The path to success in the skilled trades is littered with countless roadblocks, including a lack of qualified workers, the rising cost of goods and services, unreasonable (and often unachievable) customer expectations and more. While each obstacle is problematic, perhaps the fiercest profitability killer lies silently within your organization. Luckily, this foe can be overcome with careful attention and discipline. 

The villain I’m referencing is poor communication.

Cost of Poor Communication

Poor communication affects all aspects of a company’s operations. Not clearly conveying your intentions decreases productivity, lowers morale, increases stress, leads to higher employee turnover, to name a few. 

Ultimately, poor communication leads to poor profit. A communication breakdown in the workplace can be costly, resulting in errors, inefficiency, delays, lost business or damage to your company’s reputation.

According to a recent State of Business Communication report, poor communication accounts for a loss of almost eight hours per employee per week, and it may cost a company more than 18% of its total salaries.

For smaller companies – those with 100 employees or less – poor communication costs each company an average of $420,000 per year. The cost is even more explicit in larger companies. In his “The Cost of Poor Communication” study, David Grossman estimates that companies staffing 100,000 employees or more report an average loss of $62.4 million annually.

Can You Hear Me Now?

So, how do you know if your current communication methods are adequate?

Grading your communication can be difficult, especially when everyone subscribes to the mantra, “This is how we’ve always done things.”

But it can be done. Evidence of poor communication includes employees who seem confused about tasks, priorities or expectations; missed deadlines; disengaged or unmotivated employees; inconsistent messaging; and frequent corrections. If you notice these telltale signs, it may be time to refocus your communication strategy.

While it may be difficult to pinpoint the specific cause of poor communication, a lack of clarity may be the first place to look for. If the messaging is unclear due to information overload or implicit wording, misunderstandings can occur, costing your operation time and money and placing your reputation at risk.

Other factors include the following: inactive listening, where individuals hear words, but do not fully process or understand the message communicated; poorly designed processes; operational confusion; and a lack of feedback.

If your organization overcomes all these challenges yet continuously struggles with its communication, your problem could be generational. Often, individuals from different generations struggle to connect. Employees with more miles on their tires may prefer to talk over the phone, while younger employees may rely on text messaging. A well-established company-wide communication protocol can help alleviate these concerns.

Internal Communication

When addressing a communication breakdown, the first place to look is in the mirror.

Internal communication begins with your job descriptions. Are the expectations of each position clearly defined? Is there a hierarchy determining who reports to whom and how each position affects another? If not, this is a great place to start. Many employees show up, do what they’re told, and head home, never grasping the impact of their role or how their actions affect their peers. If this is how your business operates, you’re leaving money on the table.

Ensure your culture is connected rather than fragmented. Intertwine your sales, service, and installation departments so that they synergistically comprehend one another’s importance. Offering transparency across departments helps you avoid organizational silos within the company.

When preparing jobs, ensure your team sets up each service call internally before they begin communicating externally. Ensure each technician understands the customer’s pain point(s), that the truck has the appropriate equipment stocked, and that proper protocols are in place upon arrival. From a tactical standpoint, establishing a consistent, repeatable sales and installation/service process, preferably in writing, will help eliminate inefficiencies and increase profitability.

Lead By Example

As the company’s leader, everyone is going to emulate your actions. If you struggle to communicate, your employees likely will as well. According to Simon and Simon, 43% of onsite employees lose trust in leadership due to poor communication. Thus, it’s time to sharpen your sword if your communication skills are lacking. You must lead by example if your organization wants to change its communication processes.

Start by identifying your preferred communication method and establishing the format of internal and external communications. Make sure those who work closest to you understand and respect your wishes.

Then, do the same with your department heads. Some prefer face-to-face conversations, while others are intimidated by this communication style. Make sure you’re communicating in their language. Once you’ve deciphered how to converse with your team, conduct assessments to determine how your leaders should speak with their staff.

In conclusion, if you jumped on a plane, visited 20 companies across the country and asked them to identify the top three things they’d like to optimize within their businesses, communication would be on every list.

If your communication breaks down, so does your profit pipeline. And much like any organizational deficiency, it’s your leadership team’s responsibility to fix it. Start by gathering input from your team and use that data to identify any existing issues. Once you identify a gap, start building a bridge to mend it as quickly as possible.

Effective communication is the cornerstone of any successful organization. If you’re passionate about leadership and genuinely achieving success, you must be passionate about communication. Transparent, honest communication builds credibility, trust, and, of course, profit. By prioritizing clear and effective communication, you can transform your organization’s culture and set the stage for sustained skilled trades success. 

Jeff Plant is a lead head coach and trainer for Business Development Resources, a business training and coaching provider to HVAC contractors and distributors. For over the past decade, he has effectively been a business coach for his clients to become more successful through team building, efficient process changes, procedure implementation, financial tracking and implementing accountability through key performance metrics necessary for a successful business. Visit www.bdrco.com.