Insights JAN/FEB 2015 by Think Baseline

INSIGHTS THE MAGAZINE FOR TODAYâ&#x20AC;&#x2122;S ELECTRICAL AND SYSTEMS CONTRACTORS

JANUARY/FEBRUARY 2015

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MARK YOUR CALENDARS IEC is offering exciting and relevant programs to grow your business and improve the entire electrical industry. Mark your calendars to attend these great events in 2015.

2015 IEC National Business Summit

Formerly the IEC National Leadership Conference

FEBRUARY 10-12, 2015

New Orleans, Louisiana

2015 IEC National Policy Conference

Formerly the IEC National Legislative Conference

MAY 4-6, 2015

Washington, D.C.

IEC Con 2015

The new name of the IEC National Convention & Electric Expo

OCTOBER 21-24, 2015

Tampa, Florida

For more information on each event, visit www.ieci.org. INDEPENDENT ELECTRICAL CONTRACTORS

INSIGHTS

CONTENTS

JANUARY/FEBRUARY 2015 | THE MAGAZINE FOR TODAY’S ELECTRICAL AND SYSTEMS CONTRACTORS

FEATURES

12 Attracting, Hiring, and Retaining the Best Employees

BY WILLIAM ATKINSON

16 Four Elements of Workforce Development

BY TIM JOHNSON

18 You’re Hired! How to Recruit and Interview Employees

BY NORB SLOWIKOWSKI

22 Contingent Skilled Labor: A Strategy to Decrease Hiring Costs and Challenges

BY ED ROJECK

26 B eating the Manpower Shortage: Recruit and Hire Like an Employer of Choice

BY SHIRLEY RAMOS

30 Updating the Playbook

BY CHERYL WEBER

www.ieci.org | January/February 2015 | Insights Magazine

CONTENTS CONT’D. 10

COLUMNS

6 President’s Message 8 From the Editor’s Desk 10 Marketing Matters 32 IEC Foundation 34 Featured Products

36 Code Corner 37 Ad Index 38 Safety Corner

COMMENTS? 4

Insights Magazine | January/February 2015 | www.ieci.org

We want your feedback! Send comments or suggestions to communications@ieci.org.

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MANAGEMENT PRESIDENT’S MESSAGE METHODS

Skilled Workforce By Mark Gillespie

egardless of the new opportunities and new challenges we face in 2015, there is a challenge that has remained consistent for years and it may be more pressing now than ever before. “How do I grow a qualified workforce?” I have yet to meet a contractor member that hasn’t expressed a continuing need for a skilled workforce and, unfortunately, there is no simple answer to this question. I have found the best way to have a skilled workforce is to train your workers at Independent Electrical Contractors (IEC). I believe apprenticeship is the foundation of not only our companies, but also our industry. Having been an apprentice, I now find myself encouraging others to formally learn the many skills necessary to be a qualified electrician. I find so much value in this that I have participated on national and local Apprenticeship and Training Committees to give back to IEC while nurturing the industry. A skilled journeyman electrician begins with apprenticeship. Today there are more than 36,000 active electrical apprentices across the U.S. Yet, the Bureau of Labor and Statistics is forecasting the need for more than 133,000 electricians by 2020. This is a huge gap, making the need for apprentice training even more important to meet the growing needs of our industry. That’s a 27-percent difference in supply and demand; the need to start equipping the workforce with the right training to meet these high demands is now. Apprenticeship has been and will continue to be the best method to train those beginning their careers in the electrical

trade. What an electrical apprenticeship looks like may evolve as we change the classroom model, but the skills learned during an apprenticeship create a path for the individual that leads to a profitable and successful career for the electrician as well as a sound investment for the contractor. The knowledge learned in the classroom gives the worker an edge over his non-trained counterpart. Learning electrical theory, code requirements, calculations, safety, control wiring, blueprint reading, and leadership skills give the apprentice added value that complements their on-the-job training. An apprentice can also reap the benefit of on-the-job and classroom training while earning substantially higher wages over their lifetime. Apprentice wages start at 30 to 50 percent of the median annual wage of $48,250 for electricians based on the Bureau of Labor and Statistics wage report for 2010. A recent document by the DOL reported that, over a 36-year career, individuals who complete a registered apprenticeship program will earn nearly a quarter million dollars more than those in the same field that did not complete apprenticeship. Skills learned by an apprentice make them more informed, more qualified, safer, and better employees. Training and education will continue to be key components to the success of the electrical contractor. No matter what the position, it goes without saying that training and education are investments that result in increased production, higher quality of work, and increased profitability. This is why the Department of Labor refers to apprenticeship as “The Pathway to Success.”

Insights Magazine | January/February 2015 | www.ieci.org

Apprenticeship is just the beginning of training and education. As an electrical contractor it is important to continue the educational and training process for our electricians. Code updates, safety training, and supervisory skills are just a few ways to support even the most seasoned electricians and as a result, the better trained journeyman will result in better trained apprentices. One thing will never change when it comes to operating a profitable electrical contracting company and that is the requirement for skilled electricians. I encourage you to make an investment in the future of your business and our industry by making an investment in apprenticeship and continuing education opportunities for your workforce. Mark Gillespie is IEC’s 2015 National President. As the principal elected officer of the association, Gillespie serves as the National Chair to the Board of Directors, House of Delegates, and Executive Committee. He also continues to serve locally as chair of the A&T committee and trustee at the IEC of Greater Cincinnati chapter. He has been in the electrical trade for over 40 years and is currently the owner and CEO of TMI Electric in Cincinnati, Ohio.

The 2014-2015 IEC Chapter Membership Drive will grow membership across the country as chapters and their members reach out to electrical contractors in their area. Chapters have set self-determined growth percentages as a goal to reach in the next year. IEC National will work alongside the chapters to provide support and assistance. The chapters who reach their goal will receive special recognition at the IEC Con 2015, October 21-24 in Tampa, Florida. IEC members know the value of our association. IEC continues to invest in the future of the industry and member companies through education, advocacy, networking, conferences, and so much more. Now is the time to communicate that to prospective members in your area. We can all take part in the Chapter Membership Drive. Invite a colleague to a chapter event. Pass your Insights magazine to a friend. Encourage a competitor to enroll their employees in the IEC Apprenticeship Program. A stronger IEC yields a better industry overall. The drive concludes in August 2015. For updates, visit www.ieci.org. INDEPENDENT ELECTRICAL CONTRACTORS

Insights MANAGEMENT

FROM THE EDITOR’S DESK

EDITORIAL OFFICE Thayer Long, Publisher tlong@ieci.org Joseph Cephas, M.A., Editor-In-Chief jcephas@ieci.org Deborah Stadtler, Managing Editor dstadtler@ieci.org Marlise Drischler, Associate Editor mdrischler@ieci.org ADVERTISING Rich Ryan (330) 686-0353 rgrsvc@gmail.com DESIGN/ART DIRECTION Think Baseline PRINTING Mount Royal Printing 2015 IEC NATIONAL OFFICERS President Mark Gillespie, Clarksville, Ohio Secretary/Treasurer Joseph Hovanec, Rahway, New Jersey Senior Vice President Bruce Seilhammer, Camp Hill, Pennsylvania Vice President Lloyd Quinney, San Antonio, Texas Immediate Past President Gordon Stewart, Houston, Texas Insights is published in January/ February, March, April, May/June, July, August, September/October, and November/December by the Independent Electrical Contractors, Inc. Insights Independent Electrical Contractors, Inc. 4401 Ford Ave., Suite 1100 Alexandria, VA 22302 Tel: (703) 549-7351 Fax: (703) 549-7448 www.ieci.org

Balancing Act It is hard to believe that we have already turned the page on another year. I’m excited to see what is in store for 2015. January is one of my favorite months – I love the renewed energy that comes with a new year. Even if a year ended on a sour note, once January hits most people have a positive perspective and a new set of goals both personally and professionally. Change is often a part of the goalsetting process, however, it is difficult to find the balance between the areas of your profession that need to be improved and what needs a complete overhaul. The proper balance of change and stability is something I, like many other professionals, struggle with. I despise the notion, “That’s the way we’ve always done it,” so I lean on the side of change. However, there is not a need to make wholesale changes for the sake of changing – that is an urge that many millennials in the workplace have a hard time fighting. So how do you choose what to change and what to keep the same? For me, in the professional arena, I begin with the end. I look at the end goal and then try to work backwards and figure out what the best way in which to achieve that goal. That helps determine if the current course will result in the goal being achieved, if tweaks need to be made, or if major changes need to be made. In using this approach, the vision for how you want your organization to look takes precedent over the desire to change. Letting the desired outcomes dictate the approach can limit or encourage change where necessary. I always hesitate to make professional New Year’s resolutions because they typically focus on changing processes. I instead set new goals and then refine my processes to fit the new goals. On the topic of change, throughout 2015 you will see improvements in the way we deliver Insights. We are committed to bringing current information in an eye-catching, easy-toread presentation. In 2014 Insights experienced subtle improvements to the design and now we will aim to continue that trend and upgrade our already high-quality articles. As a reader, we are interested in hearing from you. If you have a specific topic you would like to see covered in an upcoming issue or a new delivery method, please contact the Insights Editorial Staff at communications@ieci.org.

