10 Strategies to Improve Talent Retention in Construction

By Heather Parbst of CLA
Originally published July 8, 2024

One of the biggest challenges construction firms face today in building value and sustainability is attracting and retaining talent. It’s a struggle we hear from almost all our clients.

This is a real problem often written off as unfixable or considered a consequence of younger generations not wanting to work hard or having poor work ethic. This stereotype doesn’t help and oversimplifies a complex issue influenced by changing work values, technological adaptation, a shifting working world with more dynamic and flexible work environments, communication differences across generations, and job market challenges like higher student loans and housing costs.

Owners can retain previous perceptions of what defines a good employee, or they can accept the new reality and choose to adapt. This choice can have a very real impact on long-term success.

There are strategies to move an organization from having a talent shortage to having a competitive advantage through talent attraction and retention.

Consider 10 strategies for talent retention in construction

1. Training and development

This may be the most overlooked strategy. Providing opportunities for skills development resulting in career advancement can make employees feel valued and invested. Strategies including apprenticeships, certifications, on-the-job training, and continuous education form a visible foundation. Such offerings inspire employees to connect and stay, and it builds bench strength.

2. Positive work environment

Creating a supportive and inclusive workplace culture is crucial. Recognize and reward hard work, encourage teamwork, and maintain open communication channels. Addressing issues like workplace safety and providing necessary equipment and resources can also enhance job satisfaction.

3. Work-life balance

When an owner invests 50 hours or more weekly into growing their business, they may believe it’s the only way to be successful. This can be at odds with other generations that value more work-life balance.

Get curious about shifting this topic from a perspective of “right versus wrong” and recognize it’s just a different approach. Offering flexible work schedules, paid time off, and policies supporting work-life balance helps employees manage personal responsibilities alongside their job. This can reduce burnout and increase job loyalty.

4. Employee engagement

This is another often overlooked strategy. Engaging employees through regular feedback, involving them in decision-making, and acknowledging their contributions can increase their commitment to the company. Building interaction, creating connection, and gathering employee insight can also significantly improve engagement.

5. Career advancement opportunities

Clearly defined career paths (career pathing) and promotion opportunities can motivate employees to stay with your company. Providing mentorship programs built on sharing experience and perspective shows a longer-term investment in the individual. Both can significantly support succession planning, which reassures your top talent they have a future with your company and drives value in the minds of potential buyers.

6. Health and safety

Safety issues in construction can creep in to the most well-intentioned businesses, so addressing safety is essential. Teaching about assessing risk, implementing disciplined safety protocols, providing required safety gear, and offering health and wellness programs support a safe working environment and demonstrate to employees they are valued.

7. Company culture and values

Building a strong, positive company culture, emphasizing core values, and clearly articulating behaviors supporting those values can inspire employees and foster loyalty, a sense of community, and belonging.

8. Employee recognition programs

Some may bristle at the thought of providing regular employee praise and positive feedback. But whereas once employees expected a pension, now they expect acknowledgement. While it can feel time consuming, the benefits of providing real-time recognition and appreciation are significant.

Understand that recognition is in response to something earned or deserved. Appreciation is something we all need to hear regularly.

9. Improved communication

Transparent and frequent communication from management can build trust and engagement. Keeping employees informed about company goals, changes, and their role in the company’s success can enhance their sense of purpose.

10. Competitive compensation and benefits

This is where many employers often start but there’s evidence it’s not as important as many employers think. Offering attractive salaries, bonuses, health insurance, retirement plans, and other benefits can help retain employees. Consider reviewing and adjusting compensation packages regularly to stay competitive. But if you are paying your employees fairly, compensation may not be the biggest motivator for retention.

Focusing on these strategies over time can truly shift the landscape of a business in very tangible ways while also building value and sustainability. Don’t underestimate the importance of a strong team and dedicated employees, and don’t buy in to the notion your talent challenges are insurmountable.

For more construction industry strategies, contact Heather Parbst at heather.parbst@CLAconnect.com or 407.244.9385. Heather Parbst is Director of Ownership Transition Advisory for CLA. She partners with owners, leaders, and organizations to successfully navigate leadership transition, meet personal goals, grow value, and build strong leadership and culture.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CLA) to the reader. For more information, visit CLAconnect.com.

CLA exists to create opportunities for our clients, our people, and our communities through our industry-focused wealth advisory, digital, audit, tax, consulting, and outsourcing services. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.