PROBLEM STATEMENT Why is retention so critical?
• The AEC workforce is in high-demand: •
Many firms are turning down work due to staff shortages. 1 • It’s projected that an additional 501,000 workers will be needed in 2024, beyond the normal hiring pace. 2
• To address workforce shortages, it is critical for our industry to retain our existing talent .
Plus, staff turnover is costly: •
•
Turnover has increased in recent years, landing at 14.1% in 2024. 3 • On average, it costs employers between 50-200% of an annual salary to hire and train a new employee. 4 • When an AEC firm makes an intentional commitment to support their employees throughout the entire “Hire to Retire” cycle , this can foster deeper staff loyalty and lead to reduced turnover.
• This enhanced level of employee support may require additional investment in terms of policies, benefits, and cultural shifts.
• However, the positive payback should be considered from both a financial and time-based perspective, in terms of reduced hiring, onboarding, and training needs.
• Improved retention also leads to successful future recruitment efforts.
1 ACEC Research Institute 2 Associated Builders and Contractors
3 Zweig 2024 Financial Performance Report 4 Gallup
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