What Can Your Business Do About the Great Resignation?
The prolonged COVID pandemic has affected businesses worldwide in a variety of ways. Perhaps one of the most unexpected is the phenomenon coined "The Great Resignation." Employees across every industry have been quitting their jobs at record rates. In the last four months of 2021 alone, 4.34 million people quit their jobs. The construction industry was hit particularly hard. Quit rates have sustained around 3% from last November, all the way to the latest data in March. That means for every 100 construction employees working, 3 were quitting. That's a significant number in an industry suffering a prolonged labor shortage.
The pandemic allowed people to reevaluate their work-life balance and how their job affects their mental health. Luckily this doesn't mean that employees won't be interested in the construction industry. However, it does mean that employers will be required to address the pain points of all employees in the industry. Businesses should make daily tasks less stressful, time-consuming, and cumbersome.
The pandemic allowed people to reevaluate their work-life balance and how their mental health is affected by their job. Luckily this doesn't mean that employees won't be interested in the construction industry. However, it does mean that employers will be required to address the pain points of all employees in the industry. Businesses should make daily tasks less stressful, time-consuming, and cumbersome.
What caused the initial labor shortage in construction?
During the last several decades, the desire for financial stability led to a push in academic education. Encouraged to do so by parents and advisors, younger workers eventually took fewer and fewer trade-skills jobs. As a result, the construction industry faced an unprecedented labor shortage.
Part of the answer lies in reattracting this generation, who may not realize that trade skills jobs are an option. Despite being one of the most educated generations, Gen Z has higher anxiety about the quality of their education. Many believe their education didn't prepare them for specific job sectors. Unfortunately, this makes them hesitant to consider jobs in industries like construction.
Perhaps the biggest takeaway when attracting younger employees should be that their #1 concern was pay. After that, they wanted growth opportunities, good work culture, and to work for socially conscious companies.
Unfortunately, construction doesn't always have the best reputation on top of general hesitation among younger workers. It has a reputation for low pay, delays related to weather and other issues, and complex projects. It's easy to see why the industry was already struggling to bridge the growing age gap.
So what are the top reasons for the Great Resignation?
According to Pew Research, the top reasons workers quit their jobs in 2021 were:
- Low pay
- No opportunities for advancement
- Feeling disrespected at work
- Dissatisfaction with hours worked
- Poor benefits
For company leaders to address these issues, the adoption of modern tools will likely be necessary. Workers are not quitting and permanently exiting the workforce. Instead, the Great Resignation is more like "The Great Reshuffle." Employees are changing companies or fields for better pay, benefits, and work culture.
To survive the steady quit rates and hold onto top talent, companies should look at those top 5 reasons listed above. By identifying why their employees are leaving, they can determine what their next steps should be.
Outdated tech is contributing to the Great Resignation.
One major issue that companies can address is workers who feel they are working too many hours. Particularly at the end of the month, back-office financial staff in the industry find themselves working overtime. So it's no surprise that nationwide, 40% of workers who quit jobs say that working too many hours played a part in their decision. That's a massive number for employers to contend with.
Old tech & processes make your employee's work take too long.
The recent rise in construction technology provides a chance for companies to improve. With better tech, you streamline old processes and remove reoccurring issues. Additionally, this technology can improve productivity and reduce human error. Consider how modern tools can help you take advantage of the potential talent pool.
- Design collaboration software allows team members to quickly and safely share data. They can explore shared data before accepting changes and track processes from start to finish.
- Project management software reduces project complexity. It manages everything from preconstruction forms and approvals to placing 3D models. The software can also be customized to show costs in real-time and include compliance regulations.
- Construction billing software can eliminate errors and cut time spent on data entry. It can also include automatic document management, custom workflows, and automated reminders.
By investing in technology designed to improve remote technology and streamline complex processes, you can improve work conditions for both existing and new workers.
Cut down errors, cut down time wasted, cut down your employee turnover.
It's no secret that pay apps and documentation have long been an industry issue. Outdated billing practices lead to project delays and late paychecks for many contractors and subs in the field. And, for back-office staff, the clunky and obsolete processes lead to frustration and unnecessary hours spent making corrections or resubmitting paperwork.
The goal at Flashtract is to solve those issues with easy-to-use construction billing software. It has built-in tools to reduce the time it takes to issue and manage documents like lien waivers, pay applications, and compliance. And once we've generated those documents for you, there are custom workflows and reminders to ensure the whole team is on the same page.
Flashtract can make a great tool to help your entire team cut down on frustrating hours spent chasing down billing-related paperwork.
Ready to see how Flashtract can improve the processes holding your employees back?
It's evident that ensuring your employees are not frustrated by outdated software and confusing processes can work wonders to help retention. Flashtract can be a powerful tool alongside your existing ERP software.
If you want to chat about how we can help your construction billing process, go ahead and send us your email below! We'll have one of our team reach out and answer any questions you have.