The construction industry continues to be hit hard by the labor shortage. According to the U.S. Bureau of Labor Statistics, the industry had 300,000 vacancies in June of 2019 and will need 747,000 more employees by 2026.
Construction companies often offer rewards and bonuses for workers who help projects finish on time and on budget, but, in the end, compensation isn’t everything. There are other benefits you could be offering your team that would help not only retain employees but also attract new ones. Let’s dive into the top three:
1. Tax-advantaged accounts
Tax-advantaged accounts help employees save for retirement, save on healthcare expenses and save on education expenses. They’re called tax-advantaged accounts because they give your employees tax deferrals or tax exemptions on the money they contribute into the accounts.
Examples of tax-advantaged accounts include 401(k)s, flexible spending accounts (FSAs), health savings accounts (HSAs) and 529 college savings plans.
These accounts help employees stretch their income and pay for both the unexpected (such as healthcare expenses) and the expected (such as their retirement and their children’s college tuition).
Employers often contribute matches to employee 401(k) contributions up to a certain percentage, as well as annual dollar amounts to FSAs and HSAs. Employer contributions make these benefits even more attractive to employees, creating a good boost in retention.
2. New technology
Millennials and Gen Z are the young generations you want to attract to fill your labor needs, but the problem is those two generations aren’t that interested in the construction industry. We discussed in a previous article how to attract new talent into the industry and overcome that disinterest, and introducing technology was one of the ways to do so.
Reshaping the construction industry as a leader in technology will go a long way to attracting new talent. Your company can help lead the way by offering different types of technology, whether it’s an ERP that makes employees’ lives easier out in the field, or HCM software that allows employees to enter time, manage PTO, view paystubs, update their information and more, all from their mobile devices.
Technology saves your employees time and makes their day-to-day easier and less stressful. It’s definitely a benefit your company shouldn’t overlook.
3. Back-office benefits
If your company works with a union that negotiates benefits on behalf of your employees working on-site, don’t forget about your back-office team. Your administrative staff help keep your company running, and with the labor market tight no matter the job type, you want to retain good employees throughout your organization.
Three elements that, in general, make up a good employee benefits package include:
- A medical plan: To keep things cost-effective, you can offer a high deductible plan that employees can pair with an HSA to meet healthcare costs.
- Dental and vision plans: If you’re a small company, it can seem overwhelming the more benefits you offer, but these two benefits are typically paid for by the employee. Adding them to your benefits package makes it more robust and attractive to employees.
- A retirement plan: Young workers know importance of retirement. A retirement plan advisor can help you pick the package that works best for you and your employees’ needs.
Are you offering these types of employee benefits?
We mentioned before that compensation isn’t everything, but it is important. Companies that offer structured incentive compensation plans tend to see more return on investment than companies with a discretionary approach. An advisor can help you design an effective incentive compensation plan for your business.
An advisor can also help you analyze your current benefits and determine what strategic benefits package you could offer that would help you attract and retain employees while gaining the most value for your spend.
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