It's All About the Money, Until Its Not
Everyone wants more money!
I’ve never met a person who would turn down more money for their existing role. More money means more security and more options in life. In the few years since 2020, the construction industry has experienced significant disruptions to compensation norms. During the so-called Great Resignation, many contractors lost employees in every department to the promise of more money from competitors.
They say it’s the money, but that’s not the whole story
Speaking with construction executives, it would seem that the number one reason people left was for money. Employees exited with a shrug and an apology that they simply had to take the chance to make more money for their families. The data on this doesn’t totally hold up, though. In several surveys focused on high levels of employee turnover from 2021-23, compensation was certainly at the forefront, but it was followed very closely by culture complaints and a lack of advancement opportunities. These surveys illustrate that what employees say to supervisors differs from what they’re really thinking.
Employee Satisfaction Drivers
Having worked with many contractors to reduce turnover and improve stability in key positions, the Well Built team has identified seven key drivers of employee satisfaction that, when optimized, lead to a dramatic decrease in undesirable turnover.
High-integrity leadership. This is top for a reason. Ensuring you have leaders worth following atop every department and project team is essential for employee satisfaction. I’ve seen way too many good people quit companies they like because they’re working for people they can’t respect.
No tolerance for the wrong people. If the number one driver of dissatisfaction is working FOR the wrong people, the number two driver is working WITH them. Companies must live their values, hire more carefully, and make the necessary hard decisions and remove people who clearly don’t fit.
Appreciation. People need to know that their hard work is appreciated by those around them. There are many ways to show appreciation, most of which are free, and it shouldn’t be the sole responsibility of supervisors. The happiest employees are in cultures of gratitude, where people feel appreciated by the whole team around them.
Training and development. People love feeling like they’re great at their jobs. Companies that give people the skills and knowledge they need to perform at a high level in their roles tend to have happier employees. In addition to making people more productive in their roles, they also appreciate the company’s investment in their future.
Opportunities for advancement. All that training and development must be coupled with opportunities to move up in the organization. A strong track record of promoting from within is a hallmark of a positive culture.
A sense of significance. People like to know they’re working toward something that matters to them personally. Well-written vision and mission statements can align and inspire teams, providing fuel to take on the toughest tasks.
Competitive merit-based compensation. Income definitely matters, and the companies doing compensation right educate themselves about the market rate for compensation and keep wages competitive. The best companies often don’t pay at the very top of the market. They have the above 6 drivers in place, and employees have too many reasons to stay.
Focus on the total package.
It takes hard work from every team member to succeed in the construction industry; pressure comes with the territory. Focus on creating a great environment for your people, and you’ll attract way more talented people than you lose. And if you’re like most of our successful clients, people will regularly come back after finding the grass was not greener after all and the extra couple of bucks wasn’t worth the tradeoffs.
The Spark Notes:
In the construction industry, pursuing higher pay during the Great Resignation has been palpable, but it's not the sole motivator for employee turnover.
Surveys reveal that while compensation plays a significant role, issues like company culture and advancement opportunities influence employees' decisions to leave.
The Well Built team has identified seven key drivers of employee satisfaction: high-integrity leadership, no tolerance for the wrong people, appreciation, training, advancement opportunities, a sense of significance, and competitive compensation.
Successful companies in construction prioritize these drivers alongside competitive compensation, understanding that a fulfilling work environment attracts and retains top talent, even amidst industry pressures.
