Reducing turnover in construction management is critical to saving costs, meeting project deadlines, and maintaining safety. High turnover disrupts timelines, increases expenses, and leads to safety risks, with replacement costs for project managers ranging from $40,000 to $160,000. Here’s how you can address this issue:
Turnover costs are high, but by addressing root causes and prioritizing employee satisfaction, construction firms can retain talent, reduce costs, and improve project outcomes.
Construction Management Turnover Statistics and Retention Factors
Addressing high turnover starts with understanding its root causes. Often, the reasons project managers give for resigning only scratch the surface of the deeper issues prompting their departure. For instance, while 37% of workers who quit in 2021 cited low pay as a "major reason", salary is typically less influential when it comes to retention. In fact, compensation ranks fourth, trailing behind factors like career growth opportunities and the quality of management.
The real drivers of turnover often come down to career stagnation and poor leadership. Career stagnation is a major factor, with 31% of construction workers leaving because they lack opportunities for skills development and advancement. When project managers feel stuck or unsupported by their leadership, they start looking elsewhere. As Branka Minic, CEO of Building Talent Foundation, explains: "Bad bosses are a reason people flee their jobs. Immediate supervisors have a tremendous role to play". In fact, 45% of workers report staying in their roles because of how their immediate supervisor treats them - a percentage notably higher than those who stay for pay.
Work-life balance and burnout are also significant concerns, especially as other industries offer more flexibility. The first 90 days on the job are particularly crucial, especially when hiring data center construction project managers: 1 in 3 employees leave within this period. Among early resignations, 41% cite a mismatch between their expectations and the actual role, while 32% blame poor company leadership.
When it comes to retention, career growth and development play a much larger role than salary. 53% of construction workers stay for opportunities to develop skills and advance, compared to just 29% who stay primarily for pay and benefits. This underscores the importance of investing in professional growth and clear career pathways over simply increasing salaries.
The quality of management is another critical factor. The construction industry's total separation rate was 4.6 as of January 2023, significantly higher than manufacturing (3.1) and wholesale trade (2.8). With 427,000 open positions as of September 2023, dissatisfied managers have plenty of alternatives.
To tackle these challenges, gathering feedback is essential. Exit interviews, described by SHRM as a "treasure trove of information", offer insights into why employees leave and what might have convinced them to stay. However, waiting until someone resigns means the opportunity to retain them has already passed. Stay interviews, on the other hand, provide a proactive approach. These regular check-ins with current employees can help identify and resolve frustrations before they escalate into resignations.
Conduct stay interviews at 30, 60, and 90 days to catch early warning signs. Ask employees about what’s working, what isn’t, and what might make them consider leaving. Incorporate skip-level meetings, where employees can share feedback about their direct managers with higher-level leadership, either anonymously or openly. This approach can reveal management issues that might otherwise go unnoticed.
The feedback collected during these interviews is a goldmine for actionable insights. For example, if several project managers mention unclear promotion criteria, it’s a signal to create transparent career pathways. If disrespectful behavior is a recurring theme - a factor cited by 35% of employees who quit in 2021 - specific leadership behaviors need to be addressed. By tracking patterns across interviews, you can identify systemic problems rather than isolated incidents and use this data to guide retention strategies. Sharing these findings with organizational leaders ensures resources are allocated to address the most pressing issues.
Understanding these factors is the first step toward building a more stable and satisfied workforce.
Salary alone won’t keep project managers on board, but falling behind market pay rates will certainly push them away. Nearly half of construction workers would switch jobs for just a $1 to $4 hourly pay increase. The solution? Build a comprehensive compensation package that goes beyond salary, addressing both immediate financial needs and long-term career goals. Such a package should reflect the unique challenges of construction management - both physical and mental. Staying competitive requires benchmarking against industry standards to ensure your offerings align with what the market demands.
Start by evaluating your salaries against the latest market data. As of July 2025, the median annual pay in construction stood at $70,400 - well above the national median of $60,700. Construction pay has been climbing, with a 4.5% year-over-year increase, and salaries for construction professionals are expected to grow by an average of 5.2% in 2025. To retain top talent, it’s essential to match these trends with regular salary adjustments.
