The UK construction industry faces an unprecedented challenge: an extra 217,000 workers will be needed by 2025 to meet the demand for construction work. Yet talent retention remains one of the most pressing issues for construction companies across Britain. As specialist construction recruitment consultants, we’ve witnessed first hand how returning to fundamental retention strategies can transform workforce stability and project delivery.
The Current State of Construction Talent Retention in the UK
The construction skills shortage has reached critical levels in 2025. Over 35% of construction workers aged over 50 are approaching retirement, whilst 69% of adults would not consider a construction career. This perfect storm of demographic change and perception challenges means that retaining existing talent has never been more crucial.
Construction companies that fail to prioritise retention face significant consequences. Research reveals that 75% of construction professionals feel that worker fatigue is currently a major issue due to the lack of talent, creating a vicious cycle where overworked employees become more likely to leave for competitors offering better work-life balance.
2025 Salary Trends in the Construction Industry
As of early 2025, the construction industry continues to adjust its compensation practices in response to ongoing economic factors, including inflation and labour market dynamics. Base salary increases for construction professionals are projected to average 5.2 percent in 2025, reflecting the sustained demand for skilled labour in the sector.
This trend aligns with broader industry observations. For instance, Workers in the construction sector are anticipating an average pay rise of 4.5% in 2025, up from 3.7% in 2023. This increase reflects the growing demand for skilled professionals in the industry and the need for employers to remain competitive in attracting and retaining top talent.
The construction industry, however, appears to be experiencing higher-than-average increases, underscoring the persistent demand for skilled professionals and ongoing economic pressures.
Regional Construction Salary Variations
Salary benchmarks vary significantly across different regions in the UK:
- London: Remains the highest-paying region, with Project Manager and Senior Project Managers earning £55,000 – £75,000
- East Midlands: Project Managers and Senior Project Managers can expect £40,000 – £65,000
- West Midlands: Project Managers and Senior Project Managers can expect £40,000 – £67,500
- North West: Salaries for Project Managers range from £45,000 – £67,500
- Yorkshire: Salaries for Project Managers range from £45,000 – £65,000
For a comprehensive breakdown of salary bandings across various roles and regions in the UK construction industry, click here for your free copy of our Salary Bandings Document.
Why Construction Companies Are Struggling to Keep Skilled Workers
The Perception Problem
The construction industry continues to battle outdated perceptions. Jobs within the sector are considered “dirty, stressful and unsafe”, despite significant advances in technology and safety standards. This perception not only affects new talent acquisition but also influences existing workers’ commitment to long-term careers within the industry.
Workforce Demographics and Physical Demands
The aging workforce presents unique challenges for construction employers. Being an industry that is very physically demanding, it’s likely that these older and more experienced workers will seek less strenuous roles or early retirement, taking decades of knowledge with them.
Regional Disparities
30% of UK construction firms are concentrated in London and the South East. Wales and the North East hold just 4% and 3% of construction jobs, respectively. This concentration creates intense competition for talent in certain regions whilst leaving skills gaps in others.
Essential Strategies for Construction Talent Retention and to Bridge the Construction Skills Gap
- Competitive Compensation and Benefits Packages
- Prioritising Health and Safety Excellence
- Creating Clear Career Progression Pathways
- Embracing Technology and Innovation
- Building Strong Company Culture
The Role of Specialist Construction Recruitment Agencies
Working with experienced construction recruitment consultants can significantly improve retention outcomes. Specialist agencies like Atkins Search Recruitment understand the unique challenges facing the industry and can help companies:
- Identify potential retention risks before they become departures
- Develop targeted retention strategies for different worker demographics
- Source replacement talent quickly when retention efforts aren’t successful
- Benchmark compensation packages against market rates
Construction Apprenticeships: Building Tomorrow’s Workforce Today
The 2024 Open University Business Barometer highlights how many employers are turning to apprenticeships to bridge their skill gap. However, the same report found concerning gaps in retention planning for apprentices.
Successful apprenticeship programmes require:
- Structured mentoring throughout the programme
- Clear employment pathways upon completion
- Competitive apprentice wages that reflect value
- Regular feedback and development reviews
- Long-term Benefits of Improved Talent Retention
Invest in Construction Recruitment Agencies
Recruiting skilled talent is costly, but losing it is even more expensive. Every time a trained team member walks away, your business absorbs the loss in productivity, institutional knowledge, and often, significant retraining and hiring expenses.
In 2025, workforce retention has become a core business imperative. Competitive compensation is essential, but it’s only one piece of a broader value proposition. Employees stay when their work environment feels sustainable, systems are intuitive, and their time is respected.
That requires building flexibility into your operations. Features like self-scheduling, simplified shift swaps, and clear PTO policies reflect a company that understands its workforce’s needs. The same applies to wellness benefits such as mental health resources, fitness reimbursements, and ergonomic improvements are no longer perks; they’re table stakes. Equally critical is long-term growth. Employees who see a path forward are far more likely to stay engaged.
Employee retention is the result of deliberate structure, ongoing investment, and operational transparency. Organisations that prioritise workforce stability are better equipped to retain top talent, execute efficiently, and lead in the construction market.
This is where Atkins Search adds real value. We are a specialist recruitment agency that tap into active and passive talent pipelines, navigate complex compliance requirements, and rigorously pre-screen candidates for both technical capabilities and cultural fit. We will provide employers with a range of benefits, including access to critical skills, engaging with passive talent, enhancing employer branding, possessing industry knowledge, and providing more data points for informed decision making, which in turn will increase employee retention.
Companies that successfully retain skilled worker’s experience:
- Reduced recruitment costs: Replacing skilled construction workers can cost up to 50% of their annual salary
- Enhanced project delivery: Stable teams develop better working relationships and efficiency
- Improved safety records: Experienced workers make fewer mistakes and mentor others effectively
- Stronger client relationships: Consistent project teams build trust with clients
- Better company reputation: Word-of-mouth recommendations from satisfied employees attract top talent
The Future of Construction Recruitment
The construction industry’s talent challenges won’t disappear overnight, but companies that return to retention basics whilst embracing innovation will thrive. At a basic level, the skills shortage will prevent the UK construction sector from being able to deliver critical infrastructure projects and meet ambitious housing targets unless immediate action is taken.
Success requires a holistic approach that addresses compensation, career development, safety, and company culture simultaneously. Companies that view retention as an investment rather than a cost will build competitive advantages that extend far beyond their workforce.
Partner with Atkins Search Recruitment
At Atkins Search Recruitment, we understand that successful talent retention begins with finding the right people in the first place. Our specialist construction recruitment consultants work with clients across the UK to develop comprehensive talent strategies that encompass both acquisition and retention.
Whether you’re struggling with high turnover rates, need to benchmark your retention strategies, or want to build a more stable workforce, our team has the expertise to help. Contact us today to discuss how we can support your construction talent retention goals.
Ready to transform your construction talent retention strategy? Get in touch with our specialist construction recruitment consultants to discover how we can help you build a more stable, skilled workforce that delivers exceptional results for your clients.