What turnover costs in the trades
When an experienced tradesperson leaves, the cost reaches beyond recruiting. Overtime, subcontractor coverage, project delays, and training can all add to the expense. Gallup estimates that replacing an employee can cost between half and twice their annual pay. Applied to May 2025 BLS median wages of approximately $61,000 to $64,000 for electricians, plumbers, and HVAC technicians, that produces an illustrative range of roughly $30,000 to $125,000 per departure. The actual cost depends on the trade, the project, and the time needed to recruit and train a replacement.
About this note
Published Reviewed
For construction and specialty trade contractors planning for employee turnover, with estimates based on BLS wage data.
At a glance
0.5 to 2 times annual pay. Gallup's cross-industry estimate puts replacement cost in that range. Applied to May 2025 median wages of approximately $61,000 to $64,000 for electricians, plumbers, and HVAC technicians, the range is roughly $30,000 to $125,000 per departure.
Research includes Gallup's 2019 and 2024 studies on employee turnover, BLS wage data, and construction workforce estimates.
What a vacant position costs a project
A vacant field position can mean paying overtime, bringing in subcontractors, or extending the schedule while you recruit a qualified replacement. The full cost includes recruiting, onboarding, overtime premiums, subcontractor expenses, lost production, and supervisor training time.
The hiring timeline matters, especially for licensed and specialized trades. Associated Builders and Contractors estimates that construction needs 349,000 net new workers in 2026. More than one in five construction workers is over 55.
Licensing and supervision requirements can make certain vacancies harder to cover. Certain electrical, plumbing, and HVAC work requires specific credentials or supervision, depending on the jurisdiction and task. When a qualified employee leaves, the contractor may need to change assignments, arrange supervision, or delay work until another qualified person is available. Account for reassigned work, additional supervision, and project delays in the estimate.
Construction and Trades Hiring Kit, $59
Hiring tools for foremen, journeymen, apprentices, and technicians. Includes job descriptions, screening, structured interviews, paid working interviews, and candidate scoring.
Start with annual pay
Gallup's cross-industry benchmark puts replacement costs at half to twice annual pay. Start with that range, then calculate the costs for the specific position. According to May 2025 BLS wage data, median annual wages were approximately $63,000 for electricians, $64,000 for plumbers, and $61,000 for HVAC technicians. Applying the Gallup range produces an illustrative replacement cost of roughly $30,000 to $125,000 per departure. Your actual cost depends on the position, hiring time, training, and project delays.
Construction employees have a median tenure of approximately four years, close to the private-sector figure. Construction also has relatively high separation rates. Specialized positions can take longer to fill because of training, licensing, and experience requirements.
- Helpers and laborers Hiring and training costs
- Include advertising, screening, onboarding, safety training, and the foreman's time spent developing new employees. Include the time it takes for a new employee to become productive on the job.
- Licensed journeymen and technicians Licensing and experience
- Experienced tradespeople can take longer to replace, especially when the job requires licensing or specialized skills. Contractors may also need to rebuild project knowledge and customer relationships.
- Foremen and crew leads Crew and project continuity
- A foreman coordinates staffing, safety, training, quality, and the daily schedule. Losing a strong foreman can disrupt the entire crew, from daily assignments to project deadlines.
Calculate the cost of one departure
Gallup's benchmark gives you a starting point. Your own project costs will give you a more useful estimate. Break one departure into four parts.
Recruiting and hiring: Count job advertising, recruiting fees, screening, interviews, and onboarding expenses.
Vacancy coverage: Add overtime premiums, subcontractor costs, and other expenses needed to cover the work while the position is open.
Training and supervision: Count the time supervisors and coworkers spend training the replacement, along with the cost of bringing the new employee to full productivity.
Lost or delayed production: Estimate the financial effect of work that slows down or moves to a later date.
Use the fully loaded hourly labor cost when valuing employee time. For a journeyman earning around $30 an hour, several weeks of overtime coverage and training can create a substantial expense.
Multiply your average replacement cost by annual departures to estimate the total. Use the total to identify where better hiring, onboarding, scheduling, or supervision could reduce costs.
Where to focus on retention
How a crew is led can influence whether employees stay. In Gallup's 2024 study, 42% of voluntary leavers said their manager or employer could have done something to prevent their departure. An earlier Gallup study in 2019 reported 52%. The research covers multiple industries. For contractors, the findings point to the value of regular career conversations, thoughtful scheduling, and effective supervision. Review wages in the local trade market, advancement opportunities, how early employees receive schedules, and the conversations foremen have about work and career plans. Start with the changes that would make the biggest difference to your crews.
