Strategic Partnership with Labor Companies

Testing new subcontractors—“subs”—or labor partners can indeed be time-consuming at best and risky at worst. There are several potential challenges, such as initial misalignment, lack of training, or onboarding delays, that can impact the overall success of the partnership. Here, we’ll dive into key considerations and strategies to mitigate these risks.

Choosing the Right Partner. Invest time in carefully selecting potential subs. Evaluate their past performance, industry reputation, and client reviews. Instead of fully committing to a new partnership from the start, initiate pilot projects to assess their capabilities, responsiveness, and ability to meet your standards. A strong pre-selection process can save you time and trouble later. When you delegate with confidence, you can give broad objectives rather than focusing on every detail—they will know how to meet them. This enhances overall productivity and scalability.

 

Building Your Perfect Team. Standardize the onboarding process to ensure every sub understands your business’s specific needs, culture, and expectations. Part of building your dream team involves training them to meet your quality standards. Provide detailed training materials, such as handbooks and videos, or create mentorship programs. Pairing new subs with experienced team members for a period helps them learn faster and understand what a “good job” means to you. Though this might feel time-consuming upfront, it will pay off in the long run by reducing errors and improving quality. 

 

Communication is Key. Communication is the cornerstone of a good relationship—in life and business. This includes clear written documentation for all procedures and expectations, regular check-ins—especially during the early stages—to address questions, clarify instructions, and provide feedback. Be open to receiving feedback to create positive synergy between teams and improve processes. Focus on resolving issues together.

 

Phased Approach to Minimize Risk. To reduce risk, adopt a phased approach by gradually increasing the level of responsibility or project scope given to new subs. During an initial trial or probationary phase, both parties can assess fit without a long-term commitment. This allows room to exit the partnership if it’s not working out, without significant consequences. Additionally, have a contingency plan in place in case the sub doesn’t meet expectations or deadlines. This could involve having other subcontractors on standby or splitting the workload among multiple providers. 

 

Evolving into a Strategic Partnership. Once a subcontractor or partner fully understands your workflow, expectations, and business culture, they can operate smoothly, delivering consistent, reliable results. At this point, the relationship evolves into something more valuable—a strategic partnership. A strategic partner isn’t just about delivering what you ask for; they’ll bring ideas for improvement, optimization, and innovation. They are invested in your success and actively look for ways to add more value. 

 

Nurturing the Relationship. Once you find a good fit, nurture it. Develop a partnership mentality and view the relationship as a win-win situation. Also, schedule regular performance evaluations and gather feedback from clients and other stakeholders to ensure the partnership continues to meet evolving market needs. Reaching the point where a subcontractor becomes a strategic partner requires patience and investment, but once that threshold is crossed, the relationship brings long-term benefits. They become a reliable extension of your team, aligned with your goals and contributing meaningfully to your success.

 

Scaling Together. With a reliable partner, you can scale your operations efficiently. They’ll understand your pace of growth and be prepared to support larger projects or increased workloads without needing retraining or adjustment periods. A strategic partner offers flexibility when you need to scale up or down. Since they know your business well, they can quickly adapt to your needs, whether it’s increased production or shifting priorities.

 

Invest in Their Growth. Lastly, invest in their growth. Offer training opportunities in specialized areas of your industry that could enhance their ability to meet your needs. This might involve sharing best practices, tools, or systems that you use internally. When they grow and improve their skill sets, it benefits both parties. If you foresee growth in your demand, help them scale by supporting investments in their capacity (e.g., offering loans for new equipment or co-investing in shared technology platforms). This positions them as a long-term partner.

 

A Long-Term Investment

 

Turning a reliable subcontractor into a strategic partner requires deliberate steps to formalize the relationship and ensure long-term collaboration. Remember that the time and resources spent on training and developing subs are a long-term investment. Well-trained, reliable subs can help your business grow, reduce costs, and improve operational efficiency. These benefits will ultimately offset the initial investment by providing efficiency gains from a partner who understands your needs and operations. Fewer mistakes, reduced rework, and clearer communication save both time and money. A methodical and patient approach will mitigate risks and lay the foundation for a strong, effective partnership over time.

 

 

Maricel García Gossweiler

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