What do the most successful construction companies have in common? Strong leadership, efficient processes and the ability to support a workforce in an increasingly competitive labor market.
To better understand what separates high-performing construction companies from the rest, nearly 350 construction professionals across the US and Canada shared how their HR teams operate, where they struggle and how technology supports or hinders their growth. Most respondents were from construction companies with less than 500 employees.
The goal was to identify HR maturity levels across the industry and understand how those levels connect to business performance. Companies with the highest HR maturity - those using integrated technology, structured leadership development and dedicated HR leadership - experience lower turnover and faster growth than their peers.
The construction companies growing fastest aren’t just hiring better, they’ve built HR functions mature enough to support growth.
Strong Onboarding Tied to Lower Turnover
Turnover is one of HR’s biggest headaches. High turnover disrupts productivity, weakens engagement and consumes valuable HR time as teams repeatedly recruit to fill open roles. Onboarding plays a critical role in changing that pattern.
Companies reporting turnover rates between 11% and 30% often lack a formal onboarding process, relying on manual or inconsistent approaches. In contrast, organizations with structured or automated onboarding consistently report less than 5% turnover in the first 90 days.
The results are clear, construction companies with high HR maturity have onboarding programs in place that retain more employees.
Early turnover isn’t just a hiring problem, it’s often an onboarding problem. Companies relying on manual or inconsistent onboarding are putting retention at risk before new hires ever reach the field.
Building Leaders Engages Workers
Worker development, including succession planning, is a key driver of engagement. Companies that prioritize supervisor and foreman leadership training consistently report lower turnover and stronger employee engagement.
Those with formal leadership training programs see significantly lower first 90-day turnover, under 5%, compared to organizations without structured programs, where turnover ranges from 11% to 30%. Comprehensive development programs that include online training, certification tracking and analytics are far more effective than limited or informal efforts.
High Growth Aligns with Dedicated HR Leadership
Nearly one in five respondents report having no HR professional on staff, with responsibilities instead handled by finance, administration or office managers. Growth outcomes look very different for these companies.
Organizations with dedicated HR leadership grow faster and rate themselves as more strategic and operationally strong. When HR is managed by non-HR roles, such as CFOs, payroll staff or office managers, growth tends to lag behind peers.
Early-stage and compliance-focused companies are also more likely to split HR responsibilities across multiple non-HR roles, limiting HR’s ability to support long-term growth.
When HR is treated as a shared responsibility instead of a leadership function, long-term workforce planning often takes a back seat. Dedicated HR leadership creates the structure needed to move beyond compliance and support sustainable growth.
Integrated Systems Improve Profitability
Construction companies use a wide range of HR technology, including payroll, time tracking, recruiting and benefits management. Yet for many, these systems operate in silos. Only 5% of respondents report full integration across their HR technology, while nearly half are only partially integrated.
Disconnected systems create inefficiencies, require duplicate data entry and limit HR’s ability to deliver strategic insights. Companies that invest in integrated systems can more easily track metrics, spot trends and make data-driven workforce decisions and they grow faster as a result.
Disconnected systems don’t just slow HR down, they limit visibility. Without integrated data, leaders are often forced to make workforce decisions without a clear picture of what’s driving turnover, engagement or productivity.
Learn Your HR Maturity Level
Beyond highlighting how HR maturity relates to company growth, the 2026 State of Construction HR report breaks down each maturity level and practical examples of how construction companies can get to the next level.
Download the report and HR maturity assessment to benchmark your HR approach, identify gaps, and explore what higher-performing construction companies are doing differently.
