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Just Hire more Graders

30yearsofdiamonds

Shiny_Rock
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There was an announcement that just came out on JCK Magazine and on IDEX Online about GIA Carlsbad hiring 80 more graders over the next year. As we all know the turnaround time for diamond grading is stifling. Here is my humble opinion on how hiring more graders will or will not change the turnaround time;

For as long as I can remember I have heard the Diamond Trade say ”Just hire more diamond graders” The truth is it’s not that easy and not the full remedy to the long turnaround time. My experience in the lab for over two decades suggests otherwise.

First, let’s talk about the” Just hire more graders”. New graders are not available for the picking they have to be trained to diamond grade. Even those that come out of the GIA GG program do not know how to grade as a laboratory diamond grader. Back in the mid 80’s I along with others helped produce a formal training program. I spent almost three years training newly hired trainee diamond graders. I sat with no more than ten at a time but six to eight was more ideal. We spent three months, eight hours a day learning every aspect of grading. From microscope usage and louping ability to polish, symmetry, plotting, clarity assigning, girdle thickness, culet size and so on. The trainees graded diamonds that were submitted by clients and had already been graded by the regular graders, thus holding them up for return, for at least a week, unbeknownst to the client. After three of training the trainees that made it this far were now allowed to be within the lab population and were known as preliminary graders. Back then when plotting was more manual, meaning pen and paper, some new preliminary graders could only finish 12-15 diamonds per day, and if you could do 20 you were considered to be above average. My last words to the new graders going into the lab was that it takes from three years or more before you have graded enough diamonds of various qualities before you have a chance at being a good to excellent grader. What that means is that at 2o stones a day for three years a grader will have graded almost 15,000 diamonds, but if they were only averaging 15 a day then it would take 4 years to get to 15,000 graded diamonds.

In addition to the lack of fire power a new grader brings to the lab they also create a burden to the secondary graders or the “Double Checkers” as they are known. These are the next level of experienced graders that check the Preliminary Graders work. The burden is due to mistakes and feedback required when checking new graders work, which in turn slows the Double checkers output. So, as you can see hiring new graders doesn’t actually speed the process up, it may actually slow things down, for awhile!

Keep in mind that the new graders do not do any color grading until they have mastered the Art of diamond grading, which as I said could take years.

That brings me to the other grading skill- D-Z color grading and this is where the turnaround time suffers the most.
Let’s create a theoretical diamond grading lab. Using the process and different levels of grading established at the largest lab available here is how the distribution of graders might be;
500- Preliminary Graders; these are the least experienced graders that do all the initial grading accept color on a submitted diamond. Let us assume that each one of these graders can complete 20 diamonds a day in an 8 hour day, 5 days a week. That means that they will finish 10,000 diamonds per day. That means 10,000 diamonds per day need to be checked by the next level of diamond grading experience which are the double checkers.
250- Double checkers; this is the amount of double checkers needed in order to check 10,000 preliminary graded diamonds per day as long as each double checker can do 40 per day. For simplicity sake let’s pretend that all 10,000 diamonds have agreement on polish, symmetry and clarity at this point,(this does not happen).
Quality Assurance Graders- to do 100% QA, the lab would need another 166 graders that are at a level of checking over the final results for polish, symmetry and clarity, at a rate of 60 per day.
At this point the lab requires between 900 and 1000 graders. Now let’s look at the backlog, all these stones need to be color graded. Not everyone in the lab is taught or even allowed to color grade and it is usually a task designated to double checkers and above. Regardless, the lab still needs these graders to spend some time color grading. Most graders that color grade do so for one hour a day and are given 50 diamonds to color grade at a time. This can be done as a team or split up as individuals but as a team is more efficient. It takes an hour to do 50 as a team. At that rate, 10,000 diamonds per day would need 25 individual D-Z diamond master sets for 50 color grading graders to sit at for 1 hour times 8 hours in a day. That would utilize 400 individual color graders. In reality a consistent team of color graders will agree on the same color about 80% of the time. That means for each set of 25 master sets every hour there will be 250 diamonds that are a split color grade and will need a third color grader to input a color grade. That will bring the total for the day of an additional 2000 diamonds that will need a third color grader. That means that we would need an additional another 40 color graders and an additional five master sets running 8 hours a day for split grades to be completed.

It takes months to find and complete a D-Z master color grading set at the level that an important grading lab would need. It can be done. But graders aren’t robots and fatigue sets in, absences, vacations etc. No one can keep this kind of pace up.

So back to my first sentence, Why not just hire more graders? Well, a lab can have thousands of diamond graders but they can only return per day the total amount that they can color grade and in my opinion it is well short of the above scenario. If such a large company would be more transparent to how diamonds flow through the lab and how many man hours it takes for each process we would understand that just hiring more graders will not make a difference with backlog.
 

heididdl

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Re: Just Hire more Garders

:o :appl: :appl: :appl: :appl: :appl:

Being through an outside grading school American School of Jewelry Diamond grading course which was only a 3 week starter class. I know what it is just to see the tip of the ice berg of learning to be a GIA certified grader.

