19 Construction Employee Retention Solutions You Need
The construction industry is among the most affected by turnover. Many construction workers leave each year. This creates gaps in crews and delays on projects. It also leads to lost productivity and higher costs. These include training and hiring costs.
The impact here is not just on HR metrics. It also affects things like project continuity and team morale. Company performance is also affected.
Studies have been done in several countries on this. These countries include the US, India, China, and Australia. They tend to find the same thing: high turnover slows projects and reduces efficiency. It also hurts the company's reputation.
The construction industry has notoriously high turnover rates. They can be overcome though. Studies from around the globe reveal proven retention strategies that actually work, and you can implement them right now.
One review found that turnover in construction affects more than HR. It also damages productivity, delays schedules, and raises costs.
The good news is that this is all repairable. Research shows that there are ways to keep workers. This might be achieved by improving safety and reducing stress. Things like setting clear expectations and offering predictable hours also help. So does offering a path for career growth.
Here, you have a guide to help. We have 19 research-backed solutions that can help construction companies keep skilled workers. These strategies will also help to reduce hiring costs and strengthen teams.
By using these strategies, companies can create a more stable workforce. They can also help to improve project outcomes and reduce stress. Finally, they can help companies save money.
Why Construction Turnover Happens (And Why It Matters)
High turnover in construction is a serious risk. A study from India supports this. It notes that turnover can stop workflow. It also makes meeting deadlines more difficult. The study shows that keeping employees is a core issue for companies.
On top of this, a review found that high turnover hurts the entire company; not just HR metrics. This shows how important it is to start using the following strategies:
Worried About Employee Retention?
Want to make sure your employee retention plan will work? Get in touch for a free consultation today with an experienced HR consultant.
Schedule Your Free ConsultationEmployee Retention Strategies for the Construction Industry
Retention strategies are not one-size-fits all. Research shows that there are many factors that make employees want to stay.
In construction, these include addressing stress and clarifying roles. Managing workload and improving leadership also help. So does offering opportunities for growth and creating a safe work environment.
Below, we will explore 19 different strategies. Employers can use them to keep construction workers on the job. These are all based on research. Every strategy shown includes steps to take and an explanation of why it works. There are also references.
1. Reduce Stress & Improve Safety Manager Support
Construction safety managers are under a lot of pressure. Research from the pandemic era proves this. The industry still has high construction turnover rates. Most of this is due to high stress and workers not being happy.
Managers feel similarly, especially if they are in charge of compliance or productivity. Those in charge of employee well-being also feel the same.
When leaders are overworked or don't feel supported, something happens. Their stress tends to affect their crews. This raises turnover across the board.
To fix this, companies should use structured programs to reduce stress. This might include things like weekly check-ins with upper management. Predictable workload assignments can help, too. So can offering mental health resources.
For instance, a company may offer a 30-minute weekly review session. Here, safety managers can talk about concerns, tasks, or issues with leadership.
Offering mental health resources, like counseling or help lines, can also help people feel supported.
When safety leaders are confident and happy, their crews are, too. This means that everyone is more likely to stay.
Improving management practices also improves safety. This reduces workplace injuries and improves morale. Companies that make the well-being of managers a top priority see more retention. Not only with employees, but also among leadership.
2. Eliminate Role Conflict Through Clear Expectations
Role conflict happens when an employee deals with unclear expectations. It can also occur when two leaders are telling them two different things. This greatly increases the chance of turnover.
A study of Indian construction workers looked at those who had role conflict. They were more likely to consider leaving their job. This can lead to confusion about responsibilities. They may not know who is in charge. This can lead to frustration. They also may stop caring.
One way to stop this is to make the roles clear. Having role clarity meetings before every major project stage is one way to do this. These meetings should define everyone's jobs. It should be clear who is in charge. A communication channel should be set.
Adding visual aids can help, too. A chart showing "who approves what" helps to improve workflow. It also reduces misunderstandings. Revisiting this regularly ensures everyone is on the same page.
Being clear helps both the worker and the company. The workers are less stressed. They are more productive. They also feel respected.
For companies, this creates higher-quality projects. They also see a lower turnover rate.
3. Reduce Role Ambiguity & Overload With Better Workload Planning
Role ambiguity and overload are linked to emotional exhaustion. This predicts turnover.
The same study mentioned above shows that workers may leave if they have too much work, or their role is not clear.
In construction, this may happen when tasks overlap. It can also happen when project scopes change. It may also occur when responsibilities shift in the middle of a project. Overload occurs when an employee has more work than they can handle.
One way to stop this is by weekly workload forecasting. Documenting task scopes and setting clear deadlines helps, too. Project management software, or even a simple spreadsheet, helps track everything. All of this can prevent workers from feeling overwhelmed. Predictable workloads also reduce stress.
