5 Ways to Manage Labor Shortages in the Construction Industry

If we look at the current labor shortage stats, it is no surprise that recruiters need help to keep up with workforce demands in the construction industry.

In a press release, the Associated Builders and Contractors, stated that the US construction industry would need to attract around 590,000 new entrants for 2023 alone, which is expected to grow in the future. In addition, over 40% of the current US construction workforce is expected to retire over the next decade, according to Forbes.5ways-labor-shortages

Retention Is Key to Labor Shortages

There are not enough people entering the construction industry to replace those that are leaving and retiring, and competition due to the labor shortage is intense.

Offering higher wages and benefits could increase recruitment numbers, but this is not a sustainable solution. Never has the retention of your employees been a higher imperative.

There are key drivers of employee retention beyond wages and benefits in today's workplace. Employees expect appropriate training, tools, and resources to perform their work efficiently. They want to feel involved and enthusiastic about their work and workplace - they want to feel engaged.

5 Ways to Improve Employee Engagement and Retention

There is no recipe for improving employee engagement, as each company has different factors and realities to contend with. There are, however, some tried and tested practices that improve employee engagement and retention and positively influence your labor shortage in the construction industry. Here are a few ways:


Create clarity about your company values and culture - Creating visibility of your vision, mission, and values is important. Reinforce these with every interaction and communication with your employees and customers so employees can feel their "cultural fit."


Constantly promote teamwork and mentorship - Construction work can be dangerous and isolating, and creating a sense of togetherness, equality, trust, and respect is vital. Create open communication channels with superiors and work clarity. A mentorship program enables the transfer of knowledge and skills and enhances the relationship between employees and management.


Clear opportunities for professional growth – The construction industry is competitive in acquiring skilled workers, and there are many opportunities for your employees. Employees want to feel like they are growing, or they will look for growth opportunities elsewhere, which negatively impacts your labor shortage situation.


Celebrate employee achievements – Everyone wants recognition for their achievements in the workplace, which sparks employee motivation. It can be as simple as writing about a significant achievement in meeting safety goals by a particular employee or team and sharing it company-wide.


Employee inclusion in decisions – Employees often have key insights, and having their input considered instills a sense of acknowledgment and responsibility and that they are making a difference.

Use Tech to Reduce Labor Shortages

The construction industry has long faced the challenge of a deployed workforce with limited access to offices and computers. Nowadays, reaching this workforce with a mobile-friendly employee app has never been easier, as most Americans own smartphones and receive news while spending an average of four hours a day on their devices.Request demo CTA - EN

The benefits of an employee app stretch across the organization as you can keep employees connected and updated, personalize messages, create two-way dialogues for input by all, share company culture through content, and obtain actionable insights about employee preferences.