How frequently do your construction projects require the help of skilled laborers? Do you have trouble locating trustworthy and competent candidates?
Even the most innovative builders may find it difficult to get top talent due to labor shortages and fierce competition.
Any construction company’s success depends on attracting and retaining qualified employees. Let’s take a closer look at a few key elements that can help you attract top talent and optimize your hiring procedures. Because of the nature of the work, construction managers frequently need flexible workers and rely significantly on project-based labor.
However, finding the best candidates with the required training and expertise might be challenging.
Construction Workforce Dependencies
General Contractors (GC)
They oversee the overall project execution and rely on subcontractors, vendors, and specialty contractors for labor. They manage construction crew scheduling, budgeting, quality assurance, and coordination between all involved stakeholders.
GC Employees
These include project managers, office managers, superintendents, architects, engineers, and other key project specialists working within a construction company. Their responsibilities vary depending on their position.
Subcontractors and Vendors
Subcontractors are specialized trades hired by General Contractors. They rely on both GC-provided labor and additional trade labor. Their job is to execute specific tasks, such as electrical work, plumbing, and carpentry, contributing to overall project milestones.
Specialty Contractors
These are trade-specific professionals (e.g., plumbers and electricians) who make up the majority of construction labor. They perform the majority of skilled labor, often handling more than half of project tasks while managing workforce efficiency and quality.
Vendor Workers
Vendor workers are external suppliers who provide equipment, additional labor, and material schedules in construction. They ensure the timely delivery of resources and materials critical to project continuity.
Government Workers
Regulatory bodies, such as government officers, are involved in inspections and compliance throughout the project phases. They conduct inspections, ensure compliance with regulations and codes, provide permits, and promote safety standards.
It is evident that the construction business greatly depends on a diversified and interdependent workforce, even though the roles and duties may differ. From maintaining workforce quality to carrying out specific duties and supervising overall execution, each role is essential to the project’s success.
With so many interconnected roles and moving elements, it is obvious that all parties will need to coordinate and communicate effectively. In light of this, let’s examine the main obstacles to efficient hiring in the construction industry and how we may get past them.
The Challenges in the Construction Workforce
The Aging Workforce
With a significant portion of the workforce getting close to retirement age, our industry is experiencing a significant demographic shift. The figures might have increased because of the industry’s severe labor shortage post-Covid-19 and market changes.
Retirement can result in the loss of valuable experience and expertise, even if older and more seasoned individuals bring priceless information and abilities to the table. This can become a huge headache for construction companies that must replace these voids with inexperienced workers.
Changes in Work Demand
When it comes to finding and keeping qualified workers, these are the most common problems the construction sector faces. When approached carefully, each has several viable solutions and has its own unique aspects.
Increased Rates of Turnover
Due to difficulties and setbacks in projects, seasonal variations in employment, and a competitive labor market, the construction sector frequently has substantial employee turnover.
The typical turnover rate in the construction industry is about 21.4%, which forces managers to fill positions in the middle of projects or deal with talent shortages that cause delays in completion.
According to some research, HR expenses for a brief employee onboarding process could reach $10,000, which would include costs such as:
- Recruiting and looking for a replacement for the lost employee
- Direct and indirect costs related to recruitment administrative work
- Previous performance verifications and additional training
- To avoid this, your company can take up a mentorship program that pairs experienced employees with onboarded ones, helping in passing on skills and knowledge.
Slow Adoption of Technology
Many builders continue to use manual processes, leading to misunderstandings and expensive mistakes.
This is also among the causes of the high turnover that was previously mentioned. If younger employees believe the organization lacks modern technology to support processes, they may find the position less interesting, even though they seem more tech-savvy.
For instance, relying solely on the occasional email and keeping all the financial data in spreadsheets can only cause problems.
Try using construction crew scheduling software like Pro Crew Schedule to solve this and expedite procedures such as:
- Closely monitoring of inventory and other assets
- Keeping documentation on the cloud
- Tracking budget and delegation of tasks
- Working on the productivity level of construction workers
Platform for Construction Project Management
Making sure that staff members are acquainted with the construction crew management software and giving them the right training are crucial. Both client communication and team productivity will increase as a result. Not to mention drawing in and keeping workers from younger generations!
Fluctuating Work Demand
Construction work’s project-based and seasonal nature frequently results in staff demand and workload changes. Because they might not have a reliable source of income or job stability, this might make it challenging to keep employees.
The spring and summer months frequently see a spike in activity for construction companies. The hiring teams are under more pressure during this time, which is referred to as the peak season, because of the increased demand for staff, supplies, and resources. However, there is a noticeable halt in construction throughout the winter. Use this time to train and prepare staff for the busy season ahead.
To address the problem, you might also look for temporary or part-time jobs for specific duties. Working together on workload with vendors and subcontractors might be beneficial.
Effective Recruitment Strategies for Construction Roles
Working without a well-developed strategy may be the least effective alternative due to construction recruitment’s numerous complexities and problems.
Let’s now help you create a recruitment strategy that will both retain current employees’ content and motivation and position you as somewhat of a catch for potential hires.
Programs for Employee Referrals
This is among the best methods for locating trustworthy employees.
This is how it works.
Programs for employee referrals encourage current staff members to recommend qualified applicants for available jobs inside the organization. Employees can recommend people to the organization if they know someone who they think would fit in well. A referral bonus is given to the employee if that candidate is hired.
For each successful recommendation, one of our partners used to give cash bonuses and additional paid time off, which attracted a constant stream of eligible applicants. This is a good policy to encourage people to collaborate and invite their friends to join the team.
Apprenticeships
Training through apprenticeships is another tactic to assist your team in gaining practical experience while collaborating with experts.
Why is this effective?
Apprenticeships are similar to internships but with more compensation and practical experience. This enables candidates to acquire the necessary abilities while making money and fostering relationships within the organization. Apprenticeships can also serve as a pathway to full-time employment in the future.
Collaborating with Women Specialists
Historically, men have controlled the construction industry, but this is beginning to change. In recent years, the number of women in construction has increased, and many of them are professionals in their fields.
In what ways might this help you?
You can increase the diversity of your team and access a larger talent pool by actively seeking out and collaborating with recruiting firms that assist women builders.
Research indicates that diverse teams are more creative and perform better, and women provide important perspectives and talents. You may create a more balanced and inclusive team by actively seeking out women.
Making Videos for Onboarding and Recruitment
Videos account for more than 70% of all mobile data usage.
What makes video significant?
Not only significant but also successful. Videos provide new workers a behind-the-scenes glimpse at your business. They will gain a greater understanding of your company’s culture, its values and objectives, and the atmosphere of the workplace as a result.
Key Takeaway
Finding skilled individuals shouldn’t be too difficult if you have the necessary tools and techniques to improve your HR efforts.
Incorporating construction crew management software can streamline your operations, making it easier to manage employee schedules, job allocations, and communication. By reducing the administrative load on your HR team and field managers, you create a more efficient and organized work environment, allowing you to focus on the strategic aspects of your business, such as employee retention and development.
Recall that a successful construction company depends on both attracting and keeping people. Hiring is only one aspect of the puzzle. To secure long-term success in the field, be abreast of current developments and make constant improvements to your hiring procedure.
