From recruitment to retention: Building a sustainable workforce

The construction industry continues to face a significant talent shortage, as the demand for skilled workers outpaces the available supply. According to the Associated Builders and Contractors, the industry will need to attract more than 500,000 additional workers on top of the normal pace of hiring in 2024 to meet the labor demand.

As workers retire or leave the profession for other industries, construction firms must also appeal to a new generation of employees who have not yet honed their skills.

Addressing the ongoing talent shortage will require construction firms to think strategically about recruitment, workforce development, and retention. The question is: How can leaders transform their culture to equip their people with the skills required to succeed and the support necessary to stay?

High-level workforce challenges across the industry

Before implementing meaningful changes to recruitment and retention strategies, leaders must first consider the factors contributing to and compounding the talent crunch, including:

A generational divide. With the median age of today’s construction worker being 42, the industry needs to attract new talent to backfill positions, especially as older workers tend to retire earlier because of the cumulative physical demands of the job. Yet this new, younger workforce may have less experience, while older workers may start experiencing flexibility or health-related challenges.
Safety concerns. The age gap can create new risks as inexperienced workers may not have the skills and training to keep themselves and others safe on the jobsite. On the other hand, the aging workforce may have developed physical or mental health challenges over time and potentially be at a higher risk of injury. Similarly, some workers may push through pain or ignore health challenges because they do not want to miss a shift or because they are worried about others’ perception.
Healthcare challenges. Construction workers face greater safety and health risks than many other industries. In a physically demanding work environment, paired with a host of psychosocial factors that can cause adverse health effects, construction workers are at a higher risk of poor safety outcomes and health issues, including cardiovascular disease, musculoskeletal disorders, sleep disorders, and gastrointestinal problems. At the same time, construction workers have long been prone to mental health challenges, reporting higher rates of suicide and substance use disorders as a result of many factors, including long hours, isolating environments, and high-risk work on jobsites. And in a predominantly male-dominated industry, mental health problems are often still considered taboo.

4 actions to improve recruitment and retention

Addressing complex, overlapping challenges calls for holistic improvements to how construction firms approach recruitment, workforce development, talent mobility, and retention. As firms seek to attract and retain skilled workers, they should consider the following actions.

1. Drive cultural change across the organization

Employers should strive to support the holistic health of their people. The consequences of not addressing healthcare challenges early and often can be detrimental to employee wellbeing and increase the risk of workplace injuries — not to mention higher rates of absenteeism and turnover.

A cultural shift around employee health and wellbeing requires a top-down approach, where leadership plays an active role in emphasizing early intervention, destigmatizing health challenges, and prioritizing safety. Organizations should consider partnering with mental health professionals or organizations that can help determine whether supervisors should receive additional training and provide or recommend needed resources. This may include training on how to communicate effectively with workers in a way that creates a psychologically safe environment. It is also important to equip supervisors with skills to help them identify early signs of physical and mental health problems and intervene accordingly. Organizations may also partner with mental health professionals or industry recognized organizations such as the Associated General Contractors (AGC) or National Safety Council (NSC) which have pre-existing programs and criteria for training supervisors on the signs and symptoms of mental health challenges. Regular refresher training should be a priority to ensure that supervisors are consistently prepared.

Leaders should also implement and promote employee assistance programs that offer counseling services from professionals who understand the unique stressors of the industry and provide employees with the education, skills, and resources that will help them address challenges they may face.

2. Focus on addressing jobsite risks and improving workplace conditions

Changing the cultural paradigm in construction and promoting a safe work environment often requires a comprehensive and critical analysis of current working conditions and practices and how these could impact employees’ safety, performance, efficiency, and job satisfaction.

In a demanding physical environment, for example, workers are at a higher risk of physical incidents, such as falls, that could lead to significant injuries. Further, the strenuous nature of the job can lead to musculoskeletal disorders and injuries that can have lasting health consequences.

