I consult with contractors from all across the country, and I am asked a lot of the same questions. Let’s tackle one of those today, shall we?

Are human resource standards different in the construction industry?

This is a great question. The simple answer is no. But, issues pertaining to human resources never seem simple…

The truth is, the standards are the same, but the needs of the construction industry are different and pretty specific.

Every industry needs to hire the right people, train them, and build an excellent team. In fact, I’ve found some startling statistics:

  • 57 percent of organizations view employee retention as a large problem.
  • 22 percent of new hires leave their jobs within the first forty-five days of accepting the position—usually for relational issues.
  • 46 percent of new hires fail and are let go within eighteen months. Of those, only 11 percent are fired for lack of skill, while 89 percent are let go for personality reasons or lack of coachability.

Employees who undergo a structured onboarding process are 58 percent more likely to still be employed with the company three years later.

When Quality Work Isn’t Enough

An HR manager does more than just take care of hiring and firing. But, if you are a small company, you might unofficially be the HR person and not even realize it. You may not feel like you need someone to handle this end of your business, but don’t put this off.

I know from quite a few years in this business that you never feel like you need an HR person until the moment that something happens. And then, you really need an HR person.

I’m sure you are delivering excellent work to your clients and establishing a name for yourself in the construction industry, which is half the battle. But, if you are not handling the hiring and training aspects of your business in a professional way, you are putting your business at risk. Employee turnover is expensive and time consuming.

This is one of the reasons the Certified Contractors Network exists—to help contractors grow their businesses in really smart ways!

Ask the Experts

A couple of weeks ago, we held our Owners Summit in St. Louis, and we asked Marilyn MacFarlane to speak about her years of experience in Human Resources. She has more than twenty years of experience in Human Resources for both the service and manufacturing sectors, covering multi-state locations. She’s handled everything from staffing, employee training, and employee relations to audits, compliance, benefits, 401K management, and vendor negotiations.

She’s just one of the pros who has helped our contractors take their businesses to the next level.

For more great ideas on ways to jumpstart your business’ growth, check out our Time Out Series below. It’s all about making sure as a business owner, that you are taking that much needed “time out”.

Building the best,