Why Good Employees Leave (And what you can do about it)

If you’re a senior leader in the construction industry, knowing why good employees leave is critical to maintain a competitive edge. However, uncovering the reasons for employee turnover is not always obvious.  According to Contractor Magazine “the labor shortage continues to pose major challenges to the industry, causing firms to ask skilled workers to do more work (81%), struggle to meet deadlines (70%), increase costs for new work (63%) and reject new projects (40%).”

These striking statistics just scratch the surface in terms of how that trickles down into each company’s morale and ultimately their employee retention rates.  Therefore, having a strategy in place to combat it SHOULD be at the top of any senior executive’s list.  Without one, construction companies face delays, disappointed clients, countless dollars invested to pull new talent on board and poor morale. It’s important to note that there is a lot of misinformation floating around about what triggers employee turnover. One poll may show that it’s bad managers who chase their employees away while another indicates the exact opposite.  At Schooner Executive Search, we did our own digging to ensure the polls we quoted for this blog were conducted by independent research companies. In doing so, we found some interesting trends that provide insight into why good employees leave.

Surprising Employee Turnover Statistics about Why Good Employees Leave

• According to The Harris Poll, an independent research and insights company, a lack of career growth is one of the biggest reason workers leave their jobs.  The same poll indicated that 77% of employees feel they are guiding their own careers.
•  A recent NBC News article “Here’s the No. 1 reason why employees quit their jobs” shared several insightful statistics from OC Tanner research:
  • 79% of employees quit their job due to lack of appreciation
  • 65% of workers said they weren’t recognized by their companies even once in the past year
  • 82% of employees feel their supervisor doesn’t recognize them
  • According to Gallup, only 33% of employees even feel engaged at work

Based on this information, we feel confident saying that there is little evidence to suggest pay is a primary motivator for leaving.  Neither were fringe benefits, pensions, bonuses or anything else that most companies focus their energies on.

The real issues stem when managers only focus on tactical, day-to-day issues.  Most leaders focus their resources on the present and give very little thought to their long-term employee retention strategy.  The labor shortage itself simply compounds the problem. Creating a culture of appreciation, recognition and taking time to value talent is continually put on the backburner.  The good news, however, is that creating a change in culture is usually inexpensive and requires little to no competitive advantage.  It does, however, require a high degree of social intelligence and buy-in from all levels of leadership to work.

Tips for Reducing Employee Turnover

Provide Employee Feedback

Annual reviews with constructive feedback is critical. It’s a MUST. But peer-to-peer feedback is equally as important.  Take time at a monthly meeting to pass around notes of appreciation or recognition about colleagues.

Create Roadmaps and Metrics for Employees

This “road map” should be discussed often.  This living document should be shared with managers, HR, and employees and should invite feedback from all three parties.   Some areas it should address is including how to measure performance, how to recognize when an employee is ready for a promotion and how to develop their skill set so they are constantly evolving and improving.

Improve Communications Company-Wide

Do NOT take communication skills for granted.  Even the best managers struggle to give constructive criticism and often brush hard conversations under the rug.  You can combat this via third-party training, role-play opportunities and a constant focus on developing communication skills should be a priority for any company.

Be Open to Criticism

Encourage your employees to provide open and honest feedback to senior leadership.  Take stock of how you react to these new suggestions or concerns and take time to reflect on your own approach. For example, do you empower employees to generate their own ideas for solutions to fix those problems? Or do the walls go up when employees make suggestions for change?

Formalize your Onboarding Process

Your onboarding process should be outlined, documented and created with the intent of making your new hires feel welcome – even before they start on Day 1.  In light of that, make sure you follow these procedures for all employees and not just one you have identified as a rising star.  More about onboarding (and PREboarding) HERE.

Make Employees Feel Valued

Take time to provide feedback to team members and help them understand HOW their contributions impacted the big picture. Taking time to be specific with your compliments will drive up satisfaction and provide opportunities for back and forth dialogue. And remember, a good compliment is specific, provides insight on how it impacted the organization and why you appreciate it.

More Small Rewards are Better than Few Large Rewards

You’re not alone if you’ve paid out a $10,000 bonus just to have an employee walk out the next week. Bonuses can feel like “buyouts” when they a manager doesn’t present them properly. Dish out those compliments, provide training opportunities and throw some surprises in there too and have fun with them. Give a valued team member a couple of tickets to a basketball team. Treat your team to a late Friday lunch and let them leave early if it’s slow. Send a handwritten note to someone on their birthday. While these gestures may sound trivial they communicate genuine appreciation in a way that a monetary bonus doesn’t.

If you’re looking to dig into any of these ideas or learn more about why good employees leave, drop us a line or check out our other blogs.