JOSEPH G. CEPHAS, M.A. Vice President of Public Affairs Editor-In-Chief, Insights IEC National FOLLOW ON TWITTER: @JosephCephas

Established in 1957, IEC is a trade association with more than 3,000 company members and 53 chapters nationwide. INDEPENDENT ELECTRICAL CONTRACTORS Headquartered in Alexandria, Virginia, IEC is the nation’s premier trade association representing America’s independent electrical and systems contractors. IEC National aggressively works with the industry to establish a competitive environment for the merit shop — a philosophy that promotes the concept of free enterprise, open competition, and economic opportunity for all.

If you want the most up-to-date information, stay connected with IEC National by liking us on Facebook at www.facebook.com/IEC.National, joining our group and following our page on LinkedIn, and following IEC National (@IEC_National) on Twitter.

Insights Magazine | January/February 2015 | www.ieci.org

call for presentations

IEC INVITES YOU TO SUBMIT A PRESENTATION FOR THE IEC CON 2015, OCTOBER 21-24 IN TAMPA, FLORIDA. If you are passionate about helping others be more profitable in the electrical contracting industry and have a proven and innovative idea to share with others, we want to hear from you! Presentations can be any practical or innovative idea that creates better businesses and increases profitability within these four categories: 路路路路

Business and Financial Management Emerging Trends and Processes Risk Management Workforce Recruitment, Development, and Leadership

Learn more and submit a presentation at www.ieci.org/2015-proposals.

DEADLINE FOR SUBMISSIONS IS FEBRUARY 27, 2015, SO ACT NOW!

INDEPENDENT ELECTRICAL CONTRACTORS

MARKETING MATTERS

HOW TO RESPOND TO

Online Reviews BY DEBORAH STADTLER

f your business is an electrical service provider, chances are you are familiar with online review sites such as Angie’s List or Yelp!. While online reviews can be a helpful tool for getting your business in front of customers, the wrong reviews can end up harming your reputation. Be sure to monitor your business mentions on online review sites. Beyond the bigger review sites, there may be local sites that you should be monitoring. On many sites, you can register or claim your business on the site so you get automatic notification if a review is left about your company. You won’t have the opportunity to respond to reviews if you don’t know what is being said about your company. Here are some tips on how to respond to online reviews to boost your online reputation.

Negative Reviews

Even negative reviews can be handled in ways that create a positive memory for the customer and other online users viewing the reviews. The first rule of responding to a review is to be human. Don’t use automated responses or try to apply the same response to all situations. Be sincere. When replying to a negative review, thank the user for being a customer first. Then, being specific and brief, address the problem directly using facts. Never let your emotions get the best of you in your response. Even if you believe the reviewer is wrong, an angry response can alienate customers and at worst, be shared among a much larger audience than the original review! Let the reviewer know that you are looking into or fixing the problem. Many reviews are the result of a specific issue so view them as feedback and build upon the situations to make your customer service even better. If the problem is complex or not easily addressed in a brief response, take the conversation offline by offering an e-mail address or contacting the customer directly.

Insights Magazine | January/February 2015 | www.ieci.org

Never let your emotions get the best of you in your response. Even if you believe the reviewer is wrong, an angry response can alienate customers and at worst, be shared among a much larger audience than the original review!

Don’t offer gifts online in response to a bad review. This looks like you are trying to “buy off” the reviewer. If the issue in question is resolved, you may offer a discount or coupon offline to the reviewer as an incentive to try your service again.

Positive Reviews

If your customer service is getting positive reviews online, you can build on those reviews for even more customer loyalty and increased visibility for your company. Thank the reviewer for the positive review. Ask them if you can share the review externally, perhaps in marketing materials, in your social media, or on your website. You can also share reviews internally. You can boost company morale and offer praise for company staff and service employees by internally circulating the positive reviews. Encourage more positive reviews by asking customers that are happy with their experience to leave a review. Corrigan Electric in Louisville, Kentucky, asks for reviews and feedback from their customers, including postcard surveys in addition to online reviews.

Feedback on Online Reviews “We have an e-mail address set up to get a notification if someone leaves an online review,” said Troy Corrigan, Vice President of Corrigan Electric. “We have four or five people monitoring that e-mail to make sure we respond to as many as we can. For good reviews, it is just a simple response thanking them. We are all over bad reviews to make sure that the customer is happy. We want to fix what is wrong and not have too many bad reviews.”

“It is important for every business to monitor their online reviews. Even if you and your company are not online, your customers are,” said Joseph Hovanec, President of Advanced Electric Design & Service, LLC, Rahway, New Jersey. “The most important thing to remember is you are dealing with individual people. It only takes one misunderstanding for you to end up with a negative review. The only way to soften the effects of even one negative review is to encourage all of your satisfied clients to post positive reviews. The more positive reviews you have for your company, the less a negative review will matter.” “We do try to monitor our online reviews as much as possible,” said Candy Branham, President of Branham Electric, St. Louis, Missouri. “Obviously good reviews generate more business. One negative review can do considerable damage besides taking significant time and effort to resolve. We take a proactive approach to online reviews and ask for them after all residential service jobs. It’s hard to say when someone will post a review and what they will say, but our experience is that happy customers post good reviews.” Companies that are not yet monitoring and responding to online reviews see the value in using them. “Our company is working on getting on the online review sites,” said Mike Gaffney, Owner of Gaffney’s Electric, Dillsburg, Pennsylvania. “We get compliments and good feedback, and it’s a shame not to use them to help the business. I believe that it will boost business to get involved in online reviews. Those compliments can be more powerful than other kinds of advertisements.” Deborah Stadtler is Director of Communications for IEC National and Managing Editor of Insights magazine. She has more than 10 years of experience in communications and marketing for small businesses and associations. She can be reached at dstadtler@ieci.org.

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www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

Attracting, Hiring, and Retaining the Best Employees by William Atkinson

Insights Magazine | January/February 2015 | www.ieci.org

hese days, hiring people is all about quality, not quantity. In decades past, companies hired large numbers of people, especially during lengthy periods of economic growth. Then, when the economy tightened, many companies had to let people go. Then, the process started again. In recent years, most companies have learned their lessons: Rather than hire large numbers of average employees and then downsize them later on, savvy employers are now judiciously hiring a smaller number of employees, focusing on the highest quality they can get, and then working hard to retain them. Every quarter since 2004, Gallup, in conjunction with Wells Fargo, has conducted what is called the Small Business Survey Topline. The survey polls small business owners on various

elements of success and challenges in their businesses, covering areas such as jobs. One question is: Over the past 12 months, did the overall number of jobs or positions at your company increase a lot, increase a little, stay the same, decrease a little, or decrease a lot? Of course, responses have tended to mirror the economy. (Percentages listed below are for the second quarter of each year.) In 2004, 19 percent reported “increased a lot” or “increased a little,” while 9 percent reported “decreased a lot” or “decreased a little.” With the advent of the economic downturn, hiring reflected the downward trend. Even with the economic upturn, employers still remained cautious about hiring: 10 percent (increased) and 23 percent (decreased) in 2011, in 2012

12 percent (increased) and 21 percent (decreased), and 11 percent (increased) and 23 percent (decreased) in 2013. It has only been this past year where the numbers began reversing: 14 percent (increasing) and 17 percent (decreasing) in 2014. This increase is confirmed by the responses to another question the survey asks: Over the next 12 months, do you expect the overall number of jobs or positions at your company to increase a lot, increase a little, stay the same, decrease a little, or decrease a lot? In 2014, a strong 21 percent of respondents reported “increase a lot” or “increase a little,” while a paltry 10 percent reported “decrease a lot” or “decrease a little.” CONTINUED ON PAGE 14 >

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE < CONTINUED FROM PAGE 13

Hiring the Best While employers are becoming a bit more confident these days about increasing their hiring, they have (as noted earlier) learned a lesson from the recession, and one thing they want to do is make sure that the people they do hire are the “best and the brightest.” However, while there is a desire to hire the “best and brightest,” doing so is not always easy. After all, the best employees are limited in number. When employers are in the market to hire, finding qualified people, especially those with the requisite technical skills, can be difficult. According to a recent report, “Bridge the Gap: Rebuilding America’s Middle Skills,” published by Accenture, Burning Glass Technologies, and Harvard Business School, 73 percent of U.S. companies expect an increase in their demand for “middle skills” jobs over the next few years. Middle skills jobs are defined as those that require more education and training than a high school diploma but less than a four-year college degree. Qualified electricians and related technical people fall into this category. More than half (56 percent) of those surveyed are struggling to find people with the qualifications to fill existing middle skills vacancies. According to the report, “While millions of aspiring workers remain unemployed and an unprecedented percentage of the workforce report being underemployed, employers across industries and regions find it hard to fill open positions. The market for middle skills jobs is consistently failing to clear.” The Accenture report underscores the results of previous reports. A 2013 Adecco report noted that 92 percent of senior executives reported that troubling gaps in skills plagued the workforce, and a 2013 Manpower Group Talent Shortage Survey reported that 49 percent of respondents said that talent shortages were undermining their ability to serve customers. Employers cited absence of

