The construction industry has one of the highest employee turnover rates of any industry. For people who work or have worked in construction, the reasons are obvious: inadequate pay and a lack of consistent work. Poor treatment by employers and few training opportunities can also lead employees to look elsewhere.

Discrepancy between worker pay and inflation

Low pay isn’t just relegated to the construction industry—it’s widespread. As inflation increases, companies can’t keep wages on pace, leading to unhappy and underpaid employees.

A construction union I worked with in 1985—I made an hourly rate of $12.90 then—has lost $5/per hour in earnings on its union scale wage over the past 39 years. I called my old friend Jerry, who has worked in this union for decades, to find out how much members are currently making.

Rather than keeping up with inflation and paying a wage of $37.25—the equivalent to a 1985 wage of $13—they’re paying $32.25/hour.

That’s a union job, among the best-paid. They’ve lost $10,000 a year in wages for a full-time worker—and that’s if their pay had kept up with inflation, not surpassed it.

Smart workers are asking employers to show them the money. 

Unlike many workers, Jerry found steady work and fair treatment with a regional contractor that pays him more than the union scale. However, the construction industry, in general, is notorious for poor pay, with some earning as little as $12 to $16 per hour.

How to solve the worker retention crisis

When it comes to retaining employees in the construction industry, the answer is to address the problem of insufficient pay and take action.

The construction industry is primarily composed of immigrant workers. It’s estimated that about 25%—maybe even 30% or more, depending on the source—of workers are non-native North Americans (that 30% represents 3.3 million workers), many of whom are here illegally. 

Here’s the problem: Most people fail to realize that a high percentage of immigrants comprising the workforce heavily dependent on a single sector (construction) press wages down in that sector. Most companies also don’t realize that relying on foreign workers to fulfill labor scarcities isn’t a wise idea.

Roughly seven million illegal immigrants have entered the U.S. during President Biden’s term, many of whom are working in construction. They are illegally competing with native workers and with those who’ve immigrated and have a clear right to work in the U.S. But competition is competition; regardless of your work field, you must compete to succeed.

If employees want to improve their ability to earn and even stay with a company they work with, there’s a simple solution: take a systematic approach to improving themselves. 

Here are four steps to do it.

4 steps to become a better employee

1. Consider your options

To retain your job, you need to level up with other employees. Consider making your skills more competitive to increase your chances of being hired or recruited by a better-paying employer. 

Spice up your resume, invest in additional training, and ensure your employer knows what you bring to the table. People recognize your value when you demonstrate it to them and when you remind them of it.

2. Stick with good employers 

Large companies aren’t always the best employers. If you struggle to earn a decent wage with a large construction company, go small. Search for local companies hiring for a position that fits your skill set.

In my example above, Jerry found a steady employer in a regional contractor that does larger projects like utility line work.

3. Understand your value

Your work ethic and skillset are significant factors in determining your value as an employee. Understand what you bring to the company, and don’t be afraid to do more to increase your value. The more value you have as an employee, the higher wage you can request. 

4. Expand your knowledge

Increasing your knowledge and training is priceless. Look for opportunities to expand your knowledge; if you can’t find them, ask for them. Education and training go a long way in the construction industry—and it sets you apart from the crowd.

However, retaining good workers in the long term is a two-way transaction. Diligent, skilled, and trustworthy employees are not easily replaceable and should be recognized. If you want to retain hard-working employees, give them opportunities to grow by encouraging regular training programs, continuing education, and more. 

3 tips for employers to consider to retain high-level employees 

1. Provide good pay and consistent work

Construction can be seasonal, which doesn’t bode well for employees looking for consistent, year-round work. But if you want to retain good employees, you must plan for work, plan to grow, and diversify your company to meet new challenges.

2. Offer training opportunities

Most construction workers want to expand their knowledge to advance their careers—provide them with opportunities. A company that’s not growing won’t offer such opportunities.

3. Don’t whine, act

While most employees understand that companies have budgets, retaining good employees comes down to paying them a fair wage. If an employee requests a pay upgrade, don’t brush it off the table—seriously consider it. 

Final thoughts

The problem of retaining employees might be that there aren’t enough construction companies willing to pay employees decently. If more did, this problem of too few workers might completely disappear.

Provide workers with the wages, training, and the steady work they need. Treat them as valued team members; they will produce and stay with you.