Challenges of recruiting manpower in the contracting industry
Challenges of recruiting manpower in the contracting industry,
Every industry faces daunting challenges year after year, and the construction industry is no exception.
Over the past two years, the construction industry has been hit hard by the pandemic, supply chain delays and inflation.
But looking into 2023, some of these challenges may be on the way to mitigation.
As rising construction costs should stabilize at 2%-4% in 2023 and 2024, on par with historical averages.
Supply chain disruptions are expected to disappear, and construction orders are expected to remain healthy in the near term, due to demand for new construction and infrastructure projects.
However, there are still some challenges in 2023 around employment. According to LinkedIn, the employment challenges for 2023 include a younger talent pool, an aging workforce, and strong competition for workers.
Looking ahead, here are some of the top construction workforce challenges for 2023.
Workers expect higher wages
Workers want to earn more money. In 2023, construction companies will face challenges with the increased expectation of wages from employees.
Your employees will demand a pay rise because inflation is high, and the cost of living has gone up.
According to the Bureau of Labor Statistics (BLS), the Consumer Price Index has increased 8.2% over the past 12 months.
The biggest increases were for shelter, food, and medical care, and as these costs continue to rise, your workers will either demand higher wages to cover them or look to competitors who will pay them more.
To meet the challenge of increasing wage expectations, construction companies will need to adjust budgets to accommodate higher wages.
They may also need to re-evaluate their benefits packages and include employee-demand items that will set them apart from the competition.
For example, providing flexibility such as tech breaks, allowing workers to self-schedule or switch shifts and encouraging PTO
Shortage of qualified workers
Not only are there more jobs than there are workers, but many of those workers are unqualified.
In 2023, construction companies will continue to face the challenge of recruiting and hiring qualified workers.
The shortage of qualified workers is partly due to the number of baby boomers retiring.
According to the US Census, all Baby Boomers will be retired in the year 2030, where this problem lies in the fact that this generation makes up a large portion of workers in the construction industry.
The number of workers 55 and over in construction nearly doubled from 11.5 to 22.7 between 2003 and 2020, according to the BLS, and two-thirds of workers are 25-54. The median age of a construction worker in 2020 was 42.5.
Not only does this make competition for skilled workers tight, but construction companies may also have to offer more training to unskilled workers.
And investing in a Learning Management System (LMS) can give construction companies an edge when it comes to employee development.
The Learning Management System (LMS) can also track the completion of training and certifications which can help reduce the skills gap among employees.
Competition with other industries for workers
Construction is not the only industry experiencing a labor shortage, in 2021 more than 47 million workers will leave their jobs in search of better work/life flexibility, better wages and a strong company culture.
And while construction suffers from a labor shortage, it is not the only one. According to the US Chamber of Commerce, labor shortages affect:
wholesale and retail trade – 70%
Leisure and hospitality – 60%
Manufacturing of durable goods – 50%
Professional and business services – 30%
Financial activities – 25%
With so many industries facing a shortage of workers, construction companies will have to work harder to hire workers for not just their company but the industry as a whole.
Convincing young people to start building
It will be difficult to increase the number of workers in the construction sector as there are very few young people entering the industry.
According to the BLS, 61.8% of 2021 high school graduates ages 16 to 24 are enrolled in colleges or universities.
The focus on higher education, over trade, has increased steadily over the past forty years.
According to the National Center for Education Statistics, in 1969 there were 8 million students enrolled in post-secondary institutions and in 2019,
19.6 million students are enrolled.
The pressure is likely to be for higher education, and to a lesser extent for trade schools,
Part of the reason for the decrease in youth pursuing careers in construction.
Other factors can include working conditions in construction, such as irregular working hours,
Working outdoors in inclement weather has the potential for accidents.
To address these challenges, recruiters will need to pay construction benefits to potential workers, including those still in high school. These benefits include:
The ability to earn money from day one with paid on-the-job training
Variety of jobs available for a variety of skill levels
Free from tens of thousands of dollars in debt from student loans
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