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Rermag 7614 Rothheadshotpngcropdisplaypngcropdisplaypngcropdisplay 1
Rermag 7614 Rothheadshotpngcropdisplaypngcropdisplaypngcropdisplay 1
Rermag 7614 Rothheadshotpngcropdisplaypngcropdisplaypngcropdisplay 1
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Incentives that Might Give you an Edge

April 1, 2016
Of course, finances matter, and giving employees the opportunity to get a share in the company’s success is a big part of employee satisfaction and a more motivated performance for sure. But there is also the feeling of being part of something.

Our cover story this month from Gary Stansberry brings up a number of interesting points and I urge you all to give it a read. He talks about the importance of keeping a younger generation of employees enthusiastic about working in the rental industry and the need for them to feel invested in what they’re doing. And while it is absolutely true that the current “millennial” generation is less likely than their parents’ generation to just feel lucky to have a job and have a “whatever the boss says” mentality, some of the suggestions Gary makes would be embraced by any generation. 

Stansberry writes about the need for employees to feel a part of the goals of their company or their department. Any of us will feel more a part of things if we will be rewarded for the performance of our department. We will also feel that involvement if we help design a solution.

So let’s take a look at some of the ways rental companies these days feel the need to improve. Given that equipment rental is very much a service industry, many rental people I’ve talked to recently talk about the need for rapid delivery and quick response to breakdowns. As we all know, we live in an instant-gratification culture but more important than that, contractors who call to order a piece of equipment to be delivered as soon as possible probably already needed it even before making the call. It’s the same with rapid response to a breakdown in the field and you certainly don’t need me to tell you why this is important given the financial pressures contractors face.

These are areas of your business that you can measure. If someone calls for a delivery, how many minutes does it take to get on the road with the equipment? You can time it and keep statistics on it. If you and your staff feel it needs improvement, the question then becomes how do you go about implementing changes and improvements? By you dictating from above: “This is how to do it?” Or get the various parties involved in the process to form a group to find the best way. It most likely would involve counter personnel, yard people, the shop, delivery drivers and so on. How to get it out the door faster? Suggest that they analyze all the steps involved in the process and figure out ways to shorten those steps or even eliminate some of them. Let them come up with solutions and if they show measurable improvement, figure out a way to reward them.

It can apply to delivery, it can apply to servicing breakdowns and it can apply to moving equipment through the shop and out to the ready line more quickly. If everybody gets involved in the process, suggestions are likely to be embraced enthusiastically.

There is a tendency for people to be comfortable with things the way they are and not necessarily want to change things. That’s understandable. So how do you communicate it in a way that people don’t feel threatened or unappreciated? Change can be upsetting to people, and it can make them feel as though their jobs are at stake or that they are not appreciated for what they do. That’s where communication is necessary and the “how can we do this better?” has to not mean “you’re not doing well enough!”

Incentives can have real power, but as Stansberry points out, whether or not people are happy in their jobs is not always only financial. Of course, finances matter, and giving employees the opportunity to get a share in the company’s success is a big part of employee satisfaction and a more motivated performance for sure. But there is also the feeling of being part of something.  

I have visited hundreds of rental companies in my time with RER and I have seen companies where employees really take pride in what they do, and what the company offers. It’s not just their words that tell me they feel that way, it’s their whole demeanor, and it’s a beautiful thing to see. 

I’ve also seen companies where for the employees it’s just a job and I didn’t sense pride in what they and their co-workers offer customers. It doesn’t mean they don’t work hard. But there’s a difference. And if I can feel it, you can be sure customers can too. 

If your employees buy into your vision, it might be the key to a competitive edge.