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Employee retention is crucial in construction, where turnover can delay projects, increase training costs, and reduce efficiency. Statistics show that turnover in construction is approximately 21.4%, and with the industry facing an estimated labor shortage of 430,000 workers as of 2023, retaining skilled workers is vital. Here, we’ll look at proven strategies, backed by industry data and case studies, that small to medium-sized construction companies can use to reduce turnover and improve employee satisfaction.

1. Understand the root causes of turnover

In construction, common reasons for turnover include physically demanding work, extended hours, safety risks, and limited paths for advancement. According to the US Chamber of Commerce, around 89% of construction firms face labor shortages, which often places extra pressure on current workers, increasing turnover.

Best practice: Conduct an annual formal survey of employees, formally or informally, to gauge employee satisfaction and take proactive steps to reduce common causes of turnover. 

Example in action: A construction company in New England makes a point to formally recognize employees who are helping make up for labor shortages to help retain those employees during tough times. Recognition can be financial, additional benefits like comp time, or non-monetary rewards like gifts or prizes.

2. Offer competitive wages and benefits

Fact: A study from the National Bureau of Economic Research found that construction firms offering a 10% increase in wages saw turnover rates drop by 15-20%. Companies that implement regular wage reviews to stay competitive report increased loyalty among workers.

Best practice: Benefits like health and wellness support also improve retention. Randstad reports that 66% of workers across industries prioritize benefits like paid sick leave and health coverage over salary alone. In construction, this can be achieved through modest investments in health incentives or wellness programs.

Example in action: A mid-sized construction company in Texas introduced a quarterly safety bonus program, rewarding employees who demonstrated excellent safety practices and accident-free performance. Within the first year, the company observed a 25% reduction in turnover, as workers felt more recognized and motivated by these benefits. In addition, incident rates decreased, reducing project delays and insurance costs. The extra wage cost more than paid for itself in time and resources spent recruiting, hiring, and training new employees.

3. Prioritize training and career development

Fact: According to the Construction Industry Institute, firms with structured onboarding and training programs experience up to 30% lower turnover. Providing safety training and mentoring programs for new hires not only reduces early turnover but builds loyalty as workers feel more supported and prepared for their roles.

Best practice: Construction firms that establish career ladders see higher retention rates. Research from the Center for Construction Research and Training (CPWR) indicates that companies offering promotion opportunities have a 24% higher retention rate than those without.

Example in action: A company in California created a “Field Leader Program,” where entry-level workers are eligible for additional training to become team leads within two years. Employees in the program reported higher job satisfaction, and the company saw a 30% improvement in their retention rate. This approach not only retained employees but allowed the company to promote from within, reducing recruiting and training costs.

4. Foster a supportive work environment

Fact: The AGC reports that companies emphasizing a positive, respectful team culture experience a 15% improvement in retention. Employees who feel respected and included are more likely to remain, as a supportive environment can offset demanding job conditions.

Best practice: Companies that regularly check in with employees—whether through surveys, performance reviews, or informal feedback sessions—experience better engagement. According to a Gallup study, companies that implement regular feedback sessions reduce turnover by up to 14%.

5. Recognize and reward hard work

Fact: The Society for Human Resource Management (SHRM) reports that companies with structured recognition programs see a 31% decrease in voluntary turnover. For construction firms, rewards can include simple recognition tactics, such as monthly shout-outs for high-performing workers or project completion bonuses.

Best practice: Recognizing anniversaries or successful project completions can boost morale. Research shows that employees who feel valued are up to 28% more likely to stay with a company.

Example in action: A company implemented a “Milestone Recognition” program that celebrates project completions with team lunches and small bonuses. As a result, they saw employee morale and retention rates improve by 20% over two years. Employees cited feeling “seen” and appreciated as a primary factor in their decision to stay with the company.

Read more best practices for workforce well-being in the construction industry. 

Investing in retention strategies tailored to the construction industry benefits both the workforce and the business. Companies that prioritize competitive wages, career development, and employee recognition can reduce turnover, cut costs, and build a committed team ready to drive projects to success. At BerryDunn, we take a comprehensive approach to our workforce and well-being work, considering how business needs, organizational capacity, and the employee experience work together to drive your business forward. Learn more about our team and services. 

