A playbook for construction recruitment success
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What You’ll Get: Strategies for improving construction recruitment effectiveness amidst hiring challenges.
In 2024, the construction industry faces a perfect storm of labor shortages. With 91% of contractors struggling to fill open roles, and the U.S. Bureau of Labor Statistics projecting over 723,000 new construction jobs by 2030, everyone in the industry is feeling the squeeze. The recent infrastructure bill, allocating $1.2 trillion for projects nationwide, has only intensified the demand for skilled workers. Hiring more qualified construction professionals faster requires a multi-faceted approach, including more effective sourcing strategies, streamlined recruiting and hiring processes, and building a stronger and more compelling employer brand that resonates with today's skilled workforce.
Here are eight battle-tested strategies to supercharge the effectiveness of your construction staffing operation:
1. Utilize Specialized Construction Recruitment Platforms and Services:
While this may seem obvious, it's crucial to leverage platforms and agencies that specialize in construction recruitment. In a recent survey by the Associated General Contractors of America, 72% of firms reported better results when using industry-specific job boards compared to general platforms.
Construction is a unique industry with specific staffing needs, and specialized recruitment platforms have become invaluable for accessing a ready pool of skilled workers. These platforms, like Skillit, are designed specifically for the construction sector and leverage technology to match contractors with qualified craft workers. By using detailed criteria such as specific skills, experience levels, and project requirements, these services can significantly streamline the hiring process.
For example, data from Skillit shows that contractors using the platform have reduced time-to-hire by an average of 40% while improving retention rates by 25%. This targeted approach not only helps reach the right audience quickly and efficiently but also ensures a higher quality of match between employers and job seekers.
2. Develop Strong Relationships with Trade Schools and Vocational Programs:
While your immediate needs may be for skilled workers, remember that today's entry-level candidates are tomorrow's experienced professionals. Investing in nurturing and developing these newcomers can create a sustainable pipeline of skilled labor for your future projects.
A study by the National Center for Construction Education and Research found that companies with robust apprenticeship programs reported 80% better retention rates for those workers over a five-year period compared to external hires.
Partnering with vocational schools, community colleges, and trade programs can be a great source for the next generation of skilled labor. Consider offering internships, apprenticeships, and participating in job fairs to attract emerging talent.
3. Worker Referral Programs:
Harness the power of your existing workforce. Construction workers often have extensive networks of skilled professionals and can help you tap into a pool of other skilled professionals. . Implement a robust referral program – companies like Turner Construction have seen up to 45% of their new hires come through employee referrals. Offering incentives, such as bonuses or extra vacation days, can turbocharge participation by motivating workers to participate more actively in this process.
4. Strengthen Your Employer Brand:
In today's competitive market, your reputation as an employer is paramount: a 2023 LinkedIn study found that companies with strong employer brands see a 50% reduction in cost-per-hire.
What craft workers think about your company matters. A company that is known for good working conditions, safety, career development opportunities, and competitive compensation is more attractive and will vastly improve the effectiveness of your construction recruitment program.
By proactively building a strong employer brand that emphasizes your company’s values, work culture, and benefits, you can secure the trust of a wider pool of talent.
5. Engage Online and Off to Build a Strong Construction Recruitment Plan:
While it requires dedicated effort, engaging with your community both online and offline increases your visibility to potential candidates. A strong online presence using platforms like Facebook and Instagram to showcase your projects, highlight your company culture, and promote your job openings allows you to increase your visibility to a broader pool of potential candidates. And by investing in offline engagement – for example, sponsoring local events or youth sports teams - you can boost visibility in your community.
6. Offer Competitive Wages and Benefits:
In Q4 2023, construction wages rose 5.3% year-over-year, outpacing the national average. It’s important that your company’s compensation packages remain competitive for the trade, region, and skill level by regularly benchmarking your compensation packages against industry standards.
To make informed decisions about compensation, it's crucial to have access to real-time, accurate wage data. This is where platforms like Skillit provide a significant advantage, with a data-driven approach that offers robust profiles where craft workers proactively share their pay and benefit preferences. This transparency allows contractors to gauge market rates more accurately and understand what skilled workers in specific trades and regions expect to earn.
For example, Skillit's data revealed that nationally, workers show less variation in their willingness to accept lower pay, staying around the 20% mark across trades (with Laborers bucking the trend and being the least willing to accept lower pay, at 4%).
By leveraging these insights, companies can tailor their offers more effectively, potentially reducing negotiation time and improving acceptance rates. This data-centric method not only helps in setting competitive wages but also in developing benefits packages that truly resonate with today's construction workforce.
7. Continuous Training and Development:
Opportunities for lifelong learning and growth are increasingly important to today’s skilled construction worker. Offering continuous learning and development opportunities not only improves the skills of your current workforce but also makes your company more attractive to potential employees who are looking for growth opportunities.
The desire for growth opportunities is stronger than ever: a 2023 Gallup poll found that 87% of millennials rate professional development as important in a job. Implement structured training programs can have a measurable impact on retention— like Kiewit's Leadership Development Program, which has been credited with a 93% employee retention rate.
8. Seek out Diverse Candidates:
Diversity isn't just a buzzword – it's a business imperative. Women currently make up only 10.9% of the construction workforce, representing a massive untapped talent pool. Proactively reaching out to underrepresented groups who may not have applied on their own or who have historically been excluded and building an inclusive environment can significantly expand your candidate pool. Many people want to get into the trades or would want to get into the trades if they simply had more information and more access.
💡 Skillit Tip
The key is not just to hire faster but to attract the right talent that aligns with your company’s needs and culture. Balancing speed with thoroughness in your construction recruitment process is absolutely critical for the success of any contracting business.
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