Employee turnover in the construction industry in 2024 was 2.5% higher than in other industries, according to the Bureau of Labor Statistics. Realizing that the hiring and training processes can cost 50%–200% of an employee’s annual salary, many companies prefer to retain valuable workers than continually search for replacements.

Not every factor for turnover is under the control of company management. The seasonality of the work, changing regulations and material shortages can affect employee retention.

However, one way to hang on to employees, according to a survey by the Building Talent Foundation, is through employee engagement. The study reveals that compensation is not the primary reason employees stay at their construction jobs. Instead, those who responded to the survey cited career advancement opportunities, the chance to learn new skills and feeling “valued and respected at work” as reasons to stay. A “people-first” culture helps employees feel valued and inspires loyalty.

To stay on top of employee engagement and loyalty, company leaders must regularly evaluate the corporate culture. Surveys, interviews and observations are a good start for assessing the existing corporate culture. After that, a plan can be devised to create an improved culture that engages workers and boosts loyalty. Strategies could include:

• Recognize and value employee contributions. This could be through bonuses, promotions, praise and other rewards.
• Provide opportunities to learn new skills. Develop a succession plan for key roles through a mentorship program, relying on employees who embody not merely the necessary skills, but also the desired cultural characteristics to train new workers. Letting employees upskill creates a talent pipeline.
• Handle issues promptly. From safety concerns to poor work habits to bad attitudes, if issues aren’t addressed quickly, morale plummets.

To prove to employees that their feedback is valued and they are being listened to, leaders should respond appropriately and adjust policies where necessary. Feeling heard and valued stimulates a sense of ownership as well as loyalty. By encouraging innovation and ideas for improvement, employers can build loyalty and boost employee engagement and retention.