The construction industry has long been the backbone of economic development, creating infrastructure and buildings to support our lives. Despite being critical to the economy, though, the industry still persists in dealing with some nagging workforce issues: an industry plagued by high rates of employee turnover, severe labor shortages, and bureaucratic nightmares of employment law and regulatory compliance.
Therefore, understanding these issues and tackling them is crucial for having a stable, skilled, and motivated workforce.
Luckily, there's some help. For instance, conducting a parapet inspection in NYC, helps property owners and managers navigate the complexities of this essential task. In Canada, similar resources are available to provide counsel to employers.
An article from our American Contributor.
I. Challenges in Construction Workforce Retention
High Turnover Rate in the Construction Industry
The construction industry faces high turnover rates. This is partly due to the nature of the work, safety concerns, seasonal fluctuations, and other competitive opportunities. The industry reports that construction companies have an annual turnover rate of approximately 21%. This can be expensive in terms of time and resources.
Key factors driving workforce retention challenges include:
Job Insecurity: Many construction jobs are project-based, which makes workers unstable in the long term.
Workplace Hazards: Construction work is physically demanding and potentially dangerous, which can be a deterrent for employees to stay long-term.
Limited Career Advancement Opportunities: A lack of clear pathways for professional growth can make workers seek opportunities elsewhere.
Compensation and Benefits: Competitive pay and full benefits packages are not the norm, which creates dissatisfaction and turnover.
II. Construction Employment Law in US and Canada
Construction employment law is designed to protect workers and ensure that employers are acting fairly. However, the legal framework can be confusing, especially for employers with large, diverse workforces. Important areas of construction employment law include:
Wage and Hour: Minimum wage laws, overtime pay requirements, and proper timekeeping are essential. In USA, the Fair Labor Standards Act is the federal law that governs most of the states, though some states have different laws. In Canada, Part III of the Canada Labour Code is the federal law that governs federally regulated businesses, while the Employment Standards Act governs Ontario labour relations in non Unionized workplaces.
Health and Safety Standards: In USA, the Occupational Safety and Health Administration (OSHA) has strict guidelines to prevent workplace injuries and fatalities. Proper training, equipment, and compliance with safety standards must be maintained by employers. In Canada, Part II of the Canada Labour Code (CLC) is the federal law that governs health and safety in the federal sector. In Ontario, a similar legislation, the Occupational Health and Safety Act (OHSA) regulates workplace health and safety.
Click here to learn more about health and safety regulations in Canada at both federal and provincial level.
Anti-Discrimination Laws: In USA, title VII of the Civil Rights Act prohibits discrimination based on race, color, religion, sex, or national origin. Employers have to put fair hiring practices in place and must proactively confront workplace discrimination. In Canada, the Canadian Human Rights Act prohibits discriminated based on personal traits, similar to the US counterpart. In Ontario, a similar legislation, the Human Rights Code provides similar protection against discrimination.
Union and Labor Relations: In USA, the employers have to comply with National Labor Relations Act (NLRA) and collective bargaining agreements if workers are unionized. Similarly, in Canada, Part I of the Canada Labour Code deals with labour relations and collective bargaining for federally regulated businesses. In Ontario, the Labour Relations Act is the governing statute in this area.
Click here for an overview of the parts of the Canada Labour Code and how they apply to federally regulated workplaces.
Relevant Blog post: Is Your Company Federally Regulated or Not? A Primer on the Derivative Jurisdiction Test
Immigration and Employment Eligibility: The construction industry employs many immigrant workers. It is essential that employers in the USA are compliant with Form I-9 and verify employee eligibility under the Immigration Reform and Control Act (IRCA). In Canada, employers are advised to be compliant with the Immigration and Refugee Protection Act or risk facing serious legal consequences.
III. Workforce Retention Strategies in Construction
Workforce retention in the construction industry involves a multi-faceted approach to address the needs of employees, foster a positive work environment, and ensure legal compliance. Below are actionable strategies to enhance retention:
Competitive Compensation and Benefits
Provide compensation in line with industry benchmarks and cost of living in the locality.
Offer benefits, such as health insurance, retirement plans, and paid time off.
