The improving economy is a sign in the construction industry for contractors to grow their worker pool and to grow their business. In the near future, significant growth is expected to be seen in retail, warehouse, lodging and medical projects, as well as federal construction projects such marine building. The problem remains the same however, the construction industry need to start hiring and keeping qualified workers for the jobs. As the country moves out of the recession, contractors are finding that the greatest challenge facing the construction industry.
There are an over abundance of jobs available, but where are the prospective hires? The construction industry has started to grow rapidly over the past two to three years. In June 2015, the Bureau of Labor Statistics, Current Employment Statistics survey found that there was more than 273,000 jobs added to the construction industry in just six months. In the years before that construction companies had to be cautious of expanding because of the possibility of lack of work, however with the industry expanding the way it is, companies are now confronted with the task of finding qualified talent.
When the industry was in the down-swing, many workers left the profession, seeking jobs outside of the construction world. Once business picked up again, these workers found themselves satisfied with their new lines of work and had no intention on returning to the construction industry. The other workers that are leaving the construction industry in droves are the baby boomers. This large group of workers are reaching retirement age and leaving the industry, taking decades of work experience with them.
The Construction Hiring and Business Outlook Report from the AGC of America stated that not only are construction companies having a difficult time filling the field worker positions, more than 50 percent are having a difficult time filling positions such as estimators, supervisors and project managers. Construction companies are having to get creative with incentives and benefits in order to hire and retain workers to keep the growth of the industry going.
Competition in the construction industry for projects is nothing new, however now there is great competition for the workers themselves. High turnover is extremely costly and the companies that are able to retain workers will enjoy the most profits. By having a consistent workforce, projects will be done before or on time and there will be little problems with safety because of the workers experience. The Construction Industry Institute report, Attracting and Maintaining a Skilled Workforce (RR135-11), reads that competitive wages and excellent benefits, offering workers a safe work atmosphere, offering training and certifications and treating the workers of all levels with dignity and respect will go a long way in raising a company’s retention rate.
The companies themselves need to be proactive in addressing the greatest challenge facing the construction industry to keep up with the massive growth that is happening. Finding and retaining great talent should be at the top of every company’s priority.