Issue link: http://palletcentral.uberflip.com/i/1390499
34 PalletCentral • July-August 2021 palletcentral.com "In the pallet business, at the end of the day, we offer employees transferable skills and a reference when they are ready to move on," he states. The company got comfortable with that fact, instead of making it a point of distress. "We are willing to come along side of them on their journey and help them with it." The L&R Pallet team improved orientation and onboarding, emphasizing company culture. They went deeper into safety training, which resulted in reduction of injuries. "We believe that safety and care go hand and hand," says Ruder. "On the first day, we have our employees sign a safety declaration. They also take it home to their family, who is to write why it is important for the employee to work safely. We try to instill in their mindset, 'you need to go home with all your fingers and toes because people at home care about you.'" Managing on Purpose "We invest in all these expensive machines, trucks, and equipment. I had to ask myself, 'Why am I not investing more in people. People will want to do better when they see that they are the priority," says Ruder. The investment was not just at the shop level, it flowed up into management. Creating all these workforce programs was a huge company investment, and Ruder realized that if the company's managers and supervisors were not on-board, it would be a wasted effort. He brought in business coaches to work with managers to help realize their own potential, and get on board with the vision. "People leave jobs because of managers. We began leadership training to build relationships with our managers so that they could be their best for our employees. We wanted to cultivate a servant-leadership culture all around," says Ruder. "It is like magical glue," says Ruder. "Our management team is now more productive, excited about the process, and more satisfied with their own work. We have not lost a manager since I implemented this." As managers and supervisors were realizing their own goals, they became more effective leaders to everyone in the company. It unified the whole team under one purpose, and equalized overall responsibility. "Before, we approached the company more traditionally, top down. As this evolved, loyalty increased across the board," says Ruder. Employees began to see all the leaders of the company "walk the walk" and trust was established. Leaders began to see employees excelling more. "Trust is important. Having grace go both directions is very beneficial. While we are a good company, we are going to screw up at times, too." The managers appreciated that ownership noticed when they needed help, too. "One day, we gathered in a conference room and white-boarded all the processes, front door to back door. I quickly realized that we needed a firewall between customers and managers. The managers were inspired that we acknowledged the issue, and saw the stress they were under because of it. I implemented changes that protected my team." "My most valuable assets are my people. It doesn't start with money, it starts with the right thing to do. The investment is worth it, and results will slowly come." Pivoting If you are looking for a quick fix, Ruder says this approach is not for you. "Everyone wants the quick turnaround. I tell everyone, this has been the hardest thing I have ever done. It is not a quick fix. It is not cheap. It took 36 months before it started clicking." Rebuilding a company culture takes being a hands-on leader. "No one is going to believe you are for real in 12 months," he says. "And, you can't do it by yourself – you need a team and you need someone focused on it all the time. Culture should be part of your morning meeting and on the radar of leaders all day long. Culture should be measured as much as the rest of the things you measure." "Start with something simple. Start with one thing, keep doing it. Be intentional and consistent. When you find something that it doesn't work, don't do it anymore. Before you know it, five years goes by in a blink." Plans and programs also need to be flexible – you need to pivot when conditions change, Ruder advises. "The last administration closed borders, so it stopped the influx of refugee-employee candidates, so we had to look around at other options." The company shifted its focus to second- chance workers coming out of incarceration or addiction treatment. This created another set of challenges and solutions. If we are going to have turnover, I wanted good turnover where people leave to do bigger things, like entering a trade they love, becoming an electrician, or becoming a police officer. That is worthwhile turnover to have."