MCC Construction Zone Happiness as a Business Model Martin C. McCarthy, CPA, CCIFP
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ontractors nationwide are feeling the impact of the labor shortage. Many are finding it difficult, if not impossible, to hire qualified workers at all levels. As a result, projects are being delayed.
The impact of the labor shortage goes beyond missing deadlines. The high cost of labor is cutting into profits. Contractors are challenged to offer wage and benefit packages that are more than competitive to attract and retain qualified talent.
Even with attractive compensation packages, contractors with a reputation for being demanding and hard to work for may not be able to find and keep good employees. Job satisfaction and happiness are becoming more important as people want – and even demand, a positive work culture.
Good Leaders are Key According to Gallop’s 2021 State of the American Workplace report, only 20% of global workers are engaged in their job. This means that 80% of employees are somewhat or not fully engaged in their work. Gallup estimates that this lack of engagement costs the global economy $8.1 trillion USD annually or nearly 10% of the Gross Domestic Product (GDP). Fortunately, employee engagement is higher in North America where 34% of workers are engaged in their work. Gallop found that less than a quarter of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work. Less than 2 in 10 employees strongly agree that leadership within their organization communicates effectively with the rest of the organization and makes them feel less enthusiastic about the future.
Only a third of global employees strongly agree with the statement, "The mission and purpose of my organization makes me feel my job is important." By moving that ratio to 8 in 10 employees, businesses have realized a 51% reduction in absenteeism, a 64% drop in safety incidents and a 29% improvement in quality. McCarthy.CPA
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