2 minute read
Prizing your people
Master Plumbers CEO Greg Wallace considers ways businesses can retain staff in a highly competitive market.
Residential construction activity is forecast to remain strong for the forseeable future due to a combination of low interest rates and a busy renovation market, with people spending on their homes rather than overseas holidays as a result of the Covid-19 pandemic.
Whilst a buoyant market is good news for the construction industry, it comes with some substantial current issues, including project delays caused by Covid-19 supply shortages, particularly in timber and steel.
The most pressing problem, however, is the lack of skilled tradespeople to complete projects. As has been highlighted over the past three to four years, the plumbing, gasfitting and drainlaying sector is around 3,000 workers short.
With the current low unemployment levels, Covid-19 restrictions on imported labour, and just 10 percent of construction industry businesses taking on apprentices, our industry is experiencing incredible pressure on wage rates. Inevitably, this brings increased staff movement as employees seek greater remuneration and employment opportunities.
I personally believe that apprentices who enter into an employment agreement with a business should respect the contract and complete their apprenticeship with the employer who was prepared to do the hard yards and provide their training.
Under New Zealand employment law, however, all employees are entitled to free movement. So, the question is, what can employers do to retain their staff?
For a start, workplaces need to ensure they are rewarding employees with remuneration at competitive rates. Employers should conduct or utilise annual salary reviews, using regional data to make sure their employees are in the right salary band for their experience and location.
Little things can also go a long way towards ensuring staff are happy. Proper job design and good engagement with staff is important, as is creating a strong workplace culture. Options can include recognising staff for top performance, offering birthday leave, allocating a training budget per staff member, and holding regular informal staff check-ins in addition to more structured annual performance reviews. You might also choose to offer confidential wellbeing support or flexible working options.
Although some of these practices may seem different from what has traditionally been the case for trades businesses, they are very common
practices today. It may all seem like it’s increasing your costs, but employers need to consider the risk that they will not be able to operate without their staff, as well as the cost of employee recruitment and induction training, which can be significant for business in all sectors.
Employees who feel valued and listened to are also more likely to feel they can speak up and approach you about any workplace issues, which can only benefit your business.
The construction industry must adapt to skills shortages and play a leadership role in ensuring opportunities are presented that keep staff engaged, motivated and loyal.
GREG WALLACE CEO, Master Plumbers, Gasfitters & Drainlayers NZ
