General contractors are feeling the labor squeeze. The labor shortage that many thought would be a short-lived issue is here to stay for the foreseeable future. Employers are finding it increasingly difficult to hire dependable, capable workers. Contractors are hit particularly hard by labor shortages because they can’t commit to deadlines for clients until they have workers who are committed to showing up to do the work. Some smart construction hiring practices can help. Follow these tips if you’re seeking reliable construction workers in 2023.
Why It’s Getting Increasingly Harder to Hire Construction Workers
While the rest of the economy is only just now feeling the sting of labor shortages, the construction industry has been dealing with an ongoing generational challenge when it comes to keeping construction sites staffed. There are many reasons why construction is struggling more than other industries to attract talent. Here’s a rundown of the four core reasons why it’s so difficult to hire construction workers today:
- 1. The pandemic caused many experienced construction workers to retire earlier than expected. In addition to leaving blank spaces on construction sites, these retirees also took their knowledge and experience with them.
- 2. In addition to causing older workers to retire, the pandemic also slowed down the pipeline of new workers. Lockdowns caused many training programs to either suspend or limit operations. Many have still not resumed enrollment at full capacity.
- 3. Many younger workers who did not have the opportunity to complete general construction during the pandemic pivoted to other industries that allowed for more flexibility.
- 4. According to an analysis of the labor mismatch in U.S. construction published by McKinsey & Company in April of 2022, the construction industry is losing talent to industries that pay higher wages. Despite the fact that construction wages grew by 7.9% between 2019 and 2021, the increase wasn’t enough to keep construction jobs competitive for workers. Many workers who would normally be attracted to construction jobs are being siphoned by transportation and warehouse jobs that saw wages grow by 12.6% during the same period. What’s more, these jobs are generally perceived as offering better working conditions.
All of these construction-specific challenges are compounded by the general sentiments that are causing today’s labor shortage. Many people are choosing to stay out of the workforce after making lifestyle changes during the pandemic. Just how big is the gap that needs to be filled if the construction industry hopes to keep up with demand?
“The construction industry will need to attract nearly 650,000 additional workers on top of the normal pace of hiring in 2022 to meet the demand for labor,” according to a model developed by Associated Builders and Contractors. For general contractors seeking to get commercial construction jobs booked in the coming months, the need is more immediate. They need to discover ways to siphon the talent that exists in today’s very limited pool. Next, take a look at tips for hiring construction worker teams.
Best Places to Hire Construction Workers
Knowing where to look to hire a good construction worker with strong construction skills is half the battle. Ideally, a general contractor or construction firm will have multiple recruiting channels to ensure that applicants will keep coming in if one source dries up. Here’s a rundown of the best places to find construction employees.
Referrals
Let’s label this one the winning strategy. Word of mouth is everything in the trades. You’ll be in good shape if you can scoop up workers by getting referrals from your current employees. Many construction firms offer a “finder’s prize.” This refers to a cash incentive that’s paid out whenever you hire someone who was referred to you by an employee. In addition to being a great way to find employees, this is also a great way to find long-lasting employees because the people you’re hiring already have a built-in connection at your company.
Hardware Suppliers
Make use of the shops you frequent for your materials and supplies by asking the owner about referrals. You can also ask about hanging up some flyers in shops.
Job Boards
It’s a misconception that job boards are only for white-collar jobs. Many general contractors are using these boards to post construction worker jobs. While some boards are more desk-job oriented than others, ZipRecruiter is generally considered to be the strongest job board for trades.
Craigslist
Yes, putting up job ads on Craigslist can feel a little bit clunky. However, you can find skilled workers on this site if you’re willing to be patient about filtering through replies.
Staffing Agencies
If you don’t have the time or resources to dig through online listings, read resumes, and interview dozens of candidates, hiring a staffing agency is an economical option. Staffing agencies take care of all of the hard word of gathering candidates. After vetting resumes, they put you in contact with the “cream of the crop.” Staffing agencies can provide permanent employees, temporary employees, or daily workers.