So I applaude your statement and agree......That being
 

diamondseeker2006

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Re: Just Hire more Garders

Very interesting and informative, Dan!
 

30yearsofdiamonds

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Re: Just Hire more Garders

If only I could edit the title to Graders, instead of Garders, LOL.
 

Texas Leaguer

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Re: Just Hire more Garders

Really eye opening stuff. Thanks for taking the time to map this out Dan. I think it gives a new appreciation and understanding of some of the growth pains GIA has been going through lately.

Whether you call them graders, garders or gardeners, learning to grade diamonds accurately is not a snap-your-fingers proposition!
 

bcavitt

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Re: Just Hire more Garders

I understand that these are entry level positions, but at the stated pay level of $14 - $15.56 per hour seems low for the cost of living in the Carlsbad/San Diego area.
 

30yearsofdiamonds

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Re: Just Hire more Garders

The pay has been an ever on going problem. Talented graders would often leave when they would see the disparity of salaries if they were to compare themselves to an average "experienced" time-wise grader. Average graders stay on and on and eventually a staff of average graders can be the result
 

Rockdiamond

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Re: Just Hire more Garders

Great post Dan!! You've laid it out pefectly.
The art of grading does take years to master, and not many people understand this.
A problem I encounter frequently is people that have been led to believe that a GG diploma on the wall means that the GG can actually grade diamonds- which is rarely the case.

And here I thought they just needed to gard them better-

Definitely no easy GIA solutions coming soon
bcavitt's point is a very good one.
Many of the more experienced grades leave due to this situation too.
Now with EGL on the ropes, we're looking at a worsening situation, rather than an improving one....
 

denverappraiser

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Re: Just Hire more Garders

Hi Dan,

Great information. Thanks. If I might ask, why does the lab only operate 8 hrs a day?

Paying better sure seems like it would solve several problems, first and foremost of which is the turnover but also the burden you describe on the second tier of graders who have to deal with less than excellent work ahead of them. As you point out, it takes years to train someone with the appropriate skills and it's not really possible to hire someone who has already been trained on someone else's dime. That makes the real cost of 'short time' employees pretty high. The usual solution for similarly large companies with this problem is to pay 'em low during the orientation period where it's not quite so expensive if they move on, but pay the trained and skilled workers well enough that they stick around for the retirement program.
 

30yearsofdiamonds

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Re: Just Hire more Garders

They recently added a second shift with a smaller staff. They sit at the first shifts desks and switch microscope pods.
 

denverappraiser

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Re: Just Hire more Garders

I’m not all that sympathetic to their issues. This is a management problem, and what they’re talking about is managing intellectual capital. It’s something companies have wrestled with forever and a huge amount of thought has gone into it.

For starters, they could TRIPLE their capacity using the same tools by simply running 3 shifts. ‘Only’ running 2 shifts leaves plenty of time for cleaning and maintenance people to do their magic. Even at 3 shifts it can be done, there’s 168 hours in a week and 3 full time shifts only works 120 so things are still idle 28% of the time, but that’s getting to a pretty tight schedule. The excuse that it’s too hard to get master stones rings hollow. They’re ignoring most of their capacity already. They don’t need new master stones, they need a new schedule.

I don’t actually know the turnover rate for GIA but my understanding is it’s pretty high, and the biggest exit complaint is the pay. If it takes 3 years to get someone up to speed and they’re paying them $30k, this means they’ve got $90k invested in their training before peak value kicks in. It actually more because they have to provide them space, pay taxes, insurance and so on, and also pay the people who are training them. We’ll call it $150k per employee invested in this intellectual capital. If that’s walking out the door because they’re unwilling to pay market wages, they’re nuts. If the average employee only lasts 5 years (and I wouldn’t be surprised if it’s actually less than this), that’s a premium of $75k/year for the two good years they get out of them! Yes, there’s value coming during that training period too but, as you point out, comes at a cost to rest of the staff as well as lower productivity and increased risk of errors. Stretching that 5 year turnover to 25 does wonders. It saves money as mentioned above but it allows the trainers to be working at replacing that staff that retires, dies, or at least leaves for some good reason rather than replacing folks who left because they found market wages elsewhere. Keeping 1,000 people on a staff with a 5 year turnover means 200 new recruits every year. That drops to 50 if the typical worker stays around for retirement. $150k x 150 workers per year is pissing away more than fifty thousand dollars a DAY in the name of saving money on cheaper wages. Paying better wages would also vastly increase the enthusiasm for working that second shift by the way. How about pay double for people working second shift? Bet’cha that would generate a flood of people who would happily switch over and the day shift would suddenly become the one that's hard one to fill.

More staff equals faster turnaround, and faster turnaround would increase business. Customers are walking away who could be kept, even customers who would be willing to pay higher prices. It would also reduce insurance costs by reducing the value of the contents of the vault and improve the company reputation. Since they’d be using the same facility, fixed costs like equipment, maintenance, rent, security and so on would remain basically the same. Marginal profits for the ‘next’ 10,000 stones per day would be enormous, even if they doubled the wages.

