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How do we retain skilled employees in construction?

31/5/2015

28 Comments

 
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Image courtesy of Serge Bertasius Photography at FreeDigitalPhotos.net
"​Often retaining good people isn’t about paying them more money, it’s just about treating them properly."
​Finding and retaining skilled people is one of the biggest challenges that many construction companies face. The construction workforce is highly mobile and many companies have a high turn-over of employees. Some managers have an attitude of ‘if they don’t like it they can leave’, or ‘we can’t afford to give them what they want so let them go’. This attitude is costly to the company, and often retaining good people isn’t about paying them more money, it’s just about treating them properly.

Why should construction companies care when people leave?

​Every Construction company seems to complain of a lack of skilled people. This problem is often exacerbated when our skilled employees leave to join our competitors, or in some cases leave the construction industry.
"It can cost 16 to 20 % of a persons annual salary to replace them"
​Replacing employees is an expensive business. Costs include; recruitment, training, uniform costs, sometimes transport, lost time and production while a replacement is found and lost production while the new recruit finds their feet. (According to one report it can cost 16 to 20 % of a persons annual salary to replace them - read more.)
​
Then there are hidden costs such as the knowledge the person leaves with – which for a senior person on a construction project could be information required for variation claims, knowledge of clients, client relationships, etc.


Losing a senior competent and knowledgeable person can be difficult to replace as these people are often in short supply.
​
Losing people often places an extra workload on those that remain behind. This could mean they become overworked and leave the company as well, or it could result in them not being able to carry out their duties properly resulting in mistakes and accidents on construction projects. High Employee turnover? The sooner you know the better.
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How do contractors retain good employees?

"It's not all about money!"
​The first answer that springs to mind is money. However, you are seldom able to outbid the highest bidder. Anyway do you want to outbid the highest bidder? This is usually an unsustainable practice, it can upset other employees when they find out a new employee is being paid more, and higher wages drives the cost of doing business up. Do you want to employ someone who is only interested in staying if the money is right? Nevertheless, you do need to ensure that the salaries you are paying are market related. However, most employees don’t leave solely because of money, unless the pay is really poor.
There are a number of ways to retain employees which don’t necessarily cost lots of money. Usually just a little effort from management:
"Employees want to feel valued."
  • Employees want to feel valued, and while money satisfies some of this need, it’s often just about saying thank you for a job well done, being complimented for good work or being asked for your opinion. Feedback and encouragement are important tools. providing feedback to the construction project team​
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  • People leave managers not companies. People will often leave managers who are disrespectful in the way they treat them, their customers or others in the team. Nobody wants to work for a lazy manager, or one that isn’t respected in the company. Respect in construction - why it's important
"People want to progress and see opportunities"
  • Employees want to see a career path. We sometimes leave a person doing the same job because they are good at it. Some people enjoy the security of doing the same job, but most would like to progress and see opportunities for promotion.

  • Create a spirit of teamwork – the essence of ‘we’ not ‘them-and-us’. Many companies have people who don’t ‘pull their weight’, leaving a bigger workload for their co-workers. Others are only working to satisfy their own personal needs, often at the disadvantage of the company. Most employees want to be part of a bigger team all striving for the same goal.
"Success is empowering, infectious and stimulating. Everyone wants to be part of a winning team"
  • Celebrate success – construction isn’t an easy business and there are often numerous problems encountered on a daily basis, so when there’s substantial success embrace and celebrate it. It helps make everyone feel part of a successful team – success is empowering, infectious and stimulating. Everyone wants to be part of a winning team.

  • Training and mentoring is an important component. This not only makes the employee feel valued because the company is investing in them, but it also opens up possibilities for promotion. Most people want to better themselves and learn new things. Training and mentoring in construction

  • Employees want to feel trusted. Some managers micromanage their employees, often stifling innovation and creating a feeling that they don’t trust their employees. Delegating tasks is part of imparting trust. The importance of effective delegation for successful projects
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Image courtesy of stockimages at FreeDigitalPhotos.net
"Employees want to feel part of a winning brand,"
  • Organisational culture. Employees want to feel part of a winning brand, a company that respects them, their clients and other stakeholders.

  • Employees want to know that there is a future for them in the company. Some companies have a culture of ‘hiring and firing’ people. Who wants to work under conditions where you never know if today is your last day? Who would be loyal to that company? Part of this security is the stability of the company, is it a company that is often teetering on the edge of financial disaster.

