The situation is not unique to the US—countries like the UK, Germany and Japan are also struggling with workforce deficits that threaten economic growth, according to Construction Digital.
However, as highlighted in the 2024 National Construction Industry HR & Workforce Conference After-Action Report, this challenge is not insurmountable. Across the industry, Associated General Contractor of America (AGC) member companies are implementing innovative solutions to recruit new workers, retain skilled employees and build leadership for the future.
Recruiting the Next Generation of Construction Workers
The first step in solving the workforce crisis is attracting new talent. The report showcases successful strategies companies are using:
- Pre-Apprenticeship Programs: Local initiatives are training young people and adults with hands-on experience, leading to high hiring and apprenticeship placement rates. One AGC member reported 90% of its program participants have been hired by firms or accepted into a registered apprenticeship program.
- Construction Summer Camps: Programs introduce middle schoolers to the industry through interactive learning, helping to foster early interest in construction careers. The programs also provide a strong foundation and the tools needed to continue to pursue careers in the construction industry.
- Digital Recruitment for Gen Z: Recognizing that younger generations aren’t consuming traditional media, firms are leveraging YouTube Shorts, TikTok and Instagram Reels to showcase real employees and career opportunities.
- Non-Traditional Workforce Inclusion: Companies are partnering with veterans’ organizations, correctional facilities and non-traditional groups to attract a broader range of workers. Expanding the talent pool is critical as the proportion of men 20 and older in the workforce has declined from more than 76% at the start of the Great Recession to around 70% today, according to the Bureau of Labor Statistics.
Retention: Keeping Skilled Workers in the Industry
Attracting workers is just one piece of the puzzle—keeping them engaged and supported is equally critical. The report outlines several retention-focused tactics:
- Sponsorship Over Mentorship: Companies are shifting from mentorship to sponsorship, ensuring employees have career-building opportunities rather than just advice. AGC members have found sponsorships have allowed them to better retain and nurture top talent.
- Fair Compensation Across Career Stages: While many firms are increasing wages to attract new hires, maintaining competitive pay for experienced workers is key to retention and an area experts suggest focusing on.
- Mental Health & Suicide Prevention: With construction workers facing some of the highest rates of mental health challenges of all industries, firms are rolling out job site stand-downs, crisis training and resources for support. AGC members have found there is a need to train foremen, PMs and owners on how to identify signs of depression.
Training & Leadership Development for Long-Term Growth
Workforce shortages aren’t just about numbers—they’re about ensuring employees have the skills to succeed. The report highlights several key training initiatives that companies are using:
- Leadership Development for Field Workers: Great construction leaders spend as much time developing their team’s leadership skills as their technical craft. Programs that focus on leadership development are helping field workers strengthen emotional intelligence, communication and management abilities.
- Structured Employee Training Programs: Some firms have developed supervisor-in-training tracks, internship programs and leadership academies to foster long-term employee growth. AGC members are finding the more you train your people, the more your firm can grow and accomplish bigger things.
- Reimagining Construction Training: Companies are moving away from one-size-fits-all training, ensuring programs are tailored to technical skills, management abilities and essential leadership development.
Turning Challenges into Opportunities
The construction industry’s workforce shortage is a pressing concern, but solutions exist. The strategies outlined in the AGC Workforce Conference Report—from recruiting younger workers to investing in leadership development—offer a clear roadmap for companies willing to adapt.
By implementing these proven tactics, construction firms can build a more resilient workforce, ensure the timely completion of critical projects and secure the industry’s long-term success. The key is action—those who embrace innovation and proactive workforce strategies will be the ones who thrive.
Want details about the real-life successes of companies working to address workforce challenges? Read the report from AGC and Arcoro.
