Amidst weather challenges and a shorter season, Adam Sand runs a very successful roofing company in Alberta, Canada. Intrigued by posts Adam had written on subcontractors and how they are viewed, used, and sometimes abused, Andy Near knew a frank discussion on the subject was overdue. So here it is on this episode of the Rocket Roof Show.
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Let’s be honest… is it ethical to sell a roof claiming to be the expert and “throwing the guy on Craig’s List under the bus” as illegitimate, but then turn around and subcontract that same roofer for the job after you made 20% profit just for making that sale?
This pertinent issue is not often considered an abuse or infringement of the rights of these sub-contractors, but perhaps it should be. When businesses want to reduce liability, they sometimes layer insurances. This leaves out these subcontractors who work to support the operations of the business.
This racket is going away as the power is moving toward the laborer. Socialist policies may be eliminating bad bosses and bad working conditions, but if someone is being given government funds to meet their basic needs, employees can simply choose to not work at all.
The option to stay home and still have your needs met poses an interesting dynamic. Workers may become lazy and unmotivated while bosses are pushed to become better. A good business owner takes genuine interest in the wellbeing of their employees, they consider their capabilities and provide opportunities. This is perhaps a self-correcting mechanism which keeps the business owners in check for better leadership, and employees who take advantage of the opportunities can prosper well.
Another prevalent issue is that subcontractors who mainly focus on grunt work aren’t taught to be great leaders themselves. Workers under poor leadership are often uninspired, unmotivated, and therefore may not care about the quality of their work as much. In more extreme situations, workers might leave the job or leave the industry altogether because they don’t want to turn into “that” guy – another bad boss.
The roofing industry can produce a billion-dollar company just by plain math. Being in 10 markets with 5,500 customers per market and $18,000 in revenue for each roof serviced – this simply adds up to a billion-dollar company. This is not unattainable by any means, but you have to watch out for the tech players who come in and disrupt complete industries (like Uber did with the cab industry) pushing all players to do better and provide better value.
Clearly illegal immigration, socialist policies and government handouts are greatly affecting the labor force. Lack of leadership skills are not attracting people to work hard or come under tutelage, and income handed out by governments is enough to survive on damaging incentive. Unions make it so you can’t easily hire and fire as needed. Possibly the only way forward is to make sure you take care of and consider the aspirations of your employees. Show them a broader success pathway by keeping their personal and professional goals in mind.
It is no sin to use subcontractors occasionally and appropriately. If you need to subcontract part of a project, then be open and honest. A good leader wants regular employees, while a weak leader often wants only subs, Adam states. And even though you may feel that more work goes into developing a company and developing yourself as a leader, the only way to sustain in the industry is taking good care of your good workers.