Employee Retention: The Key to Growth in 2019
The construction industry is growing again – at last – and industry watchers predict that trend will continue with more growth in 2019. This is great news for contractors and for dealerships who sell construction equipment and related services.
Some of the expected growth will be fueled by unfortunate circumstances such as the devastating wildfires in the west and hurricanes in the southeast. But there are more positive triggers, notably savings resulting from the Tax Cut and Jobs Act, increased hope that the feds will finally increase funding for badly-needed infrastructure projects, and a general upswing in the nation’s economy.
Will you have the manpower to cash in?
While more work is on the horizon, the labor shortage throughout the construction industry is getting worse. In fact, in a 2017 AGC survey, 70% of construction companies complained that they couldn’t find enough workers to fill craft positions.
This issue may be more acute (and, therefore, more dangerous) for construction companies than for equipment dealers, but the basic facts are the same. You can’t afford to lose good people. You need their expertise and their history with you, and you may not be able to replace them if they leave – at least not with the same caliber individual.
That means you’d better keep them happy. HR professionals talk a lot these days about employee experience. How you treat employees is as important as how well you pay them when it comes to job satisfaction. The most successful employers are taking a holistic approach to retention.
And what if you need new hires? Happily, the factors that will attract people to hire on with you are pretty much the same as the factors that strengthen retention. Do the right things, and you’ll benefit in every way. So will your employees. And if they’re truly happy with you, they won’t be ripe for poaching by one of your competitors.
So let’s talk about retention
Every business owner or manager knows it is far less expensive to retain customers than it is to recruit new ones. The same holds true for HR. You’ll spend less money, time, and frustration if you focus on retaining the great crew members you have right now. In the AGC survey, construction employers said they were taking a multi-pronged approach to retention:
- 60% planned to increase base pay
- 56% planned to increase training and development
- 36% planned to increase incentives and/or bonuses
Monetary rewards matter to everyone – who would turn down more pay or a nice bonus? But money isn’t everything. People also want to feel like a valued, respected member of your team. Training and other personal/professional development opportunities appeal to employees in several ways:
- Enhanced training increases job skills and industry knowledge, so workers can do more and do it better.
- Those interested in moving up into positions with greater responsibility can see that your organization supports and encourages that.
- And training increases on-the-job safety, which benefits everyone.
Benefits beyond money and training
One of the biggest challenges all small business owners struggle with – construction companies included – is how to offer a relevant benefits program that will attract and retain employees without sending the company into bankruptcy. Yet benefits, both tangible and intangible, play a significant and growing role in determining job satisfaction.
The solution? ADI Business Services
Here at ADI Agency, we get it. With our extensive experience in the insurance industry and our first-hand knowledge of heavy equipment dealership management, we understand what it takes to make ends meet, let alone make a profit. Consider, for a moment, the time, money, and worry you’re currently investing in HR-related work:
- Payroll accounting
- Creating job descriptions, employee manuals, and other essential documents
- Time and attendance tracking
- Benefits program development and management
- Compliance assurance and recordkeeping
- Safety training
All of these labor-related activities are required in order to successfully operate your business, whether you’re a contractor or a dealership. But you don’t have to perform any of these tasks yourself. Small businesses outsource to specialized professionals because it’s more efficient and more cost-effective. You can, too.
ADI Business Services lift the payroll burden off your shoulders, and you can add any of the other HR components noted above. Outsourcing administrative tasks frees up time. But it can also free up cash, thanks to the economies of scale that come into play, especially with benefits. That’s cash you could consider using to boost employee pay.
Fear of costly turnover is a good motivator to focus more on employee retention. But why not consider the opportunity from a more positive standpoint? By taking advantage of outsourced HR administrative and compliance tasks, you can not only boost employee experience significantly, you can reap other financial and productivity benefits.
The more you streamline, the more you can focus on core business activities – the things that directly increase revenue. That’s fundamentally important if you hope to be more profitable and grow your business in 2019. ADI can help you achieve those goals. Isn’t it time we talked?