73 percent of U.S. companies expect an increase in their demand for “middle skills” jobs over the next few years.

technical skills (48 percent) as the most significant barrier to fulfilling their needs. According to the report, inadequate training and lack of experience were seen as the leading impediments to filling middle-skills positions. In specific, 54 percent of respondents said, “Trained talent is difficult to find,” and 50 percent reported that, “Sufficient experience is not easy to find.” However, just 22 percent of respondents, including those who said their companies are having trouble filling job vacancies, said they always are willing to consider hiring a new employee who requires additional training. This lack of talent is having a direct impact on company performance. According to the report, 69 percent of respondents indicated that the middle skills shortage regularly affects their performance, and 34 percent believe that the dearth of middle skills workers has significantly undermined their productivity. One IEC member committed to beating the odds is APG Electric in Clearwater, Florida. When it comes to finding the “best and brightest,” APG doesn’t bother putting ads in the paper. “We do get involved in some apprenticeship programs in the schools,” said Tim White, group manager. “However, word of mouth has always been our best strategy. Most of our employees are long-term. There is always room for growth, and we promote from within.” In fact, according to White, most of the managers and others in the office came up through the field, and the company has some second-generation, and even third-generation, people

Insights Magazine | January/February 2015 | www.ieci.org

working there. “This message has gotten out in the trade among our peers that we are a good place to work,” he said. Depending on the positions that it is looking to fill, F.B. Harding Inc. in Rockville, Maryland, uses professional recruiting service companies to find new employees. “Of course, this is more expensive than doing it ourselves and having staff in place to look for people, but there is value in having professional recruiters find people for us,” said G. Scott Harding, president. “We have used a few different recruiting service companies. Like anything else, we spent time focusing our relationships on those that have performed the best for us over time.”

Hiring as a Process Once applicants are available, both companies are careful about screening and ultimately hiring. “Our hiring process really is a ‘process’,” said White. “When we accept applications, we have a set procedure. Human Resources goes through the applications and looks for people with prior experience, but may, depending on our needs at the time, look for ‘greenies.’” Applicants are given an exam to check their basic mechanical knowledge, as well as aptitude test. If they pass these steps, they are brought in for interviews. After this, those who remain go through a physical examination. “We have a full-time life safety coach, who puts applicants through basic physical tests, such as being able to carry a ladder, walk up a ladder, turn a screw, etc.,” said White. Those who are still in the running are then drug tested.

While this comprehensive process is not foolproof, it is very effective, according to White. The company is usually able to retain four or so out of every half-dozen people it hires. Some of the ones who leave, especially the younger ones, do so of their own accord. “They may realize that the trade is not for them,” he said. “On other occasions, we may have to let someone go, and these are usually the ones who don’t seem to ‘fit into the family.’” F.B. Harding also utilizes a screening process. “We do a background check, and we also use drug testing, especially since many of the sites we work in are secure facilities,” said Harding.

Retaining Good People Attracting and screening are only the first steps in ensuring a good workforce. Once good employees are on board, it is important to have processes and programs in place to make sure they

remain – even for the lifetime of their career. “One of the most important ways we retain good people is having a structure in place so that, when people start, they all follow the same process,” said Harding. “That is, each person’s first interaction with the company is the same as it is for everyone else. This provides some consistency with how everyone begins their careers here. Everyone starts with an orientation. All new field workers then spend time in the fabrication shop, so they learn that process and how it fits into what the company does as a whole. This helps them understand our culture,” he said. “They also receive safety orientation.” In the past, before the company adopted this process a couple of years ago, it would hire people, and they would start by going straight out to a job site immediately after a quick orientation. Management found that this did not provide an effective introduction to the company and its culture.

Retention is also important to APG Electric. “The two people who founded this company came from two different companies, neither of which had a ‘family culture,’ and both of them were committed to creating that here, which they did,” said White. “Here, we let people know that we are hiring them for a career, not a short-term job. They know that, once they get in, they can have careers here if they perform well.” Another perk is that the company has an on-site wellness center with a fully-stocked gym, as well as a full-time life safety coach. Using the right strategies to locate, hire, and retain valued employees can make the difference for your company during shortages of skilled employees. William Atkinson is a freelance writer with experience in the construction and contracting industries.

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

FOUR ELEMENTS

of Workforce Development Over the next five years, and particularly along the U.S. Gulf Coast, the demand for skilled industrial construction craft professionals is expected to exceed the current supply by a significant margin. In states like Louisiana, major public-private partnerships have been created to determine the extent of the demand/supply deficit and develop programs to address career awareness and recruiting, training capacity, craft professional retention, and training program delivery. Industrial construction associations and individual contractors are engaged in the Louisiana efforts and similar efforts across the United States. We encourage our clients to develop a comprehensive and systematic approach to developing a workforce that is adequate in numbers and skill level. Doing so requires attention to four specific elements:

FORECASTING

• Accurately forecasting demand for specifically skilled workers • Accurately forecasting supply of specifically skilled workers • Developing a clear picture of the delta between the two

TRAINING

• Training in rigorous, accredited, industrybased certificate-bearing programs • Skill upgrade programs for incumbent workers

1. FORECASTING A number of tools exist to assist industries in forecasting the demand and existing supply of workers. In the construction industry, the state-ofthe-art tool is the Construction Users Roundtable (CURT) Construction Labor Market Analyzer® (CLMA®). The CLMA is a powerful, easy-to-use tool that produces actionable, real-time

CAREER AWARENESS AND RECRUITING

• General career awareness specific to create interest • Targeted recruiting based on specific forecast

EMPLOYING

• Systematic process to move individuals directly from training to careers

craft labor market intelligence for any area of the United States. It enables current and early project workforce planning in a new and unique way so that you can more effectively manage your project labor risk. So what’s different? Before, craft labor outlook data was questionable and expensive. Now the CLMA provides instant labor market clarity enabling

Insights Magazine | January/February 2015 | www.ieci.org

BY TIM JOHNSON

detailed project and human resource planning at reasonable cost. The CLMA allows for granularity in forecasting down to the zip code level. For instance, it can provide information on the supply of pipefitters in a particular region and the upcoming demand in that region. Recruiting and training plans can then be targeted and specific based on the accurate forecast. As the national economy rebounds and low natural gas prices drive an unprecedented level of investment announcements in the petrochemical industry along the Gulf Coast, the CLMA predicts that as many as 2 million new workers will be needed to meet demand over the next three to five years.

2. CAREER AWARENESS AND RECRUITING Career awareness programs are becoming more critical. As competition increases for the shrinking under-25-year-old demographic, every industry, from construction to aerospace, must differentiate itself in order to recruit new workers. Career paths are critical tools to clearly explain the options and career growth opportunities each industry can provide. Several industry groups and associations, including IEC, are increasing efforts to recruit and train the next generation of craft professionals. This includes reaching students in secondary schools and job training programs. These construction industry groups aim to narrow the skills gap through awareness of careers in trades, increased access to training programs, and opportunities for second careers or veterans in the trades.

The goals are: • Make career and technical education a priority in secondary schools • Shift the public’s negative perception about careers in the construction industry to reflect the wide range of professions available • Provide a path from ambition, to training, to job placement as a craft professional Using the specific forecast from the CLMA and increased awareness of careers, construction organizations are able to recruit strategically and with a consistent message.

3. TRAINING Once the forecast has been done, the difference between supply and demand is known and career awareness and recruiting are underway, the most critical element of a comprehensive workforce development program begins. Training should always be based on industry developed and accepted standards. It should be provided through rigorous and accredited programs that lead to industry-based certifications. Training of newly recruited individuals is critical but is not the complete answer to meeting the demand for skilled craft professionals in the construction industry. While recruiting new workers is critical, upgrading the skills of the existing workforce must be part of any workforce development strategy. For example, the State of Louisiana has a baseline of about 100,000 construction craft professionals. Based on the current level of announced investment, the state believes that it must recruit and train as many as 85,000 new workers. A

focus on skill upgrade programs for the existing workforce can play a critical role. In 2007, the Construction Industry Institute conducted an in-depth study of construction craft training. The results of the study indicated that, on any standard industrial construction or maintenance project, an investment in craft training of only 1 percent of the total labor costs of the project could yield the following average improvements:

Productivity 11%

10%

Turnover Cost

14%

launching their careers. Too many newly trained individuals struggle to catch on with construction companies and become frustrated, eventually leaving the industry before ever getting their career started. This is a loss of workforce supply, a loss of training investment, and a negative to the industry image. An integral element of an effective workforce development program is a systematic process to move individuals directly from training to careers. The details of the systematic process may vary from company to company and organization to organization but general elements of the process include:

Absenteeism 15%

15%

• Case management/Placement

Safety/Injury 26%

27%

ITEM

CONSTRUCTION MAINTENANCE

14%

Rework 23% 26% SOURCE: Construction Industry Institute (CII). RT231-1 “Construction Industry Craft Training in the United States & Canada” (Aug 2007)

If skill upgrade training could yield productivity improvements of 10 percent, this could serve to reduce the number of new workers that are needed and must be recruited. The existing workforce has already chosen to be in the industry and no recruiting resources need be spent on these craft professionals. The “Training” element programs must include both entry-level training of newly recruited workers and the skill upgrade training of the existing workforce.

