Construction Today

People and profit

Finding and keeping a professional work force can pay competitive dividends in an industry that often views workers as transient.

By Ron Sage and James Gibson

The size of the construction work force is substantial. That’s the good news. The bad news is the industry consists of a highturnover field, which often results in local and regional labor shortages, increased costs and lower profits for construction companies.

It’s a vicious cycle, but one with a solid escape plan: the development of a strategic plan for recruiting and retaining professional workers. This is not a new idea, and yet many companies fail to recognize their best assets are their people. Subsequently, they ignore this crucial management imperative, often due to lack of time and awareness.

One contributing factor to high turnover is that many view and treat construction as a seasonal business with a highly mobile population. Workers frequently leave one job for another, hoping to make more money. For example, the hurricane damage in the Southeast has drawn an influx of construction workers seeking greener pastures.

However, an even bigger issue is the treatment of tradesmen and craftsmen by the owners themselves. Construction workers are regarded as transient workers. There is virtually no commitment to keep employees and subcontractors when there is little work.. Even if a worker is considered a permanent employee, there are few, if any, benefits to the job outside of the paycheck.

High turnover leads to increased costs for hiring and training new personnel. Additionally, the declining morale of those left behind leads to diminished quality of work and productivity. These issues are evident throughout the organization as employees adjust to the increased workload. To compensate, management needs to allocate more time to hire and train the right personnel so current staff isn’t over burdened with these responsibilities.

The most common recruiting and hiring mistakes are a lack of preplanning for busy periods, and failing to check references and conduct background checks and employment verification.

Preplanning is crucial when there is a limited pool of qualified construction workers from which to select. Many organizations wait until they are desperate and absolutely need employees. Yet, it is difficult to ramp up when everyone is recruiting at the same time. The solution is to be aware of staffing patterns and employee needs, and have an ongoing recruiting campaign.

When conducting reference checks, it’s important to do a thorough job. For starters, do not rely solely on human resources for references. Conduct secondary reference checks, as well. Talk with the supervisors and other staff who know and worked with the prospective employee.

Be Prepared
An organization’s most valuable asset is its people. To retain good people and reduce turnover, it’s crucial to have a solid new-employee orientation plan. Yet, very few construction companies take the time to create formal job descriptions or employee handbooks that define the company culture and job expectations.

Rather than just "winging it," be prepared. If internal resources are lacking, seek out the help of personnel professionals who are experienced in the specific hiring practices within the industry. Look for a company with both the corporate and staffing perspective to assist with all human resource challenges.

Behavior, Experience and Skill A number of standardized, validated and reliable tools assess candidates’ skills and behaviors. They represent a valuable part of every recruiter’s tool kit. Although experience represents the length of time an individual has performed certain tasks, it is not always an indication of skill. Rather, experience is the involvement in activities that may or may not lead to the accumulation of skill.

Years of experience do not necessarily mean the worker has the appropriate skills. His or her breadth of knowledge may be narrowly focused. Sometimes skills can be acquired and developed through training and participation. In any case, communicate the skill need clearly during the hiring process to ensure that experienced and skilled professionals are recruited.

Attract Professional Workers
Without a well-defined plan to select qualified workers, an organization may be forced to employ any available (i.e., less-qualified) personnel or allow positions to go unfilled. This is a dangerous strategy, directly contributing to a high-turnover cycle.

As part of a proactive recruitment strategy, consider these suggestions when preparing a personnel management plan to attract professional employees:

• Recruit at trade schools, high schools and community colleges and in areas outside of where the organization is headquartered
• Ask other contractors and suppliers for referrals
• Use written tests and performance tests to assess skills
• Maintain a safe and employee-committed workplace
• Provide competitive wages and benefits

Additionally, for the plan to be most effective, think of recruitment as an ongoing strategy and not a once-in-a-while occurrence.

Once Hired, Then What?
First, start with a thorough company orientation, including history, vision, mission and values. Make sure new recruits understand the firm’s culture. They need to know what is expected of them and how to communicate within the organization. An employee provided with the company policies and guidelines for specific job-related tasks as well as organizational expectations will understand the underlying company practices and behaviors and be able to adapt to these more readily.

Second, create a management development program. Make sure employees are promoted to supervisory levels only when they have the training required. This includes making certain a person with strong technical skills also has management potential. For example, an employee may be the best framing carpenter in the company but doesn’t know anything about managing.

The common practice of taking an exemplary employee and promoting him or her to supervisor or crew lead often leads to failure. Without training, both the supervisor and staff can become frustrated with the lack of leadership, possibly resulting in another potential turnover problem. Assess management and supervisory skills and determine training needs before issuing promotions.

Keeping a professional work force allows an organization to experience higher profits while completing more projects ahead of schedule. Other ideas for retaining workers include:

• Conducting needs assessment to train continuously
• Conducting supervisor human relations training
• Tying wage progression to skill advancement and offering permanent employment opportunities through promotions
• Informing employees of project progress
• Treating employees with respect

Creating a workplace where employees are valued and respected positively affects the attitude and productivity of the employees. An added bonus is the improvement of the public image of the organization, which is a plus in attracting future workers.

Ron Sage is director of recruitment and James Gibson is senior project manager with International Profit Associates and Integrated Business Analysis (IPA-IBA). For more information, call 847-808-5590 or visit www.ipa-iba.com.