By Patrick Hogan, handle.com
Labor shortage is one of the biggest challenges for the construction industry. Construction companies are struggling not only to hire new blood but also to keep and retain their current labor force.
There are various reasons why construction workers easily quit and jump ship to other companies. Beyond the drive to seek higher payment and a more manageable workload, there are also other factors such as the lack of appreciation or the absence of reliable supervision.
Companies need to understand the reasons why their employees are leaving. Otherwise, you will end up with a high employee turnover rate, which can be costly and inefficient. Companies also need to think long-term and find ways to retain their best people. Below are just some of the things you can do to promote high employee retention in construction.
1. Provide and ask for feedback regularly
To show your construction employees that they are more than a cog in the machine, you need to regularly provide them meaningful and constructive feedback. Consider setting quarterly or annual evaluations in which your employees and their respective managers discuss the employees’ performance.
During regular evaluations, the employees should receive genuine feedback on their job performance. If they are doing well, be sure to tell them that. Also, make sure that you provide constructive comments so the employees also know what they can improve on.
The evaluations should also be open for the employees to provide feedback. Be sure to take note of the employees’ feedback and act on them as necessary.
2. Prioritize internal employees when hiring for open positions
To demonstrate that you value your employees, you need to promote internally instead of hiring external candidates for higher positions. Internal upward mobility delivers a highly encouraging message to your current employees. When you promote from within, you essentially communicate to your workers that you value their work, and you are willing to reward the best workers.
Promoting from within also inspires employee engagement. It is easier for employees to work harder and feel positive about what they do if they know that the company has plenty of opportunities for them to succeed.
3. Provide personal and professional development training
To show that you are invested in your employees’ success, you can provide them opportunities for growth, including free courses for personal and professional development. When you encourage your employees to grow and learn, they are more likely to feel valued.
Professional development training is also a good way to identify which of your current construction employees have the potential and the skills to take on other responsibilities. For example, construction employees with natural leadership abilities can benefit from leadership training.
4. Offer competitive salaries and comprehensive benefit plans
While salaries and benefits are not the only factors that prevent employees from staying in their current construction jobs, they sure play a big role. If you want to keep your employees, you need to offer competitive pay and comprehensive benefits.
A salary that is below market average and is not commensurate with the amount of work being done can easily dampen the morale of an employee. The same applies to benefit packages with minimal coverage.
An employee who sees a job posting that offers higher payment may not even think twice about switching. Note that there is also an ongoing labor shortage in construction, and so it is very easy for companies to poach experienced construction workers from other businesses.
5. Show appreciation and share their achievements
Showing appreciation to your current employees can be done in many ways. You can offer annual salary increases in proportion to the workers’ performance. You can verbally acknowledge and thank them for their good work not only during one-on-one conversations but also during meetings with the entire team.
Sharing an employee’s achievements with the team can make them feel valued and validated. It also promotes a positive work culture in which good work is publicly acknowledged and appreciated.
6. Plan a career path for your employees
To retain your construction employees, you also need to make them feel that they are important assets to the company. You do not want to make them feel disposable and replaceable. Instead, you want to let them know that you are invested in their success within the company.
Ask your employees what their career plans are, and make sure to provide the opportunities that can help them succeed. Foster a positive manager-employee culture, so your employees are not afraid to communicate their desired career paths. Keep in mind that the success of your employees will also translate to the success of the company as a whole.
About the Author
Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.
