How can I attract and keep good construction employees?

A. Retiring baby boomers leave employers with huge gaps

Twenty years ago, baby boomers flooded the workplace. Two decades later, the baby boomers have begun to retire. As they do so, they are leaving employers with large gaps in the labor pool. Business Week in its September 16, 1996 issue “A Scramble for Good Help” stated that the government expects the number of workers ages 25 to 34 to fall by 13% each year for the next 10 years. “Eighteen months later, this prediction appears to be accurate. The latest figures from the US Department of Labor show a 10% drop in the number of workers ages 25-34 compared to last year.”

b. Members of Generation X go high-tech

It’s not that the future labor pool is short of talent. Just the opposite, today’s new hires, ages eighteen to twenty-four, are equipped with more skills than perhaps any generation of potential hires in recent memory. And that is precisely the problem. The field is so rich in talent that it is heavily courted by booming high-tech industries that offer excellent job opportunities.

At the same time, potential employees are also tempted by the prospect of working at home, another byproduct of the techno-revolution. Plummeting costs of technology and the Internet have reduced business start-up costs so that almost anyone can afford a home-based business.

Beneath the surface, the fundamental employee/employer relationship is also changing. Loyalty is waning. Recruiter Ken Shaw commented: “The spate of companies merging, downsizing and changing direction has caused employees to view company loyalty with skepticism. Employee loyalty is very short-lived and most employees don’t expect be with the same employer after a few years. years.” As employers and employees adjust to new market changes, the issue of loyalty is redefined.

Even the basic needs of employees are changing. Finding and keeping good talent is no longer just about money. Recruiter Jim Vockley of Moffitt International in Asheville, NC, comments, “Typically, we find that candidates don’t leave just because of more money or to avoid difficult work circumstances. We found that they often leave for reasons of more human factors, such as a greater appreciation of work, a better working relationship with management, a better geographical location for his family, a better work environment, more flexible hours, etc..”

against Keeping your employees

There are three key ingredients to effective employee recruitment and retention. Identify why employees leave. Financially appreciate employees. And creating a better work environment.

Determine why employees are leaving

“Because I did not work?” When a problem arises in the workplace, everything stops until the problem is identified and corrected. Employers rarely follow the same process when an employee leaves. If they did, they might find reduced rotation. Of course, employers don’t have to wait until an employee leaves to start taking preventative measures. They can start by asking themselves, “If you were looking for a job, why would you want to work for my company?” Employees who have left can also help identify ways to reduce future turnover, much like a brainstorming session with senior management.

Many of the underlying reasons employees leave are similar, and have surprisingly little to do with money. They often leave due to a human factor, such as a conflict with management staff, broken promises, perceived lack of appreciation, support, or direction. Others have nothing to do with the employer at all, such as the need to be geographically closer to their families. Whatever the reasons, employers must understand them and work to minimize their effects in the future.

Appreciate employees financially

PAY MARKET WAGES:

Accessing market information on compensation averages has never been easier. Associations, recruiting firms, and even the Internet make it easy to access compensation surveys. Any employee worth keeping is smart enough to monitor these figures to ensure they are paid fair market value.

WE OFFER PLANS IN ACTION:

The most loyal employee is the one who has ownership in the company. Lawyers and architects have been offering their key people partnerships and shares in the firm for decades. Corey M. Rosen, executive director of the National Center for Employee Ownership, says a strong stock plan can cut employee turnover in half.

SUPPLEMENT WITH BONUSES AND PERFORMANCE-BASED PAY:

Many companies offer their employees bonus plans that take into account personal performance, team performance (or project performance) and company profitability spread over 3-5 years. Commission payment has been common at the end of sales for years. But the industry is now seeing more operations employees earning most of their compensation through gold bonuses and commissions.

IMPROVED BENEFITS:

The benefits of a compensation program don’t have to cost a lot of money. And the message they send to the employee can mean greater loyalty and less turnover. Many benefits are now focused on helping the worker succeed as an employee and as an individual. Common incentives include tuition reimbursement in qualified programs, retirement plans, child care subsidies, and flexible hours to appeal to working parents.

Additional benefits may include:

Weekend trips and excursions

rented cars

Awards, certificates, plaques, honors

Memberships in professional organizations.

subscriptions

Laptops

cell phones

Tickets to sporting events, cinema, theater, restaurants

Software

Additional paid days off

Birthday as individual floating party

Gifts of all kinds

Health club memberships

Improving the work environment

Most people spend more time with their coworkers than with their families. In fact, for many workers, the workplace functions as a surrogate family, in which the worker looks for support, encouragement, and appreciation. The extent to which employers can provide this type of environment can be a good indicator of their success in reducing turnover.

The Center for Creative Leadership in San Diego commented in a recent survey that companies that offered employee development, good communication, ethics and other positive human factors enjoyed better retention rates and 20% higher profits. Here are some non-financial tools that some employers are using to help increase retention rates.

A CAREER PLAN:

Employees like to have clearly defined goals, as well as definite plans and timelines for achieving those goals. Help employees develop a career plan within the company so they understand where they are going and why it makes sense to achieve those goals.

OPEN DIALOGUE:

The exchange of operational and financial information helps build trust between employer and employee. It also helps workers understand how their performance affects results and encourages their participation. Ultimately, this gives them a sense of ownership in the company and a long-term stake in its future.

HEAR:

Reinhard Ziegler, managing partner of Andersen Consulting’s Dallas office, says, “To retain people, you have to be a good listener.” One of the most valuable tools a manager has is the ability to provide regular feedback. He keeps the company improvement suggestion boxes available to all employees and offers rewards for the suggestion of the week or the month.

TEAM BUILDING:

Provide reward and recognition programs that recognize performance and achievement. Organize regular company social outings to build rapport and enthusiasm.

CONTINUOUS TRAINING AND DEVELOPMENT:

The IMF comments in its 1997 Training Survey that “50% of the largest companies indicated that training supervisors would reduce turnover by between 10% and 19%.” They suggest that employers partner with local community colleges or technical schools and offer internships, apprenticeships, or pay for education in exchange for a certain number of years of work.

d. Tips for Attracting Quality Employees

Develop advertising and marketing programs targeted to potential employees.

Using computer-based recruiting tools not only makes your recruiting more efficient, but also ensures that your technology is on par with the workforce.

Network with associations, suppliers, owners and peers.

Establish an internal referral program that pays employees for referrals that result in a hire.

Maintain a visible presence wherever the workforce frequents, such as industry associations and related events.

Use internal recruiters to visit job fairs, colleges, follow up on networking contacts, direct sourcing, surf the internet, etc.

Use a specialized recruiting firm to complement your internal recruiting efforts.

Recruit retirees and minority workers, two of the fastest growing job markets in the US.

Use the Government Unemployment Office as a resource.

Help the industry improve its image as a career for today’s youth.

my. putting yourself first

The wide availability of similar technologies and increasing vendor consolidation are quickly leveling the playing field for most employers. As competition within the industry continues to grow, success will be judged less by price and quality of work and more by the employer’s ability to provide responsive and informed service. All of this points to the critical importance of attracting and keeping a well-trained and loyal workforce.

Those companies that are the first to realize that their success depends on serving their customers will also be the first to realize that to maintain that level of service to their customers, they must first provide it internally to their own people. In that sense, the employer’s first and most important clients may end up being themselves.