One example of this is a project manager who assigns tasks daily. They review progress every day to make sure no one has too much to handle. When a worker knows that they have a reasonable amount of tasks, they feel better. They are more confident, less stressed, and more likely to stay with the company.
4. Limit Excessive Hours
One of the most common causes of turnover in construction is excessive work hours. A Chinese study shows that extended work hours-often exceeding a typical full-time week-were a significant driver of work-family conflict, which in turn increased employees' turnover intention.
Long hours lead to burnout and decreased productivity. It also leads to mistakes that cause unsafe conditions.
A best practice is for construction companies to have maximum-hour policies. It also helps to have rotating shifts. Offering paid family time also helps workers balance their lives. Overtime should be an exception, not a rule.
Limiting hours has two main benefits: it reduces burnout and improves safety. Crews that are well-rested and supported perform better. They have higher morale and are less likely to leave. This creates a more stable workforce.
5. Adopt Family-Supportive Leadership Training
Leadership that is supportive of their staff's family needs also improves retention. The same Chinese study, above, shows people are less likely to leave if they are supported by leaders.
This includes things like offering shift swaps when needed. Other policies that help are advanced notice of schedule and empathy in emergencies.
Training supervisors to use family-sensitive scheduling can greatly impact retention. For instance, when family events occur, offering a shift swap shows that the company cares. Doing small things like this consistently improves loyalty.
Workers who feel supported in both their work and family lives are more engaged. They are also more productive and likely to remain with the company long-term.
6. Improve Pay & Total Compensation Transparency
Pay is one of the levers that matters most concerning retention. A Malaysian study looked at construction workers. One thing the study found is that how much they make influences how happy and engaged they are.
A worker who feels that they are paid fairly is less likely to leave. Pay policies that are not clear or consistent make workers unhappy. Workers subject to policies like that are more likely to leave.
To improve retention, a company can create a clear pay policy. It should define how pay improves with experience, skill, and certifications. Ensuring the company is offering competitive pay rates is also important.
Linking pay progression to skill works well, too. The same can be done with safety records or equipment mastery. This gives employees a goal, which can make them happier.
Being clear also helps to build trust. When an employee knows how to get a raise, and they can see a connection between work and reward, they are motivated. This helps them grow within the company instead of leaving.
7. Protect Work-Life Balance With Predictable Scheduling
Work-life balance is a major reason why a construction worker will stay with or leave a company. A schedule they can predict allows them to plan personal activities.
They know when they can take time off. They can better manage family commitments, too. All of this reduces stress and makes them happier at work.
Companies can offer a consistent schedule and rotate weekends. They can ensure guaranteed downtime following major pushes or deadlines. Even offering something minor, like a two-day buffer between long shifts, can work well.
Workers who know their schedules and who can maintain personal time feel respected. They also feel supported by their employer. This leads to longer tenure and fewer absences. They are also more engaged.
8. Offer Career Growth Pathways
Career growth is a top driver of retention. Workers who can see a path from an entry-level job to a leadership position are more likely to stay. They feel like their efforts now can improve their future.
Construction companies can create a tiered career ladder. For instance, it might go:
Apprentice
Skilled worker
Lead
Supervisor
Each tier can be tied to specific training, certifications, and pay increases. Clearly communicate these opportunities to staff. Let them know what they can do to achieve them.
Offering this not only motivates workers. It also ensures that the company has people they can rely on as current leaders move to other jobs.
9. Strengthen Job Security Through Longer-Term Contracts
Job security also has an impact on retention. Workers who are afraid of getting laid off or not getting work may leave. They may even be happy with other aspects of the job, but need more stability.
Offering multi-project employment agreements or guaranteed hours during slower seasons can reduce this fear. Workers who feel secure are more engaged. They are also more focused and committed to the company. Clear communication about long-term plans and contract stability further reinforces trust and loyalty.
Strong job security also reduces stress. It allows staff to focus on performance and improving skills. Otherwise, they would be worried about getting a new, more stable job.
10. Improve Leadership Quality
The quality of leaders is directly tied to how happy workers are at their jobs. An Australian survey asked 449 construction workers about this.
They found that good leadership, proper training, and positive relationships were important. They all were linked to lower turnover. They also increased crew performance.
Employees who are supported and guided by leaders are happier. They are less likely to look for another job. Plus, they are more likely to positively contribute to projects.
11. Keep Promises & Prevent Psychological Contract Breach
Research shows that workers expect promises from their employers to be kept. This is true even if they are not in writing. When an expectation like this is broken, something happens. It's called a "psychological contract breach." When it occurs, workers are unhappy and may look for another job.
Companies can do things to prevent this. One method is a "promise tracking" system. Document things like raises, scheduled changes, or promotions. Make sure to follow through. Being clear and accountable helps to strengthen trust.
It's also good policy to make sure managers are trained to never make explicit promises to other employees.
