Key Employee Retention Plans for Construction Firms: Retaining Top Talent Remains a Challenge for Privately-Held Companies
Construction companies face a variety of overwhelming, unique challenges. Apart from the competitiveness of the industry—which is a challenge in itself—the fact that many projects take months or years to complete can make the workflow cycle much longer than in other industries. Other challenges in the construction industry include managing multiple projects simultaneously, the fluctuating cost of building materials, and properly estimating the cost of projects and changes required to those projects.
Two of the most overlooked challenges in the industry are the limited number of exit opportunities or succession plans for owners and their families and the retention of key employees. These are even more pronounced in markets where the competition is tight and the complexity of doing business is high, with New York being a perfect example. Few buyers will pay for a business that gets the majority of its work through the bidding process and luring key employees can be a way to get much of the value of a business without paying for the entity.
It may sound overly simplistic, but having a process in place for hiring the right people and retaining key employees may be the most effective way to mitigate these concerns.
Check out our infographic summarizing the goals of a Key Employee Retention Plan, or read the full article here:
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