Staff Retention Strategies

How can you boost employee satisfaction, reduce staff turnover rates and improve staff retention?

Discover the answers to these questions and more as we explore the critical factors influencing employee turnover, its impact on your business and our top 5 actionable employee retention strategies to keep your team engaged and committed.

What is Employee Retention?

Employee retention refers to a company’s ability to keep employees over time. It’s when employees choose to stay with the company and avoid seeking other job opportunities.

Employee retention is measured by the retention rate – the percentage of employees who stay at the company during a set period.

Different companies and sectors will have varying retention and turnover rates. For example, hospitality has the lowest retention rate at 48% per year. Another industry with a low employee retention rate is retail, which has a rate of 66.4%.

In the construction industry, the retention rate can vary by role. For example, a survey suggested that only 28% of project managers are happy in their current role, which could lead to low retention rates.

In another survey, one-third of architects stated they were considering leaving their current employer.

Employee Retention vs Employee Turnover

Employee retention focuses on keeping employees within the organisation, while employee turnover refers to the rate at which employees leave and are replaced.

Employee retention rates focus on the percentage of employees who remain in the organisation. Employee turnover rates, however, refer to the rate at which employees leave an organisation. You can calculate the retention rate from the turnover rate, and vice versa.

For example, the average turnover rate across all industries in the UK is 34%. This means that the average retention rate would be 66%.

The retention rate formula is 100 – the turnover rate. Simply subtract the turnover rate from 100 to get the retention rate.

The Importance of Employee Retention

Employee retention can have a direct impact on business performance. It can impact factors such as finances, productivity, morale, knowledge retention and client relationships:

Finances

Recruiting, hiring and training employees can be very expensive. On average, the cost of replacing employees can equal 6-9 months of their salary. These costs can add up over time, and quickly drain a company’s finances.

The cost of training employees can vary depending on the nature of the role. You may also have to consider accreditations and certifications. For example, architects must pass the Architect Registration Examination (ARE) to become licensed, which can cost a minimum of £120.

Productivity

New employees can take longer to reach optimal productivity levels. Additionally, training new employees can take time away from other staff, including managers.

Employees leaving and new employees joining can cause disruptions to workflows and the remaining staff may need to take on extra work. Retaining your existing employees can ensure a steady workflow and optimal productivity levels.

In the construction industry, productivity fell by 2.1% in 2017, which correlated with rising employee turnover rates. This suggests that turnover rates have a direct impact on productivity.

Morale

High employee retention rates can boost morale. Keeping employees on board is something to be proud of, and can create a sense of unity. However, seeing colleagues leave can be demoralising for existing employees, which could lead to de-motivation and a lack of engagement.

Knowledge Retention

The longer an employee is in their role, the more they learn about the industry and the company. Long-term employees accumulate and retain valuable knowledge.

However, when they leave, so does their knowledge, expertise, and insights gained from personal experience (which can be difficult to document).

This could impact operations and potentially disrupt ROI. It can take a while for new employees to acquire the same level of knowledge.

The impact can be worse when managers and leaders leave a company. For example, project managers typically possess valuable insights – and when they leave, it can impact communication, operations, morale, strategies, and client relationships.

Client Relationships

When an employee has worked for a company for a long time, they will often have established relationships with clients and stakeholders. High employee turnover can affect these relationships, and have a negative impact on client relationships.

For example, a project manager who has worked with a client on various projects will have an understanding of their preferences and needs. They will be able to execute the project smoothly and maintain positive client satisfaction. When they leave, it can take time for a new employee to develop a positive relationship.

Employee Retention Challenges

One of the biggest employee retention challenges is the competitive job market. In the UK, it is becoming easier than ever to switch jobs. The younger generations (Gen Z) spend an average of 1.7 years in each job. However, the ‘baby boomer’ generation spends an average of 5.7 years in each job. This can be a huge challenge for employers hoping to retain a younger workforce.

Some industries also face a high demand and low supply, or a skills gap. This is especially true in sectors such as healthcare, tech and construction.

In the construction industry, for example, the demand for skilled construction professionals is rising. The sector needs around 937,000 new employees in the next 10 years to keep up with the demand, according to the UK Trade Skills Index 2023.