On the latest edition of the In The Know Podcast, BerryDunn’s David Stone and Susan Weber break down the latest in banking—from financial trends to policy changes that could shake things up. 

Big picture: Banking in 2025 

BerryDunn just released its quarterly banking profile for Q4 2024. The headlines? A 2.5% drop in net income year-over-year, thanks to rising non-interest expenses, provision costs, and losses on security sales. Banks are feeling the squeeze, with the efficiency ratio ticking up to 65%. 

On the accounting front, things have been pretty quiet. But public business entities need to gear up for the new income tax disclosure standard—it’s happening this year. Non-public entities have an extra year to sort things out. 

Regulatory shakeups and what it means for banks 

With the new administration settling in, agencies are reassessing rules—some are getting rescinded, while others are refocusing on existing frameworks. 

Here’s what’s changing – so far: 

• The CRA final rule may be rolled back—regulators say the previous framework works just fine. 
• The OCC is rolling out a fintech innovation office to encourage industry collaboration. 
• The FDIC is easing restrictions on crypto activity—banks won’t need pre-approval anymore, just solid risk management. 

And in a move that’s raising some eyebrows, the SEC won’t be defending its own climate disclosure rules. Released last year, these rules were immediately challenged in court. The SEC’s recent decision not to defend them means enforcement looks unlikely. 

Less regulation does not mean less risk 

Susan raises an important point: Just because regulators are stepping back does not mean financial risks magically disappear. Banks still need solid risk management strategies. The expectation is that institutions will take responsibility for integrating these risks into their existing frameworks rather than relying on specialized regulations. 

Evolve 2025: A must-attend event for finance professionals 

Exciting news—BerryDunn’s annual Evolve Conference for financial institutions is happening May 28-29 at Wentworth by the Sea. Expect deep dives into: 

• Economic trends and balance sheet strategies 
• Regulatory insights straight from Washington 
• Accounting and tax updates 
• Leadership strategies 
• Compensation and 401(k) discussions 

It’s shaping up to be a packed event, and if you haven’t signed up yet, there's still time to register!

About BerryDunn 

BerryDunn’s Financial Services Practice Group serves the complex auditing, accounting, tax, consulting, and information technology needs of financial institutions, broker-dealers, and other financial service providers. With our dedication to knowledge sharing, we offer our clients best practices based on the depth and breadth of our industry knowledge. Learn more about our team and services.  

Anyone involved in international operations, finance, or compliance should pay attention to transfer pricing—here’s why. 

This article is the first in an article series to help businesses navigate trade strategies amidst tariff changes. Next up: The strategic advantage of foreign trade zones.  

In today's dynamic trade landscape, businesses engaged in international commerce face growing challenges. Recent shifts in US trade policy and evolving global tariff structures have added layers of complexity that companies must navigate carefully. As new regulations take shape and tariff frameworks continue to change, importers must assess their compliance strategies with heightened scrutiny. One of the most critical components of this evaluation is transfer pricing. 

What is transfer pricing? 

Transfer pricing refers to the pricing of goods, services, and intellectual property exchanged between related entities within a multinational organization. These intercompany transactions must adhere to the arm's length principle, meaning they should be priced as if the parties were unrelated. This ensures that profits are appropriately allocated among different jurisdictions and that regulatory compliance is maintained. 

While transfer pricing has traditionally been a tax-driven consideration, its intersection with customs compliance has made it even more significant for companies that import goods into the US. Understanding how transfer pricing interacts with customs valuation is essential to avoiding penalties and managing costs effectively. 

Aligning transfer pricing policies with CBP regulations 

For importers, aligning transfer pricing policies with US Customs and Border Protection (CBP) regulations is a critical step in mitigating risk. Discrepancies between tax transfer pricing and customs valuation can lead to significant consequences, including: 

• Potential penalties for misalignment between declared customs values and tax-related intercompany prices. 
• Increased duties due to incorrect customs valuation, resulting in higher operational costs. 
• Compliance risks, as evolving tariff structures demand greater accuracy in documentation and reporting. 

