Construction Industry Employee Retention Strategies

HOW DO YOU RETAIN EMPLOYEES IN CONSTRUCTION?

As demand for new builds and infrastructure surges, construction employers face rising pressure to retain skilled workers.

The construction industry reports an average annual turnover rate between 20% and 30% among tradespeople, foremen, and site managers. Among workers under 25, turnover reaches 38%, signaling a critical need to engage younger talent. Retention improves when employers focus on what matters most: building career pathways, improving safety, and creating a culture of respect and recognition. HR teams that leverage AI-driven prediction strategies, like those used by Retensa, will reduce employee turnover.

What Are Top Turnover Trends in Construction?

The construction industry must hire approximately 723,000 workers annually just to meet demand and replace those quitting or retiring. Fewer employers offer traditional entry points like summer jobs or part-time roles, shrinking the talent pipeline. Schools and employers expose fewer students to construction early. High turnover leads to missed deadlines, increased safety incidents, and reduced project quality. Retaining experienced workers is no longer optional, it’s essential.

What is the Cost of Turnover in Construction?

Replacing a skilled construction worker costs between 50% and 250% of their annual salary, with higher costs for specialized roles like electricians or engineers. These costs include recruiting, onboarding, lost productivity, and increased material waste due to errors. It is also well-documented that new staff increase average on-the-job injuries.

Retention is a cost-effective strategy. Keeping just a few experienced crew members can preserve project timelines, reduce rework, and improve site safety.

Why Do Construction Workers Quit?

Construction employers face rising turnover as burnout, limited career growth, and poor management drive workers to quit. Retensa’s 25+ years of retention research shows that work-life imbalance, low pay, and inconsistent benefits push talent elsewhere, while poor leadership and lack of appreciation erode morale. Safety concerns and physical strain also contribute to higher turnover rates. Workers and site leaders don’t quit because they dislike hard work, they quit when they feel unsupported, undervalued, or stuck. Construction employers that prioritize training, recognition, and inclusive leadership foster stronger engagement and longer tenure.

How does Retensa Help Construction Employers Retain Talent?

1. Retention Skills Training

Retensa trains superintendents, general managers, and site leaders to engage and retain their crews. They build these sessions using a construction company’s employees’ own feedback.

2. Turnover Prediction

Retensa’s predictive models and AI algorithms uncover which workers are likely to quit and why. As a third party, Retensa creates a safe space for honest feedback and deliver insights that help construction firms improve retention across roles and job sites.

3. Employee Intelligence Tools

Retensa’s Retention Diagnostic identifies where a construction company excels and where it can improve, providing clear, actionable recommendations to reduce turnover, improve morale, and retain your best workers.

RETENTION STRATEGIES FOR EVERY INDUSTRY

Our Expertise Across Sectors

Retensa’s retention strategies benefit a variety of industries, from healthcare to technology. Our tailored solutions enhance workforce stability and engagement, proving effective across diverse organizational landscapes. Discover the breadth of our impact beyond retail.