As demand for construction services in the U.S. continues to soar, losing a skilled worker to a competitor can be damaging to project timelines, budgets, retention rates, productivity, and team morale. That’s why it’s essential to create a team of loyal workers who won’t leave you when demand is high.
Loyal workers are more engaged and are less likely to seek construction opportunities elsewhere, reducing employee turnover rates. In a competitive industry, you particularly want to retain those who possess critical skills, experience, or knowledge.
However, finding and retaining loyal employees is not always an easy task. This is where your retention incentives become critical. A retention incentive is a program, compensation, or benefit that motivates and encourages a worker to stay with a company.
This article will explore five retention incentives that keep construction workers loyal.
Wage Increases
Not only should your company offer competitive wages, but it should also be willing to increase those wages each calendar or fiscal year. This encourages workers to stay with the same company for an extended period of time, as they anticipate their yearly wage increase.
An increase of $1 an hour can give employees an extra $2,000 a year. Construction management software can help you manage payroll for your construction team, ensuring wage increases are done accurately and fairly.
In addition, you could also increase an employee’s annual leave allowance each year.
Reward and Recognize
Rewarding and recognizing your workers for achieving specific goals is the key to improving productivity, engagement, and, ultimately, retention.
You can reward your whole team by taking them out for lunch or organising a fun day, and you can reward individual workers with bonuses, extra annual leave, or gift cards. Also, consider developing an employee of the month program to boost morale, if you don’t already have one.
Employees (or teams) are likely to work harder and more efficiently if a reward is waiting for them at the end of a specific task or project, so a reward program also benefits your company.
Bonuses
Other than bonuses as a reward for great work, you can offer your workers a bonus for:
- Being with the company for a set amount of time: Consider giving employees a bonus each time they reach a milestone with your company. For example, $500 for one year, $1,000 for three years, and $2,000 for five years. This is a great way to retain workers as they are excited about reaching each milestone.
- Referring a friend to the company: If your employee refers a friend to a vacancy, and that friend stays with the company for more than 6 months, you should give your employee a referral bonus. This is a great way to attract new talent through word of mouth.
- Christmas (and other holidays): Employers may choose to give their workers a holiday bonus, as this shows appreciation for their efforts and covers some of the high expenses associated with that time of year.
Construction management software also ensures that bonuses and benefits are paid accurately and on time.
Upskilling Opportunities
One of the main factors of high employee turnover in the construction industry is the limited advancement opportunities. If you give your workers the opportunity to upskill, they are more likely to stay with the company, as they can gain the right experience and skills to receive an internal promotion.
For example, if you allow a general operative to take a bricklaying course, they can then work for your company as a craft operative. This provides your company with access to high-quality talent for a specific trade, while the worker receives an additional qualification, a promotion, and a wage increase.
In addition, consider reimbursing workers who wish to pursue part-time college degrees in relevant fields, such as Construction Management, Construction Safety, Civil Engineering, and Welding. This also equips them with the skills and qualifications to advance within the company, rather than leave for a better offer.
Additional Incentives
Companies should also think outside the box when it comes to retention incentives, as this can help them gain a competitive edge and encourage employees to stick around. These unique additional incentives could include free or discounted gym memberships, tools, mobile plans, restaurants, and travel expenses.
Ready To Build A Team Of Loyal Construction Workers?
Construction workers aren’t loyal to a single company for no reason, as there are thousands of companies in the U.S. offering competitive rates and benefits packages. The goal is to create a unique benefits package and positive workplace culture that stands out and encourages workers to stay with you long-term.