4. EMPLOYING The “Employing” element is critical. No longer is it acceptable for us to recruit and train new workers and then “wish them luck” in finding employment and

• On-boarding assistance • Mentoring • Follow up A comprehensive workforce development program is more than just training. In order compete for the hearts, minds, and talents of the next generation of workers, a program must include forecasting, career awareness and recruiting, training, and employing. As the story goes, a young construction company executive said to an old construction company executive, “Why do we invest in training people? What if we train them and they leave us?” The old construction company executive responded, “Young man, what if we don’t train them and they stay?” Tim Johnson is President of the TJC Group, a Baton Rouge, Louisiana-based consulting firm specializing in workforce development, public affairs, governmental relations, and business association management. He can be reached at tim.johnson@thetjcgroup.com.

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

How to Recruit and Interview Employees BY NORB SLOWIKOWSKI

Insights Magazine | January/February 2015 | www.ieci.org

Getting from the application process to “You’re hired!” can be a daunting process. Simply put, there are two main components to recruiting and hiring: 1. Knowing the traits and abilities of the hiring pool. 2. Knowing the right questions to ask those candidates.

By having the requisite knowledge of who you are recruiting and what you should ask, you can hire the right people for the right job. This sounds simple, but many employers don’t bother to do the necessary research before embarking on the hiring process. Good recruiters know that they should come into every interview equipped with a good sense of who they are dealing with and how to best approach them. Recruitment is often centered around the next generation entering the workforce today. If one of your goals is to attract young people to the construction industry, you need to know exactly who you’re dealing with from a generational perspective. When breaking down an entire generation, it’s easy to “paint with a broad brush.” So, keep in mind that there are always exceptions to the rule. But it’s useful to look at general trends in the personalities and actions of the generation-at-large. With that caveat in mind, what follows is a broad overview of personality traits and behavioral styles that will help you get to the all-important phrase, “You’re hired!”

THE “ME FIRST” GENERATION The Millennial generation is also known as the “Me first” generation in some circles. They look at a company or job and ask themselves, “What’s in it for me?” This can be a positive in a lot of ways, but can also come off as self-absorbed. This generation believes in being unique and special. They have a strong self-identity that allows them to think about salary, benefits, and upward mobility above other factors. This strong sense of self can be a major positive for a company if nurtured in the correct manner. Above and beyond identity issues, Millennials are team-oriented people who want to be valued, respected, and see CONTINUED ON PAGE 20 >

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE By keeping questions simple and straight-forward, you put the responsibility on the candidate to prove their worth via their answers. Do they get rattled? Do they try to cover up for lack of knowledge by not directly answering the question? How does their general personality come off? Is this someone you want as part of your workforce? Is this person a “teammate” or a “free agent?”

< CONTINUED FROM PAGE 19

where they fit into the larger hierarchy of the company. They value interdependence and want to be involved in the decisionmaking process. Collaboration is seen as the best way to solve problems while fostering the growth of the employee. As for communication, the Millennials grew up in an age of technology, where computers are ubiquitous and communication primarily done through texting instead of talking. This outlook can often clash with the style of older employers, but it’s important to bridge the gap in ways that suit both sides. At the end of the day, it is best to have open, honest, two-way interaction with a focus on constructive feedback. They want the ability to bring problems to the forefront without negative repercussions. Furthermore, Millennials are looking for a workforce with a focus and understanding of five major traits:

Stand firm for the right cause and don’t compromise your standards. Get people to own their responsibilities. Creating ownership means the standards are understood and that there will be accountability when those standards are not met.

5. Divorce. For everything, there is a season. In other words, if something is no longer getting good results, eliminate it and find a better way forward. Stop owning the wrong responsibility and embrace change. This will foster a culture of innovation and continuous improvement, the two keys to creating a positive working environment.

So, what are the right questions? There is not a secret collection of magic interview questions that will unlock everything you need to know about a future hire. Rather, it’s about getting back to basics and sticking to the fundamentals of the job. By keeping questions simple and straight-forward, you put the onus on the candidate to prove their worth via their answers. Look to see if they have a solid knowledge base combined with the ability to improvise and think on their feet. Do they get rattled? Do they try to cover up for lack of knowledge by not directly answering the question? How does their general personality come off? Is this someone you want as part of your workforce? Is this person a “teammate” or a “free agent?”

1. Mistakes.

So that’s a general breakdown of the generation that is looking for jobs in the industry today. From personality to behavior to reinforcement, it’s important to have a working knowledge of what makes prospective employees tick.

Errors are great feedback mechanisms and learning opportunities. Let them know when something is not working and collaborate with them on how to find a more effective solution.

To the right is a list of questions that can help bring all of the above out during an interview process. You can embellish on them depending on the specifics of your company, but remember to keep it simple enough so the focus is on the answers and not the questions.

ASK THE RIGHT QUESTIONS

At the end of the day, if you ask the right questions you’ll find the right person. Take the process seriously and go into each interview with a sense of purpose while remembering that it’s not all about you. It’s about connecting the employee and employer in a way that sets the larger company up for future success.

2. Fear. They are generally not afraid of anything new or different as long as the change leads to doing their jobs more effectively. The key question is: What can we do to remove the obstacles and achieve positive results? Action is everything.

3. Anger. It’s okay to be angry about negative results yet resolve issues with emotional control and effective listening.

4. Stubbornness.

The next part of the recruitment and hiring process is asking the right questions. Once you know what type of worker you’re dealing with, you can begin to assemble the most effective list of questions to glean everything you need to know from a candidate. Employers often lose their way when they ask the wrong questions, leading to the hiring of the wrong candidate and worse, losing the right candidate to a competitor. Don’t let good workers slip through your fingers.

Insights Magazine | January/February 2015 | www.ieci.org

Norb Slowikowski is a productivity consultant who has been working in the construction industry since 1982. He is the author of the book, “Hard-Hat Productivity: 9 Critical Factors for Maximizing Profits.” Contact him at norbslow2@gmail.com.

QUESTIONS TO ASK DURING THE INTERVIEW PROCESS 1

What do you think are the key responsibilities for this job?

What needs to happen to ensure that a project is managed effectively from start to finish?

How would you go about eliminating the following barriers on the job site?

a) Lack of quality manpower.

b) L ack of understanding of scope of work.

c) Equipment/materials arriving late to site.

d) Lack of quality supervision, good coordination, and effective planning from the general contractor.

e) The general contractor superintendent “bouncing” you around the job site.

4 What is the best way to encourage teamwork between the “Team Triangle,” a.k.a., the foreman, superintendent, and project manager? 5

How would you deal with incomplete, poor-quality drawings coming out to the field?

What is the number one trait that makes a good foreman?

What would be your role in the pre-job planning meeting?

8 How would you rank the following five productivity indicators in order of importance for improving productivity? Why?

a) Supervisory skills training.

b) More action and support from management.

c) Better pay and fringe benefits.

d) Continuous training.

e) More qualified manpower.

9 Two of the biggest barriers to job site productivity is lack of support from project managers and clogged communication between the office and the field. How would you go about eliminating these barriers? 10

What motivates you? Be specific.

What’s the biggest challenge you’ve faced in your life up to this point? How did you handle it?

12 What do you think your current or last employer would say about your performance, work habits, and attitude? 13

What does being “customer focused” mean to you?

How do you respond to stress and pressure? What are your strengths? Weaknesses?

How do you react to the statement, “Productivity is a management problem?”

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

CONTINGENT SKILLED LABOR: A STRATEGY TO DECREASE HIRING COSTS AND CHALLENGES BY ED ROJECK If you’re like most IEC contractor members, your business did experience some level of growth in 2014. To further accentuate that good news, McGraw-Hill’s 2015 Dodge Construction Outlook forecasted a 9-percent increase in construction spending for the coming year, with building in both the commercial and singlefamily housing sectors expected to grow by 15 percent.

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Insights Magazine | January/February 2015 | www.ieci.org

Perfect Balance

Optimal Work-to-Worker Ratio = Max Productivity.

