Employment Law

Can Technology Help Reduce Construction Employee Turnover? Part 1 featured image

Can Technology Help Reduce Construction Employee Turnover? Part 1

Employee turnover in any industry is never ideal, but it is a common occurrence. The construction industry is no exception; however, in the midst of a massive shortage of skilled workers, employee turnover can be detrimental to construction companies and can affect everything from financial success to employee morale.

If key players on a project leave the job, the whole project is at risk. Our Nashville contractor attorneys believe that embracing technology can help construction employers keep employee turnover under control. This two-part article will focus on the cost of high employee turnover and the role technology plays. Part two will conclude our series. As always, reach out to a reputable Nashville contractor attorney for all of your construction-related legal needs.

Employee Turnover Will Cost You

Anything that is not measured cannot be managed effectively. Causes of employee turnover vary but are often rooted in pay dissatisfaction, job discontentment, low morale, poor work-life balance, or a lack of career development. Whether a worker’s departure is voluntary (i.e., quits or resigns) or involuntary (i.e., termination), their absence takes a toll on the company in numerous ways.

Exit Costs

Most companies do not have systems in place to track employee exit costs. However, the work needed to discharge an employee, such as completing paperwork, arranging temporary coverage for the job, and updating company directories and documents, can be costly for employers. One report suggests that employers spend 33 percent of a worker’s annual salary to hire a replacement.

Hiring New Employees

Recruiting new employees can be costly as well. In order to attract top talent, construction managers must find creative ways to reach skilled workers. The main costs of hiring new employees are associated with advertising, training, and retaining. Paying for job advertising, weeding through applications, interviewing, and checking references all take time and money. Additionally, once an employee is hired, managers must shift their attention to retaining those employees.


Training new employees is time consuming and can slow the working progress on a jobsite down considerably. On the other hand, inadequate training can be a huge problem for employers and can lead to poor workmanship and safety issues. Every new hire should be trained and given a grace period to adjust to their new job.

If you would like to speak with a Nashville contractor attorney, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.