Leverage resources like the Bureau of Labor Statistics, PayScale, and Glassdoor to compare compensation by role and region. Keeping your data up-to-date with annual reviews ensures you stay competitive as market conditions shift.
Beyond base pay, consider comparing performance-based bonuses to sweeten the deal. Only 29% of construction firms currently offer incentives or bonuses, leaving plenty of room for improvement. Bonuses tied to project milestones, retention for critical builds, safety achievements, or even spot rewards for exceptional problem-solving can make a big impact. These targeted rewards not only motivate employees but also help manage fixed costs effectively.
Compensation isn’t just about money. Benefits play a critical role in retention, especially in a field as demanding as construction management. With suicide rates in the construction industry reported to be six times higher than workplace fatalities, mental health support is no longer optional. Include behavioral health services, employee assistance programs (EAPs), and telehealth options to address these challenges head-on.
Financial security is another priority, particularly for younger managers. Alongside standard 401(k) plans with company matching, consider offering financial education, student loan repayment assistance, or even home-buying preparation programs. These benefits show employees you’re invested in their long-term success.
Flexibility is also key. Offering flexible work schedules, professional development opportunities, and financial wellness programs can address both immediate needs and future aspirations. As Richard Branson famously said:
"Train people well enough so they can leave; treat them well enough, so they don’t want to".
Finally, move away from cookie-cutter benefit packages. Younger employees might value student loan assistance and mental health resources, while seasoned managers may prioritize retirement planning. Offering customizable benefits allows employees to choose what matters most to them, increasing the perceived value of your package without necessarily increasing costs.
First impressions are everything - especially when you consider that 33% of new employees leave their jobs within the first 90 days. When it comes to construction project managers, the difference between someone staying or leaving often boils down to how well they’re welcomed and supported. A structured onboarding process paired with consistent communication can set the stage for long-term success. This approach not only improves retention but also reduces costly turnover.
Onboarding isn’t just a one-day orientation - it’s a carefully planned process that should stretch from 90 days to a full year. Why does this matter? Because employees who experience a structured onboarding program are 58% more likely to stay with a company for three or more years.
Start even before the new hire’s first day with pre-boarding. Sending materials like the employee handbook, company policies, and details about specific projects ahead of time shows new hires they’re valued and helps them hit the ground running. Once they arrive, pair them with a high-performing peer - not their supervisor - through a buddy system. This approach works: 56% of employees report feeling more productive in their first week when they have a buddy or mentor.
Safety training is another critical piece of onboarding, especially in construction. With 35% of workplace injuries happening during a worker’s first year, prioritizing safety from day one is non-negotiable.
Because construction managers are often on-site, mobile apps can be a game-changer. They provide quick access to training materials and resources, ensuring that new hires have what they need, when they need it. A strong onboarding program sets the foundation for the retention strategies outlined earlier.
Once onboarding is complete, the next step is maintaining open lines of communication. Feedback isn’t something you can save for an annual review. Regular, two-way conversations help address small issues before they become big problems. These sessions also build on stay interviews, providing a way to tackle concerns as they arise. The key is to structure these meetings as conversations, giving managers and employees the chance to share their thoughts openly. And don’t forget balance - feedback should include recognition of hard work, not just discussions about challenges.
Digital tools can make feedback more efficient. With team members often spread across job sites, tools that allow managers to log agendas and conduct virtual check-ins are invaluable. But the real impact comes from acting on the feedback. When employees see their input leading to meaningful changes, their engagement grows. As Suzanne Ritchie, Adjunct Professor of HR at Bellevue University, explains:
"When you show you're interested in and care about people, they will have a higher engagement than if you ignore them or assume they're doing OK."
Public recognition is another powerful tool. Highlighting achievements in company newsletters or on internal social platforms can boost morale more effectively than private acknowledgment. Ultimately, fostering an environment where employees and supervisors feel comfortable sharing concerns can prevent frustrations from escalating into resignations.
