Employee retention is an issue for most businesses—especially in the construction field. If you want to keep your employees, show them respect, be grateful and give thanks, offer better benefits and perks, and provide growth and learning opportunities.
What’s the problem?
Experts say there is a serious shortage of workers in construction, which is impeding productivity and growth in the sector.
With wages stagnant in some areas, even among unions whose pay rates haven’t risen equally on pace with inflation, workers’ dollars just don’t buy as much as they used to. It’s disconcerting and often leads employees to consider finding greener pastures.
According to some sources, even with foreign-born immigrants swelling the ranks of the industry by upwards of 30 percent, there remains a need for hundreds of thousands more workers in construction. Some even suggest this lack of available workers is holding the industry back from greater success.
How to improve employee retention
Keeping workers content and willing to work starts with respect. Companies that don’t value their employees experience poor morale, and workers are unhappy and unproductive. Plus, employees feel trapped in a competitive market where new jobs are few and far between.
Contractors must be able to build a competitive business that can pivot with market changes and plan for growth while retaining and attracting dedicated and skilled workers.
There’s more that can be done to achieve this goal, but contractors must be willing to seek advice.
To attract and retain good workers, you need to treat them well and show them respect. Treat them as humans and recognize their success is your success. A company is only as good as its employees.
While talking recently with a semi-retired union-trained insulator, I asked him how his bosses treated him. He laughed at the question, saying: “My boss treats me great.”
I’d gleaned as much and more in my past conversations with this old friend, so I pried a bit more. “Does your boss ever give you a bonus for doing a good job?”
“Of course. All the time,” he said.
It turns out that his current employer gives him an extra day’s pay as a bonus pretty frequently, simply in gratitude for a job well done. The boss pays him well and also buys him lunch often, too. He treats his employees with respect and gives him an “Attaboy” often to thank him for a job well done.
In addition to frequent praise, this employee has received gas allowances to help offset the cost of a long commute. Bonuses like these are a regular thing for him, and he was surprised that anyone would take note of them.
When employee respect and value are commonplace within a company, worker retention levels are likely to be higher.
The bottom line: Fair payment, value and respect, and job stability are the forces driving employee retention.
4 factors that improve retention rates
Solving the employee shortage in construction doesn’t have to be difficult. Here are a few tips to retain employees and prevent a worker shortage:
1. Respect. Treat all workers with dignity and respect. Everyone plays a valuable role in the workplace, and despite outside problems, workers show up and put their best effort forward—and that should be recognized.
2. Gratitude and thanks. Something as simple as “great work today” speaks volumes to employees. People who feel their work is valued are more inclined to work harder and be happy doing it. Recognition and thanks for their effort inspire loyalty and dedication in workers. People need to know their work is valued—and valuable.
3. Offer perks. Whether mileage payouts, lunch, or a year-end bonus, investing in the happiness of your employees is a direct investment in your company. Small actions can have a big impact.
4. Growth opportunities. Retaining workers is tricky, but retraining good workers is even trickier. If you want them to stay, incentivize them. Offer learning or training opportunities, better pay, or equity in the company. When employees have a reason to stay (and they’re happy doing their job), they will.
