Continuity. It’s not a word you hear very often in the pest control industry. Manufacturers change, chemicals change, regulations change. Yet the greatest changes have occurred on the front lines of the pest control industry, where double-digit turnover at the technician level has slowed the growth and development of the industry, causing untold customer service problems for pest control companies throughout the United States.
Yet J.C. Ehrlich, a $75 million company serving more than 160,000 customers in six mid-Atlantic states, has avoided many of the employee turnover and customer service problems experienced by others in the industry. As a result, this low-profile pest control company, headquartered in America’s heartland, is considered by many to be the premier service provider in the country.
What’s the secret to their success? A commitment to long-term relationships as embodied in the company’s vision statement, which is posted in all 44 district offices (see below). "Above all else, our company values long-lasting relationships with our co-workers and customers," says Victor Hammel, the 56-year-old president of the company. "As you’ll note, however, our co-workers come first in our vision statement. That’s because they’re the driving force behind the company. I know of no way of satisfying our customers unless we first satisfy our co-workers."It’s a philosophy that has served the company well throughout its 73 years. "As a part of the third generation, I am proud to carry on the traditions of our company that were initiated by my great-grandfather and continued by the second generation of our family," said Bobby Hammel, Victor’s brother. "These principles have included respect and appreciation for our co-workers, as well as a commitment to our customers."
PCT magazine recently traveled to Reading, Pa., home of J.C Ehrlich, to learn more about the company’s management style and unique corporate culture in an attempt to share its "secrets of success" with the rest of the pest control industry. The result is a comprehensive 10-page report highlighting all facets of the company, including its cutting-edge information technology system, career advancement program and continuous improvement initiative.
FINDING GOOD PEOPLE. With the unemployment rate hovering around four percent for much of 2001, J.C. Ehrlich understands the challenges of co-worker recruitment and retention. "I talk to people in other companies all around the country and it is challenging finding good people," said John Tercha, vice president. Fortunately for Tercha, however, Ehrlich often has a waiting list of potential job candidates thanks to the company’s solid market reputation, which is based on hiring the right people, compensating them fairly, training them thoroughly, and providing them with the necessary tools to do the job right, while continuing to advance their skills in the context of Ehrlich’s comprehensive career advancement program.
"We’ve been fortunate that because of our reputation we’ve been able to find candidates that know of us," Tercha said.
While having an interest in the company may get you through the front door of J.C. Ehrlich, it won’t necessarily get you hired, according to Victor Hammel. "We want to hire nice people," he says. "You can train skills, but you can’t train nice."
To assist the company in hiring "nice" people with the appropriate customer service skills, J.C. Ehrlich relies, in part, on personality testing. "To identify the traits we were looking for we created psychological profiles of current co-workers and then ranked their traits," Hammel said, using the services of Interview Technologies in Milwaukee, Wis. "The traits from the best co-workers are the ones we wanted to emulate, but we needed to identify them first." Once these traits were identified, Ehrlich created a "template" for those candidates most likely to succeed in various positions, taking into account different levels of extroversion, conformity, patience and dominance.
"Personality testing has helped us," said Vicki Peth, human resources manager and a 15-year veteran of the company. "It’s not the whole way to hire someone, but it helps to identify their strengths and weaknesses. It’s effective in finding people with the basic traits (necessary to succeed)."
For example, Ehrlich’s customer service representatives (CSRs), who spend most of their time interacting with clients on the phone, must be able to relate to customers quickly and easily, in addition to have a basic understanding of structural pest control. As a result, Peth says, "We try to find someone who is naturally empathetic. (Empathy) is the perfect customer service trait."
Once a viable candidate is identified, the interview process begins, but the final decision isn’t left up to a single individual. Each candidate goes through a minimum of three interviews, including at least one or two "team" interviews. "You’re not going into a one-person job, so you need to be interviewed by several people you’re going to be working with," Peth said. Also, all managers are trained in behavioral-based interviewing, thereby providing another layer of expertise and reducing the chances of making a poor hiring decision. "We make sure that the managers responsible for hiring decisions have the right tools and training," Peth said.
As a result of the systems and procedures now in place for recruiting new co-workers, Ehrlich has reduced the number of "mis-hires" significantly, according to Victor Hammel. "We try to hire hard and manage easy," he said. "If you hire quickly to fill a gap it is a very inefficient way to do things. We prefer to take a teamwork approach to hiring to make sure we make the right decision."
A CAREER, NOT A JOB. Once a candidate is hired, the real work begins. Every new hire is brought to the home office in Reading for their first two days of employment. The New Co-Worker Orientation Program is provided by the company’s top management on topics such as company history, vision, standards of excellence and the role of pesticides in society. "During these sessions, we’re mainly trying to give people an idea of who we are and what we stand for," Hammel said. "When they leave that two-day orientation we want them to be feeling good about their decision to join the company."