A well-run apprenticeship program helps contractors develop skilled employees from within. Mentoring, clear wage progression, hands-on training, and a path toward journeyman responsibilities give employees reasons to grow with the company. When apprentices stay and advance, contractors build experienced crews and spend less replacing people.
Track turnover as an operating cost
Construction staffing changes throughout the year. Projects finish, crews move between assignments, seasonal demand shifts, and competing contractors recruit for new work. Tracking departures by crew and season helps you plan staffing for upcoming projects.
Three measures are especially useful:
Time to fill by trade: How long it takes to hire a qualified replacement.
Turnover by crew: Where departures are concentrated and which patterns deserve a closer look.
First-year apprentice retention: How many new apprentices stay through their first year.
Look at these measures alongside recruiting costs, overtime, and upcoming project staffing needs. Use those patterns to start recruiting earlier and discuss new assignments before a project ends.
Research and sources
5 research sources. Reviewed 13 October 2026.
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025. Median annual wage estimates used in this note are approximately $63,000 for electricians, $64,000 for plumbers, and $61,000 for HVAC technicians. These wages provide the base for the illustrative replacement-cost range. bls.gov/oes. .
- U.S. Bureau of Labor Statistics, Employee Tenure and Job Openings and Labor Turnover Survey. Construction tenure and turnover benchmarks, including approximately four years of median tenure and the sector's quit and separation rates. bls.gov/jlt. .
- Associated Builders and Contractors, 2026 Workforce Shortage Analysis. ABC estimates that construction needs 349,000 net new workers in 2026. The analysis also reports that more than one in five construction workers is over 55. abc.org. .
- Gallup, This Fixable Problem Costs U.S. Businesses $1 Trillion. Published 13 March 2019. Provides the cross-industry replacement-cost benchmark of half to twice annual salary. The study also reports that 52% of voluntary leavers believed their departure could have been prevented and discusses career conversations as a retention practice. gallup.com/workplace/247391. .
- Gallup, 42% of Employee Turnover Is Preventable but Often Ignored. Published 9 July 2024. Gallup found that 42% of voluntary leavers believed their manager or organization could have acted to prevent their departure. Another 45% reported that neither a manager nor another leader had discussed their job satisfaction, performance, or future with them during the preceding three months. The study surveyed 717 voluntary leavers from 8 to 20 November 2023. gallup.com/workplace/646538. .
Common questions
What is the turnover rate in construction and the trades?
Construction employees have a median tenure of approximately four years, close to the private-sector figure. ABC estimates that construction needs 349,000 net new workers in 2026, and more than one in five construction workers is over 55. Construction also has higher total separation rates than private industry overall. Compare departures with hiring timelines to see where upcoming projects may face staffing gaps.
How much does it cost to replace a tradesperson?
Gallup's cross-industry benchmark is half to twice annual pay. Applied to May 2025 BLS median wages of approximately $61,000 to $64,000 for electricians, plumbers, and HVAC technicians, that suggests an illustrative replacement-cost range of roughly $30,000 to $125,000. For your own estimate, add recruiting, vacancy coverage, onboarding, training, and lost production.
What affects how quickly a field worker can be replaced?
Qualified tradespeople can take time to recruit, especially when a position requires specialized experience or licensing. ABC estimates that construction needs 349,000 net new workers in 2026. Depending on the trade and jurisdiction, certain work also requires licensed employees or specific supervision arrangements. Plan for these requirements when estimating how long a vacancy could affect a project.
How can I improve crew retention?
Start with competitive pay, predictable schedules, good onboarding, and regular conversations between foremen and crew members. Show apprentices how they can advance toward journeyman and leadership roles. Review turnover patterns by crew and trade, and discuss upcoming assignments before projects end. These practices help retain experienced employees and give apprentices a clear path to advance.
Tools for the next step
See how foremen influence safety, crew retention, and the daily decisions that keep projects moving.
FreeHiring tools for foremen, journeymen, apprentices, and technicians. Includes job descriptions, screening, structured interviews, paid working interviews, and candidate scoring.
$59Plan a new field employee's first 90 days, including first-day preparation, training, vehicle records, tool assignments, and PPE documentation.
$69Keep employee licenses, certifications, cards, and renewal dates organized, with alerts to help plan assignments.
$49Enter a field wage and add payroll taxes, workers compensation, benefits, tools, and vehicle costs to estimate the full hourly labor cost.
FreeEstimate annual crew absence costs, including the absent worker's daily pay and the separate cost of other crew members waiting for work.
Free
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