Construction Can Look to Gen Z and Technology to Sustain Talent Pipeline

by | Nov 5, 2024

You've heard it over and over: Gen Z is the solution to the labor shortage. But there may be another way to tap into that talent pipeline.

With a documented labor shortage in construction and an abundance of construction projects, construction business leaders in need of growing their workforce have an opportunity to tap into Gen Z to help build and sustain their talent pipelines over the long term.

Research published in Issue 7 of ADP Research’s quarterly Today at Work found the blue-collar share of employment for workers aged 20 to 24 was 18.6% in January 2024, 2.3 percentage points larger than that of the same age group in January 2019 and 2.5 percentage points larger than that of workers 25 to 39. However, despite this overall rising trend from 2019 to 2024, the same analysis from ADP Research found the blue-collar share of employment for these young workers has flattened since 2022.

Approaching 2025, the ability for construction companies to jumpstart the recent plateau of Gen Z entering the blue-collar trades is a labor market story to watch. Leveraging technology to help make this happen could be an exciting opportunity in the new year.

To enhance the recruitment of Gen Z, there are opportunities to dispel some of the myths that construction jobs are limited to a traditional hammer-and-nail skillset by highlighting how technology is an active and growing part of both the jobsite and the back office. For example, on the jobsite, there’s a need for drone operators, 3D-imaging technicians and robotics engineers. In the back office, there’s a need for developers and software engineers who can leverage AI to improve jobsite safety and optimize projects. Highlighting this to tech-savvy Gen Z employees during the recruitment process could go a long way towards securing tomorrow’s talent pipeline.

From an employer perspective, leveraging technology to recruit Gen Z goes beyond marketing the demand for tech skills in construction. Construction companies can also utilize tech solutions to potentially help drive recruitment efforts. With the right tools, employers can leverage robust compensation benchmarking analytics to help ensure they are recruiting and retaining Gen Z employees with competitive pay based on their role, experience and location. Talent solutions that can help match Gen Z candidates with job requirements could broaden a company’s talent pool to identify well-fitting employees.

Moreover, technology could help make construction workforce management more streamlined. Something simple like work boot reimbursements paid earlier to workers can now potentially be a smoother process thanks to tech. Gen Z has grown up with the power of smartphones at their fingertips and new construction workforce technology can help meet the standards they’ve grown accustomed to, which could go a long way towards recruiting, retaining and engaging this generation.

Finally, construction workforce technology has the potential to drive efficiencies throughout an organization, which could free up time for business leaders to really focus in on recruiting and retaining Gen Z. For example, technology can help manage complex government and union requirements that would previously be a drain on time and resources.

With many projects available but sometimes not enough workers to staff them, it’s important for construction business owners to bring back momentum when it comes to recruiting Gen Z into the construction trades. Leveraging exciting technological advancements in construction, both on the jobsite and in the office, could be a core part of the strategy to make it happen.

SEE ALSO: ATTRACT AND RETAIN GENERATION Z

Author

  • Kit Dickinson

    Kit Dickinson is an industry executive at ADP, leading ADP's industry-focused efforts in the construction industry.

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