wastewater is vital to the health of the economy and everyone in your community. In my mind, your technicians are to be celebrated for the work they do … and their pay should be commensurate with the importance of their jobs.
And when you compare what you pay to others in the trades, look at the plumbers, electricians and growing manufacturing companies in your hometown. These workers are often required to have significant training and certification, but today’s installers increasingly need similar on-the-job training and additional certification to perform their duties. If there has been a pay gap between your technicians and other industries in the area, that gap should be narrowing to ensure more quality workers consider a career in wastewater.
Beyond the pay
Installing professionals should feel like they have some financial security. If they see a strong benefits package at your company, they are more likely to think of building septic systems as a career option rather than a way station to something better. And that’s the attitude you need to foster if you are grooming your workers to take more responsibility.
Take a good, hard look at what you offer in benefits like health and life insurance, 401k retirement savings plans, personal time off, profit sharing and the like. Do your workers live paycheck to paycheck or are they able to set aside money for a new home or replace an old car? Are they able to contribute to a retirement plan? Are their families protected with insurance in the event they are injured or die? Is your company family friendly for workers, offering flexible schedules and understanding that your people have important priorities off the time clock? All of these benefits make your crew feel valued and cared for.
Next, are you doing all you can to help workers advance professionally? If you don’t cover the costs of all training and education, you should rethink this. The same goes for promoting professional enrichment that will help your workers gain expertise that will improve their value down the road — whether or not they are working for you. Do whatever you can to help workers reach the potential you saw in them when they were hired. Maybe not all the time, but sometimes this concern for their career advancement will pay great dividends for your company.
Then assess the quality of the equipment workers are entrusted to use every day. Are your trucks and excavation equipment rusty and held together with baling wire, or do you upgrade the fleet regularly. Quality, well-maintained machines make the work more enjoyable and safer, and will help employees take pride in their performance and your company. And equipment that utilizes modern technology and provides greater operator convenience will convey to workers that your company wants to remain on the cutting edge in the industry … showing that this is a good place for them to be.
Focus on quality service
This all sounds great, I know. It takes immense resources to reach these goals, you might say. But if you can’t find the capital to attract, retain and groom good workers for the future, what’s going to happen to the company you built into a successful enterprise? Will it wither away, and therefore waste your years of hard work at the helm?
The answer is clear. It’s another old adage: “You have to spend money to make money.” And to generate the income to meet the task at hand, you must concentrate on quality, professional service rather than on low prices. Demand a fair profit for good work and show the customer the value prospect of a well-trained, experienced field crew that takes pride in their work.
Then watch what happens in 2022.
