Published January 20th 2023 at 12:00am
Scaling your construction business can be a challenge. One of the biggest obstacles you'll face is finding the right people to help you expand. It can be tempting to look for already licensed contractors to take on more work, but there are advantages to hiring from within and sponsoring or supporting employees who want to get their licenses.
New Hire or Promote from Within? That is the Question
And, there is no simple, one-size-fits-all answer. The construction industry is complex, and there are many factors to consider when making the decision to hire from within or go outside the company.
Hiring Licensed Contractors
There are numerous advantages to hiring licensed contractors, such as:
1) First, they come with a wealth of experience and knowledge. This can be helpful in taking on more complex projects or jobs in a new area.
2) Second, they're usually already familiar with the necessary paperwork and processes. This can save you time and hassle in getting them up to speed.
3) Third, they often have a network of contacts in the industry. This can be helpful in expanding your business to new areas or finding new subcontractors or suppliers.
4) Finally, hiring licensed contractors can give you the opportunity to tap into a new pool of talent. If you're only considering candidates from within your company, you may be missing out on qualified people who could help you take your business to the next level.
Promoting from Within
And, while there are many advantages to hiring licensed contractors, there are also several advantages to promoting from within, such as:
1) First, it's important to consider the cultural fit. When you promote from within, you already have a good sense of the person's values and how they align with the company's culture. This can be a make-or-break factor in whether or not someone is successful in their new role.
2) Second, there's already a level of trust established. This can be helpful in delegating tasks and responsibilities and trusting that the work will get done.
3) Third, promoting from within often costs less than hiring someone new. You don't have to worry about advertising and recruiting expenses, and there's usually a shorter training period because the person is already familiar with the company.
4) Finally, promoting from within can be a great way to retain top talent. If you have someone who is already doing a great job and has the potential to do even more, offering them the opportunity to grow within the company can be a powerful motivator to stay.
Upskilling Current Employees to Get Their Licenses
One of the best ways to promote from within is to upskill your current employees so they can get their licenses. There are many advantages to this approach, such as:
1) It shows you're invested in your employees and their development. This can help build trust and loyalty.
2) It's often cheaper than hiring someone new. You'll save on advertising and recruiting expenses, and there will be a shorter training period because the person is already familiar with the company.
3) It can help you retain top talent. If you have someone who is already doing a great job and has the potential to do even more, offering them the opportunity to grow within the company can be a powerful motivator to stay.
4) It allows you to build a team of licensed contractors who are familiar with your company's culture and values. This can be helpful in ensuring that everyone is on the same page and working towards the same goal.
5) Finally, it can be a great way to scale your business. If you have a construction company and you're looking to expand your services or geographic area, having a team of licensed contractors can be a big help.
Making the Decision
There's no easy answer when it comes to deciding whether to hire from within or go outside the company to find licensed contractors. The best approach is to weigh the pros and cons of each option and make a decision based on what's best for your company. If you're not sure where to start, consider talking to a business coach or consultant who can help you assess your needs and make the best decision for your business. If you're ready to set up ways to promote from within and upskill your current workforce - contact us today! We can help you develop the programs you need to take your company to the next level.
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