As projects become more difficult and deadlines tighter, retaining construction and infrastructure talent is more crucial than ever. Once you lose a skilled worker, replacing them is not only costly but also time-consuming in a competitive market. Keeping construction workers on board is essential for the success of individual projects and your company's long-term growth and competitiveness.
Yet, we understand that retaining talent in a competitive market is easier said than done. It requires a nuanced understanding of the challenges that workers face and a strategic approach to addressing these issues.
In this guide, we explore the critical challenges of retention in the construction and infrastructure industry and offer a set of employee retention strategies for keeping your talent engaged, motivated, and loyal.
Challenges of Retention in Construction Jobs
According to recent research, the construction industry faces a significant labour shortage, requiring an additional 501,000 workers in 2024 alone. This demand is expected to persist, with 454,000 more workers needed in 2025, even assuming a slowdown in construction spending. These figures reflect the industry's deeper retention challenges and the importance of retaining talent to meet demand.
Before implementing the best retention strategies for your business, it is important to understand the underlying challenges behind talent retention in the construction industry. Ultimately, understanding these challenges is the first step toward implementing effective solutions.
So, with that in mind, what are the critical challenges within talent retention for construction jobs?
1. Competitive Salaries and Benefits
First, one of the most significant challenges is the highly competitive nature of salaries and benefits within the industry. Construction companies must compete with each other to source construction workers, all with similar skill sets and expertise.
While many companies are willing to offer higher pay to attract and retain talent, it can create a salary bidding war that not all construction companies can afford to participate in. If you're a construction company operating on tight margins, offering competitive salaries while maintaining profitability can be a significant challenge.
2. Demanding Work Schedules and Physical Nature
There is no doubt that the industry is known for its demanding work schedules and the physical demand for construction jobs. Long hours, weekend work, and the need to meet tight deadlines can lead to burnout, which is a leading cause of turnover.
The physical demands of construction work, which often involve heavy lifting, using machinery, and working in various weather conditions, also contribute to job dissatisfaction over time. Once workers start feeling the physical effects of their work, they may seek less demanding roles in other industries, even if it means taking a pay cut.
3. Limited Career Development Opportunities
Another significant retention challenge is the lack of clear career development opportunities within many construction companies. While the industry is excellent for hands-on learning and gaining practical experience, many workers feel that they hit a wall once they reach a certain level of expertise.
So, if your employees don’t see a clear path to advancement, they may become disengaged and start looking for opportunities elsewhere. A lack of upward mobility is a critical issue that many companies need to address to keep skilled infrastructure and construction workers from leaving.
4. Work-Life Balance Difficulties
Work-life balance is becoming a priority for workers across all industries, and construction is no exception. The demanding nature of construction work often leaves little room for personal time, leading to dissatisfaction and burnout. Limited work-life balance is a significant reason why employees leave the industry or move to construction jobs with less demanding schedules.
While construction has traditionally been seen as a field that requires a high level of commitment and long hours, construction companies that fail to address work-life balance may find it increasingly difficult to retain talent.
5. Economic Fluctuations
Economic fluctuations are common, and the construction industry is highly sensitive to these changes. During economic downturns, construction projects may be delayed or cancelled, leading to layoffs or reduced work hours. Workers who have experienced consistent changes in workflow may seek more stable employment in other industries, making it difficult to retain talent during times of economic instability.
6. Ageing Workforce and Skills Gap
The construction industry is also facing an aging workforce, with many experienced workers nearing retirement. Skills gaps become increasingly prominent as there are not enough younger workers entering the field to replace those who are leaving.
A lack of experience creates a shortage of skilled labour but also results in the loss of valuable knowledge. Construction companies must address skill shortages by focusing on both retaining older workers and attracting younger talent, which can be challenging.
How Can Your Business Retain Construction Workers?
Now that we have uncovered the underlying difficulties surrounding talent retention in the construction industry, let's explore the key employee retention strategies your business can use to reduce employee turnover and build a skilled workforce.
Here’s how you can adjust your construction recruitment strategy to increase employee satisfaction and retention:
1. Offer Competitive Benefits
The first step to improving talent retention is offering competitive benefits for your potential employees. Creating an advantageous benefits package that meets the needs of your workforce is essential. Here’s how to do it:
- Regular Salary Reviews - You can conduct regular salary reviews to ensure your compensation remains competitive, to stay ahead of the competition, and manage turnover as a result of low salary.
- Go Beyond Basics - Consider offering additional perks such as sign-on bonuses, tuition reimbursement, profit-sharing, and wellness programs. Unique benefits can set you apart from competitors and make your company attractive to potential and current employees.
- Flexible Compensation - By implementing performance-based rewards and bonuses, you can motivate employees to perform well but also align their achievements with the company’s success.
