THE REAL COST OF LOSING AN ESTIMATOR
The construction industry is booming globally. According to GlobalData, the global construction market is expected to reach a staggering $15.7 trillion by 2023, fuelled by urbanization, infrastructure development, and a growing middle class.
This surge in activity presents a wealth of opportunities for construction companies – but also significant challenges.
Did You Know? Global Construction Industry Facts
The global construction industry employs over 100 million people worldwide (International Labour Organization).
Construction contributes roughly 6% of global GDP (World Bank) .
By 2030, the global construction market is projected to grow by 3.6% annually (Statista).
Why is losing an estimator such a critical blow?….
Estimators are the lifeblood of a company's tendering process.
They act as the financial architects, meticulously analysing project plans, specifications, and market trends to develop accurate cost estimates. These estimates are the foundation for bidding on new projects.
Without a skilled estimator, a construction company is essentially flying blind, at risk of:
Submitting Uncompetitive Bids: Inaccurate cost estimates can lead to bids that are either too high (losing out to competitors) or too low (resulting in project losses).
Missed Revenue Opportunities: With a limited capacity to tender for new projects due to the lack of an estimator, companies miss out on potential revenue streams.
Project Delays and Cost Overruns: Even if a bid is successful without an accurate initial estimate, the project is more susceptible to delays and cost overruns during construction.
The Numbers Don't Lie: The Estimator Retention Challenge
The problem is compounded by the high turnover rate among estimators.
According to a 2022 report by the National Association of Home Builders (NAHB), the average construction industry employee tenure is only 4.2 years.
However, our internal research at GEDON reveals a much more concerning statistic for estimators – an average tenure of just 3.8 years. This means estimators are nearly 10% more likely to leave their positions compared to the industry average.
So, what's driving this exodus?
Several factors contribute to the high turnover rate of estimators:
Demand Outstrips Supply: The global construction boom has created a significant demand for skilled estimators, exceeding the available talent pool. This fierce competition drives salaries upwards, leading some estimators to job hop for better opportunities.
Burnout and Workload: The role of an estimator is demanding, requiring meticulous attention to detail, long hours, and the pressure of meeting tight deadlines. This can lead to burnout and dissatisfaction, prompting estimators to seek less stressful positions.
Lack of Career Development: Many companies fail to invest in the professional development of their estimators, hindering their growth prospects and leading them to seek out companies that offer more comprehensive training and career advancement opportunities.
Can Losing an Estimator Affect Your Business
The consequences of losing a skilled estimator can be far-reaching. As mentioned earlier, an immediate impact is the disruption to the tendering process. However, the effects can ripple through the entire organization:
Reduced Profitability: Fewer successful bids translate to lower revenue and potentially shrinking profit margins.
Demoralized Workforce: A talent gap can create uncertainty and a sense of instability within the team, potentially impacting overall morale and productivity.
Reputational Damage: A company's reputation for delivering projects on budget and schedule can suffer if estimations are inaccurate.
Building Resilience: Strategies to Mitigate the Estimator Exodus
The good news is that construction companies can take proactive steps to mitigate the risk of losing their vital estimators:
Invest in Retention: Creating a positive and supportive work environment, offering competitive salaries and benefits, and recognizing the value of estimators is crucial for retention.
Develop a Succession Plan: Having a clear plan for replacing team members, including estimators, ensures a smooth transition when someone leaves. This might involve identifying high-potential individuals within the company and providing them with training and mentorship opportunities.
Building Your "Estimator Bench": A Proactive Approach
The concept of an "Estimator Bench" is similar to having a roster of talented substitutes on a sports team. By proactively identifying and nurturing potential estimator candidates, you create a readily available pool of talent to tap into when needed. Here's how to build a strong Estimator Bench:
Partner with a Specialist Recruitment Agency: GEDON, with its expertise in the construction industry and a deep understanding of the specific role of an estimator, can help you source top talent. We leverage our extensive network and proven recruitment strategies to identify qualified candidates who align with your company culture and project requirements.
Invest in Early Talent Identification: Look beyond immediate job openings and consider attending industry events, university career fairs, or collaborating with vocational training programs to connect with promising individuals with a passion for construction.
Offer Internship or Apprenticeship Programs: Providing practical experience through internship or apprenticeship programs allows you to groom future estimators while nurturing a strong talent pipeline within your organization.
The Rewards of a Strong Estimator Team
Investing in your estimators goes beyond just mitigating turnover. A team of skilled and motivated estimators offers a multitude of benefits:
Increased Bid Success Rates: Accurate and well-researched estimates enhance your competitiveness, leading to a higher win rate for tenders.
Improved Project Profitability: Accurate cost estimates enable better project costing and resource allocation, maximizing profitability.
Enhanced Client Relationships: Meeting project budgets and timelines fosters trust and strengthens client relationships, leading to repeat business and referrals.
Boosted Company Reputation: A consistent track record of delivering projects on budget and schedule solidifies your company's reputation for excellence within the industry.
#The Proof is in the Progress!
Partner with GEDON™ for a Thriving Construction Business
At GEDON™, we understand the crucial role that estimators play in the success of a construction company. "The Proof is in the Progress" is not just our slogan, it's the foundation of our approach.
We are a team of experienced executive recruiters specializing in the construction industry. We take pride in partnering with our clients to build exceptional teams, starting with finding the best estimators in the market.
Whether you're looking to fill an immediate vacancy or proactively build your Estimator Bench, we can help you identify, attract, and retain the top talent necessary to navigate the booming construction landscape.
Contact GEDON today and let's discuss how we can help you build a winning construction team!