Due to this skills gap, construction professionals could also get poached by other companies, with the rise of networking platforms such as LinkedIn. It is important to conduct regular reviews with employees and check in on the headspace of employees. Communicate clearly to understand their needs.

Improving employee retention rates can be difficult if there is a lack of career growth. Take the construction industry, for example – many young people associate construction with manual labour without much progression. However, this is not the case – there is plenty of room for progression in roles such as quantity surveyors and engineers.

Here is an example of the career progression for a Quantity Surveyor:

1. Entry level – graduate or junior surveyors
2. Intermediate role – managing larger projects with more independence
3. Senior Quantity Surveyor – leadership roles, mentoring, and managing more complex projects
4. Managerial position – roles such as Managing Quantity Surveyor or Commercial Manager

Quantity surveyors can also specialise in fields such as consultancy, claims resolution or cost management, allowing them to diversify their careers and maximise their salary and career satisfaction.

Top 5 Employee Retention Strategies

Now you understand the ins and outs of employee retention, as well as the potential challenges industries in the UK face when retaining staff, let’s explore some of the best ways to improve staff retention.

1 – Offer Opportunities for Growth

82% of employees would quit their jobs due to a lack of career progression, according to a study by CareerAddict.com. If you provide employees with clear and achievable pathways for advancement, they will be much more likely to stay at your company.

For example, consider mentorship programs and workshops to encourage skill development. Be sure to regularly assess (and communicate!) potential employee career paths within the company. Work with employees to create personalised development plans – this can motivate them and prove you care about their career growth.

2 – Build a Positive Culture

Around 12% of employees consider company culture the most important factor when looking for jobs. Culture is something all employers should consider and work towards improving – a strong and positive culture can promote loyalty. There are several ways you can do this to improve staff retention:

• Recognise and Celebrate Achievements – Whether it be team, business or individual accomplishments, sharing and celebrating these can boost morale and be a powerful motivator.
• Promote Transparency – Encourage open communication between management and staff. Having everybody on the same page about the company or project’s goals and values can make a huge difference.
• Consider Diversity – Prioritise diversity and inclusion – all employees should feel valued and respected.
• Promote Work-Life Balance – Consider flexible working hours or remote work options. Even in industries such as construction, there are flexible working and remote work opportunities for roles such as quantity surveying, project management, and building surveying, among others.

3 – Give Your Employees The Training & Tools They Need

Provide ongoing training and ensure staff are supported. This could involve giving them access to the right tools, or prioritising skill development. This is key to employee success and satisfaction.

As well as professional support, consider implementing wellness programmes and other supportive resources – this can support their overall well-being.

4 – Create a Great Onboarding Experience

Onboarding sets the tone for an employee’s experience with your company. Ensure that the onboarding process is clear and structured, slowly introducing the new employee to the company’s policies, culture and expectations. Conduct regular check-ins to address any concerns and answer any questions.

Onboarding is the first point of contact that candidates have with an employer – and is a key time to set the standard. A positive recruitment experience can enhance the onboarding experience. At Strategic Resourcing, we can streamline the recruitment process.

5 – Recruit the Best Employees

Recruiting the best – and the most suitable – employees can directly affect retention rates. When you prioritise hiring the best staff, you’re more likely to find suitable candidates who align with your values, culture and requirements. This can lead to higher job satisfaction – and ultimately, higher employee retention rates.

At Strategic Resourcing, we only supply you with the best candidates for your construction company. We offer 3x CVs for vacancies that have been pre-qualified by our talented construction recruiters. You’re in expert hands with Strategic Resourcing.

Hire Top Construction Talent Today

Are you ready to find the best employees for your construction company and reduce staff turnover rates? You’re in the right place.

At Strategic Resourcing, we are on hand to select candidates who are not only skilled but align with your company’s values and culture. You can also build your own preferred supplier listing so you can find your perfect fit more quickly.

We understand the value of existing recruitment relationships – which is why our platform allows you to onboard your current partners for free! You can expect pre-vetted applications within just seven days of posting the listing.

Utilise your existing recruitment relationships while reaping the benefits of our platform. Save the headache when finding skilled construction professionals with Strategic Resourcing!