By Mathias Alvarez
The answer is simple: it affects the heart of the business—the workers. Any poor decision related to mental health will inevitably impact those on-site, working hard, moving rolls of membrane, welding laps for hours, waking up early, and putting in long hours to deliver a great final product.
As business owners, we are always searching for the “unicorn worker”—someone who can manage an entire site independently, who is reliable and technically exceptional. But the real question we must ask ourselves is: can we nurture that unicorn? This isn’t just about money; it’s where mental health comes into play. We may have a few unicorns on our team, but are we supporting them adequately to maximize their potential?
I had a transformative experience during my recent university thesis on maximising profit through mental health. I explored numerous tools to enhance profit while simultaneously improving arrangements for everyone, including fair salaries and benefits. This might sound unconventional to some managers, but it’s real. One of the most effective tools I discovered is a blend of Lean processes that I call “Know Your Number” and “Pick the Right Mindset.”
Know Your Number
The lifecycle of a project involves different stages, and during challenging times, knowing the numbers in every process is crucial for evaluating and reducing waste, making decision-making more manageable. In my view, reducing hours or withholding deserved pay raises are major red flags—these should be last resorts, hopefully never used.
So, how do we know our number? This is where the popular acronym KPI (Key Performance Indicators) comes into play. Keeping KPIs up to date for every aspect of the project will help us determine if we are compensating our workers fairly, quoting projects accurately, need more manpower, or can afford new machinery. A simple equation I found useful for every step on a business KPI is:
(Allowed/Spent)x100%
This can be applied to materials, hours, or any other item of value. For example, if we allowed 120 hours worth $9,600.00 and spent $12,300.00 on manpower hours, the KPI would be 78%. This prompts investigation: why is there a $2,700.00 difference? Is the pricing right? Was the work harder or more difficult than expected? Is the client challenging? What improvements can be made for future quotes for this client or type of roof?
When you can establish a KPI for every item of a project and overheads, you truly know your number. This concept is vast and challenging to explain briefly, but I will delve deeper into this topic in the next publication.
The Right Mindset
Complaining and cursing the trade is always the wrong mindset. If you’re a manager who constantly complains about workers, the environment, suppliers, or clients, it’s time to change your mindset and start small. For instance, if you’re spending more on materials than necessary, how can you manage to achieve a proper KPI in materials to improve future quoting? If workers complain about unfair pay rates, how can you create a KPI for each worker and consider it during future reviews?
We must remember that every decision directly affects our workforce—the heart of our business. When you cut budgets or benefits, everyone will talk about it, wasting precious time and delivering lower quality services because the mental health of everyone has been damaged by poor decisions, lowering our KPIs. Before making a decision that will impact your team’s mental health, ask yourself: do I know every number for every process? Is there any process that needs improvement before reducing workers’ benefits?