In our experience, we have noticed that high employee turnover in construction can be an issue. Whilst we have a 100% success rate on all our own exclusive assignments of matching candidates to clients, we are aware that the industry does not always experience that level of success.

Some projects have a large turnover of employees with people continually leaving and new employees taking their place. Unfortunately, some owners or managers have an attitude that it’s ‘good riddance’ and if someone wants to leave they should – and the sooner the better. 

However, this churn of people can be disruptive and expensive for the project and be hiding underlying problems that are damaging your reputation and ability to attract top talent, contractors and suppliers (including recruiters).

1) Increases recruitment costs. Often there are advertising costs, recruitment fees and management time required to interview potential recruits;

2) May develop a reluctance to enlist and pay professional recruiters and take a DIY approach that creates churn through ineffective screening and engagement of candidates;

3) Sometimes requires the replacement comes at a higher salary;

4) Often sees the best employees leave first;

5) You can damage your reputation as an employer or choice, a desirable company to work with, or be seen as a sinking ship;

6) Causes the project to lose a skill which has to be replaced, which could take some time. Without the skill, certain tasks may not be able to be done. Others might have to fill in for the missing person and work overload can reduce productivity;

7) Can cause a problem when there’s a shortage of skills to replace the person leaving, and the person may not be able to be replaced;

8) The absence of a vital skill such as a crane operator may mean that others can’t do their tasks until there’s a replacement operator;

9) Means each time a new employee arrives on site they have to learn the project rules and processes, which may take time before they become effective, resulting in lost productivity;

10) Creates additional employment expenses, such as; medicals, inductions and personal protective clothing;

11) Results in other employees having to shoulder more responsibility and do more work in the absence of the person that’s gone;

12) Can impact morale since those left behind find the continuous churn disruptive and disconcerting and they start to consider if they should also be leaving;

13) When those in management leave there’s often a knowledge gap and the new person has to understand the project, the team, the client and what’s been done and what they have to pick up. Often vital information can be lost especially pertaining to variation claims. Sometimes tasks fall between a gap and are left undone until they eventually become a problem and a delay;

14) Often employees considering leaving the project are less productive than they should be. They can be disinterested in the task at hand and consumed with making arrangements for their next job. They may be actively engaging other workers and spreading their discontent with the project. Employees working their notice time can be particularly disruptive with no interest in the project at all.

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