This is not a new problem. It’s not like they’re suddenly buried in work and they haven’t had time to get a class through the training program yet. It’s been a major issue for decades. It’s time. They need to deal with it. They can. They should. They must.
 

Texas Leaguer

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Re: Just Hire more Garders

denverappraiser|1421876968|3820076 said:
I’m not all that sympathetic to their issues. This is a management problem, and what they’re talking about is managing intellectual capital. It’s something companies have wrestled with forever and a huge amount of thought has gone into it.

For starters, they could TRIPLE their capacity using the same tools by simply running 3 shifts. ‘Only’ running 2 shifts leaves plenty of time for cleaning and maintenance people to do their magic. Even at 3 shifts it can be done, there’s 168 hours in a week and 3 full time shifts only works 120 so things are still idle 28% of the time, but that’s getting to a pretty tight schedule. The excuse that it’s too hard to get master stones rings hollow. They’re ignoring most of their capacity already. They don’t need new master stones, they need a new schedule.

I don’t actually know the turnover rate for GIA but my understanding is it’s pretty high, and the biggest exit complaint is the pay. If it takes 3 years to get someone up to speed and they’re paying them $30k, this means they’ve got $90k invested in their training before peak value kicks in. It actually more because they have to provide them space, pay taxes, insurance and so on, and also pay the people who are training them. We’ll call it $150k per employee invested in this intellectual capital. If that’s walking out the door because they’re unwilling to pay market wages, they’re nuts. If the average employee only lasts 5 years (and I wouldn’t be surprised if it’s actually less than this), that’s a premium of $75k/year for the two good years they get out of them! Yes, there’s value coming during that training period too but, as you point out, comes at a cost to rest of the staff as well as lower productivity and increased risk of errors. Stretching that 5 year turnover to 25 does wonders. It saves money as mentioned above but it allows the trainers to be working at replacing that staff that retires, dies, or at least leaves for some good reason rather than replacing folks who left because they found market wages elsewhere. Keeping 1,000 people on a staff with a 5 year turnover means 200 new recruits every year. That drops to 50 if the typical worker stays around for retirement. $150k x 150 workers per year is pissing away more than fifty thousand dollars a DAY in the name of saving money on cheaper wages. Paying better wages would also vastly increase the enthusiasm for working that second shift by the way. How about pay double for people working second shift? Bet’cha that would generate a flood of people who would happily switch over and the day shift would suddenly become the one that's hard one to fill.

More staff equals faster turnaround, and faster turnaround would increase business. Customers are walking away who could be kept, even customers who would be willing to pay higher prices. It would also reduce insurance costs by reducing the value of the contents of the vault and improve the company reputation. Since they’d be using the same facility, fixed costs like equipment, maintenance, rent, security and so on would remain basically the same. Marginal profits for the ‘next’ 10,000 stones per day would be enormous, even if they doubled the wages.

This is not a new problem. It’s not like they’re suddenly buried in work and they haven’t had time to get a class through the training program yet. It’s been a major issue for decades. It’s time. They need to deal with it. They can. They should. They must.
I hope officials from GIA are reading this.
 

Modified Brilliant

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Dan, Thanks for this informative post. What is the average career longevity of a grader at GIA? Does GIA have a recommended age of retirement? Are there safeguards in the work place to reduce eye strain, fatigue and burn-out? An inquiring appraiser would like to know. Thank you.
 

30yearsofdiamonds

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I cannot answer what the longevity of the average grader is as I have been away from the lab for 10 years although still in contact with many long timers. While I was there I saw hundreds of graders quit within the first 5 years. The benefits are good and the long term benefits such as a 401K plan is an incentive. If you are good at grading and have the knack for it, the job is pretty easy and promotions to a higher grading level and salary level will help retain staff. If you struggle with quantity or quality it can be pretty unrewarding. Graders are judged on these two categories with regard to levels of promotion and salary.

Years ago many of the best diamond graders were moved into non grading positions as the company expanded, unfortunately it depleted the lab of very experienced graders and due to attrition, finding qualified replacements was sometimes found out of necessity rather then qualifications. Over the course of my career I saw the gap between the best and the newest graders expand from a few years to 10 years to 20 years. In the end there were never enough really excellent graders to fulfill the job of strict Quality Assurance.

I would guess the same thing is still happening there today just on a much larger scale. When a new lab is opened in any other part of the world and it is employing hundreds of graders, there is a strain put on the two original labs to monitor the grading and how is that done? It is done by sending a small army of some of your best graders for a length of time to help the new lab grade like the company expects them to. That in turn can create a shortage of experienced needed graders in the two original labs.

I never felt any eye strain with the use of the microscope. Graders were only scheduled for a one hour session of color grading which was more intensive of a light source on the eyes.
 

jerichosmom

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Sep 23, 2008
Messages
241
I dropped off my diamond in person in Carlsbad on January 8 and it was graded and sent out by the 16. Not counting the day it was dropped off since it was after 3pm, one week turnaround isn't bad. That's 1/2 of the time that was quoted on their website and in person. I don't know what the turnaround was in previous years but whatever they're doing now to speed up the process, it's working.
 
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