Construction spending has increased more than 40 percent in the last four years, according to Census Bureau data, and most regions expect further growth in 2018, which means more hiring despite an already shallow talent pool. Firms competing on salary alone will struggle; only one company can offer the highest pay and, in some sectors or regions, there is a risk of a bubble as market expectations outpace employer increases.
To make the most of a busy market, firms need the right people, and the only way to attract and retain the right people is with the right offer.
The What People Want report by recruiting firm Hays is based on a survey of more than 2,500 U.S. workers and includes breakdowns by sectors such as construction, IT, and accounting and finance. Asked to weigh four key job factors, respondents said that salary is the single most important aspect for accepting an offer or staying in a role, but salary is outweighed by the other factors of culture, benefits and career growth.
Less than half of construction respondents (46 percent) say they are happy in their current role, and 81 percent would consider leaving for the right offer. That indicates a serious retention challenge for employers, as candidates see the opportunities in the market and are prepared to move for a higher salary, better culture or new career opportunities.
Salary matters, but not exclusively
Construction professionals rate salary as more important for staying in a role and considering an offer. When asked what salary increase they expect to change jobs, 62 percent say they would want 10 percent or more. However, two-thirds would take a pay cut for their ideal job, so firms that have the right combination of benefits, culture and career opportunities may not have to join the race to the top of the salary range.
Culture is critical for retention
Company culture is second to salary in importance for weighing a job offer and staying with a company. It is weighed 16 percent more important for staying in a role, and construction workers say it is the main reason they would consider leaving their current job. The top factors for a great culture are strong leadership, open communication, work-life balance and company values. Construction professionals rate company values as 20 percent more important than respondents from other industries, indicating they are looking for an employer that aligns with their own core values.
Benefits: A key differentiator for attraction
Benefits alone may not be enough to secure a target candidate, but the right package can tip the scales. The report found three-quarters of employers offer health and dental to full-time employees; as a result, these benefits are considered standard and firms not offering them will struggle to compete. The benefit construction professionals most want is a signing bonus, indicating that in some cases a one-off payment could be the best way to sign the right person. Other highly sought-after benefits include share incentives, individual performance related bonus and a personal development allowance.
Projects and budget size are key factors for career growth
When asked what they considered most important for career growth, construction employees were more likely than other industries to say the projects they worked on and the size of the budget they managed were important. Other key elements include their relationship with their boss, internal opportunities and recognition for their achievements. Clear career paths are important for retention, emphasizing the opportunities for employees to increase their responsibilities and influence in the next three to five years.
Communicate for attraction and retention
Having all the factors candidates want is only part of the challenge. If candidates and employees are not aware of what an employer offers, then those programs are not an effective attraction and retention tool. Employers need to make sure they are not only offering the work environment, benefits and career growth that employees want, but also promoting those factors internally and externally.
Attraction and retention are already a challenge in this market, which makes understanding what candidates and employees want a critical competitive differentiator. Construction candidates want the total package of a competitive salary, great culture, and benefits and programs that support their career goals. Firms that stay at the forefront of these expectations and can build their employer brand and reputation in the local market will be most successful in attracting and retaining their workforce.