Dedicated Recruiters
A dedicated recruiter takes on the task of handpicking picture-perfect candidates to fill your vacant positions. Generally, this white-glove approach to finding your perfect candidates is too expensive to justify when hiring general employees. However, it’s a worthy investment if you’re looking to fill supervisor, manager, or other senior roles.
Write an Effective Job Ad
Many people underinvest in writing job ads because they don’t understand the value of a carefully crafted, clear job description. In fact, it’s very common to take the “lazy” route of simply copying and pasting ads from other employers. This tactic doesn’t work in an age of labor shortages. You need to make your job opening appear as desirable as possible.
The quality of your job ad is important for two reasons. The first is that you’re essentially selling a job in today’s tight labor market. In many ways, it’s the employer who is being interviewed instead of things being the other way around. You need to make your place of employment stand out as the best place to work. Employees need to see “a future” when they read a job ad. They are looking for a job that feels welcoming, respectful, and capable of providing growth and stability. You need to get candidates excited about applying to work for you.
Why should a person want to work at your company instead of the one down the street? You can’t write a job ad unless you have a clear, compelling answer for this question. Jot down at least five “selling points” that differentiate your company from competitors.
The second reason why a job ad is important is because the quality of your ad is linked with the quality of the candidates you’ll be attracting. Generic ads tend to attract generic candidates. The goal of an ad is to attract candidates with the skills and qualities your company needs.
Have a Structured Interview Process
Many employers in the construction industry lose money on new hires because they don’t have dynamic interview processes. As a result, they hire “poor fits.” These employees inevitably drop off after an employer has invested time into recruiting and training. It’s important to approach the interview process with the intention of hiring the “right” candidate instead of hiring someone to fill a spot.
Having a structured, uniform process across all candidates is important. This allows you to do true apples-to-apples comparisons when making decisions. Create a method for scoring candidates. One suggestion is to have a list of technical questions that you ask every candidate. These questions should relate to how candidates would create solutions for specific problems and situations that are likely to occur on a construction site.
Don’t Skip the Background Checks
A labor shortage is no reason to skip background checks. Many construction firms use the Checkr platform to conduct instant background checks. However, any well-reviewed platform will do. You can also hire a third-party company to conduct checks for you. Let’s talk about why you can’t skip background checks.
An estimated 25% of Americans (64.6 million) have a criminal record. Chances are high that one of their resumes will pass over your desk. A large number of criminal charges are related to drug offenses. This is something that should be on the radars of contractors during the hiring process because the data shows a clear line between substance abuse and workplace problems.
According to the National Council on Compensation Insurance, over half of on-the-job accidents involve drug abuse. What’s more, studies by the U.S. Department of Labor show that substance abuse factors into 35% of all workplace fatalities and injuries, 40 percent of thefts, 38% to 50% percent of all workers’ compensation insurance claims, and 35% of absences. Data from the National Survey on Drug Use conducted by the Substance Abuse and Mental Health shows that roughly 15% of all construction workers in the United States live with a substance abuse disorder. For comparison, substance abuse disorders affect just 8.6% of the general population of adults compared to the average construction worker.
It’s also important to avoid the temptation to skip references. It’s just as important to actually follow up on references. Make the call to ask the essential questions that confirm that a candidate has supplied authentic references instead of simply listing friends.
Use Employee Management Tools to Make the Experience Better for Workers
While it’s important to be thorough during the hiring process, it’s also important to remember that it’s a “worker’s market” right now in the employment world. Workers don’t want to waste time with sloppy, disorganized employers. Show your employees that you have your act together starting at the onboarding process. It’s important to use technology to offer the best experience for your employees. In addition to being important for retention levels, your flawless management can also help to boost referrals. That means you’re snatching up all the top talent before your competitors.
First on the list of priorities for employees is getting paid accurately and promptly at every pay period. Top-notch construction management software helps you do that. Contractors and construction firms that use Workyard for time tracking never have to worry about inaccurate, late paychecks. Workyard tracks everything in real time to provide you with accurate time sheets for creating accurate paychecks. That means easier books, happier employees, and less work on your part. Employees love it when their employers use Workyard because it offers more transparency into their hours for the week. Learn more about why Workyard is the most accurate construction time tracking software today!
