Employee retention: the real challenge for very small construction companies

As early as 2024, 73% of recruitment in the construction sector was considered difficult, illustrating a persistent labor shortage. However, 98% of construction companies have fewer than 50 employees: it is therefore primarily very small businesses that must meet this challenge of employee retention to maintain their activity, ensure safety on construction sites, and prevent occupational risks.

A tense market where employee retention is becoming vital for very small construction businesses

For a large company, losing a skilled worker is a serious problem. For a company with 5, 10, or 15 employees, it sometimes means a project that can no longer be taken on or that can no longer be completed on time.

The figures are a stark reminder:

• In the construction industry, two out of three recruitments are considered difficult;
• The propensity to recruit is declining: in some areas, the number of construction hiring projects has fallen by more than 20% between 2024 and 2025, as companies give up in the face of difficulties.

Adding to this skills shortage is another major issue: workplace accidents. The construction sector recorded nearly 77.000 workplace accidents (2) in 2023, including 149 fatalities (3), making it one of the deadliest sectors in France. Occupational risk prevention is therefore a major challenge, particularly for small businesses.

A study (4) conducted on nearly 2 million French companies showed that, in companies with fewer than 20 employees, a 10% increase in the frequency of workplace accidents and occupational illnesses leads to a decrease of approximately 0,38% in productivity and 0,24% in profit. Preventing occupational risks, including psychosocial risks, thus becomes a direct lever for performance and employee retention.

For a small business, every serious accident weakens not only the team but also the financial stability. Hence the challenge: to secure key skills by working on both retention and prevention.

Retaining employees without overly complex HR processes: realistic strategies for small businesses

In very small construction companies, there's no HR department, nor sophisticated career path. Recruitment and management are often the responsibility of the owner, who is already busy with production, clients, quotes, and administration. This doesn't mean there's nothing to be done; it simply means the levers must be simple, concrete, and adapted to the size of the company.

Some realistic suggestions:

• Regular performance reviews, tailored to small businesses, can play a key role in employee retention. Even without a formalized procedure, taking an hour each year to check in with each employee about their well-being at work, their expectations, and their career development prospects (becoming a team leader, apprentice mentor, safety officer, etc.) helps to identify signs of disengagement before they lead to departures. Regulations mandate performance reviews every two years, but using this approach more frequently (for example, annually) can become a valuable tool for dialogue with teams.
• Opportunities for advancement within a small team. In a very small business, a new position isn't created every six months. But an experienced worker can be entrusted with preparing certain work sites, welcoming apprentices, leading a safety briefing... These are small changes that strengthen the sense of recognition and responsibility, without disrupting the organizational chart.
• Short, targeted training to develop skills. Regular access to technical or preventative training, even short courses, is a key factor in employee retention. Industry surveys show that skills development is a central lever for retaining talent in the construction sector.
• Profit-sharing bonuses are a tool for employee retention that is well-suited to small businesses. The law on profit-sharing facilitates the implementation of profit-sharing bonuses (PPV) or simplified incentive agreements in SMEs. Without resorting to highly sophisticated schemes, it is possible to:
  • To link part of the bonus to simple criteria (annual result, absence of accident, respect for deadlines).
  • Consider offering one or two key employees a minority stake in the company in the medium term. For a team leader or an indispensable right-hand person, knowing they can share in the results – or even acquire equity – can be a powerful incentive for loyalty, in addition to their base salary.

Prevention and well-being in buildings: when safety becomes a true differentiator

Recent studies conducted by OPPBTP and the Viavoice Institute show that 94% of construction workers feel concerned about prevention, and that safety culture is progressing in companies, but that very small businesses are lagging behind due to a lack of time and resources. In other words, employees expect these issues to be addressed seriously, including in small businesses – and this is where a company can differentiate itself.

Here is an example of a construction company that illustrates this underlying trend (5): CRT is a very small masonry company in the Alpes-de-Haute-Provence region, with 9 employees. Specializing in masonry and renovation, the company has made employee well-being and prevention a strategic focus: regular investments in equipment to reduce physical strain, premises with a kitchen and shower, careful consideration of work organization, and the provision of an exoskeleton to support a colleague who recently underwent surgery for a herniated disc. The manager's stated objective is clear: to improve working conditions and reduce employee turnover. In a rural area where "word gets around very quickly," the quality of working conditions and safety also become a key asset for attracting and retaining employees.

In small businesses, investing in prevention and quality of life at work is not just a cost, but a lever for performance (fewer accidents, more productivity) and loyalty.

For a small construction company, retaining employees goes beyond salary. Being able to tell a candidate—and demonstrate to their teams—"Here, we work in good conditions, we prioritize safety on construction sites, we provide regular training, and when the company is doing well, everyone benefits through profit sharing" is often more powerful than a simple pay raise. Employee retention requires constant attention to employee well-being, occupational risk prevention, and recognition of commitment on the job. Keeping skilled workers means treating these issues as a core project, as strategic as a successful bid.

(1) www.lesechos-etudes.fr

(2) www.assurance-maladie.ameli.fr

(3) www.lemonde.fr

(4) www.inrs.fr

(5) www.preventionbtp.fr

Opinion piece by Matthieu Larvol, Head of HR Consulting and Training at ACTIFORCES, ORCOM's HR brand (LinkedIn).