When you’re hiring in the construction industry, you’re always looking for people with one trait above all others: reliability.
Everyone on your team needs to get things right first time, every time. It’s not just the on-site staff but all of the important office teams, such as admin, finance, legal, logistics, and IT, too.
Staff turnover is a serious detriment to reliability. It’s hard to have 100% confidence in your team if your best people are constantly leaving to seek out other opportunities. Unfortunately, this is a common problem for many construction firms. But there are ways you can reduce attrition rates and hold onto your best people.
Why do construction companies have trouble with staff turnover?
The construction industry faces some unique challenges related to long-term employee retention. Some of the most common issues include:
- Seasonal and project-based work: Many construction jobs are tied to specific projects, leaving employees uncertain about their long-term prospects.
- Limited career progression: Some organizations don’t fully commit to professional development and career pathing. This can cause employees to have concerns about their long-term futures.
- Workplace culture: Construction sites can sometimes foster high-stress environments or lack inclusivity, making it harder to build a sense of belonging.
While these challenges are significant, they’re not insurmountable. By adopting a proactive approach, construction companies can create a work environment that attracts, engages, and retains top talent.
5 ways construction companies can improve employee retention
While construction employers face some unique challenges, the solutions often apply to all industries. Essentially, employees tend to stick around when they feel respected, rewarded, and on the right career path. A HR strategy that encourages this culture can make it easier to retain your best people. Here’s how.
1. Offer professional development opportunities
Investing in your employees’ growth is one of the most effective ways to show them they’re valued. Professional development not only enhances skills but also fosters loyalty by demonstrating a commitment to their long-term success.
- Training: All employees should learn new skills, especially if new technology is relevant to their role. Be sure to allocate time for opportunities to grow and learn.
- Career pathing: Clear career pathways help employees understand how to progress within your company. Whether they’re moving from laborer to site manager or transitioning into office-based roles, a roadmap can motivate employees to stay and grow with you.
- Focus on both on-site and office staff: Don’t overlook the importance of developing your office-based employees, such as project managers, estimators, and HR staff. A holistic approach to professional development ensures that every team member feels supported.
2. Promote a positive workplace culture
A strong, inclusive culture can be a game-changer when it comes to retention. Employees who feel connected to their team and aligned with the company’s mission are likelier to stay.
- Team building using digital tools and regular meetups: Construction teams are often spread across multiple sites, making it challenging to foster camaraderie. Use digital tools like Slack or Microsoft Teams to keep communication flowing and organize regular in-person meetups to strengthen relationships.
- Shared mission: Articulate a clear mission that resonates with your employees. Whether it’s building sustainable infrastructure or improving local communities, a shared sense of purpose can inspire loyalty.
- Diversity, Equity, and Inclusion (DEI): Make inclusivity a priority by creating a workplace where everyone feels valued, regardless of their background. DEI initiatives can include mentorship programs, unconscious bias training, and policies that promote fair hiring practices.
3. Offer competitive rewards
Compensation and benefits are foundational to employee retention. If your rewards package isn’t competitive, you risk losing talent to competitors who are willing to pay more.
- Pay benchmarking: Review industry salary data regularly to ensure competitive pay rates. Transparent communication about how salaries are determined can also build trust with your team.
- Benefits: Go beyond the basics by offering benefits that matter to your employees. Health insurance, retirement plans, and paid time off are essential, but consider adding perks like wellness programs or tuition reimbursement.
- Remote work: While remote work may seem challenging in construction, it’s possible for certain roles, such as project management or administrative positions. Offering flexibility where feasible can make your company more attractive to top talent.
4. Listen to employee feedback
Understanding what your employees need and want is critical to improving retention. Regular feedback loops can help you identify pain points and address them before they lead to turnover.
- Use digital tools to run surveys: Engagement surveys are powerful tools for gauging employee sentiment. Ask about job satisfaction, workplace culture, and areas for improvement.
- Get manager feedback from one-to-ones: Managers are often the first to notice when an employee is disengaged. Encourage regular one-on-one meetings where managers can provide feedback and gather insights from their team members.
- Hold team meetings where possible: While construction teams may be dispersed, try to bring them together for team meetings whenever feasible. These gatherings provide an opportunity to share updates, celebrate successes, and address concerns.
5. Be clear about future opportunities
One of the biggest challenges in construction is the uncertainty that comes with project-based work. Employees who don’t see a future with your company are more likely to leave.
- Acknowledge the seasonal nature of work: Be upfront about the cyclical nature of construction projects and reassure employees that you’re committed to providing stability where possible.
- Share details of upcoming projects: Keep employees informed about future projects and how they might fit into those plans. Transparency can help alleviate concerns about job security.
- Maintain good relationships with outgoing employees: Not every employee will stay forever, and that’s okay. Treat departing employees with respect and maintain positive relationships. They may return in the future or refer other talented workers to your company.
Build a retention strategy that works
Improving employee retention in the construction industry isn’t about quick fixes—it’s about creating a sustainable strategy that prioritizes your people. Start by analyzing your current retention challenges, gathering employee feedback, and identifying areas for improvement. From there, consider the strategies above to create a workplace that employees are proud to be part of.
Ready to take the next step? Schedule a no-obligation consultation with one of our HR experts today. Let's talk about how to build a team that stays for the long haul.
