The Ultimate Construction Worker Retention Guide

Here’s how construction firms can build an employee retention plan that turns temporary crew gigs into rewarding, long-term employment.

Physically grueling. Long hours. Intense stress. 

Doesn’t exactly make for an enticing job posting, does it? Yet, those are too often the realities of construction work. No wonder construction companies have such a tough time keeping their crews intact.

The construction industry is unfortunately renowned for having very high turnover rates, with nearly 16% of construction workers in Canada leaving their jobs within a year in 2023. In the US, annual turnover in construction is even higher, averaging around 20-30%.

That level of churn wreaks havoc on everything from your profit margins, your focus levels and your team morale. As an owner, your attention should be on running your business, not fretting about finding staff.

If you’re a builder, renovator, remodeler, painter, roofer or other home services provider, chances are you rely on the people in those tough roles to get the job done. You need them. But you also need them to stick around.

In this article, we’ll cover tips contractors can use as part of their retention strategy to build rock-solid crews that don’t just get the job done, they stick around for the next one… and the one after that… and the… you get it.

Smash the stereotype

One of the biggest obstacles you’re up against when it comes to hiring construction workers is cultural perception. Society often considers these jobs to be temporary grunt work.

You need to de-💩-ify these roles.

Instead of referring to them as unskilled jobs, look at them as entry-level positions, and the people who fill them as unsung heroes. 

Then treat them accordingly. Offer a gateway to greatness. If employees feel like the work they do actually matters and carries potential for bigger things, they’ll be less likely to flee, even when the going gets tough. 

Everybody starts somewhere. Make them want that place to be on one of your projects.

Pick good people

Breakthrough Academy has found that 35% of contractors struggle to tell whether a candidate will be a good fit for a role. That challenge only amplifies when it comes to filling construction jobs.

This is because the roles usually don’t require heaps of experience, so the candidate pool can be enormous, which then begs the question: how should you decide?

Our advice? Hire for personality, train for skill. If you attract reliable staff to begin with, you can teach them what they’ll need to truly thrive. 

This quick video runs through some proven tactics you can use to maintain a roster of A-players and help keep your employee retention strong.

Offer a solid start

Once you’ve made a new hire, set the stage for their success by providing them a formalized onboarding program. This is the most pivotal time for training, and one of the biggest reasons why people quit.

Ideally, your onboarding program walks them through the fundamentals of the job, gives them access to clear SOPs and pairs them with one of the more skilled and experienced workers on your team who can mentor and bring them into the fold.

Based on our research, only 6% of contractors provide a proper onboarding program, so this is one area that will really make your employee value proposition (EVP) stand out.

Not sure where to start with creating an onboarding program, SOPs or an EVP? We can help! Systems are totally our thing.

Run smooth projects

There’s a saying that people don’t quit jobs, they quit bosses. Nowhere does that adage ring more true than on a job site. Chaotic projects will absolutely chase crews away, which means organized ones are an incredibly easy way to keep crews.

Well. We say easy… but obviously it’s not that simple.

Project management is an art form, and construction companies with projects that are under control, offering safe work environments and well-planned schedules will have their pick of top-notch people to choose from.

That’s why it’s imperative you have a project manager who shows appreciation for the team and engages in open communication. Employee retention at the bottom of the ladder starts with good leadership at the top.

Do check-ins

Rather than waiting to hear about an employee’s grievances at their exit interview when they’re already heading out the door, hold regular “stay” interviews with them instead.

These meetings are a chance to touch base about how the employee feels, what sort of ambitions they have and to discuss any challenges they’ve been encountering.

This can take the form of Goal Setting and Review (GSR) sessions, which help to promote accountability and keep the employee on track. It also allows your leadership team to get in front of any simmering problems on the job site.

And in cases where a construction employee just isn’t working out (hey, it happens…) you can deal with it before things get out of hand.

Give room to grow

Remember what we said about treating construction jobs as launching pads for bigger things at your company? There are a TON of ways to do that.

Show there’s a path for career advancement for workers to eventually move into lead roles or foreman positions. Sponsor apprenticeships or provide tuition reimbursement for training programs so they can earn their trade certificate. 

Whichever avenues you decide to explore, this can go a long way towards enhancing both your business and a team that’s dedicated to your company for the long term.

Meet your ideal candidates’ needs

The construction workforce has changed a lot, becoming more multifaceted than ever, which means their expectations have also evolved from past decades.

To usher in the new generation of construction workers, think about what benefits you can offer that will have a significant impact on their work life balance, not just their bank accounts.

Can they have health insurance? Retirement contributions? Mental health support? Paid time off? Flexible working hours? Travel allowances?

The best candidates will have options. Put together an EVP package that’s tough for them to turn down.

Master Tip: How to afford it

Despite recognizing the importance of offering a competitive compensation and benefits package, there’s probably a voice at the back of your mind wondering… sure, but can we afford to do all this?

Fair question. And you definitely can, with thoughtful financial management practices. What does that entail? A clear budget and a plan on how you’ll make the revenue to sustain it.

Turnover is expensive. Ignoring it is even more so. But the more systemized you are… the more people will want to work for you.

Find out where you stand with this five-minute quiz and get a custom Contractor Growth Scorecard.

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