SBCA Magazine, July 2021

July 2021

A BONUS FOR THE BONUS ROOM p. 12

A RECIPE FOR AVOIDING DISASTER p. 22

TO WHOM ARE YOU REFERRING? p. 28

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BUILDING A C C E L E R AT I O N

CONTENTS

J U LY 2 0 2 1

16

12 A BONUS FOR THE BONUS ROOM

Here’s an alternative to the traditional attic truss

16 PEAKING AT THE RIGHT TIME TCM’s journey in starting a new truss plant is full of insight

22 A RECIPE FOR AVOIDING DISASTER

Here are the proven ingredients to manage workers’ compensation insurance costs

12

28 TO WHOM ARE YOU REFERRING?

Incentivize your current employees to help you find your future team

22

28

IN EACH ISSUE

5 EDITOR'S MESSAGE Doing a Good Job

9 PRESIDENT'S MESSAGE Open for Business ON OUR COVER TCM Enterprises started Summit Structural Systems to fill a growing need for wood

component framing in the Southcentral U.S.

JULY 2 0 2 1

3

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THE OFFICIAL PUBLICATION OF THE STRUCTURAL BUILDING COMPONENTS ASSOCIATION

editor’s message

PUBLISHER

Structural Building Components Association SBCA PRESIDENT

Mike Ruede

EXECUTIVE DIRECTOR

Jess Lohse

MANAGING EDITOR

Sean Shields

ART DIRECTOR

Doing a Good Job The builder/GC needs to drive better communication between trades

Glenna Stocks/Stocks Creative ADVERTISING SALES

Ashley Stroder

ACCOUNTS RECEIVABLE

Jennifer Gustafson

DIRECT ALL INQUIRIES TO:

2701 E. Grauwyler Rd. Building 1, DPT#1026, Irving, Texas, 75061-3414 DIRECT ALL PAYMENTS TO:

SBCA PO Box 88671 Milwaukee, WI 53288-8671 224-244-5204 media@sbcacomponents.com sbcacomponents.com

IN A RECENT CONVERSATION WITH

or foundation that didn’t match the

department manager for Carpenter

supplier of the framing package to

HOWARD GAUGER, engineering Contractors of America (CCA), he

made a comment that sparked a two-

session podcast exploring the benefits of offsite construction (listen at: sbcacomponents.com/media). That com-

ment was essentially, “everyone wants to do a good job.”

At first glance, a sentiment like

and power to run successful, growing, profitable companies offering a compelling competitive advantage in the marketplace for their customers, and to offer professional growth for their employees. SBCA's magazine is one of the many tools it uses to deliver on its mission for the betterment of the industry and the broader construction supply chain. The opinions expressed herein are those of the authors and those quoted, and are not necessarily the opinions of SBCA.

Copyright ©2021 by the Structural Building Components Association

mostly comes down to the percep-

tion that wood is more malleable than stone and therefore it’s cheaper to

adjust the framing than the founda-

tion. Whether this is true depends to a great degree on the project.

As Howard and I explored that per-

ception, Howard observed that many

astute observation when applied to

result of poor craftsmanship, but a lack

appear overly optimistic, but it's an companies instead of individuals.

reasons to underperform or overperAssociation (SBCA) is for its members to gain knowledge

fix the error. This standard approach

that in the construction industry may

Individuals may have any number of

The mission of Structural Building Components

plans and the customer put it on the

form at work, but companies con-

tinually strive to be good, if not great, to survive and grow. A contracting

business, whether it’s a plumber or a

times foundation errors weren’t the

of understanding about the crucial elements in a given project. Just as most

component manufacturers (CMs) aren’t experts in plumbing or excavation, the other trades aren’t experts in framing and load paths.

Howard argues that if the concrete

framer, is organized and structured to

contractor has a better understanding

more good work.

are, and what tolerances are accept-

do good work, get paid, and then do

Howard’s comment was a specific

reference to concrete contractors.

Almost everyone in the light-frame

industry has had to deal with a slab

up front of what the crucial elements

able on a specific project’s foundation, the company is motivated to do a

good job and get it right. The problem

is that the supplier of the framing pack-

All rights reserved.

JULY 2 0 2 1

5

age and the concrete contractor typi-

pre-approved framing package designs

CCA together before the next project

is identified and everyone is pointing

the ones who should be motivated to

to-framing issues. The outcome? No

cally only talk after a significant problem fingers and trying to figure out who’s

going to pay to fix the error. It’s not a

model for creating partners and fostering collaboration.

More importantly, who’s problem

is this really? It’s certainly not either the CM's or the framer’s problem.

Most likely it’s the builder’s or general contractor’s (GC) problem. Even if the

subcontractors and/or suppliers eat the costs of the repairs or adjustments and

the builder/GC doles out backcharges, the increases in cycle times and head-

aches associated with revised construction schedules and budget overruns

belong to the builder/GC. It is in their best interest to ensure foundation

errors that require adjustments to the

never happen in the first place. They are head this off at the pass.

