Construction company owners know the industry is busy—they’re seeing it every day in new opportunities, bigger projects and difficulty recruiting. Nationally, the data backs up what they’re seeing on the ground.
The industry hit an all-time high GDP of $810.4 billion in the first quarter of 2017. Spending is up 40 percent since 2013 and it’s only expected to continue increasing in 2018. This is largely being driven by private residential, commercial and institutional construction.
The recent Hays 2018 Salary Guide, the company’s first cross-sector guide, showed construction employers as the most optimistic about business activity and hiring. More than three-quarters of construction employers surveyed said business activity will increase in 2018, and 76 percent say they will increase headcount.
Severe skills shortage challenges aggressive hiring plans
However, the survey shows what most construction employers are already aware of: an industry-wide skills shortage will make increasing headcount difficult. Overall, 83 percent of construction employers say they face a skills shortage and more than half say the shortage is severe. The biggest cause of the shortage, according to construction respondents, is fewer people entering the industry.
The lack of new people joining the industry left a gap between the baby boomers currently leading much of the industry and the Gen X and Y professionals who will need to step into those roles in the next five to 10 years. And while retirement isn’t top of mind for most employers, it’s going to make this shortage worse as construction firms try to fill those leadership roles from an even smaller talent pool.
Solving this shortage will require a combined effort from employers, educators and government agencies. However, firms looking for practical steps they can take to attract and retain great people should look at growing their own talent. Hiring for potential and training into more advanced positions is a great way to build a talent pipeline, and companies often get more loyal employees because of it.
Employers miss key attraction tools
When asked how they were making their company more attractive to top talent, more than half (54 percent) cited offering competitive salary packages. Close behind were promoting company culture (49 percent) and competitive benefits (48 percent). These are all important tools for attraction, and it is surprising that more companies aren’t promoting these aspects of their jobs.
However, less than a third of employers are promoting career progression or training and development. Growing internal talent is an important tool to overcome skill shortages, but career growth and training are also critical attraction and retention tools. Career progression was the number one reason respondents left their last position. Employers are overestimating the importance of compensation, with most saying this was the main reason people left their company. Competitive compensation is important, but most people will compromise on salary for a role that meets their personal, culture and career progression goals.
Proactive engagement is critical
The most common method of recruitment is job boards, with 59 percent of employers using them. However, just 22 percent say job boards are effective. Why don’t job boards work? This “advertise and apply” approach depends on active job seekers looking at an ad and being interested enough to send in their application. But Hays research shows that just 13 percent of people are actively looking for a new job at any given time.
What can a company do instead? Be proactive about findings and engaging potential candidates. According to the survey, the three most effective channels for hiring are an external specialist recruiter, employee referrals and social media. Most employers are using employee referrals, but their employee network is likely to be limited by the size of the organization.
Social media is an important way to reach a broader audience. Use social media channels to connect with a wide network of potential employees, and post the right content keep them engaged and interested until the company is hiring. Think about what information candidates and job seekers would want to know about the company and aim to share multiple times a week. This could be industry news, company updates, employee success stories or event photos.
Other ways to proactively connect with potential candidates include partnering with local recruiters, educational institutions and associations, which will have more extensive networks you can tap into when hiring.
2018 promises to be a busy year with a lot of opportunities for growth and expansion—but none of that is possible without the right workforce. Invest in training to grow current talent, hone recruitment strategies to target the right people, and proactively build an engaged talent pool to find and secure the right person at the right time.
