CONTEXT

Zionism 2000, an NGO in Israel, is dedicated to promoting economic growth and securing employment across key industries, including construction. 

In the construction industry, site managers are responsible for overseeing the day-to-day operations on construction sites, ensuring that projects are completed on time, within budget, and according to safety regulations. The construction industry in Israel has been grappling with a high turnover rate among construction site managers, exacerbated by a 15-25% gap between supply and demand for these critical positions. This shortage has intensified competition among employers to retain skilled workers, leading to frustration due to low retention rates and perceived lack of employee loyalty.

OUR APPROACH

We employed a multi-faceted behavioral approach to uncover the root causes of site manager turnover:

1. International Benchmarking: We conducted a focused literature review of size managers in construction industries who bear critical similarity to the Israeli market. After reviewing and analyzing different countries, we chose the UK and Sweden. The goal was to examine how different role definitions, paired with various barriers and incentives (including but not limited to salary levels), influence the landscape of site manager retention in these markets.
   
2. Interviews: We held in-depth interviews with industry professionals and site managers in Britain, Sweden, and Israel to gather diverse perspectives.
   
3. Social Media Analysis: We engaged with social media groups within the construction industry to tap into the unfiltered concerns and motivations of site managers, by analyzing the sentiment and concerns raised by site managers.
   
4. Focus Groups and Survey: We organized focus groups and designed a comprehensive survey, executed by a third-party research firm, which was completed by 300 construction site managers.
   
5. Data Integration: Eventually, we conducted a thorough data analysis, matching survey responses with qualitative insights from interviews and focus groups to create a holistic understanding of the issue.

FINDINGS AND RESULTS

The comprehensive analysis identified nine key factors that collectively contribute to site manager turnover, with each factor being rated as more than 30% important. The most significant of these factors included:

• Criminal Liability for Site Safety: Site managers were under immense pressure due to the potential legal repercussions in the event of an accident. This liability was exacerbated by a lack of sufficient support and authority to effectively ensure site safety.
• Long Working Hours and Stress: Extended working hours and high stress levels were common, leading to burnout.
• Lack of Career Growth: Many site managers felt there was limited opportunity for professional development.

A critical finding was that these factors, when experienced in isolation, did not necessarily lead to turnover. However, when multiple factors accumulated beyond a certain threshold, they collectively drove site managers to leave their positions.

We concluded that in order to effectively reduce the high turnover rates, the industry needs to recognize these contributing factors and the detrimental impact of their accumulation. Addressing these issues requires more than just increasing site managers’ salaries, which is a common but insufficient approach.

Recommended initiatives include offering liability insurance to site managers, redistributing responsibilities by creating team-based workloads, and implementing strategies to mitigate stressors. Additionally, employers should recognize site managers as individuals with long-term growth aspirations and provide clear pathways for career development, fostering loyalty, motivation, and professional advancement.

IMPACT

The insights gained from this project have equipped Zionism 2000 and the broader construction industry with a deeper understanding of the complex dynamics leading to site manager turnover. The findings have highlighted the need for a multi-pronged approach to retention, where simply raising salaries is insufficient. Equipped with a new and nuanced mental model of site managers’ perspective,  Zionism 2000 plans to empower industry stakeholders to develop a strategic action plan aimed at reducing turnover and improving retention rates across the sector.

INSIGHTS