Retention of top talent is a recurring conversation we are hearing this week and an emerging priority of employing organisations. This becomes a more pressing concern when we consider the latest research for employees:-

• Only 46% of professionals at the current time are satisfied with their current job;

• 39% are open to opportunities; and 

• 38% of Australians are looking or planning to look for a new job in the next 12 months.

Whilst the construction industry is facing some unique challenges with supply chain issues and skill shortages, these figures are representative of all industries, so the discussion on retention is one that affects many employing organisations.

Gadens reported last month that as countries around the world are facing the economic effects of COVID-19 by undertaking infrastructure projects and stimulating domestic construction, this has impacted global construction markets by creating:

• a shortage of some building materials;

• unpredictability in whether materials will be readily available when required; and

• upward pressure on labour and materials costs.

At present the Australian economy is experiencing a shortage of several building materials, which include structural and engineered timber and products containing semiconductors and other electronic componentry.

The reasons for these shortages are well documented and are expected to continue for the medium term. ABC News has reported that while domestic timber production is up 17%, there are major delays and soaring costs up and down the building supply chain due to a global timber shortage.

With organisations returning to growth and expanding in the wake of the COVID-19, it’s no wonder that there is a renewed focus on attraction – but this should not be to the detriment of retention.

Whilst staff turnover can be costly and stressful, currently the supply and demand ratio is tipping in favour of highly skilled professionals in the construction industry. Retention therefore makes sense as a strategy to fortify against skills shortages.

With a significant percentage of skilled professionals already looking, or planning to look, for a new job in the next 12 months, retention needs to be prioritised. 

So, how can you improve employee retention? 

When we examine the reasons why people plan to look for a new job, the foundations of a successful employee retention strategy become clear.

 

Topping the list is a lack of promotional opportunities, cited by 43% of people who plan to look elsewhere. This is followed by an uncompetitive salary (39%), poor management style or workplace culture (37%) and a lack of new challenges (33%). 

The good news for employers, is that salary ranks second in the list of factors in why employees want to find new jobs. It appears the lack of promotional opportunities is the most impactful. The research indicates however that only 16% of employees expect to receive a promotion in the year ahead. 

To stem attrition of top talent, employers can revisit their development, progression and provision pathways a priority once more even in these tricky times. 

Planned and consistent communication, planning and collaboration with employees is needed to retain highly motivated employees who are driven and committed to succeed. Crucially, this starts with one-to-one conversations about employee career goals to ascertain what drives your talent, and where they see their career heading. 

Then consider how you can support the challenges they face with supply change issues, rapidly changing conditions, shortened deadlines, escalation of priorities and mobilisation, remobilisation and demobilisation issues.

Is it feasible to provide defined stretch-opportunities and reward outside of their usual remit? Can you offer training or coaching opportunities? Can you offer a promotional plan with suitable KPI’s in place to keep them motivated? Can you set up a mentoring program to support employees develop their skills and competencies required for promotion?

Workplace culture factors in 37% of reasons why talent leaves. Your talent will thrive in a culture that has a program to regularly to discuss progress, address work-life balance, support their mental health and wellbeing, and take the time to manage any salary expectation gap.

With many professionals clearly not content in their current position, don’t leave your talent thinking their only option to improve their career prospects is to look elsewhere. 

Employers obviously juggle many issues, and the current climate is simply adding balls to the mix. It may seem that addressing retention is one too many problems to solve. The truth is, if addressed early it will keep you from losing your top talent in an active jobs market. 

We’re happy to find and replace talent for you of course, after all, that is our expertise and we do it exceptionally well. But we know that replacing top talent affects not only cashflow, but the time lost in upskilling and getting someone up to speed, no matter how talented they are. 

With employers adding to their headcount and the jobs market active, anyone who isn’t completely satisfied in their job will consider their options. So, unless you address retention now, people could begin to wonder if the grass is greener elsewhere.

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