By: Danny Gavin, AEM Communications Coordinator –
Jay Allen, second-generation CEO and President of AEM member company Allen Engineering Corporation, has made a concerted effort during his leadership to offer second chances, put employees first, and focus on uplifting the surrounding community of Paragould, Arkansas.
A city of around 30,000 residents, Paragould is home to several addiction recovery programs offered through faith-based ministries, which Allen Engineering is heavily involved in today.
“I’ve personally tried to make my faith a big part of who I am, and that’s been a huge driver of what we’ve done in the community with both drug and alcohol addiction programs, as well as charitable giving,” said Allen.
The AEM Manufacturing Express, the largest public engagement in the association’s 130-year history, was proud to make a stop at Allen Engineering on Wednesday, Aug 14. For more information and to follow along with the tour, visit manufacturingexpress.org.
Creating Change Through Meaningful Employment in Paragould
It all started when one of Allen Engineering’s two on-site chaplains brought a unique idea to Allen. The chaplain requested that the company give an employment opportunity to a recovering addict and former felon who was making a concerted effort to turn his life around. Oftentimes, a candidate with a criminal history and a history of addiction would be screened out during the hiring process – but Allen decided to take a chance. And, as it would turn out, that young man turned into a hard-working employee and stayed on track, leading to Allen Engineering becoming increasingly involved in the various local addiction recovery programs.
“If you take the addicted and incarcerated out of our work pool, that’s a significant chunk of the population,” explained Allen. “They’re usually willing to work in the trades and do blue-collar work, and we wanted to tap into that demographic, of course in a way that wouldn’t put our company or other employees at risk.”
The backbone of this program involves a fairly extensive drug screening process. Testing occurs before hiring and randomly throughout the year. Employees never know when they’ll be tested, and Allen went on to say that even he isn’t exempt from the process. Word got out quickly that Allen Engineering was a second-chance employer, and at one time the company employed over 20 recovering addicts.
Getting Creative to Attract and Retain Skilled Talent
Allen Engineering, which recently celebrated its 60th anniversary, has evolved and changed from a ready mix and aggregate producer to designing, manufacturing, distributing, and marketing their line of Allen concrete and related equipment that is sold across the world. As a smaller business, Allen Engineering is aware that it must provide innovative solutions to customers, and uniquely support employees to attract and retain the talent it needs.
As many companies in the equipment manufacturing industry know, it’s hard to fill open positions, and even harder to retain talent for a significant amount of time. Allen Engineering has found that its involvement in second-chance employment creates loyalty and attracts more employees than the company could ever have expected.
From the on-site chaplains, who are familiar with the faith-based addiction recovery programs that many employees in recovery work with, to lunchtime accountability groups at work, Allen Engineering is putting in the work to make sure employees are on-track while simultaneously chipping away at the industry labor shortage.
There is an increased sense of loyalty to Allen Engineering among those who are employed and in recovery – Allen has talked to many employees personally who have seen a positive ripple in their lives as a result of their second-chance employment. The opportunities they receive and the support that is provided to keep them sober allows for many to get custody of their children again, reunite with their loved ones, and gives them a stable base on which they can build their lives.
Going Above and Beyond to Uplift Employees
In addition, Allen Engineering has created a program called AEC Cares, which works with the local church to assist employees with their financial struggles. The company never gives out cash, but it will pick up a bill for employees if they are unable to make rent, pay their utility bill, or need car repairs that they can’t currently afford in order to get to and from work. Associates get one opportunity per year to take the company up on their offer of financial assistance. It can’t be over a certain amount of money, and employees must go through financial counseling to address the root of the issue. Allen says that this is in order to give them a ‘hand-up’ instead of a handout, create positive change in their lives, and avoid situations like this in the future.
“Especially with recovering addicts, it’s important that we address any underlying issues that may lead employees to take out payday loans or slip into bad habits,” said Allen. “Being family-owned allows us a lot more flexibility to incorporate these programs into our business. We can take a long-term view on the value that these programs will provide down the line, instead of thinking quarter to quarter.”
These programs are paying off, without a doubt. Nowadays, Allen doesn’t have to advertise to get new hires. They’re now well-known in the community as a second-chance employer, and they have a great referral program, which are the sources of the majority of their employees. The company also has many long–tenured employees, who have been with Allen Engineering for ten, fifteen, or twenty–five years, which is impressive for a smaller–scale company of around 160 people.
Throughout the years, Allen Engineering has evolved with the times, and continues to find innovative ways to serve its customers and take care of its employees. The company encourages others in the equipment manufacturing sphere to get involved in their communities and give being a second-chance employer a shot, to address both their own labor issues and to help others out while doing it.
“As a smaller company we realize that we have to work a little bit harder than everybody else to be able to stay independent, family-owned, and American-made. And I think we’ve found some tactics that allow us to retain good talent and keep making quality products,” said Allen.
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