"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. 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."
"People want to progress and see opportunities"
"Success is empowering, infectious and stimulating. Everyone wants to be part of a winning team"
"Employees want to feel part of a winning brand,"
"Who wants to be frustrated by having their work interrupted by equipment breakdowns, or having to continually repair broken equipment?"
Information in this article is contained in 'Building a Successful Construction Company: The Practical Guide' by Paul Netscher Good companies are built with good peopleStrong 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. construction management construction project management
28 Comments
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.
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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.
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1/10/2018 07:14:12 pm
Excellent post, you bring up some very good points here.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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20/9/2019 12:59:41 am
This is really great post regarding construction management. I appreciate it.
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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.
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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
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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!
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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.
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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.
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6/7/2022 11:22:01 pm
Only this post proved that any body is not equal you and your level
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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.
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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.
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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.
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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.
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