STAFFING
HOW CONSTRUCTION
COMPANIES CAN
IMPROVE EMPLOYEE
RETENTION
Submitted by the International Construction and Utility Equipment Exposition
Today’s workforce is different. The society they live in is
different. With low unemployment and worker shortages
in many occupations, today’s workforce has a lot of
leverage in the job market. And in most cases, it takes more than
good pay to get employees to stick around.
“Employers have to view the employer-employee relationship differently
than ever before,” said Cara Silletto, MBA, president and chief
retention officer for Crescendo Strategies, a consulting firm that helps
companies reduce unnecessary turnover by bridging generational
gaps and making managers stronger. “Employers are starting to view
that relationship differently because things like excessive overtime,
worker shortages and turnover are beginning to really impact the bottom
line. It can cost anywhere from $5,000 to $25,000 per employee
that walks off the job.”
There is positive news for employers in the construction and utility
industry, though. Silletto says there are some basic things companies
can do to immediately begin strengthening their employee
retention efforts.
Get a handle on the problem
The first action is to recognize that retention is a problem. Silletto says
that in order to do that, it’s important to take long-term employees out
of the turnover calculation.
“Long-term employees have what we refer to as golden handcuffs,”
Silletto says. They are largely loyal to a given company because they’ve
earned inherent benefits as a result of their loyalty and tenure, such as
considerable paid time off.
Conversely, a company’s turnover problem often resides in its newer
employees. “Most of these employees don’t have a pension and are offered
little in the way of paid time off or bonuses,” Silletto points out. “I
encourage senior leaders to look at the current tenure of their new hires
over the past five years. What many companies find is that the average
tenure declines every year.”
To begin reversing that trend, company leadership can implement
the following recommendations.
Three things senior management can do
Plan for a shorter term workforce. If people used to stay five to 10 years,
they are now staying two to five years. Plan for that.
“Operationally speaking, companies should look at how they are
scheduling and planning for turnover on their teams,” said Silletto. By
Cara Silletto, MBA
revamping the onboarding process and creating better training paths,
employers can better maximize the time they have with an employee.
Videos and group training, for example, could help expedite the
learning curve.
Create a retention champion. Someone in the company needs to
be in charge of the workforce retention initiative. It doesn’t even
have to be a full-time position, and it doesn’t have to reside in the
HR department. This person would help monitor employee perceptions,
serving as a liaison between employees and management.
This person would also oversee the implementation and evaluation
of different retention initiatives.
Gather feedback. Conducting employee surveys should be a core element
of what the retention champion does.
“It’s important to collect real data about why employees leave,” said
Silletto. “If a company assumes it’s all about pay and schedules, they are
wrong. All of the data points back to things like company culture, communication
and management effectiveness.”
Three things middle management can do
Communicate expectations. Today’s new workforce wasn’t raised like
the previous generation. New hires cannot read their managers’ minds.
“The phrases ‘work ethic’ and ‘professionalism’ are very subjective,”
said Silletto. “Managers must spend more time and effort communicating
expectations if they want employees to hit the mark.”
Appreciate a job well done. Many managers feel like they should only
show appreciation when an employee goes above and beyond.
“Remember, it’s an employee’s market,” said Silletto. “Many employers
say they have a problem with too many employees not showing up
on time every day. I encourage managers to dig down deep into their
hearts and admit the fact that they are grateful for the employees who
do show up on time and do their jobs. A manager can become a better
boss by just saying ‘thanks’ to their employees.”
Have an onboarding plan. Employees always start out in the HR department
filling out paperwork. But the new hire experience continues
once HR hands the employee over to his or her supervisor.
“A manager should have a plan for what they are going to do with the
new hire once they get them,” said Silletto. Are the new hire’s tools in order?
Are the other team members aware that the new hire is starting?
“Today’s new workforce sees the employer-employee relationship so
differently,” said Silletto.
Following the guidelines above may mean less employee turnover
for your firm.
thinkbigmagazine.ca | Quarter 4 2019 | Think BIG 47
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