How to Save Your Skilled Team Using Employee Retention in Construction

You probably know how tough it feels when a reliable worker leaves in the middle of a project. In construction, the turnover rate reached 56.9% in 2021 in the U.S.

That's far higher than in most industries. Numbers like that show why employee retention in construction can’t be treated as an afterthought. Every worker who leaves takes valuable experience with them, and replacing that isn’t simple.

The good news is that pay isn’t the only reason people stay. Many workers remain where they feel respected, supported, and safe. This is where strong leadership makes all the difference. In this article, you’ll find out what employee retention and turnover mean.

You’ll also explore seven practical strategies to boost employee retention in construction. Learn what works, what often fails, and how to start applying these strategies immediately to keep skilled workers on board for the long term.

What is Employee Retention in Construction?

When people hear “retention,” they often think it's about the paychecks. But in construction, employee retention means creating an environment where workers want to stay, not simply where they have to.

In simple words, retention is the effort you put into keeping your employees for the long run. It includes fair wages, but also respect on-site, clear communication, safe conditions, and chances to grow.

Why is it such a big deal in this field? It's because replacing one skilled worker doesn’t happen overnight. It can take months to train a new mason, welder, or operator. During that time, projects slow down, costs increase, and deadlines become overwhelming.

If construction companies don’t treat employee retention seriously, they’ll keep losing money and talent. Now, to understand why it matters, we need to look at its flip side – turnover.

Want to know how top construction firms hire talent they don’t end up losing later? Check out our guide: 11 Recruitment Strategies for Construction Companies to Attract and Keep the Best Talent

What is Employee Turnover and Why is it a Big Deal in Construction?

Turnover is simply the rate at which workers leave and get replaced. Some turnover is normal; people retire, move, or switch careers. But in construction, the average turnover rate is much higher than in most industries.

For example, Zippia research shows that in 2021, construction had an annual turnover rate of about 65%. To put that into perspective, it’s almost triple what many stable industries face.

Why does that matter? Because when turnover is high, projects lose workers, and with them they lose knowledge, teamwork, and efficiency. Every time an experienced carpenter leaves, the new hire needs time to get up to speed.

During that learning curve, mistakes happen, safety risks escalate, and the crew morale drops. So, while turnover might sound like another HR number, in construction, it can mean the difference between a project done on time and a project that drains money.

How is Employee Retention Calculated in Construction?

You can’t improve what you don’t track. That’s why knowing exactly how to calculate employee retention is super helpful. Here we'll use a method many HR guides use, like PeopleKeep and Indeed.

Formula (Simple Method)

Retention Rate = (Employees at End of Period ÷ Employees at Start of Period) × 100

Employees at Start of Period = Number of workers at the beginning (for example, January 1)

Employees at the End of Period = Number of those same workers who are still there at the end (for example, December 31)

Worked Example

Let’s say you had 100 workers at the start of the year. By year-end, 70 of those same workers are still on the team (not counting new hires).

So:

70 ÷ 100 = 0.70

0.70 × 100 = 70% retention rate

That means you kept 70% of your original workforce.

Why This Method is Better for Clarity in Construction

It focuses only on the workers who were there at the start. That avoids messing up numbers when you bring in new people. It’s simple and easy to compare across months or years.

Especially in construction, where crews change often, this method shows how stable your core team is. Tracking this version of employee retention in construction helps you identify trouble quickly.

If that rate drops from, say, 70% one year to 55% the next, something in your hiring, job site culture, or leadership changed, and it may be pushing good workers away.

7 Employee Retention Strategies in the Construction Industry

Numbers tell you there’s a problem, but strategies fix it. So let’s discuss the best employee retention strategies in the construction industry that can help you keep your team together for the long term.

1. Build a Culture Where Safety Comes Before Speed

One of the main reasons workers leave construction is safety.

In 2022, construction accounted for nearly one in five workplace deaths, and of those, 38.4% resulted from falls, slips, or trips (U.S. Bureau of Labor Statistics). When workers feel a task could put their health at risk, they naturally start looking for other options.

That’s why safety is a powerful retention tool. Show your crew that you’ll slow down work when needed, make protective gear easy to access, run short toolbox talks that teach real skills, and listen carefully when workers point out hazards.

