Nine tips to get and keep a good construction workforce

The economy continues to pick up. This is good news, of course, but at the same time it also brings problems. The labor market is increasingly tight and it is difficult to find good and affordable staff. Below are nine tips for getting and keeping good staff.

Attracting staff still seems easy, but retaining good staff, on the other hand, is less straightforward. Besides good working conditions/a good salary, employees also want to see opportunities for advancement and (personal) attention. This can be done with financial incentives, but also by investing in training, flexible working hours or sports.

Please note that all of the financial options listed below must be clearly recorded to avoid discussion This can be done by including the arrangements in the employment contract, in a supplement to an employment contract (addendum) or in a separate agreement.

However, in the face of these fine terms of employment, as an employer you also need to arm yourself. Of course, you want to prevent these employees from (being able to) quit in the same way.

Our tips for attracting and retaining employees:

1. Wage increase

Implementing a pay raise is one of the simplest ways. However, keep in mind that this also affects taxes, social security contributions and pension contributions. In addition, higher wages can also have a negative impact on the employee because certain allowances for rent, healthcare and childcare may be cancelled.

2. Bonus Scheme

To better respond to the employee's personal development and goals, bonus plans are often agreed upon with employees. Of course, the employer can also include certain goals in the bonus scheme.

3. Profit Sharing Scheme

By introducing a profit-sharing scheme, it is agreed that employees will receive a percentage of the profit when they achieve a positive result, provided the profit exceeds a predetermined amount. Conditions can also be imposed on participation in the profit-sharing scheme. For example, it can be agreed that employees can only claim this if they have been employed for the entire calendar year.

4. A stock appreciation right (SAR).

The essence of a SAR is that the employee receives a right of action on the value development associated with a share in the company. Suppose an employee receives a SAR corresponding to 1 percent of the shares in the company. The company is valued at one million euros. If the employee decides to leave after five years, he can exercise the SAR. The amount the employee receives depends on the value of the company at the time of exercise. Suppose the shares via the agreed valuation method are then worth three million, the employee receives €30,000 and benefits from a €20,000 increase in the value of the shares.

5. Certificates or non-voting shares

This is a complex option that requires a lot of work. The use of a notary is required and there are disadvantages to the construction related to control and information sharing. Therefore, for most construction companies it is not interesting.

6. Invest in training

Continue to invest in training. That way, employees can often continue to perform their jobs longer and better. Investment in training is not only a necessity for motivating and retaining good employees, but also a condition for being able to say goodbye to less well-performing employees. Employers have been expected to invest more in employee training and supervision since the introduction of the new dismissal law and the Work and Security Act. In order to dismiss employees, there is a requirement to first examine whether the employee cannot be redeployed through retraining and/or further training.

7. Greater flexibility

Employees often need flexibility regarding working hours. For (office) jobs where working from home is possible, this is easy to arrange. But for a carpenter or bricklayer, the situation is often different. Still, it is worth exploring whether flexible start and end times can be used or a system can be created where staff schedule themselves. They then become responsible for their own scheduling and can better accommodate work and care responsibilities.

8. Encourage health

More and more employers are implementing healthy extras for their employees such as a bicycle plan, healthy lunch and/or facilitating and financing fitness and sports internally or externally in the form of a sports subscription. Especially for construction workers, who do physically demanding work, this is not a bad investment.

9. Agree restrictive covenants

To prevent good staff from simply transferring to a competitor or making direct contact with important clients and suppliers, you can make (competition) restricting agreements. Many employers and employees are under the impression that these types of agreements are not valid, and an employee cannot be confronted with these agreements when transferring to a competitor. The reality is different. Although the rules in the law on entering into a non-competition clause were changed in parts in 2015, it is still common to include a non-competition and/or non-solicitation clause in employment contracts. A prohibition on recruiting colleagues for another employer is also common.

It is also important to note that contracts for services concluded with freelancers often include a non-competition or non-solicitation clause. Although this is allowed, it is not always wise. It is an indication that this is not a contract for services, but an employment contract. In addition, the Supreme Court has ruled that zzp'ers are also subject to the so-called "ban on obstruction" under the Waadi. This means that clients may not agree, not only with employees on loan, but also with self-employed persons, that they may not enter into employment with the hirer or perform work for it.

Regardless, it is not unusual to agree restrictive covenants with employees and hold them to them. Record the agreements properly and make sure they are signed by the employee. That way, you'll prevent a good employee from walking away with nothing you can do about it.