The C word… CULTURE! Why it’s essential for tradies

Ange
Woo, woo. Totally. Andy and I are super proud of this. A lot goes into making this podcast and we are so happy with all the amazing feedback we get from you guys and to see how many of you tune in every single week. So a massive thank you to you, our listeners.

Andy
Yeah, just the other day I was walking through Woolies doing the shopping as you do, and a tradie walks straight in front of me, I’m like, who’s this bloke? He goes, Hey, Andy . I’ve been listening to The Tradie Show podcast and it’s epic, man. I thought, thanks buddy. I really appreciate that. He goes, I’ve learned so much from you two and it’s really made a huge change in my business and

Ange
That’s awesome.

Andy
It was awesome and it was really nice for him to stop me and have a chat.

Ange
How cute that he actually recognized your face.

Andy
Well, that’s Well, yeah. Well, I’ve got a face for radio. So how did he know that?

Ange
So it goes to show that if you listen to our teachings and apply them into your business, you’ll be amazed at what you can achieve.

Andy
Definitely.

Ange
So Crew, if you haven’t already check out all the free resources and the guides at lifestyletradie.com.au/free-resources. Because there’s a stack of great stuff in there.

Andy
Okay. Enough about us. So let’s get cracking on today’s toolbox topic.

Ange
All right, open her up, Andy.

Andy
Okay. This toolbox question says, I’ve heard about workplace culture, but I’m not sure how it works in a small business, or even if it’s worth doing. Can you explain?

Ange
Ooh, great subject. First and foremost, I wanna say, are big fat YES.

Andy
Definitely.

Ange
Developing, implementing, and nurturing a great culture is relevant for every single trade business because having a good culture reduces employee turnover. It makes coming to work fun every single day, and it even makes your customers happier. So it’s critically, critically important. .

Andy
Critically important. I, I just, I’ve just noticed you say critically important things these days, but I’ve also noticed, I say a hundred percent a bit these days. So anyway, before we start, let’s talk about the elephant in the room.

Ange
Right. Like your voice right now about how rusty you sound?

Andy
Well, we’ve been in the Gold Coast with 150 of the best trade businesses in Australia and I’ve been talking for four days. Yes, four days. And I think too, I just like to point out, there were a couple of cleansing ales there as well.

Ange
It was fun, wasn’t it?

Andy
Yeah. I am a bit croaky, so apologies. But have you heard about the Great resignation? There was an article that in just one month, one month, 4.3 million people in the US left their jobs. Everyone from construction to frontline workers. That is huge.

Ange
Yeah, it is. I read an article that shared Microsoft research revealed that 40% of the workplace globally is considering bidding farewell to their employers this year.

Andy
Wow.

Ange
Yeah.

Andy
So what does this mean for us trade business owners? It means it’s a great opportunity to hire some great talent out there, and you’ve only got a look around and everyone is throwing a bucket load of money at tradies at the moment, aren’t they? And there’s just not enough tradies to go around. The supply is so low, but the demand is so high. Yeah. Which means tradies are demanding more and more and more, and they actually are getting this money.

Ange
Right. So there’s actually another great benefit for trade business owners, cuz to me it means there’s a great opportunity to retain your current team. I think it’s really important that all of us actually step up and actively ensure that our tradies and our admin staff don’t go hunting for another job elsewhere. For me, it’s time for us to step up and learn how to keep your current team happy. And the answer to this is culture.

Andy
Yep. A hundred percent. There you go. There’s a hundred percent . But. We did a uh, we did a great presentation with our members around five months ago actually and we said to them, now is the time to lock in your staff. Now is the time to make sure everyone’s happy and give them the opportunity to stay with you long-term. So whatever that was. And we went through a heap of strategies for our guys, and it’s worked really well with our members and the majority of them have retained everyone, which has been great. So let’s strip this back to basics.

Ange
Absolutely. So what is culture and why does it matter? Let me answer the first question, which is, what is culture? Culture is the social order of a business. It actually shapes, attitudes and behaviors. So firstly, what I wanna say is culture is something that is shared. So for instance, it doesn’t, culture doesn’t exist just within one person. It resides in our shared behaviors, our values. It’s basically our unwritten rules.

