Planning for the future of a company is greatly dependent on the talent that is in place today, and whether or not a building firm is able to retain that top talent in the future. Many builders are not aware of changing employment trends and unknowingly miss opportunities to attract and retain the employees that will shape the future of their company.
For example, tomorrow’s leaders are Millennials and Gen Xers. These two groups have a different outlook on employment and the workplace than today’s leaders, many of whom are Baby Boomers. As more companies look to bolster their teams, these five tips will help to retain top talent.
Define career growth and opportunity. The top driver for Millennials, as discovered during RETS Associates’ recent proprietary study of Millennials in real estate, is career growth and opportunity. Companies that successfully retain top talent provide individuals with opportunities tailored to their strengths and defined paths for career advancement. When a company identifies an individual employee’s specific motivators and presents a timeline for his or her advancement, employees gain valuable insight into the future of the company and the opportunities within. To capitalize on those opportunities, the employee will need to perform, but the communication from the company about potential advancement and expectations will lay the groundwork for an identifiable career path for that team member to pursue.
Focus compensation on market rates and worth. To retain top talent, a company
must be willing to provide at- or above‑market-rate compensation. This market
rate varies depending on the cycle and size of the market. For example, a
builder in a bolstering market, like the San Francisco Bay Area, must invest
more in an employee compared to a builder operating in a more stable market,
such as Los Angeles or the Inland Empire. In fact, over the past four years,
base salaries for a number of different functional segments have increased up
to 40% in the Bay Area, whereas, they have increased by only 20% in Los
Angeles. The reality is that if a building firm does not take care of its top
performers, another one will. In today’s war for talent, many companies are
prepared to pay at-or-above market rates to secure top talent and future