Some construction firms think high employee turnover doesn’t matter that much, especially when there is a skilled labor crisis. They go about hiring expecting a certain amount of turnover and wind up making mistakes in their process that only worsen the problem. From our perspective, getting your hiring process right is essential to good retention. And part of having a solid hiring process is attracting the high performers you need on your team. This will ensure retention from the start.
A Steep Cost
The most obvious disadvantage of high turnover is the cost of having to hire new employees. And when there is a talent shortage, turnover is already hard to avoid. So, the key is making smart hiring decisions. You need to understand the high cost of turnover through lost productivity, the expense of hiring new talent, and the often-overlooked cost of a company’s damaged reputation. When you start improving your hiring process and focus on hiring only top-producing talent, losing any member of your team will come at a steep cost. If you already have some low performers, make it your mission to recruit and train someone who will do the job better than the person that came before them.
Reflect on Your Leadership
It is often said that bad management creates bad employees. So, if you’re experiencing high turnover, it may be time to look within the company at your leadership. Are you treating your team like valued family members? Are you giving them the autonomy they need to succeed in their role? Are you rewarding your managers for their accomplishments? If your firm needs some leadership training or shifts in culture, focus on correcting those issues and get them in alignment with your hiring process and retention strategy.
A Track Record of Success
Hiring stable managers is a key to success in construction. You need project managers who can see construction projects from start to finish over and over again. They need to bring them in on time and on budget. Job jumpers cannot accomplish this goal. So, how do you identify individuals who the hiring manager will have the best chances of keeping for many years? Focus on the candidate’s past track record of success. And focus on the long-term stability of their career. The greatest predictor of future performance is past performance. If you’re having a hard time finding these quality candidates, it’s likely because the type of talent you need is already employed and not looking for an opportunity. This is where working with a construction recruiter can be your competitive edge.
Focus on Loyalty and Retention Follows
Having retention as a primary goal is key. But that goal should only follow the goal of hiring the best talent in the industry to begin with. People stay with a company for various reasons. You want to find people who believe in the company and are committed to seeing the company succeed. You want employees who are loyal to you. Loyal employees are more productive and perform better. This should be the end goal.
Given the current labor crisis in the construction industry, companies are eager to improve retention. Don’t let the labor shortage let you lose sight of the fact that talent retention is at the core of a construction firm’s success.
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