Marketing pulls in the troops at Hills

Hills Electrical & Mechanical has used direct marketing for the past two years to target local 18-year-olds who, after appropriate training, will meet the group's future need for more project managers.

The group plans to double turnover to £200m by 2007, a strategy calling for an annual organic growth rate of 15% a year. Its turnover of £100m is the result of rapid expansion: five years ago turnover was a modest £30m.

Chief executive David Hill said: "Direct marketing worked last year. The agency identified a group of youngsters in the target zone and we had 400 applicants who all received a full pack of additional information.

"This led to 60 interviews, from which we chose the 15 who started on a HNC Building Services training course. We've lost three, so we're now at 12. This year's mailshot went out four weeks ago and has prompted only 100 replies, so we're struggling.

"Before, we had been advertising in the papers but it was expensive. But the heavy attrition rate this time means we might have to take the advertising route again. The agency gives us the option to target quite closely - for instance we can specify 18-year-olds living within 10 miles of Walsall."

Out of Hills' 1,000 employees, there are 75 project managers, 20 of whom came through the internal training scheme. Additionally, there are 30 trainee project managers with a further 12 coming through the qualification process.

Hills undertakes a range of contracts from close to zero (like a plug and socket for a local authority) to £10m. About 95% of turnover comes from being a subcontractor, often in a main contractor's supply chain.

The "good to work for" list includes Bovis, Kier and HBG, while Birse is ranked as one to avoid.

Asked why, Hills said: "We've had our fingers burnt."