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Are your best workers leaving you?

6/8/2020

9 Comments

 
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Image by Rudy and Peter Skitterians from Pixabay
The construction industry is desperate for good experienced people. The situation for many contractors is exacerbated when skilled workers leave the company.

Employee turnover and the fight to retain skilled people in construction

People will always leave construction companies and projects, but some construction projects and contractors experience a higher number of employees resign than other construction companies. It’s easy to be dismissive about people resigning, taking the attitude that if they want to go then they must go.
​
Indeed, we also don’t want to be paying people excessively high wages or promising them extra perks to stay, because this often only works with mercenaries who are only after money and have little company loyalty anyway. But, the high employee turnover is disruptive and costly. It’s said that employing a new person can cost between a month and six months wages, depending on their skill level and how easily the person can get onto the project.

​How much does employee turnover cost construction projects and contractors?

When a person leaves a construction project there’s normally a hole left behind, which usually results in less work being done. If the person has a key skill such as being a crane operator it could mean that the rest of the team can’t work effectively. Senior management and supervisors often leave a knowledge gap when they go, and frequently new individuals have to establish relationships with the client, suppliers, subcontractors, and the work crews, all resulting in disruptions and additional costs to the project.

Employing a new person entails additional costs such as the costs to recruit them, which could include advertising for the job, employing a recruitment agency, time to interview the person, and then the administration costs to complete all the paperwork. Then there are often costs for medicals and inductions. Probably the cost of company uniforms and personal protective equipment and the person usually has to be paid while they attend inductions and company training. Finally, the person can start work on the project, where they often take a week or more to learn what to do, what the project rules are and where they fit in.

When a person leaves their workload usually has to be taken up by others in the team until a replacement arrives. This results in additional stress and pressures which could lead to mistakes, shortcuts, poor quality, and even others within the team deciding the added pressure is too much and they also leave.
​
Obviously replacing someone who is useless, or is a troublemaker, or who don’t have the required skills is beneficial to the project.

​Why are people leaving your company?

​Often people leave a company or construction project because they aren’t happy. Usually, the good people leave first – the ones that can easily find a job elsewhere. When one person moves to join another contractor they may induce others to follow. If a number of people resign then others will start to consider their position, wondering why everyone is leaving and thinking that maybe they should also move on.

It’s therefore important to understand why people are resigning, then where possible put in measures to reduce the likelihood of more people leaving. People could be moving because of an abusive manager. People leave bad managers and supervisors. They may leave companies where they feel they aren’t being respected. Maybe they aren’t receiving a fair wage. Perhaps they don’t have the right tools or equipment, or the equipment keeps breaking. Possibly the working conditions are unsafe, or they have to work long hours, or away from their families. Sometimes employees are ‘poached’ by other companies, induced to work there with promises of promotion or better pay.

Talking to the person resigning may help dissuade them from going. Some employees move because they think that the grass is greener on the other side of the fence, but maybe they don’t fully understand the benefits of staying and the downside of leaving and working for another contractor. But, even not being able to dissuade them, it may be possible to improve conditions for those remaining so that they are less likely to leave the company for the same reasons.
​
Of course, good managers who understand and talk to their team will usually hear of problems and resolve them early before they’re a cause for unhappiness and people leaving the company.

​Conclusion – keeping good people is essential for contractors

PictureImage by s m anamul rezwan from Pixabay
Construction companies need good people with the right skills. Contractors cannot afford to lose good people. However, it’s often not possible to retain good people at any cost when they want to go. There will always be contractors prepared to pay skilled good workers more than you can afford. Rather create loyalty in your teams by being fair and consistent, by treating people right, by providing opportunities for training and growth, by paying them fairly, by promptly dealing with their concerns, by giving them the right equipment and by clear and honest communication. Good managers will attract and retain good workers.
​
Do you have a loyal team?
How do you retain your good people?

​This article was first published on the ClockShark website.
For construction and field service companies who want to get rid of paper time sheets, ClockShark is the GPS time tracking app that's both powerful and easy to use.

Do you want to learn how to manage construction projects successfully?

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​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
The books are available in paper and ebook from most online stores including Amazon.
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© 2019 This article is not to be reproduced for commercial purposes without written permission from the author.
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9 Comments
cuttingtechnologies link
10/8/2020 09:26:30 pm

Companies lose good employees primarily because they do not recognize their talent in time. The employer should be aware that he is dealing with a skilled person and motivate him to engage in the development of the company. Talent management is about identifying and supporting the development of the most talented employees to implement the company’s plans.. The lack of talent management in companies means that the most talented employees usually leave their companies. Unfair compensation [relates to this reason too]. It is essential to recognize the value of a good employee and supply him with a fair salary, bonuses, and extra benefits. Those that feel underpaid will also feel underappreciated and will start looking for the compensation elsewhere.

Reply
Charlie Bavister link
1/9/2020 09:04:08 pm

Your best people leaves you when you are not able to create a good environment for them. A healthy environment and dedicated team is a must in construction practices. Thanks for sharing such nice information!

Reply
gggclaboratories link
3/12/2020 07:31:30 pm

It is a great blog post.I am always read your blog helpful and informative tips. I like it thanks for sharing this information with us

Reply
Electric Security Hamilton link
18/12/2020 05:26:14 pm

This article provides details about the construction management blog are your best workers leaving you. I enjoyed reading this article and would suggest others it as well. Thank you for this article! This is really very informative for us and look forward to more such in future for all of us.

Reply
Pergolas Tauranga link
29/12/2020 11:56:34 pm

Thank you very much for presenting this data about the topic, it provide us clear information regarding the are you the workers leaving you. Wonderful information, thanks a lot for sharing kind of content with us. Great post!

Reply
Richard Kenoy link
25/1/2021 02:50:05 pm

Thanks for always sharing your insights, being selfless, and spreading kindness. I personally can’t thank you enough for all of the amazing content you share. You change lives! WE APPRECIATE YOU. Stay safe!

Reply
Otago Excavation link
27/1/2021 03:15:59 pm

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faulty door repair link
26/4/2021 12:52:57 pm

A drew in representative will be anxious to examine the ventures they're chipping away at, the difficulties they face, and their arrangements to take care of any remarkable issues that may spring up en route. An unengaged laborer will be less chatty, more withdrawn, and zeroed in absolutely on traversing the days to guarantee their check. By and large, you can tell whether a laborer needs to be on the undertaking site by essentially looking at them without flinching and evaluating for yourself. Trust us, it's not difficult to recognize an unengaged specialist.

Reply
John Carston link
15/9/2022 08:11:55 am

I like that you said that skills of the service provider play a big role in estimating how long the project would last. The other night, my best friend told me that he and his business associates were looking for an industrial construction company that could provide the precise construction for their business warehouse, and he asked if I had any idea what would be the best option to do. I'm glad about this enlightening article, I'll tell him that he should consult a trusted industrial construction company as they can provide more information about the building process.

Reply



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  • Construction Home
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  • +Construction Books
    • Successful Construction Project Management
    • Building a Successful Construction Company
    • Construction Claims
    • Construction Project Management: Tips and Insights
    • Construction Management: From Project Concept to Completion
    • An Introduction to Building and Renovating Houses
    • The Successful Construction Supervisor and Foreman
    • Designing your ideal home
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