4 ways to stem the tide of employee turnover
We all know that, in terms of tangible dollars and intangibles such as productivity and morale, employee turnover is costly for any construction business. And the problem isn't going away - contractors will have to recruit 200,000 to 250,000 workers annually to mitigate staff departures and retirements, predicts the National Association of Home Builders.
As the construction industry continues to flounder in the depths of a labor shortage, here are four ways to help stem the tide of employee turnover:
1. Offer competitive compensation and benefits. If you're not offering base compensation, pay increases and benefit options that are in line with construction industry averages, you're running the risk of losing valuable workers to greener pastures (real or imaginary).
A profit-sharing plan might be one way to up the ante, rewarding employees for their hard work during especially profitable years. And though expensive, benefits are usually a worthwhile investment for employee retention and recruitment purposes. Most packages include some combination of a retirement plan; paid time off; and medical, vision, dental, disability and life insurance.
2. Implement a training program. Two top employee retention initiatives being undertaken by contractors today are training and cross-training. (Safety is a particularly significant area on which to focus.) Boosting employees' knowledge about their jobs (and those of others), which could help advance their careers, is a great investment.
Just make sure your managers are on the same page regarding the value of this initiative. One negative remark about an employee taking time for training might dissuade that worker from pursuing any further opportunities - and that bad morale could spread like a virus throughout your company.
3. Promote work/life balance. Employees like to know that their employer recognizes the importance of spending time with families and friends and on personal endeavors. In fact, whether your business culture values work/life balance can make or break many workers' willingness to stick around.
Of course, "balance" can mean different things to different people. Some employees value broad vacation and time-off policies, while others want on-the-job options such as telecommuting, job sharing and flextime. Obviously, you need to do what's best for your construction company, but regularly considering your options in this area can help ensure you're doing all you can to retain good workers.
4. Improve company communication. To create a positive work environment, you need to keep your entire staff- from senior management to the newest on-site laborer - informed about what's going on with the company. No matter how busy you get, take the time to schedule quarterly or monthly companywide meetings to discuss goals, current and upcoming projects, successes, and challenges.
If such meetings aren't logistically possible, try conference calls or smaller gatherings. Nurturing a sense of company ownership among employees will help instill loyalty.
Granted, you may not be able to exert a monumental effort in all four of these areas. If so, choose the weakest one and commit yourself to making an improvement. You've got to start somewhere - your construction company's future depends on it.
