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Soften your senses, ways to become a better speaker, listener and follower.

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Learn more about United Service Technologies at USTService.com.

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All right, welcome everyone.

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We're hanging out with Roger Smelcer.

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Roger, how are you today?

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I'm doing well.

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How are you?

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I am fantastic.

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Roger, we had a conversation just a few weeks ago about the many different career paths

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within the HVACR industry.

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And you serve a very unique portion of the industry.

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And it happens to be one that I'm very comfortable, very familiar with, one that I spend a lot

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of time in.

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Now, when we start talking to our educators and we start talking to our students about

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career paths, once they get out of the program, a lot of them anticipate that they're going

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to end up in a residential or like commercial HVAC situation, right?

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They don't always get introduced to all of the different options.

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So if you are unfamiliar with HVACCareerMap.org, it's a collaboration of different community

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colleges within California.

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It is a really cool resource to help show some of the different paths that we have within

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our industry.

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So let's say we come out of school and maybe we think, oh, we were just going to end up

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as a residential technician and we weren't introduced to all of the options.

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Well, when we use tools like this to kind of take a look at those different resources,

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we can see that there are a variety of different things that we can do.

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We can progress out of those entry level jobs into like installers, we can move into warehousing

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jobs, but we can also get into the commercial sector.

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So let's just say we have an interest in moving over into the commercial environment.

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We want to take our HVAC and move it into say refrigeration and some, let's just say

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some kitchen style equipment opportunities.

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Well, a lot of people don't realize that we have apprenticeship programs that can lead

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us into these directions.

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And where you specialize is in the cooking equipment service technician realm.

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Yeah.

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And that was me.

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A lot of mom and pop grocery stores and restaurants and large grocery chain grocery stores.

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I did a lot of different food service equipment and it wasn't just refrigeration because as

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a refrigeration guy, yeah, you're there working on something, but I've talked about this many

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times before.

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My first encounter with looking at other kitchen equipment was I had a pizza oven at one of

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our shops that went down.

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I was there looking at an ice machine and he says, hey, Cliff, you think you could take

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a look at this pizza oven?

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I'm like, pizza oven?

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He said, yeah, that's a heating appliance, isn't it?

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And I went, well, yeah, it is a heating appliance.

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So we have a lot of options in our industry.

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So I wanted to spend some time with you talking about the program that you guys have built

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and the way that we groom our youth, because the way that we recruit today may not look

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similar to the way we recruited five years ago, 10 years ago.

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And I think you're the master of recruitment and retention.

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I don't know if I'm the master, but we started about seven years ago really trying to attract

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young people into our business.

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And we looked at where were millennials and Gen Z looking for work and would they be interested

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in this type of work?

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Yeah.

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And I think we kind of struck gold a little bit with some prior auto mechanics and things

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that had the willingness to get a little dirty and good mechanical aptitude.

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And we thought we could train these people.

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Sometimes they got into it and it was working outside in a hot environment.

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I lived in California and now live in Arizona.

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And I can't imagine working in the Bay on a 110 degree day.

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Absolutely.

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And sometimes in grocery stores and even sometimes in the cold rooms.

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And so I thought, this might be appealing to this group of people.

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Of course, we've been able to attract them from all over, but I think the big key to

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attracting them for us has just been having the kind of culture where they refer each

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other.

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So they're trying to help their friends.

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We just had just in these last couple of weeks, one young guy in his mid-twenties just recommend

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another guy in his mid-twenties to come in and help us.

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And that's what we're trying to foster.

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That's what we'd like to see.

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I've mentioned many times in our industry to different groups that the average age of

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our technician is around 27.

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Yes.

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And that's very young in our industry.

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And it's just a testament to really having kind of a defined career path, as you mentioned

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before.

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Sometimes people come in from residential appliance and they have into our business

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as well.

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And that's a great transition.

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They can apprentice with our guys.

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They typically will pick up commercial food equipment very easy if they're coming from

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that environment.

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And it's been really strong way to bring them in.

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Well, let's talk about that apprenticeship because this is very much about what does

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successful recruitment look like, whether I'm a school and I'm recruiting technicians

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to come into the trade and I'm trying to inform them about all of the different amazing options

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once they leave the classroom or I'm a contractor that is trying to build up my clientele.

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That's the biggest issue we see right now in the contractor side is retention and recruitment.

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But you've been very successful at that.

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And if we look at the generation, so I just did a class not too long ago on the basically

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six different generations of learners that we work with in society.

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When we look at particularly our Gen Z and our millennials, they have some slightly different,

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I wouldn't say concerns, but desires for success in their career, especially with Gen Z.

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So let's talk about the culture that you're embedding and promoting that culture because

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I think that is the driving force that is making this such a successful recruitment strategy.

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Yeah.

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Well, we like to call it our resume building culture of achievement.

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Okay.

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Yeah.

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But really it's just a resume building culture.

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We're looking to build value in each person, not only to our company, but to the world

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at large.

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Okay.

