Franchisor: Doug Moody (Barrie, Ontario)
Doug Moody knows the tire business. And he knows that it's all about people.
Doug Moody - Active Green and Ross, Barrie from Social Capital Partners on Vimeo.
Shifting gears
AG+R was formed in 1993 when Active Tire & Auto Centre Inc purchased the assets of Green + Ross, which opened their first outlet in the Toronto area in the mid-1930's. Active Tire's founder and president, Mr. Ralph Chiodo began in the automobile service business in 1959, and Active Tire began franchising in 1983. Since 1993, AG+R have expanded across Ontario by operating a number of former SEARS Auto Centres and acquiring former Speedy Muffler & Brake locations to the chain. There are now 75 AG+R stores across Ontario, and the franchise has developed a reputation for being one of the top companies in the sector.
A graduate of the Ivey School of Business at the University of Western Ontario, Doug Moody worked closely with Ralph Chiodo from the very beginning. He spent over 10 years refining Active's franchise program, and by 1993 Doug was the general manager for 22 Active locations. When Active merged with Green + Ross, Doug decided to move to a more hands-on role and initially managed 4 locations. Eventually, he decided to focus on two locations in Barrie, one of which has since grown to 12 bays, with plans to expand further.
The driving factor
Doug heard about SCP's social hiring and retention program through Peter Steele, current general manager for AG+R. At the time, Doug was considering purchasing his second location in Barrie and felt SCP's financing could help with this expansion. He also looked at this as an opportunity to strengthen his existing hiring practices, as he already had a positive predisposition to hiring from community agencies even before SCP came along. Two of his assistant general managers came through local agencies, rising through from entry-level employees. Since implementing the program, other employees have risen through the ranks to key roles in his locations, and most employees that have come through the program have had a positive professional experience.
For Doug, a key question was the implication of entering into formal arrangement for social hiring with SCP. Specifically, to what extent would SCP interfere with his existing operations? His initial concerns, he learned quickly, were unfounded. The terms of SCP's agreement with franchisees clearly states that the owner will retain control of all hiring and firing, and will not be "forced" to take on unqualified employees. SCP would work with the franchisee to secure the employees that they need, and to provide an ongoing consulting role around their hiring strategies.
Firing on all cylinders
Doug has plenty of experience operating franchise locations and has found the relationship with SCP to be very beneficial. From a human resources perspective, the agencies affiliated with SCP suggest candidates for the franchise to hire. He has found this approach to be more effective than traditional methods of posting advertisements. In addition to improved hiring practices, he believes it creates a more positive work environment. He explains, "hiring people with a desire to be in industry, but with barriers, allows these individuals to address their barriers in meaningful ways and faster than they would have on their own." While he has had to adapt training programs based on individual needs, he feels he has a team of dedicated and appreciative employees.
Beyond the social benefits, Doug believes working with SCP offers business opportunities as well. Throughout his career, he has found access to capital to be a limiting factor. He received a loan from SCP to start a franchise location and says, "by Social Capital Partners taking away that constraint, then it takes a very big issue off the table." This ease of mind allows owners to move forward with their business plans without being concerned over financing. Another benefit of working with SCP is the wage subsidy received by the government for hiring employees through the agencies. Doug suggests the wage subsidy should be considered a valuable bonus rather than a deciding factor.
He also sees significant value in his relationship with the hiring agencies and has found them to be very helpful. The Globe and Mail found out about Doug's connection with local agencies and an article was written in October 2007, which described his social hiring program. He believes the article provided positive exposure to the business and is happy to engage the local media on how he is supporting the community in a socially responsible manner.
Keys to success
Based on his experience, Doug recommends the social hiring program and summarizes his experience with Social Capital Partners as "rewarding". That said, he notes it is important to understand the implications along with potential benefits of the program. He cautions that it is possible to employ an unsuitable candidate for longer than usual due to a lack of objectivity or a feeling of obligation. In some cases, the professional relationship blurs into a counselor role and it becomes hard to let someone go based on their circumstances. To deal with this situation, he maintains a strong relationship with the agencies and upholds a proactive hiring strategy of encouraging agencies to call whenever suitable candidates are available.
As Doug's locations continue to grow, he will continue to need good, qualified people to fill entry level positions. By utilizing SCP's social hire program, he feels comfortable the hiring process is under control and therefore he can direct his attention to other pressing matters that every small business owner inevitably faces.
Employee: Lee Johnson (Barrie, Ontario)
Lee Johnson is an up and comer hoping to be the next generation of car mechanics.
Lee Johnson - Active Green and Ross, Barrie from Social Capital Partners on Vimeo.
The road ahead
For the past year, Lee has worked at an AG+R franchise located in Barrie, Ontario. He is currently enrolled in an apprentice program as a tire and lube technician, and plans to complete the curriculum and become a licensed technician within a few years. To achieve this designation, he must attend a number of classes and log 6500 hours of training. He expects to complete the process in three and a half years and this will enable him to develop a strong customer base. His aspirations don't stop there as one day he hopes to open a store of his own.
Shifting gears
This wasn't always the case for Lee. He worked at McDonalds for more than four years throughout high school. After school, he worked on contract for the Honda plant located in Alliston, Ontario. When the contract ended and wasn't renewed, he decided to become a mechanic, and initially worked at Oil Changers in order to obtain related experience. This job proved to be short-term, and Lee networked with a friend working at AG+R to pursue his goal of becoming an auto mechanic. He was introduced to Doug Moody, AG+R Franchise Manager, and was then directed to Georgian College's Job Connect program.
Georgian College administers the Job Connect program, which is funded by the Ontario Ministry of Colleges, Training and Universities. The program was established to provide people with the necessary skills and support to compete in the job market. Lee spoke with a representative at Georgian College and mentioned he had already been in contact with Doug. As a result, the agency facilitated the social hire process and shortly afterwards he began employment.
Firing on all cylinders
When Lee started in June of 2008, he had limited technical know-how but through previous experiences he felt comfortable performing oil changes. Today, he conducts a range of work including procedures for tires, brakes, emissions testing and a thorough 30-point inspection. His determination to learn has been encouraged by AG+R through their training courses. The company covers costs for staff to attend a variety of courses and learn new skills. Once the employee has learned the basics, it becomes easier and less time consuming for coworkers to provide more detailed training.
Each person in the store carries out tasks they are qualified to perform, however, they are encouraged to expand their knowledge of repairs. This is important considering Lee has noticed many of the "good mechanics are over 40 years old so there will need to be a lot of new mechanics being trained." Accordingly, he feels comfortable asking questions and finds everyone to be very approachable including his boss. These factors have resulted in improved optimism toward future job opportunities in the industry.
Keys to success
Lee thinks many people just need the initial chance to gain experience and become a valuable employee. He describes the social hire program as "great" because it provides up and comers, such as himself, the opportunity to prove themselves. When looking for a job, he found most employers would accept his resume and say "we will get back to you", but observed "no one calls back".
He has not taken this chance for granted, and hopes to make the most of it through hard work and maximizing his learning opportunities. He has a positive attitude towards his job and believes punctuality is an important driver of success. He is willing to work overtime and days off and believes "everything is available if you want to do it". He appears to live by these words, considering a few years ago it seemed ambitious for him to become a licensed mechanic, and certainly unthinkable that he would own his store. Today, however, Lee is gaining traction on his new path to success.