How to Reduce Employee Turnover on Construction Projects

• #Project staffing

High employee turnover remains one of the most pressing challenges for construction projects. Losing employees during project delivery leads not only to workforce gaps, but also to financial losses, lower productivity and quality, and delays to project timelines.

In many companies, turnover is still viewed as an inevitable feature of the construction industry. However, experience shows that in most cases it is driven by factors that can be managed. The more systematically these factors are addressed, the more stable and predictable project delivery becomes. 

Why Turnover Becomes a Chronic Challenge in Construction

Construction projects operate under high workloads, tight deadlines, and constantly changing requirements. At the same time, the drivers of employee turnover rarely come down to pay alone. More often, they arise at the intersection of workforce management, employment conditions, and the day-to-day working environment.

1. Unstable employment and lack of predictability

   Project-based employment does not always give employees a clear understanding of how long their assignment will last or what opportunities may follow. This creates a sense of uncertainty and can reduce engagement even when working conditions are otherwise satisfactory.

2. Work overload and uneven distribution of tasks

   Workforce shortages increase the workload on existing teams. A higher pace of work, excessive overtime, and a lack of adequate breaks accelerate burnout and become key drivers of employee attrition.

3. Ineffective workforce coordination on site

   Disruptions to schedules, attendance, shift planning, and coordination between project stakeholders directly affect employee motivation. In an unstructured working environment, employees are more likely to move to another site or employer.

4. Accommodation and logistical challenges

   For construction workers, seemingly basic factors can be critical: comfortable accommodation, quality meals, adequate rest and dining facilities, organized transportation, convenient shift schedules, and timely payroll. These factors often play a decisive role in an employee’s decision to remain on a project or leave it.

This is supported by research conducted by ANCOR across construction and industrial projects. The findings show that living conditions and day-to-day operational factors can have an impact on employee retention comparable to pay levels, particularly among rotational and regionally based workers.

Another important factor is what can be described as loyalty built through “small acts of care”:

• demonstrating the value of employees’ work directly on site

• creating effective onboarding and engagement conditions so that new hires feel part of the team more quickly

• reducing tension and workload pressure among permanent employees

• sharing stories of career progression and achievements among rotational workers

ANCOR research also shows that employees tend to stay longer on a project when they understand how their work contributes to the overall project objectives, mission, and goals, and when information about employment benefits is communicated consistently and transparently throughout the hiring and onboarding process.

The Impact of High Employee Turnover

Employee turnover rarely results in workforce losses alone. It typically triggers a chain of operational consequences:

• longer time to onboard and bring new employees up to full productivity

• lower crew productivity and output

• higher recruitment and onboarding costs

• increased risk of errors and health and safety violations 

Ultimately, the client may lose control and predictability across project operations. Companies that take a more systematic approach to workforce management and working conditions achieve greater operational stability. The practices implemented by ANCOR Industry help create a more predictable workforce supply model and reduce the impact of turnover on project delivery. 

Which Approaches Actually Reduce Turnover

Sustainable results come not from one-off measures, but from a comprehensive approach to workforce management.

• Employee onboarding and the role of the foreman or mentor

The first few weeks on site often determine whether an employee will remain on the project. A clear introduction to responsibilities, support from the foreman, and access to a mentor reduce the uncertainty and stress experienced by new workers. Experience shows that when foremen are actively engaged in onboarding and team management, employee tenure on site increases and early attrition during the onboarding period decreases significantly.

In this context, an effective foreman performs not only an operational role but also a people management function: building effective working relationships within the team, monitoring workload, and identifying issues early that could otherwise lead to employee attrition.

• Workforce stability and planned rotation

The ability to plan additional workforce capacity and replacements in advance reduces pressure on employees and helps prevent emergency staffing situations. Controlled workforce deployment models make it possible to maintain a sustainable balance between workload and available resources.

• Predictability of working conditions

Clear schedules, well-defined shift arrangements, and transparent workforce deployment directly influence an employee’s decision to remain on site. Effective control of these processes improves workforce discipline and reduces the likelihood of unexpected attrition.

• Improving recruitment quality

Accurate candidate selection based on the specific requirements of the project helps reduce turnover from the outset. Pre-screening and verification of relevant experience can increase employee tenure on site.

• Reducing the administrative burden on the client

When line managers are overloaded with HR and workforce administration, people management on site suffers. Transferring these responsibilities to a dedicated workforce management team allows managers to focus on core production activities while maintaining visibility and control over the workforce.

Turnover on construction sites is not an inevitable consequence of the industry. More often, it arises where there is no systematic approach to workforce management.

Companies that move from reactive solutions to structured workforce management models gain more stable teams, greater schedule predictability, and better control over costs. In this context, the practices applied by ANCOR Industry can serve as one of the tools for reducing the impact of turnover and maintaining control over construction operations at every stage of project delivery.

Andrey Prokopov, Head of Construction Workforce Solutions

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