During my career in the office machine industry, I have had the good fortune to be able to meet and get to know hundreds of different office equipment dealers and OEM branches. As an active BTA member and instructor of the FIX Cost Management for Service Seminar, as well as a member of various Dealer Counsels, OEM and Show Advisory Boards, I have been able to teach, consult, and share work experiences with dealers spanning the USA, Canada, and Australia. The one constant I have found is that every independent dealer runs their business in a different way. Even branches within a large dealership or different branches within the OEM’s structure have their own idiosyncrasies.
Regardless of the size or structure of the company, success does not happen by accident. Profitability requires a hands-on owner, general manager, or other senior management that is committed to long term company growth, stability, profitability, and integrity. Dedication to community involvement, ongoing education, and treating the staff with respect is also vital in keeping company morale up. In today’s constantly changing technological environment, companies that encourage education and monetarily reward certification from internal and external providers are steps ahead of the competition.
Formal written business plans, attainable budgets, compensation plans, the owner’s vision, managers with energy and continuing education for all staff members adds to the individualized company structure and culture. The geographical area, size of the community being served, age and background of the owner (sales, service, financial managers, family members), number of partners, and goal of the company all have an enormous effect on the ultimate success and long term viability of the business.
I’ve found small and large companies each have their pros and cons, and finding the right fit for you is crucial in furthering your career. For example, smaller companies can be very agile. Staff usually has the ability to make decisions. Changes can be made quickly. A career path is built on individual ability. Seniority, age, sex and race are not as important as ability and initiative. However, if a company is too small and operates on the concept of family first, emotional loyalty, and a perpetually limited staff, it could result in a stagnant career path. When dealing with privately owned businesses with partners, family, or a single proprietor, there is a wide variance in compensation, benefit packages and acceptable level of productivity. Much depends on the location of the business, company culture, current economy and overall business standards and profitability.
Most OEMs and larger dealers have a long term career path that can be navigated for those willing to take the initiative for upward movement. Corporate guidelines, structured wage categories, software generated bonus opportunities, and strict expense reimbursement policies are usually the norm. Employee benefit packages usually include paid vacation, medical insurance (including full family coverage with co-pay), pension or 401K with company sponsored matching funds, holiday pay, overtime, disability, life insurance, and a company car or mileage reimbursement.
The downside to the security-minded OEM employee is that their life revolves around the corporate structure. There is little interest or knowledge of industry organizations, publications, or events. Their island of interest is only their OEM. There is little concern for viewing the bigger picture of the changes and future of our industry. Too often, their thought process is, ‘Don’t rock the boat. If the new manager does not know my name, I won’t be on the layoff list. Never volunteer. Don’t make mistakes. Just do what I am told.’ A mediocre employee can get by just staying under the radar. There is no need to try to be a superstar; just don’t do anything wrong and you can be employed until your social security takes over.
The overseas corporate headquarters rarely rewards aggressive, forward thinking, upper management. A creative thinker who openly expresses out of the box ideas can be fired by their current employer or recruited by another OEM or large dealer. There is a fine line between being considered a rebel or a genius. Each upward (or lateral) change within the OEM structure may involve a (hiring) bonus, employment contract and the immediate recruitment of several of their former trusted co-workers.
On the other hand, smaller company managers are involved with understanding and developing their own department’s budget. If they want to increase staff compensation or hire more people, they will have to figure out how their department will generate greater profits. Creativity, knowledge, motivational techniques, ongoing education, great customer service, understanding the needs of their vendors, and focused initiative help to create loyal employees and additional profits.
Larger company employees must be sensitive to protocol, adhere exactly to policy and procedures, and need to listen to corporate lawyers. Their responsibility is to implement the decisions of others. The service manager/director/VP is responsible for extracting the requested information that will enable the OEM to accurately anticipate the future need for parts, supplies, accessories and technical support.
The OEM must plan for manufacturing schedules in Asia months in advance of expected delivery to dealers in North America. OEMs have a seemingly unquenchable need to identify and track their equipment’s specific trends or challenges. These include excessive service needs, premature parts wear, usage life, software issues and needed upgrades. Working for an OEM often has the service department feeling like they are the beta testers for each new product release.
Some OEMs and dealerships use field service compensation software programs to determine the pay rate of service techs. Extensive measurements, comparisons and evaluations; including first call completion, parts usage, recalls, incomplete calls, miles driven, mean calls between clicks, customer satisfaction and optimization of labor hours, are used to determine compensation and bonuses.
Privately owned business usually allow for more creative, spontaneous workers who are able to bend or make new rules when appropriate. If you are in sales or middle management there is a much better chance for large bonuses and pay increases than in an OEM or structured larger corporation. If you are a valuable member of the staff and on good terms with your superiors and you turn in your letter of resignation (especially if you have been offered a new job by a competitor), you will probably receive an attractive counter offer to stay.
Often owners of a well run, prosperous business will hold on to a long time employee that provides little value to the company. Some owners are overly loyal to original staff members that helped the company get started, or to a relative that seems to be guaranteed lifetime employment. This is a double-edged sword. Effective managers often have to deal with the cost of an employee that is of little value to their department. These untouchable employees are often shuttled from department to department.
Large or small, rural or urban, family run or entrepreneurial driven, the extended office equipment, document management and IT business offers a wide range of company cultures to review. Selecting the right work atmosphere for you will increase your value as an employee and create an enjoyable work atmosphere.
