Finding the balance between integrity and profits can be challenging while running a business. As the owner and CEO of a successful drywall company, I’ve faced tough decisions. Recently, someone suggested I cut costs by paying my subcontractors less and using cheaper materials. It’s not the first time I’ve heard this, but I always come back to the same answer: no.
While making money is important, I won’t sacrifice ethics and relationships. Keeping my business rooted in integrity means a lot to me. Even if it affects our profits, sticking to my values helps me lead with confidence and find contentment in my business practices.
I share this not to be self-congratulatory but to provide insight and perspective. In an industry often driven solely by profit, there’s an opportunity to put a greater emphasis on values.
This perspective lays the foundation for transitioning to a human-centered business approach.
Consider this: What’s most important to you at the end of the day? Do you prioritize upholding your values and integrity, or do profit margins overshadow these principles?
What Does it Mean to Be a Human-Centered Business in the Construction Industry?
Being a human-centered business means prioritizing the needs and well-being of people above all else. This includes your subcontractors, employees, customers, and the wider community. Here’s how PDI exemplifies this approach:
➡️ Fair Compensation for Subcontractors
Put simply, the industry’s standard pay is too low, especially when considering the demanding nature of tasks like hanging drywall and painting. At PDI Drywall, we recognize our team’s hard work and ensure they are compensated well. Our subcontractors are integral to our operations and we’d have no success without them.
A human-centered approach means viewing our subcontractors as individuals with unique skills and experiences, not just profit generators.
We go beyond monetary compensation by assisting subcontractors in establishing legal businesses with EIN numbers and business bank accounts. Empowering them to become self-employed business owners allows them to be more competitive when working with other general contractors. It’s our way of demonstrating their value and importance to our business.
➡️ Prioritize Safety
Construction sites pose inherent dangers due to powerful tools, towering ladders, and tight deadlines. For this reason, safety needs to be a top priority.
I require all of my subcontractors to carry General Liability and Workman’s Comp insurance, a legal requirement often overlooked in the industry. This safeguards everyone involved and reflects our commitment to safety. Additionally, prioritizing above-industry-standard pay for subcontractors allows them to afford this essential insurance coverage while still earning a significant profit.
Committing to your team’s health and well-being shows that you view them as valuable individuals. This fosters a sense of trust and loyalty, leading to higher job satisfaction, increased productivity, and lower turnover rates. Safety isn’t just a priority— it’s a moral imperative in construction.
➡️ Encourage Open Communication
At PDI Drywall, every member of our team is important, and we encourage everyone to talk openly and honestly. We want our team to share their ideas about each project and any ways we can make things better. This commitment to transparent communication helps us grow as leaders and makes our jobs run more smoothly.
Open communication also includes acknowledging the strengths and achievements of individual team members. By highlighting hard work and successful outcomes, we create a friendly and respectful atmosphere. People like to be appreciated!
Regular check-ins are essential to keeping track of our team’s progress and the overall atmosphere on each job site. We practice active listening so subcontractors feel heard and valued. This makes a positive work environment and strengthens our team work.
➡️ Use High-Quality Materials
We don’t skimp on the quality of our materials. Unfortunately, using cheap materials is a common way to cut corners in the construction industry. It’s not a big mystery why— higher quality materials cost more money which can eat into your profit margins.
Despite this fact, using high-quality materials is important for a few reasons. For starters, we’re constructing buildings where people will live, and they deserve a quality place to call home. We want to strengthen our community and contribute to its improvement.
We also choose materials that are easy to recycle and made from recycled materials, which are significantly more expensive. Despite the elevated cost to my business, participating in recycling programs allows us to put less waste into our landfills. Running a human-centered business means caring about our community and the planet as a whole.
Playing the Long Game With a Strong Reputation
Prioritizing integrity might not seem like the most profitable approach for your business at first glance. The examples I provided will help you run a more human-centered business, but they do require time and money. Leading with integrity means sometimes putting the well-being of your employees, community, and even the planet above your own profit margins.
That’s why defining and sticking to your values is crucial. As your company grows and faces challenges, it can be easy to let your values slip away. It takes effort and constant self-monitoring to maintain them.
But, there are significant benefits to leading a company with strong values, including financial gains. By operating with integrity, you build a strong reputation in your industry, which can lead to higher prices, collaborations with other ethical companies and contractors, and a steady schedule of high-earning projects.
Learn more about the financial advantages of running a human-centered business in our blog: “How Strong Business Values Lead to Build Financial Success in the Construction Industry.”
Take Pride in Your Business
Finding the balance between integrity and profits can be challenging, but it’s a challenge worth taking on. Leading by example, embodying your core values, and prioritizing what matters most to you will inevitably influence your team.
The ripple effect of running a human-centered business will be felt in every aspect of your operations. Enhanced loyalty, smoother workflows, and positive job site environments become the norm. Ultimately, you’ll take pride in running a company that aligns with your principles and fosters a culture of excellence.
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