They also want new hires to understand that it’s not going to be easy. While J.C. Ehrlich gives a lot to its co-workers, the company also expects a lot in return. "Sixty-two cents of every dollar goes to our people," Hammel says. "It’s our single biggest expenditure." As a result, Hammel says, "We only want the best of the best."
The decision to call co-workers "co-workers" was a conscious one. "We want to foster a team environment where everyone participates," Hammel said. "Our feeling is that the word ‘employee’ doesn’t really communicate the way we view our people. It also shapes how they view themselves."
"We tell everybody that we do not want them for a two- or three-year job," adds Dave Fisher, technical and development director for the company. "We want them until retirement. I am extremely proud that 88 percent of our co-workers participate in our 401(k) program. From the first day on the job we start talking about career development."
Scott Schmidt, a senior residential pest control technician who has been with the company for 16 years, says he enjoys working for Ehrlich but it requires significant commitment. "As long as you do what is expected of you, you are treated well," he said, but "what’s expected of you" may be more than what’s required at other companies. "It is not unusual to have 12- or 13-hour days in the summer," he said. "We average 55 hours per week but it’s worth the effort because we’re compensated accordingly."
As co-workers reach the next rung of the J.C. Ehrlich career ladder, the company publicly acknowledges each co-worker’s achievement. "We recognize each of their advancements with a certificate," Fisher said. "There are two certificates given as they go to each level. One is to take home; one is to be hung in the office. They also receive a congratulatory letter signed by Victor Hammel when they reach the highest level and in many cases the letter is read at our monthly meetings."
And the letter from Hammel isn’t a form letter. It’s personalized. "The letter may say, ‘We know you have had a major role in a large account,’ or something specific like that," Fisher said. "It really means a lot when you stand up and read a letter from the president that includes a personal touch."
LONG-TERM RELATIONSHIPS. J.C. Ehrlich’s commitment to its co-workers — as reflected in its recognition programs — has resulted in one of the most stable work forces in the structural pest control industry, with nearly 150 co-workers boasting 20 or more years experience with the company.
"We really look for people that we can have long-term relationships with and that includes our co-workers, our customers and our sales people," Bobby Hammel said. "You cannot have that long-term relationship without having the ability to have people want you in their home or their business."
J.C. Ehrlich, of course, trains its co-workers to treat their customers with the same respect that the company treats them. It all goes back to developing long-term relationships with customers. If a customer feels like he or she is being taken care of, they are more likely to remain loyal to the company.
"We go the extra mile for customers," Bachman says. "Our job is not only performing pest control, but also identifying other problems they may have, like structural problems that we or they could correct."
And it’s not just technicians and CSRs who are hired for the long run — sales people are hired the same way. "Our sales philosophy mirrors our corporate philosophy. Our training and sales beliefs are geared around establishing the foundation for long-lasting relationships with our customers," says Corporate Sales Manager Al Murray. "Even for residential prospects we send a sales person to the home to inspect to see exactly what is going on and determine if treatment is needed. They help the people to understand why the problem started in the first place and what steps we and they can take to help."
"From that relationship we begin to build the relationship with our customers," he said. "This ability to develop and maintain relationships through continuity of service has been a large part of our ability to grow over the years. It’s what has made us successful."
The author is editor of PCT magazine.
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HOW ARE WE DOING
Like any good company, J.C. Ehrlich is constantly assessing the performance of its field staff. “We’re not afraid to ask how we’re doing,” says Margaret Ideman, continuous improvement director for the multi-state operation. Clients provide feedback via a customer response card that appears on the back of every J.E. Ehrlich invoice. “We have found that our customers want to tell us the good, the bad and the ugly,” Ideman says. “They tell us everything.” All responses are returned to corporate headquarters in Reading, Pa., where they are inputted into the company’s database and distributed to the district offices. “We code and record the responses according to whether the customer was satisfied or dissatisfied, and whether their comments had to do with our co-workers, our products or some other situation (i.e. billing, invoices, etc.),” she says. The report also lists the customer’s name and account number, in addition to the technician responsible for the account. Space also is available for specific customer comments. Ideman says the company receives approximately 100 customer comments every week, which are reviewed personally by President Victor Hammel, as well as the district manager responsible for the service. “We look at every response,” she says. In 2000, nearly 7,000 customer comments were mailed back to the company, with 22% featuring negative comments and 72% featuring positive comments (see chart). The remaining 6% were informational in nature. “We take the information provided by our customers and make improvements based on that input,” Ideman says. “It’s proven very helpful.” |
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J.C. Ehrlich’s 47 Offices Pennsylvania
New Jersey New York Maryland Delaware Virginia |
J.C. EHRLICH TERMITE & PEST CONTROL
Headquarters: Reading, Pa.