The challenge is the builder/GC are

generalists, and it’s unlikely they fully

understand the magnitude of the problem, particularly if, for example, the

to talk through critical foundation-

more critical foundation errors. After

the meeting, the concrete contractor understood what it meant to “do a

good job” and was motivated to do so.

The takeaway here is if you are

CM is in the regular practice of accom-

facing issues with another subcontrac-

when they initially got into provid-

plumbing, it’s critical to get the builder/

modating the errors. Howard said that ing the entire framing package (roof

trusses, wall panels and floor cassettes) and they ran into a foundation issue

on a specific project, they brought in

the builder and the builder concluded it was more cost effective to bring the

tor, whether it’s the foundation or the GC involved and explain why it’s in

their best interest to facilitate more

upfront communication between the

trades so everyone better understand what it means to do a good job.

concrete contractor back in to grind down a high spot in the foundation.

That painful experience prompted the builder to bring the contractor and

SEAN D. SHIELDS, Managing Editor

What came first?

The building or the truss equipment inside it?

As the only company in North America that designs and builds LBM facilities and rack systems nationwide, you can bet we know a thing or two about the unique challenges that face truss manufacturers.

Unlike most facilities that you build first and put equipment in later, truss fabricators and other component manufacturers utilize equipment so large and complex that we design and construct the building around the equipment.

“The building needs to enhance the manufacturing process, not interfere with it.”

Clint Darnell

VP National Accounts

If you need a building solution, from simple to complex, talk to CT Darnell.

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4/19/21 11:44 AM

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EXECUTIVE COMMITTEE

president’s message

President: Mike Ruede A-1 Roof Trusses • Fort Pierce, FL President-Elect/Treasurer: Gene Frogale Allied Systems • Winchester, VA Secretary: Jeff Taake Mead Lumber Co. • Columbus, NE Past President: Greg Griggs Builders FirstSource • Kennesaw, GA Roger Helgeson The Truss Company & Building Supply • Sumner, WA Joe Hikel Shelter Systems Limited • Westminster, MD Steve Stroder California TrusFrame • Perris, CA Scott Ward Southern Components, Inc. • Shreveport, LA AT-LARGE DIRECTORS Larry Dix Apex Truss • Warsaw, VA Barry Dixon True House • Jacksonville, FL Jim Finkenhoefer True House • Grayson, GA Jason Hikel Shelter Systems Limited • Westminster, MD Rick Parrino Plum Building Systems, LLC • Waukee, IA Ken Shifflett Quadd Building Systems • Remington, VA Jeff Smith Trussway Manufacturing, Inc. • Houston, TX Jason Ward California TrusFrame • Perris, CA DIRECTORS REPRESENTING CHAPTERS Dallas Austin Big C Lumber Truss & Panel • Dowagiac, MI Bill Blades Truss Fab, LLC • Glendale, AZ Greg Dahlstrom Villaume Industries, Inc. • Eagan, MN Howard Gauger Carpenter Contractors of America • Belvidere, IL Dave Green Carolina Structural Systems • Ether, NC Josh Hendrickson Wilson Lumber • Madison, AL BJ Louws Louws Truss • Ferndale, WA David Mitchell Engineered Building Design, L.C. • Washington, IA Justin Richardson Richco Structures • Sheboygan, WI Steve Strom The Truss Company & Building Supply • Eugene, OR Javan Yoder Stark Truss Company, Inc. • Canton, OH ASSOCIATE MEMBER DIRECTORS April Burt • Simpson Strong-Tie, Co. Jay Halteman • Wood Tech Systems, Inc. Michael Schwitter • Alpine, an ITW Company

Open for Business We are moving forward quickly, we want you to come along!

DO YOU FEEL THE CHANGE

odology. We understand the building

evolving right before our eyes, whether

the framing, and we understand the

HAPPENING? The housing market is it’s the push to move more labor off-

site or the subtle shift from build-to-sell to build-to-rent. Our industry has been

design and the code, we understand

transportation and scheduling logistics.

We have to be experts in it all!

So, if things are changing, it

bearing the brunt of raw material fluc-

doesn’t make any sense for us to be

is finally causing pain for everyone, and

and SBCA can help us do that.

tuations for decades, but this latest run it’s got the full attention of everyone

anywhere but at the forefront of it all, For too long, I feel as though the

in the supply chain. Katerra and their

association was not readily respond-

have failed, but they made clear there

held ourselves back. But no longer.

cash-burning disruption engine might is a big appetite to find a better way to construct buildings.

