How to Focus on Employee Retainment During a Recession
As we deal with a downturn in the economy, construction employers will face a familiar foe: the labor gap. From 2007 to 2011, during the Great Recession, over two million skilled laborers left the construction industry. Some retired, while others moved on to other industries, yet the vast majority of these professionals never returned to the industry.
Now that we potentially face another recession, employers must deal with a variety of unique challenges, including successfully retaining their most valued employees. Right now many employees of construction businesses are concerned about their future. They may see opportunities to transition elsewhere, or they may be considering changing careers. In this article, a Colorado Springs construction lawyer will discuss how you can retain your top talent even during uncertain times. For employment law advice, consult a Colorado Springs contractor attorney at Cotney Attorneys & Consultants.
Related: Bridging the Skills Gap
Why Do Good Employees Leave?
There are a myriad of reasons why talented workers leave a business. Uncertain times like the present can only increase the chances of this occurring. Employers shouldn’t make the mistake of assuming that because they pay their employee a salary that it is enough to keep them at the company.
Whether a company needs to conduct layoffs, scale back their budget, eliminate many workplace perks, or the company culture and morale has taken a hit due to difficult times, employers should ramp up their efforts to entice their top talent to stay during difficult times.
The most common reasons why employees leave, include:
- Pay and Benefits: money talks and remains the primary reason why employees leave one company for either a competitor or a new career.
- Career Advancement: employees that have an opportunity to advance more quickly with a competitor will seek this chance to take on more responsibility.
- Mentoring Opportunities: professional growth opportunities go beyond just pay and job titles. Mentorship is always an important factor in any career decision.
- Additional Experience: many employees will be attracted to opportunities to seek additional experience, whether it’s in their current role or a new one.
- Company Culture: Flexibility and an engaging company culture are becoming more in-demand especially among younger employees looking for the right opportunity to grow.
All of the above reasons why employees leave boil down to one thing: employees want to feel valued. Employers need to provide opportunities for their most valued employees or else they risk having them leave to explore new opportunities.
How You Can Encourage Employees to Stay
Thousands of businesses in the coming months will have to balance payroll deductions while trying to retain their most valued employees. Even if you manage the process of terminating employees effectively, there will still be some remaining employees concerned with your company’s viability or harboring negative feelings about their coworkers’ loss of employment. Employers cannot ignore that these feelings will exist. They must communicate with their workforce, dispel any rumors, and let their employees speak their mind. Most importantly, they must set a tone of optimism and focus on ways they can improve their company culture during trying times.
Here are some ways employees can improve their work culture during uncertain times and retain their most valued employees:
Begin By Listening
During economic downturns, workforces may need to be reduced, services may be altered, and processes may need to be changed. Listen to the suggestions of your most valued employees. Listening and communicating can improve morale while improving processes by taking the advice of the workers that know best about their processes. You can improve efficiency and your employees will feel valued.
Rewards for Outstanding Work
Employers may need to reduce their budget and eliminate bonuses during challenging times, but it’s important to not eliminate all incentives or you may see your top talent move on. Even if you’re working with a limited budget and can’t warrant raises for your best employees, you can offer other types of rewards, including monetary rewards for accomplishments or company-wide recognition.
Along with clear communication, monetary rewards, and recognition, sometimes the best benefits to offer are creative benefits. Although construction businesses have challenges offering their workers flexible hours, there are several ways you can implement creative benefits into your company culture. Whether it’s offering a little flexibility to scheduling needs, hosting team events, or donating time to a worthy charity, performing these little tasks that show you appreciate your employees can make all the difference to your company culture.
Although business owners across the country face many challenges ahead, employers that take the right actions today will enjoy success tomorrow. During tough economic times, make certain that your top talent feels valued so that they can effectively lead your company in the future. At Cotney Attorneys & Consultants, we are a Colorado Springs construction law firm committed to the industry. Whether it’s legal advice, employment handbook drafting, or contract review services, a Colorado Springs construction law professional is here to help you maintain your operations during challenging times, so you can grow in the future.
If you would like to speak with a Colorado Springs litigation lawyer, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.