The construction industry has experienced skyrocketing demand throughout the pandemic. Stimulus money, rising property values and spending more time at home led many building owners to tackle upgrades and projects that they had been delaying for years. Now, the infrastructure bill could lead to even more work, yet the construction industry has struggled with supply and labor shortages throughout the pandemic that have delayed jobs and hampered growth opportunities. As many industries struggle to attract workers rising wages and benefits wars are making it more difficult than ever to recruit and retain employees.
This is particularly true for smaller, independent construction businesses that cannot compete with the offers and signing bonuses being put forth by megacorporations. For example, Walmart kicked off the high-profile wage and benefit competition announcing it would pay for college for eligible employees. Target soon matched this offer followed by Amazon announcing it was raising wages to $18 an hour and adding college tuition benefits. For younger generations, the appeal of job that is less demanding physically and that will pay for higher education can be a strong pull. One area where the construction industry is extremely competitive is wages.
The employment challenges that the construction industry must overcome are benefits and workplace flexibility. The one benefit that many job seekers want, the ability to work remotely, is not possible for many construction company employees. But the pandemic has made more than geography a priority for many people. In construction, employers rely on a lot of part-time workers due to the variable nature of the work, and offering traditional medical, dental, and vision plan benefits has not made sense for the employer and employees. In fact, offering a qualified medical plan to a part-time employee could disqualify them from low-cost or free medical plan coverage through government subsidized options.
Instead of traditional benefits, employers need to recognize employees’ needs for caregiving, mental health, vacation time, flexibility to care for elderly parents or children, education and a clear career growth path—all of which hold greater value for people today. More than ever, employees are looking for a place to work that offers them a sense of purpose and belonging, and this is something employers in construction can focus on without spending a lot of money on offering a new benefit. Leading the competition for labor with work culture, a clearly defined career path, and job flexibility instead of pay and wages can be very effective.
One of the biggest changes in benefits for employees in the construction industry is employers recognizing the need to support the well-being of employee’s mental health. More companies are expanding mental health resources and creating programs to remove stigmas and give employees greater access. The pandemic has caused a significant increase in mental health challenges, and some hotel workers are still dealing with the impact it had on them. According to the CDC, 11% of adults reported symptoms of anxiety and depression between January and June of 2019. In December 2020, that number had grown to 42%. Some of the most popular mental health benefits companies are offering include:
- Access to free counseling sessions or reduced copays for in-network therapy;
- Subscriptions to virtual counseling service apps; and
- Subscriptions to wellness apps for meditation, stress reduction and improved sleep.
Childcare continues to be a challenge for employees this year. Even though children have returned to school, COVID-19 cases among kids continue to rise and many kids are having to quarantine after being exposed at school. How do construction companies meet these needs without spending a lot of money? By providing information on inexpensive or free resources for mental health and support and consider implementing an Employee Assistance Program (EAP) that can be less than $4 per employee per month.
Construction companies should also expect to see an increased demand from employees for benefits that extend to family members. It is not just parents who have felt the squeeze of trying to balance work and care giving during the pandemic. Many working adults had to become caregivers for their elderly parents as well. For full-time workers, employers in construction fields should consider expanding their benefits to assist with elder and childcare, such as expanded EAP plans. And for part time employees, offering greater flexibility for work schedules could help with these needs.
For several generations there has been a push to pursue a college education and white collar careers. Now, as older workers in the construction industry prepare to retire, the pandemic continues to fuel demand and the infrastructure bill drives new projects for years to come, there is a large need for more people to pursue trade careers. In addition to exploring some of the approaches to benefits outline above, employers will also want to identify opportunities to provide introductory and career development training to potential and existing employees to ensure they can meet ongoing demand.