Who better to be at the forefront of

change than us? We are all in the business of creating and manufacturing

innovative, custom-made products on

every job. We are the most inspected,

scrutinized and regulated entity in the entire construction supply chain. We also have the most rigorous quality

control process governing our final

product. We are the one supplier to the builder who has always been heavily

invested in adopting the latest technology to enable the best framing meth-

ing to change. We may have even

We are now more focused on market development. Our team is refreshed and ready to tackle whatever chal-

lenge they encounter. We are open for business and want to work with

anyone and everyone in the supply chain to move our industry forward

and increase the market opportunities for every single component manufac-

turer and supplier to this industry. We

want to help you raise your game and become even more essential to your customer and be recognized as the

ultimate professional in the construction supply chain.

JULY 2 0 2 1

9

In my mind, this means we need to

help everyone be the best they can be.

It means everyone should be send-

ing a jobsite package out with every

delivery. It means everyone should be participating in Digital QC and thirdparty QA. It means everyone should be utilizing all the industry-specific

best practices we’ve developed and honed over the years and become

manufacturers and suppliers going to

other LBM groups to ensure we are

and seeing all the technology they’re

with every one of our customers. We

the next LIGNA trade show in Germany developing for their markets. An event like that could be transformative if a critical mass captured those ideas,

brought them back here, and then

formulated a strategy on how to implement some of it in the U.S.

But we’re not waiting until the

expanding our lines of communication want to work with all of these groups

to educate our customers not only on

what we do so well now, but also what

innovative solutions we can provide for them going forward to address their biggest pain points.

If you want to be part of this trans-

SCORE-certified. It means everyone

LIGNA show in 2023 to start push-

formation, if you want to have a say in

their peers from the across the coun-

partnership with the Home Innovation

age you to take the next step. Come to

should attend BCMC to network with try, share ideas, and find solutions, all while checking out the latest equipment and services available to us. It also means we need to pursue the next step together.

We need to identify what our coun-

terparts in Europe and Australia are

doing. Imagine 150 U.S. component

ing forward. We are building a strong Research Labs (HIRL) in order to have

better market data for more informed strategic decisions. We are reach-

ing out to our customers within the

National Association of Homebuilders,

the direction we push, I want to encourBCMC in Omaha, Nebraska, October

4-8. It’s the easiest, most cost-effective

way to get engaged and share your perspective. I hope to see you there!

growing our National Framers Council membership, and building in-roads

with lumber-buying cooperatives and

MIKE RUEDE, SBCA President

THE NEW AND IMPROVED SBCA ACADEMY IS NOW HOSTED IN A USER-FRIENDLY LMS (LEARNING MANAGEMENT SYSTEM)

Members receive special pricing on SBCA’s vast collection of online training programs including: › Quality Control (QC) › Third-Party Quality Assurance (QA) › Truss Technician Training (TTT) › Operation Safety › Forklift Safety

PROVIDE TRAINING ANYTIME, ANYWHERE SBCACOMPONENTS.COM/EDUCATION 10

sbcacomponents.com

› Housekeeping › Risk and Liability Management (ORISK) › Truck Driver Training › Truss Manufacturer Orientation (TMO)

Smarter software was essential.

That’s why Simpson Strong-Tie was essential.

Marshall McCarty President, Automated Building Components North Baltimore, Ohio

hen Automated Building Components needed help achieving their business goals, Simpson Strong-Tie provided a winning solution. ABC wanted to maximize efficiencies with flexible software tools that allowed for better project tracking and customized reporting.

Partnering with Simpson gave ABC the ability to share designs in real time across multiple truss plants and effectively manage projects from bid to delivery. With technology that’s more intuitive and robust, ABC can be more productive and can better sustain their business growth. And Simpson’s dedicated service and skilled support provide the expertise to help ensure ABC’s continued success.

W

Help your business reach its fullest potential. Partner with Simpson Strong-Tie today by visiting go.strongtie.com/ics or call (800) 999-5099.

© 2020 Simpson Strong-Tie Company Inc. ABCTRUSS3A

A BONUS FOR THE BONUS ROOM HERE’S AN ALTERNATIVE TO THE TRADITIONAL AT TIC TRUSS GETTING MORE FOR LESS. That

product in that category is the

seems to be the name of the game

attic roof truss. While still rely-

when it comes to homebuilding

ing on the triangle shape and

today. Whether you’re talking about

metal connector plates that define

the scarcity of jobsite labor, the cost

today’s roof truss, the attic truss

and availability of construction

strengthens the top and bottom

materials, or the shrinking size of

chords. It then shifts the interior

home lots and corresponding home

webs to create a large open area

footprints, homebuilders are looking

in the center that can be finished

space. This article is going to look at

for any solution that allows them to

off to create bonus square footage,

a solution Howard has developed for

offer the most house for the low-

in a home that would otherwise be

some of his builder customers and

est cost. This is certainly not a new

literal dead air.

explore some of its greatest benefits.

trend, but it is especially acute today

a lower cost is great, but Howard

Put a Floor in the Roof

levels of demand.

