Managing Talent in the 2025 Construction Industry
Part of a series | 2025 HR Trends Series
The construction industry will see transformation in recruitment, workforce culture, and skill-building this year. But even as technology continues to advance, the human touch is irreplaceable. How can leveraging technology support my recruitment process, my employees' well-being and their skill development?
For HR professionals in the world of construction, 2025 could mean fresh trends in talent, compliance and technology. Generative artificial intelligence (AI) is here, and with it, a growing emphasis on skill-building. To meet this moment (in a still-uncertain labor market), leaders should maintain an open mind, stay curious and work to adapt to these shifts.
This article examines 2025 HR trends through the lens of the construction industry, tracking how AI changes might impact recruitment, workforce culture and skill building. The key mantra for the this year? Focus on your people. Despite AI developments, keeping work human matters more than ever. But how can generative AI tools support recruitment, performance and employee well-being for your organization?
Read on for insights on navigating talent and developing a human-first workplace culture in 2025.
Generative AI and recruitment
Generative AI has the potential to reshape talent management within the construction industry.
Make these changes work for you
Eighty-five percent of workers believe AI will impact their jobs in the next two to three years, suggests ADP Research, and HR leaders, hiring managers recruiters in the construction industry are no exception. Hiring managers can leverage AI to streamline time management and talent acquisition processes. Generative AI tools can also automate the creation of job descriptions, scan and filter candidate résumés, reduce human screening biases and even schedule interviews.
The human-centric candidate experience
While these talent acquisition tools can save managers time and effort, best practices support keeping a "human in the loop." Without human oversight, generative AI-produced communications can come off as cold and impersonal. Further, an algorithm-driven AI tasked with screening could pass over an excellent candidate with a shabby resume. Finally, the tool itself may introduce bias into the hiring process, a key concern when advocating for improve diversity. With these limitations in mind, construction firms should always involve a real person in every part of the hiring and talent management process.
"We must maintain our human touch as we optimize hiring with generative AI," says Chris Mullen, vice president of workplace insights and transformation at ADP. "Candidates deserve personalized experiences . . . regardless of whether they accept a job offer."
Employee well-being
In recent years, more and more workplaces have prioritized a positive employee experience, or what workers see, hear, think and feel about an organization. Employee experience affects employee morale, your organization's reputation and client satisfaction. According to MetLife's 21st Annual U.S. Employee Benefit Trends Study (2023), employees who feel cared for by their employer are 92% more likely to feel engaged at work, 65% more likely to be loyal and 56% more likely to be productive.
Make it personal
Creating this caring culture starts with a simple question: what is important to my employees? Since the answer will vary, keep asking. Engaging employees in conversation teaches you how best to personalize their experience. Say a conversation reveals that your assistant foreman, a single parent, is interested in adding a certification. You can then direct them to an appropriate online training that won't interfere with childcare routines.
You can also customize tasks to tap each employee's unique skills or strengths. A new-hire with excellent math and people skills is worth considering for further training in project management. Further, human managers, can send email announcements and arrange regular one-on-one meetings. These adjustments pay off, teaching employees that you care about their work, and them.
Managing health and wellness
Any discussion of employee well-being, especially in construction, should also consider the impact of stress: according to the U.S. Department of Labor, construction workers face some of the highest rates of suicide and substance misuse treatment. Additionally, 50% of global workers report some job stress; 15% report daily high stress.
One Gallup study (2024) suggests that just 21% of workers feel their employers fully support their mental well-being.
Again, personalization is key: regular, private meetings with a direct supervisor, organized around specific employee needs and circumstances, can help employees manage high stress levels. During these meetings, managers can open up communication, prioritize flexibility where possible and promote resources, including mental and well-being health coverage (if available), to limit stress. They can also ease workloads by prioritizing tasks and setting realistic expectations. Above all, such interactions should leave the employee feeling seen and heard.
Skill-building: The new predictors of performance
In today's complex job market, skills rule. A skills-based approach to talent acquisition and retention shifts recruiters' focus from traditional qualifications — such as degrees and industry experience — to candidates' actual abilities. Construction leaders looking to fill labor gaps can lean on technology for employee upskilling and reskilling, via on-the-job training, boot camps and certificate programs.
The right skills for all generations
This emphasis will meet younger workers where they are, as they increasingly reevaluate traditional education and its uncertain return on investment. 75% of high school and college-aged individuals report interest in vocational schools that offer paid, on-the-job training, says Jobber's Blue Collar Report. Additionally, employers across sectors are dropping degree requirements for select roles.
Older workers, in turn, can use the new emphasis on skill-building to refresh their qualifications and remain relevant in the workplace for longer. This more experienced generation also models relevant skills for their younger counterparts.
Benefits of skills-based hiring
Not only does skills-based talent management and hiring fit the evolving needs of the construction workplace, but it also supports organizational performance. According to TestGorilla, 90% of companies using a skills-based hiring method report reduced mis-hires, and 94% consider skills-based hiring to be more predictive of on-the-job success than traditional credentials.
Scattered talent
As organizations capitalize on innovative technologies to expand, the construction workforce disperses geographically. This reality matters, says HR Dive, given that half of construction firms list building a talent pipeline as their top priority in the coming year.
A workforce without borders
Traditionally, construction projects relied on a largely local workforce, with workers, project managers, engineers, and subcontractors typically hailing from the same region or city. While the industry still leans local, the ability to use digital tools for communication, project management, and collaboration has made it possible for workers to be connected remotely across multiple job sites, regardless of their physical location. In a way that would have been unthinkable just 50 years ago, construction firms now employ teams that span multiple locations, working together in real-time on the same projects.
The benefits of a scattered workforce
A dispersed workforce gives construction firms access to specialized skills that may not be available in their immediate area, whether for administration, estimating, project management, building information modeling (BIM) design or other needs. When such tasks can be performed from virtually anywhere, construction companies can focus on hiring the best candidates, no matter their location.
The rise of multi-location organizations with digitally connected workers also means that construction firms can be more agile, quickly responding to changing market conditions and project needs. What was once a limiting factor for construction companies — being tied to specific geographic locations for talent — has now turned into a competitive advantage.
The path forward
Advances in communications and generative AI are ushering in significant changes for HR professionals in the construction industry. A skills-based talent strategy matters more and more, helping to align hires with evolving workplace needs and reducing the risk of mis-hires. While generative AI can dramatically impact recruiting practices, human oversight remains essential to keep out bias and maintain a personalized experience for candidates.
To thrive amidst these changes, construction HR leaders should prioritize continuous worker training, offer competitive wages and benefits, and comply carefully with applicable labor laws. By embracing these strategies, remaining adaptable and considering payroll and HR solutions customized for the construction industry, human resources personnel can navigate this uncertainty and build the workforce of the future.
Learn more about these trends: Download the 2025 HR trends guide.
