Jackson Brown Jr., author of Life’s Little Instruction Book, said, “Find a job you like and add five days to every week.” Most owners wish their employees felt this way about work. Yet, owners don’t recognize they hold the key to motivating and retaining employees. 

Here is a typical example: A construction company owner is a previous employee from another construction business. One day he looked at his employer and thought, “I’d like to be my own boss, work fewer hours and make more money.” He may also assume he is not appreciated, didn’t know what the owner wanted and believed the only time the owner talked to him was to complain about his job performance. So the one-time employee started his own company, and life was good. He won his first bid, worked hard and pocketed the profit.

Then he wins a subsequent bid and another one and another one, and eventually he has too much work. Now he hires an employee and discovers the employee doesn’t put in the same amount of effort. The former employee and now-business owner wonders why his employees aren’t just like him. He doesn’t realize he is likely making the same mistakes his former boss made with him. Herein lies the challenge.

To be successful, in part, requires business owners to focus on retaining good people and keeping them productive. Owners can accomplish this by communicating company goals clearly and often, improving employee performance and motivating their employees. 

Employee Growth
Why is retention important? According to the U.S. Department of Labor, construction makes up 31 percent of the total employment in the good-producing sector, which includes manufacturing, natural resources and mining. Additionally, construction and construction-related companies account for 63 percent of goods-producing establishments.

Current employee statistics indicate total annual average construction employment rose from more than 5.8 million in 1997 to an all-time high of 7.7 million in 2006. Furthermore, the employment projection data indicate construction employment will increase more than 11 percent between 2004 and 2014. Construction is the only goods-producing sector in which employment is projected to grow. Therefore, as more employees are required to meet the demand, retention of good employees becomes even more critical. The business owner has taken time to interview, hire and train employees, which is a costly business endeavor. Accordingly, he or she doesn’t lose employees once the company has made an investment in them.

The Bureau of Labor statistics says it costs $14,500 to replace a construction employee. The average separation rate – the number of separations as a percentage of total employment – in 2007 was almost 5 percent. Therefore, if a construction business with 100 employees loses five employees annually, it will cost the owner $72,500. Owners who learn how to motivate and retain good employees can stay competitive and prevent draining their financial resources.

Why Do Employees Leave?
Many owners falsely assume employees leave due to money issues. While the salary may be part of the reason, usually the bigger concern is related to other job conditions. Here are some of the common reasons why employees quit their jobs:
n They don’t feel appreciated – An employee may feel he or she is doing a great job, but without feedback from management to show him or her that hard work is appreciated, he or she will eventually decide they are not a valued employee and will move on. This is the No. 1 reason why employees leave their jobs.

• They don’t see any room for advancement – If there is no room for employees to move up the company ladder, they’ll feel stuck in their position and be less motivated to work productively.
  
• They don’t know or aren’t committed to the owner’s vision or goals – Every business owner needs a vision for the company and goals for achieving the vision. Yet, even if the owner has this information, it’s not always communicated to employees. This means employees are left to their own devices and have to try to interpret what they think the owner wants. Equally important, there may be a lack of positive feedback on performance. Because of this, employees never know when they are doing something correctly until they receive negative feedback.
• They think the grass is greener elsewhere – Sometimes employees leave because a competitor is offering more money or because the working environment is not conducive to productive and satisfying work. If owners don’t create a workplace that is pleasant, safe and constructive, employees are likely to experience boredom and complacency, which leads to lower productivity. Without intervention, some employees will jump ship without really knowing what the working conditions are at a new location. This only leaves them vulnerable to future job dissatisfaction, which perpetuates the cycle.
• They engage in personality clashes – Oftentimes there are personality differences between supervisors or owners and employees. These differences can lead to discord, disagreement and ongoing clashes that produce an unpleasant working environment. In these situations, staff turnover is likely to be high, especially if the issues are not addressed and resolved.

Management Missteps
Managers, supervisors and owners can make several crucial mistakes when it comes to retaining their employees. First, they fail to adapt their management style to motivate different employees. There are three generations of employees who are attempting to work together: baby boomers (born between the years 1943-1960), Generation X (1961-1981) and generation Y (1982-1994). As baby boomers retire, generation X and Y employees are taking over more of the construction industry.

There are marked differences between these three generations. Typically, baby boomers hoped to remain at one company for much of their working lives. They expected to be promoted based on longevity and are motivated by knowing that they did a good job. Generation X employees are independent, highly technical and don’t anticipate remaining at one job for their entire career. They are motivated by time with their families and satisfaction with their jobs. They want to learn and enjoy focusing on technology. Generation Y employees are similar to generation X workers in that they don’t expect to stay in the same job or career during their working lifetime. They also prefer more immediate gratification by working on smaller projects with shorter deadlines rather than long-term assignments.

In the construction industry, many baby boomers are supervising generation X employees and are just starting to hire generation Y workers. Baby boomer managers look for performance, dedication and appreciate those willing to work overtime. Generation X employees expect to be promoted based on performance instead of longevity. The age difference between baby boomer and generation Y employees is even more significant than with generation X employees. Some of their associates, including their managers, are old enough to be their parents. They are likely to question the traditional management style of the baby boomer generation. Ultimately, these groups will clash. If the situation becomes too uncomfortable, employees will leave the company. It’s crucial for all groups to understand these differences, especially as generation X and Y individuals climb the company ladder.

Additionally, individual personalities play large roles in employee retention. An employee is affected by life experiences and genetic makeup. Employees are unique individuals who are motivated differently. For motivation to be effective, owners need to communicate regularly with their employees about key performance indicators, such as mutual goals and expectations.

Hiring the wrong person for the job at hand is a losing proposition. It costs the company money and leads to increased turnover. Even if candidates have the skills and experience required, it’s not enough to ensure a good fit. Rather, what’s really important is to determine whether candidates will fit in with the company’s culture, supervisors and co-workers.