NLBMDA Excellence in Human Resources Awards

All in the Family

Profits, ties, and laughs are shared at Randall Lumber & Hardware.

Vital Statistics

• Company: Randall Lumber & Hardware
• Year founded: 1921
• Headquarters: Taos, N.M.
• Number of employees: 40
• 2006 gross sales: $10 million
• Pro sales percentage: 60%
• Key HR benefits: profit sharing, familylike work atmosphere, health insurance, employee discounts, employee charge accounts, paid vacation, sick leave, annual company picnic and Christmas party.

Photo: Jonathan Kannair When Hilario Serrano goes to work each day, he takes comfort in the fact that his family is usually not far from his side. In fact, most of Serrano’s immediate family works with him. Serrano, a seven-year veteran of Randall Hardware & Lumber and a 23-year industry veteran, works with his wife Lori Ann in the accounts payable department, along with sons Paul and Jeremy.

“When you have them with you, there is a lot more harmony and a lot more production, because you are not worrying about them. They are with you,” Serrano says.

Randall Lumber & Hardware has been in business for 86 years, and the one-unit Taos, N.M.-based dealer has always been family oriented.

In 1979, after graduating from Randolph-Macon College in Ashland, Va., Paula Randall Ervin returned home to Taos and the family owned business. She was instrumental in moving the company into the computer age, with the dealer purchasing its first computer system after her return. In the 1980s, she introduced the company’s first point of sales system.

But her legacy with the company reaches back even further when, as a little girl, Randall Ervin began her career dusting, sweeping, and licking stamps and envelopes under the watchful eye of her grandmother, Erna. A decade ago, in partnership with her brother and brother-in-law, David Randall and Britt Bland, Randall Ervin took the company over from her father and uncles: Charles, John, and Merlin Randall. Now she’s president.

Before Randall Ervin and her family partners took over, Erna, who had been president, had gifted the shares in the company among 17 family members. Essentially, they had to be bought out so control of the company wasn’t scattered among many hands.

“As more of us became stock holders, we could see that, at some point, it might become an issue,” Randall Ervin says. “We determined the best thing to do for the longevity of the company was to buy everyone out and consolidate to just three shareholders.”

But while the ownership is concentrated, the family ties are diffuse.Today, many of Randall Lumber & Hardware’s employees have family ties to one another–as mothers to daughters, grandfathers to granddaughters, and uncles to nephews. Roughly 50% of the employees are related to one another through blood or marriage.

“There is no place like home, and Randall Lumber & Hardware is home to more than 40 employees,” Serrano says.

Friends, Family, Coworkers

At 86 years in business, Randall Lumber & Hardware has found long-term success by being family oriented. Shown, clockwise from far left: Paula Randall Ervin; Manny Duran; Sheree Duran; Charles and Dorothy Randall; Rafilita Trujillo; the Serranos (L to R) Lori, Hilario, Paul, and Jeremy; John Ortiz; Britt Bland; William Cordova. Photo: Jonathan Kannair Given the relatively small size of Taos, with a population of 4,700, according to the 2000 Census, finding new help can sometimes be a challenge. Although Randall turns to the local newspaper and Department of Labor to post job openings, frequently the dealer will ask employees if they have friends or family who might be interested in a job. New employees learn Randall’s corporate culture through the teachings of mentorlike personnel. A seasoned manager or employee usually introduces the new hire to fellow staff while showing the ropes of the business. Since many of the new employees are related to current employees, they are often already familiar with the company.

The way Randall treats its employees reflects how it treats customers. “We look out for each other and help each other out,” Randall Ervin says.

Morale is strong at the 86-year-old company, which has an average employee tenure of 10-1/2 years. In fact, Frank Concha, who works in the dealer’s receiving department, has been with the business for 48 years. Kim Montoya, who runs the paint department and is the assistant hardware manager, has been with Randall Lumber & Hardware for 18 years and is said to be known in the community as “the best paint lady in Taos.”

Sharing the Pot

One of the first steps Randall Ervin took after buying the business 10 years ago was implementing a profit-sharing program, with employees splitting 25% of profits at the end of each fiscal year. “It was a way of injecting morale into the company, a way of saying thanks,” Randall Ervin explains.

The distribution of year-end profits is based on roles at the business. For example, profit sharing for contractor sales personnel is based on their net sales for year, their margins, and accounts receivables including what’s past due. For floor sales employees, the payout is based on sales and margins, while yard workers receive a check based on salary levels and their overall performance.

Last year, Randall Lumber & Hardware reached sales of roughly $10 million, with 60% of its business being LBM geared primarily toward independent contractors.

Randall Lumber treats its employees the same way it treats its customers, a philosophy that has founded strong morale and an average employee tenure of 10-1/2 years. Shown, clockwise from top left: Beth Stehlik; Anne Stehlik; Kim Montoya; Scott Ely; Gilbert (L) and John Lopez (R); Theresa Chavez. Photo: Jonathan Kannair Other company perks include an annual Christmas bonus, employee Christmas party, and a company picnic. Randall Lumber supplies the drinks and food for grilling, and employees make their own contributions to the party. The barbeque also features a horseshoe contest and a salsa-making competition.

Serrano’s eldest son, Paul, left for college after four years at Randall, but another family member is waiting in the wings to take his place. Eleven-year-old Zachary Serrano has been spending his weekends helping his dad in the paint department and receiving $10 an hour for his effort.

“We do things a little differently,” Serrano says. “We have a lot fun in this organization, and we promote a pleasant and fun working environment as well as a pleasant and fun shopping experience. Customers are attracted to that.”

Randall Ervin says a key philosophy at the dealer is to not take things too seriously, despite taking business very seriously. The belief is evident in the laughter that can be heard throughout the business.

“I just told one of our customers the other day, you can come in and get a hug here,” Randall Ervin says. “Where else can you work where you can hug your employees and your customers?”