The significant shortage in the skilled labor workforce is no secret. Recruiting and hiring talent has been a top concern of contractors for years, with 87 percent of construction professionals citing it as a primary issue they faced in 2019, according to the National Association of Home Builders —steadily rising each year from the 13 percent who cited it in 2011.
While you should always focus on adding new talent and growing the number of employees you have, training and retaining your existing employees is the most cost-effective strategy to combat the labor workers shortage. In fact, some studies show that replacing an employee can cost as much as twice their annual salary due to costs associated with the hiring process, training, decreased productivity and new-to-the-job errors.
Retaining employees can be easier in theory than in practice, but with a few considerations and actions in how your business operates, you can keep employees for years to come.
Incentivize Employees with Training and Development Programs
Some employers make the mistake of ending an employees’ training once they have learned enough of the basic skills to complete the tasks at-hand, or only offering occasional, required training. This can lead to employees losing interest in their work, becoming apathetic and, ultimately, pursuing opportunities elsewhere.
Instead, companies should focus on how they can continue to develop employees’ individual skill sets and strengths, while identifying skill gaps and company needs. This more focused approach to continued learning is strategically conducted to align employee growth with your long-term business goals.
This can be done in a number of ways, depending upon your company’s needs. Some options for development can include:
- Allowing accomplished employees to take on more challenging work
- Providing the opportunity for trusted workers to tackle portfolio projects
- Assisting in affording certification programs such as LEED
- Cross-training workers to perform different tasks such as project management, sales or trade roles
- Hosting industry workshops or discussions to increase technical knowledge or boost company culture
Additionally, companies can allow less-tenured employees to shadow or receive mentorship from experienced colleagues. Any of these tactics can help empower employees and make them more likely to stay with your business.
Develop a Pathway to Leadership
There comes a time in every company when a member of management or leadership will part ways and need to be replaced. Hiring a manager-level position can be a daunting task that requires more time, cost and attention compared to hiring an entry-level employee.
Cultivating talented employees from within your organization helps develop leaders for these roles that are heavily invested in your company and culture. It has the added benefit of exemplifying to younger employees that they will have opportunities for growth and added responsibility. The result is that your company will not only retain top talent, but that it is helping to create talent—boosting your reputation as an industry leader.
The Impacts of Employee Retention
While training and developing employees can save you time and money when compared to hiring new talent, the benefits are far greater. Educating and empowering employees helps spark innovation and open the door for new ideas. This can lead to an increase in efficiency and performance, and provide your business with new opportunities for growth.
In today’s age, employees expect more from their employers than a paycheck. By offering them advanced training, mentorships, or any of the growth prospects discussed previously, employees will feel you are investing in their future and wellbeing—increasing morale and creating an invigorating career experience.
Creating a Training and Development Program
If you’ve tried to revamp your workplace training and development opportunities, you’ve probably learned it can be difficult. From identifying skill gaps, to recognizing potential internal talent, to selecting the best methods for you, to measuring results—it can be exhausting. Plus, it’s difficult to prioritize when you have homeowner projects underway and on the horizon.
At Modernize, we understand the industry and the complex challenges that come with it, including employee retention. We can provide you with industry-leading best practices to include in your training programs, and help you grow your career development offerings to boost retention.
Building a strong foundation for continued employee training will help you prepare for the future of your company and position it as a leader amongst a field of competition. It will further boost your ability to recruit new talent, and increase profitability.
Contact Modernize today to learn how you can transform your training and development opportunities and make real impacts on your future growth.