Andy
Yeah, that’s true. And I, I think culture is long term. You know, you need members and your team to work together over a long period and all bring the same characteristics, you know, similar to their own and work as a team because business owners are more likely to select team members who seem to just fit in and over time, those that don’t fit in tend to leave or even get pushed out the door by the team members.

Ange
Yeah, I totally agree with that. Culture is something that you can’t see. You can actually only feel it, and if it’s done right, people are effectively hardwired to, I don’t know, recognize and respond to your culture instinctively. It’s kind of a silent language. It’s basically the vibe of your business. So, Andy, let me ask you this. Why do you think that we as trade business owners need culture in our business?

Andy
Well, the ultimate benefit is just the happiness of the team. I can tell you, when you’ve got a happy team around, you’ve got greater productivity. You know, obviously it’s lower staff turnover. You’re getting customer reviews. Mm, you know, less safety issues. But all of this combined just gives you more money in your back pocket and you can really see those teams that just absolutely gel and the business, they’re comfortable with everything that’s happening with the business. And I think you know when you can get to that place, it is awesome and you know when you’re there and you’d never want it to leave.

Ange
Yeah, I, I definitely think there is some logic in saying if you employ someone in your team and if you truthfully could have them over for dinner and hang out with ’em on a weekend and you’re actually happy about that, then that’s a really good fit. Right? Because their values are similar.

Andy
Yeah. Yeah, that’s exactly right. I was gonna say a hundred percent, but that’s exactly right. . . But the thing is, you want to be able to hang out with these guys and you want the whole team to want to hang out with each other. And when you have that, and I’ve been involved in many businesses over the years before I had a business, And when I’ve had a business and when you have that click and everyone’s game on, geez, it’s such a great environment and the money just seems to flow.

Ange
Well, that’s really interesting because you did come from a period when you were, say an apprentice, or maybe you were a licensed plumber by then and used to water ski on a Friday, for instance, and you would actually hang out and go to the pub on a weekend, right?

Andy
Yeah, we did. We’d have drinks on a Friday afternoon together. We’d go down to the Manly Dam and we’d ski together and we’d hang out together and we just were also into it. Well, we loved our training and we loved our sport in our fitness and we just connected, you know, when we were working together, we just worked so hard and then we played hard together as well, and then we’d all hang around on a Monday morning and have a bacon and egg roll and talk about how incredible the weekend was. But yeah, we were like one big happy family. It was almost like a cult like we just hung out together, didn’t we? And that was probably around the time I met you.

Ange
Yeah, totally. What I love about that though is those people are actually still our friends. Right?

Andy
A hundred percent. We probably don’t, I don’t catch up with them as much as I’d like to, cuz life gets in the way and kids and family. But yeah, we’re all, if any of them gave me a call tomorrow or I gave them a call, we’d drop everything and help each other out. We’re all plumbers. Um, yeah. And that’s another thing. And we, and they’re all successful business owners in their own right. So it’s amazing how we work for one boss and there’s probably about 15 or 20 of us over the years, and every single one of them is successful and is doing extremely well for themselves.

Ange
Yeah, you’re also driven.

Andy
Yep.

Ange
So what I find interesting with regards to culture is as a trade business owner, it’s got to start with us. So we are clearly the leader of that business. And if we want to create a better culture in our business, not only do we need to understand what it is, but when we do that, it is our responsibility to ensure that we specifically look after our team. So imagine it’s you and one other, or maybe let’s talk about maybe a team of five, for instance. It is important that you, as an owner, look after your team because the team looks after your customers, that’s their role. And then the customers basically look after us as a business because they pay us money, they pay their invoices, especially when they’re A-grade clients. And if we’re gaining profits consistently in the business, we now as an owner are armed to be able to scale, to buy new equipment, to do the right marketing, and basically increase wages and have way more fun with our team. It’s a cycle. Right?

Andy
It’s definitely a cycle and I suppose we can have a look at it, and I like going back to sport cause I love sports so much. Um, if you’re a rugby union person or an A F L or a rugby league person,

Ange
Who’s your team Andy? NRL?

Andy
There’s only one team in the N R L that really counts and that’s the manly seagulls. Yes. Not doing too well this year. Yeah. Yeah. Sitting at the bottom of the table. Well that’s another thing.

Ange
I think you might be getting bagged out by lots of listeners right now.