Founded: 1928
Services Offered: Insect, rodent, termite and bird control; bioremediation; lawn and tree care; tree surgery; and industrial weed control
Number of Customers: 162,000+
Employees: 1,100+
Number of Services Performed Per Year: 1 million+
2000 Revenue: $75 million
Increase in Revenue from 1999 to 2000: 8 percent
Anticipated Increase in Revenue from 2000 to 2001: 6 percent
Number of District Offices: 44 offices in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia
Web Site: www.jcehrlich.com
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THE J.C. EHRLICH "VISION" J.C. Ehrlich’s corporate culture — founded on a commitment to its customers and “co-workers” — is embodied in the company’s vision statement, which appears prominently in company literature. It reads: “Since 1928, our family-owned business has been protecting people and their environment. We serve the Mid-Atlantic states, providing a comprehensive approach to our customers’ needs by offering services and products to control pests, termites, birds, and unwanted vegetation, and for lawn and tree care. “Above all else, we value long-lasting relationships with our co-workers and customers. We develop and staff offices close to our customers so that the decisions we make reflect each community’s needs. “By working together, we strive to exceed our customers’ expectations. Leadership, honesty, a strong work ethic, safety, and respect for each other guide us in making decisions in our work today and for our future. That is the way we do business, and it enables us to earn a fair profit and positions us for long-term growth. Importantly, this allows us to provide a stable work environment for our co-workers. “As an industry leader, we will continue to grow by developing new and better ways to meet and exceed our customers’ needs. We are committed to continuously improving every facet of our service and providing co-workers with the information to make better decisions. Following the example of our founder, Julius C. Ehrlich, we are open to new ideas, opportunities, and business ventures that will help ensure a better future for our customers and co-workers, and their families.” |
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CONTINUOUS IMPROVEMENT: PART OF J.C. EHRLICH'S CULTURE
Victor Hammel isn’t naive enough to think that every customer is satisfied with the quality of J.C. Ehrlich’s pest control services. After all, with 162,000 customers and one million services performed every year, there are going to be performance lapses. That doesn’t mean, however, that poor service is something that is tolerated by management. “We don’t expect our co-workers to be perfect,” Hammel says, “but we do expect them to be committed to continuously improving their skills.” Towards that end, J.C. Ehrlich initiated a “Continuous Improvement” program in 1996 designed to enhance the performance of employees throughout the organization. Margaret Ideman, a quality control consultant with 26 years of experience, was recruited to lead the effort. “When I joined the company five years ago it was common knowledge that J.C. Ehrlich was committed to continuous quality improvement, but it wasn’t a formal program that was written down,” she says. That changed following interviews with field personnel and corporate staff designed to identify the “Critical Success Factors” essential to achieving the company’s long-term strategic vision. Those six factors – spelled out in J.C. Ehrlich’s “Quality Plan” that is distributed throughout the company – include: • Co-Workers: Attract, develop and retain diverse teams of motivated and talented individuals, working in environments that foster leadership, empowerment, creativity, mutual respect, honesty, safety, a strong work ethic, and the opportunity for each person to reach their full potential. • Customer Retention: Retain our customers through excellence in all facets of service, from the first customer contact. We will continuously improve all aspects of our business through organizational learning and strive to understand factors contributing to both customer retention and loss. • Growth: Broaden and deepen our customer base through marketing and sales excellence. We will utilize sales and marketing methods and opportunities to enlist new customers, as well as cross selling and upgrading of existing customers. • Service and Product Development: Innovate, develop and continuously improve products and services by identifying, responding to and anticipating our customers’ changing needs and expectations in our chosen markets. New sales and service programs will be tested on a pilot basis before company-wide implementation whenever possible. • Environmental Stewardship: Demonstrate integrity through responsible use of equipment and materials that promote the safety of our co-workers, safeguard our customers and contribute to the well being of the communities and environment in which we live and work. • Business Results and Profitability: Create and maintain businesses that will achieve superior results and profitability. “These are the six areas we want to achieve the highest level of performance because they’re critical to our success,” Ideman says. J.C. Ehrlich also developed specific criteria to evaluate the job performance of individual staff members responsible for these key areas of business development (i.e., revenue growth, customer retention, etc.). “Every district office focuses on three major improvement opportunities each year,” Ideman says. “They may have many things they want to accomplish, but we don’t want them to lose focus so we limit it to three.” The goal-setting process, which begins in December and takes about two months to complete, begins at the field level. “The nice thing about the strategic planning process is it’s a collaborative effort,” Ideman says. “The district managers don’t huddle together to come up with the plan. They work with their co-workers in each district office to review last year’s results and come up with ideas of how they can improve.” After developing their goals, each district office submits its strategic plan to corporate headquarters, where the document is reviewed. If the strategic plan is rejected for being too aggressive or not aggressive enough, it is kicked back to the district office for additional input and evaluation. By early March, a strategic plan for each district office is in place. “We’re committed to the strategic planning process and the concept of continuous improvement,” Ideman says. “It’s essential for our success. As our customers change and our markets change, we change with them.” |
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