Your Best Technician Just Quit - Here's What It Actually Costs You
Key Highlights
- Employee replacement costs can range from 50% to 200% of annual salary, significantly impacting small contractors' profitability
- Younger workers prioritize recognition and feedback, making regular appreciation crucial for retention
- Most existing data, like timesheets and customer feedback, can be leveraged to identify and address retention risks without additional software
Your best tech just gave two weeks’ notice. You've got three callbacks scheduled for systems he installed, Mrs. Peterson's annual maintenance is coming up, and he's the only one who really knows your commercial accounts inside and out. You're already doing the math on posting the job, screening resumes, and trying to find someone half as good.
But here's what most contractors miss. The real cost isn't just the recruitment fees or the training time for whoever you hire next. According to SHRM, replacing an employee runs anywhere from 50% to 200% of their annual salary depending on their level. For a journeyman making $60,000, that's potentially $30,000 to $120,000 walking out your door. And those numbers don't even include what happens to your business while that position sits empty.
The construction industry saw 146,000 workers quit in August 2025 alone. Every one of those departures hit a contractor somewhere. The difference is that big companies with 50 trucks can absorb the hit. When you're running five trucks and one guy leaves, you just lost 20% of your service capacity overnight.
The solution is treating retention like the operational priority it is, using the data you already have to spot problems early, and giving your team the feedback they're asking for.
Why Your Best Young Techs Keep Leaving
Big companies absorb turnover as a cost of doing business. For small operators, one bad quarter can mean operational failure.
Here's what makes it worse. Most contractors over 50 don't see the problem coming because they were brought up in a different workplace culture than today's young workforce. Our consumer survey found that 43% of boomer leaders already feel engaged at work, and only 14% say they want more appreciation from management. When you're running your business the way you would have wanted to be managed 30 years ago, those blind spots are even harder to see.
In contrast, only 14% of Gen Z workers feel engaged, and 47% say they want more appreciation and feedback. Millennials are nearly identical at 15% feeling engaged and 43% wanting more appreciation. Younger techs have different experiences, expectations, and needs.
However, across all age groups, we found that 36% of workers desire regular appreciation and feedback (the number one engagement driver). Feedback and appreciation are valuable across the board. Organizations just need to recognize that different people need different amounts of it to stay engaged.
The data shows younger workers aren't primarily leaving for better pay. They're leaving because they don't feel their work is valued or recognized. Regular feedback and appreciation won't solve every retention problem, but ignoring this gap will keep costing you thousands per departure.
To be clear, disengagement goes deeper than lack of recognition. Techs also leave when they don't see growth opportunities, are stuck with outdated equipment that makes their jobs harder, or when scheduling chaos disrupts their personal lives. Retaining good people takes more than saying thank you more often. It takes addressing the day-to-day frustrations that compound until someone finally quits.
The reason feedback and appreciation matter so much is that they create the foundation for those harder conversations. When someone feels valued, they'll tell you what's broken. When they don't, they'll just leave.
Treating Retention Like Infrastructure, Not HR
Think about how you maintain your van fleet to prevent breakdowns or invest in quality tools to protect productivity. Employee engagement works the same way. It's infrastructure that protects your service capacity.
The difference is that most contractors can tell you exactly when their trucks are due for oil changes, but they can't tell you the last time they checked in with their second-year apprentice. Equipment gets scheduled maintenance. People start to feel ignored until they quit. Then you're scrambling to fill a position while your remaining techs work overtime and your customers wait longer for service.
Retention means systematic check-ins, recognition, and feedback loops that prevent departures before they happen. Start with weekly five-minute check-ins with each tech. Ask what would make their job easier and actually follow through on what you can fix. Recognize quality work publicly in team texts or morning huddles. Track who hasn't gotten feedback in 30 days. None of this requires new software or HR overhead.
Just treating retention as seriously as you treat equipment maintenance.
Focus Your Energy on the 77% You Can Still Reach
Not every departure is preventable. Our survey data shows that 14% of workers say nothing would make them more engaged, and 23% say nothing would make them stay longer. Some people are already checked out. You can't save everyone, and trying to will drain resources you need elsewhere.
The good news is that 77% of your workforce is still reachable. These are the techs who will respond to regular feedback, who want to feel valued, and who will stick around if you give them reasons to stay. This is where your time matters.
Early identification of disengagement means you can act before someone mentally checks out. Warning signs include:
● Decreased communication or participation in team discussions
● Showing up late or calling out more frequently
● Quality of work declining or cutting corners
● Withdrawing from mentoring apprentices or helping coworkers
● Not volunteering for overtime or additional projects they used to take
Attrition risk analytics can help identify these patterns before they become resignations. These tools track behavioral data to flag disengagement early, giving you time to intervene. For small contractors, that early warning system can be the difference between keeping a skilled tech and scrambling to replace them.
Most contractors already have the data they need sitting in their systems. Timesheet patterns, job completion rates, customer feedback scores, and schedule change requests all tell a story about employee engagement. You don't need fancy software to start paying attention to these trends. You just need to look at what the numbers are already telling you.
When someone who used to take every overtime shift suddenly stops, that's data. When callback rates increase for a specific tech, that's data. Predictive analytics just means using the information you already collect to spot problems before they walk out the door.
Keeping good people isn't just cheaper than constantly replacing them. It's how you build a business where people do their best work, and customers trust who's showing up at their door.
About the Author
Curtis Forbes
Curtis Forbes is the founder and CEO of MustardHub, the employee engagement platform built specifically for high-turnover industries like field services. He brings deep operational experience to solving retention challenges that cost field service companies tens of thousands per employee lost. A serial entrepreneur with a background in both technology startups and education, Curtis previously built and scaled Forbes Music Company and later expanded into a roll-up portfolio of education businesses before exiting in 2025.