Gauger, engineering department

Simply put, what Howard suggests is

manager for Carpenter Contractors

instead of building a traditional attic

industry offers numerous fram-

of America (CCA), points out the tra-

truss, the floor of the bonus room

ing solutions that allow builders to

ditional attic trusses may not always

should be framed using a traditional

do more for less. One traditional

be the best way to provide that

floor design, and then the rest of the

The component manufacturing

12

Getting more square footage at

given the almost unprecedented

sbcacomponents.com

roof can be framed with separate

tive. Howard adds, “The open webs

conditions are also an important

smaller roof trusses.

also provide an optimal space to run

aspect to address. “If you’re going to

mechanical, electrical, and plumb-

add this bonus space within the roof

tant factors to consider is overall

“I think one of the most impor-

ing infrastructure.” The standard

envelope, you have to add the stairs

performance,” says Howard. “Just as

wall framing above would also allow

up to it,” says Howard. Adding or

you would with a traditional second

for typical electrical, insulation, and

stacking stairways is a logical way to

story of a house, you want the floor/

plumbing installation methods.

establish bearing, from one end of

ceiling diaphragm to have minimum

the floor trusses in the roof down to

deflection or bounce.” When possible,

Mind Your Bearings

using a floor truss for the floor fram-

When adding the bonus square foot-

For example, on a recent project

ing makes sense from this perspec-

age for a builder in this way, bearing

for one of Howard’s customers, the

the foundation.

JULY 2 0 2 1

13

Bonus Rm

initial plans didn’t specifically

Foyer

Hall

show any accommodation for square footage within the roof envelope (see figure 1). However, the customer was asking to add it using attic trusses. Howard looked at the plans and suggested adding a bonus room with minimal adjustments to the original plans (see figure 2). In this case, all it required was shifting two of the steel beams in the basement and making one of the bedroom walls bearing (see red circle locations in figures 1 and 2).

“This is something I’ve done for multiple customers,” says Howard.

“The best part is this approach minimizes deflection, is easy to ship, and can actually save the customer money because it can be constructed out of smaller-width materials that are easier to source.”

Foyer

Hall

Bottom Line Whether your customer is actively asking for a way to squeeze more square footage into their plans, a component manufacturer can actively differentiate themselves in the market if they get into the practice of exploring this option with their customers.

Attic trusses have traditionally been the way to accomplish this task, but Howard offers up a strong alternative to consider that may end up being a more cost-effective, betterperforming option.

14

sbcacomponents.com

Basement

FIGURE 1

FIGURE 2

JULY 2 0 2 1

15

PEAKING

AT THE RIGHT TIME TCM’s journey in starting a new truss plant is full of insight

O

perating a successful component manufacturing operation in today’s build environment takes forethought, tenacity, and flat-out gritty determination. Imagine starting a truss plant from scratch, after what your own company has been through over the past six months. Whatever you can imagine, you’re probably just scratching the surface of what the leadership behind Summit Structural Systems has navigated as they got their new operation in Lincoln, Arkansas, up and running earlier this year.

Summit’s new facility supplies wood roof and floor trusses for a wide variety of projects, from large

post-frame buildings to sprawling multi-family projects.

16

sbcacomponents.com

“HAD WE KNOWN

turnkey framing operation

ence there was a lot to gain

a start-up manufacturing

WHAT WAS GOING

has had a growing portfo-

from converting tradition-

operation eliminates one of

TO HAPPEN WITH THE

lio of work and was buy-

ally stick-framed roofs and

the major challenges any

LUMBER MARKET THIS

ing more and more wood

walls in their market to

business faces. Another big

YEAR, WE MAY HAVE

roof and floor trusses from

component framing. “When

challenge is getting into a

CHANGED OUR PACE

multiple component manu-

it comes to the wood fram-

field you know little about.

JUST A BIT,” chuckles LD

facturers (CMs) for their

ing, our turnkey operations

“We had certainly worked

Harris, the driving force

projects.

can do a lot more volume

with a lot of manufacturers,

if everything is component

and we had certainly come

behind Summit’s creation.

“As we looked at the

“However, with just a few

trend lines and what we

months under our belt

were going to need in the

I am very excited about

future, we decided we

what we have been able to

wanted to control our own

accomplish and where we

destiny when it came to the

are headed.”

wood framing,” says LD.

Their journey to start

“We saw that not only will

a brand-new operation is

we need more wood roof

instructive to everyone in

and floor trusses, but there

the industry in that it pro-

will be plenty of new busi-

vides a unique perspective

ness in our region to sup-

on what it takes to enter

port the additional capacity

the industry, what needs

Summit brings.”

to be considered, and most

In other words, TCM got

importantly, who you can

into the game not because

turn to for help.

they didn’t like the prod-

Understand the Need

"WHEN IT COMES TO THE WOOD FRAMING, OUR TURNKEY OPERATIONS CAN DO A LOT MORE VOLUME IF EVERYTHING IS COMPONENT FRAMING. THE MATERIAL AND CYCLE TIME SAVINGS ALLOW US TO TAKE ON EVEN MORE PROJECTS.” — L D H A RRIS

uct they were getting from other CMs, but because they

LD is the vice president

knew the long lead times

framing,” says LD. “The

to appreciate what we liked

of operations for TCM

they were already dealing

material and cycle time

most about the roof and

Enterprises, one of the

with were only going to get

savings allow us to take on

floor trusses, but we knew

region’s fastest-growing

worse. Further, LD and the

even more projects.”

we had a lot to learn about

commercial metal and wood

rest of the TCM leadership

framing contractors. Their

had learned from experi-

Certainly, bringing a large book of business to

how to actually fabricate them ourselves,” says LD.

