Since between 60% and 70% of a lumberyard’s total operating expenses are made up of personnel-related expenses, too many people on the payroll who are failing to achieve high standards almost always leads to a lackluster bottom line.
Try this: Print out a list of your company’s employees. Now look at each name on the list and ask yourself this question about each name: If this person were to walk into my office and resign, would I be elated or despondent? If your answer is something like, “If this person were to quit, it would solve about 90% of my problems…” then it’s highly likely you would be better off if you replaced that employee.
Not all employee turnover is bad. Some is good for both parties. I believe it’s time for each owner and manager in our industry to get serious about his or her personnel and begin the process of building a team that has both the will and the talent to win the battle for business.