Introduce performance-based bonuses to encourage outstanding performance.
Invest in Employee Training and Development
Offer skill development programs, certifications, and apprenticeships.
Establish clear career advancement routes to motivate workers.
Institute mentorship programs that ensure knowledge transfer from experienced workers to new recruits.
Enhance Workplace Safety
Emphasize OSHA compliance in USA or the Canadian counterparts (CLC - federal, OHSA - Ontario) and promote a culture of safety.
Offer safety training that is continuous and equipment is up-to-date.
Acknowledge and reward teams for meeting safety milestones.
Foster a Positive Work Environment
Promote open communication and handle employee concerns immediately.
Ensure inclusivity by respecting diversity and equal opportunities.
Team-building activities can be created to enhance camaraderie.
Work-Life Balance
Flexible scheduling should be provided where possible.
Mental health support should be available through counseling services or employee assistance programs.
Burnout can be prevented through reasonable workloads and adequate rest periods.
Technology
Implement construction management software to make it easier to operate and minimize administrative burden on workers.
Use digital monitoring tools for safety and employee training.
Legal Compliance as a Retention Tool
IV. Legal Compliance as a Retention Tool
Adherence to employment laws is not only a legal mandate but also a vital part of workforce retention. Employees are more likely to stick with employers who are perceived as fair, respect the rights of their employees, and show care for them.
Key steps in compliance are:
Regular Audits: Perform internal audits to check compliance with wage, safety, and labor laws.
Employee Handbook: Develop a complete handbook that contains company policies, safety procedures for workplace health and safety, anti-discriminatory and anti-violent protocols, and legal rights and entitlements.
Training for Managers: Educate the supervisors and HR personnel on employment laws to address the problems efficiently.
Observe Disconnect from Work Policy: In Ontario, under the Working for Workers Act, 2021, each business with 25 or more workers (as of January 1 of any year) must have a company policy in place on "disconnecting from work" for all employees by March of that year. In USA, you need to watch out for similar legislations in your State.
Relevant Blog Post: Non-Compete Agreement No Longer Legal Under Bill 27: Working for Workers Act, 2021
V. Role of Leadership in Retention
Leadership is a critical determinant of workforce retention. Employers and managers must:
Lead by example, demonstrating a commitment to ethical practices and employee well-being.
Communicate transparently about company goals, expectations, and changes.
Recognize and celebrate employee achievements to foster loyalty and engagement.
VI. Conclusion
Building a better workforce in the construction industry requires a balanced approach towards legal compliance and employee satisfaction. Understanding and complying with employment laws, offering competitive pay, ensuring safety, and creating a supportive workplace would help employers reduce turnover and have a motivated, skilled workforce. With the right strategies, the construction sector will overcome its workforce challenges and remain a cornerstone of economic development.
Relevant Blog Posts:
Workplace discrimination undermines the core principles of fairness and equality. Understanding your rights and knowing how to respond can protect you from unjust treatment. Both employees and employers must work together to create a respectful and inclusive work environment where everyone has the opportunity to thrive. If you believe your rights have been violated, consult a legal professional to explore your options.
You may want to consult with an experienced employment law firm, such as HTW Law, to learn about your employment law rights in case of statutory violations of employment law rights and workplace discrimination to ensure that your rights are fully protected. By doing so, you can ensure that you receive fair compensation for the actionable discrimination and safeguard your employment rights.
If you are an employer, you want to make sure your company policies, labour practice and employment contracts comply with the relevant employment law legislations.
With the right legal support, employees and employers alike can navigate the challenges of unfair practices and work towards a more equitable and respectful work environment.
You don't have to fight the battle alone. Speaking with an employment lawyer who is familiar with the laws and intricacies regarding workplace discrimination, harassment, health and safety and employment law in general will go a long way. If you are in doubt, it's essential that you reach out for help as soon as possible right away.
Click here to contact HTW Law - Employment Lawyer for assistance and legal consultation.
Author Bio:
Lucy Jones is a Business Advisor. She shares her tips on business & marketing. With extensive research and study, Lucy passionately creates blogs on divergent topics. Her writings are unique and utterly grasping owing.