Industry-specific data: 21.4% avg turnover | $55,000 avg salary | 40% replacement cost
"In construction, benefits are your #1 recruiting tool after wages. The skilled trades shortage means top electricians, plumbers, and operators can choose their employer. Companies offering medical, dental, disability, and retirement consistently win the talent war. The PEO advantage is especially strong here — you get Fortune 500-level benefits at small business prices, plus workers' comp savings that often exceed the PEO cost entirely."
— Business Insurance Health Benefits Strategy Team
Medical coverage tops the list, followed by disability insurance, retirement plans (401k with match), and workers' compensation quality. Construction workers also highly value dental coverage, accident insurance, and life insurance given the physical demands of the job.
Construction firms typically see 25-55% savings on workers' compensation premiums through a PEO. The savings come from better classification codes, master policy rates, safety programs that reduce experience modification rates, and claims management expertise.
Absolutely. Even crews of 5-15 employees benefit significantly. Small construction companies often pay the highest per-employee rates for insurance. A PEO gives you access to large-group pricing, often saving $200-$400 per employee per month compared to small group market rates.
Construction companies typically see 250-500% ROI on benefits investments. The biggest drivers are reduced turnover in a tight labor market (saving $22,000+ per retained worker), workers' comp savings, and faster time-to-hire for skilled positions.
Industry data sourced from BLS JOLTS, KFF 2024, SHRM Human Capital Benchmarking, and industry association reports.
This calculator is educational. Consult with a licensed benefits advisor for plan-specific projections.
The ROI methodology applied here uses a multi-factor model that accounts for direct cost offsets (reduced turnover recruiting expenses, lower workers' compensation experience modification rates) and indirect benefits (productivity gains from reduced absenteeism, improved employee engagement scores). Industry-specific parameters for Construction are calibrated against Bureau of Labor Statistics JOLTS data and SHRM Human Capital Benchmarking reports.
Turnover cost multipliers reflect the total cost of separation, vacancy, and replacement — including training ramp-up periods that vary by role complexity. For Construction, we apply position-weighted averages that account for the mix of skilled and entry-level roles typical of the sector. Workers' compensation savings projections use NCCI class code data where available.
These estimates are conservative by design. Employers with existing high turnover rates or those in tight labor markets often realize ROI multiples 1.5-2x above the baseline projections shown. We recommend running this analysis alongside a benefits benchmarking study to identify the optimal investment level for your competitive market.
This analysis draws from the following primary data sources:
Methodology note: All projections use a composite rate approach with demographic adjustment factors. State-specific regulatory constraints are reflected in baseline rate assumptions. Results are directional estimates intended for planning purposes.