Even a small breach, like a late schedule change or unfulfilled minor commitment, can create a bad precedent. It can harm employee morale. When companies keep promises, they are seen as reliable. This reduces the likelihood that employees will look for other opportunities.
12. Expand Job-Related Training Programs
Training programs aren't just for skill development. They also improve retention. Research shows that job-related training increases retention by over 10%. This is especially true when it enhances perceived support.
Companies can offer safety and skill training. This leads to:
Certifications
Higher pay
Promotion opportunities.
Workers who feel invested in by their employer are more likely to stay. Training programs also foster pride in work, improve performance, and enhance team cohesion.
A good training program shows that a company is committed to the workers' growth. This strengthens loyalty and reduces turnover.
13. Combine Pay, Promotion, & Commitment Initiatives
Retention improves when pay, promotions, and commitment are all addressed together. Taiwanese research shows that combining these things lowers a person's desire to leave.
Companies can create performance-to-promotion pathways. This shows workers exactly what they have to do to get a raise and promotion. Communicate this often. For example, share a message like "Grow with us. Here's what your next 6-12 months can look like."
Combining pay, growth, and engagement creates a holistic approach. This keeps workers motivated, productive, and loyal.
14. Improve Culture: Fairness, Communication, & Politics Reduction
A company culture also plays a role in turnover. Coworker relationships, fairness, and organizational justice all matter. So does reputation and communication.
Companies can have monthly toolbox talks. These are short meetings focused on fairness, conflict resolution, and communication. Offering anonymous reporting channels can help too. It will reduce favoritism and political tension. A positive culture helps to shape employee commitment. It also reduces departures due to stress.
Workers who feel respected and heard are more likely to stay. They are more likely to feel like they are treated fairly. This leads to stable crews and better project delivery.
15. Stop Overworking Crews by Addressing Labor Shortages
Too few workers can lead to a labor shortage. When this happens, the crew available can get overworked. A report found that 68% of companies push employees to cover extra work. This is because they don't have enough people to cover the tasks they need completed.
Companies should create realistic staffing models. They need to offer referral bonuses and cut forced overtime. Overworked staff are more likely to burn out. They make more mistakes. Over time, they may leave.
Making sure there are enough workers is important. It helps to sustain the workload and promotes better morale. It also makes people want to stay with the company.
16. Provide Mental Health Resources & Stress Management
Studies show that between 16% and 50% of construction workers have mental distress. This is linked to high turnover and injury risk.
Companies can offer programs like confidential mental health access to help alleviate this issue. They can also offer talks on stress and fatigue management. On-site counseling is another option.
Lowering mental distress improves safety. It promotes productivity and loyalty. Mental health support shouldn't be optional. It is a key part of retention.
17. Reduce Injury Risk
Stressed-out workers are more likely to break safety rules. This increases injury risk. It's best to invest in safety training. Companies that do this see up to a 35% drop in worker turnover.
Create stress-aware safety programs. These include shorter shifts and micro-breaks. Make sure workers are well-rested before taking on dangerous tasks.
Less stress equals fewer injuries. It can also lead to lower turnover. Safety improvements also improve reputation. This makes recruitment easier. Plus, it leads to happier workers.
18. Increase Meaning & Purpose in Daily Work
Many construction workers report low personal meaning when doing daily tasks.
A company can connect these tasks to outcomes. They do this by showing how every project is beneficial. It can be beneficial to the community, to families, or in other ways.
Sharing how a project impacts others allows workers to see the value of their work. This improves engagement and retention.
A worker who feels their work matters is more motivated. They are also more productive and committed to the company.
19. Break Monotony With Job Rotation
Jobs that are repetitive or boring lead to turnover. CareerExplorer research shows poor growth when there are no opportunities. Repetitive tasks increase dissatisfaction.
Offer job rotation and cross-training. Help with skill diversification. This helps workers stay engaged.
Workers who have several skills and more experience are less likely to leave. Variety improves morale. It also reduces boredom and enhances team resilience.
Worried About Employee Retention?
Want to make sure your employee retention plan will work? Get in touch for a free consultation today with an experienced HR consultant.
Schedule Your Free ConsultationTurnover Isn't Random
Construction turnover is not random. It's predictable. People leave for common reasons. These include stress, long hours, and unclear roles. They leave due to poor leadership and unsafe work conditions. Some leave due to not having a clear career path or low pay. Taking care of these things can improve retention quickly.
Employee retention in the construction industry is more than just about morale. It promotes clear schedules and prevents injuries. It reduces hiring costs. Small improvements like clear roles and better training can help over time. So do safer worksites and predictable hours.
A strong retention plan ensures workers stay with your company. Otherwise, they will go to your competitors.
The 19 construction employee retention solutions I've shared offer you a practical roadmap. With these ideas, you can reduce turnover and improve project performance.
If you need more information, please message us for a free consultation.