Tailor Your Benefits - Tailoring your benefits packages to meet the specific needs of different employees is crucial for employee satisfaction. For example, younger workers may value student loan assistance, while older workers may prioritise retirement planning and health care benefits.
2. Invest in Your Workforce
Next on our list of top employee retention strategies is investing in the development of your workforce. Employees value growth. So, offering opportunities for career progression has several advantages, from improving employee skill sets and, most importantly, increasing their loyalty to your company.
Below are the best ways you can invest in your employees' development:
- Training - Whether it’s technical skills, leadership training, or soft skills, providing employees with the tools they need to succeed will keep them engaged and committed to your company.
- Mentorship Programs - When focusing on emerging talent in particular, pairing experienced workers with junior professionals is a great way to facilitate knowledge transfer and bridge the skills gap by preparing younger construction workers to take on more advanced roles.According to research, 46% of construction firms report launching internal training programs in order to increase their talent pools, and half of them report getting involved with career-building programs.
- Certifications - Encourage employees to pursue industry-relevant certifications that will enhance their skills and career opportunities. It is important to consider offering financial support or time off to pursue these certifications, which can demonstrate your investment in their long-term success.
- Cutting-edge Technology - To set up your workforce for success and satisfaction, investing in the best technology will prepare your team with the necessary tools to progress in their careers, leading to increased retention rates.
3. Build a Clear Path for Career Progression
Outlining clear career paths for employees is crucial in retaining ambitious workers. It shows that your company is invested in its future and that they have opportunities to grow within the organisation.
- Leadership Development - Invest in training programs focused on preparing employees for managerial roles, offering workshops and hands-on experiences in site management and project coordination to build essential leadership skills.
- Project-Based Growth Opportunities - Assign employees to diverse construction projects to expand their skills. Rotating construction jobs across project phases helps them gain comprehensive experience and prepare for higher responsibilities.
- Personal Development Plans - Personalised development plans are essential for employees, aligning their career goals with company needs. Include training, certifications, and project experiences to prepare them for future leadership roles.
- Regular Performance Reviews - Consider conducting regular, tailored performance evaluations to discuss career goals, recognise achievements, and set milestones for progression, aligning aspirations with company growth opportunities.
- Internal Promotions - Prioritise promoting from within, using employees’ existing project knowledge and experience to motivate and demonstrate clear career advancement pathways within the company.
4. Create a Desirable Work Environment
Another way to increase retention rates is to create a supportive work environment for your team. Employees are likely to stay with a company that values their well-being and prioritises a collaborative and inclusive culture.
Take a look at the top strategies for building a strong work culture:
- Promote Collaboration - Encourage on-site teamwork and cross-functional collaboration by holding regular safety briefings, site meetings, building mentorship between experienced and less experienced workers.
- Implement Work-Life Balance - Employees value flexibility, so offering staggered shifts or rotational schedules helps workers manage personal responsibilities and reduce burnout after demanding project phases.
- Recognition Programs - Implement safety awards and project completion bonuses to recognise and reward employees for following safety protocols and contributing to the successful completion of projects.
- Employee Engagement - Conduct on-site feedback sessions and maintain an open-door policy with project managers to ensure workers feel heard and valued and that their input leads to actionable improvements.
To learn more about how you can address the labour shortage in your business, discover our insightful guide - Solutions to Tackle the Construction Industry’s Labour Shortage.
Final Say: Key Strategies for Retaining Skilled Construction Workers
In today's competitive construction and infrastructure industry, retaining skilled workers is more important than ever. The challenges of talent retention, such as competitive salaries, demanding work schedules, and limited career growth opportunities, are significant. By understanding these challenges and implementing targeted employee retention strategies, your business can build a work environment that attracts top talent but also keeps them loyal and satisfied.
Investing in your workforce through comprehensive benefits, continuous training, and clear career progression is crucial. These efforts not only enhance employee satisfaction but also build loyalty, reducing turnover rates and ensuring that your company remains competitive in a competitive market. Providing a positive work environment that prioritises collaboration, work-life balance, and employee recognition further strengthens your team’s commitment.
Ultimately, retaining your construction workforce requires an approach that addresses both their professional and personal needs. By focusing on these key areas, your company can build a strong, dedicated workforce that is well-equipped to handle the demands of the industry and contribute to your long-term success.
Providing International Construction Recruitment Solutions
Are you a business striving to build a more resilient and dedicated workforce? It's time to rethink your employee retention strategies. By partnering with us, you gain access to top talent that keeps your construction and infrastructure business competitive. Whether you need to fill technical roles or retain your workforce, our expert consultants connect you with candidates perfectly suited to your needs.
Contact us today to discuss how we can meet your requirements.