Andy
Yeah, I know. I know. I know. Probably. Parramatta fans. Mm. Anyway, the big thing is if you have a look at these teams, part of being a good coach, if you, if you’re coaching rugby league, rugby union, all AFL is actually having a good culture within your team. And you see that on the tv, the teams that seem to be winning, it’s a winning culture, but they just love each other. And when something goes down high fiving and cuddles and yes, they actually play cards together and they hang out together and they’ve got this amazing bond. And when they’re doing that, they’re winning premierships. It’s interesting, but culture can’t be there forever sometimes, and sometimes the culture drops off and you can see that in sport where sometimes the teams drop off. So you know, there’s a real element that everyone wants, a hundred percent amazing team culture. If it’s a business or a sporting team, that’s quite hard to get there. If you get there, that’s when you’re making the big bucks. And um, it’s hard to stay there forever because sometimes you get a few people that leave and you gotta try and get the new people coming in that believe in the same culture. Yes. And wanna grow as a team. So,

Ange
So you said a couple of things that I thought were really interesting, which is that you have that winning culture, whether it’s a sport or whether it’s a business, the profits will come, you said?

Andy
Yeah.

Ange
The team winning will come when

Andy
Success will come.

Ange
Exactly. Um, however, you also said if people start leaving, the new people coming in have to have the buy-in for the vision. And so, you know, the forward planning of the business and the connection for me here for a trade business owner, is you as the owner have to see that vision first. You need to be embedded with what is that vision, uh, for the business and what is that mission statement in essence so that you can explain to your new team members and consistently say to your team, this is the journey we are on and this is how you fit in. And it’s embedded with the right values and so that you’re employing the right people who are the right fit. Cuz if you don’t employ the right people. You said earlier. Over time, the team will technically push them out, which I agree is true. Yep. But that bad Apple, if they stick around for whatever reason, can actually tarnish the rest of the team.

Andy
Can absolutely destroy it. And uh, and I know in these times, uh, where it is hard getting the right staff right now, and we tend to, you know, jump the gun and just get anyone. Well, if you’re bringing the wrong people in, I guarantee you it could be doing a lot more damage than you even realized.

Ange
This culture piece really does come, as we’ve said, specifically from you, from the owner of that trade business. And as I said, this is like entrenched in your vision of what you’re trying to do with this business and the values that you have. And we’ve even gone so far as to develop, uh, Dr. Drip culture book. And we educated this back through all of our members because it’s one thing to kind of speak around the direction of the business. But it’s also a very different layer to have something quite visible and tangible that your team can actually touch and feel. So when you start talking about values, they can see them. You can start talking about them in the toolbox meetings, and you can constantly bring up this subject around how this culture, which as we’ve said, you can’t touch or feel it. So how do you ensure that the conversation is consistent?

Andy
Yeah, and when we developed this book, we actually brought our team at Dr. Drip and we had a good chat with them about what they think about culture and what it means to them and, and really building a great culture is sort of knowing a lot of that small stuff about everyone in the team, you know? And knowing about their partner and knowing about their family and actually giving a shit really, and understanding what they do on the weekend. And then also, you know, celebrating anniversaries when they’ve been with the company for, for a year or two or whatever. And celebrating life events, you know, what’s going on in their world. And then also,

Ange
Like maybe they’ve got married or bought a new house or,

Andy
Yeah and we always found that the best teams when someone did get married, like everyone,

Ange
Will they be there?

Andy
They were definitely going. You, we’re there, man.

Ange
It was an expectation that you were on the bridal table.

Andy
Yeah, and obviously just the team’s success as well. So everything we did was about this winning formula, this winning team, and there was no one left out and we’re all as close as each other.

Ange
I agree. It was really important that we maintained outings with the team. That was either just the team you guys would, you know, paintball or whatever it’s called. Um, or we’d include the partners or sometimes we would include the children cuz you know, some of us had kids or whatever.

Andy
Exactly.

Ange
But to get to know your team and like you said, actually give a shit about everybody. Mm-hmm. . But you know, that’s our values cuz family is so important to us. So we’ve only ever employed people that have the same values as us.

Andy
Yeah. And I think you gotta be a little bit careful too with building this team culture because there’s a stigma around building team culture with alcohol.

Ange
Right. And I was wondering where you’re going there.

