Keep Your Tradespeople: How Benefits Boost Retention

Why Benefits Matter in Construction Hiring

In the skilled trades, one of the biggest challenges employers face is turnover—especially when workers leave mid-project. This disrupts timelines, increases costs, lowers morale, and can damage your reputation with clients.

Offering strong employee benefits like health, dental, and financial security can significantly improve retention and help build a more stable workforce.

The Skilled Trades Labour Shortage in Canada

Canadian employers are facing a growing shortage of skilled tradespeople:

  • 700,000 trades workers are expected to retire between 2019 and 2028 (Government of Canada)
  • Trades employment dropped 5.7% from 2016 to 2021, with declines in younger age groups (Statistics Canada)
  • In late 2024, 37.3% of businesses anticipated labour-related challenges, including retention issues (Statistics Canada)
  • Voluntary turnover in trades often exceeds 10%, higher than average across industries (Mercer)

These trends show a clear need to not only recruit but retain skilled workers.

How Benefits Improve Retention

Benefits are more than perks—they’re strategic tools that help keep workers on the job.

      Benefit Type      Retention Impact
    Health & Dental    Reduces stress and encourages long-term commitment
    Stability & Predictability    Promotes loyalty through consistent hours and eligibility
    Preventative Care    Lowers absenteeism and shows investment in worker well-being
    Financial Security      Adds peace of mind with disability, life insurance, and retirement options
    Job Satisfaction    Builds morale and loyalty by showing workers they’re valued

Canadian Data That Supports the Case

  • A study by the Conference Board of Canada and TELUS Health found an 83% gap between the benefits employees want and what they receive. This gap leads to disengagement and higher turnover.
  • Companies with well-designed benefit plans report lower turnover and stronger employee loyalty (WellByte).
  • According to the Benefits Canada Survey, health benefits rank just below wages in importance when employees consider staying in a job.

The Real Cost of Losing Workers Mid-Project

Turnover during a build can lead to:

  • Recruitment and onboarding delays
  • Missed deadlines and overtime costs
  • Quality issues and costly rework
  • Team burnout and client dissatisfaction

Employers who offer strong benefits see fewer mid-project exits and better continuity across builds.

Practical Tips for Employers

1. Offer meaningful coverage
Include health, dental, vision, mental health, and paramedical services.

2. Design flexible plans
Use Health Spending Accounts and offer options for families or specific needs.

3. Ensure benefit stability
Maintain coverage during slow periods or seasonal work.

4. Communicate clearly
Use simple guides and reminders so workers understand their benefits.

5. Benchmark and adjust
Compare your offerings to others in the industry and survey your team regularly.

6. Pair benefits with other retention tools
Combine benefits with job stability, career growth, safety, and strong leadership.

Build a Workforce That Stays

Strong benefits help you recruit and retain skilled tradespeople. They reduce turnover, improve morale, and keep your projects on track.

 Learn more about building benefits that retain trades talent.