Rising to the challenge of staffing

A MIDWEST TRUE VALUE STORE OWNER TELLS ITLIKE IT IS — FROM THE FRONT LINES OF STAFFING. BY TIM BURKE.

Doug Johnson is the owner of Johnson True Value Hardware, in Mt. Pulaski, Illinois, a town of 1,500 with a colorful history in the heart of the golden Midwest farmlands in central Illinois. Abraham Lincoln himself regularly practiced law at the local courthouse, which is available for tours.

Here is where Johnson purchased the former Farmers Hardware in 1996. “I had been behind the scenes in the auto dealership business for years after college and the entrepreneurial spirit got me looking to start my own business,” he said.

The trajectory was slow but steady and in 2021 he moved to a new location in town, “and went from 4,000 square feet to 12,000 square feet — and business has been great,” he said.

Now we know about Doug, his business roots, and the town; but what does the overall staffing picture look like for his hardware store?

“We are a small closely knit group,” he explained. “Like many small businesses, as owner and manager, I wear many hats — but depend on everyone to share in as many hats and responsibilities as possible.”

He has two assistant managers, and five parttime customer care team members. “We have had our share of student employees over the years. Last year’s crop of kids moved on and I waited until this spring to find replacements. With winter and uncertain economic times looming I tried to wait as long as possible to hire new employees,” said the owner.

This spring kicked off above expectations, he said, so he recently brought on two high school age part-timers as trainees for the summer. He hopes they will continue into the next school year.

“The team is a good cross-section of our community and customer base,” he said. “All of the employees are locals, varying in age from 17-84 years old, evenly split into men and women including the new hires.”

Illinois instituted a big minimum wage act effective in 2020, he pointed out. It increased to $10 for all workers and goes up $1 per year until 2025 leveling off at $15 per hour. “Adding additional entry level staff is difficult to justify due to the immediate high cost,” he said.

Although some of the employees were above minimum wage, everyone received an automatic raise every January, said the owner.

“Payroll, payroll taxes, and workers comp insurance have all increased proportionally so my employment costs have essentially risen 30% since 2019, with another bump coming in January 2024, and January 2025,” said Johnson.

Most of the employees are now earning the minimum of $13.00 per hour and the more senior staff are a couple dollars higher, he explained. Additionally lead staff are earning a weekend hours bonus of $1 per hour.

“I still print paychecks weekly using our in-house accounting software,” he said. “I would definitely consider direct deposit if we had a larger staff, but I have been doing paychecks the same for all these years I almost can do it in my sleep. The software does all the work, so it’s not a big deal.”

The technology-driven world we live in today can bring about changes in staffing, but in degrees.

“We are still pretty low-tech, so not a lot of impact there. Two Point of Sale terminals using RockSolid Classic software

True Value is a sponsor of Project Green Freedom, the first net-zero Habitat for Humanity (HfH) community in Illinois. CEO Chris Kempa (left) and John Vanderpool, SVP True Value Manufacturing, help break ground on this three-year project with Chicagoland Habitat for Humanity and Fox Valley Habitat For Humanity. The community will consist of 30 single-family net-zero homes equipped with a combination of renewable, electric, and natural gas technologies, said Fox Valley Habitat For Humanity. True Value said it is donating its low VOC, asthma-and-allergy certified EasyCare paint to support this green effort.

“Building community is very important to me personally, and True Value and our stores serve local communities in that way every day,” said True Value CEO Chris Kempa. “I am thrilled True Value can support Habitat for Humanity and these deserving families through Project Green Freedom and help make these sustainable houses a home.”

When it comes to staffing-up, a local hardware store can be an inviting job to potential hires.

“I find that word of mouth is a good way to find suitable applicants,” said Johnson. “Current employee referrals have worked out well for us. Being a small town where everyone knows everyone else, you kind of have an idea of who the applicants are from the get go. I have not advertised for new employees in many years.

“Thankfully with most of my staff having been on board for many years, we have not had a lot of turnover. Half of my employees have over 10 years or more of seniority. I try to hire for the long term, avoiding temp or summer help. The learning curve is too steep to start over after only a few months or even a year,” he said.

From the front lines of hiring, Johnson said: “Hiring today is one of the more challenging and important tasks I face as owner and store manager. Today’s worker is as demanding as the customer we serve. A careful balance is difficult to achieve. Trying to balance payroll costs and at the same time provide the right level of customer care and also provide a good work environment is getting more difficult.”

The owner added, “regulations and increased overhead costs will drive a lot of small businesses like ours out of the market. The Amazons and Walmarts of the world take a huge toll on the smaller competitors too.”

Johnson said: “We are fortunate to be in a rural setting with lots of loyal customers and what I like to think are friends of our locally owned and operated hardware business.”