The sector is grappling with a significant labor shortage, with the industry needing to bring in an estimated 454,000 workers in 2025 on top of normal hiring to meet demand.
The worker shortage poses challenges to project timelines, quality and overall industry growth – as well as being a serious drain on your HR staff’s resources. Addressing this issue requires a strategic approach to recruitment, leveraging modern tactics and advanced HR software solutions.
What’s Behind the Worker Shortage?
Construction organizations have been aware of dwindling numbers for some time, but recent factors have made the shortages even more pronounced.
- Aging Workforce: A significant portion of the construction workforce is nearing retirement. The National Center for Construction Education and Research estimates that 41% of the construction workforce will retire by 2031.
- Increased Demand: The surge in infrastructure projects and commercial developments has heightened the need for skilled labor. Construction Dive states activity in these sectors, such as retail, office and warehouse projects, helped drive a slumping demand for construction in mid-2024.
- Industry Perception: Misconceptions about construction careers continue to deter younger generations from entering the field.
Understanding why the shortage exists can help organizations find solutions that counteract the effects. Because – of course – to maintain productivity and sustain growth, construction companies need a strong workforce and that means having the ability to recruit new workers when necessary.
Effective Recruitment Tactics
In today’s competitive job market, attracting and keeping top talent can be challenging, especially in industries like construction. Here are some practical strategies to help you stand out.
Make the Industry More Appealing
One of the reasons for the shortage is that younger workers aren’t choosing careers in construction. Organizations need to connect with the next generation. Partner with high schools and vocational programs to showcase the exciting opportunities in construction. For example, host “career days” where students can see construction tech in action or hear from employees about their career paths.
Construction companies should also work to refresh the industry’s image. Let’s face it, the construction industry doesn’t always get the credit it deserves. Highlight advancements like drone technology, 3D modeling, or sustainable building practices to show how innovative the field really is.
Offer Competitive Compensation and Benefits
Knowing the market can offer a significant advantage. Use tools like the Bureau of Labor Statistics to see what similar roles are paying and ensure you’re offering competitive wages. For instance, if other companies offer sign-on bonuses, consider doing the same.
Go beyond paychecks and think about what today’s workforce values. Offer perks like flexible scheduling, mental health resources, or student loan repayment programs to stand out.
Build Skills Through Training and Apprenticeships
Provide workers with the opportunity to learn while they earn, closing the skills gap between your retiring and new workers. Set up on-the-job training programs so new hires can build skills and earn a paycheck at the same time. For example, a hands-on apprenticeship program in carpentry or electrical work can help attract people eager to learn.
Value success by offering certifications like OSHA safety training or LEED accreditation. This boosts their confidence and your company’s reputation.
Use Tech to Find Talent
The right HR tech can help transform your recruitment tactics, making the process more streamlined and effective. Start by tapping into online platforms. Post job openings on platforms like Indeed or LinkedIn to reach more candidates but also target construction-specific job boards. Consider sharing employee success stories to add a personal touch.
Engage prospects on social media. Platforms like Instagram and TikTok are great for showcasing your company culture. Post behind-the-scenes videos, project highlights, or even employee takeovers to connect with younger job seekers.
By focusing on these strategies and tailoring them to your company’s unique strengths, you’ll be better positioned to attract and retain the talent you need.
HR Software Streamlines Recruitment
Arcoro offers cloud-based HR solutions designed for field-based employees. The platform assists in applicant tracking, onboarding and compliance management, ensuring a seamless recruitment process.
Arcoro’s HR recruiting software offers several benefits to construction companies seeking to enhance their hiring and onboarding processes:
- Streamlined Hiring and Onboarding: Arcoro’s solutions simplify the recruitment process, enabling companies to fill open positions more efficiently while ensuring compliance with industry standards.
- Mobile-Friendly Application Process: The software’s mobile optimization allows candidates to view and apply for job postings from their devices, broadening the applicant pool and improving the candidate experience.
- Enhanced Employee Retention: By updating hiring practices, including recruiting and onboarding, companies can attract better workers and retain them longer, addressing labor shortages in the construction industry.
- Improved Employer Branding: The software aids in promoting a positive employer brand, which is crucial in attracting skilled laborers, tradespeople and other professionals who have their pick of opportunities in a competitive job market.
- Compliance Maintenance: Arcoro’s solutions help maintain compliance with legal and regulatory requirements, reducing the risk of penalties and ensuring smooth operations.
These features collectively provide construction companies with the tools needed to effectively recruit, onboard and retain skilled employees in a challenging labor market.
The construction industry’s labor shortage presents a formidable challenge, but with strategic recruitment tactics and the integration of advanced HR software solutions, companies can attract and retain the talent necessary for sustained growth and success. By enhancing the industry’s appeal, offering competitive compensation, investing in training programs, and leveraging technology, construction firms can build a robust workforce ready to meet the demands of the new year and beyond.
Revolutionize your hiring tactics with Arcoro’s solutions. Get started by contacting us to learn what solutions would work best for your needs and budget.
