Workforce

Focus on the Employee Experience to Beat the Talent Shortage

Companies that focus on retention by investing in optimizing their current talent, working to improve employee experience and only hiring when necessary are much more competitive in the war on talent.
By Greg Barnett
July 26, 2019
Topics
Workforce

At 3.6%, American unemployment is at its lowest in 50 years. And while growth is positive, the acute talent shortage makes it especially hard to find and retain top performers, given the omnipresence of open positions.

This rings especially true in the construction industry, which is not only battling employee retention issues, but also an aging workforce. Baby boomers currently make up 25% of construction workers, but this number is quickly shrinking as industry predictions show that 41% of baby boomers will retire by 2031.

With the construction industry facing major workforce challenges, executives must recalibrate their talent strategies. To position themselves favorably in the war on talent, leaders should focus on engaging employees and making retention a top priority. Here are four steps to take to improve employee engagement and bolster retention:

1. Reevaluate roles and responsibilities for job fit

When looking to improve employee retention, the first thing companies must do is evaluate how well their current workforce aligns with the job to be done. This is especially important because any gaps in the current talent strategy can have negative impacts on employee perception. When talent gaps and misalignments put a strain on other employees, high performers leave and employees tend to lose trust in leadership.

With a talent optimization approach, leaders can identify strengths and weaknesses for each employee and place them in the right roles. As a result, productivity grows and employees will naturally find their work more enjoyable and rewarding and be more engaged as a result.

2. Focus on diversifying career development

The easiest way to lose an employee in a tight labor market is to not invest in their career growth. In fact, research from LinkedIn found 93% of employees are more likely to stay with their current employer if they feel the company is adequately investing in their careers.

While employee development opportunities like training, one-on-ones and career pathing are highly correlated with engagement, traditional approaches can prove challenging when most of a workforce is in the field. To account for this, consider an approach to career development that meets employees where they are. Think about offering flexible training programs or allocate budget for evening classes so employees can learn a new trade. Seek out learning and development opportunities for employees and develop mentorship programs that will help establish leaders at every level of the organization.

3. Rethink hiring practices

A misconception rampant in construction is that companies must prioritize technical skills when hiring candidates. This myth often causes hiring managers to overlook candidates who don’t have experience that perfectly matches the role they’re looking to fill—resulting in a revolving door of talent. Instead, construction companies should focus on hiring based on behavioral and cognitive fitness which ensures the candidate is wired to do the job innately and has the capacity to learn the necessary technical skills quickly.

For example, don’t just look for prior experience when evaluating a candidate. Instead identify qualities that may make them a natural leader or a clear communicator. Both may be just what the team needs to be more cohesive and productive and can help to elevate engagement and improve retention.

4. Lead with integrity–it will give people a reason to stay

A recent report found that the number one driver of employee engagement in the construction industry was related to having a great manager. According to the research, employees in the construction industry tend to leave bad companies and bad managers, especially when they don’t trust the leadership. More than other industries surveyed, it’s clear that the actions of the management team impact the amount of effort the team puts in. By working hard and showing integrity, the team will show the discretionary effort needed to excel on any job.

In a tight labor market, companies are often too focused on looking externally for the next candidate to fill a vacant role. However, companies that focus on retention by investing in optimizing their current talent, working to improve employee experience and only hiring when necessary are much more competitive in the war on talent. By addressing the employee experience, employees will be more engaged, which will not only improve retention but engender the kind of productivity that moves the needle on broader business objectives, ultimately leading to greater efficiency and productivity.

by Greg Barnett
Greg Barnett is the Senior Vice President of Science at The Predictive Index, the leader in talent optimization, where he oversees the execution of the company’s science agenda, including talent analytics, employee assessments, employee surveys, psychometrics, machine learning, natural language processing and talent optimization data science.

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