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And the way we do that is usually it starts with the conversation when we're first meeting

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the person and bringing them into the organization and defining what their career path would

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look like in our organization and what we would be adding to their resume at each stage

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through.

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So for example, they might come in and we might start them on simple planned maintenance.

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And as they're picking that up, they're adding this planned maintenance capability to their

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resume.

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So they move to installations and more advanced installations and then onto commissioning

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and other things like that as they progress through their career.

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And that kind of career arc can take anywhere from weeks to months, depending on their ability

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and their aptitude.

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We're really looking for the same things most companies are looking for.

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Sure.

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We want to ensure the capability to do the job and if you don't know how to do something,

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that you're a quick learner and then just being a team player, working well with others,

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having that good chemistry.

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Sure.

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Absolutely.

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So I know personally when I see resumes of my generation, so I'm a Gen Xer, I see resumes

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of fellow coworkers and I have read resumes and looked at the person and went, I know

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you're more capable than this.

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I think as a generation, we weren't groomed very well for building ourselves, especially

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like within our resume and how we reflect to others.

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But one of the characteristics, particularly of Gen Z is the reflection of their development.

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And that's what I see in your program.

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And I think many of us, if we're building our recruitment and our retention based on

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old strategies, they may not apply to our current generations.

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So do you feel that as a driving force from these young folk coming in that they want

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to be recognized for their accomplishments?

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It is.

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It's a driving force.

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I think there's some confusion.

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You know, a lot of people would say Gen Z or millennials need so much more feedback

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than maybe Gen X or baby boomers.

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Right.

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It's not necessarily that they need more.

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They are looking for progress, right?

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They're wanting to know how is this helping me long-term?

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Yeah, exactly.

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And, you know, my generation, we just put our heads down and ground it out.

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Not really thinking about what is this.

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You know, I like this generation.

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You know, the thing I love about them the most is they're very experience oriented,

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right?

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They value experience more than things.

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That's why they're all living the van life and moving around.

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And we've kind of embraced that if you want to have a great experience, that's what we're

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trying to create with this resume building culture.

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Okay.

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So that you can see when a resume building opportunity comes up, like we just, a good

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example is we just moved to a new field service management software.

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Okay.

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Well, this software is used in 65% of the industry.

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It's going to be a really nice line item on every resume in our business.

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To show that they have adapted through software.

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Right.

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And that's not typically anything I would have had on my resume unless it was super

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significant.

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Like I went back to school to learn something.

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Maybe that's what I put on my resume.

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Well, we've used mixed reality technology.

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We use an AI product.

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All that can be added to their resume.

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And then we have quarterly goals that our service managers are working with the team,

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their teams on, and each goal in order for it to qualify has to read like a line item

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on a resume.

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Really?

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So a good example of that would be, you know, I'm going to increase my mean time to fix

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or the time it takes me to fix a fry or not eating by 7%.

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That might be the goal this quarter.

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Well, that would be great on a resume.

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Yeah.

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Because I would be impressed.

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That you know what your mean time to fix is and that you're working to improve it.

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Exactly.

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So explaining to them why it would be important on the resume is important as well.

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You know, showing them what it means to me as a person that's hiring young people.

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Yeah.

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And giving them the confidence that they actually are building their resume.

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Yeah, absolutely.

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Okay.

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So when you're talking about that, has it been an adaptation of your company and of

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your software to track these things and actually give some data to be analyzed?

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How does that function?

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Yeah, a little bit.

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So we do it kind of a one-on-one more personal way than that.

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So of course we rely on data for a lot of things in our business.

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But with people, we rely a lot more on the one-on-one conversation.

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So when we do those quarterly goals, we're meeting with them in person on those.

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And we're talking them through.

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And a lot of times we're saying, well, that doesn't really read like a line item on your

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resume.

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Okay.

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What if we use the same goal, but we set it like this?

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And giving them those prompts to understand, you know, what it's really going to look like

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on a resume.

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Yeah.

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I think that's good.

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And our data is showing that we're able to keep these people and get them to refer others.

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That's the most important piece to us is how many referrals are we getting?

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And is that trend moving upward or is it flat?

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Exactly.

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I mean, you take my generation, you build a resume preparing for the next stage in your

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life.

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So you have an amazing retention rate.

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So what do you think is that motivator?

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So you're building them up personally, you're building their resume, but they're not taking

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the resume and moving on to the next contractor.

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Well, it seems counterintuitive, doesn't it?

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It kind of does.

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That's why I wanted us to have this conversation.

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And when I have this conversation with other business owners, they're like, why would I

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want to build their resume?

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They'll go work somewhere else.

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Exactly.

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It's a big fear for a contractor.

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Well, the communication I'm having with our employees is if your employer is not building

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your resume, you shouldn't be there.

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Right?

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So we are continuously building it and we're showing you that we are.

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Are you confident that's going to happen wherever you go?

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And in every case, the answer is no, I'm not confident.

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And so I think we get a lot more retention that way.

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And then we've had people when they leave, we don't really have a lot of the issues I

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think many companies have with people going to work for other companies or competitors.

