A report by the Bureau of Labor Statistics released June of 2015 stated that there are over 273,000 available construction jobs. This shows a significant increase over previous years. The construction industry is facing the challenge of not having enough qualified workers to fill the massive demand for employees. Finding and retaining employees will be a great obstacle.
Labor Shortage in Construction
Labor shortages in the construction industry are widespread, and it’s not getting any better. While businesses are trying to expand, it is increasingly difficult to find workers. According to AGC of America Hiring and Business Outlook for 2015
“More than 76 % of the firms that are hiring report having a hard time finding qualified craft workers to fill vacancies, while 62% say the same about professional positions such as project managers, supervisors and estimators.”
The construction workforce has fallen in the last 6-7 years because of the 2008 recession. Many who lost their job during the recession went back to school to join other professions and now that the economy is improving those old workers are not coming back. While the supply of qualified workers continues to narrow, business owners are faced with a hard question. How will they not only attract workers but also retain them?
Attracting & Retaining the Next Generation Workforce
First let us look at the young adults, the next generation that is about to hit the workforce. According to the Construction Industry Institute
“High school students are not attracted to careers as craftworkers in the construction industry. The inadequate pool of younger people presents a special challenge to the industry because construction is highly dependent on an influx of new entrants due to the high attrition among new workers, a shifting of experienced workers to other industries in their prime years, and early retirement of veteran craftworkers.”
The majority of High School students don’t consider a profession in construction as an option after graduation. In previous decades kids right out of high school flocked to construction jobs as a potential career.
With a high demand for skilled workers, there will be a constant battle to retain and attract skilled workers. Before 2008, there weren’t many options for employees who dealt with poor conditions. Now, if you are not treating your employees properly and with respect they can leave, will leave and will easily find another job. The Construction Industry Institute recommends
“Providing competitive wage and benefit packages, providing a safe workplace, enhancing permanent employment opportunities, and treating employees with respect.”
It is no longer enough just to have a job opening; now prospects want to have some sense of security, and they want to feel respected. That does not mean that you need to let your employees do whatever they want hoping that they don’t leave. It means that you treat them with respect, consideration, and you empower them to do their best work.
The construction industry is not the only industry in need of workers. So not only are we competing amongst industry competitors, but also other industries. If employees aren’t treated well, they won’t want to do physical labor in the hot sun when they can be treated better in an office with AC.
What’s the solution to the labor shortage?
Business owners need to start by changing the culture in their companies by creating a culture of consideration, opportunity, security, understanding, empowerment, and respect. Every single individual craves the feeling of approval, acceptance, and appreciation. Creating this kind of culture will breed employees who are devoted to you and your business.
“Our employees are giving us the best years of their lives, the least we can do is make it an enjoyable place to work.” -Rob Campbell, President of Wheeler Machinery
Culture will not just create a great environment to work in; it will also increase productivity AND profitability. Happy employees will work harder, faster and the competition won’t easily steal them. Employees that are treated well take value and ownership in their work, they will also pass on positive connotations about a career in construction. The way employees are being treated right now has to lead many craftworkers to say that they would not encourage their children to go into construction as a career. A career in construction should be appealing to future generations who like to work with their hands. If this outlook does not change, the gap will only continue to grow.
What will you do in your company to address this challenge? Will you overcome this obstacle?