JULY 2 0 2 1

17

Gather All the Data

ITW Company, “I was excited

ing through the facilities,

of thoughts on our initial

Neither LD, nor TCM’s

about what LD and his crew

LD peppered everyone with

approach,” says LD.

founder Jon Tuggle, had

wanted to accomplish,” says

questions ranging from

any background in the truss

Dustin. “They didn’t want to

material throughput to best

at several operations, LD

industry. They are contrac-

take business from anyone,

practices for handling, stor-

developed a set of pro forma

tors by trade. “So we did

they wanted to convert proj-

age, and transportation.

financials, or forecasts, to

some analysis,” says LD.

ects and grow capacity for the

“A lot of analysis. Both on

future growth they knew was

and Dustin’s expertise,

operation they should build.

what we could learn on the

going to happen. I wanted to

I learned a lot about the

“Dustin was an incredible

type and volume of work

help them in any way I could.”

industry and got answers

resource, he was incredibly

Dustin started by con-

to important questions I

helpful in figuring out the

that was coming to the area

“Between all the tours

After taking a hard look

determine the size of the

through national builders

necting LD with several

wouldn’t have necessarily

ROIs on all the investments

and other developers, and

CMs. “There’s no better

known to ask,” says LD. The

we had to make.”

then we learned as much as

way to learn the business

plant tour that sealed the

we could about how differ-

than to walk through the

deal in LD’s mind was with

Make the Leap

ent component manufactur-

operations of others and ask

Donnie and Bo Powers at

One of the main things LD

ers (CMs) provide product

them a million questions,”

Panel Truss in Henderson,

focused on in all his tours

for that type of work.”

says Dustin. So LD and his

Texas. “They were so open

was figuring out how much

Early in this process, LD

team went on a whirlwind

and helpful, and hearing

physical space and produc-

met Dustin Johnson, district

tour of several CMs across

all their lessons learned on

tion equipment they would

sales manager for Alpine, an

the country. While walk-

equipment solidified a lot

need to produce the volume

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they had in mind. “We were

pulling out all the stops to

looking in several locations

finish what should have

throughout the region and

been a six-month rehab

then a building just fell

project in a little over two

in our laps,” says LD. The

months. The biggest hold-

former Sunny Fresh egg

up on the whole renovation

plant in Lincoln, Arkansas,

was installation of new elec-

became available at the right

tricity infrastructure. “We

price. “The building was in

were actually able to install

rough shape, but it fit our

all the machinery without

needs and we were able to

any power in the build-

move in and start renovat-

ing,” says LD. “Everyone at

ing it immediately,” says LD.

Alpine provided excellent

In addition, TCM was able

customer service, and in the

to purchase ten additional

end the lack of electricity

acres of land right across

only set us back a couple of

the street to enable future

days. It was amazing.”

expansion.

Summit’s facility is ini-

TCM’s crew completed a six-month rehab in two months, and equipment was installed even before the power was turned on.

mitted to producing wall

TCM’s needs, we’ve had

tially set up to produce roof

panels too, likely adding

several of our customers ask

set to work renovating the

and floor trusses, but LD

that product line in the not-

us to make wall panels, so

40,000 square-foot facility,

says the company is com-

too-distant future. “Beyond

we know the need is there,”

The TCM team quickly

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19

Summit utilizes the

latest technology to facilitate the most

efficient and accurate

production possible.

who helped us understand

scarce, and all those early

component manufactur-

forecasts suddenly looked too

ing, were instrumental in

optimistic. “I’m proud of how

connecting us with people

this team has handled all that

throughout the industry

adversity,” says LD. “Five

and help us identify expe-

months in and we are really

rienced people we could

surging ahead with a bright

bring in right away,” says

future ahead.”

