strategies for Employee retention in construction

strategies for Employee retention in construction

Employee turnover affects every sector. Based on recent research, there is an average 15% workforce turnover in all industries. This number significantly increases in the construction sector, rising to 21.4%. This implies that the number of employees quitting their jobs is higher in the construction industry than in other sectors of the labor market.

Those who are involved in the construction industry are not surprised by these numbers. Construction agencies are competing at an all-time high, and the entry of fresh agencies has merely fueled the decline. In many cases, newly established construction firms lack the expertise that can only be developed from several years of experience in the industry. They concentrate on quick wins, while retaining construction employees is relegated to their list of non-essentials.

A business that has poor employee retention will not only suffer a huge economic loss, but will also develop a bad reputation among its workers and competitors. The alarming statistics of staff turnover and the unending costs of constantly replacing workers has sent many construction companies on a quest for the best strategies to attract and retain top talent in their organization. In this article, we will discuss 9 proven strategies to attract and retain top talents in the construction industry.

1. Know Your Metrics

Wages are not the only factor that employees consider when deciding whether or not to leave their jobs. According to a recent survey, the top three reasons why Americans left their employment last year were low income, a lack of promotion chances, and feeling disrespected at work. Before you dive into finding a solution to your labour shortage problem, you should first identify the problem.

Like any good building project, you must take care to measure twice and cut once to avoid needless rework. Monitor metrics like employee engagement, attrition rate, retention rate, benefit participation, grievances, productivity, and employee referrals. The results will help you identify specific areas that your company needs to improve on to retain top talents.

2. Grant Your Workers Autonomy

Your workers will not be able to carry out their duties effectively if they feel that they are constantly being watched. You should not hover over your staff. Micromanaging doesn’t do anyone much good. Instead, give them the space they need to execute their jobs.

Employers need to take great care to foster this sense of autonomy in the workplace, especially if they want to attract millennial workers who are often very innovative. Being open-minded to other approaches to problem-solving, having patience for mistakes, and paying attention to employees’ goals and needs are all strategies to reduce micromanagement and increase autonomy.

3. Recognize Employees’ Contribution

Building a strong team is crucial to running a successful construction business. However, a lot of organizations view construction workers as just a means to an end rather than the cornerstone to their business.

Everyone wants to feel appreciated, and this is especially true at work. This recognition is particularly crucial following the pandemic, when many employees have been required to handle challenging situations despite constantly shifting circumstances.

4. Improve Your Work Culture

A healthy workplace culture can play a significant role in the growth and retention of employees. Negative or toxic workplace environments can result in disgruntled or disengaged employees, poor quality work, dissatisfied clients, and increased staff turnover.

To improve their company work culture, employers often focus on communication. The way a company’s employees interact with one another is a key indicator of the organizational culture of that company. The manner in which leaders and teams choose to communicate is just as important as the content of the messages themselves.

5. Provide Constructive Performance Reviews

To advance in their career, workers seek continual performance evaluation that is both constructive and positive. Providing regular feedback and compiling all of this information into an extensive annual performance assessment is a cost-effective strategy to retain talent. Regularly evaluating and commending your workers will reassure them that their skills and efforts are noticed and well appreciated. While giving quantitative evaluation is vital, it’s equally necessary to give qualitative input on a worker’s soft skills and cultural fit with the organization.

6. Review Your Benefits Package

Even if an employee feels valued, if they believe that they are not adequately compensated for their work, they are likely to go elsewhere. It is, therefore, critical to regularly review your benefits package and have a plan in place to financially reward high performers. Spot bonuses and regular salary increases can greatly contribute to your employee retention rate.

7. Invest in Employees’ Career

Hiring new personnel may seem like a quick way to tackle your labor shortage. The costs, however, can be quite expensive. You’d generate a greater return on investment for your construction company if you invest that money instead in retaining the talent you have already acquired.

Employees in today’s market are aware that in order to advance and stay competitive, they must keep pace with trending skill sets. Organizations can take advantage of their workers’ drive for growth by offering opportunities like mentorship programs and funding further education. A focused career path can bolster employee morale and convince your staff that they have a promising future with the company.

8. Prioritize Work-Life Balance

The most effective strategies for preventing burnout and encouraging good work-life balance are ensuring that employees are not overburdened with their workload, having open lines of communication with management, and having a positive workplace culture. However, employers can take additional steps to support employees’ physical and mental health. 

Benefits like wellness reimbursements for massages or gym memberships, insurance coverage for counseling and other mental health services, and  access to online platforms for meditation or wellbeing can all help workers feel more refreshed.

9. Encourage Diversity

People seek employment in environments where they can see their kind. They want to see that there is someone within the organization that they can identify with. A more diversified workforce would lure individuals to the construction sector, especially at this time when the industry is in dire need of more labor. Diversity fosters creativity. It attracts new potential talents and encourages current employees to remain with the company.

To improve diversity in the workplace, companies can establish committees to steer diversity, conduct staff surveys or culture audits, and raise awareness on the issues at all levels of the organization.


Finding and retaining top talent can be challenging, which is why smart organizations usually outsource this task to experienced and trustworthy construction recruitment firms like TradeLink Solution.

TradeLink Solution is a staffing firm that offers talent acquisition services to businesses in the engineering and construction sectors. We have put in a lot of effort for more than 15 years to match people with the best opportunities and companies. Contact us today for more information.

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