Addressing the Labor Shortage in the Construction Industry | CDP Inc.

Original article on the BuildOps blog.

The construction industry faces a severe labor shortage, impacting everything from project timelines to profitability. Understanding how to navigate this complex landscape can make a substantial difference for companies striving to thrive.

We gathered four leaders in the industry to help break down key elements of this pressing concern, offering valuable insights into:

Recruitment
Onboarding
Retention
Attracting Young Talent

Watch this video below and scroll down to read Buildops' full breakdown of the conversation.

Recruitment: Finding the Right Talent

One of the most critical aspects of addressing the labor shortage is effective recruitment. Many companies struggle to find qualified individuals interested in trade careers. One solution is leveraging modern technology and platforms to reach potential employees where they are most active—online.

Nicole Bass, president of Service Professionals, emphasizes the importance of appealing job descriptions. Instead of technical jargon, focus on the exciting aspects of the job and the value proposition of joining your company. Highlighting career growth, educational opportunities, and the impact of the work can attract more candidates. Additionally, using specialized job boards and applicant tracking systems (ATS) can streamline the recruitment process and ensure you’re reaching the right audience.

Onboarding: Creating a Positive First Impression

Once you have attracted potential employees, the next step is onboarding. A smooth and engaging onboarding process is crucial for retaining new hires. Brent Sheik from Arcoro highlights the importance of a flexible and user-friendly onboarding system. This includes automating paperwork, providing a personalized welcome, and ensuring new employees understand the company’s culture and values.

Tim Mongeau from ABC adds that onboarding should also focus on the long-term development of employees. Ensuring they are aware of all the benefits and opportunities available to them can help create a positive first impression and foster loyalty.

Retention: Keeping Your Workforce Engaged

Retention is a multifaceted challenge. Companies must offer more than just competitive pay and benefits. Mongeau stresses the importance of coaching, mentoring, and empowerment. Providing ongoing training and career development opportunities shows employees that their growth is a priority. Additionally, creating a supportive and engaging work environment can significantly reduce turnover.

Bass points out that leadership development is also crucial. Many skilled tradespeople are promoted to managerial positions without proper training, which can lead to dissatisfaction and attrition. Investing in leadership training ensures that new managers are equipped to handle their roles effectively.

Attracting Young Talent: Building the Future Workforce

The future of the construction industry depends on attracting young talent. Today’s younger generation is tech-savvy and values meaningful work. Glen West, BuildOps Director of Growth, emphasizes the importance of integrating advanced technology into daily operations. Providing modern tools and systems not only enhances efficiency but also appeals to younger workers who expect a tech-friendly workplace.

Additionally, changing the narrative around trade careers is essential. Many young people are unaware of the lucrative and stable opportunities in the trades. Mongeau and Bass both advocate for increased outreach and education, targeting parents, guidance counselors, and teachers to shift perceptions and highlight the benefits of a career in construction.

Conclusion

Addressing the labor shortage in the construction industry requires a comprehensive approach. By focusing on smart hiring practices, creating a positive onboarding experience, investing in retention strategies, and actively attracting young talent, companies can build a robust and skilled workforce. These efforts not only help mitigate the current labor shortage but also set the foundation for long-term success in the industry.

For a deeper dive into these strategies and more detailed insights from industry experts, be sure to watch our full webinar. You’ll gain practical advice and actionable steps to enhance your company’s approach to labor management in the construction sector.