The construction sector is well-known for having excessive employee turnover, which presents substantial difficulties for businesses trying to have a steady staff. Maintaining personnel is only one aspect of employee retention; other goals include developing talent, encouraging loyalty, and guaranteeing organizational stability.
We will look at several important strategies for increasing staff retention in the construction sector in this post. It offers insights and strategies for companies looking to reduce turnover and enhance overall productivity.
Understanding the Challenges
It’s important to comprehend the particular difficulties with staff retention that the construction sector faces before looking at remedies. A Taylor & Francis Online study tried to find the reasons for employee turnover in the construction industry. It identified 51 drivers that were categorized into personal, organizational, job-related, and external influencers.
The most significant drivers were psychological conditions, personal behavior, work stress, physical requirements, poor work conditions, and poor organizational support. Additionally, the transient nature of construction projects and the prevalence of subcontracting can create instability for workers, leading to decreased job satisfaction.
How to Boost Employee Retention
Boosting employee retention in the construction industry can be challenging due to project-based work, physical demands, and sometimes seasonal fluctuations. However, there are several strategies that can help:
Prioritize Health and Safety
Given that construction workers are constantly exposed to a variety of risks, health and safety considerations are of utmost importance.
According to a study by the Bureau of Labor Statistics, in 2022, the construction industry had the second-highest rate of fatalities. It accounted for 1,056 fatalities, 11% more than in 2021. In addition, the number of fatalities rose from 12.3 per 100,000 full-time workers in 2021 to 13 in 2022. The most common events leading to deaths were slips, falls, or trips, and accounted for 423 (40%) of the total casualties.
Some common hazards construction workers face are exposure to chemicals and minerals. For example, TorHoerman Law states that exposure to polychlorinated biphenyls (PCBs) can lead to liver, brain, breast, and biliary duct cancers. It can also result in liver damage, immune system effects, endocrine system effects, birth defects, etc.
The onset of these conditions due to PCB exposure can exhibit numerous symptoms like skin issues, respiratory problems, eye membrane irritation, etc. Those who face these PCB exposure symptoms should consult with a physician immediately. Employers can help make workers aware of such health problems and be with them throughout the medical and legal procedures if required.
Invest in Employee Development
In this sector, funding programs for ongoing education and training is one of the best strategies to increase staff retention. Offering chances for career progression, certification courses, and skill development boosts employee morale and shows a commitment to their professional development.
Companies can offer on-the-job training, workshops, and tuition reimbursement programs to encourage employees to enhance their skills and knowledge. Development through these methods is one key motivator for keeping employees engaged in a company.
A McKinsey survey mentioned at the World Economic Forum found the same. The purpose of the study was to investigate the factors that contributed to the pandemic’s “Great Resignation” phenomena. The findings show that lack of career development and inadequate pay were the biggest reasons employees wanted to leave.
Promote a Positive Work Culture
A healthy work culture is critical to employee retention in every sector, but especially in construction. That’s because construction workers often face challenging conditions. Employee retention and satisfaction rates may be greatly impacted by cultivating an environment of mutual respect, cooperation, and appreciation.
Companies should prioritize open communication, recognize employee contributions, and create a supportive work environment where individuals feel valued and respected.
A positive work culture is also essential to attracting new talent, as finding them will become increasingly challenging. A National Public Radio article mentions that old construction workers are retiring faster than new ones can replace them. This will make hiring more costly and time-consuming, and only companies promoting a positive work culture will thrive.
Offer Competitive Compensation and Benefits
Attracting and keeping top personnel in the construction sector requires competitive pay and benefits. According to US News & World Report, the median salary made by construction workers in 2022 was only $40,750 per annum. Even the best-paid 25% of workers made only around $51,200. This is even lower than the average US income, which, according to USA Today, was $56,316 per year in 2022.
While salary is important, companies should also consider offering health insurance, retirement plans, and bonuses to incentivize employees to stay long-term. Pay packages may stay competitive and in line with employees’ expectations with regular wage evaluations and benchmarking against industry norms.
Frequently Asked Questions
How Can Construction Companies Address the Issue of Turnover Among Entry-Level Workers?
Addressing turnover among entry-level workers in construction organizations entails employing various techniques to increase job satisfaction while decreasing turnover rates. Providing thorough training programs to offer employees the required skills and knowledge improves their performance and develops a sense of investment.
What Part Does Corporate Culture Play in Keeping Employees?
Employee retention in construction organizations is strongly influenced by company culture. A pleasant and inclusive business culture that promotes employee well-being and develops a sense of belonging may significantly influence retention rates.
Employees are more likely to stay loyal to firms that make them feel appreciated, supported, and respected. As a result, establishing a culture that values collaboration, open communication, and mutual respect can improve employee happiness and retention.
How Can Construction Companies Retain Experienced Workers Nearing Retirement Age?
Retaining experienced workers nearing retirement age in construction organizations necessitates a specialized approach that recognizes their specific demands and preferences. Providing older workers with flexible employment arrangements, such as part-time or phased retirement options, can help them adapt to their changing priorities and lifestyles.
Providing mentoring and knowledge transfer opportunities helps experienced employees pass on their talents and insights to younger colleagues. This can help build a legacy and continuity within the construction firm.
What Are the Factors Influencing Employee Retention?
Various factors influence employee retention in construction organizations, including competitive remuneration and benefits, possibilities for growth, job satisfaction, work-life balance, and more. Employees are more likely to stay with companies that pay fairly and competitively and offer opportunities for learning and advancement.
In summary, increasing employee retention necessitates a diversified strategy that considers the particular demands and difficulties faced by professionals in this industry. By implementing these suggestions, businesses may foster a work atmosphere where staff members feel appreciated, encouraged, and inspired to stick around.
Ultimately, fostering employee retention benefits individual workers and contributes to the success and sustainability of construction companies in the long run.