Andy
We have done that quite a few times and there’s been a lot of bonding sessions around that. And we laugh and joke about the night, but it’s also gone the other way. Yeah. And actually people have had full on punch ups over that.

Ange
Right. Be careful.

Andy
You just gotta be careful on what you’re gonna do and how you go about it.

Ange
Well, we’ve laid in staff fitness sessions before, and I do think ensuring that you consistently develop your team too, so that they know that you have buy-in about their own personal journey, right? About their skillset and or personal development. And what are you doing to improve them as a person, because your job as a leader, as a business owner, Is to get the best out of every single one of your team, that’s your job.

Andy
Here it is. And I, I think the team doesn’t necessarily wanna see you when you aren’t at your best. And um, for many times I’d pull up in my ute and I’d run up the stairs and run into the office and go, Hey, how are we everyone? Yeah. And try to put that jovial mood and it’s fun and exciting, but let’s face it, we all have times when we crack it. And I definitely still have times like that , but, but you know, you, you, you shouldn’t be cracking it directly at your staff. You know, they may see you crack it occasionally here and there, and I think this is a part of life, but when you personally attack someone, once you’ve done that, you are never gonna get that respect back from them ever again.

Ange
No, I agree. So, if you were to layer in culture as a business owner into your team, one thing I would say to you is make sure you are super consistent. So if I was to use an example, like one year you gave them a gift as a birthday celebration or a day off or something, and then the following year you did nothing and you actually forgot about their birthday, you might not think it’s a big deal, but to them it is so important that once you’ve, they felt important and, and that they felt heard and loved, and now all of a sudden they’re not.

Andy
Yeah, I think society has changed a lot and I know a few of you older guys and girls out there like me would know that. But this day and age, you know, what we did back then is not what people expect now and they expect that love and tenderness and you know, sometimes you gotta get that hair brush out and stroke his hair and make sure he is okay, you know? But consistency is key and people don’t want to feel like a number.

Ange
No.

Andy
They wanna feel like they’re an integral part of the team.

Ange
Absolutely.

Andy
And if you can continue to do that, people feel settled. And we talked about dollars and cents and what’s been thrown around out there. People don’t move just for money. No. They just don’t. They move for money and culture and a better business. But if you have a really good business, you have a really good culture and you pay good money, people aren’t necessarily leaving, well, they won’t leave to go to someone else. They might leave to go out on their own, but they won’t leave to go to someone else.

Ange
Correct and therefore, the moment that they have potentially replied to an ad and you are on the phone to them and, and or you get an opportunity to meet them face-to-face, the way you communicate about your business has gotta start from that very first phone call about embedding the language of your culture. They need to know a little bit more about your business. So tell them what’s the vision for your business and how do they fit in? Start early.

Andy
I heap you out there are probably thinking right now. But you know what, I don’t have a big team. I’m just like a one man show and it’s just me. So how does culture really work when you’ve only got one staff member?

Ange
Well, it is important even if it’s just you on the tools, because I imagine that your intention is to eventually employ someone, because you can’t take time off and actually have a profitable business and without actually having at least one team member that works with you. So it’s important that you understand what that culture is going to look like as you start to grow. So you need to think about what’s the vision of your business? What’s the mission of that business? What are the values that are important to you as a business? If you layer this stuff in now, the moment that you decide to employ someone, you already know what this business looks like and how they fit in.

Andy
Yep! Totally agree.

Ange
And on the other foot, if you do have a larger team, I would highly recommend that you allocate this role, what I call the Happiness Rockstar, because this one person is now responsible to ensure the culture piece is consistent within your trade business.

Andy
Alright, we’ve covered a lot of high level stuff today. So to summarize, Culture is the personality of your business. You know, if you, as a business owner, shape this culture based on your actions and interactions, you’ll get incredible results. The same culture rules need to apply though to everyone in your business every single day. It doesn’t matter if you have a big team or you got a small team, you have to do it the same way everyday. So you should be writing down and sharing your vision with your team and making sure they have the buy-in as well. This is not gonna happen just overnight, but when this happens and as your business grows, a good culture is everything You need to have a killer business and make killer profit. So get out there and make sure your culture is kick ass today.

Ange
It’s news time.

Andy
Ah, so Ange let me ask, when you filled the car up today with petrol, how much did it cost you?

Ange
You’ll never guess. $2.50 a liter. That’s an absolute joke.

