Retaining Construction Skilled Labor in 2024

The Power of Consistency in Construction Teams

In construction, consistency is everything. When teams work together on multiple projects, something special happens—they develop a unique rhythm, almost like a “signature touch.” Think of it like a signature scent or style. When you retain a skilled team, they bring that familiar energy and refined coordination to each project. It’s something clients notice, and it can set you apart from competitors. So, the real question is: what steps can you take to keep your workers engaged, motivated, and happy to stay with your company for the long haul?

Tackling High Turnover: Why Retention Matters in Construction

Employee turnover in the construction industry is a rising concern, and it’s no secret that the impact can be severe. The Associated Builders and Contractors (ABC), reported that there were over 390,000 job openings in 2022 alone, causing businesses to feel the pressure of a skilled labor shortage. As a business owner, you may be facing this very issue—watching valuable team members move on just as they’ve grown familiar with your projects and systems. You’re not alone in this.

Why Retention is More than Just a “Gen Z” Trend

There’s a lot of advice out there focused on adapting to younger generations’ needs, but in reality, the desire for motivation, purpose, and recognition isn’t new. It’s human. When workers feel valued and inspired, they’re more productive and more willing to commit. Retention doesn’t mean jumping through hoops to please everyone but rather creating an environment that’s inclusive, supportive, and forward-thinking for all.

Key Ways to Reduce Turnover in Construction

Let’s get practical. Reducing turnover starts with actively working to increase retention. Here are some ways to start:

1. Prioritize Safety and Well-being

  • Invest in Training: Show employees they’re more than “muscle” by investing in their skills. Training not only benefits your company but also gives employees a sense of growth and personal achievement.

  • Reduce Accidents and Burnout: Workers appreciate companies that care about their safety and mental health. Implement safety protocols, ergonomic equipment, and regular wellness checks to prevent burnout and show that you value your team’s well-being.

2. Motivate Through Innovation and Variety

  • Engage with Technology: Introducing new tech—whether for safety, project management, or collaboration—keeps things fresh and appeals to workers across generations. New tools can attract younger talent, streamline operations, and inspire curiosity.

  • Offer Diverse Projects: People want to feel challenged. Projects that are interesting and varied are much more likely to capture your team’s attention and keep them invested. Taking on high-profile or unique projects can be a big motivator. This is where bidding comes in. Implementing the right technology to cut business costs can give your company a competitive edge in securing more bids.

3. Foster Team Camaraderie and Connection

  • Build a Community: Create team-building opportunities that help your crew form connections. Whether through group lunches, outings, or project-based recognition, building camaraderie fosters a sense of belonging and loyalty.

  • Consider monthly and yearly awards to celebrate positive actions: Whether serious or lighthearted, give out trophies, medals, or even a "Yellow Jersey" (like in the Tour de France) for metrics that matter to your company. Categories could include "Best Customer Service," "Top Time Tracker," or "Fastest Talker." These awards both reinforce great culture and add a bit of fun!

4. Offer Fair and Competitive Compensation

  • Competitive Wages and Benefits: Compensation is one of the clearest ways to show you value your workers. Offering competitive wages, bonuses, and benefits can make a big difference in reducing turnover.

  • Reward Loyalty and Hard Work: Consider implementing longevity bonuses or rewarding employees who have stayed with the company over time. Recognizing hard work can be a powerful motivator to stay.

Avoiding Common Pitfalls: Focus on Genuine Connection

The goal is not just to have a team that shows up for work but to have a team that wants to be there. You can have referral programs, perks, or incentives, but without a genuine human element, these strategies may fall short. Employees are more likely to stay when they feel they’re respected, heard, and valued—not just because they’re incentivized. A simple “thank you,” a pat on the back, or even a team spotlight goes a long way in making people feel seen.

Final Thoughts

The reality is simple: turnover rates fall when retention rises. And retention isn’t a matter of bending to every demand; it’s about providing a meaningful, fulfilling experience for the team that makes your business run. Start with a strong foundation, nurture it with authenticity, and you’ll see the returns in the loyalty and commitment of your workforce.

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How a Solid Tech Stack Can Help Attract Better Talent in the Construction Industry