Which top employees are you willing to forfeit to your competition? And at what price? Your competitors are probably already deciding which superstars they’d like to steal from you. Superstar construction talent is in high-demand. The BLS estimates approximately one million more STEM professionals will be needed over the next decade than than what the United States will produce at its current rate. Global competition for top engineering talent is also heating up.
For years, overseas employers have been poaching U.S. talent, especially workers with training in science, engineering and math, according to Poaching U.S. Talent, published by Human Resource Executive. So how can construction companies keep superstar employees in 2021 and beyond?
If contractors want to keep superstars, they first have to know who those employees are. What makes an employee successful? It might not be what employers think it is. If contractors define superstars by who brings in the most revenue, they might be overlooking their top talent. True superstars are not just top revenue generators.
To define a superstar, look beyond revenue generation. Key superstar characteristics include employees who:
– Develop new client relationships;
– Keep existing clients;
– Prioritize what’s best for the company, not just themselves or their group;
– Spot and fix problems that need to be addressed;
– Give and receive feedback;
– Identify new opportunities;
– Maintain good relationships with peers, superiors, direct reports and vendors;
– Mentor the next generation;
– Learn, grow and change;
– Show initiative;
– Build trust with coworkers through authenticity; and
– Generate revenue.
A client once defined superstars as “employees who do what needs to be done.” Superstars are likely the direct reports employers go to when seeking insight. These superstars zero in on issues that need to be addressed and have special knowledge of factors such as client problems, underperforming employees and new markets to go after. Contractors want to retain these stars.
Are contractors confident their top employees—superstars—are getting what they need from working at the firm? According to Work Institute’s 2020 report, 78% of the reasons employees quit their jobs in 2019 could have been prevented. Put another way, 42 million U.S. workers left their jobs because they decided there was something better somewhere else.
The top three reasons employees leave are:
1. Career development (19.6%);
2. Work-life balance (12.4%); and
3. Manager behavior (11.8%).
In a Gallup survey, of all the job qualities millennials most valued, “opportunities to learn and grow” came in at number one. In fact, 87% of millennials said personal development is very important to them. So what do companies lose when a superstar leaves?
The cost of replacing employees who earn $75,000 per year or less is often 10% to 30% of their annual salary, according to the Center for American Progress report, “There Are Significant Business Costs to Replacing Employees.” However, it can cost up to 213% of a senior-level employee’s annual salary to find a replacement. For example, an executive earning $150,000 per year could cost as much as $319,500 to replace.
Other key costs to consider include:
– The number of years and dollars a company has invested in developing the employee;
– The vacancy cost (number of days the job is open x the average value of the job per day);
– The learning curve productivity loss (number of days it takes for a new hire to generate revenue); and
– The impact on the company culture and other employees.
It is obvious that career development is key in retention, but what does a culture of investing in employees look like? Contractors should look where they are spending development dollars. Are they investing the majority of their resources in developing executives who have fewer than 10 years before they retire?
Don’t cut the superstar pipeline off at the source. If contractors don’t develop them now, those employees will leave. Superstars are years in the making. Identify the employees who have the potential to be the next superstars in the organization and start investing in their development now. It is so much easier to grow someone than to find their replacement.
Build a leadership development plan that spans multiple generations. Focus on training, coaching, and mentoring in the areas of operations, business development, recruiting, retention, strategy, communication and managing people.
Current superstars should also play a role in developing the next generation. By coaching superstars to coach the next generation, it multiplies the value of contractors’ investment and improves retention. It is harder to poach talent from an organization where people feel connected and valued.
Next, communicate the development plan to employees. Provide a clear path of development opportunities. Give employees new opportunities. Don’t lock them down to one silo. If employees do not see a clear path forward, they will look for other opportunities.
Will it pay off? According to a study by the National Bureau of Economic Research, when a superstar employee joins a team, the department-level output will increase by as much as 54%. Don’t get poached. Retain your talent. Invest in your future by investing in your people. Instead of asking managers, “Did you make your numbers?” ask, “Who are you helping grow?”