  • Communication – how it’s said and what is said. Not keeping people in the dark. Employees may not need to know something, but they may want to know it. Some companies only tell their employees what they think they require to know to complete their work. But many employees want to know more than this. They want to know the company’s future, what new projects the company has won, major new items of equipment that have been bought, and even who the new bosses are in Head Office. Many are embarrassed when they read about the company’s news in the press or hear from friends what is happening in the company before they hear it from their managers. Good communication is essential in construction
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"Who wants to be frustrated by having their work interrupted by equipment breakdowns, or having to continually repair broken equipment?"
  • Tools and equipment – people not only perform better using the correct tools, but they are often proud of new equipment displaying the company’s logo. Who wants to be frustrated by having their work interrupted by equipment breakdowns, or having to continually repair broken equipment? The Alarming Truth about Using Old Construction Equipment
​​
  • Treat people fairly. This means paying them on time, not making petty deductions, not being seen to be treating others better than them, or favouring certain individuals. This means ensuring discipline is enforced fairly and equally. Sometimes we do need to carry out actions that some may see as being unfair, such as promoting one person but not another. In these cases it is important to explain your actions and why they weren’t promoted. Part of being treated fairly also means promoting people for the right reason, not just because managers fear losing them, or because they have been employed longest, rather ensuring the most competent person is promoted into a roll they are capable of filling.

  • Hear what people are saying. This doesn’t mean pandering to every little complaint or giving in to every demand. It may mean explaining a decision, or why a particular demand isn’t justified. However listening may also bring more serious underlying problems to the fore.

Many of these actions cost little money and take a small amount of effort, yet they can create huge loyalty and benefits for the company
"​As an MBE company located in NYC who is currently transitioning to commercial construction, this book was very informative and very very practical." (Reader on Amazon)
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Information in this article is contained in 'Building a Successful Construction Company: The Practical Guide' by Paul Netscher

Good companies are built with good people

​Strong companies are generally built by good people. We are usually only as strong as our team. So invest in your team.

By the time a person hands in their resignation it’s difficult to dissuade them. They probably have already explored other alternatives and many would have signed an employment contract with another company.

How do you retain your good employees? In future articles I’ll discuss other actions you can implement.
​#constructionmanagement #constructionskills #constructionprofessionals #contractors

​Other similar articles by the author:
Providing feedback to your construction team.
Why construction companies should be concerned about their reputation?
Understanding what impacts your company’s reputation.

​(Written by Paul Netscher the author of the acclaimed books ‘Successful Construction Project Management: The Practical Guide’ and ‘Building a Successful Construction Company: The Practical Guide’. Both books are available in paperback and e-book from Amazon and other retail outlets. This article is adapted from information included in these books. Visit Construction  Management Services on this website to see how Paul can help you)

© 2022 This article is not to be reproduced for commercial purposes without written permission from the author.
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28 Comments
Sariah Meagle link
29/8/2018 11:44:17 am

My brother is planning to have a warehouse built to put most of the stocks for his store in it. According to this, we can retain good employees with good management and value the people. Furthermore, it's advisable to hire professionals for a reliable construction management.

Reply
Paul
29/8/2018 05:35:37 pm

Thanks Sariah, good reliable employees are an asset to any company. Good management will value and look after these individuals.

Reply
Fall arrest safety nets link
1/10/2018 07:14:12 pm

Excellent post, you bring up some very good points here.

Hannah.

Reply
Camille Devaux link
10/10/2018 08:14:33 am

A friend of mine was worried about finding a good construction management service. She is trying to make sure that she is getting the best contractor help for her home. It might help her to know that they should be treating her fairly and not looking for small deductions.

Reply
Paul
10/10/2018 02:42:54 pm

Hello Camille, I suggest your friend reads my new book, 'Build and Renovate Your Home With Your Eyes Wide Open'. In this book I suggest questions to ask your designer and contractor and what questions you should ask their previous clients. I also explain what to consider when choosing designers, project managers and contractors and what you should look out for.

Reply
yellow sandstone link
1/11/2018 06:17:23 pm

Outstanding mass, grand assessment, excellence and technique. Not confident why I couldn't get with the intention of in the ratings portion; so I wrote it here. brilliant extent , traditional surrounding give the impression of being and basic stand. True round and stand is level.

Reply
Gillian Babcock link
19/11/2018 01:51:49 pm

My dad is planning to build a warehouse where he can store the harvested grain from his farm. It was explained here that when talking to construction employees, they should feel valued and see their career path. Moreover, it's recommended to hire professionals for quality construction management.

Reply
Paul
29/11/2018 12:19:37 pm

Hi Gillian, maybe your dad should consider reading my book 'Construction Management: From Project Concept to Completion'. It may give him some tips and information to make his construction venture a success.
Yes it is important to employ professionals. Always ask for references and check them. Importantly make sure that you can work with your team, that you understand them and they understand you.

Reply
Joy Butler link
29/11/2018 06:56:02 am

I am right now building a home and all my workers work so hard. I really appreciate them. I think that the stamina is dying a little bit since this is quite a hefty job. I really liked your tip on celebrating their progress and success. Maybe I will have to throw a party of sorts for them to make sure they feel accomplished and feel motivated to keep going. Thanks for the tip.

Reply
Paul
29/11/2018 12:15:36 pm

Hi Joy, a little thanks, or compliment for a job well done goes a long way. Let their bosses know you happy with their employee's performance.
Offering a coffee or a cold glass of water on a hot day shows you care and will be appreciated.
A small celebration when a milestone is reached will be welcome. Remember if alcohol is available this should be limited and only available if the day's work is done.

