Why Some Companies Don’t Care About High Employee Turnover (And Why We Do)

//Why Some Companies Don’t Care About High Employee Turnover (And Why We Do)

Why Some Companies Don’t Care About High Employee Turnover (And Why We Do)

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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By | 2019-04-08T17:32:35-04:00 April 11th, 2019|Construction Blog|

About the Author:

The Birmingham Group has been serving the construction industry since 1967. Brian Binke took over the firm in 1995 and since that time, he has personally placed over 1200 construction managers and senior leaders, with company revenues ranging from $10 million dollars to the largest ENR 400 companies in the industry. Brian is an industry innovator, with a specialized skillset in construction. His keen understanding of business, the construction industry, and ability to effectively match and recruit top leaders has led to many accolades. He was ranked the #1 International Billing Owner in the construction industry for his own personal production and has been consistently recognized as one of the Top 10 International Billing Owners out of 800 owners worldwide. This includes owners across every industry. In 2013, Brian was awarded the #1 International Billing Owner within the entire network. For over two decades, Brian has been considered one of the most influential thought leaders in the construction industry. His business and construction knowledge are used as a resource for some of the nation’s most prominent publications. In the past year alone, Brian has been quoted in or authored articles for The Wall Street Journal, CBS News, MoneyWatch, Construction Today, ConstructionDive, United Rentals, Fast Company, Entrepreneur Magazine, American Express, Builder Magazine, and Human Resource Executive, among others. "I believe companies are a lot like sports teams. The team with the best players usually wins. It is my passion to deliver the absolute best talent to my client companies – the market’s top performers, the talent that every company wants to hire but which seldom seems available. To put it simply, I thrive on helping my clients build their Dream Team." - Brian Binke, The Birmingham Group
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