Construction employment is at its highest level since 2008 and shows no sign of slowing down. The latest forward-looking ManpowerGroup Employment Outlook Survey found the employment outlook in construction hit its strongest level in more than 11 years with more than 19 percent of construction employers planning to add staff in Q3, amplified by the fact that skilled trades positions are the hardest roles to fill in the United States, according to the ManpowerGroup 2018 Talent Shortage Survey.
High talent shortages, low unemployment and increasing demand for hard and soft skills are the reality for U.S. employers. New solutions are needed to address the big talent problem.
Here are three practical steps employers can take business as hiring heats up this summer.
If you can’t buy skills, build them
In this climate of high employment and technological change, a just-in-time approach isn’t going to get the talent businesses need. Employers should map out skill needs and identify candidates with adjacent skills sets: those that are closely connected and can be adapted to new roles.
This comes into play with advanced manufacturing where nearly two million manufacturing jobs could go unfilled by 2020—an incredible number in an increasingly tech-forward industry.
Success Story
Veterans share many relevant, adjacent skills that can easily be adapted, developed and applied to high-tech manufacturing jobs. Veterans also have strong learnability—the desire and ability to learn new skills—for these high-demand instrumentation, automation and controls technician roles.
Some organizations are creating training programs that include factors such as classroom learning, hands-on experience and career training. Veterans are an exceptional pool of potential skilled trade workers to recruit for these programs. This kind of fast-track, experiential training can help mitigate the demand for skilled trade workers.
Cultivate communities of talent outside the organization
HR traditionally has focused on permanent employees inside the company. When the need is to complement existing skills, fill gaps for short-term projects or quickly find external expertise, it’s time to borrow talent including contractors or temporary workers.
More and more skilled workers are choosing to work this way. Eighty-seven percent of all workers are open to NextGen Work, including part time, contingent, contract, freelance or temporary.
Success Story
A company in South Dakota was struggling to fill a number of 40-hour-per-week manufacturing roles. They couldn’t find people who wanted full-time work, but kept meeting college students who were interested in part-time roles. Through this market intelligence, the company divided the 40-hour role in half and filled the positions.
In these labor market conditions, businesses have the opportunity to cultivate communities of workers inside and outside the company, explore total talent management solutions, become systems thinkers and become better marketers overall.
Above all, hiring managers need to flex and tap talent in whatever form it’s available.
Audit to save costs and buy talent
Construction projects are typically among the largest, most complex financial expenditures companies undertake. It’s important that owners or lending institutions have adequate internal controls in place during the project life cycle for theirspecific type of construction contract.
Financial management controls add value throughout the construction project life cycle. Strengthening financial controls over the construction process can help prevent overpayments and protect against irregularities, establish financial reporting processes, avoid litigation and ensure procedures are in place to identify and manage risks.
In a tight labor market, employers must work hard to attract workers with a strong employee value proposition, clear purpose and attractive culture. Otherwise, they will need to be prepared to pay a premium with benefits, wages or other perks. An environment of low unemployment and talent shortages can drive up wages and attrition. Implementing cost savings measures up front can help pay in the long run to attract skilled workers.
As it becomes more difficult to find top talent, now is the time to hire strategically to solve this nationwide talent shortage.
