In today's job market in the construction industry, the power lies in the hands of employees, and leaders are finding they are working harder than ever to retain their workforce. People are no longer satisfied with a steady job in our current economic climate. Employees, particularly high performers, expect more.

Research reveals the cost of losing an employee is a staggering 33% of their annual salary. When placement fees, training and lost productivity are taken into account, a high turnover rate can have crippling financial implications for a business.

In this article, we will discuss the five main issues to empower leaders to combat turnover problems, how to create an effective employee retention strategy and how to create a better employee experience.

1.      Great Managers Fuel Employee Loyalty

People rarely begin their jobs feeling unhappy. It is a slow and steady decline that is preventable with the proper measures. Logically, how employees rate their direct manager, or supervisor's performance affects loyalty and the readiness to shift to a new job. For those interviewing for a new job, 40% rate their direct report poorly, and 10% rate their direct report highly. Employees who rate the performance of their direct reports poorly are 4x more likely to be interviewing elsewhere. Before leaders can foster employee loyalty toward their employers, they first need to cultivate loyalty toward their managers.

Some interesting facts the research revealed:-

• 30% of talent on the move felt a lack of loyalty due to their direct report's performance
• 23% of employees are more likely to stay if their direct report clearly explains their roles and responsibilities
• 16% of employees that don't feel comfortable giving upward feedback are less likely to stay

Key: Direct report performance is critical to the success of a retention strategy

Combat with:

• Invest early in management training and provide continuous support to help leaders grow their people skills – an area sorely neglected at many companies.
• Management performance evaluations should go beyond metrics and also take into account feedback from team members;
• A clear role definition is a crucial requirement for employee engagement and retention;
• Introduce training for management to welcome open and honest communication and act on feedback to develop loyalty toward managers and, by extension, the company
• Hire and train for empathy and communication skills, rather than simply technical ability.

2.      Recognition is Key

Recognition is important because it helps validate the time and effort we expend at work. Employees want to know that their roles are meaningful and impact the business's success and, critically, that their team members acknowledge this too. Employees who feel under-appreciated are unlikely to stay with their employers. For those interviewing for a new job, 21.5% felt not recognised for great work, and only 12.4% felt they were recognised. Employees who have not received recent recognition are 2x more likely to be job hunting.

Some interesting facts the research revealed:

10% of talent is moving because of a lack of recognition when they do great work.

34% of employees who do not feel valued at work are 34% more likely to leave.

Key: Frequent information recognition is a highly effective tool for retaining high performers
   

Combat with:

• Recognition can come from any level of an organisation. Workplaces that enjoy high retention rates incorporate upward, peer-to-peer and cross-functional recognition into communication streams
• Direct reports that provide genuine, frequent, informal recognition of their employees have a significant impact on retention
• Employers need to demonstrate they care about their employees and their work to retain their workforce
• Humanise the employee experience and show you care for your employees as individuals
• Treat employees how you would want a loved one to be treated when placed in a similar situation
• Managers who are emotionally invested, empathetic, and prioritise how they want employees to feel retain their workforce

3.      Employees Crave Work-Life Balance

While it's easy to prioritise work when it offers challenges, excitement and emotional fulfilment, employees will quickly feel exploited in a role that tips them into overload. Burnout happens even for employees with the most GRIT and biggest salary packages. A salary raise may work effectively as a band-aid, but overworked employees will likely start reviewing their exit strategy before long.

Some interesting facts:

10% of employees who rate their work-life balance highly are more likely to stay

Key: Jobs that put an unreasonable amount of strain on personal lives are unsustainable for most employees

Combat with:

• Find out what motivates your team to go the extra mile – are they happiest when learning new skills or thrive on the freedom to execute their ideas?
• Tailor management styles to get the best from every team member
• Promote efficient practices and resource, enable and empower your teams correctly
• Provide schedule flexibility
• Set realistic goals and timelines with the teams, rather than delivering top-down expectations
• Retrain and redirect cowboy tendencies to take the glory at the team's expense and cost
• Reward smart work over hard work
• Check in regularly where time is being spent and what processes can be streamlined
• Incorporate life, joy and passion into the work environment to blur the lines between the professional and recreational to bring more energy to both spheres

4.      Culture Beats Compensation Any Day

Developing a great culture is a vital part of fighting attrition. For the 2022 workforce, a job is more than the salary package. Employees want to grow meaningful relationships in a great cultural environment and have a sense of purpose.

While benefits are crucial, leaders must understand how to compete in the cultural arena and use culture as a point of differentiation to attract and retain the best people. Talented people naturally gravitate towards environments that allow them to achieve their best work, and successful organisations today are investing to meet their needs.

The research reveals how employees view their company culture has an even more significant impact on turnover than how they view their benefits package.

Some interesting facts:

26% of employees who report a low level of respect are more likely to quit

24% of employees who rate their employers' culture poorly are more likely to leave

11% of employees who highly rate their benefits package are more likely to stay

27% of employees are more likely to stay at their companies who believe their company has a higher purpose than just profits

Key: Culture is a top priority to employees looking for new opportunities and retaining existing employees

Combat with:

• Don't build your culture in a vacuum. Work with employees and representatives at all levels of your organisation to co-create your future. Build, understand and communicate this to attract and retain
• Have a clear mission statement
• Align your leadership with your cultural initiatives and hold them accountable to company values
• Differentiate your company values, so you do not appear inauthentic
• Interview and take cultural preferences and expectations into account when hiring – people who are poorly suited to their company are less likely to stay
• Foster healthy internal relationships that promote mutual respect between co-workers and avoid the 'toxic work environment' label
• Put your money where your mouth is. Plan to allocate a part of your budget to cultural initiatives and determine how resources will be used to deliver on employee feedback.

5.      Professional Development is a Talent Magnet

Companies that support their employees in their professional development are less likely to have problems with turnover. Access to professional development opportunities is a top priority for today's workforce.

The more talented an employee is, the more likely they will be looking to expand their skill set further. Career pathways are an essential part of a retention strategy. Employees who feel supported in exploring their professional interests are less likely to leave their companies.

Some interesting facts:

20% of employees who feel they are progressing will still be working at their company in a year

20% of employees who feel in control of their career are more likely to stay

93% of employees would stay longer at their companies if they invested in their careers

Result: Employees who don't feel supported in their professional goals are 3x more likely to be job hunting

Key: Employees expect upward mobility in their organisations

Combat with:

• Managers should work with their team members to outline their professional goals and establish a clear career path for employees to follow
• Weed out managers that take a competitive view of colleagues rather than a collaborative view
• Keep employees engaged by offering the freedom and flexibility to work on projects they are passionate about
• Provide opportunities for promotion and increased responsibilities to stave off boredom in high performers
• Implement small cost but big benefit programs, e.g. a free book initiative, where if employees want to buy a book to advance their career, the company purchases it
• Consider mentoring and coaching programs for employees to work on a variety of career issues, improve performance and skillset and reveal core themes across employee groups.

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