Managing an ever-fluctuating workload to have just the right number of craftsmen – not too few and not too many – wreaks havoc on construction profit margins. Our staffing strategy enables you to maintain a leaner core workforce and, as workload warrants it, to confidently access proven craftsmen – our safety-minded, productive employees in all trades, at all skill levels – on a “precisely-as-needed, only-as-needed” basis. Let us help you gain full control over labor-related expenses and to achieve a higher level of profitability by meeting these Six Key Business Objectives:

New Video! Learn Exactly How Partnering with Tradesmen Maximizes Workforce Productivity!

To schedule a brief consultation visit tradesmeninternational.com/Balance or call 800.573.0850.

Tradesmen Gets You There.

1. Maximize Workforce Productivity 2. Minimize Workers’ Compensation Exposure 3. Control Rising Benefits Costs 4. Reduce SUTA / Unemployment Costs 5. Decrease Hiring Costs and Challenges 6. Protect from Labor Legislation

FEATURE

< CONTINUED FROM PAGE 22 Equally as telling, the U.S. Department of Laborâ&#x20AC;&#x2122;s Bureau of Labor Statistics (BLS), in a recent 10-year employment and labor force projections report, documented that constructionâ&#x20AC;&#x2122;s employment growth rate over the next decade will be tied for first with healthcare in a study that included 19 market sectors. Specific to our sector, the BLS projects that by 2022, the employment growth for electrician jobs will increase from 583,500 to 698,200. This 20-percent growth is faster than the average employment growth for all occupations, which is projected at 11 percent comparatively. While this industry growth is clearly welcome, it does raise major concerns as to how contractors will find a qualified workforce to get the job done as we are already experiencing a shortage of electricians. Essentially, when you combine a growing economy and workload with the fact that more tenured craftsmen are retiring or exiting the trades compared to individuals entering the trades, the result will be an even more severe shortage of all types of skilled workers for the foreseeable future.

Insights Magazine | January/February 2015 | www.ieci.org

STAFFING SOLUTION One solution utilized by many contractors is incorporating contingent labor into their on-going staffing strategy. “As the industry continues to grow, we believe there will be even more reliance on contingent skilled craftsmen by commercial, residential, and industrial contractors,” said Mike Christiansen, Tradesmen International’s Senior Vice President of Sales and Marketing. “In previous years, contractors simply added short-term employees onto their permanent payroll to meet workload spikes. Now, as the demand and shortage of qualified labor escalates concurrently, construction management is increasingly opting to supplement their core employees with high-caliber contingent trades to better meet fluctuating workload requirements.” Staffing firms with a focus on the construction trades invest heavily in workforce recruitment initiatives and stand prepared to meet a contractor’s supplementary workforce requirements with large pools of pre-screened craftsmen ready for immediate dispatch. As a result, by using staffing firms, contractors reduce recruitment-oriented costs related to job board advertising, referral programs, interviews, and other on-boarding efforts. In addition, because most staffing firms cover the workers compensation, unemployment, benefits, and other payroll costs related to their contingent workforce, contractors also avoid these expenditures related to their permanent payroll. “The construction industry workload fluctuates up and down quite often,” said John Mullen, President, J.M. Mullen Electrical Services. “It only makes sense to supplement my core electrician employees with extra manpower from staffing companies, which ultimately insulates me from these additional expenditures I would normally incur with incremental full-time employees that I only need for short-term periods.”

“The construction industry workload fluctuates up and down quite often. It only makes sense to supplement my core electrician employees with extra manpower from staffing companies, which ultimately insulates me from additional expenditures.” – JOHN MULLEN, PRESIDENT, J.M. MULLEN ELECTRICAL SERVICES

“More and more, contractors are including staffing field representatives in their monthly and project-specific labor planning sessions,” continued Christiansen. “This allows us to gain first-hand knowledge of the type of work calendared and to get solid projections related to the volume of electricians at various specific skill levels that will be needed for the short- and long-haul.” Ultimately, by engaging in true partnerships with staffing personnel, contractors afford staffing firms ample time to effectively source through their substantial trade databases or to tailor a recruitment initiative specific to their client needs. The end result is the ability for staffing firms to schedule or reserve trade employees with specific skill-sets – from a few workers to hundreds – well in advance of their contractor client’s actual need date.

VALUED EMPLOYMENT OPPORTUNITIES Commercial, residential, and industrial craft professionals are now recognizing the heightened role staffing companies play in the industry and value employment opportunities with these organizations. “The stigma of contingent or contract craft employees as being inferior has been stamped out,” said Matt McClone, Tradesmen’s Vice President of Workforce Development. “Craftsmen recognize that credible staffing services have stringent hiring procedures

that have effectively sharpened the overall quality and reputation of the nation’s contract employee.” Controlling the quality of its workforce has led to sizable employee retention increases as well as an upsurge of craft candidates proactively seeking employment with staffing firms. “While the workforce shortage impacts us all,” said McClone, “America’s craftsmen recognize the relationships reputable staffing firms have forged with thousands of leading construction companies in all markets. Employees understand this equates to job stability or security for them and their families. When one project is about to end, they know we’re already scheduling them in for the next project whether it be an office tower, power plant, ocean liner, national monument, or distribution center.” In addition, many of the larger staffing firms are now able to attract some of the industry’s top skilled talent because they can offer their employees competitive pay, full benefits, paid time off, skill training opportunities, even OSHA-approved safety training, and on-going safety communication. Ed Rojeck is Director of Marketing for Tradesmen International. For more information on Tradesmen’s staffing service and other labor-related services including Labor Productivity Consulting and OSHA Safety Training, e-mail ed.rojeck@tradesmeninternational.com. Or, visit www.tradesmeninternational.com.

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

BEATING THE

MANPOWER

Insights Magazine | January/February 2015 | www.ieci.org

SHORTAGE: Recruit and Hire Like an Employer of Choice BY SHIRLEY RAMOS

A person doesnâ&#x20AC;&#x2122;t have to search long or hard to find an article that references the lack of skilled labor or the manpower shortage in the construction industry. FMIâ&#x20AC;&#x2122;s Construction Industry Talent Development Report confirms that approximately 50 percent of general contractors and construction management from firms across the U.S. report experiencing a shortage in skilled labor. Moreover, the impact crosses a number of area specialties including mechanical, plumbing, heavy highway, and civil contractors. These shortages are not limited to large companies, but also affect firms that would be considered small to mid-size. Additional confirmation of the limited labor pool is cited by a survey conducted by the National Association of Home Builders where members reported an increasing number of shortages in skilled craft labor including carpenters, excavators, and bricklayers. The report further referenced that, due to the lack of skilled workers, there were wage increases and delays in completing projects on time. The labor shortage is confirmed and the impact is being felt.

CONTINUED ON PAGE 28 >

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE < CONTINUED FROM PAGE 27

FMI’s recent forecast proposes that construction will grow 30 percent in the next five years. With confirmed reports that labor is already at a premium in a growing industry, the result will no doubt be an increase in companies competing for the same labor resources. This shifts the advantage from the employer to the potential employee, and what used to be a “labor sea full of fish” is now a stark pond with an endangered species. Potential employees have choices and those with needed skills are actively recruited. Recent survey interviews indicate that strong potential candidates for craft and supervisory/management positions are often recruited weekly, if not sometimes daily, while currently employed.

THE VALUE OF BEING AN EMPLOYER OF CHOICE Conversations with a number of industry employees unearthed an unexpected common theme: Many of them had come to their present employer as a result of a recommendation by a friend or colleague. In lieu of the traditional job postings or even less traditional website and other ‘push’ methods of recruiting, these folks were approached by someone they knew who said “Hey, this is a great place, why not come work here?” Word-of-mouth recruiting has been utilized in competitive industries for years, often incentivized by recruiting bonuses in an effort to fill hard-to-fill positions. Companies that benefit from this practice are those where the incentive to bring a friend on goes well beyond any financial opportunity. It is the personal recommendation saying, “This is a great company to work for,” that closes the deal. It only makes sense then that being considered an “employer of choice” would make it compelling for any prospective employee. In a Professional Engineers Network (PEN) blogpost, the author references some staggering statistics. The current unemployment rate for engineers is approximately 1.7 percent,

with only 4.5 percent of college students graduating with an engineering degree. With 74 percent of employers reporting a lack of qualified candidates, and recent research showing that Millennials will most likely stay five years or less, we are no longer just talking about potentially being in competition for candidates, but also the high cost associated with potentially significant turnover. The PEN blogpost focuses on being an employer of choice to address these issues. The workforce shortage clearly exists at all levels in the construction, engineering, and architecture industries. There are number of characteristics that can propel a company to being an employer of choice. Preferred employers are often described as having any number of the following: Strong leadership, a positive and inspiring work environment, a collaborative and supportive management team, core values and purposes, clear expectations, inspirational and focused goals, and strong employee value demonstrated through compensation/benefit programs. The challenge is communicating those highly desired characteristics to potential employees. No one would argue that strong leadership and a collaborative work environment would be great in a potential employer, but what does it look like? How will potential employees get the message that it is better to work for one company as opposed to another?