LD. To that end, Summit boasts on their website they

Bottom Line

already have over 100 years

Whether you’re looking to

of truss industry experi-

launch a whole new opera-

ence employed to help cus-

tion like Summit, or simply

tomers, whether it's for a

looking to expand your

commercial, single-family,

current operations, TCM’s

multi-family, or agricultural

journey is instructive. First,

building.

gather as much informa-

All of that experience was

tion about future needs as

put to the test early as equip-

you possibly can. Next, find

ment was installed the first

a partner like Alpine who

week of January 2021, and

can connect you with other

the first trusses were loaded

component manufacturers

says LD. “We know that

Build the Team

wall panels are tough to do

The other big challenge was

onto new roll-off trailers

to learn from. Finally, make

right, so we’re going to get

assembling a top-tier team

bound for a jobsite by the

sure you’re assembling the

a few quarters of experience

to get Summit off the ground

fourth week of January. Then

right team to get the most

under our belt and ease into

and be successful out of the

the lumber and steel markets

out of the capacity you bring

it slowly.”

gate. “Our initial contacts,

erupted, material became

on line.

20

sbcacomponents.com

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A RECIPE FOR AVOIDING DISASTER Here are the proven ingredients to manage workers’ compensation insurance costs.

MY WIFE IS A GREAT COOK who has amassed a giant notebook full of delicious recipes. One of the reasons her food is so good is because she follows these recipes closely. I’m particularly fond of her English toffee. It’s exquisite, however, this recipe requires attention to detail and diligence (execution of each step in the process). Similarly, this article will share a proven recipe to lower your workers’ compensation insurance costs (and improve productivity) that will yield sweet results if followed diligently.

This recipe contains ten ingredients, all of which should be analyzed and diligently added to your overall efforts.

22

sbcacomponents.com

INGREDIENT:

Review Current Processes, Procedures, and Results

INGREDIENT:

Commitment by Management DIRECTIONS:

DIRECTIONS:

Management commitment is an essential

Successfully following a recipe starts with

ingredient. Management support and

gathering all the needed ingredients and

engagement, recognized by all employees,

understanding the process by which they will

will allow your safety-focused initiatives to

be combined. You can do this in your facility

move forward and deliver positive results.

by first asking and answering the following

The steps to gain management buy-in are:

questions:

• Determine what metric is important

• What safety programs and training do we have in place?

to management.

• One useful metric is the workers’

• How often do we conduct plant safety

compensation cost per full-time equivalent

How do we measure effectiveness?

workers’ compensation costs for 100 FTEs

inspections? Are they effective?

• What do our injury and illness reporting forms look like? Who is accountable for completing them?

• How do you ensure claims are reported immediately and accurately?

• How comprehensive is our transitional

(FTE) employee. For example: If your

is $200,000, then your cost per FTE is

$2,000. Measure this metric each year to

help monitor cost trending and even cost per division within your company.

• Define the financial impact of a single claim, fully considering direct and indirect costs.

employee medical restrictions from the treating physician and following them?

INGREDIENT:

Train Supervisors DIRECTIONS:

INGREDIENT:

Review Return-To-Work Policy

Supervisors must clearly understand how to respond to injuries, as this response sets the tone for the claim outcome. Essential

DIRECTIONS: Look over your return-to-work (RTW) policy to ensure transitional duty is clearly outlined as: • Temporary, lasting no longer than 90 days.

• Similar in the shift and hours worked with the employee’s current job.

• Containing no overtime.

• Compliant with the Americans with Disabilities Act.

• Required as a condition of employment.

a lot of essential ingredients and they all take

duty policy?

• What is your process for obtaining

There are

a lot of care and dedication to create, implement, and evaluate

ingredients in supervisor training should

in order

involve the following components:

to ensure the

• Understanding the benefits, processes,

and procedures involved in filing workers’

result is a success

compensation insurance claims and being able to explain them to an injured worker.

• Knowing the appropriate post-injury response.

• Determining the most appropriate transitional duty to fit any physical restrictions.

• Understanding how communication on

a personal level with an injured worker is essential to positive outcomes.

JULY 2 0 2 1

23

• Provides a work environment where injured

INGREDIENT:

employees are encouraged to report the inju-

Hire the Right People

ry, and in return receive piece of mind, medi-

cal guidance on steps to self-treat the injury or

assistance in seeking further medical attention.

DIRECTIONS: Obviously, if you hire people well-suited for the work they are asked to perform, chances of injury and even some illnesses are reduced significantly. In your hiring

INGREDIENT:

Obtain Proper Medical Care

practices, make sure you: • Review your job descriptions, your employment application, and interview process.

• Conduct thorough background checks.

• Perform post-job medical, physical strength, and mobility evaluations.

If you hire people well-suited for the work they are asked to

• Administer personality, cognitive, and/or

integrity tests to gather baseline information on new hires.

• Review initial training and onboarding

procedures to ensure they are effective at preparing new hires to perform their

perform, chances

assigned tasks. If they are assigned new

of injury and even

the process by which they are trained.

and/or additional tasks after hire, review

some illnesses are reduced significantly.

and proper medical care to address a specific injury has a significant impact on any workers’ compensation insurance claim and the employees’ road to a full recovery.

As such, ensure you: • Have access to highly qualified doctors and/ or medical facilities in order to treat injured employees during all business hours for all business locations.

• Have the ability to provide immediate

transportation to the medical facility for

an injured employee, in the event medical able or cannot arrive in a timely manner.