Good to hear you've found a good team. Of course the best thanks is to recommend them to friends and family for their building jobs.
Regards
Paul

Reply
Gillian Babcock link
25/1/2019 02:10:43 pm

My dad has a construction company and he wants to make sure that the workers are taken cared for. It was mentioned here that he can retain good employees by making them feel valued and have good managers. Moreover, it's recommended to hire professionals for quality construction management.

Reply
Paul
25/1/2019 04:53:15 pm

Hi Gillian, thanks for your comments. Please share the article with your dad - hopefully it will help.
Good, reliable people with the right skills are essential for every construction company.
For more useful information please refer your dad to my books.
Building A Successful Construction Company
and Successful Construction Project Management.
I'm sure your dad is flat out busy and doesn't have much time to read - but these books are easy reading.
Good luck to your dad and wish him a very successful construction company.
Regards
Paul

Reply
Camille Devaux link
6/6/2019 06:20:43 am

What you said about treating people fairly is a genius idea. Not making deductions will help construction to continue as planned without disgruntled employees. It might be wise for my sister to know this as she looks for construction management services to choose the best service.

Reply
Angela Waterford link
6/6/2019 11:47:57 pm

We're finding ways to retain skilled people in our construction company. I think that we'll be able to retain good employees if we hire a construction management company service to help us with our finances. Since you said that we should let them feel valued as well, the management company should hopefully help us with that as well.

Reply
Ashley Johnson link
6/8/2019 11:00:34 pm

I liked that you said that one thing to consider when you employ construction workers is that you should make sure to pay them well and help them to feel valued in order to ensure that they will stay with the company. I have been thinking about starting my own construction business but I am worried that I will not do a good job at retaining my employees. I would be sure to follow your advice by treating them with respect and paying them well for their work in order to help them feel valued and desire to continue working with your company.

Reply
Sukh Singh link
20/9/2019 12:59:41 am

This is really great post regarding construction management. I appreciate it.

Reply
Vivian Black link
16/10/2019 10:00:46 am

You made a great point about communication and how it is important not to leave people in the dark. The company I am working for wants to build an addition but wants to find a construction project management service to oversee it. They have put me in charge of finding the best professional for the job and these tips will help with my criteria.

Reply
Access Doors and Panels link
22/1/2020 06:00:26 pm

Know your Metrics. Research shows that it's not just salary that matters to employees. Great posts. Stunning, Thanks for the excellent outline


Reply
post and beam construction link
14/7/2020 07:41:04 pm

It’s a great source of knowledge; I think it will be helpful for lot of people who are looking for how do we retain skilled employeesn construction. Thank you very much for sharing this article, this is really helpful for me, thanks again!

Reply
Braden Bills link
19/5/2022 09:44:52 pm

I want to get a building made, but I'm not sure how to go about it. It makes sense that I would want to consider getting a construction company to help me out with this. I'll be sure to find one that has plenty of skilled workers.

Reply
John Carston link
10/6/2022 02:40:24 pm

I appreciate that you explained that you should provide opportunities and progress when the project is ongoing. My cousin told me a couple of days ago that he and his business partners were looking for reliable construction management services that could supervise all construction activity on the project site for their ongoing commercial project, and he asked if I had any idea what would be the best option to do. Thanks to this informative article, I'll be sure to tell him that he can consult trusted construction management services as they can provide more information about the process.

Reply
wellmadedubai link
6/7/2022 11:22:01 pm

Only this post proved that any body is not equal you and your level

Reply
Iris Smith link
27/9/2022 09:11:24 am

I appreciate you mentioning that using the right tools helps individuals perform better and that they frequently take pride in their new company-branded equipment. As a business owner, I must renovate my store before it can open for business. I'll hire skilled commercial general contracting services to assist me with the refurbishment.

Reply
Jessie Holloway link
15/12/2022 08:03:47 am

Thanks so much for talking about how a construction team should treat its employees. I have a friend opening a décor shop and she is not sure where to start in the process. We've been looking into finding a contractor to help her build the place and plan the functions of everything. We'll have to be sure to find one that treats everyone well.

Reply
Victoria Addington link
12/6/2023 08:31:37 pm

I liked how you wrote that we should choose a commercial contractor that invests in their employees. My friend wants to build his dream building. I should advise him to hire a contractor that maintains a fully staffed office.

Reply
Steve Smith link
11/8/2023 09:33:35 am

It helped when you said that a sustainable construction practice could help with the best contracting planning. The other day, my best friend told me he and his business partners were hoping to find an industrial building contractor that could offer heavy machinery that would provide a time-effective production process for their industrial warehouse property construction. He asked if I had any suggestions on the best course of action. You did an excellent job explaining the importance of proper customer-contractor relationships for the best planning approach. I'll tell him he may consult mechanical contractors to gather information about their services.

Reply
sanjeev link
29/10/2023 11:02:37 pm

good contractor should invest in his employees

Reply
sanjeev link
29/10/2023 11:30:58 pm

good article on company and employee relation

Reply

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Developing Successful Construction Project Managers.

Building Successful Construction Companies.
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  • Construction Home
  • About Paul Netscher
  • +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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