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We're pretty friendly competitors in the market.

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We see it more as a race than a war.

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And sometimes we haven't had a position and technicians wanted to move up in that area

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and we just didn't have it available and they wanted to go do something else.

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Well, you know, we're supportive.

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You know, if you can't do it here, we're going to help you get to the next level there.

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Many of those people have come back over time.

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Not because it wasn't okay at the other company, but because they knew now that they got a

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little experience in that we'd take their resume a little bit further.

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We're building their personal and professional resume and portfolio at the same time.

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So there's buy in.

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So a lot of people, if you're not aware, I'm very much about branding and keeping a consistent

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feel within a brand.

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And part of that is Gen Z in particular are very much brand oriented.

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So if you're building a brand and you're building an individual as part of that brand, you build,

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you weave a connection between the individual and the brand.

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And that's why this philosophy is so much different than ones that we have seen in the

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past.

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Even for myself, I know that there were opportunities in my career development that were hindered

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because people didn't want me to leave.

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And so I was at times plateaued and would have to find ways for continued personal development.

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So you're promoting the individual to self-reflect on themselves actually.

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Yeah.

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I mean, a little bit.

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People don't think about the resume right until they need it.

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Yeah, exactly.

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So if you're talking about it a lot and you're making them aware that this is the goal, this

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is what we're trying to do.

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Because we know if we build their resumes, they'll be more powerful for us, right?

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And that's really occurred.

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So we have a lot of talented technicians and you're right.

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They want to build their brand.

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Many of our technicians post what they do on social media.

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Of course, they're very conscious about where they are and in what customer and not pushing

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brands out there and things that our customers might object to.

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But the things that they can show are usually helps for other technicians because they've

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caught the bug.

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They're helping other technicians build their resumes as well.

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We're talking about a generation that thrives on success and building up others.

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That is a beauty of this generation.

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Very different than my own generation where you built yourself up and you got past others.

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That was a very common feel in my generation.

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Well, now we have a generation that's very different.

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Yeah.

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Well, if you look at how the generations compare, you know, I look at millennials and Gen Z

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as already networked.

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Right.

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They're already networked.

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They're already connected together.

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Many times technician in my age group, I'm 57 and I'm a Gen Xer, but many people in my

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age group, when they tend to find a new or more efficient way to fix something, you know,

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they'll kind of stick that in their pocket and hold it here as part of their value.

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Right.

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Yeah.

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And that's not true with millennials and Gen Z.

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As soon as they learn something, they're posting on Snapchat and Facebook and well, probably

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not Facebook, but Instagram or whatever they're using.

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They're not standard us old fogies.

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And they're networked together, which means they're learning faster.

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From each other.

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We use this little free app called Marco Polo, you know, and our more senior technicians

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post tips and tricks and things for other technicians on there.

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And they look at that and it's kind of internal.

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It's not really shared out with the world.

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Okay.

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But we've kind of in the past two years, we've really been transitioning from that internal

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to kind of getting it out there externally.

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The service industry as a whole is just a really great industry to be in, you know,

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and at all levels.

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I don't care whether you're working on cars or industrial food processing equipment.

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I've had some time in that as well.

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It's just amazing to see all the opportunity out there.

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You know, it's surprising to me because I've been doing it since I was 19, right?

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That people can't see all the opportunity to me.

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It's just all low hanging fruit.

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It's hard to fathom, isn't it?

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Yeah.

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And I hope today I'm encouraging somebody to look a little bit deeper into the service

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industry and find a spot for yourself and come grow, you know, in one of these service

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industries and even ours is a great one.

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Yeah.

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It's been a wonderful voyage for me.

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I do believe that I was able to hone my communication skills being in service.

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I truly do.

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You know, that's where you learn how to speak to people professionally and you take the

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good and you take the bad because not every job is perfect.

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So we learn a lot in the service industry.

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I really am digging the entire, let's relook at our business plan and build a culture first,

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build the culture they will come.

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Yep.

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I think, you know, we're working on a new program to really try to improve our profitability.

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You know, all companies are trying to do that, but we're trying to get as many people involved

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helping us because this is another resume building opportunity.

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Sure.

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Participating in this initiative to just build a more profitable company.

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I would love to see a resume of someone that's been at your company for a year or two.

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It would probably change a person's perspective on writing their own resume.

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Yeah, I hope so.

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I hope they're taking the learning that they're taking in here and really thinking about what

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that means to their future.

332
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Exactly.

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All right.

334
00:20:26,840 --> 00:20:33,760
Well, Roger, wow, that's a lot of wonderful information on building a culture, recruiting

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and retaining really based on personal and professional development within the culture

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of a company.

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And I see this as being a growing trend.

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We've already seen the success of it.

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I doubt that there's any contractors out here that say they have a surplus of quality technicians

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and you've achieved that.

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So grateful to have you here, grateful for the education and man, look forward to some

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further conversations down the road.

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All right.

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00:21:02,400 --> 00:21:03,400
Fantastic.

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I'm happy to be in with you.

