Ask any manager in a sawmill or particularly a pallet plant. Their top concern is almost always the same – labor!
A new hire comes in the front door and often leaves by lunch or does not come back after a few days. Why? Well, working in a sawmill or pallet plant is anything but glamorous. Some companies have gone out of the way to do the right things to make working in their companies more attractive. But the truth is that demanding work in a plant that is often hot in the summer months and cold during the winter is tough on even the hardiest person.
The good thing is that pallet and lumber companies can provide consistent work, reliable hours and decent pay for somebody who doesn’t have a college degree or special skills. Pay is rising due to the difficulty finding workers as well as minimum wage law changes throughout the country. But many pallet companies still struggle to find enough workers to fill their shifts.
What is the answer to this dilemma? One solution is to automate your production so that the work is less laborious. Making it more satisfying is a desirable goal, but simply making it less taxing is an approach that many companies are pursuing. Using automation and even robots is a possible solution that is becoming more and more common in today’s economy. Due to the variability of wood, automation can be difficult. But strides are being made to further automate a variety of tasks in pallet manufacturing and repair facilities. I believe you will see a number of ground breaking developments in this regard over the next few years.
In addition to automation and more equipment, many pallet companies have adjusted their hiring practices to target individuals that they may not have otherwise considered. This includes immigrant workers, prisoners on work-release, parolees, special needs individuals, drug addict recovery program participants, etc.
Hiring non-traditional workers brings challenges. But it can also provide a stable workforce and help others who are down on their luck or have trouble finding employment. Over the past 10-20 years, a big part of the U.S. pallet industry workforce has included people who are Hispanic immigrants. The new wrinkle is the growth in the non-Hispanic immigrant workforce.
Whenever you include new languages or cultures, communication can be a challenge. And just because people act like they know what you are talking about, they may not. You should train visually and monitor performance.
The Pallet Enterprise has carried several articles recently that covered the practice of hiring non-traditional labor sources. The August issue of the Pallet Enterprise featured a cover story entitled “Wheeler Mission Producing Pallets to Change Lives.” I read this article with extreme interest and found the challenges in this approach to hiring and developing people to be very inspiring. While rehab for former addicts or “saving souls” may not be the focus of many pallet companies, you can still look to develop programs that care for employees and their families and create an atmosphere that is worker friendly. Any little thing you can do to improve employee morale will help you retain more workers.
Some companies hold employee luncheons or breakfasts. Others offer prizes for workers who meet certain production goals. It is important that any reward program is fair and does not show favoritism. Also, effective programs are based on meeting realistic and consistent goals.
One of the best stories over the last year when it comes to non-traditional labor sources is the incredible success of a program at L&R Pallet in Denver. The owner of the company, James Ruder, turned to an unlikely group of people to solve his labor problem. He hired seven refugees from Burma in the hopes of finding more good workers. Although there were many challenges in integrating Burmese immigrants, the decision has turned out to be an excellent move for the recycler.
Today, the company employs 82 foreign refugees that have stabilized the workforce at L&R Pallet. The first article about this process at L&R appeared in the October 2016 issue. The December issue covered the practical tips that Ruder learned when starting his refugee program. I encourage every reader who has a labor problem and thinks that refugees might offer a solution to read these very insightful articles.
Ruder came to realize that you cannot treat refugees like they were any other employee because they are not. They have different social habits and expectations based on experiences from their mother countries.
To hire refugees, inmates, or any other group of disadvantaged people who are looking for an employment opportunity you will need a unique approach beyond your typical job applicant. You are not likely to be successful if you just try to drop them into your current management model. Using a non-traditional labor force will require some additional expenditures, process accommodations and a lot of hand holding.
In addition, companies need to learn how to attract and retain younger workers. This issue contains an article on Millennials in the workplace. Read more about this topic on page 32.
There is no doubt that the labor force is one of our biggest challenges today facing the industry. It will take unconventional approaches to chart a better future.