While competitive pay and thorough onboarding lay the groundwork, effective leadership training is what truly transforms managers into leaders who inspire and retain their teams. It’s often said that employees leave managers, not jobs - and the numbers back this up. In the construction industry, 66% of workers who quit cited feeling disrespected as the reason. Unfortunately, it’s common for top technical performers to be promoted into leadership roles without the proper training to manage people effectively.
Construction project managers face a unique set of challenges. They’re tasked with juggling technical responsibilities like value engineering and risk management while also managing team dynamics, resolving conflicts, and motivating crews across multiple job sites. Without the right training, even the most skilled technical managers can struggle to lead - and their teams will feel the impact. With 40% of the current workforce set to retire by 2031, strong leadership isn’t just a nice-to-have; it’s essential for the future of the industry.
To lead effectively, managers need to master core skills like clear communication, conflict resolution, coaching, and collaboration. These abilities help them guide teams through the complex web of clients, subcontractors, and local authorities that define construction projects. The transition from task execution to team leadership requires intentional development.
For example, a 2022 training academy combined classroom and on-site sessions to train 45 project managers, successfully addressing critical skill gaps. However, leadership training shouldn’t be a one-and-done event. The most successful firms build ongoing skill development into daily routines, ensuring it becomes part of their culture rather than a mere box to check. Ken Wilson, Founder of FMI Talent Development Group, highlights this issue:
"Many companies just seem to want to check off the (training) initiative from their list and convince themselves that they are making a commitment to their people."
Tools like behavioral assessments, such as the Predictive Index, can help managers understand the unique drives and needs of their team members. Regular feedback loops - through monthly progress meetings and weekly check-ins - foster open communication and provide opportunities to celebrate wins. Safety training is another critical component, particularly given that 60% of construction injuries involve workers in their first year. Teaching managers to prioritize safety from day one isn’t just good leadership - it’s a necessity.
Beyond developing skills, recognizing strong leadership plays a pivotal role in retaining talent.
Even the best training won’t reduce turnover if strong management goes unnoticed. Recognition matters - nearly 70% of employees report working harder when their efforts are acknowledged. Shining a spotlight on effective managers can boost morale and set a standard for excellence.
Companies can create recognition programs that highlight exceptional leadership through newsletters or internal platforms. For example, showcasing a manager’s ability to handle a tough safety challenge or resolve a crew conflict sends a clear message about what good leadership looks like. On the flip side, addressing poor management quickly is just as important; toxic dynamics can drive top performers away.
Leading construction firms understand that field supervisors and project managers are the backbone of their operations. These individuals manage daily risks, ensure safety, and maintain morale - all of which are critical to a company’s success. Recognizing and rewarding their contributions isn’t just good practice; it’s a strategic move to reduce turnover and sustain high-performing teams.
To retain talented project managers, it's crucial to provide them with a clear vision of their career trajectory. Without this, many will look elsewhere for opportunities. Research backs this up - lack of career growth is the top reason high-performing employees leave their roles. In the construction industry specifically, 29% of employees cite the absence of advancement opportunities as a key reason for moving on. When project managers can’t see a future within their current organization, competitors become far more appealing.
One way to address this is by creating formal career maps. These should outline roles, required competencies, and realistic timelines for progression. As Linda Ginac, CEO of TalentGuard, puts it:
"It can't just be lip service. There must be a clear path that is seen by employees".
When paired with strong leadership development and supportive onboarding, these career paths become a cornerstone of effective retention strategies.
A structured promotion framework ensures employees understand exactly what’s required to move forward. Competency models can define the skills, certifications, and experience needed for roles such as Assistant Project Manager, Project Manager, and Senior Project Manager. This clarity allows employees to objectively assess their progress and focus on areas for improvement.
It’s also important to offer dual career tracks. Not every talented professional wants to move into management. For those excelling in specialized areas like value engineering, MEP coordination, or risk management, creating paths for recognition and compensation outside of management roles prevents career stagnation.
Succession planning is another essential piece. A structured approach should include steps such as planning, assessing potential, identifying candidates, preparing them for new roles, and measuring their performance after transitions. Clear guidelines - like required time in a role, internal candidate priority, and the role of past performance - ensure fairness and transparency in promotion decisions.