Andy
That is red ot.

Ange
You know what? We used to complain when it was less, but I’d be ecstatic if I saw it for less than $2 right now.

Andy
Remember when we traveled around Australia in 1998? And we found it up in the high end of WA somewhere and it was over a dollar a liter.

Ange
I know.

Andy
And we were just freaking out.

Ange
Absolutely. Those were the days.

Andy
Uh, times have changed. Times have changed. It is absolute bullshit that it’s gotta be that much these days. Like it’s crazy. But unless you’re living under a rock, we all know why this price hike has come about. You know, with Russia and Ukraine and everything going on over there, it has certainly taken a toll on everyone around the world.

Ange
And you know what? It’s not just petrol that’s soaring in costs with us here in Australia, we’re technically an island, right? So everything’s imported by air or sea, and then it’s trucked all over the country, so every single leg of the journey needs petrol, which means everything from groceries, medicine, clothing, you name it, it’s all going up. And so hence is the cost of living.

Andy
What you said there Ange is really interesting because the price of petrol is going through the roof, and what I’m finding really interesting is that most businesses haven’t adapted to that as yet, and they’re not passing that onto their customer.

Ange
Yes. That’s interesting because anyone who’s listened to this show before has heard us go on about charging what you are worth and making sure your hourly rate is based on data and not your gut feel. And you know what? This situation is no different.

Andy
That’s so true because the cost arising across the board in everything we do, and the amount of people that are still running around charging the same hourly rate and the same prices, it’s absolutely crazy. Now is the time to actually sit down and rework your hourly rate and what you are charging because it’s really important things are going through the roof. So you need to keep an eye on your suppliers too, cuz I’m telling you, they are going up more than petrol. It’s absolutely crazy. But as business owners, we have to adapt really quickly and we’ve gotta make sure we are passing on these extra expenses straight away.

Ange
Look, none of us know how long this inflation on petrol or the cost of living is gonna last. So if the idea of reworking your hourly rate feels entirely like a tall order, then maybe look to increase your call out fee to help cover the cost of petrol.

Andy
Personally, I think you need to do both. But you know what? I’m no foreign correspondent, but it feels like this war isn’t gonna stop anytime soon, and it’s highly unlikely that fuel costs are gonna come down anytime soon either.

Ange
Totally. And as a trade business owner, it’s not just your vehicle, we’re filling with petrol, but your entire fleet. Imagine if we still had a team of 17, that’d be hectic. That could get really expensive really quickly if you haven’t reviewed your hourly rate. So guys, I wanna be super clear. You as the business owner, should not be shouldering this costly burden.

Andy
Preach, baby. Preach . Whoa. No, I agree with everything you said, Ange, for too long a lot of us business owners, we just wear it. We just cope with it and we definitely don’t need to. Look, some trade business owners during covid got caught saying things will be back to normal tomorrow.

Ange
And if you are worried about your customers pushing back, I think it’s best to be transparent. It now costs you almost double to get to site, and it costs you more to even get supplies. So at the end of the day, customers expect big brands to shoulder these costs and they shouldn’t be expecting smaller trade businesses to do the same. It’s crazy.

Andy
Yeah, I definitely agree. I definitely agree. You know what? It’s absolutely terrible what’s happening over there in Ukraine, and if you feel you wanna help, there are so many charities providing aid. There’s a UNICEF link in the show notes. These guys are on the ground doing a real amazing job, and hopefully soon there will be a resolution.

Ange
Yeah, you know, we hate ending the news on such a sad note, but I do think it’s important that we don’t sugarcoat the dire situation and that we all support where we can and protect our businesses at the same time.

Andy
Thanks so much for going on this journey with us today, as we said at the start of this episode, Ange, and I love bringing this show to you guys every week.

Ange
So if you haven’t already subscribed so that you never miss an episode. And if you’ve got a topic you want us to cover or maybe a funny tradie story or anything in between, then hit us up at our email at podcast@lifestyletradie.com.au, or The Tradie Show Toolbox on our website.

Andy
Or if you wanna chat about how to set up a good culture in your business, let’s chat. Book in a strategy session with me at lifestyletradie.com.au. Or there’s also a link in the show notes.

Ange
Yes, it never hurts to ask for help. Anyway, I think that’s us done for today, Andy.

Andy
All right. Until next time. See you!