In recent years, the construction industry has faced increasing challenges in recruiting and retaining skilled employees. According to a 2023 survey by the Canadian Construction Association, 38.4% of construction companies nationwide identified recruiting skilled employees as a critical obstacle, with retention cited as a significant challenge by 26.8%. In an industry crucial to Canada’s infrastructure and economy, these numbers are not only concerning but signal an urgent need for innovative solutions.
Employee Ownership as a Strategy to Future-Proof Your Construction Business
Employee ownership offers a solution to recruitment and retention issues by giving employees a vested interest in their company’s success. This model has proven to inspire deeper commitment, reduce turnover, and attract talent— especially in industries where skilled workers are in high demand. Across North America, companies like Chandos and PCL Construction, both employee-owned, serve as examples of how employee ownership can benefit companies in this field. These businesses have not only seen strong financial performance but also report higher engagement and satisfaction among employee-owners.
With our experience in supporting construction companies through tailored employee ownership transitions, we know the impacts on engagement and retention. Our approach aligns employee ownership models with each company’s unique goals, helping to ensure a smooth transition that sets businesses up for long-term success.
Data Backs It Up: Employee-Owned Companies Thrive in Challenging Times
The U.S. has extensively analyzed the impacts of employee ownership, with recent reports showing that voluntary quit rates at employee-owned companies were one-third of the national average in 2023. Employee-owners are often more engaged, motivated, and invested in the company’s success, as they hold a personal stake, whether through their own capital or a company trust.
Our founder, Jennifer, saw these benefits firsthand while leading an employee-owned company during the 2008 recession. She watched employees respond to economic challenges with remarkable commitment, working together to find ways to cut costs instead of resorting to layoffs. Their dedication not only helped the company survive the downturn but strengthened their loyalty and shared sense of purpose.
For construction companies, employee ownership could offer a similar competitive edge. During the COVID-19 pandemic, employee-owned companies outperformed their traditional counterparts, achieving higher retention rates and providing better pay and benefits. For Canadian construction businesses, transitioning to employee ownership could help reduce turnover, attract skilled talent without costly recruiting firms, and secure long-term success through a committed workforce.
Is Employee Ownership Right for Your Construction Company?
If your construction company is among the 38.4% struggling to recruit or 26.8% facing retention issues, consider employee ownership as a long-term solution. Employee ownership is not only for business owners nearing retirement—companies of all stages can benefit from this model. A well-designed employee ownership model can be customized to give employees the benefits they want while providing you with the control you need.
If you’re interested in exploring how employee ownership could work for your company, our team is here to guide you through the possibilities. Schedule a free consultation to see how we can tailor an approach that aligns with your business goals.
Succession Planning? Protect Your Legacy with Employee Ownership
If succession planning is on your mind, you likely want to secure your legacy by preserving what you’ve built, retaining your skilled team, and safeguarding key relationships with clients and partners, transitioning to employee ownership can accomplish all of this, offering you the full value of your company while ensuring that its future is in capable hands.
Timing Your Transition: Take Advantage of Tax Benefits
If you are ready to explore employee ownership, consider acting soon to take advantage of the $10 million Lifetime Capital Gains Exemption available to founders who sell to an Employee Ownership Trust in Canada. This exemption, available through 2026, can provide a valuable tax benefit, making employee ownership even more appealing for those considering retirement.
Conclusion: Future-Proof Your Construction Company with Employee Ownership
For Canadian construction companies, employee ownership represents an opportunity to tackle industry-wide challenges in recruitment and retention while ensuring the continuity of the business. With proven success in retention, engagement, and financial benefits, this model can be your company’s strategic advantage.
Whether you are planning for succession or aiming to improve retention, employee ownership offers a clear path to future-proofing your construction company. Contact us today to learn how employee ownership can work for you and begin building a lasting legacy.
