How to cultivate your staff

For the past 12 years, with the exception of 2005, the construction industry has undergone unprecedented expansion, and at least five more years of growth are forecast. According to research carried out by the sector skills councils, 13,000 construction workers and 1,500 electricians and plumbers are needed to ensure the 2012 Olympic Games in London are ready on time.

It seems unbelievable that at such a high point, so many companies could be facing financial difficulties, but a shortage of skilled workers is putting not only the Olympic Games at risk, but also every small to medium contractor trying to compete.

As soon as it was announced that Britain would host the Games, those who had the frameworks to predict their future workload were able to tie staff into longer-term contracts. But one-off contractors and small to medium companies are now left vying for few workers, who are being enticed from their permanent jobs with inflated hourly rates. The last three years of the Olympic project are expected to be the most damaging because, as time runs out, contractors will pay whatever is required to get the work completed on time.

Aside from the Olympics, the general increase in demand for construction has meant the big national companies can pick the best of the project crop, which means small to medium companies are in a rare position where they are able to bid for larger projects. But without experienced staff tied to long-term contracts, such firms are vulnerable and under greater financial risk.

They need to plan now to retain existing and potential staff, as only companies with skilled and experienced workers will be able to take advantage of these lucrative projects.

Employee benefits are one way of retaining and attracting the best people. There is evidence they can reduce staff turnover, saving on training and recruitment costs, and contribute to a company becoming ‘an employer of choice’. Smaller companies unable to match high wages can reward loyalty and attract new skilled labour with employee benefits.

Welplan, a wholly owned subsidiary of the Heating and Ventilating Contractors’ Association (HVCA), has been offering employee benefits since it introduced the H&V industry’s sick pay and death benefit scheme in 1955. It enables small to medium companies in the building services industry to compete with the large organisations.

Welplan provides one-stop-shop employee benefits for 40,000 employers who have anything from two to 30,000 staff. Small to medium companies usually find it difficult to obtain the large discounts that the larger companies can, but Welplan is able to do so by acting like a large employer for the industry.

There is some resistance among employers who believe the administration will require an extra member of staff. But Welplan caters for each individual employer, who benefits from direct access to trained, experienced staff.

The firm offers H&V pensions, holiday pay, life cover, healthcare and welfare, and sick pay. The minimum package begins at £72 a year per employee for welfare benefits, but if the employer were to buy the holiday pay scheme as well, with the savings on national insurance contributions, the company would save between £250 and £300 per head.

Welplan’s H&V pensions is an industry-wide scheme attracting corporation tax relief and is a painless way to abide by the government’s scheme to ensure every employer offers pensions by 2012. By then employers will be obliged to contribute 3% and employees to contribute 5% of their gross earnings.

The bidding war for the few skilled workers has already begun. Are you a contender?