Embracing Digital Tools and Technology in Construction
For decades, the construction industry lacked technological advancements for work planning and execution. That’s no longer the case. New digital...
2 min read
Paul Longsdorf, CPA : August 11, 2020
August 11, 2020 - When new work dries up and your construction company begins backlogged work, the future of your workforce can seem uncertain. How do you keep your best team members through tough times in a market where their next pay increase could be just a job away? That's not to mention the economic pressure of the COVID-19 crisis, which makes retention confusing without a clear roadmap. You don't want to let anyone go, but you should consider your options if you have to make tough choices.
"Most construction companies are very open to innovation," says Paul Longsdorf, CPA, tax partner, client manager, and member of the construction industry team at Redpath. "They're open to finding out how to do things better and more efficiently" – which is vital to survival in today's construction market. Even once you've settled on a retention tactic, the options you have can be overly technical, so we've created a shortlist of some options you might consider to retain your best employees in the face of a revenue dip.
Your attorney can help you explore many retention tactics, and your accountant can help make sense of how they'll work for your construction company. Here are a few things to consider and tools you might be able to use to retain top talent during lean times.
Now that you know the options, you may still wonder which tactic (or combination) is the right option for you. That depends on your size, goals, and flexibility.
Larger companies will find it easier to implement a deferred compensation plan because they have a more sophisticated structure and access to greater resources. While smaller construction companies may have fewer resources, they also generally have greater flexibility in allocating funds to short-term incentives.
Even while they insure the present, construction businesses are understandably planning for the future, as well. With no definitive end to the COVID-19 pandemic in sight, Paul says that anything that doesn't immediately shrink your current cash reserves can be a wise strategy. "Deferred compensation isn't dollars leaving your business today," he says, unlike immediate cash bonuses.
Another consideration, and one that applies to everyday business, is shaping company culture to hold onto your best talent. Salary is certainly one of the main factors your employees will consider – but surveys show that company culture, job satisfaction, and benefits can be an even bigger motivator than pay.
"Everyone wants to work at a place where they feel valued, where their opinion matters," Paul says. "Companies that don't listen to their employees always have a hard time growing."
For decades, the construction industry lacked technological advancements for work planning and execution. That’s no longer the case. New digital...
U.S. election results (and their impacts on tax policy) are always important for business owners and the broader population. However, the 2024...
St. Paul, Minnesota (October 1, 2024) – Certified public accounting firm Redpath and Company (Redpath) has promoted Sarah Gengenbach to partner and...