It may sound simple, but prioritizing safety over speed builds loyalty. A worker who feels secure and valued will think twice before leaving for a few extra dollars elsewhere.

2. Pay Fairly, But Don’t Stop at Paychecks

Of course, money matters. Construction workers know the value of their sweat, and underpaying them is the fastest way to lose them. Retention goes beyond simply matching salaries. So, focusing only on pay isn’t enough.

What really keeps workers around is the full package: steady hours, clear overtime rules, and simple benefits like health coverage or paid time off.

When decent pay is combined with perks that support family and life, workers love to stay longer. Raising wages helps – no doubt, however, loyalty isn’t bought with numbers alone, it grows from stability and respect.

3. Respect is the New Currency on Site

Read that again. Many workers don’t leave construction because of the job itself; they leave because of how they’re treated. A foreman who shouts, a manager who ignores feedback, or a company that brushes off worker concerns can make even the toughest crew member quit.

Respect doesn’t cost a company extra dollars, but it pays back in retention. Simple actions like listening to workers' input on deadlines, acknowledging good work openly, or handling conflicts with fairness make workers feel human, not disposable.

When a mason or electrician feels heard, they’ll stay through tough days because loyalty is tied to dignity. Retention in construction grows from culture, not contracts.

4. Train for Skills, Not Only Tasks

The construction industry is growing fast. New tools, green building methods, and tech-driven designs are entering sites every year. Workers who don’t grow with these changes end up frustrated or worse, outdated.

That’s where training plays a huge role in retention.

Instead of only teaching workers how to complete today’s tasks, invest in training that makes them future-ready. Offer certifications, apprenticeships, and short skill-up workshops to give them a reason to stay.

According to the LinkedIn Workplace Learning Report 2025, 88% of organizations report that providing learning opportunities is their top retention strategy. Giving employees chances to learn new skills shows that you care about their growth, beyond only their output.

Don’t hand workers a hammer, hand them a career path. The more skilled they feel, the deeper their roots in your company.

5. Give Workers a Voice in Decision-Making

One of the hidden reasons people quit is feeling powerless. In construction, decisions often come from above: management sets timelines, and workers just follow. But when crews never get a say, they eventually check out emotionally and then physically.

Retention rises when workers are invited to the table. Maybe it’s asking for their input on shift schedules, or involving them when setting project milestones. Even small chances to speak up create a sense of ownership.

Ownership is sticky, people rarely walk away from something they helped shape. It might sound soft, but in an industry known for hard hats and tough hands, giving workers a voice could be your strongest retention tool.

6. Recognize Hard Work Like it Actually Matters

We can't say construction is glamorous. Workers often sweat for hours in heat or cold, with little recognition beyond a paycheck. Over time, that invisibility pushes them out. Recognition, however, changes everything.

Saying “good job” is nice, but not enough. Retention grows when recognition is specific and consistent. Publicly thank a welder for finishing ahead of schedule. Celebrate teams that hit safety milestones. Highlight small wins during team meetings.

These acknowledgments don’t replace money, but they make workers feel proud of their role. In fact, studies from Gallup show that employees who feel recognized are more likely to stay at their jobs. Pride builds commitment, and commitment holds people in place.

7. Create Real Paths for Growth, Not Dead Ends

Many workers leave construction because they feel stuck. If a laborer can’t see a way to become a foreman one day, they’ll start looking elsewhere. Retention depends on showing workers that their future can grow inside your company, not outside of it.

Growth doesn’t always mean promotions. It can be mentorship, cross-training, or new responsibilities that challenge workers. When companies outline a clear path, “from apprentice to journeyman to supervisor,” workers invest themselves more deeply.

According to the Construction Industry Institute, companies with strong career pathways see 30% more retention rates. That’s proof that growth is good for workers, and it’s good for business too.

Final Word from Purely Startup

Keeping skilled workers in construction doesn't mean handing out bonuses or offering more pay. It means building a workplace where people feel respected, supported, and secure.

When employees know their hard work matters, they’re far more likely to stick around even when the job gets difficult. A strong retention strategy isn’t a quick fix, it’s a steady effort to create better communication, fair treatment, and opportunities to grow.

This investment pays off in lower turnover costs, higher productivity, and a safer, happier job site. If you take one thing away, let it be this: keeping your best workers starts with treating them like the valuable partners they already are.