Recruiting

As the construction industry ushers in the new year, the need to recruit skilled workers has never been more pressing.
Too many times HR is considered a cost center. That’s because it is expensive to manage a construction company’s workforce, especially if many of your processes are still done manually. Switching to automated processes using HR software can turn your HR department into a profit center— especially when the HR software ROI is easily proven. 
Contractors face a myriad of workforce challenges every day and many of those don’t seem likely to disappear in 2025, especially the lack of skilled workers.
Construction companies face unique HR challenges that impact their ability to complete projects on time and maintain a skilled workforce. From labor shortages to labor law compliance requirements, HR professionals in the construction industry must navigate complex obstacles while keeping projects moving forward. Understanding these challenges and implementing effective solutions is crucial for construction companies looking to build and maintain high-performing teams.
If you asked HR professionals 30 years ago if they’d rehire a former employee, you’d likely hear a resounding, “NO.”
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There are more than 18 million veterans living in the United States. Actively recruiting from this demographic is not only the right thing to do, but it also provides construction companies with a strategic advantage as these workers come with essential skills like discipline, problem-solving and adaptability that can help companies build an effective and productive workforce.
Key Findings on the Industry’s Strategies for Recruiting, Retention and Workforce Management
Each year contractors experience turnover. Some established workers leave for new opportunities while others are laid off until projects start back up. The construction industry saw 150,000 workers quit in December 2023, while layoffs totaled 169,000.
More women in construction could be just what the industry needs right now. The construction industry is facing an unprecedented worker shortage. According to the Associated Builders and Contractors (ABC), the construction industry will need to attract an estimated 501,000 additional workers on top of the normal pace of hiring in 2024 to meet the demand for labor. In 2025, the industry will need to bring in nearly 454,000 new workers on top of normal hiring to meet industry demand, and that’s presuming that construction spending growth slows significantly next year.

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