The hidden costs of high turnover are especially impactful in construction. The ongoing skilled labor shortage affects more than just hiring, onboarding, and training expenses.
Implementing strategies to increase employee retention helps reduce the hidden costs of turnover. Strengthening the bottom line supports business growth.
Discover the hidden costs of high turnover and how to avoid them.
Institutional Knowledge
High turnover contributes to the loss of institutional knowledge needed to consistently create quality construction work. Reduced quality control contributes to rework, project delays, and increased expenses. These factors lower client satisfaction, revenue, and the bottom line.
Time Needed to Fill Vacancies
Finding qualified talent to replace departing employees can take weeks or months. In many cases, team members have to pick up the slack.
Taking on additional job duties and responsibilities for extended periods can increase employee stress, absences, and burnout. These factors lower productivity, job satisfaction, and employee morale. The results can include missed deadlines, project delays, and reputational damage.
Company Reputation
A construction company’s reputation impacts business longevity. Clients depend on the company to deliver quality work on time and according to budget. Reaching these targets is challenging with inadequate project staffing.
Dissatisfied clients can share their experiences online and discourage others from conducting business with the construction company. Negative company reviews can create a lack of trust and reliability, encouraging clients to hire other companies to handle projects.
Overcoming a construction company’s negative reputation can be difficult. Losing its competitive edge can stall business growth.
Strategies to Reduce Employee Turnover
These strategies help increase construction employee retention:
Develop an attractive culture
Build a positive company culture that supports employee connection, collaboration, and respect. Encourage open communication and teamwork to strengthen employee engagement, job satisfaction, and morale.
Encourage work-life structure
Offer schedule flexibility and generous paid time off (PTO). Helping employees fill their personal needs encourages long-term tenure.
Provide professional development
Investing in employee development encourages long-term retention. Developing a stable, skilled workforce supports business success.
Offering ongoing training and development opportunities demonstrates employee respect and value. Regular knowledge and skill development encourage career growth and employee attraction and retention.
Offer career planning
Help employees map their career paths with the company. Include mentorship and training to help reach professional advancement goals.
Recognize and reward employees
Regularly point out specific employee contributions, results, and organizational impact. Include a bonus, pay increase, or promotion when relevant. Employees who feel valued and appreciated typically maintain company loyalty.
Conduct stay interviews
Regularly engaging in employee stay interviews helps uncover what is going well, what could be better, and specific suggestions for improvement. Implementing the most effective ideas encourages employees to remain long-term.
Work with a Construction Recruitment Firm
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