As competition for construction workers is anticipated to remain tough for the foreseeable future, wise company leaders are investing in the retention of talented, committed and loyal team members. It’s not surprising that pay, skills, performance and recognition all play a role in retention. How well are you doing on these four keys to success? Read on for pointers.
Preventing Turnover
With employee turnover in construction among the highest of all U.S. industries, it’s smart for business owners to act on data for improved retention. Given the costs associated with turnover, at ADP, Kit Dickinson encourages a laser focus on the four keys to retention, especially in the construction business:
Competition is fierce and if you’re not laser focused on retaining your construction crew, someone else is going to swoop in with a better offer … .Retaining the workers you already have is oftentimes more affordable than replacing them. Moreover, losing workers also means you lose their institutional knowledge of how your business operates to maximize efficiency. Even after you hire a replacement, building back up that institutional knowledge can take years. Finally, a crew that sticks together becomes a well-oiled machine. They work in harmony, enabling projects to get done quicker without losing quality. This type of chemistry not only helps with the company’s bottom line, but it enhances the company culture and makes the work more enjoyable. When it comes to increasing retention at your construction company, offering competitive pay and benefits, prioritizing skills development, utilizing modern performance management solutions and focusing on recognition are four key strategies to consider.
Bottom line? Toward improved retention, it’s probably safe to skip over random pizza delivery, water bottles hurriedly stamped with your logo, and maybe even the holiday party. Strategic investment in what matters most is likely to be the best play over time. Start with an honest assessment, backed by real time comparative data against these four keys:
- Competitive pay and benefits
- Skill development
- Modern performance management
- Recognition
As you determine practices and beliefs that need updating at your construction business so that you can cultivate a loyal employee team, consider these three pointers from ADP experts:
- Having confidence that your construction crew is getting top-of-the-market pay and benefits via benchmarking data can provide confidence that your crew is going to stick together … .According to the most recent ADP Pay Insights report…construction employees saw year-over-year pay growth of 4.5% in July. The median pay was $70,400.
- A previous report from ADP Research found workers who feel strongly their employer is providing the training they need are nearly 6 times more likely to recommend their company as a great place to work….When workers…believe their employers are investing in them, they’re twice as likely to say they have no intent of leaving….
- Utilize a workforce tool that facilitates regular check-ins…The right tool can also track what employees loved and loathed at work….Tacking engagement on a week-to-week basis greatly increases your ability to catch waning engagement as early as possible and course correct.
Good To Do: Communication Please
Successful companies also strive for consistent and clear communication. If your communication practices need a brush up, take a look at these strategies for effective communication from CIC Construction Group. Keep in mind that information overload is a distraction for workers, managers and leaders alike, and make it a point to model these active listening techniques, which can truly be game changing when it comes to building and sustaining your team:
- Understand the speaker’s perspective, take notes on key points, and make eye contact.
- Use nonverbal signals like nodding to show attentiveness.
- Avoid interrupting and focus fully on the speaker’s message instead of planning your response.
- After they finish, ask questions and seek clarification.
- In meetings, actively participate by asking questions and seeking feedback to ensure everyone understands their roles and responsibilities.
- Don’t wait to send follow-up emails for clarification; address concerns during the meeting.
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