The unexpected downtime over the last few years has changed how people think about work. Some wanted to spend more time with their family, while others preferred working from home. The construction industry has also been hit hard by this mass resignation. Along with this, there is a lack of interest in the industry by younger generations. For every five construction workers leaving, only one is joining the industry. This is a severe issue that needs to be addressed to stop the gap between the supply and demand of construction workers. Here are a few things to consider:
Maximize Productivity to Soften the Blow
Construction companies will have to work with fewer workers without affecting their productivity. Using simpler designs, off-site modular contracts, and digital technology can help accelerate projects with less on-site involvement. Also, utilizing real-time data in a decision-making and centralized management can help improve productivity by making the process less risky.
Simplify Your Onboarding
Retaining current employees and attracting new talent are necessary to keep the industry moving. Therefore, it is paramount that hiring and onboarding new employees are as straightforward as possible. Partnerships with educational institutions and alternative schools can also help attract young talents to the construction industry. The onboarding process becomes smoother when future recruits have this early familiarity with the industry. Also, keeping employees who are already familiar with the industry is more likely.
Collaborative Contracts to Lower Risk
The labor shortage can affect the entire supply chain and delay project delivery. This makes it particularly crucial to align project relationships and contracts. Instead of the traditional contract, adopting collaborative contracts can allow participants to share the risks and opportunities. Under collaborative contracts, different stakeholders like owners and contractors develop a project’s scope, budget, and schedule. These partners form a single contract that includes a no-fault clause and operate under joint management.
According to McKinsey, “early adopters of these collaborative contracts in industries such as oil and gas, healthcare, water, and consumer-packaged goods are seeing improved financial performance for their capital projects during execution.”
Improve the Environment
When it comes to creating a supportive and positive environment, management has a significant responsibility. To stop construction workers from leaving, industry leaders should ensure that they treat workers with respect and help them in their development. When workers feel valued, the retention rate will improve.
It’s projected that by 2026, the construction industry will need approximately 750,000 more workers than are employed now. We can bridge this gap by training the next generation of workers in the industry and educating the next generation on the great opportunities within construction.
If you would like to discuss the best ways to retain current employees and attract new talent book a call here with our team members at Raymond Search Group and we would be happy to share what some of the most successful construction leaders are doing right now to ensure they remain competitive in this ever-changing market.