With trade policies fluctuating, businesses must adopt proactive strategies to help ensure their transfer pricing aligns seamlessly with customs requirements. Effective documentation and transparency can help prevent costly disputes with customs authorities while ensuring that companies can take advantage of duty-saving opportunities. 

Strategic considerations for businesses 

Managing transfer pricing effectively requires a well-defined approach that integrates both tax and customs compliance into a cohesive framework. Businesses should prioritize the following: 

• Robust documentation: Companies must maintain detailed records supporting their transfer pricing methodologies. Documentation should justify intercompany pricing decisions and demonstrate compliance with both tax and customs regulations. 
• Periodic review and adjustments: Given the volatility in global tariffs, transfer pricing policies should be reviewed regularly to ensure alignment with current trade conditions. 
• Risk mitigation strategies: Businesses should identify potential risks related to transfer pricing and customs valuation. Developing strategies that minimize exposure to financial and regulatory penalties is essential. 
• Customs valuation optimization: Many businesses overlook opportunities to optimize customs valuation. By carefully structuring intercompany transactions, organizations can identify potential duty savings while staying compliant. 

How BerryDunn can help  

Navigating transfer pricing complexities requires specialized expertise. At BerryDunn, our professionals work closely with clients to develop and document strategic transfer pricing policies that satisfy both tax and customs requirements. Our approach focuses on risk reduction, cost management, and identifying opportunities for operational efficiencies. 

We help businesses: 

• Ensure transfer pricing policies adhere to both IRS tax regulations and CBP customs valuation rules. 
• Reduce risk exposure by strengthening documentation and compliance frameworks. 
• Identify duty-saving opportunities through strategic pricing alignment. 

 With our team’s extensive experience, we guide organizations through shifting trade policies with clarity and precision. 

Let’s talk strategy 

The evolving trade environment demands proactive planning. Businesses cannot afford to be caught off guard by tariff changes and compliance challenges. By taking a strategic approach to transfer pricing, companies can turn complexity into opportunity. 

Contact our team today to discuss how we can support your transfer pricing strategy and help you stay compliant while maximizing efficiency. 

Digital accessibility is more than a legal requirement—it’s about ensuring everyone can access public services, regardless of ability. As government agencies increasingly move services online, compliance with accessibility standards like the ADA’s Web Content Accessibility Guidelines (WCAG), EAA regulations, and Section 508 is essential. 

It may seem like a complex process, but the benefits are well worth the effort. An accessible website means broader reach, better usability, and fewer barriers for the people who rely on your services. It also reduces legal risks and supports civic engagement, helping governments fulfill their mission to serve all constituents. 

With new ADA standards coming into effect, public agencies must take steps now to meet compliance deadlines. Below, you’ll find the key dates and a collection of useful resources to guide your efforts. 

Key compliance deadlines for public entities 

Government agencies must meet the following accessibility deadlines: 

• State and local governments: April 24, 2026 
• Public schools and universities: April 24, 2027 
• Municipal services and online offerings: April 24, 2027 

Helpful resources to improve accessibility 

To assist public entities in meeting compliance requirements, here are some key resources: 

• Start here if you're new to accessibility: Accessibility Fundamentals Overview | W3C 
• Review the official web rule: Federal Register: Nondiscrimination on the Basis of Disability 
• Explore the financial and regulatory impact: Regulatory Impact Analysis | ADA 
• Find disability statistics for your state: Disability and Health Data System | CDC 
• Learn about accessibility certifications: International Association of Accessibility Professionals (IAAP) 

Meeting these requirements will take planning and coordination, but the result is worth it. The goal is simple: an online space where every citizen can access information, complete transactions, and participate fully—without limitations. BerryDunn's government assurance team can help you at every step of the process. Learn more about our services and team. 

How does your nursing facility’s financial health stack up against industry peers? Benchmarking can provide you with clear, relevant comparisons that are essential to measuring and optimizing your facility’s performance. Cost data and key operating indicators from the Maine Medicaid cost reporting database provide an in-depth look at key trends for both nursing facilities and nursing facility-based residential care facilities (RCF). 

