What Motivates Your Construction Labor Force?
By Megan L. Craven, CPA
Over the past several years as the economy has started to turn around, many construction companies are faced with a shortage of experienced workers and high turnover rates. The companies are left wondering how they can close the retention gap. AARP estimates that 10,000 baby boomers are retiring each day. As this generation leaves the construction industry, Millennials and Generation Z’s step into the workforce. Therefore, it’s crucial to consider what is important to these newer generations in order to attract and retain them.
Oftentimes, it is believed that higher compensation will attract and retain employees. However, base salaries alone will not retain employees, and many construction companies are focused on adjusting their health insurance, bonus, and deferred compensation plans to incentivize employees to stay. While, this practice rewards high performing individuals and teams monetarily, studies show it’s equally important to consider non-monetary desires as well.
Growing up in a rapidly improving technological world, the newer generations are not only accustomed to receiving instantaneous feedback, but they expect it. Based on a recent Gallop survey, the newer generations seek continuous feedback and collaborative goal setting. Goals should be specific and measurable, under the individual’s direct control, and linked directly to “timely rewards” after achieving these goals. In addition, employees look for flexibility in their schedules to ensure they have the proper balance between work and home.
Some say the key to motivating and retaining employees is to align the employee’s goals and related awards with the Company’s short and long-term goals. Do you know what motivates your Company’s employees? How are you rewarding and retaining your employees?