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We urgently need more workers but a war of wages won’t cut it

June 24, 2023
in Business
We urgently need more workers but a war of wages won’t cut it
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Ian Barrow is a senior employee-experience consultant for survey provider WorkBuzz

Salary is the easiest tool to harness when attracting talent, but a high pay packet simply won’t retain a workforce in the long run. Construction companies mustn’t compete on wages alone, and should instead listen to what their people truly want.

We know the industry outlook is challenging. The workforce is ageing, and there’s a shortfall in experienced trades and labour. Organisations are faced with the ongoing challenge of how to recruit and retain their workforce, especially with competition being so fierce. 

The construction industry isn’t blind to its issues and recognises that workers are looking elsewhere for work, including migrating to other industries that offer greater stability.

Faced with this ageing workforce and urgent skills shortage, construction leaders are keen to attract as many new faces into the industry as possible and, importantly, retain them. But how?

Listen, then act

Well, not by competing on salary, for starters.  The construction industry remains one of the highest-paying sectors in the UK, with an average salary of £45,000 – an incredible 33 per cent higher than the UK average. And while some entry-level salaries could benefit from an uplift, if firms start competing on salary alone to attract new workers, this will likely increase rather than reduce staff attrition – workers will simply jump from one company to another in search of the highest wage. So they must refrain from entering into a war of wages.

“The only way construction companies are going to attract and retain new and diverse workers is to make their organisation attractive to all”

The reasons for workers’ attraction to a particular company – and then their reasons for staying – are far more complex than what’s in each month’s pay packet; they range from the quality of leadership above them, through to their sense of belonging. But to determine what’s important to your people, you need to ask them – and, importantly, you need to act on what they say.

This might sound simple, but it’s obviously not as easy as calling a meeting and asking everyone what they want. For a start, there are 10 key factors that impact employee engagement, and it’s important to find out what your employees think and how they feel in relation to each of them.

These include the quality of senior leadership; growth opportunities; teamwork; direct manager relationships; flexible working (is it even an option?); empowerment; reward and recognition; wellbeing; diversity and inclusion; and organisational purpose.

Finding out what your employees think about all these fundamental elements requires the collection and interpretation of data, which can then be turned into concrete action so your organisation becomes a magnetic place to work.

The outcome will be a holistic view of what’s important to your workers, and what is and isn’t working. For instance, if a large section of the workforce is feeling unappreciated and taken for granted, an action plan can be put in place on how to improve this – such as the introduction of a reward and recognition initiative. Similarly, if people feel they have few opportunities for career growth, a training and development programme may help to turn things around.

Ultimately, the only way construction companies are going to attract and retain new and diverse workers is to make their organisation attractive to all. The culture needs to be inviting and inclusive, with plenty of opportunities for people to develop and shine, and everyone must feel part of an organisation that cares about them as individuals.

Making this a reality means drilling into the existing culture and recognising what is and isn’t working. By having this real understanding of your people rather than basing decisions on assumptions and theories, you can bring about real cultural change that makes your company an appealing destination for all.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : ConstructionNews – https://www.constructionnews.co.uk/long-reads/opinion/expert/we-urgently-need-more-workers-but-a-war-of-wages-wont-cut-it-23-06-2023/

Tags: businessurgentlyworkers
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