Employee turnover is a major challenge in the construction industry, especially when it comes to your skilled tradespeople. High turnover doesn’t just disrupt your project timelines; it also drains your resources. The time and money spent on hiring, training, and trying to replace your top talent can be a huge burden. In fact, the cost of replacing an employee can range from 50% to 200% of their annual salary, depending on their role. So, why are your best workers leaving, and what can you do to keep them? In this post, we’ll break down the real reasons your crew might be quitting and how you can take action to retain your team—saving you time, money, and maintaining the quality of your work.
If your crew feels like they’re just another number on the payroll, they’re likely to start looking for other opportunities.
Workers want to know their hard work is valued. If you’re not recognizing their contributions, don’t be surprised if they start seeking employment elsewhere.
Think about that skilled tradesperson who consistently delivers high-quality work on every project. If you never acknowledge their efforts, they may begin to question why they’re putting in so much effort. A simple “thank you” or recognition during a team meeting can go a long way in boosting morale and loyalty. Show your team you appreciate their hard work, and they’ll be more likely to stay with your company.
Gallup research shows that companies with highly engaged employees have turnover rates that are 59% lower than those with low employee engagement. By making your team feel valued, you can significantly reduce turnover and improve overall productivity.
Construction is a demanding job, but poor working conditions can make it unbearable. Whether it’s outdated tools, unsafe job sites, or inadequate breaks, these issues can lead to dissatisfaction among your crew. Ensuring a safe, well-equipped, and respectful work environment is crucial for retaining your team.
Picture your crew working on a site with outdated tools and insufficient safety measures. Over time, this takes a toll on their physical well-being and job satisfaction. They might start thinking about how much better it would be to work for a company that invests in quality tools and prioritizes safety. By regularly updating your equipment, providing proper safety gear, and ensuring job sites meet safety standards, you show your team that you care about their well-being, which can significantly reduce turnover.
The U.S. Bureau of Labor Statistics reported that the turnover rate in the construction industry was around 57.3% in 2020. High turnover like this can lead to project delays and increased costs, making it crucial to maintain good working conditions to retain your crew.
Tradespeople want to know they have a future with your company. If they feel stuck in the same position without any opportunities for advancement or skill development, they’re likely to look for a job where they can grow. Providing clear career paths, training opportunities, and the potential for advancement can help you retain your top talent.
Let’s say you have a young electrician on your team who’s eager to learn and take on more responsibility. However, if they feel like they’re just going through the motions with no chance for growth, they might start exploring other options. By offering opportunities for training, certifications, or leadership roles, you can show your tradespeople that they have a future with your company. This not only keeps them engaged but also strengthens your team as a whole.
In the construction industry, work can be seasonal or project-based, leading to periods of downtime. If your tradespeople can’t rely on consistent work and stable income, they may seek more secure employment. Offering steady work or at least providing a clear plan for the off-season can help reduce turnover in your construction company.
Consider a mason who relies on your company for their livelihood. If they experience long gaps between projects, their income becomes unstable, leading them to seek more reliable work. To combat this, you can offer year-round work by diversifying your services, taking on smaller projects during slow seasons, or providing a clear plan for downtime. This stability can make your company a more attractive place to work, reducing the chances of your tradespeople leaving.
High turnover rates can lead to losses in productivity and increased costs. A study by the Work Institute found that companies in high-turnover industries could lose up to $11 billion annually due to turnover-related issues. Offering stability can help you avoid these losses.
Poor management is a major factor in employee turnover. When tradespeople feel micromanaged, disrespected, or ignored by their supervisors, it creates a toxic work environment. Open communication, respect, and fair management practices are key to retaining your best workers.
Imagine a situation where a foreman is constantly criticizing a laborer’s work without offering constructive feedback or guidance. The laborer starts to feel frustrated and unappreciated, eventually leading them to quit. On the other hand, a foreman who communicates openly, listens to concerns, and provides constructive feedback creates a positive work environment where tradespeople feel supported and valued. This approach not only reduces turnover but also improves the overall quality of work on your projects.
The cost of replacing an employee can range from 50% to 200% of their annual salary. Good management practices can help retain your crew, saving you the significant costs associated with turnover.
Keeping your best workers isn’t just about reducing turnover in construction; it’s about saving time, money, and maintaining the quality of your projects. Every time a skilled worker leaves, you have to invest time and resources into finding and training a replacement. This can lead to project delays, increased costs, and potential quality issues. Retaining your top tradespeople allows you to maintain continuity, ensure consistent quality, and build a stronger, more reliable team.
Let’s say you’ve spent years building a team of skilled tradespeople who work well together and know your standards inside and out. When one of them leaves, you lose not just their skills but also their experience and understanding of how your company operates. Replacing them means starting from scratch with a new hire, who will need time to get up to speed. When you focus on retention, you avoid this disruption and keep your projects running smoothly.
Employee turnover in the construction industry is costly, but it’s not inevitable. When you understand why your tradespeople are quitting and take proactive steps to address these issues, you can create a work environment that attracts and retains top talent.
Recognizing your workers’ contributions, providing opportunities for growth, ensuring consistent work, and fostering good management practices are all key to reducing turnover. Not only will this save you time and money, but it will also help you build a strong, reliable team that delivers high-quality work, project after project. If you want to keep your best workers, start by making your company a place where they want to stay.
💡Curious what the experts say about retaining top talent? Watch my interview with Manja Horner about why your tradespeople are quitting.
