Retention, Retention, Retention: Building a Skilled and Committed Workforce
With a 54% turnover rate with the skilled workforce (Associated Builders and Contractors, 2023), construction companies face ongoing challenges in maintaining a stable and reliable labor force. High turnover impacts productivity, safety, efficiency, and long-term industry sustainability, making retention a critical priority. Addressing this issue requires strategic workforce planning, and skilled temporary labor can play a key role in bridging gaps, ensuring project continuity, and strengthening team efficiency. Let’s explore how leveraging temporary skilled labor can transform this challenge into a competitive advantage.
The Retention Crisis in Construction
Unlike traditional office jobs, construction work is project-based, often leading to employment uncertainty once a project concludes. The physically demanding nature of the job contributes to burnout, while competitive markets lure skilled workers to higher-paying opportunities. These factors have resulted in turnover rates fluctuating between 56% and 68% in recent years (U.S. Bureau of Labor Statistics, 2023).
Why Retention Should Be a Priority
High turnover disrupts project timelines, increases recruitment and training costs, and negatively impacts job site efficiency. Even more critically, it exacerbates the skilled labor shortage, making it harder to complete projects on time and within budget. Retaining experienced workers ensures smoother operations, enhanced safety, and a stronger workplace culture.
How Project Management Teams Can Make a Difference with Daily Practices
Project managers play a crucial role in shaping job satisfaction and employee commitment. Here’s how they can act:
1. Offer Competitive Compensation & Benefits
Fair wages, performance bonuses, and benefits like health insurance, retirement plans, and paid time off help retain skilled workers. Companies investing in benefits have higher retention rates (National Association of Home Builders, 2023).
2. Invest in Career Development
Upskilling opportunities, apprenticeships, and leadership training foster loyalty by providing workers with a clear career path.
79% of construction workers say professional development opportunities influence their decision to stay (AGC of America, 2023).
3. Build a Positive Workplace Culture
A culture of respect, inclusion, and teamwork leads to better job satisfaction and employee engagement.
Encouraging mentorship programs helps bridge the knowledge gap and strengthens team cohesion.
4. Increase Job Stability
Instead of hiring only per project, consider multi-project employment contracts or long-term agreements to provide workers with job security.
Companies with structured workforce planning report 30% higher retention rates (Construction Industry Institute, 2023).
5. Prioritize Communication and Recognition
Regular check-ins, open-door policies, and performance recognition help workers feel valued and heard.
Recognition programs, like employee spotlights and incentives, can significantly boost morale.
The Future of Construction Depends on Workforce Investment
The construction industry is evolving, and workforce stability is the key to long-term success. Project managers can change the narrative by prioritizing retention through competitive pay, training, culture, and technology and make construction an attractive and sustainable career path.
The future is bright! A dedicated and well-supported skilled labor force leads to greater flexibility for all parties, improved project stability, and a thriving industry. Invest in your people today to build a stronger workforce for tomorrow.