Cleansing of the Dead Pool
Neil Lockhart
?? Leading the Revolution to Solve the Construction Industry’s Labor Shortage.??
How was your Labor Day weekend? Did you remember to salute America's construction workers amid the festivities?
Well, it's Tuesday. You're back from a well-deserved break and getting back to the daily tasks of building, managing, and coordinating your construction teams.
For many construction organizations, hopefully, it’s not back to business as usual. And may I suggest it should be anything but back to business as usual.
Post Labor Day is the perfect opportunity for something of great significance: a "cleansing of the dead pool" - purging underperforming Superintendents, Construction Managers, Project Manager, and other underachievers occupying key positions; thus, making room for fresh talent who can drive projects forward with renewed energy and efficiency.
The Concept of Cleansing of the Dead Pool
The concept I refer to as "cleansing of the dead pool" is an essential aspect of strong leadership. Admittedly, the responsibility of separating from those who do not make a significant impact in the construction process causes many to hesitate. This hesitation often prevents the necessary decisive action, which is a major reason why individuals who fail to make substantial and effective contributions continue to draw a salary.
Granted, too, it's not the easiest thing to do. And if done outside legal bounds, well, that's a whole other conversation.
But just as a backyard needs weeds pulled regularly to flourish, so too does a construction company need to prune its workforce. Releasing those not pulling their weight, to ensure the team is healthy, efficient, and motivated is why leaders are called to lead.
Coming back after the Labor Day holiday is a perfect time to perform this cleansing. With the summer projects winding down and new ones on the horizon, it’s a natural checkpoint to evaluate who’s been pulling their weight and who's dragging the team down. This is essentially about setting a standard of excellence and maintaining it.
Understanding the Need for a Cleansing Process
I don't need to remind you, construction projects are high-stakes endeavors where timelines, budgets, and quality are constantly in focus. If you're a General Contractor or a Developer, you know the performance of all personnel, from the laborers to the VP Construction, has a significant impact on the outcome of a project. When a company retains employees who are not meeting their responsibilities, it leads to costly delays, compromised safety, and strained relationships with clients.
An article from Construction Executive notes that poor performance and lack of accountability among workers are among the top reasons projects fail to meet their goals. The publication emphasizes the importance of maintaining a high-performance culture, which begins with the people who make up the team.
The Role of Recruitment in the Purge
So, a successful cleanse isn’t just about letting people go. It’s about having a robust recruitment strategy in place to fill those gaps with the right talent. "Firing" and "hiring" more than rhyme; they are the lifeblood of successful organizations. But let it be noted the former requires the deftest touch possible.
According to a study by the Associated General Contractors of America (AGC), over 80% of contractors reported having difficulty finding qualified professionals. As I mentioned in "The Math and Science Behind Recruitment: Algorithms, Analytics, and Accuracy" 8/26/24, retained recruitment, in particular, provides the best statistical outcomes for construction companies. It focuses on a comprehensive search for top talent, ensuring that the new hires are skilled professionals who can drive the company forward.
This reduces the likelihood of having to repeat the "dead pool" cleanse due to poor hiring decisions.
Learning from Examples and Industry Insights
Consider the case of Jackson Construction, a mid-sized firm in Chicago that struggled with high turnover rates and project delays due to an underperforming staff. After deciding to cleanse their dead pool post-Labor Day, they partnered with a retained recruitment agency to revamp their hiring process. By focusing on quality over quantity, they were able to replace the underperforming with highly skilled professionals who were eager to hit the ground running.
“Taking the time to recruit properly and invest in your team is critical,” says Jane, HR Manager at Jackson. “After our cleanse, we saw a dramatic increase in productivity and overall morale. It was a game-changer for us.”
Similarly, a report by the Construction Industry Institute (CII) highlights the importance of maintaining a lean and efficient team. It emphasizes that regular workforce assessments can help identify skill gaps and opportunities for improvement, ensuring that the team is always at its best.
For example, during a post-Labor Day review, a large construction firm in the Bay Area found that some of its staff lacked the necessary certifications for upcoming projects. By working with a retained recruitment firm, they were able to quickly fill these gaps with properly certified professionals, avoiding potential delays and compliance issues.
Expert Opinions on Cleansing the Dead Pool
Industry experts agree that the post-Labor Day period is an ideal time for construction firms to reassess and cleanse their workforce. According to a seasoned construction consultant, “Labor Day offers a natural break in the year to reflect and regroup. It’s the perfect time to evaluate your team’s performance and make necessary adjustments.”
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A study by the Harvard Business Review also supports this view, noting that companies that regularly assess and adjust their workforce tend perform at an extremely high level, avoiding potential delays and compliance issues.
The Financial and Safety Implications of Workforce Cleansing
Beyond performance, there are significant financial and safety implications associated with maintaining a subpar workforce. The Occupational Safety and Health Administration (OSHA) reports that construction sites with undertrained or unmotivated workers experience higher rates of accidents, which can lead to costly fines and even lawsuits.
For example, a construction company that fails to regularly assess and cleanse its workforce may find itself repeatedly facing safety violations. This was the case with a major construction firm in Texas that incurred over $1 million in fines in one year due to repeat safety lapses.
Financially, retaining underperforming employees can incur significant costs. The Center for American Progress estimates that the expense of keeping such construction employees is equivalent to a loss of 20% of the employee's salary compared to their productivity. This estimate doesn't even consider the additional productivity losses and potential damage to the company's reputation. Construction companies can reduce these costs and protect their profitability by actively managing their workforce through regular performance evaluations.
The Psychological Aspect: Building a Motivated Team
There’s also a psychological component to consider. When the unmotivated are allowed to remain on a team, it has a demoralizing effect on the rest of the workforce. This is confirmed by many of our candidates who seek to leave their positions because of low moral caused by underachieving team members.
High-performing employees become frustrated by the lack of accountability, leading to decreased morale and productivity. By cleansing the dead pool, Developers, for example, signal to their teams that excellence is expected and rewarded, which then boosts overall motivation and engagement.
The example of a New York-based construction company is a case in point. They noticed a decline in productivity despite having a strong training program. After conducting a thorough review, they discovered that a handful of employees were consistently underperforming. The company decided to make a change and, after a rigorous recruitment process, brought in new talent. The impact was immediate - morale improved, and productivity soared.
A Call to Action: Embrace the Cleansing Process
A post-Labor Day cleanse isn’t just about letting people go; it’s about creating an environment where everyone thrives. It’s about recognizing the potential within your team and making the tough choices that will allow your company to build better, faster, and smarter. By approaching this period with a strategic mindset, you'll set yourself and your team up for success in the months and years ahead.
Do you have employees who aren’t meeting expectations? Are there skill gaps that need to be addressed?
What are you doing about it?
Because in the end, it isn’t only about realizing who shouldn’t be on the team - it’s about seeing the bigger picture and understanding that the right people, in the right roles, are the foundation of any great construction company
Questions? Message me to schedule a conversation about how we can help you purge and recruit top performers for your team.
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To discover more about the benefits of partnering with us for your construction staffing needs, message me here on LinkedIn, and please click on this link: Neil Lockhart – AmeriConstruct - Blueprint (bpcmag.com)