INGREDIENT:

Responding to Injuries

INGREDIENT:

Manage Claim Handling

Company and co-worker response in the initial moments after an injury occurs

DIRECTIONS:

heavily determines the outcome of the

In managing a claim, there are a few

claim. Having a consistent post-injury

important steps to take:

procedure dramatically improves results.

• Discuss claims handling options and

To that end, ensure your company: • Is committed to providing timely incident

reporting. Studies suggest the best outcomes occur when an injury is reported within 24 hours of the injury.

• Is prepared to

provide on-site

injury triage.

sbcacomponents.com

It should go without saying that sufficient

emergency transportation is either not avail-

DIRECTIONS:

24

DIRECTIONS:

expectations with your insurance broker, insurance claims adjuster, or third-party claims administrator.

• Communicate with an injured employee

weekly, at a minimum, to check on the injury, their health and well-being, and to express concern.

• Obtain regular claim status reports throughout the claims process.

description of the work environment at the

INGREDIENT:

Consistent Claims Investigations

time of the injury.

• A review of any prior injuries, accidents,

and/or relevant medical records that might provide context to the severity and impact

DIRECTIONS: Post-injury investigations are also an

of the current injury.

important ingredient that impact workers’ compensation insurance costs. To be effective, these investigations should include: • Injured workers’ essential information,

INGREDIENT:

Communication

which must include name, date of birth,

Social Security number, and wage should be completely documented.

• Thorough details concerning the injury,

DIRECTIONS: When it comes to injuries and illness, it’s very

not simply “injury to shoulder”. Include the

important to establish employee expectations

aspect of an injury. Also include a thorough

filing, and returning to work. Your employee

what, where, why, and how regarding every

regarding injury and illness reporting, claim

When it comes to injuries

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Supervisors must clearly

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handbook should include the following:

Bottom Line

• A thorough description of what workers’ com-

That’s the recipe for controlling your

pensation insurance is and what it covers.

• How to report injuries and illnesses to

supervisors and, if necessary, obtain medical treatment.

• How employees will be paid if they miss work due to an injury or illness.

• A thorough explanation of the company’s RTW policy.

• A clear statement that the company wants

to support each employee throughout their full recovery and the desire that they can come back to

their job at the company.

26

sbcacomponents.com

12/14/2020 2:07:21 PM

workers’ compensation insurance costs.

There are a lot of essential ingredients, and they all take a lot of care and dedication to create, implement, and evaluate in order to ensure the result is a success.

If you would like further guidance on any of these steps, or if you simply have questions, please feel free to contact me at rlangton@bowermaster.com.

Rich Langton at Bowermaster & Associates is an SBCA endorsed insurance broker who has worked with the component manufacturing industry for 21 years.

OMAHA, NEBRASKA | OCTOBER 4–8, 2021

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27

To Whom are You Referring?

28

sbcacomponents.com

INCENTIVIZE YOUR CURRENT EMPLOYEES TO HELP YOU FIND YOUR FUTURE TEAM

IF YOU ARE PULLING OUT ALL THE

Ward, CTF’s VP HR, including EHS,

FOR EMPLOYMENT, one of your most

hiring practices. It’s not just going

STOPS TO FIND GOOD CANDIDATES

Risk, Legal, and QC. “It’s our standard

effective tools in the hunt for talent

through the interview. We don’t just take

is already in your back pocket: your

anyone who can swing a hammer.”

current employees. A well-designed

Clearly define and share with

employee referral program can help you

employees the knowledge, skills, appli-

put this tool to work in solving your cur-

cable work history, behavioral require-

rent workforce shortage.

ments, competencies, education, etc.

A recent SBCA survey of production

required for a given position. When

employees found that a referral by a

a candidate doesn’t work out, let the

friend or family member was the prin-

referring employee know why a referral

cipal entry into the industry (53.9 per-

wasn’t a fit, so they aren’t discouraged

cent). In order to maximize the effective-

from referring other folks in the future.

ness of an employee-referral program,

For example, beyond basic skills

employers need to ensure the program

requirements, you might also say your

is well-publicized internally, easy for

company is looking for “team players

employees to participate, and is

who can handle repetitive tasks without

backed by an incentive structure that

becoming frustrated,” which are behav-

actually entices participation.

ioral requirements that you’ll need to

Have a Clear Policy

measure via an assessment system. In the interview, have ready standardized

For example, California TrusFrame

questions around essential competencies

(CTF) accepts referrals for its job roles,

such as discipline, integrity, work pace,

including Class A drivers, designers,

and other qualities required for success

stackers, framers, and forklift opera-

on the job.

tors. The CTF incentive program clearly states referring employees receive $200

Put It Into Practice

for candidates with no experience, and

Thomas Oliphant, Sawyer 2, has been

$400 for those with experience, and new

with CTF for five years. He has referred

hires get $200 after 90 days on the job.