Occupancy 

For both nursing facilities and nursing facility-based RCFs, occupancy was about 90% in 2019 and through early 2020 (pre-COVID-19). Once the pandemic hit, occupancy began to decline, then dropped significantly in 2021 at the height of the crisis. By 2022, occupancy trends started to rebound, bringing nursing facilities up to nearly 82% occupancy and nursing facility-based RCFs up to about 84%. The regional average in 2023 was about 81% occupancy versus a national average of 76%. This trend continued through 2024.  

Medicaid reimbursement 

Data for 2012 – 2023, when nursing labor and occupancy significantly drove per resident day costs up, demonstrates a Medicaid shortfall for Maine nursing facilities. In 2023, the Medicaid shortfall reached $35 million, but would have nearly doubled to $65 million without supplemental payments released by Maine DHHS to help curb the impact of exponentially rising costs.  

MaineCare revenue and cost 

From 2014 – 2022, MaineCare experienced a steady rise in cost per patient day (PPD). In 2023, the allowable cost PPD hit $370 — $213 of which was direct care cost, and of that $84 was related to contract nursing. Revenue PPD was just $330. These costs are after supplemental payments and any ECA (Extraordinary Circumstances Allowance) funds were applied. The broadening gap between reimbursement rates and cost for nursing facilities is clear. 

Payer mix 

From 2019 – 2023, there was a significant shift in the payer mix for nursing facilities, with an increase in the use of Medicare Advantage and a decrease in Medicaid and Medicare A payers. This is indicative of the growing diversity in payer sources and underscores the importance of facilities understanding and adapting to the intricacies of Medicare Advantage plans, which include pre- and post-payment reviews.  

Nationally, Medicare Advantage has grown from 27% utilization by Medicare beneficiaries in 2012 to 54% in 2024, and Maine is one of seven states with more than 60% of eligible Medicare beneficiaries enrolled in the Medicare Advantage plan.  

Labor trends 

The use of contract labor has been a significant source of frustration for nursing facilities, especially in Maine. Payroll-Based Journal (PBJ) reporting for Maine for Q2 2024 reflects an alarming increase in the use of administrative nurses, such as nursing directors and MDS coordinators, and highlights the need to improve retention for leadership positions. Q4 2020 through Q4 2024 showed an increase in contract labor utilization for LPNs — a cost-saving measure for providing licensed nursing care.  

Data from Q4 2023 to Q2 2024 on the use of contract staff in Maine by county points to labor challenges in rural counties, while it shows facilities in more urban counties are better able to maintain staffing requirements with in-house staff. Some counties relied so heavily on contract labor that it accounted for approximately 45% of all staffed hours.  

The cost of contract labor for Maine facilities skyrocketed from its 2020 cost PPD of $25 — nearly tripling to $70 in 2023. The driving factor behind this was the increased demand for contract labor services. PBJ data for 2022 – 2024 shows a more positive trend for staff turnover despite continued challenges with contract labor. Registered nurse turnover decreased by 10% and overall staff turnover levelled off.  

Other trends 

The number of nursing facilities by fiscal year remained stable for 2020 and 2021 but began to decline steadily from 2022 – 2024. This trend can be attributed to the deepening gap between costs — both for direct care and contract labor — and reimbursement, forcing some facilities to close or convert to residential care facilities. In 2023, there were approximately 86 nursing facilities with a total of roughly 7,696 beds in Maine. 

2025 rate reform is designed to address the financial challenges of nursing facilities.  

• The transition to the pricing methodology has eliminated the cost settlement for direct and routine costs, enabling facilities to plan expenses and manage costs on known rates for the year.  
• Rate reform also includes value-based purchasing adjustments, which allow facilities to earn back a portion of their rate reduction through quality improvements or achievements.  
• The guiderails allow for potential rate adjustments of up to a 10% increase or decrease compared to prior rates, creating flexibility in the management of reimbursement rates.  

For nursing facilities seeking to improve financial operations, BerryDunn’s industry experts can assist with benchmarking by analyzing data on occupancy, Medicaid reimbursement, and contract labor to guide you to better understand how your cost and revenue drivers can lead to outcomes. Learn how to access our self-service Senior Living Benchmarking Portal for a carefully curated, comprehensive set of financial benchmarking reports. To learn more, visit berrydunn.com/stay-current.