Salary Increases Alone Might Not Be Enough to Retain Construction Company Employees

Written by Steve Ball | Jun 30, 2016 11:53:33 AM

As part of a recent Maryland construction industry survey, we investigated the top reasons construction company employees leave, the top benefits contractors are offering and the role performance reviews play in how firms manage their human resources.

At first glance, the results came as no surprise:

Salary plays the biggest role in an employee’s decision to stick with or leave a company
Contractors are basing salary increases on merit
The top benefits offered by contractors are insurance related

Almost 80% of respondents said they expect to give salary increases. But will a raise be enough to keep top performers?

The Dollar is Number One ... or Maybe Not

Yes, people change jobs for more money. Nearly one-third of survey respondents cited this as the number one reason employees leave. However, 30% is far from an outlier.

There are other reasons employees leave, like conflicts with supervisors or management, or a desire to exit the industry entirely. Plus, about one-third of contractors reported they have employees on staff who they feel deserve to be terminated — that’s a red flag.

More than ever, companies today are paying attention to workplace culture and its potential as a competitive advantage. Building morale and helping employees feel part of a supportive team are modern imperatives. And it’s not just about hosting an annual food drive or promoting an office Atta-Boy gift card program. Smart companies are walking the walk. They’re baking charitable endeavors into their business plans, listening to what’s important to their staff and greater community, and giving their people the ability to chart their path forward.

3 Ways Your Firm Can Build a Healthy Company Culture

Lead with integrity
A company’s culture is fostered by its leaders. Those at the top need to examine what’s working, what’s not and what steps to take to bring the entire team to a more successful place.

Provide timely feedback
Staff performance reviews and post-mortem conversations provide everyone a chance to say what they need to say, when they need to say it. Give everyone a chance, regardless of rank or title, to reflect on how jobs went and keep the doors open for two-way communication.

Help top performers grow
Career path discussions aren’t for everyone. But people who run the jobs — your star PMs, superintendents, etc. — should have a clear vision for their role in the company. Provide continual training opportunities and 360-degree evaluations to help them continue to improve.

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