Construction Recruitment: Bringing Young Talent into the Industry
Amid the baby boomer retirement phase and the uptick in infrastructure projects, employers in the construction industry will need to attract new workers to keep pace. Here are five approaches to consider.
In the coming years, construction recruitment will continue to be a major priority, and the industry will need to focus on drawing new workers.
One factor driving construction workforce growth is that contractors are still in the thick of executing projects created by the Infrastructure and Jobs Act of 2021 and its $1.4 trillion in funding. It does seem to have driven up the number of construction jobs. Consider that at the beginning of 2021, the private construction industry had around 7 million employees, according to ADP Research Institute data. Three years later, nearly 8 million people work in the industry.
But the construction industry is also at a stage where working baby boomers are approaching retirement age, creating a shortage of knowledge and experience as they leave. And the issue is compounded by the trend of millennials and Gen Zers seeking non-labor jobs.
We spoke with Kit Dickinson, industry executive at ADP, about what employers can do about workforce numbers and encouraging more young people to pursue careers in the field.
"There's a lot of change going on in terms of attracting and retaining workers, and it starts with the recruitment process," Dickinson says. While there's no magic formula for drawing workers to any industry, Dickinson offers five recruitment approaches for construction employers to explore.
1. Explain the earning potential of a construction career
Many young people have misconceptions about pay levels and advancement in the construction field. The latest industry data from the U.S. Bureau of Labor Statistics (BLS) indicates construction laborers (not including managers) have an average yearly income of $42,970. In February 2024, the ADP Research Institute (ADPRI) indicated $69,200 was the pay level across the entire construction industry—up 5.5 percent over the same time last year. Since mid-2021, construction pay has consistently gone up between 4 percent and 7 percent every year, according to ADPRI data.
Workers can slide up the pay scale quickly, however. "It's pretty impressive what project managers can make," Dickinson says. The BLS indicates those salaries average $100,000 per year, and Dickinson says superintendents can notch up to $200,000.
"There's real money to be had," Dickinson says, for those who stay and advance in the industry. With the supply-and-demand situation right now, Dickinson says, younger workers need to know there's wage growth and stability in the market that's unlike other sectors.
2. Tout the power of tuition reimbursement and cross-training
"Tuition reimbursement is a big one," Dickinson advises, "because for many roles, there's a barrier of entry into the trades." People who want to work in skilled trades can't just show up on the job site and expect to become proficient with all the machinery and technology on the fly. It takes training, and training requires tuition. Companies that offer reimbursement for new hires' continuing education are very attractive right now, Dickinson says.
Employees also want to know there will be support beyond beginner-level training to continue advancing their skills. Some key focus areas in the current market are developing skills in emerging technologies, such as using artificial intelligence to automate processes, drones to survey job sites and 3-D printers to create specialty parts. Plus, as employees master skills, Dickinson explains, they'll also benefit from managerial training and gaining the big picture of how all the work gets done on a site.
"A lot of workers have a thirst for knowledge and want to make themselves more marketable," Dickinson says. "Offering cross-training and leadership development is the key way to do that."
3. Tailor competitive benefits to younger workers' priorities
The shift in the construction industry from retiring workers to a generation that's new to the workforce may mean rethinking what benefits to offer.
"The benefits are often the differentiators," Dickinson says, noting that the more progressive and successful firms are the ones that aren't trying to have a one-size-fits-all benefit offering. Rather, they have a menu of options that are tailored to different demographics in their company.
For example, most business owners know they can leverage the value potential of retirement benefits. Many encourage younger workers to take advantage of a matching 401(k) to get started on saving early. But new workers may have more immediate needs, Dickinson says. Equipment and gear to get started in the industry can be expensive. One company, Dickinson points out, offered to reimburse workers for steel-toe boots on the first day and drew more new employees than another company that had a 30-day waiting period.
"You have to have great awareness of what your competitors are offering, then get creative and tailor the benefits to what the workers of today are looking for as important," Dickinson says.
4. Realize talent can be drawn in by culture-forward policies
Workers today care about building a career with socially conscious employers. The World Economic Forum notes 87 percent of U.S. employees feel it's important to work for a company that aligns with their values, and a Gallup-Bentley University survey indicates 55 percent of people would change jobs to work with an organization that has a greater positive impact on the world.
"An important element of the younger generation," Dickinson explains, "is wanting to have an impact on society."
The construction industry has a number of inventive ways to participate in environmental and social responsibility. It can be as simple as allowing for paid days off to work in the community on a passion project, Dickinson says. Policies like these can then be leveraged to for employee engagement. For example, Dickinson says, in contrast to the traditional "show up and get to work" mentality, new hires can be onboarded with a company culture guide indicating different impact programs and resources available to them.
5. Support policies that will help draw more women to the field
Women make up about 14% of the construction workforce, which Dickinson says "is not enough on many levels." Some of the holdback to increasing the number has been providing accommodations — from ensuring working parents have help with child care to having equipment sized correctly for the average woman's stature. Employers in the construction industry can also draw more women to the field by providing mentorship within the company or by partnering with groups such as Women in Construction Operations or Women Into Construction.
Employers who work to solve these issues may be the ones to see a boost in their recruitment numbers.
"Absolutely to be the employer of choice, the more flexible and accommodating you are puts you in a much better position," Dickinson says.
Understanding the competitive hiring landscape
As an older workforce reaches retirement and projects continue to boom, employers in the construction industry need to think creatively about how to draw new hires. It's not enough that the number of construction jobs is expanding and construction ages are growing steadily. Younger workers want to know what they can look forward to as to career longevity, benefits, training and cultural relevance. Committing to these areas can help with attracting and retaining talent in the industry.
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