Career advancement isn’t just about defining paths - it’s about equipping employees with the tools they need to succeed. Training and certifications should be directly tied to promotion criteria. For instance, advancing from Project Manager to Senior Project Manager might require a LEED certification or advanced scheduling expertise. Companies should make these requirements clear and provide support to help employees meet them.
Career mapping can further align employee growth with internal opportunities. This involves assessing skills, identifying lateral or vertical moves, and ensuring internal openings match these paths. Tuition reimbursement and continuing education programs also play a big role, especially since over 75% of new employees value on-the-job training. Cross-training opportunities can keep project managers engaged while broadening their skill sets and strengthening the organization.
Regular career discussions are equally important. These conversations, separate from performance reviews, allow managers to identify high-potential employees and provide actionable feedback on skill gaps. Brad Ledford, President of DHG Search, highlights their importance:
"Career path conversations allow both the company and employee to have those critical conversations. Know what causes angst with their employees, or how to invest in ways that are the most meaningful for their growth".
Transparency is key throughout the process. Employees need to understand how candidates are chosen for promotions or high-potential programs. When the process is clear, employees are more likely to focus on their performance rather than suspect favoritism. Conducting regular stay interviews - focused on career goals and challenges - can reduce turnover by over 20%. These conversations help managers identify potential flight risks and address concerns before employees start considering other opportunities.
Creating a positive workplace culture is the third cornerstone in reducing turnover, complementing structured career paths and strong leadership. A thriving culture doesn’t just boost morale - it directly influences whether employees stay or leave.
The impact of workplace culture is undeniable. Studies reveal that a toxic culture outweighs compensation as a reason employees quit. In an industry where 91% of firms face challenges filling open roles, fostering a positive environment isn’t just nice to have - it’s a competitive edge. When construction project managers feel a sense of purpose and belonging, they’re far less inclined to explore other opportunities.
Building such a culture begins with clear values and consistent leadership. Among the "100 Best Companies", 83% of employees report that management’s actions align with its words, compared to just 42% at average workplaces. This alignment matters - employees who take pride in their work are 20 times more likely to describe their workplace as exceptional.
Recognition is another crucial element. Employees who receive regular and genuine acknowledgment are up to five times more likely to stay with their company, with average tenures extending by 3.5 years. The best part? Recognition doesn’t have to break the bank. A simple, heartfelt acknowledgment can significantly boost morale and retention.
Company values need to go beyond generic buzzwords like "integrity" or "teamwork." They should reflect specific, actionable behaviors that employees can incorporate into their daily routines. For instance, Anchor Construction Corporation highlights four core values: Safety (maintaining a secure and productive environment), Integrity (honesty as a foundation), Quality (upholding high standards), and Teamwork (prioritizing training and growth). These principles guide how the company operates and supports its workforce.
The key is making these values visible and actionable. Display them prominently on job sites, in offices, and within digital construction management tools, so employees can easily reference them. Regular leadership meetings and company communications should reinforce these values, ensuring they align with the organization’s overall goals. When employees see how these values translate into their daily work, they develop a stronger connection to the company’s mission.
Leadership credibility is essential. As Pat Wadors, Chief People Officer at UKG, explains:
"Our titles will change over time, but what an individual brings to the table every day matters".
Values only resonate when leaders embody them in their actions and decisions. By focusing on shared values rather than rigid policies, leaders build trust, empower their teams, and inspire innovation. This alignment lays the groundwork for meaningful recognition practices that keep employees engaged.
Recognition doesn’t have to come with a hefty price tag. In fact, even budget-friendly initiatives can significantly improve retention.
For example, one heavy equipment group holds weekly team meetings where each participant shares a quick update: 30 seconds for personal news and 30 seconds to recognize a teammate or project. This small ritual has been credited with fostering deep trust and camaraderie. Public acknowledgments in newsletters, team meetings, or internal social platforms can also highlight specific achievements, such as navigating a tough client situation or surpassing goals. Other cost-effective options include offering "day-off" vouchers, hosting team lunches, or giving shout-outs on the company’s social media pages.