Supervisors should be trained on how to identify and address these types of physical injuries early on and empower employees to speak openly about their health concerns. It is important to perpetuate the message that workers should prioritize recovery. Ensure that supervisors understand that missing a few days of work to recover is a significantly better outcome than an employee developing a more serious injury that sets them back weeks or requires them to leave the industry. Employers can also provide an on-site physical therapist to support employees and teach proper lifting techniques.

Other opportunities for improved working conditions may include dedicated time off, on-site preventive care clinics, and rewards for healthy lifestyle options, like financial incentives for opting for healthier meals. Further, consider setting up a dedicated health and safety executive, steering committee, and/or working group that meets regularly to discuss opportunities for workplace improvements and identify other issues that may require attention.

3. Provide training and education geared towards workforce development

With younger and less experienced workers joining the industry, it is essential that construction firms prepare workers with the knowledge and skills they need to succeed and stay safe daily. This training should include education around:

Safety protocols: Proper use of personal protective equipment, adherence to safe work practices, and regular inspections and maintenance of equipment and machinery.
Material safety data sheets: Essential information about potential hazards, safe handling, and emergency procedures for hazardous substances.
Equipment operation: Proper use, maintenance, and safety procedures for operating machinery and equipment on-site.
Technology: Training around necessary tools and systems, including wearable devices for safety monitoring, building information modeling software, project management tools, etc.
Building codes: Education about the framework of standards and regulations to ensure the safety, integrity, and functionality of any building project.
Regulatory requirements: Insight into safety and compliance guidelines such as Occupational Safety and Health Administration standards, as well as local and national laws.
Recordkeeping and reporting: Most establishments are required to compile statistics on injuries and illnesses and track incidents. It is also critical to understand how and when to report and investigate issues.

It’s not enough to only train workers immediately post-hire, either. Leaders should facilitate regular refresher trainings to keep teams up to date with safety procedures, roles and responsibilities, and opportunities for improvement.

4. Create clear pathways for career advancement

A significant component of attracting and retaining talent is demonstrating an investment in their future. In tandem with mental health support, better work conditions, and training, creating more opportunities for mobility can incentivize workers to grow where they are.

Project managers and upper management should be thoughtful about succession planning. It is also important to be clear with your people about opportunities for growth and provide the required training. Consider offering professional development and networking opportunities and promoting from within to demonstrate a commitment to individual career success.

Employers can also incentivize workers to continue learning, pursue new paths of specialization, and enhance their overall quality of work with continued education. Formal education might include advanced programs in a related field, such as civil engineering or construction management, or hands-on training through apprenticeships and trade schools to fine tune a particular skill.

Creating a culture change begins with meeting people where they are

While the talent shortage in construction presents challenges to firms worldwide, it also comes with opportunities to better support your people, understand their needs, and promote retention.

While driving a cultural shift across your organization will not be an overnight fix, improving working conditions, investing in your people’s health and education, and providing opportunities for mobility can help you retain valuable talent, ensure their wellbeing, and support their professional growth. In the process, you can improve your firm’s long-term success.

To learn more, speak with a Marsh representative.

Article

From recruitment to retention: Building a sustainable workforce

High-level workforce challenges across the industry

4 actions to improve recruitment and retention

1. Drive cultural change across the organization

2. Focus on addressing jobsite risks and improving workplace conditions

3. Provide training and education geared towards workforce development

4. Create clear pathways for career advancement

Creating a culture change begins with meeting people where they are

Related insights

Navigating Geopolitical Risks in Infrastructure Development

Risk in Context Podcast: Addressing people challenges within the construction industry

Resilience in construction – physical climate risk

Benefits of surety to accelerate renewable energy projects

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From recruitment to retention: Building a sustainable workforce

High-level workforce challenges across the industry

4 actions to improve recruitment and retention

1. Drive cultural change across the organization

2. Focus on addressing jobsite risks and improving workplace conditions

3. Provide training and education geared towards workforce development

4. Create clear pathways for career advancement

Creating a culture change begins with meeting people where they are

Related insights

Navigating Geopolitical Risks in Infrastructure Development

Risk in Context Podcast: Addressing people challenges within the construction industry

Resilience in construction – physical climate risk

Benefits of surety to accelerate renewable energy projects