Executive Summary
Enviro & Demo Masters, Inc. is a demolition company that treats its employees unfairly. In the recent past, the executives of the company were found guilty of underpaying their employees. However, the executives have developed a habit of violating the federal wage law and tampering with the witnesses whenever the company is sued. The company presents false payrolls to the government agencies to deceive them of the exact amount of money that it pays its employees.
Generally, Enviro & Demo Masters, Inc. is one of the companies that hide their unlawful practices through fraud, which covers up their ill deeds. The company employs fewer workers than the mentioned number of workers in the contract. Thereafter, the company lists the names of relatives in the record of demolition workers, yet the relatives never work. The certified payrolls presented to the ministry of labor contain forged signatures.
Indeed, the unlawful practices that the company performs are numberless, and the company executives forget that their practices would have adverse consequences on the general performance of the company. Further, the company may have a destroyed reputation, as employees would shy away from accepting the company’s employment opportunities.
The company ought to treat their employees fairly so that they can deliver their best. This memo is addressed to the CEO of Enviro & Demo Masters, Inc. It contains some advice of the strategies that the company ought to employ to improve the internal operations of the company.
Advice to the company’s executives
Enviro & Demo Masters, Inc.’s executives should know that employees are the most important stakeholders of the company. Their efforts determine the quality and quantity of products and services offered by the company. Essentially, employees determine the profitability levels of the company.
The employees have the ability to strike, demonstrate, and destroy the reputation of the company. They can also discourage other employees from joining the pressured work environment. Therefore, employees need an encouraging work environment to deliver their best.
It is worth noting that employees or customers can make use of the loophole to formulate their own demolition companies that will compete against the Enviro & Demo Masters Company. Obviously, the new companies would beat Enviro & Demo Masters, Inc., as they would seal all the loopholes. The company’s executives should understand that they ought to have a mutual relationship with the employees, as they cannot do without them.
Steps to take
Employees’ pay
Enviro & Demo Masters, Inc.’s executives should understand that every person works hard to earn a decent pay. Therefore, through all means, they should pay their employees the exact amount of money that is indicated in the payrolls that are presented to the ministry of labor.
The executives ought to know that in the contemporary world, the economy stiffens and they ought to find ways of increasing the employees’ salaries from time to time. Cases of paying casual laborers $13 per hour, yet they ought to be paid about three or four times of the amount should stop with immediate effect. The company should offer decent payments to all their employees to motivate them to deliver their best.
Fringe benefits
Like other employees in the government or private sectors, the employees in demolition companies have a right to obtain fringe benefits. They have a right to have paid annual and emergency leaves. It is noteworthy that Enviro & Demo Masters, Inc.’s executives deny the casual laborers paid sick leaves. They ought to know that employees who have worked for a company for at least six months can sue the company for denying them their pay during their sick off days.
Moreover, the demolition exercise exposes the employees to many risks. Every employee, whether on casual or permanent basis, should have an insurance cover for the short-term and long-term side effects of their work. Enviro & Demo Masters Company should develop a habit of allocating some money for the fringe benefits for all its employees.
Motivation of employees
Employee motivation is a very important practice that improves the general performance of employees. Enviro & Demo Masters, Inc.’s executives should find a way of measuring individual employee performance and rewarding the employees who have high scores. The company can promote casual employees with high records in their performance scores, or increase their allowances.
The promotion strategies would act as a motivating factor for the sluggish employees to work hard and receive similar treatments. Those employees who prove to be incompetent in their performance should be demoted because they do more harm than good to the company. With the employee motivation approach, all employees will work cautiously with the knowledge that their actions would either reward or demote them.
Employees’ training
Demolition companies like Enviro & Demo Masters have a tendency of disregarding training programs. The company executives of such companies always hire unskilled workers to do the manual jobs. However, in the evolving world, technology changes with time. Inventors are coming up with new machineries that ease the manual works.
Cases have occurred where employees in demolition or construction companies were forced to operate machineries that they did not know how to operate. Enviro & Demo Masters Company should adopt a new strategy of organizing trainings and seminars for their employees. Employee training is a very recommendable exercise that keeps the employees updated of the newest technologies.
Organizational structure
Organizational structure is a very important aspect in every company. To enable the effective management of the company, Enviro & Demo Masters, Inc. should employ a functional structure that is headed by the chief executive officer of the company. Various organizational managers should supervise the manual laborers of various departments.
Essentially, every worker must report to the immediate supervisor who will forward any complaint or compliment to the necessary authority. In fact, Enviro & Demo Masters Company should introduce a whistle blower policy that would enable workers of all ranks to voice their concerns. A strong culture of respect will attain high ethical standards amongst all employees regardless of their ranks.
Outsourcing
Sometimes, it is necessary to outsource expertise in a given field to help the demolishing companies to perform some tasks. However, Enviro & Demo Masters, Inc. should limit its outsourcing practice as much as possible.
Any time the company’s executives note that the company needs some expertise in performing some task, it should think of training some of its permanent employees. Essentially, investing in training would appear to be expensive; however, training permanent employees is less expensive than outsourcing in the long run.
Why the company has not taken the mentioned steps
Companies’ executives underpay their employees, deny them fringe benefits, or forego the training costs in their efforts to contain costs. However, they do not know that their practices have more harm than good to the company. Essentially, the company executives of Enviro & Demo Masters, Inc. have always tried to hide their ill deeds through deceptive practices.
Indeed, the company executives are not aware of the adverse consequences that their fraudulent payrolls can have to their company. Honestly, every individual has blind spots, and the mentioned blind spots have prevented the Enviro & Demo Masters from adopting the ethical practices mentioned above.
Cost of the proposed strategies
The exact cost of the proposed strategies cannot be estimated because the number of employees in a demolition company varies from time to time. However, the company should purpose to pay every demolition employee at least $35 per hour.
The fringe benefits will also vary, but the company should set aside at least $2,000 per month for the fringe benefits. Employees’ training should be a continuous exercise, and the company would be required to spend a minimum of $8,000 per annum on training. Essentially, the company will have to decrease its profits in the initial stages of adopting the practices mentioned above.
Advantages of the proposed strategies
One thing that the Enviro & Demo Masters, Inc.’s executives need to know is that the company will not experience the benefits of their practices in the short run. However, the strategies will have enormous rewards to the company. Firstly, the employees will have great satisfaction because of the favorable work environment and the decent pay. Consequently, they will deliver their best to the company, and encourage new employees to join their work force.
In fact, the company would never have a deficit in the number of demolition laborers. Secondly, the company’s executives will not have to undergo the struggles of trying to hide their ill practices, as there will be transparency in their operations. Essentially, the courts and the department of labor will not have to follow up on the proceedings of the company, as the employee satisfactory surveys will provide enough evidence of the ethical standards of the company.
The government will have more confident in Enviro & Demo Masters Company, and it would double the number of contacts with the company. This will enable the company to expand, employ more laborers, and generate more profits than before. Lastly, the public will have a positive reputation about the company that will be earning honorable profits.
Consequences of not employing the above-mentioned strategies
It is noteworthy that currently, Enviro & Demo Masters Company is at a traumatic position. What the company needs to do is adopt a change with immediate effect. If the company fails to adopt the above-mentioned strategies, it is likely to have a very bad reputation from the public. It may end up losing its competent laborers to other demolition companies that treat their workers fairly.
The government, the courts, and the ministry of labor may impose heavy fines, which would cause the company to become bankrupt. The company executives may receive merciless jail terms, and worst, the courts may order the company to be closed down. Therefore, it is a high time that the Enviro & Demo Masters Company adopted the above-mentioned strategies that would enhance the internal operations of the organization.