RECRUITING AND HIRING LIKE AN EMPLOYER OF CHOICE An employer of choice is always working on developing and improving the peoplefocused qualities identified in sought after organizations. Industry employers, whether an employer of choice right now or on the path of becoming one, can and should recruit and hire like one. What then should companies consider as they are recruiting and hiring? How does a company recruit and hire as if it is an employer of choice? Successful human resource (HR) managers in

Insights Magazine | January/February 2015 | www.ieci.org

desired firms know they need to entice and engage potential employees by clearly understanding what they are looking for in an employer and communicating that during all stages of the hiring process. The arrogance of the “post the position and they will come” hiring strategy is being replaced by practices that reach out, understand the employee, and map the potential employee’s desires to the characteristics and practices of the company. What FMI is learning through ongoing research, specifically from Millennials that will be dominating our workforce within the next decade, is that they are searching for employers that understand them, are willing to work and communicate with them, and care enough to want to retain them. Although companies could never address every potential employee’s needs and wants, understanding some of the more common values that drive the available workforce will be important to gain the competitive edge in securing their employment.

Common themes have already been identified in early interviews with Millennials in both the construction and oil/gas industries. “I want you to want me.” Potential employees want to feel pursued. Successful HR managers engage and communicate early and often during the recruiting and hiring process. Long hiring processes and extended periods of time between interviews and offers could result in losing a desired employee. “I want to know where I am going.” Millennials are looking at not only what their position will be now but also the potential for the future. With the choices and mobility that is available to them, they are looking for a career path or at the very least some opportunity for the future. “I don’t want it to take forever.” Patience is not a virtue that you will find in many of the Millennials looking for work. Not only are they looking for a somewhat defined career path in the organization, but they are also looking

for structure and a timeline to achieve it. Many employees that leave in the first five years are looking for incremental advancement that they are unclear or unsure of with their present employer. “I want to have purpose.” Not only do your future employees want to have purpose, they want to know the organization has purpose as well. Developing language and communicating why the organization exists and how it benefits the industry is important. Communicating philanthropic and altruistic goals will also help a potential/new employee feel that sense of purpose. “I want to be valued. I want you to listen to me.” As Baby Boomers many of us experienced the culture of paying your dues and the covert tenure requirement before being seen as valuable to the company or worthy of sharing an idea or opinion. Even inexperienced Millennials are looking to be valued and heard early on in their employment. They are coming to the table ready and wanting to share their ideas. Most of them know that they are

lacking experience but they are looking to get into the conversation early on. Although a short and hardly comprehensive list, this insight for prospective employers is invaluable. Looking to recruit and hire like an employer of choice? The secret lies in understanding the employees that will designate you as such. Beating the manpower shortage is a choice – a choice of understanding, valuing, and connecting with the human capital in your organization and the human capital you are looking to acquire. If you or your organization is interested in participating in our research focused on Millennials and HR directors in the oil and gas industry, please contact sramos@fminet.com for more information. Shirley Ramos is a training consultant with FMI. She holds a bachelor of arts in psychology and education with a master’s degree in educational leadership and human resources. She may be reached at (303) 398-7213 or sramos@fminet.com.

www.ieci.org | January/February 2015 | Insights Magazine

FEATURE

Updating the Playbook BY CHERYL WEBER

Every three years, electricity becomes a little safer with the adoption of new National Electrical Code (NEC) requirements, and 2014 saw the latest updates. Staying abreast of code expansions is essential, and itâ&#x20AC;&#x2122;s also an opportunity for electricians to learn more about innovative safety products. Many of the latest devices are more versatile, solve problems, and save time.

Insights Magazine | January/February 2015 | www.ieci.org

Perhaps the biggest change impacting electricians on residential jobs is arc fault protection—the use of smart breakers (and outlets) that detect electrical arcs, or unintentional discharges of electricity across a circuit, which may cause fires. Arcs can occur at loose connections or where wires or cords have been damaged. This year the code expanded to include kitchens, making the protected circuits mandatory in virtually every room where people spend time. When you pull a permit, you must upgrade the breakers in the home. Arc fault circuit breakers and arc fault outlets are essential components used to meet this code. For example, The Home Depot carries arc fault breakers from all major brands and arc fault outlets from Leviton. These devices protect against fire by continually monitoring the electrical current in a circuit and shutting it off when unintended arcing occurs. There are multiple ways to meet the code requirement, says Ted Curtis, The Home Depot merchant for circuit protection and conduit/boxes/fittings. In the case of kitchens, where GFCIs have long been required to guard against shock, “we now stock a dualfunction arc fault/ground fault breaker from Square D. So you can do it at the breaker level with dual function, or you can have an arc fault breaker in your panel and the traditional ground fault outlet in your kitchen to meet code.”

HEAVIER DUTY A second NEC change affecting electricians is the extra-duty rating requirement for in-use covers on exterior electrical outlets. Curtis notes that homeowners use these outlets frequently—think spotlights, power equipment, and holiday lights—and over time the covers break off. Without the heavy-duty covers, rain or other weather can cause a short circuit. GFCIs got tweaked this year, too. Code now requires the installation of devices that test themselves every few minutes

This year the code expanded to include kitchens, making the protected circuits mandatory in virtually every room where people spend time.

and shut off if they’re not in order. “Traditionally, if you have a bad GFCI, you still have current and the outlet still works,” Curtis says. “The new GFCIs have a visual indicator that shows when the shock protection is not working.” If installing these devices isn’t second nature yet, it will be soon, says Paul Lingo, training director at IEC Rocky Mountain. “With everything required to be on AFCI or GFCI circuits, we will see a huge demand for these types of protections,” he says. The expanded codes may also mean higher profit margins for electricians. “If someone is requiring a service change, electricians can charge $2,000 to $4,000 now because of the different breaker boxes and the way it has to be done,” Lingo says. Mike Miller, owner of Miller Electrical Advisor, Aurora, Colorado, sees a similar scenario. “We’re doubling and tripling the time it takes to do a service change for an existing house,” he says. “We have to go through the house and identify every circuit, possibly terminate it, and buy double the amount of breakers.” However, meeting the updated code requirements in new construction is fairly simple, he adds.

HAVE YOUR SAY Beyond concerns about time on the jobsite and profit margin, few people will complain about the code’s intention of keeping people safe. In fact, you can have a say in developing safety measures for the next code cycle. In a

time-honored tradition dating to 1897, code change requests are submitted in a public process and then voted on and written by volunteer panels vetted by the National Fire Protection Agency (NFPA), according to Bill Burke, division manager of electrical engineering at the NFPA. The NEC has 19 technical code-making panels, he says. Anyone can propose a change, and suggestions are sent to the appropriate panel, comprised of about 15 principal members and their alternates. No one interest group is allowed to dominate in the deliberation process. “Our committee members are balanced among installers, enforcers, manufacturers, engineers, organizations such as IEC, and the like,” Burke says. No industry group can represent more than 30 percent of the committees. The folks proposing changes are typically inspectors who see things they don’t like, installers trying to make the job more efficient, or concerned engineers. If you’ve been mulling over issues that should be addressed in the NEC, now is the time to voice those concerns. “We are working diligently on the 2017 changes,” Burke says. “If you want to make a change and don’t put your oar in the water by November, you will have missed the 2017 cycle.” Cheryl Weber is a freelance writer specializing in the built and natural environments. She has written for Residential Architect, Architect, Custom Home Outdoors, The Washington Post, Remodeling, Builder, Washington Home & Design, and other publications.

www.ieci.org | January/February 2015 | Insights Magazine

IEC FOUNDATION

THE IEC FOUNDATION AND YOU

Here is an overview of what the IEC Foundation has provided to IEC chapters and members.

IEC Foundation Equipment Grants to IEC Chapter Training Centers has eclipsed the $5 million mark!

+ Provided scholarships to more than 195 IEC apprentices and college students. + The Scholarship Program has allowed the next generation to complete their apprenticeship program. + This program increases well-trained workers for the workforce of today and tomorrow.

IEC FOUNDATION SECURED MORE THAN $1.1 MILLION IN CASH GRANTS FOR IEC CHAPTERS!

+ Supported IEC Chapters by helping create state-of-the-art training facilities. + With “hands-on” training made available with the most modern equipment and materials, nearly 160,000 apprentices have been trained in IEC Chapter Apprenticeship Schools.

IEC FOUNDATION SCHOLARSHIP PROGRAM – $257,000 TO STUDENTS TO DATE!

Cash grants secured by the IEC Foundation for IEC Chapter Training Centers have provided resources to fund training aids and staff needed to build and maintain world-class educational facilities. Whether it has been the physical building, staff, recruitment programs, tools, audio-visual equipment, books, or a myriad other items, The IECF is there to help students succeed.

Insights Magazine | January/February 2015 | www.ieci.org

INDEPENDENT ELECTRICAL CONTRACTORS

PRIDE

MEMBERSHIP PRIDE members stand out as IEC champions for their extra support to IEC and the industry. Join these champions by becoming a PRIDE member today!