four employees during his tenure with

It’s also important to state that an

the company. “Just this past Sunday

employee referring a candidate doesn’t

I was telling a few other people about

mean they are automatically hired.

some openings at CTF and said they

Rather, every referral is still evalu-

should come to apply,” he said. “I

ated on the same criteria as all other

referred them because they told me that

candidates. “We get a large amount of

they were looking for a job. I also know

application referrals, but some of our

that we have a referral program, so the

employees get upset because we’re very

bonus was a plus.”

selective with who we hire and a lot of people don’t make the cut,” said Jason

Andrea Ward, CTF’s HR generalist, has also referred candidates to the

JULY 2 0 2 1

29

company. “If I didn’t like working here,

The guy was so excited, he would bring

through regular communication includ-

I would not refer others, but I do, and I

the tools to work to show everyone,

ing message boards, payroll notices, fli-

have referred five other employees,” she

which had a peer-focused social influence

ers, and discussions with the manager

said. “I know that for the yard it is very

that led to more referrals.”

when they have their regular staff meet-

hard work, and it may not be for every-

Because employees who referred new

ings. At CTF, managers are regularly

one, but those that make it past the first

possible hires were automatically entered

prompted to remind workers about the

few weeks are very good workers and are

into the drawing, it was easy to get more

program, and to post fliers throughout

here for the long haul.”

participation. To sweeten the deal, they

the facility explaining the program with a

also received a $500 referral bonus if the

list of positions currently needed.

For example, Andrea referred Lucero Alvarez, who was hired in August 2020.

new employee worked through 90 days.

“I’ve already told others that they should

“That was very successful, and it was

apply,” he said. “I enjoy working at CTF.

more sustainable because of the vendor

There is room for growth and the other

sponsors,” said Northway.

employees are very friendly. I know there is plenty of work, and overtime too.”

The growth Alvarez is referring to

& Sons, Inc.’s employee referral incentive program is structured so that if the

is the number of career paths CTF has

referred person is hired, after 90 days,

created and promoted to its employee

the employee who made the referral gets

base. “A sawyer is not just a sawyer,” said

$200; after a full year, that person gets

Jason. “You have Sawyer 1, 2, 3, senior.

an additional $300.

They have a path. And each level has a

24% I DON'T KNOW

As another example, H.M. Stauffer

58% YES

18% NO

“A number of people make it through

pay band that goes with it and the job

the first 90 days; that’s not too high a

descriptions, so they know what they

bar, but there’s only been a few that

need to go the next level. We created that

made it the whole year,” said Keith Bare,

system companywide for all positions.”

purchasing manager with H.M. Stauffer & Sons, Inc. “We have been doing this for

DOES THE COMPANY YOU WORK FOR HAVE AN INCENTIVE PLAN FOR REFERRING OTHERS?

Customize Your Approach

five years. But in light of the current hir-

There are many ways to design an

ing challenges, in March, we went around

Bottom Line

employee referral program. Ideally, you’ll

and reviewed the program with the

Your current employees may very well be

want to get input from an HR profession-

managers so they could talk about it with

your best source for future employees.

al. Many employers offer some sort of

the employees that we have this existing

Motivating them to help you fill your

cash bonus (e.g., $200 after the referred

$500 incentive program. And we had a

workforce vacancies is all about having

candidate stays on the job for 90 days),

recent success. I was just told that we

a clear employee referral program with

but you can offer other incentives like gift

just hired a new maintenance employee

incentives that truly motivate them to

cards for PPE, restaurants or entertain-

through this program.”

encourage others to apply. Once you have

ment, or an extra day off with pay, or a

a program in place, make sure to pro-

drawing for prizes like company swag or

Constantly Promote It

mote it to your employees on a regular

the latest electronic gadget.

The SBCA study of production employees

basis so it remains fresh in their minds

A previous employer of Larry

mentioned earlier also found that while

as they interact with their family, friends,

Northway took this approach. “If you

57.7 percent of respondents knew about

and acquaintances outside of work.

brought someone in the door, you were

their company’s current employee incen-

entered into a drawing once a quarter,

tive program, 18.4 percent worked for

and that was for a $1,000 gift card that a

companies that didn’t have a referral pro-

vendor sometimes even sponsored,” said

gram. Most surprising was that 23.9 per-

Northway, who is now production man-

cent weren’t sure whether their employer

ager with Engineered Building Design.

had such a program, if one even existed.

“One guy won and was able to purchase all new construction tools for his home.

30

sbcacomponents.com

This means if you have a program in place, make sure to promote it frequently

Dolly Penland, President & CEO of Business

Results, a PI® and CATIL Certified Partner and Talent Optimization consultancy, works with

organizations to help them hire and manage their talent to their highest potential. She specializes

in multiple areas including business sales growth, turnover reduction, and leadership development.

OMAHA, NEBRASKA | OCTOBER 4–8, 2021

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