Financial Tips to Lower Construction
Employee Turnover

The cost of replacing an employee could be up to twice their salary. This is why high turnover rates can be costly for companies of all sizes. It’s not just that you spend time and money finding and training replacement workers. When you lose talent or wind up short-staffed, you also may struggle to meet deadlines, hit production targets, deliver high-quality work and maintain safety standards. All that can damage your reputation and your bottom line.

Let’s take a closer look at what’s behind employee turnover in the construction industry. We’ll explore the key factors — financial stability and agility — that can help you improve labor retention and address small business labor shortages.

WHAT’S DRIVING CONSTRUCTION EMPLOYEE TURNOVER?

Construction workers leave their jobs for all kinds of reasons. In some cases, they’re seeking higher pay or better benefits at another construction firm or in a different industry. There are also other, more intangible factors that may lead employees to seek employment elsewhere. These include:

• Training: Does the company help employees develop their skills, both when they’re new and over time?

• Safety: Is the work environment safe? Does the company place a high value on employee health and well-being?

• Growth: What opportunities are available for advancement? Are top performers recognized and rewarded?

• Hours: How long and grueling are work shifts? Are flexible work arrangements an option?

3 WAYS CAT FINANCIAL CAN HELP REDUCE HIGH TURNOVER

If you’re struggling with how to manage during high turnover, Cat Financial can help. We do more than simply finance Cat^® equipment. We’re here to support you for the life of your business and offer solutions to help you overcome financial obstacles. This allows you to stay agile and adapt to changing business needs.

1. Acquire equipment while saving cash for other needs.
   
   Ready to add new or used equipment to your fleet? Our leasing options can help you obtain what you need with less capital investment required. A lease from Cat Financial gives you the option of equipment ownership at a lower monthly payment than a loan. An operating lease spreads out payments over time for the lowest monthly payment. Both types of leases may allow you to allocate cash for other priorities, such as employee wages, benefits or training.
   
   Also, remember that renting is another option that can offer financial flexibility, especially when you only need equipment for the short term. This comparison of loan, lease and rental options from Cat Financial provides a quick look at the advantages of each solution.

2. Pay for parts and services when your finances allow.
   
   When you need a replacement part for a machine or a repair on a component, there’s usually no time to wait. You want your equipment on the job, so your employees can keep working and your business can keep earning money. The Cat Card gives you the financial flexibility to purchase the parts and services you need when you need them — and then make low monthly payments over time.
   
   You can use this unsecured line of credit to pay for parts, rentals, attachments, repairs and rebuilds, along with protection and service plans for your equipment. Cat Card holders also get access to exclusive financing offers and earn Cat Vantage Points on every purchase — which may result in even more money-saving opportunities. (Visit cat.com/catcardrewards for eligibility, terms and conditions.)

TAKE STEPS NOW TO TACKLE TURNOVER

Consider your financing options and work proactively to retain your crew and help tackle turnover. Take, for instance, the cost of a Cat Mini Excavator. When you take advantage of 0% financing for 36 months, your expected monthly payment could be $1-2.5K. Factoring in labor costs, fuel, maintenance, parts and labor, that’s upwards to $7.5K in costs for one machine. Though it’s easy to lock your cash up with the demands of your job, you retain employees when you demonstrate profitability and reliability. Leveraging options like flexible Cat leasing options, The Cat Card, CVAs and EPPs make that possible.

Don’t let small business labor shortages affect your profitability. Work with us to stay financially nimble so you can reduce turnover and retain the talent your business needs to succeed. Explore our financing solutions and discover how Cat Financial can help you plan ahead. When you find the right solutions for your jobsite, you’ll be able to recover more quickly from setbacks and keep your team busy and satisfied.