PRIDE GOLD LEVEL MEMBERS RECEIVE:

PRIDE SILVER LEVEL MEMBERS RECEIVE:

• Registration to the National Convention, which is automatically completed

• $25 off member registration fee and $25 off spouse/guest registration fee for IEC National Convention and National Policy Conference

• 10% off the National Convention registration price for other employees of the Gold Members’ company or chapter office • $50 off spouse/guest registration rate at the National Convention • $50 off registration fee for IEC National Policy Conference

• $150 off tuition for the Purdue Electrical Project Management Institute • 10% off IEC Pride Store orders • Engraved Silver Lapel Pin • Acknowledgement at National Convention

• $150 off tuition for the Purdue Electrical Project Management Institute

• Acknowledgement in Insights magazine

• 10% off IEC PRIDE store orders

• Posting on IEC National website

•E ngraved Gold Lapel Pin

ALL FOR $300

• Acknowledgement at National Convention • Acknowledgement in Insights magazine • Posting on the IEC National website ALL FOR $995

To sign up, visit www.ieci.org.

NEW & IMPROVED

Featured Products Klein® Tools Introduces Combo-Tip Drivers Klein Tools has released a line of Combination-Tip Drivers, designed for maximum contact with the combination head screws most commonly found on electrical devices and fittings. Available in Fixed-Blade Screwdrivers, Impact Rated Power Drivers, and the 11-in-1 Screwdriver, each is custom heat-treated to withstand the torque needed to fasten all types of combination head screws. For more details, visit www.kleintools.com.

Hubbell Lighting Expands LED Striplight Portfolio with Columbia Lighting LCR, LCL, and Upgraded LCS Hubbell Lighting has announced that Columbia Lighting has added two new LED striplights to its extensive portfolio of energy efficient lighting solutions—the LCR and LCL—and has upgraded the versatile LCS. For more information, please visit www.hubbelllighting.com.

TaskMasterTM – A Game-Changing Tool Innovation from ILSCO ILSCO’s new TaskMaster™ tool gives end-users unparalleled productivity, unprecedented value, and unrivaled versatility by allowing users to cut, crimp, and punch all with one device. TaskMaster eliminates the need to purchase, transport, maintain, and grapple with three separate tool systems. For more information, please visit www.ilscotaskmaster.com or call (800) 776-9775.

Dexter + Chaney Launches its New Field Tech Application Dexter + Chaney, developer of Spectrum® Construction Software, has launched Field Tech, its newest service management application. Field Tech is a powerful, yet simplified tool designed for technicians and other field operations staff to remotely access, create, and update work orders in the field. Using a tablet device, technicians can access the Field Tech app on Spectrum’s dashboard, log in, and see work orders or jobs they have been assigned. All of Field Tech’s functionality, including login, work order creation, and data entry, are integrated and synchronized with Spectrum applications, thus eliminating double entry and streamlining the flow of information. For more information, please visit www.dexterchaney.com.

Insights Magazine | January/February 2015 | www.ieci.org

Lutron Adds 0-10V Dimmer Sensors to its Maestro® Occupancy Sensing Family Lutron Electronics has announced new 0-10V Dimmer Sensors for control of Electronic 0-10V LED drivers or fluorescent ballasts. The new dimmer sensor use Lutron’s XCT™ passive infrared (PIR) sensing technology to ensure enhanced response to even fine motion like turning a page in a book. The combination of 0-10V dimming and occupancy sensing provides a simplified solution that meets energy codes while offering an optimized dimming experience for each occupant. By installing Maestro 0-10V Dimmer Sensors, customers can control the widely available 0-10V LED or fluorescent fixtures, while providing reliable sensing for energy savings. For more information, please visit www.lutron.com.

Hubbell Lighting Launches Versatile Commercial LED Downlight Fixture – Prescolite’s LBSLEDA Hubbell Lighting launched an all-in-one LED commercial downlight fixture—Prescolite’s LBSLEDA. Built to fit a standard 4x4 J-Box, the new fixture is the perfect alternative to recessed products in settings where plenum height is challenging or where fire codes restrict the use of recessed fixtures. Ideal for commercial, new construction, remodel, and residential applications, the LBSLEDA embraces an installation system that is versatile, simple, and seamless.

Legrand® Answers Call for Greater Network Capacity with 24Port Gigabit Ethernet Switch Responding to the need for infrastructure to effectively support the increase in networked devices being used in homes and small businesses, Legrand has introduced the DA2524 Gigabit Ethernet Switch. Providing highspeed Ethernet to as many as 24 devices simultaneously, the Gigabit Switch offers installers and distributors a valuable networking solution for new installations and retrofits. The DA2524 is available now. For more information, please visit www.legrand.us.

To learn more, please visit www.prescolite.com.

Legrand® Drives Electrical Load Management and Compliance with New Receptacles Legrand has announced the availability of its new Pass & Seymour® Plug Load Controllable Receptacles. The face of the new receptacles is pad printed with the universally recognized power symbol, which remains clearly visible after installation. This complies with the requirements of the 2014 National Electrical Code® Section 406.3 (E). It also meets the conditions of ASHRAE Energy Efficiency Standard 90.1: Section 8.4.2 and California Title 24 Part 6, effective July 1, 2014, both of which specify the requirement to permanently mark which outlets on receptacles are controlled. Pass & Seymour® Plug Load Controllable Receptacles are available in white, light almond, ivory, gray, black, brown, red, and blue and are on sale across the United States and Canada. For more information, please visit www.legrand.us.

www.ieci.org | January/February 2015 | Insights Magazine

CODE CORNER

A NOTE OF CONCERN BY DAVID SCHREMBECK

s a low-voltage contractor, I have seen a steady progression of data communications. New products in wireless access points, LED displays, and voice over internet protocols (VOIP) has led to new standards, including power over Ethernet (POE), POE+, and POE++. Each of these standards represents an increase in power to the device. This has led to larger and more power-hungry devices. I recently attended a seminar that described devices that would be powered over CAT5E, 6, and 6A cable up to 100 watts and 1 Amp. Discussions of heat build-up led to concerns of increased attenuation. It was stated that cables in bundles of 100 or more would lead to heat issues.

My specific concern is the following: Article 800 is considered a “stand alone” section. We are exempt from certain requirements that are mandated elsewhere in the code.

More and more jurisdictions are separating low-voltage licensing from electrical licensing yet installers such as myself continue to become involved with other NEC requirements outside of 770 and 800.

Industry representatives state heat and attenuation is an issue.

I strongly recommend increased training of the AHJs regarding these matters.

I am not aware of any CAT5E, 6, or 6A cable that lists a specific class of power as described in Article 725.

Past history shows a reactive attitude regarding code. It takes a horrible fire or loss of life to get changes. The matter I have discussed is heading in that direction.

We are seeing increased installations that use CATEGORY cable to run LED displays and lights yet no requirements to list the power capabilities as described in 725. My experience shows AHJs (authorities having jurisdiction) typically are not well informed on code matters regarding my industry. More often than not, they want to see good craftsmanship and that no cables are thrown across the ceiling grid.

Insights Magazine | January/February 2015 | www.ieci.org

David Schrembeck is the owner of DBS Communications in Brook Park, Ohio. He has a State of Ohio Electrical Contractors’ License, a low voltage Journeyman’s rating from the state of Ohio, and BICSI certifications as RCDD, Technician, and Trainer. He has previously served on the board and as president of the Northern Ohio ECA chapter and on the IEC National Education Committee.

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www.ieci.org | January/February 2015 | Insights Magazine

SAFETY CORNER

Your 2015 New Year Safety Resolution By Thomas Domitrovich, P.E.

he new year is a great time to secure you or your organization’s position in safety with a thorough review of your electrical safety work practices. Use the New Year as your trigger to prompt safety meetings and create dialog to understand your successes and failures and chart your safety course for the new year. The best way to start the New Year is with a leg up on safety. So while you are making commitments to do all sorts of things that we’ll all probably forget about come February, make your safety start be the one New Year resolution that not only lasts all year long but saves lives. My suggestion is to take the opportunity of the change into 2015 as a time to run through a simple six-point checklist, have safety meetings to get everyone’s head in the game, and set the course for your organization for the year ahead.

THE SIX-POINT NEW YEAR SAFETY CHECKLIST Everyone plays a role in safety and so your safety effort, if it hasn’t in the past, should include all employees including the head of the organization. No one should be left out. Your organization includes the CEO, the safety committee, management, and all other employees. Far too often these efforts are left to a select few who

carry the flag for the entire team. We all have to carry our flags because safety begins with each and every of us. The following six points are simply meant to ignite your thought process. These talking points should be those to build from as you create dialog with your team. Your direction/action will not be the same as others; it may be unique to your organization because your organization may be unique. The implementation plan should be written down for years to come and each year reviewed. This gets more and more important as the size of the organization increases as there are more individuals to communicate with and track.

far back as you have records. If you have no records, this is your year to begin. Reviewing performance data as a team should help identify concerns and issues that need to be addressed. Take this time to set goals and consider the IEC-CNA Safety Committee Safety Award program as a goal for your organization at the next IEC National convention. Key statistics like total hours worked, number of injuries, number of cases with days away from work, and other recordable data points are just a few that should be collected over time. Some organizations elect to record “near misses” as a way to identify areas where improvements can be made.