Recognition should be both specific and heartfelt. Highlighting individual accomplishments not only rewards performance but also reinforces an employee’s sense of value. On the flip side, when leaders fail to communicate effectively, employees are 74% less likely to stay with the company. Even small gestures of timely, sincere recognition can make a big difference in retention.
When employees feel appreciated through both tangible rewards and genuine acknowledgment, they are more likely to remain engaged and loyal. A workplace culture rooted in clear values and authentic recognition is a powerful strategy for retaining top talent in construction management.
Reducing turnover among construction project managers isn't just about ticking off an HR task - it’s a strategic move that can directly boost your bottom line and improve project outcomes. The approaches outlined here focus on what the modern workforce values most: a sense of purpose, opportunities for career growth, strong leadership, and a healthy work environment.
The numbers speak for themselves. The construction industry faces an average turnover rate of 21.4%, and replacing a single project manager can cost upwards of $150,000 when you factor in recruitment, onboarding, and lost productivity. Companies that invest in formal onboarding programs see 58% higher retention over three years. Meanwhile, offering comprehensive benefits not only improves retention by 31% but also attracts 35% more qualified applicants. With 427,000 job openings in the industry as of September 2023, these strategies could make a significant difference.
Beyond the financial perks, reducing turnover also strengthens operations. Retaining experienced teams helps maintain project schedules, preserves valuable institutional knowledge, and reinforces safety practices. Skilled teams work more efficiently, reducing rework and minimizing quality issues. Additionally, with over 50% of workers' compensation claims coming from employees with less than a year on the job, improving retention is also a key safety strategy.
To sum it up, Richard Branson’s words ring true:
"Train people well enough so they can leave; treat them well enough, so they don't want to".
Reducing turnover in construction management begins with pinpointing why employees choose to leave. Common reasons include demanding work hours, safety concerns, limited career advancement, and inadequate pay. To tackle these issues, companies should focus on offering competitive pay and benefits, outlining clear career progression paths with training opportunities, and recognizing employee contributions through bonuses, flexible work options, and engaging project assignments.
A strong onboarding process, a commitment to safety, and fostering a supportive workplace culture are equally essential. Offering benefits that cater to a diverse workforce - like tuition assistance, child-care support, and retirement matching - can help connect with employees at various stages of life. On top of that, using technology to simplify tasks and reduce workplace frustrations can make roles more fulfilling.
For a competitive edge, partnering with experts such as iRecruit.co can provide access to pre-qualified construction project managers. They also offer valuable guidance on improving retention through smarter hiring strategies, thoughtful compensation planning, and initiatives to build a positive workplace culture.
To keep turnover low, construction companies can focus on creating clear career progression opportunities. This means laying out structured paths for advancement, offering skill-building programs, and maintaining open communication about expectations. For instance, you could map out a career ladder with defined roles, such as Assistant Project Manager → Project Manager → Senior Project Manager, along with the qualifications required at each level. Regularly evaluating skills gaps and designing personalized development plans - complete with focused training and mentorship - can make a big difference.
It's also important to establish clear promotion criteria tied to measurable performance indicators, like maintaining budget accuracy, strong safety records, and demonstrated leadership abilities. Providing internal mobility options, such as rotating through different types of projects or taking on cross-functional roles, can help employees expand their expertise and stay engaged. To ensure everyone understands these opportunities, communicate them consistently during onboarding, performance reviews, and team meetings.
For additional support, working with a recruitment specialist like iRecruit.co can help you benchmark career paths and attract top talent for senior roles.
Leadership training plays a key role in keeping construction project managers on board by tackling the issues that often lead to burnout and high turnover rates. Many of these managers face intense responsibilities - like resolving conflicts, managing schedules, and coordinating supplies - without the benefit of formal training. This lack of preparation can leave them feeling overwhelmed and lead to early exits.
When companies invest in leadership development, they equip managers with the tools and confidence to navigate complex projects effectively. It also shows a clear commitment to their growth and success. Managers who see opportunities to advance their skills and careers are more likely to stay engaged and committed to their roles. This forward-thinking approach can make a big difference in reducing turnover within construction management.
