Why Company Culture Matters as Much as Craftsmanship for HVAC Contractors

Attracting & Retaining Skilled Workers

The skilled labor shortage is one of the most pressing issues in the trades today. Experienced professionals are aging out, and younger generations are less inclined to enter the trades, often due to outdated perceptions that any four-year college degree is inherently more valuable. This is where culture can play a transformative role.

A company that values its people, invests in their development, and fosters a sense of pride in the work will stand out to potential hires. Word travels fast in trade communities, and employers with reputations for being fair, supportive, and respectful attract more applicants and referrals.

Also, when employees feel valued, they're far more likely to stay. Retention is especially crucial because the cost of losing an experienced technician includes not just rehiring expenses, but also lost productivity and customer relationships. 

Improved Job Performance & Accountability

A trade business with a strong company culture establishes clear expectations and reinforces the values it wants all employees to share.

When workers feel part of a purpose-driven team, they feel less like a cog in a machine. This means they are more likely to take pride in their workmanship and go above and beyond — not because they know they’re being watched and fear the consequences for failure, but because they care about succeeding and want their efforts recognized.

Accountability is key to safety and quality. Business owners can foster accountability by making trust, mutual respect, and open communication key pillars of company culture. Leaders can also support accountability by treating mistakes as learning opportunities while encouraging continuous improvement that can prevent similar mistakes in the future.

Enhanced Safety Practices

Improved job performance and accountability also lead to enhanced safety practices. In physically demanding and sometimes dangerous environments, culture plays a critical role in workplace safety. A safety-first culture means that all employees wear protective gear, never skip procedures, and look out for each other. It should go beyond mere compliance because it becomes a shared commitment.

Companies that ingrain safety into their values tend to experience fewer accidents, lower insurance premiums, and improved morale. More importantly, they protect their most valuable asset — their people.

Better Customer Relationships

A company’s culture often shapes customer relationships. When a team shares values such as honesty, punctuality, professionalism, and quality workmanship, these can translate into positive customer experiences that can result in repeat business and referrals. As any business owner knows, repeat business and referrals are key for growth and maintaining growth over time.

When developing a company culture for your business, it’s important to remember that it will inevitably impact your customers. A culture that’s too harsh on your employees could embroil you in constant turnover and missed business opportunities, but a culture that’s too lax could foster bad habits that negatively impact the customer’s experience. Finding the right balance for your company is essential.

How You Can Build Your Company’s Culture

There’s no “right” way to build a company culture except the way that works for your business. With that in mind, you may find yourself in a trial-and-error period before you find systems and policies that work best for your trade business.

That said, there are some simple changes you can make at any time to get started—and none of them require a ping pong table or catered lunches, if that’s a direction you want to avoid.

Consider these simple strategies to realign and define your company’s culture:

• Recognize good work: When your employees do well, let them and their colleagues know. Getting into the habit of publicly praising them, sending them thank-you notes, or even providing small bonuses or gifts for exceptional work. All of these contribute to positive morale and encourage other employees to work just as hard as your best performers.
• Provide training and development: Every employee can benefit from training and development, whether they’re a brand-new employee or someone who’s been with your company for years. In the latter case, check in with seasoned employees to find out the areas where they’d want additional training and consider investing time and resources into providing it.
• Conduct regular team meetings: Team meetings are a great way to share important information, exercise transparency, receive feedback, and build camaraderie. Consider establishing a cadence for team meetings that makes sense for your business.
• Model respect from the top: It’s important that your company’s leaders show respect for their direct reports. When leaders conduct themselves professionally and fairly, they demonstrate the respect that all employees should have for each other and their customers.
• Celebrate success together: Just as it’s important to recognize an individual’s good work, it’s important to remember when the company as a whole succeeds. If you won a coveted contract or completed a difficult project, these are times to celebrate the entire team’s success.

As you think about developing a culture for your company, you’ll find that there are many ways to implement it. Many of these will cost you nothing but your time and consideration, while others could require a nominal investment. Again, it all depends on your specific company and the culture you wish to foster for it.