The following suggested points are in a specific order as they build on each other. Again, we are talking high-level thoughtprovoking drivers, not specific point-bypoint items that address details. This list should prompt you and your team to dig deeper in one or more meetings. Because your team should already be doing the right things from a safety perspective, the following should be able to get the entire team moving rather quickly.

A good start is to reference OSHA form 300, “OSHA Forms for Recording Work-Related Injuries and Illnesses,” a free download from OSHA’s website at www.osha.gov/recordkeeping/RKforms. html. This document provides guidance on what data to track and includes:

ANNUAL PERFORMANCE REVIEW

• Total number of other recordable cases

This is your report card that shows how well your plan worked last year and as

Insights Magazine | January/February 2015 | www.ieci.org

• Total number of deaths • Total number of cases with days away from work • Total number of cases with job transfer or restriction • Total number of days away from work • Total number of days of job transfer or restriction • Number of injuries, skin disorders, respiratory conditions, poisonings, hearing loss, and all other illnesses

This document provides even more guidance and is a key input to the IEC-CNA Safety Award program. But don’t stop there. You will also need to get beyond the numbers to identify the areas of concern and identify improvements that can be made. Recording numbers for the sake of a report is not a good way to enter into this effort. Understand the details around your recorded safety issues. Understand why they occurred and show how those events change how you do business. Near-miss data and additional background around each of these events can also be very critical to your success. Many organizations are faced with a record of no accidents, no time off, no deaths, and even more apparent good results. A deeper dive into the near-miss category may reveal a different story. Participation is important as accurate information is critical to your success. When a near miss occurs and it is reported, all of your employees should feel no retribution and secure knowing that their data point can increase safety. Your safety performance data relies on everyone. If events are not reported or are reported incorrectly and inaccurately, your safety performance reports will not be accurate or complete. Then too, if all employees are completing the forms and submitting corrective action reports correctly and accurately, and upper management doesn’t act on

the data, the safety machine breaks down yet again. Safety performance reviews should drive action and your budgets must be supportive. Your data should help you budget accordingly. Some organizations look at safety as a profit center. The data collected helps drive this home because every event or non-event costs or saves the organization money. Reducing accidents, down time, loss of work time, and other areas of incurred expenses because of accidents goes straight to the bottom line.

EQUIPMENT CHECK An effective equipment check includes a wide range of equipment including vehicles your drive down to the screwdriver or side cutters in each person’s tool bag. Your teams should be looking for wear and tear and any maintenance that needs to be performed. When you find safety equipment that needs replaced, get it out of use and replaced as soon as possible. The responsibilities don’t stop when the message of checking their tools and equipment goes out to everyone. It’s the responsibility of management to ensure the funding is in place to replace the failed or failing equipment. The equipment check activities can help to define your future budgets as

some equipment can be designated for replacement in the coming years. This information is critical for your budgeting exercises. If you don’t have a budget for safety, you don’t have a safety plan.

CODE/REGULATION UPDATE Codes and regulations change every now and then and you need to stay on top of them. This applies to more than just the National Electrical Code (NEC) and other similar documents. This applies to OSHA and other regulations that may be mandated for your business as well. Ensure you are referencing the latest version of the documents used in your business operations. Budgets may be impacted by new regulations as well. Unaddressed, these changes can quickly suck the finances from your safety plans. It’s important to not only know what current regulations and codes are in place, you need to know what is coming down the road as you can anticipate changes in future budgets. But you don’t have to wait for code changes, you can begin any time working to increase safety. And as always, think out of the box. As an example, the Fire CONTINUED ON PAGE 40 >

www.ieci.org | January/February 2015 | Insights Magazine

SAFETY CORNER < CONTINUED FROM PAGE 39

Protection Research Foundation recently released a report, “Data Assessment for Electrical Surge Protection Devices,” which revealed some information and statistics that should cause anyone to raise an eyebrow. One interesting fact is that surges have damaged safetyrelated appliances and products including smoke detectors, CO2 detectors, fire alarm systems, security systems, GFCIs, emergency lighting, emergency generators, fire pumps, elevators, escalators, and more. This report revealed that 48 percent of the respondents to a questionnaire indicated that their facility had experienced unexplained process interruptions. Process interruptions, depending upon the nature of the facility, could be dangerous in themselves. In addition, more than a third of the respondents reported occurrences of locked up computers or industrial process systems as well. Damage to safetyrelated equipment is a possibility and interruption to processes may indirectly lead to safety concerns as well. Leverage your knowledge of reports like these in your business to not only help your facility but your customer facilities as well. Knowledge is your strength but it is what you do with it that counts. This report from the Fire Protection Research Foundation is available online at www.nfpa.org/~/media/Files/ Research/Research%20Foundation/ Research%20Foundation%20reports/ Electrical/ssmentforElectricalSurge ProtectionDevices.pdf

SAFETY PLAN UPDATE Review your safety plan every year with your team. The data recorded above may influence changes to your plan. Make the appropriate changes. You’ll worry about communicating and training on these changes as one of the other bullet points below. Your budget may change as well. Equipment checks, statistics reviews, and new codes and regulations may influence changes in your safety plan. Take this annual opportunity to continue the improvement of this important

document. Your entire team should have an opportunity to suggest changes to your safety plan. Those individuals who are implementing the plan and performing work on a daily basis are probably the best people in your group to help improve this document. They see what happens on a daily basis and, if encouraged correctly, could add valuable information that will help improve the plan.

TRAINING By this step in the checklist, you will have a lot of information that is important for your training program. You may have uncovered various areas of concern and quite possibly implemented improvements that will have to be communicated through your training programs. Ensure you include your performance data, equipment check information, and any codes/regulations that your people should be familiar with. This information helps reinforce your level of commitment to the safety program at all levels in the organization. Your discussions around training should go well beyond internal training; it needs to include your “qualified individuals” and the necessary training they need to keep them up to date on their specific training needs. This is a time to identify the IEC meetings that are available and can be made available to meet your specific training needs. CEU credits will need to be obtained for those that hold licenses in your organization. This too will need to be funded. Everyone has their role to play and the management responsibility is to ensure the time and the finances are available to ensure your people are adequately educated. There are many opportunities for external help in this area, all you need to do is identify the need to seek this help out, schedule it and ensure it is funded.

COMMUNICATIONS Everyone in your organization should be involved in your annual safety review and be made aware of the progress you are making. All of the points above will

Insights Magazine | January/February 2015 | www.ieci.org

need to be communicated throughout the entire year. Updates to the safety plan, your annual safety performance, equipment replacement plans, and activities are all fodder for communication plans. A good communication plan shows the employees the level of commitment the organization has to safety. Sharing your statistics reminds everyone of the commitment and re-enforces your implemented safety procedures. Share with them information on the organization’s investment in safety; this shows you have skin the game as well and are committed to safety. The above list is meant to get your head in the game, and get you to start thinking about those critical safety aspects that need to occur on an annual basis, if not on a monthly basis. Safety should be an ongoing process. If the New Year is not your trigger, maybe it’s when you turn the clocks back or when your fiscal year ends. It could be a birthday, anniversary, or simply a date that everyone has in their calendar and is your declared day of safety. Whatever your trigger, make sure you get your head in the game and fight for safety. As always, keep safety at the top of your list and ensure you and those around you live to see another day. Thomas Domitrovich, P.E., is a National Application Engineer with IEC Platinum Partner Eaton Corporation in Pittsburgh, Pennsylvania. He has more than 20 years of experience as an Electrical Engineer and is a LEED Accredited Professional. Domitrovich is active in various trade organizations on various levels with IEC, International Association of Electrical Inspectors, Institute of Electrical and Electronic Engineers (IEEE), National Electrical Manufacturer’s Association (NEMA), and the National Fire Protection Association (NFPA). He is involved with and chairs various committees for NEMA and IEEE and is an alternate member on NFPA 73. He is very active in the stateby-state adoption process of NFPA 70, working closely with review committees and other key organizations.

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When MoboLectric manager Phil Trammel viewed an In-cab Behavior training webinar through CNA, he learned that using a cellphone while operating any motor vehicle increased the risk of a crash by 590%. Taking this lesson to heart, Phil equipped his entire fleet with hands-free devices, and initiated an annual safety competition across his entire staff. Now MoboLectric is filing fewer claims than ever before, and Phil’s enjoying a handsome bonus for worker safety and performance.

When you’re looking for risk control programs that keep contractors dialed in to relevant industry trends … ® we can show you more. To learn how CNA’s electrical contractors program can help your business grow more profitably, contact your independent agent or visit www.cna.com/iec.

The examples provided in this material are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved.